Tradeweb Markets Inc. reported significant financial growth in its third quarter and the first nine months of 2024, driven by increased transaction fees and strategic acquisitions. For the three months ended September 30, 2024, total revenue reached $448.9 million, a 36.7% increase from $328.4 million in the same period of 2023. Transaction fees and commissions accounted for $373.5 million, up 41.8% from $263.5 million, primarily due to higher trading volumes in rates derivatives, U.S. corporate bonds, and government bonds.
Operating income for Q3 2024 was $159.3 million, reflecting a 27.7% increase from $124.7 million in Q3 2023. Net income rose to $130.2 million, compared to $111.6 million in the prior year, while net income attributable to Tradeweb Markets Inc. increased to $113.9 million from $98.6 million. Earnings per share for the quarter were $0.53, up from $0.47 in Q3 2023.
For the nine months ended September 30, 2024, total revenue was $1.26 billion, a 30.4% increase from $968.2 million in the same period in 2023. Net income for this period was $410.0 million, compared to $315.8 million in 2023, with net income attributable to Tradeweb Markets Inc. rising to $359.3 million from $275.6 million. The company reported a net income margin of 32.5%, slightly down from 32.6% in the previous year.
Tradeweb's strategic acquisitions have played a crucial role in its growth. The company completed the acquisition of Institutional Cash Distributors (ICD) on August 1, 2024, for $774.5 million, which is expected to enhance its offerings to corporate treasury organizations. ICD generated $17.2 million in revenue and incurred a minor operating loss of $0.3 million since the acquisition. Additionally, the acquisition of r8fin, completed on January 19, 2024, for $125.9 million, is expected to bolster Tradeweb's trading solutions.
The company also reported a decrease in cash and cash equivalents to $1.17 billion as of September 30, 2024, down from $1.71 billion at the end of 2023, primarily due to cash used for acquisitions. Total assets increased to $7.34 billion, while total liabilities decreased to $1.05 billion. Tradeweb's total stockholders' equity rose to $5.70 billion, reflecting strong retained earnings growth.
Tradeweb's operational expenses increased, with employee compensation and benefits rising by 38.1% to $160.2 million in Q3 2024, driven by higher incentive compensation and increased headcount. The company continues to invest in technology and infrastructure to maintain its competitive edge in the electronic trading market.
About Tradeweb Markets Inc.
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