10-Q Filing

TRADEWEB MARKETS INC. CIK: 1758730 Q2 2019

Filing Information

Form Type	10-Q
Accession Number	`0001558370-19-007996`
Period End Date	20190630
Filing Date	20190812
Fiscal Year	2019
Fiscal Period	Q2
XBRL Instance	tw-20190630.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 62 Income Statement 46 Cash Flow Statement 43 Stockholders Equity 22 Comprehensive Income 12

Balance Sheet 62 line items

Line Item	Tag	Value	Unit	Period
Preferred stock, par value	`PreferredStockParOrStatedValuePerShare`	-	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$313.58M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$410.10M	USD	Point-in-time
Preferred stock, shares authorized	`PreferredStockSharesAuthorized`	250.00M	shares	Point-in-time
Restricted cash	`RestrictedCash`	$1.20M	USD	Point-in-time
Restricted cash	`RestrictedCash`	$1.20M	USD	Point-in-time
Receivable from brokers and dealers and clearing organizations	`ReceivablesFromBrokersDealersAndClearingOrganizations`	$174.59M	USD	Point-in-time
Receivable from brokers and dealers and clearing organizations	`ReceivablesFromBrokersDealersAndClearingOrganizations`	$255.25M	USD	Point-in-time
Deposits with clearing organizations	`DepositsWithClearingOrganizationsAndOthersSecurities`	$11.43M	USD	Point-in-time
Deposits with clearing organizations	`DepositsWithClearingOrganizationsAndOthersSecurities`	$13.40M	USD	Point-in-time
Account receivable, net of allowance	`AccountReceivableExcludingReceivableFromBrokersAndDealersAndClearingOrganizationsNetOfAllowance`	$92.85M	USD	Point-in-time
Account receivable, net of allowance	`AccountReceivableExcludingReceivableFromBrokersAndDealersAndClearingOrganizationsNetOfAllowance`	$87.19M	USD	Point-in-time
Furniture, equipment, purchased software and leasehold improvements, net of accumulated depreciation and amortization	`PropertyPlantAndEquipmentNet`	$38.13M	USD	Point-in-time
Furniture, equipment, purchased software and leasehold improvements, net of accumulated depreciation and amortization	`PropertyPlantAndEquipmentNet`	$35.74M	USD	Point-in-time
Right-of-use assets	`OperatingLeaseRightOfUseAsset`	$30.14M	USD	Point-in-time
Software development costs, net of accumulated amortization	`CapitalizedComputerSoftwareNet`	$172.61M	USD	Point-in-time
Software development costs, net of accumulated amortization	`CapitalizedComputerSoftwareNet`	$170.58M	USD	Point-in-time
Intangible assets, net of accumulated amortization	`IntangibleAssetsNetExcludingGoodwill`	$1.38B	USD	Point-in-time
Intangible assets, net of accumulated amortization	`IntangibleAssetsNetExcludingGoodwill`	$1.33B	USD	Point-in-time
Goodwill	`Goodwill`	$2.69B	USD	Point-in-time
Goodwill	`Goodwill`	$2.69B	USD	Point-in-time
Receivable from affiliates	`DueFromAffiliates`	$3.24M	USD	Point-in-time
Receivable from affiliates	`DueFromAffiliates`	$2.85M	USD	Point-in-time
Deferred tax asset	`DeferredIncomeTaxAssetsNet`	$98.47M	USD	Point-in-time
Other assets	`OtherAssets`	$30.30M	USD	Point-in-time
Other assets	`OtherAssets`	$25.03M	USD	Point-in-time
Total assets	`Assets`	$5.00B	USD	Point-in-time
Total assets	`Assets`	$5.07B	USD	Point-in-time
Payable to brokers and dealers and clearing organizations	`PayablesToBrokerDealersAndClearingOrganizations`	$171.21M	USD	Point-in-time
Payable to brokers and dealers and clearing organizations	`PayablesToBrokerDealersAndClearingOrganizations`	$255.16M	USD	Point-in-time
Accrued compensation	`EmployeeRelatedLiabilitiesCurrentAndNoncurrent`	$120.16M	USD	Point-in-time
Accrued compensation	`EmployeeRelatedLiabilitiesCurrentAndNoncurrent`	$68.62M	USD	Point-in-time
Deferred revenue	`ContractWithCustomerLiability`	$25.27M	USD	Point-in-time
Deferred revenue	`ContractWithCustomerLiability`	$27.88M	USD	Point-in-time
Accounts payable, accrued expenses and other liabilities	`AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent`	$34.50M	USD	Point-in-time
Accounts payable, accrued expenses and other liabilities	`AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent`	$42.55M	USD	Point-in-time
Employee equity compensation payable	`EquityCompensationPayable`	$24.19M	USD	Point-in-time
Employee equity compensation payable	`EquityCompensationPayable`	$728.00K	USD	Point-in-time
Lease liability	`OperatingLeaseLiability`	$34.53M	USD	Point-in-time
Payable to affiliates	`DueToAffiliateCurrentAndNoncurrent`	$5.01M	USD	Point-in-time
Payable to affiliates	`DueToAffiliateCurrentAndNoncurrent`	$6.00M	USD	Point-in-time
Deferred tax liability	`DeferredIncomeTaxLiabilitiesNet`	$19.63M	USD	Point-in-time
Deferred tax liability	`DeferredIncomeTaxLiabilitiesNet`	$21.30M	USD	Point-in-time
Tax receivable agreement liability	`TaxReceivableAgreementLiability`	$171.43M	USD	Point-in-time
Total liabilities	`Liabilities`	$410.63M	USD	Point-in-time
Total liabilities	`Liabilities`	$617.55M	USD	Point-in-time
Commitments and contingencies (Note 15)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies (Note 15)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Class C Shares and Class P(C) Shares	`TemporaryEquityCarryingAmountAttributableToParent`	$14.18M	USD	Point-in-time
Members capital	`MembersCapital`	$4.57B	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$2.85B	USD	Point-in-time
Accumulated other comprehensive income	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-866.00K	USD	Point-in-time
Accumulated other comprehensive income	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-525.00K	USD	Point-in-time
Retained earnings	`RetainedEarningsAccumulatedDeficit`	$1.39M	USD	Point-in-time
Total stockholders' equity attributable to Tradeweb Markets Inc./members' equity	`StockholdersEquity`	$2.85B	USD	Point-in-time
Total stockholders' equity attributable to Tradeweb Markets Inc./members' equity	`StockholdersEquity`	$4.57B	USD	Point-in-time
Non-controlling interests	`MinorityInterest`	$1.61B	USD	Point-in-time
Total equity	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.57B	USD	Point-in-time
Total equity	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.45B	USD	Point-in-time
Total equity	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.60B	USD	Point-in-time
Total liabilities and stockholders' equity/members' capital	`LiabilitiesAndStockholdersEquity`	$5.00B	USD	Point-in-time
Total liabilities and stockholders' equity/members' capital	`LiabilitiesAndStockholdersEquity`	$5.07B	USD	Point-in-time

Income Statement 46 line items

Line Item	Tag	Value	Unit	Period
Gross revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$377.28M	USD	2 Qtrs
Gross revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$190.49M	USD	1 Quarter
Contingent consideration	`ContingentConsiderationRelatedParties`	$29.37M	USD	2 Qtrs
Contingent consideration	`ContingentConsiderationRelatedParties`	$19.30M	USD	1 Quarter
Net revenue	`Revenues`	$377.28M	USD	2 Qtrs
Net revenue	`Revenues`	$190.49M	USD	1 Quarter
Employee compensation and benefits	`LaborAndRelatedExpense`	$96.00M	USD	1 Quarter
Employee compensation and benefits	`LaborAndRelatedExpense`	$173.27M	USD	2 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$34.29M	USD	1 Quarter
Depreciation and amortization	`DepreciationAndAmortization`	$67.80M	USD	2 Qtrs
Technology and communications	`CommunicationsAndInformationTechnology`	$9.52M	USD	1 Quarter
Technology and communications	`CommunicationsAndInformationTechnology`	$19.56M	USD	2 Qtrs
General and administrative	`OtherGeneralAndAdministrativeExpense`	$18.45M	USD	2 Qtrs
General and administrative	`OtherGeneralAndAdministrativeExpense`	$9.37M	USD	1 Quarter
Professional fees	`ProfessionalFees`	$13.71M	USD	2 Qtrs
Professional fees	`ProfessionalFees`	$6.74M	USD	1 Quarter
Occupancy	`OccupancyNet`	$3.62M	USD	1 Quarter
Occupancy	`OccupancyNet`	$7.26M	USD	2 Qtrs
Total expenses	`CostsAndExpenses`	$159.53M	USD	1 Quarter
Total expenses	`CostsAndExpenses`	$300.05M	USD	2 Qtrs
Operating income	`OperatingIncomeLoss`	$30.95M	USD	1 Quarter
Operating income	`OperatingIncomeLoss`	$77.23M	USD	2 Qtrs
Net interest income	`InvestmentIncomeInterest`	$1.03M	USD	2 Qtrs
Net interest income	`InvestmentIncomeInterest`	$175.00K	USD	1 Quarter
Income before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$31.13M	USD	1 Quarter
Income before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$78.27M	USD	2 Qtrs
Provision for income taxes	`IncomeTaxExpenseBenefit`	$11.10M	USD	2 Qtrs
Provision for income taxes	`IncomeTaxExpenseBenefit`	$6.31M	USD	1 Quarter
Net income	`ProfitLoss`	$24.82M	USD	1 Quarter
Net income	`ProfitLoss`	$67.17M	USD	2 Qtrs
Net income	`ProfitLoss`	$42.35M	USD	1 Quarter
Less: Pre-IPO net income attributable to Tradeweb Markets LLC	`NetIncomeLossAttributableToLimitedLiabilityCompany`	$42.35M	USD	2 Qtrs
Net income attributable to Tradeweb Markets Inc. and non-controlling interests	`ProfitLossAfterPreIpo`	$24.82M	USD	2 Qtrs
Net income attributable to Tradeweb Markets Inc. and non-controlling interests	`ProfitLossAfterPreIpo`	$24.82M	USD	1 Quarter
Less: Net income attributable to non-controlling interests	`NetIncomeLossAttributableToNoncontrollingInterest`	$11.99M	USD	2 Qtrs
Less: Net income attributable to non-controlling interests	`NetIncomeLossAttributableToNoncontrollingInterest`	$11.99M	USD	1 Quarter
Net income attributable to Tradeweb Markets Inc.	`NetIncomeLoss`	$12.83M	USD	2 Qtrs
Net income attributable to Tradeweb Markets Inc.	`NetIncomeLoss`	$12.83M	USD	1 Quarter
Basic	`EarningsPerShareBasic`	$0.09	USD	2 Qtrs
Basic	`EarningsPerShareBasic`	$0.09	USD	1 Quarter
Diluted	`EarningsPerShareDiluted`	$0.09	USD	2 Qtrs
Diluted	`EarningsPerShareDiluted`	$0.09	USD	1 Quarter
Basic	`WeightedAverageNumberOfSharesOutstandingBasic`	142.93M	shares	1 Quarter
Basic	`WeightedAverageNumberOfSharesOutstandingBasic`	142.93M	shares	2 Qtrs
Diluted	`WeightedAverageNumberOfDilutedSharesOutstanding`	150.85M	shares	2 Qtrs
Diluted	`WeightedAverageNumberOfDilutedSharesOutstanding`	150.85M	shares	1 Quarter

Cash Flow Statement 43 line items

Line Item	Tag	Value	Unit	Period
Cash	`CashAndCashEquivalentsAtCarryingValue`	$313.58M	USD	Point-in-time
Cash	`CashAndCashEquivalentsAtCarryingValue`	$410.10M	USD	Point-in-time
Restricted cash	`RestrictedCash`	$1.20M	USD	Point-in-time
Restricted cash	`RestrictedCash`	$1.20M	USD	Point-in-time
Net income	`ProfitLoss`	$24.82M	USD	1 Quarter
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$411.30M	USD	Point-in-time
Net income	`ProfitLoss`	$67.17M	USD	2 Qtrs
Net income	`ProfitLoss`	$42.35M	USD	1 Quarter
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$314.78M	USD	Point-in-time
Depreciation and amortization	`DepreciationAndAmortization`	$34.29M	USD	1 Quarter
Depreciation and amortization	`DepreciationAndAmortization`	$67.80M	USD	2 Qtrs
Share-based compensation expense	`ShareBasedCompensation`	$31.96M	USD	2 Qtrs
Deferred taxes	`DeferredIncomeTaxExpenseBenefit`	$-3.60M	USD	2 Qtrs
Receivable from brokers and dealers and clearing organizations	`IncreaseDecreaseInBrokerageReceivables`	$80.66M	USD	2 Qtrs
Deposits with clearing organizations	`IncreaseDecreaseInDepositOtherAssets`	$1.97M	USD	2 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$5.76M	USD	2 Qtrs
Receivable from affiliates	`IncreaseDecreaseDueFromAffiliates`	$-394.00K	USD	2 Qtrs
Other assets	`IncreaseDecreaseInOtherOperatingAssets`	$8.82M	USD	2 Qtrs
Payable to brokers and dealers and clearing organizations	`IncreaseDecreaseInPayablesToBrokerDealers`	$83.95M	USD	2 Qtrs
Accrued compensation	`IncreaseDecreaseInEmployeeRelatedLiabilities`	$-51.57M	USD	2 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$-2.61M	USD	2 Qtrs
Accounts payable, accrued expenses and other liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-3.66M	USD	2 Qtrs
Employee equity compensation payable	`IncreaseDecreaseInEquityCompensationPayable`	$-16.73M	USD	2 Qtrs
Payable to affiliates	`IncreaseDecreaseInDueToAffiliates`	$1.08M	USD	2 Qtrs
Net cash provided by operating activities	`NetCashProvidedByUsedInOperatingActivities`	$76.97M	USD	2 Qtrs
Purchase of furniture, equipment, software and leasehold improvements	`PaymentsToAcquirePropertyPlantAndEquipment`	$3.79M	USD	2 Qtrs
Capitalized software development costs	`PaymentsForSoftware`	$13.91M	USD	2 Qtrs
Net cash (used in) investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-17.71M	USD	2 Qtrs
Pre-IPO capital distributions	`PaymentsOfCapitalDistribution`	$120.00M	USD	2 Qtrs
Proceeds from issuance of Class A common stock in the IPO, net of underwriting discounts	`ProceedsFromIssuanceOfCommonStock`	$1.16B	USD	2 Qtrs
Purchase of LLC Interests	`PaymentsForRepurchaseOfRedeemableNoncontrollingInterest`	$1.16B	USD	2 Qtrs
Offering costs from issuance of Class A common stock in the IPO	`PaymentsOfStockIssuanceCosts`	$12.31M	USD	2 Qtrs
Dividends	`PaymentsOfOrdinaryDividends`	$11.44M	USD	2 Qtrs
Capital distributions to non-controlling interests	`PaymentsOfCapitalDistributionToNoncontrollingInterest`	$11.91M	USD	2 Qtrs
Net cash (used in) financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-155.65M	USD	2 Qtrs
Effect of exchange rate changes on cash and cash equivalents	`EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$-138.00K	USD	2 Qtrs
Net decrease in cash and cash equivalents	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$-96.52M	USD	2 Qtrs
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$411.30M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$314.78M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$411.30M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$314.78M	USD	Point-in-time
Income taxes paid	`IncomeTaxesPaid`	$24.99M	USD	2 Qtrs
Deferred tax asset	`DeferredIncomeTaxAssetsNet`	$98.47M	USD	Point-in-time

Stockholders Equity 22 line items

Line Item	Tag	Value	Unit	Period
Equity at beginning of period	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.57B	USD	Point-in-time
Equity at beginning of period	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.45B	USD	Point-in-time
Equity at beginning of period	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.60B	USD	Point-in-time
Adjustment to Class C Shares and Class P shares in mezzanine capital	`AdjustmentsToAdditionalPaidInCapitalIncreaseInCarryingAmountOfRedeemablePreferredStock`	$2.37M	USD	1 Quarter
Effect of the reorganization transactions	`EffectOfReorganizationTransactions`	$23.27M	USD	1 Quarter
Issuance of common stock, net of offering costs and cancellations	`StockIssuedDuringPeriodValueNewIssues`	$-15.85M	USD	1 Quarter
Tax receivable agreement liability and deferred taxes arising from the reorganization transactions and IPO	`AdjustmentsToAdditionalPaidInCapitalTaxReceivableAgreementLiabilityAndDeferredTaxesReorganizationTransactionAndIpo`	$78.23M	USD	1 Quarter
Distributions to non-controlling interests	`MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders`	$11.91M	USD	1 Quarter
Dividends ($0.08 per share)	`Dividends`	$11.44M	USD	1 Quarter
Capital distributions	`DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared`	$100.00M	USD	1 Quarter
Capital distributions	`DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared`	$20.00M	USD	1 Quarter
Stock-based compensation	`LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation`	$4.67M	USD	1 Quarter
Share-based compensation expense under the PRSU Plan	`AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationRestrictedStockUnitsRequisiteServicePeriodRecognition`	$6.76M	USD	1 Quarter
Share-based compensation expense under the Option Plan	`AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition`	$20.40M	USD	1 Quarter
Net income	`ProfitLoss`	$24.82M	USD	1 Quarter
Net income	`ProfitLoss`	$67.17M	USD	2 Qtrs
Net income	`ProfitLoss`	$42.35M	USD	1 Quarter
Foreign currency translation adjustments	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$988.00K	USD	1 Quarter
Foreign currency translation adjustments	`OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax`	$-1.01M	USD	1 Quarter
Equity at end of period	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.57B	USD	Point-in-time
Equity at end of period	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.45B	USD	Point-in-time
Equity at end of period	`StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest`	$4.60B	USD	Point-in-time

Comprehensive Income 12 line items

Line Item	Tag	Value	Unit	Period
Net income attributable to Tradeweb Markets	`NetIncomeLoss`	$12.83M	USD	2 Qtrs
Net income attributable to Tradeweb Markets	`NetIncomeLoss`	$12.83M	USD	1 Quarter
Foreign currency translation adjustments attributable to non-controlling interests	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent`	$-647.00K	USD	2 Qtrs
Foreign currency translation adjustments attributable to non-controlling interests	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent`	$-647.00K	USD	1 Quarter
Comprehensive income attributable to non-controlling interests	`ComprehensiveIncomeNetOfTax`	$12.18M	USD	1 Quarter
Comprehensive income attributable to non-controlling interests	`ComprehensiveIncomeNetOfTax`	$12.18M	USD	2 Qtrs
Net income attributable to non-controlling interests	`NetIncomeLossAttributableToNoncontrollingInterest`	$11.99M	USD	2 Qtrs
Net income attributable to non-controlling interests	`NetIncomeLossAttributableToNoncontrollingInterest`	$11.99M	USD	1 Quarter
Foreign currency translation adjustments attributable to noncontrolling interests	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToNoncontrollingInterest`	$-359.00K	USD	2 Qtrs
Foreign currency translation adjustments attributable to noncontrolling interests	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToNoncontrollingInterest`	$-359.00K	USD	1 Quarter
Comprehensive income attributable to non-controlling interests	`ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest`	$11.63M	USD	1 Quarter
Comprehensive income attributable to non-controlling interests	`ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest`	$11.63M	USD	2 Qtrs

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.