Tradeweb Results Presentation Deck
Reconciliation of Non-GAAP Financial Measures ($ in thousands)
Net Income to Adjusted EBITDA, Adjusted EBIT and Adjusted EBT
Net income
Acquisition transaction costs 1
Net interest (income) expense
Depreciation and amortization
Stock-based compensation expense 2
Provision for income taxes
Foreign exchange (gains) / losses 3
Tax receivable agreement liability adjustment 4
Adjusted EBITDA
Less: Depreciation and amortization
Add: D&A related to acquisitions and the Refinitiv Transaction 5
Adjusted EBIT
Add: Net interest income (expense)
Adjusted EBT
Adjusted EBITDA margin 6
Adjusted EBIT margin 6
16
$
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1Q22
$
1Q21
$
199,884 $ 175,072
18
(31,769)
(3,869)
(1,761)
(29,603)
(6,383)
(732)
5,353
163,532 $ 142,678
$
$
1Q22
97,445 $
(18)
447
44,450
3,869
13,710
732
160,635
(44,450)
31,769
147,954 $
(447)
147,507
$
51.6%
47.5 %
$
0000
Tradeweb
1Q21
81,565
1,761
493
40,966
6,383
16,269
(5,353)
142,084
(40,966)
29,603
130,721
(493)
130,228 $
52.0 %
47.8 %
Cash Flow from Operating Activities to Free Cash Flow
Cash flow from operating activities
Less: Capitalization of software development costs
Less: Purchases of furniture, equipment and leasehold improvements
Free Cash Flow
$
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 exercises of such options during the applicable period totaling $2.1 million and
$6.4 million during the three months ended March 31, 2022 and 2021, respectively, and non-cash accelerated stock-based compensation expense associated with our former CFO and our retiring CEO and related payroll taxes totaling $1.7 million during
the three months ended March 31, 2022. Non-cash accelerated stock-based compensation expense associated with our former CFO and related payroll taxes totaled $1.7 million during the year ended December 31, 2021.
$
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 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..
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 revenue for the applicable period. See "1Q22 Financial Performance" for 1Q22 and 1Q21 revenue. FY 2021 revenues
totaled $1,076 million.
Operating Expenses to Adjusted Expenses
Operating expenses
Acquisition transaction costs 1
D&A related to acquisitions and the Refinitiv Transaction 2
Stock-based compensation expense 3
Foreign exchange gains / (losses) 4
Adjusted Expenses
$
$
FY21
273,108
5,073
1,590
171,308
16,509
96,875
(4,702)
(12,745)
547,016
(171,308)
124,580
500,288
(1,590)
498,698
50.8 %
46.5 %
Trailing Twelve Months
567,692
(35,183)
(21,580)
510,929
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 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).
3. 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 exercises of such options during the applicable period totaling $2.1 million and
$6.4 million during the three months ended March 31, 2022 and 2021, respectively, and non-cash accelerated stock-based compensation expense associated with our former CFO and our retiring CEO and related payroll taxes totaling $1.7 million during
the three months ended March 31, 2022.
4. 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.View entire presentation