Tradeweb Earnings: Good Market Conditions and Market Share Gains Drive Impressive Revenue Growth

Wide-moat-rated Tradeweb reported strong fourth-quarter results as high interest rate volatility drove strong trading volume, particularly for the firm’s interest rate swaps. Net revenue increased 26.3% from last year and 12.8% from last quarter to $370 million. Net income increased only 4.8% from last year to $107.7 million, though last year’s quarter benefited from an unusually low tax provision. Despite the strength, the release was in line with our expectations as Tradeweb reports its trading volume data monthly. As we incorporate these results, we do not plan to materially alter our $88 fair value estimate for Tradeweb.