Tradeweb Results Presentation Deck
Reconciliation of Non-GAAP Financial Measures cont. (s in thousands, except share and per share amounts)
Reconciliation of Net Income attributable to Tradeweb Markets Inc. to Adjusted Net Income and Adjusted Diluted EPS
Earnings per diluted share
Net income attributable to Tradeweb Markets Inc.
Net income attributable to non-controlling interests 1
Net income
Provision for income taxes
Acquisition transaction costs 2
D&A related to acquisitions and the Refinitiv Transaction 3
Stock-based compensation expense 4
Foreign exchange (gains) / losses 5
Tax receivable agreement liability adjustment 6
Adjusted Net Income before income taxes.
Adjusted income taxes 7
Adjusted Net Income
Adjusted Diluted EPS 8
The table below summarizes the calculation of Adjusted Diluted EPS for the periods presented:
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding
$
$
Diluted weighted average shares of Class A and Class B common stock outstanding
Weighted average of other participating securities 1
Assumed exchange of LLC Interests for shares of Class A or Class B common stock ²
Adjusted diluted weighted average shares outstanding
Adjusted Net Income (in thousands)
Adjusted Diluted EPS
$
$
$
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Tradeweb
2Q22
0.33
68,344
13,256
81,600
25,548
15
$
$
31,761
7,295
(3,066)
143,153
(31,494)
111,659
0.47
1. Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock.
2. 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.
$
$
3. 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).
4. 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.
5. 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.
6. 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.
7. Represents corporate income taxes at an assumed effective tax rate of 22.0% applied to Adjusted Net Income before income taxes for each of the three and six months ended June 30, 2022 and 2021.
8. For a summary of the calculation of Adjusted Diluted EPS, see "Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding and Adjusted Diluted EPS" below.
2Q22
$
207,272,675
76,426.00
29,971,658
237,320,759
111,659
0.47
$
$
2Q21
0.27
55,316
10,917
66,233
17,234
2,966
30,240
2,803
470
$
$
119,946
(26,388)
93,558
0.39
2Q21
207,463,960
30,531,933
237,995,893
93,558
0.39
1. Represents weighted average unvested restricted stock units and unsettled vested performance-based restricted stock units issued to certain retired executives that are entitled to non-forfeitable dividend equivalent rights and are considered
participating securities prior to being issued and outstanding shares of common stock in accordance with the two-class method used for purposes of calculating earnings per share.
2. Assumes the full exchange of the weighted average of all outstanding LLC Interests held by non-controlling interests for shares of Class A or Class B common stock, resulting in the elimination of the non-controlling interests and recognition of the
net income attributable to non-controlling interests.View entire presentation