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
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)
Adjusted Expenses
4
16
$
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$
2Q22
$
2Q21
$
190,531 $ 177,048
(15)
(2,966)
(31,761) (30,240)
(7,295)
(2,803)
3,066
(470)
154,526 $ 140,569
$
$
2Q22
81,600
15
(541)
44,770
7,295
25,548
(3,066)
$
52.4 %
48.0 %
155,621
(44,770)
31,761
142,612 $
541
143,153
2Q21
$ 131,898
(41,867)
30,240
120,271
(325)
119,946
$
66,233
2,966
325
41,867
2,803
17,234
470
50.6 %
46.1 %
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
0000
$
$
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, $3.8 million and $9.2 million during the six months ended June 30, 2022 and 2021, respectively and $16.5 million during the year ended December 31, 2021. 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.
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 "2Q22 Financial Performance" for 2Q22 and 2Q21 revenue. Revenues for the six
months ended June 30, 2022 totaled $609 million. FY 2021 revenues totaled $1,076 million.
Operating Expenses to Adjusted Expenses
Tradeweb
$ 316,256 $
(89,220)
63,530
290,566 $
94
290,660 $
$
6M 22
179,045
(3)
(94)
89,220
11,164
39,258
(2,334)
$
52.0 %
47.7 %
2022
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
597,330 $
(35,767)
(23,158)
538,405 $
50.8 %
46.5 %
Trailing Twelve Months Ended
June 30,
2021
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 the exercise of such options totaling $1.6 million and $2.8 million during the
three months ended June 30, 2022 and 2021, respectively, $3.8 million and $9.2 million during the six months ended June 30, 2022 and 2021, respectively and $16.5 million during the year ended December 31, 2021. 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.
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.
482,687
(33,215)
(15,651)
433,821View entire presentation