10-Q 1 tw-20220930.htm 10-Q tw-20220930
Tradeweb Markets 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-38860
TRADEWEB MARKETS INC.
(Exact name of registrant as specified in its charter)
___________________________________________
Delaware
83-2456358
(State of other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1177 Avenue of the Americas
New York, New York
10036
(Address of principal executive offices)
(Zip Code)
(646) 430-6000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A common stock, par value $0.00001
TW
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Class of Stock
Shares Outstanding as of October 20, 2022
Class A Common Stock, par value $0.00001 per share
111,077,443 
Class B Common Stock, par value $0.00001 per share
96,933,192 
Class C Common Stock, par value $0.00001 per share
3,251,177 
Class D Common Stock, par value $0.00001 per share
23,096,704 


TRADEWEB MARKETS INC.
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022
TABLE OF CONTENTS
Page
Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021
Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2022 and 2021
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021
2

INTRODUCTORY NOTE
The financial statements and other disclosures contained in this report include those of Tradeweb Markets Inc., which is the registrant, and those of its consolidating subsidiaries, including Tradeweb Markets LLC, which became the principal operating subsidiary of Tradeweb Markets Inc. on April 4, 2019 in a series of reorganization transactions (the “Reorganization Transactions”) that were completed in connection with Tradeweb Markets Inc.’s initial public offering (the “IPO”), which closed on April 8, 2019.
As a result of the Reorganization Transactions completed in connection with the IPO, Tradeweb Markets Inc. became a holding company whose only material assets consist of its equity interest in Tradeweb Markets LLC and related deferred tax assets. As the sole manager of Tradeweb Markets LLC, Tradeweb Markets Inc. operates and controls all of the business and affairs of Tradeweb Markets LLC and, through Tradeweb Markets LLC and its subsidiaries, conducts its business. As a result of this control, and because Tradeweb Markets Inc. has a substantial financial interest in Tradeweb Markets LLC, Tradeweb Markets Inc. consolidates the financial results of Tradeweb Markets LLC and its subsidiaries.
As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires, references to:
“We,” “us,” “our,” the “Company,” “Tradeweb” and similar references refer: (i) on or prior to the completion of the Reorganization Transactions to Tradeweb Markets LLC, which we refer to as “TWM LLC,” and, unless otherwise stated or the context otherwise requires, all of its subsidiaries and any predecessor entities, and (ii) following the completion of the Reorganization Transactions to Tradeweb Markets Inc., and, unless otherwise stated or the context otherwise requires, TWM LLC and all of its subsidiaries and any predecessor entities.
“Bank Stockholders” refer collectively to entities affiliated with the following clients: Barclays Capital Inc., BofA Securities, Inc. (a subsidiary of Bank of America Corporation), Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC and Wells Fargo Securities, LLC, which, prior to the completion of the IPO, collectively held a 46% ownership interest in Tradeweb. As of September 30, 2022, there were no LLC Interests (as defined below) held by Bank Stockholders.
“Continuing LLC Owners” refer collectively to (i) those Original LLC Owners (as defined below), including Refinitiv (as defined below), certain of the Bank Stockholders and members of management, that continued to own LLC Interests after the completion of the IPO and Reorganization Transactions and that received shares of our Class C common stock, shares of our Class D common stock or a combination of both, as the case may be, in connection with the completion of the Reorganization Transactions, (ii) any subsequent transferee of any Original LLC Owner that has executed a joinder agreement to TWM LLC’s limited liability company agreement (the “TWM LLC Agreement”) and (iii) solely with respect to the Tax Receivable Agreement (as defined below), (x) those Original LLC Owners, including certain of the Bank Stockholders, that disposed of all of their LLC Interests for cash in connection with the IPO and (y) any party that has executed a joinder agreement to the Tax Receivable Agreement in accordance with the Tax Receivable Agreement.
“Investor Group” refer to certain investment funds affiliated with The Blackstone Group Inc. (f/k/a The Blackstone Group L.P.), an affiliate of Canada Pension Plan Investment Board, an affiliate of GIC Special Investments Pte. Ltd. and certain co-investors, which prior to the LSEG Transaction (as defined below) collectively held indirectly a 55% ownership interest in Refinitiv (as defined below).
“LLC Interests” refer to the single class of common membership interests of TWM LLC. LLC Interests, other than those held by Tradeweb Markets Inc., are redeemable or exchangeable in accordance with the TWM LLC Agreement for shares of Class A common stock or Class B common stock, as the case may be, on a one-for-one basis.
“LSEG Transaction” refer to the acquisition of the Refinitiv business by London Stock Exchange Group plc (“LSEG”), in an all share transaction, which closed on January 29, 2021.
“Original LLC Owners” refer to the owners of TWM LLC prior to the Reorganization Transactions.
“Refinitiv,” prior to the LSEG Transaction, refer to Refinitiv Holdings Limited, and unless otherwise stated or the context otherwise requires, all of its direct and indirect subsidiaries, and subsequent to the LSEG Transaction, refer to Refinitiv Parent Limited, and unless otherwise stated or the context otherwise requires, all of its subsidiaries. Refinitiv owns substantially all of the former financial and risk business of Thomson Reuters (as defined below), including, prior to and following the completion of the Reorganization Transactions, an indirect majority ownership interest in Tradeweb, and was controlled by the Investor Group prior to the LSEG Transaction.
3

“Refinitiv Transaction” refer to the transaction pursuant to which Refinitiv indirectly acquired on October 1, 2018 substantially all of the financial and risk business of Thomson Reuters and Thomson Reuters indirectly acquired a 45% ownership interest in Refinitiv.
“Thomson Reuters” or “TR” refer to Thomson Reuters Corporation, which prior to the LSEG Transaction indirectly held a 45% ownership interest in Refinitiv.
Numerical figures included in this Quarterly Report on Form 10-Q have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, we round certain percentages presented in this Quarterly Report on Form 10-Q to the nearest whole number. As a result, figures expressed as percentages in the text may not total 100% or, when aggregated, may not be the arithmetic aggregation of the percentages that precede them.
USE OF NON-GAAP FINANCIAL MEASURES
This Quarterly Report on Form 10-Q contains “non-GAAP financial measures,” which are financial measures that are not calculated and presented in accordance with GAAP.
The Securities and Exchange Commission (“SEC”) has adopted rules to regulate the use in filings with the SEC and in other public disclosures of non-GAAP financial measures. These rules govern the manner in which non-GAAP financial measures are publicly presented and require, among other things:
a presentation with equal or greater prominence of the most comparable financial measure or measures calculated and presented in accordance with GAAP; and
a statement disclosing the purposes for which the registrant’s management uses the non-GAAP financial measure.
Specifically, we make use of the non-GAAP financial measures “Free Cash Flow,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBIT,” “Adjusted EBIT margin,” “Adjusted Net Income” and “Adjusted Diluted EPS” in evaluating our past results and future prospects. For the definition of Free Cash Flow and a reconciliation to cash flow from operating activities, its most directly comparable financial measure presented in accordance with GAAP, see Part I, Item 2. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures.” For the definitions of Adjusted EBITDA, Adjusted EBIT and Adjusted Net Income and reconciliations to net income and net income attributable to Tradeweb Markets Inc., as applicable, their most directly comparable financial measures presented in accordance with GAAP, see Part I, Item 2. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures.” Adjusted EBITDA margin and Adjusted EBIT margin are defined as Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period. Adjusted Diluted EPS is defined as Adjusted Net Income divided by the diluted weighted average number of shares of Class A common stock and Class B common stock outstanding for the applicable period (including the effect of potentially dilutive securities determined using the treasury stock method), plus the weighted average number of other participating securities reflected in earnings per share using the two-class method, plus the assumed full exchange of all outstanding LLC Interests held by non-controlling interests for shares of Class A common stock or Class B common stock.
We present Free Cash Flow because we believe it is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our core operations after expenditures for capitalized software development costs and furniture, equipment and leasehold improvements.
We present Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management and our board of directors use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin to assess our financial performance and believe they are helpful in highlighting trends in our core operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Further, our executive incentive compensation is based in part on components of Adjusted EBITDA and Adjusted EBITDA margin.
We use Adjusted Net Income and Adjusted Diluted EPS as supplemental metrics to evaluate our business performance in a way that also considers our ability to generate profit without the impact of certain items. Each of the normal recurring adjustments and other adjustments described in the definition of Adjusted Net Income helps to provide management with a measure of our operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses.
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Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing our results as reported under GAAP. Some of these limitations include the following:
Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect every expenditure, future requirements for capital expenditures or contractual commitments;
Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect changes in our working capital needs;
Adjusted EBITDA and Adjusted EBIT do not reflect any interest expense, or the amounts necessary to service interest or principal payments on any debt obligations;
Adjusted EBITDA and Adjusted EBIT do not reflect income tax expense, which in post-IPO periods is a necessary element of our costs and ability to operate;
although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, and the depreciation and amortization related to acquisitions and the Refinitiv Transaction are eliminated in the calculation of Adjusted EBIT, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA and Adjusted EBIT do not reflect any costs of such replacements;
in post-IPO periods, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect the noncash component of certain employee compensation expense or payroll taxes associated with certain option exercises;
Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative, on a recurring basis, of our ongoing operations; and
other companies in our industry may calculate Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS or similarly titled measures differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our GAAP results and using Free Cash Flow, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS only as supplemental information.
5

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “will” or “would,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including our expectations about market trends, our market opportunity and the growth of our various markets, our expansion into new markets, any potential tax savings we may realize as a result of our organizational structure, our dividend policy and our expectations, beliefs, plans, strategies, objectives, prospects or assumptions regarding future events, our performance or otherwise, contained in this Quarterly Report on Form 10-Q are forward-looking statements. In addition, statements contained in this Quarterly Report on Form 10-Q relating to the COVID-19 pandemic (including any variants of COVID-19), the potential impacts of which are inherently uncertain, are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements, or could affect our share price.
Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include:
changes in economic, political, social and market conditions and the impact of these changes on trading volumes;
our failure to compete successfully;
our failure to adapt our business effectively to keep pace with industry changes;
consolidation and concentration in the financial services industry;
our dependence on dealer clients that, in some cases, are also stockholders;
our dependence on third parties for certain market data and certain key functions;
our ability to implement our business strategies profitably;
our ability to successfully integrate any acquisition or to realize benefits from any strategic alliances, partnerships or joint ventures;
our inability to maintain and grow the capacity of our trading platforms, systems and infrastructure;
design defects, errors, failures or delays with our platforms or solutions;
systems failures, interruptions, delays in services, cybersecurity incidents, catastrophic events and any resulting interruptions;
inadequate protection of our intellectual property;
extensive regulation of our industry;
our ability to retain the services of certain members of our management;
limitations on operating our business and incurring additional indebtedness as a result of covenant restrictions under our $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”) with Citibank, N.A., as administrative agent and collateral agent, and the other lenders party thereto, and certain Refinitiv indebtedness;
our dependence on distributions from TWM LLC to fund our expected dividend payments and to pay our taxes and expenses, including payments under the tax receivable agreement (the “Tax Receivable Agreement”) entered into in connection with the IPO;
our ability to realize any benefit from our organizational structure;
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Refinitiv’s, and indirectly LSEG’s, control of us and our status as a controlled company; and
other risks and uncertainties, including those listed under Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) and in other filings we may make from time to time with the SEC.
Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report on Form 10-Q, they may not be predictive of results or developments in future periods.
Any forward-looking statement that we make in this Quarterly Report on Form 10-Q speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this Quarterly Report on Form 10-Q.
Investors and others should note that we announce material financial and operational information using our investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about Tradeweb, our business and our results of operations may also be announced by posts on Tradeweb’s accounts on the following social media channels: Instagram, LinkedIn and Twitter. The information that we post through these social media channels may be deemed material. As a result, we encourage investors, the media and others interested in Tradeweb to monitor these social media channels in addition to following our investor relations website, press releases, SEC filings and public conference calls and webcasts. These social media channels may be updated from time to time on our investor relations website.
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PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
(in thousands, except share and per share amounts)
(Unaudited)
September 30,December 31,
20222021
Assets
Cash and cash equivalents$1,110,227 $972,048 
Restricted cash1,000 1,000 
Receivable from brokers and dealers and clearing organizations856  
Deposits with clearing organizations25,214 20,523 
Accounts receivable, net of allowance for credit losses of $176 and $273 at September 30, 2022 and December 31, 2021, respectively
150,201 129,937 
Furniture, equipment, purchased software and leasehold improvements, net of accumulated depreciation and amortization33,433 31,060 
Lease right-of-use assets25,603 20,496 
Software development costs, net of accumulated amortization144,687 156,203 
Goodwill2,780,259 2,780,259 
Intangible assets, net of accumulated amortization1,099,617 1,180,016 
Receivable from affiliates8,893 3,313 
Deferred tax asset676,709 618,970 
Other assets79,902 76,355 
Total assets$6,136,601 $5,990,180 
Liabilities and Equity
Liabilities
Payable to brokers and dealers and clearing organizations$855 $ 
Accrued compensation123,531 154,824 
Deferred revenue28,568 24,930 
Accounts payable, accrued expenses and other liabilities37,375 38,832 
Lease liabilities28,668 24,331 
Payable to affiliates4,808 4,860 
Deferred tax liability19,881 21,011 
Tax receivable agreement liability439,348 412,449 
Total liabilities683,034 681,237 
Commitments and contingencies (Note 12)


Equity
Preferred stock, $0.00001 par value; 250,000,000 shares authorized; none issued or outstanding
  
Class A common stock, $0.00001 par value; 1,000,000,000 shares authorized; 111,244,559 and 106,286,821 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
1 1 
Class B common stock, $0.00001 par value; 450,000,000 shares authorized; 96,933,192 and 96,933,192 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
1 1 
Class C common stock, $0.00001 par value; 350,000,000 shares authorized; 3,251,177 and 1,654,825 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
  
Class D common stock, $0.00001 par value; 300,000,000 shares authorized; 23,096,704 and 28,873,139 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
  
Additional paid-in capital4,542,160 4,401,366 
Accumulated other comprehensive income (loss)(21,601)1,604 
Retained earnings348,329 242,623 
Total stockholders’ equity attributable to Tradeweb Markets Inc.4,868,890 4,645,595 
Non-controlling interests584,677 663,348 
Total equity5,453,567 5,308,943 
Total liabilities and equity$6,136,601 $5,990,180 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Revenues
Transaction fees and commissions$228,015 $206,316 $717,489 $629,513 
Subscription fees41,342 41,390 124,337 117,141 
Refinitiv market data fees15,370 15,002 46,354 45,045 
Other2,388 2,617 7,559 7,865 
Total revenue287,115 265,325 895,739 799,564 
Expenses
Employee compensation and benefits102,720 98,036 330,601 300,107 
Depreciation and amortization44,778 44,823 133,998 127,656 
Technology and communications16,816 14,747 48,626 42,248 
General and administrative6,892 9,561 24,806 21,809 
Professional fees9,400 8,897 25,832 28,993 
Occupancy3,699 3,733 10,857 11,104 
Total expenses184,305 179,797 574,720 531,917 
Operating income102,810 85,528 321,019 267,647 
Net interest income (expense)3,413 (361)3,507 (1,179)
Income before taxes106,223 85,167 324,526 266,468 
Provision for income taxes(24,657)(19,862)(63,915)(53,365)
Net income81,566 65,305 260,611 213,103 
Less: Net income attributable to non-controlling interests12,483 10,542 40,219 35,165 
Net income attributable to Tradeweb Markets Inc.$69,083 $54,763 $220,392 $177,938 
Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders:
Basic$0.34 $0.27 $1.08 $0.89 
Diluted$0.33 $0.26 $1.06 $0.86 
Weighted average shares outstanding:
Basic205,721,162202,238,122204,767,261201,029,196
Diluted208,329,469208,197,439207,748,037206,908,330
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Net income$81,566 $65,305 $260,611 $213,103 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, with no tax benefit for each of the three and nine months ended September 30, 2022 and 2021
(12,406)(2,802)(26,181)(2,442)
Other comprehensive income (loss), net of tax(12,406)(2,802)(26,181)(2,442)
Comprehensive income69,160 62,503 234,430 210,661 
Less: Net income attributable to non-controlling interests12,483 10,542 40,219 35,165 
Less: Foreign currency translation adjustments attributable to non-controlling interests(1,521)(367)(3,288)(321)
Comprehensive income attributable to Tradeweb Markets Inc.$58,198 $52,328 $197,499 $175,817 
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Comprehensive income - Tradeweb Markets Inc.
Net income attributable to Tradeweb Markets Inc.$69,083 $54,763 $220,392 $177,938 
Other comprehensive income (loss):
Foreign currency translation adjustments attributable to Tradeweb Markets Inc.(10,885)(2,435)(22,893)(2,121)
Comprehensive income attributable to Tradeweb Markets Inc.$58,198 $52,328 $197,499 $175,817 
Comprehensive income - Non-controlling interests
Net income attributable to non-controlling interests$12,483 $10,542 $40,219 $35,165 
Other comprehensive income (loss):
Foreign currency translation adjustments attributable to non-controlling interests(1,521)(367)(3,288)(321)
Comprehensive income attributable to non-controlling interests$10,962 $10,175 $36,931 $34,844 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity
(in thousands, except share and per share amounts)
(Unaudited)
Tradeweb Markets Inc. Stockholders’ Equity
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Class D
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Non-
Controlling
Interests
Total
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at December 31, 2021106,286,821 $1 96,933,192 $1 1,654,825 $ 28,873,139 $ $4,401,366 $1,604 $242,623 $663,348 $5,308,943 
Activities related to exchanges of LLC Interests552,606 — — — — — (552,606)— — — — — — 
Issuance of common stock from equity incentive plans1,068,080 — — — — — — — 692 — — — 692 
Share repurchases pursuant to the Share Repurchase Program(559,428)— — — — — — — — — (47,323)— (47,323)
Tax receivable agreement liability and deferred taxes arising from LLC Interest ownership exchanges and the issuance of common stock from equity incentive plans— — — — — — — — 38,676 — — — 38,676 
Adjustments to non-controlling interests— — — — — — — — 30,005 — — (30,005) 
Distributions to non-controlling interests— — — — — — — — — — — (2,178)(2,178)
Dividends ($0.08 per share)
— — — — — — — — — — (16,350)— (16,350)
Stock-based compensation expense under the PRSU Plan— — — — — — — — 6,351 — — — 6,351 
Stock-based compensation expense under the RSU Plan— — — — — — — — 6,102 — — — 6,102 
Stock-based compensation expense under the Option Plan— — — — — — — — 1,229 — — — 1,229 
Payroll taxes paid for stock-based compensation— — — — — — — — (95,758)— — — (95,758)
Net income— — — — — — — — — — 82,965 14,480 97,445 
Foreign currency translation adjustments— — — — — — — — — (3,568)— (530)(4,098)
Balance at March 31, 2022107,348,079 $1 96,933,192 $1 1,654,825 $ 28,320,533 $ $4,388,663 $(1,964)$261,915 $645,115 $5,293,731 
Activities related to exchanges of LLC Interests3,700 — — — — — (3,700)— — — — — — 
Issuance of common stock from equity incentive plans367,374 — — — — — — — 6,924 — — — 6,924 
Share repurchases pursuant to the Share Repurchase Program(103,458)— — — — — — — — — (9,000)— (9,000)
Tax receivable agreement liability and deferred taxes arising from LLC Interest ownership exchanges and the issuance of common stock from equity incentive plans— — — — — — — — 7,449 — — — 7,449 
Adjustments to non-controlling interests— — — — — — — — (1,300)— — 1,300  
Distributions to non-controlling interests— — — — — — — — — — — (2,568)(2,568)
Dividends ($0.08 per share)
— — — — — — — — — — (16,360)— (16,360)
Stock-based compensation expense under the PRSU Plan— — — — — — — — 11,140 — — — 11,140 
Stock-based compensation expense under the RSU Plan— — — — — — — — 9,459 — — — 9,459 
Stock-based compensation expense under the Option Plan— — — — — — — — 288 — — — 288 
Payroll taxes paid for stock-based compensation— — — — — — — — (2,218)— — — (2,218)
Net income— — — — — — — — — — 68,344 13,256 81,600 
Foreign currency translation adjustments— — — — — — — — — (8,440)— (1,237)(9,677)
Balance at June 30, 2022107,615,695 $1 96,933,192 $1 1,654,825 $ 28,316,833 $ $4,420,405 $(10,404)$304,899 $655,866 $5,370,768 
Activities related to exchanges of LLC Interests3,623,777 — — — 1,596,352 — (5,220,129)— — — — —  
Issuance of common stock from equity incentive plans134,896 — — — — — — — 2,059 — — — 2,059 
Share repurchases pursuant to the Share Repurchase Program(129,809)— — — — — — — — — (9,000)— (9,000)
Tax receivable agreement liability and deferred taxes arising from LLC Interest ownership exchanges and the issuance of common stock from equity incentive plans— — — — — — — — 27,740 — — — 27,740 
Adjustments to non-controlling interests— — — — — — — — 79,606 (312)— (79,294) 
Distributions to non-controlling interests— — — — — — — — — — — (2,857)(2,857)
Dividends ($0.08 per share)
— — — — — — — — — — (16,653)— (16,653)
Stock-based compensation expense under the PRSU Plan— — — — — — — — 7,061 — — — 7,061 
Stock-based compensation expense under the RSU Plan— — — — — — — — 7,270 — — — 7,270 
Stock-based compensation expense under the Option Plan— — — — — — — — 291 — — — 291 
Payroll taxes paid for stock-based compensation— — — — — — — — (2,272)— — — (2,272)
Net income— — — — — — — — — — 69,083 12,483 81,566 
Foreign currency translation adjustments— — — — — — — — — (10,885)— (1,521)(12,406)
Balance at September 30, 2022111,244,559 $1 96,933,192 $1 3,251,177 $ 23,096,704 $ $4,542,160 $(21,601)$348,329 $584,677 $5,453,567 
The accompanying notes are an integral part of these condensed consolidated financial statements.

11

Tradeweb Markets Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity – (Continued)
(in thousands, except share and per share amounts)
(Unaudited)
Tradeweb Markets Inc. Stockholders’ Equity
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Class D
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Non-
Controlling
Interests
Total
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at December 31, 202098,075,465 $1 96,933,192 $1 3,139,821 $ 30,871,381 $ $4,143,094 $4,314 $156,041 $715,712 $5,019,163 
Activities related to exchanges of LLC Interests3,479,269 — — — (1,484,996)— (1,994,273)— — — — — — 
Tax receivable agreement liability and deferred taxes arising from LLC Interest ownership exchanges and the issuance of common stock from equity incentive plans— — — — — — — — 71,594 — — — 71,594 
Issuance of common stock from equity incentive plans3,088,545 — — — — — — —