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
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 months ended March 31, 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" below.
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
$
$
1Q22
0.40
82,965
14,480
97,445
13,710
(18)
31,769
3,869
732
147,507
(32,452)
115,055
0.48
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 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.
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 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.
1Q22
$
$
207,497,102
53,756
30,296,879
237,847,737
115,055
0.48
$
$
$
1Q21
0.33
67,859
13,706
81,565
16,269
1,761
29,603
6,383
(5,353)
$
$
130,228
(28,650)
101,578
0.43
1Q21
205,028,717
31,214,407
236,243,124
101,578
0.43
1. 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