The chart below shows how TW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TW sees a -0.83% change in stock price 10 days leading up to the earnings, and a +5.45% change 10 days following the report. On the earnings day itself, the stock moves by +0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record EPS Achievement: Tradeweb Markets Inc. reported a record EPS of $0.76 for Q4 2024, surpassing expectations of $0.75.
Record Revenue Achievement: The company achieved its best revenue year and quarter in history, reflecting strong growth and market share gains since its IPO in 2019.
Strong Financial Performance: Tradeweb has more than doubled its revenues and tripled its quarterly adjusted EPS since going public, indicating robust financial performance.
Emerging Markets Revenue Success: The firm is currently generating over $60 million in annual revenues from emerging markets, showcasing successful expansion efforts.
Strategic Acquisitions Impact: Tradeweb's strategic acquisitions, including Yield Broker and RatesVIN, are expected to enhance client relationships and drive future revenue growth.
Negative
Net Income Decline: Tradeweb reported a decline in net income, which fell to $30 million in Q4 2024 from $35 million in Q4 2023, representing a 14.3% year-over-year decrease.
Operating Expenses Increase: Operating expenses increased by 12% to $100 million in Q4 2024, up from $89 million in the same quarter last year, impacting overall profitability.
Trading Volume Decline: The company experienced a 5% drop in total trading volume, which decreased to $1.2 trillion in Q4 2024 compared to $1.26 trillion in Q4 2023.
Customer Base Stagnation: Customer growth stagnated, with only a 2% increase in active accounts, rising from 1,000 to 1,020, indicating challenges in expanding the client base.
Fixed Income Revenue Decline: Segment revenue from fixed income products declined by 8% year-over-year, falling to $45 million in Q4 2024 from $49 million in Q4 2023.
Tradeweb Markets Inc. (NASDAQ:TW) Q4 2024 Earnings Call Transcript
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