Tradeweb Investor Presentation Deck slide image

Tradeweb Investor Presentation Deck

Reconciliation of Non-GAAP Items (sin 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) / losses³ Tax receivable agreement liability adjustment4 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 Adjusted EBIT margin6 27 $ © 2022 Tradeweb Markets LLC. All rights reserved. Successor Successor Successor Successor Successor Successor Predecessor Predecessor Predecessor 1Q21 FY21 4Q18 9M 18 130,160 $ 26,830 1Q22 97,445 $ (18) 447 44,450 3,869 13,710 732 81,565 1,761 493 40,966 6,383 16,269 (5,353) 51.6% 47.5% $ 273,108 5,073 1,590 171,308 16,509 96,875 52.0 % 47.8 % FY20 316 153,789 13,025 56,074 (4,702) (1,085) 6,279 (12,745) (11,425) (33,134) $ 160,635 $ 142,084 $ 547,016 $ 436,448 $ 353,162 $ (44,450) (40,966) (171,308) (153,789) (139,330) 31,769 29,603 124,580 110,187 97,565 50.8 % 46.5% FY19 $ 218,390 $ 173,024 $ 29,307 $ $ 147,954 $ 130,721 $ 500,288 $ 392,846 $ 311,397 $ (447) (493) (1,590) (316) 2,373 $147,507 $ 130,228 $ 498,698 $ 392,530 $ 313,770 $ (2,373) 139,330 25,098 52,302 48.9 % 44.0 % 45.5% 40.2 % (787) 33,020 3,415 353 65,308 $ (33,020) 22,413 54,701 $ 787 55,488 $ 36.6% 30.6 % (1,726) 48,808 Tradeweb 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) 214,091 $ 215,185 $ (68,615) (48,808) 19,576 31,236 177,806 $ 685 178,491 $ 38.2 % 31.6% 2016 93,161 26,224 695 80,859 (725) 557 200,771 (80,859) 41,125 161,037 (695) 160,342 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 and non-cash accelerated stock-based compensation expense associated with our former CFO and our retiring CEO and related payroll taxes during the applicable periods. 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 gross revenue for the applicable period. See "Strong & Broad-based Revenue and YTD Margin Expansion vs. FY21" for gross revenue. 38.7 % 31.1 %
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