Tradeweb Investor Presentation Deck
Reconciliation of Non-GAAP Items ($ in thousands, except per share and share amounts)
Net Income to Adjusted EBITDA, Adjusted EBIT and
Adjusted EBT
Net income
Contingent consideration
Acquisition transaction costs ¹
Net interest (income) expense
Depreciation and amortization
Stock-based compensation expense²
Provision for income taxes
Foreign exchange (gains) / losses ³
Tax receivable agreement liability adjustment4
Adjusted EBITDA
Less: Depreciation and amortization
Add: D&A related to acquisitions and the Refinitiv
Transaction5
Adjusted EBIT
Add: Net interest income (expense)
Adjusted EBT
28
Successor Successor Successor Successor Successor Successor Predecessor Predecessor Predecessor
6M 22
6M 21
FY20
4Q18
9M 18
$ 179,045 $ 147,798 $ 273,108 $ 218,390 $ 173,024 $
(3)
(94)
89,220
11,164
39,258
(2,334)
© 2022 Tradeweb Markets LLC. All rights reserved.
4,727
818
82,833
9,186
33,503
(4,883)
FY21
52.0 %
47.7 %
5,073
1,590
171,308
16,509
96,875
(4,702)
(12,745) (11,425)
$ 316,256 $ 273,982 $ 547,016 $ 436,448
(89,220) (82,833) (171,308) (153,789)
63,530
59,843 124,580 110,187
51.3 %
47.0%
316
153,789
13,025
56,074
6,279
FY19
50.8 %
46.5 %
(2,373)
139,330
$ 290,566 $ 250,992 $ 500,288 $ 392,846 $ 311,397 $
94
(818)
(1,590)
(316)
$ 290,660 $ 250,174 $ 498,698 $
2,373
392,530 $ 313,770 $
48.9 %
45.5 %
44.0 %
40.2 %
25,098
52,302
29,307 $ 130,160 $
26,830
(787)
33,020
3,415
353
(1,085)
(33,134)
$ 353,162 $ 65,308 $
(139,330) (33,020)
97,565
22,413
54,701 $
787
55,488 $
36.6%
30.6%
Tradeweb
(1,726)
48,808
11,900
(1,881)
2017
184,859 $
1,726
186,585 $
42.3 %
36.5%
83,648 $
58,520
(685)
68,615
6,129
(1,042)
2016
177,806 $
685
178,491 $
38.2 %
31.6%
93,161
26,224
Adjusted EBITDA margin
Adjusted EBIT margin6
1. Represents transaction and other costs related to the NFI Acquisition, which closed in June 2021. Acquisition-related costs primarily include legal, consulting and advisory fees and severance costs incurred that relate to the acquisition transaction.
2. Represents non-cash stock-based compensation expense associated with the Special Option Award and post-IPO options awarded in 2019 and payroll taxes associated with the exercise of such options totaling $1.6 million and $2.8 million during the
three months ended June 30, 2022 and 2021, respectively, and $3.8 million and $9.2 million during the six months ended June 30, 2022 and 2021, respectively. During the three and six months ended June 30, 2022, this adjustment also includes
$5.7 million and $7.4 million, respectively, of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our former CFO and our retiring CEO.
3. Represents unrealized gain or loss recognized on foreign currency forward contracts and foreign exchange gain or loss from the revaluation of cash denominated in a different currency than the entity's functional currency.
4. Represents income recognized during the applicable period due to changes in the tax receivable agreement liability recorded in the consolidated statement of financial condition as a result of changes in the mix of earnings, tax legislation and tax rates in
various jurisdictions which impacted our tax savings.
695
80,859
214,091 $ 215,185 $ 200,771
(80,859)
(48,808)
19,576
(68,615)
31,236
41,125
(725)
557
161,037
(695)
160,342
5. Represents intangible asset and acquired software amortization resulting from the NFI Acquisition and intangible asset amortization and increased tangible asset and capitalized software depreciation and amortization resulting from the application of
pushdown accounting to the Refinitiv Transaction (where all assets were marked to fair value as of the closing date of the Refinitiv Transaction).
6. Adjusted EBITDA margin and Adjusted EBIT margin are defined as Adjusted EBITDA and Adjusted EBIT, respectively, divided by gross revenue for the applicable period. See "Strong & Broad-based Revenue and YTD Margin Expansion vs. FY21" for
gross revenue.
38.7 %
31.1 %View entire presentation