Tradeweb Reports Fourth Quarter and Full Year 2023 Financial Results

QUARTERLY CASH DIVIDEND RAISED BY 11.1% to $0.10 PER SHARE


NEW YORK–(BUSINESS WIRE)–Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the fourth quarter and full year ended December 31, 2023.

$370.0 million quarterly revenues increased 26.3% (24.6% on a constant currency basis) compared to prior year period

$1.7 trillion average daily volume (“ADV”) for the quarter, an increase of 56.9% compared to prior year period; quarterly ADV records in fully electronic U.S. High Grade credit, U.S. government bonds, equity convertibles/swaps/options, global repurchase agreements and swaps/swaptions ≥ 1-year; record 17.2% share of fully electronic U.S. High Grade TRACE

$103.7 million net income and $151.9 million adjusted net income for the quarter, increases of 4.8% and 30.0% respectively from prior year period

53.0% adjusted EBITDA margin and $195.9 million adjusted EBITDA for the quarter, compared to 52.8% and $154.7 million respectively for prior year period

$0.42 diluted earnings per share (“Diluted EPS”) and $0.64 adjusted diluted earnings per share for the quarter

$0.10 per share quarterly cash dividend declared, an 11.1% per share increase from prior year period

Billy Hult, CEO of Tradeweb: Tradeweb performed exceptionally well operationally and financially in 2023, a year with no shortage of macro challenges. We invested in growing our international footprint across new geographies and expanded our product offerings through two strategic acquisitions, r8fin and Yieldbroker. Keeping with this growth mindset, we announced a series of new or expanded partnerships with FTSE Russell, LSEG Data & Analytics and BlackRock. Capitalizing on organic opportunities, we grew market share across our global businesses and helped clients stay in front of important trends such as multi-asset class and algorithmic trading. In credit, we reached a record 17.2% share of fully electronic U.S. High Grade TRACE in the fourth quarter. Our successes over the past year have led to our 24th consecutive year of revenue growth and profitability, positioning us well for future opportunities. I am proud of what we accomplished in 2023 and pleased with our strong start to 2024.”

SELECT FINANCIAL RESULTS

 

4Q23

 

 

4Q22

 

Change

Constant

Currency

Change (1)

(dollars in thousands except per share amounts)(Unaudited)

GAAP Financial Measures

Total revenue

$

370,000

 

$

293,042

 

26.3

%

24.6

%

Rates

$

191,743

 

$

145,314

 

32.0

%

30.1

%

Credit

$

104,267

 

$

83,393

 

25.0

%

23.6

%

Equities

$

26,056

 

$

23,003

 

13.3

%

10.7

%

Money Markets

$

16,606

 

$

13,299

 

24.9

%

23.8

%

Market Data

$

25,908

 

$

22,295

 

16.2

%

15.3

%

Other

$

5,420

 

$

5,738

 

(5.5

)%

(5.6

)%

Net income

$

103,741

 

$

99,002

 

4.8

%

 

Net income attributable to Tradeweb Markets Inc. (2)

$

89,314

 

$

88,946

 

0.4

%

 

Diluted EPS

$

0.42

 

$

0.42

 

0.0

%

 

Net income margin

 

28.0

%

 

33.8

%

-575

 bps

 

Non-GAAP Financial Measures

Adjusted EBITDA (1)

$

195,943

 

$

154,749

 

26.6

%

27.6

%

Adjusted EBITDA margin (1)

 

53.0

%

 

52.8

%

15

 bps

122

 bps

Adjusted EBIT (1)

$

180,957

 

$

141,439

 

27.9

%

29.0

%

Adjusted EBIT margin (1)

 

48.9

%

 

48.3

%

64

 bps

166

 bps

Adjusted Net Income (1)

$

151,937

 

$

116,875

 

30.0

%

31.1

%

Adjusted Diluted EPS (1)

$

0.64

 

$

0.49

 

30.6

%

30.6

%

(1)

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Diluted EPS and constant currency change are non-GAAP financial measures. See “Non-GAAP Financial Measures” below and the attached schedules for additional information and reconciliations of such non-GAAP financial measures.

(2)

Represents net income less net income attributable to non-controlling interests.

ADV (US $bn)

(Unaudited)

Asset Class

Product

 

4Q23

 

4Q22

YoY

Rates

Cash

$

398

$

318

25.1%

 

Derivatives

 

690

 

311

121.8%

 

Total

 

1,088

 

629

72.9%

Credit

Cash

 

14

 

10

41.2%

 

Derivatives

 

10

 

11

(13.8)%

 

Total

 

24

 

22

12.0%

Equities

Cash

 

11

 

10

15.2%

 

Derivatives

 

12

 

8

63.4%

 

Total

 

24

 

17

36.6%

Money Markets

Cash

 

541

 

401

35.1%

 

Total

 

541

 

401

35.1%

 

Total

$

1,677

$

1,069

56.9%

DISCUSSION OF RESULTS: FOURTH QUARTER 2023

Rates – Revenues of $191.7 million in the fourth quarter of 2023 increased 32.0% compared to prior year period (increased 30.1% on a constant currency basis). Rates ADV was up 72.9% from prior year period, as heightened interest rate volatility and continued market share gains drove record volume in swaps/swaptions ≥ 1-year and U.S. government bonds. European government bonds reported a 21.6% ADV increase from prior year period, supported by sustained rates market volatility and wallet share gains across hedge fund clients, while Mortgages ADV was up 20.8% reflecting increased institutional client activity as well as growing adoption of our specified pool trading platform.

Credit – Revenues of $104.3 million in the fourth quarter of 2023 increased 25.0% compared to prior year period (increased 23.6% on a constant currency basis). Credit ADV was up 12.0% from prior year period, as strong U.S. credit volumes, most notably record ADV in fully electronic U.S. High Grade credit, reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade® and portfolio trading. European Credit ADV was up 28.5% from prior year period, driven by strong activity in portfolio trading, sessions-based trading, RFQ, Tradeweb AllTrade and Tradeweb Automated Intelligent Execution (AiEX). Our share of fully electronic TRACE for U.S. High Grade was a record 17.2%, up 284 bps from prior year period, and U.S. High Yield was 6.7%, unchanged from prior year period.

Equities – Revenues of $26.1 million in the fourth quarter of 2023 increased 13.3% compared to prior year period (increased 10.7% on a constant currency basis). Equities ADV was up 36.6% from prior year period, driven by strong U.S. and European ETF institutional activity.

Money Markets – Revenues of $16.6 million in the fourth quarter of 2023 increased 24.9% compared to prior year period (increased 23.8% on a constant currency basis). Money Markets ADV was up 35.1% from prior year period, led by record activity in global repurchase agreements and increased client adoption of Tradeweb’s electronic trading solutions.

Market Data – Revenues of $25.9 million in the fourth quarter of 2023 increased 16.2% compared to prior year period (increased 15.3% on a constant currency basis). The increase was derived primarily from increased proprietary third party market data fees and increased LSEG market data fees driven primarily by the amended and restated market data license agreement effective as of November 1, 2023 and increased trade reporting services (APA) revenue.

Other – Revenues of $5.4 million in the fourth quarter of 2023 remained relatively flat with a decrease of 5.5% compared to prior year period (decreased 5.6% on a constant currency basis).

Operating Expenses of $228.4 million in the fourth quarter of 2023 increased 13.3% compared to $201.5 million in the prior year period, primarily due to an increase in headcount and related salaries and benefits as well as increases in incentive compensation expense and commissions tied to our operating performance.

Adjusted Expenses of $189.0 million in the fourth quarter of 2023 increased 24.7% (increased 20.7% on a constant currency basis) compared to prior year period primarily due to higher expenses related to employee compensation and benefits. Please see “Non-GAAP Financial Measures” below for additional information.

DISCUSSION OF RESULTS: FULL-YEAR 2023

Tradeweb recorded its 24th consecutive year of record revenues for the year ended December 31, 2023, as total revenue increased 12.6% (increased 12.2% on a constant currency basis) to $1.3 billion compared to full year 2022. Revenue was driven by average daily trading volume of more than $1.4 trillion and record activity in each of the following: ADV in U.S. government bonds, European government bonds, swaps/swaptions ≥ 1-year, fully electronic U.S. High Grade and U.S. High Yield credit, European credit, Chinese bonds, U.S. ETFs, equity convertibles/swaps/options, global repurchase agreements and record share of fully electronic U.S. High Grade and U.S. High Yield TRACE of 15.5% and 6.6%, respectively. Net income increased 16.7% to $419.5 million for the year ended December 31, 2023, compared to $359.6 million in 2022. Adjusted EBITDA margin increased to 52.4% for the year ended December 31, 2023 compared to 51.9% in 2022, representing an increase of 49 bps (+100 bps on a constant currency basis). Diluted EPS increased 15.5% to $1.71 for the year ended December 31, 2023. Adjusted Diluted EPS increased 18.9% to $2.26 for the year ended December 31, 2023.

RECENT HIGHLIGHTS

January 2024

  • Completed the acquisition of r8fin, a technology provider that specializes in algorithmic-based execution for U.S. Treasuries and interest rate futures.

Fourth Quarter 2023

  • Announced a strategic partnership with FTSE Russell to develop the next generation of fixed income index pricing and index trading products.
  • Introduced the next phase of Tradeweb’s previously announced platform integration with BlackRock’s Aladdin order execution management system (OEMS), enabling Aladdin users trading U.S. and European credit access to enhanced liquidity via Tradeweb AllTrade, Tradeweb’s network of anonymous liquidity connecting institutional, wholesale and retail markets.
  • Signed a new market data license agreement with LSEG Data & Analytics (formerly Refinitiv) to distribute certain Tradeweb market data through LSEG’s Enterprise Data Solutions and Workspace.
  • Recognized in numerous awards celebrating our company, as well as our outstanding and diverse talent, including: OTC Trading Platform of the Year (Risk Awards); Twenty Most Influential in Trading and Technology – Enrico Bruni (Financial News); U.S. Women in Finance Awards, Rising Star – Caroline Baron (Markets Media); U.S. Women in Finance Awards, Trailblazer – Lisa Schirf (Markets Media); ETF Stream Awards, RFQ Platform of the Year (ETF Stream); New Leaders in Trading Awards, Outstanding Fixed Income Trading Platform (The Trade); Most Disruptive Technology Solution (With Intelligence)

CAPITAL MANAGEMENT

  • $1.7 billion in cash and cash equivalents and an undrawn $500.0 million credit facility at December 31, 2023
  • In November 2023, Tradeweb entered into a new five-year $500.0 million unsecured revolving credit facility, replacing our prior facility that was scheduled to mature in April 2024
  • Non-acquisition cash capital expenditures and capitalized software development in the fourth quarter 2023 of $12.2 million and $61.8 million in full-year 2023
  • Free cash flow for the year ended December 31, 2023 of $684.3 million, up 19.5% compared to prior year period. See “Non-GAAP Financial Measures” for additional information
  • During the year ended December 31, 2023, as part of its share repurchase program, Tradeweb purchased a total of 485,730 shares of Class A common stock, at an average price of $72.48, for purchases totaling $35.2 million. As of December 31, 2023, a total of $239.8 million remained available for repurchase pursuant to the current share repurchase program authorization. There were no shares repurchased during the fourth quarter of 2023
  • $2.0 million in shares of Class A common stock were withheld in the fourth quarter of 2023 and $51.5 million in shares of Class A common stock were withheld in the full-year 2023 to satisfy tax obligations related to the exercise of stock options and vesting of restricted stock units and performance-based restricted stock units held by employees
  • The Board of Directors declared a quarterly cash dividend of $0.10 per share of Class A common stock and Class B common stock, a 11.1% per share increase from prior year. The dividend will be payable on March 15, 2024 to stockholders of record as of March 1, 2024

OTHER MATTERS

Full-Year 2024 Guidance*

  • Adjusted Expenses: $755 – 805 million
  • Acquisition and Refinitiv Transaction related depreciation and amortization expense: $142 million
  • Assumed non-GAAP tax rate: ~24.5 – 25.5%
  • Cash costs of non-acquisition capital expenditures and capitalized software development: $75 – 83 million
  • LSEG Market Data Contract Revenues: ~$80M (~$90M in 2025)

*GAAP operating expenses and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement of foreign currency rates. Expense guidance assumes an average 2024 Sterling/US$ foreign exchange rate of 1.24 and includes completed M&A transactions.

CONFERENCE CALL

Tradeweb Markets will hold a conference call to discuss fourth quarter and full year 2023 results starting at 9:30 AM EST today, February 6, 2024. A live, audio webcast of the conference call along with related presentation materials will be available at https://investors.tradeweb.com/events-and-presentations.

An archived recording of the call will be available afterward at https://investors.tradeweb.com.

ABOUT TRADEWEB MARKETS

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than $1.4 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

TRADEWEB MARKETS INC.

CONSOLIDATED STATEMENTS OF INCOME

 

 

Quarter Ended December 31,

 

Year Ended December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues

 

(in thousands, except share and per share data)

Transaction fees and commissions

 

$

301,800

 

 

$

232,780

 

 

$

1,078,344

 

 

$

950,269

 

Subscription fees

 

 

47,489

 

 

 

41,585

 

 

 

183,972

 

 

 

165,922

 

LSEG market data fees

 

 

17,821

 

 

 

16,367

 

 

 

64,336

 

 

 

62,721

 

Other

 

 

2,890

 

 

 

2,310

 

 

 

11,567

 

 

 

9,869

 

Total revenue

 

 

370,000

 

 

 

293,042

 

 

 

1,338,219

 

 

 

1,188,781

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

125,872

 

 

 

101,820

 

 

 

460,305

 

 

 

432,421

 

Depreciation and amortization

 

 

47,500

 

 

 

44,881

 

 

 

185,350

 

 

 

178,879

 

Technology and communications

 

 

21,505

 

 

 

17,231

 

 

 

77,506

 

 

 

65,857

 

General and administrative

 

 

19,803

 

 

 

21,755

 

 

 

51,495

 

 

 

46,561

 

Professional fees

 

 

10,043

 

 

 

11,932

 

 

 

42,364

 

 

 

37,764

 

Occupancy

 

 

3,647

 

 

 

3,869

 

 

 

15,930

 

 

 

14,726

 

Total expenses

 

 

228,370

 

 

 

201,488

 

 

 

832,950

 

 

 

776,208

 

Operating income

 

 

141,630

 

 

 

91,554

 

 

 

505,269

 

 

 

412,573

 

Tax receivable agreement liability adjustment

 

 

(9,517

)

 

 

13,653

 

 

 

(9,517

)

 

 

13,653

 

Net interest income (expense)

 

 

20,285

 

 

 

8,400

 

 

 

65,350

 

 

 

11,907

 

Other income (loss), net

 

 

(11,100

)

 

 

(1,000

)

 

 

(13,122

)

 

 

(1,000

)

Income before taxes

 

 

141,298

 

 

 

112,607

 

 

 

547,980

 

 

 

437,133

 

Provision for income taxes

 

 

(37,557

)

 

 

(13,605

)

 

 

(128,477

)

 

 

(77,520

)

Net income

 

 

103,741

 

 

 

99,002

 

 

 

419,503

 

 

 

359,613

 

Less: Net income attributable to non-controlling interests

 

 

14,427

 

 

 

10,056

 

 

 

54,637

 

 

 

50,275

 

Net income attributable to Tradeweb Markets Inc.

 

$

89,314

 

 

$

88,946

 

 

$

364,866

 

 

$

309,338

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Tradeweb Markets Inc. Class A and B common stockholders:

 

 

 

 

 

 

 

 

Basic

 

$

0.42

 

 

$

0.43

 

 

$

1.73

 

 

$

1.50

 

Diluted

 

$

0.42

 

 

$

0.42

 

 

$

1.71

 

 

$

1.48

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

211,843,460

 

 

 

207,978,371

 

 

 

210,796,802

 

 

 

205,576,637

 

Diluted

 

 

213,833,001

 

 

 

210,329,656

 

 

 

212,668,808

 

 

 

208,400,040

 

 

TRADEWEB MARKETS INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT and Adjusted EBIT Margin

 

Quarter Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

(dollars in thousands)

Net income

 

$

103,741

 

 

$

99,002

 

 

$

419,503

 

 

$

359,613

 

Merger and acquisition transaction and integration costs (1)

 

 

1,631

 

 

 

1,029

 

 

 

8,042

 

 

 

1,069

 

Net interest (income) expense

 

 

(20,285

)

 

 

(8,400

)

 

 

(65,350

)

 

 

(11,907

)

Depreciation and amortization

 

 

47,500

 

 

 

44,881

 

 

 

185,350

 

 

 

178,879

 

Stock-based compensation expense (2)

 

 

987

 

 

 

6,570

 

 

 

2,947

 

 

 

20,409

 

Provision for income taxes

 

 

37,557

 

 

 

13,605

 

 

 

128,477

 

 

 

77,520

 

Foreign exchange (gains) / losses (3)

 

 

4,195

 

 

 

10,715

 

 

 

(47

)

 

 

4,409

 

Tax receivable agreement liability adjustment (4)

 

 

9,517

 

 

 

(13,653

)

 

 

9,517

 

 

 

(13,653

)

Other (income) loss, net

 

 

11,100

 

 

 

1,000

 

 

 

13,122

 

 

 

1,000

 

Adjusted EBITDA

 

$

195,943

 

 

$

154,749

 

 

$

701,561

 

 

$

617,339

 

Less: Depreciation and amortization

 

 

(47,500

)

 

 

(44,881

)

 

 

(185,350

)

 

 

(178,879

)

Add: D&A related to acquisitions and the Refinitiv Transaction (5)

 

 

32,514

 

 

 

31,571

 

 

 

127,731

 

 

 

126,659

 

Adjusted EBIT

 

$

180,957

 

 

$

141,439

 

 

$

643,942

 

 

$

565,119

 

Net income margin (6)

 

 

28.0

%

 

 

33.8

%

 

 

31.3

%

 

 

30.3

%

Adjusted EBITDA margin (6)

 

 

53.0

%

 

 

52.8

%

 

 

52.4

%

 

 

51.9

%

Adjusted EBIT margin (6)

 

 

48.9

%

 

 

48.3

%

 

 

48.1

%

 

 

47.5

%

(1)

Represents incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration.

(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. During the quarter and year ended December 31, 2022, this adjustment also includes $5.6 million and $15.0 million, respectively, of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our retired 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 acquisitions 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)

Net income margin, Adjusted EBITDA margin and Adjusted EBIT margin are defined as net income, Adjusted EBITDA and Adjusted EBIT, respectively, divided by revenue for the applicable period.

 

Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS

 

Quarter Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

(in thousands, except per share amounts)

Earnings per diluted share

 

$

0.42

 

 

$

0.42

 

 

$

1.71

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

Net income attributable to Tradeweb Markets Inc.

 

$

89,314

 

 

$

88,946

 

 

$

364,866

 

 

$

309,338

 

Net income attributable to non-controlling interests (1)

 

 

14,427

 

 

 

10,056

 

 

 

54,637

 

 

 

50,275

 

Net income

 

 

103,741

 

 

 

99,002

 

 

 

419,503

 

 

 

359,613

 

Provision for income taxes

 

 

37,557

 

 

 

13,605

 

 

 

128,477

 

 

 

77,520

 

Merger and acquisition transaction and integration costs (2)

 

 

1,631

 

 

 

1,029

 

 

 

8,042

 

 

 

1,069

 

D&A related to acquisitions and the Refinitiv Transaction (3)

 

 

32,514

 

 

 

31,571

 

 

 

127,731

 

 

 

126,659

 

Stock-based compensation expense (4)

 

 

987

 

 

 

6,570

 

 

 

2,947

 

 

 

20,409

 

Foreign exchange (gains) / losses (5)

 

 

4,195

 

 

 

10,715

 

 

 

(47

)

 

 

4,409

 

Tax receivable agreement liability adjustment (6)

 

 

9,517

 

 

 

(13,653

)

 

 

9,517

 

 

 

(13,653

)

Other (income) loss, net

 

 

11,100

 

 

 

1,000

 

 

 

13,122

 

 

 

1,000

 

Adjusted Net Income before income taxes

 

 

201,242

 

 

 

149,839

 

 

 

709,292

 

 

 

577,026

 

Adjusted income taxes (7)

 

 

(49,305

)

 

 

(32,964

)

 

 

(173,777

)

 

 

(126,946

)

Adjusted Net Income

 

$

151,937

 

 

$

116,875

 

 

$

535,515

 

 

$

450,080

 

Adjusted Diluted EPS (8)

 

$

0.64

 

 

$

0.49

 

 

$

2.26

 

 

$

1.90

 

(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 incremental direct costs associated with the acquisition and integration of completed and potential mergers and acquisitions. These costs generally include legal, consulting, advisory, due diligence, severance and other third party costs incurred that directly relate to the acquisition transaction or its integration.

(3)

Represents intangible asset and acquired software amortization resulting from acquisitions 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 the exercise of such options. During the quarter and year ended December 31, 2022, this adjustment also includes $5.6 million and $15.0 million, respectively, of non-cash accelerated stock-based compensation expense and related payroll taxes associated with our retired CEO.

(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 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.

(7)

Represents corporate income taxes at an assumed effective tax rate of 24.5% applied to Adjusted Net Income before income taxes for the quarter and year ended December 31, 2023 and 22.0% for the quarter and year ended December 31, 2022.

(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 and Adjusted Diluted EPS” below.

Contacts

Investor Relations
Ashley Serrao + 1 646 430 6027

[email protected]

Media Relations
Daniel Noonan + 1 646 767 4677

[email protected]

Read full story here