Tradeweb Markets (TW) Q3 2024 Earnings Name Transcript

Tradeweb Markets (TW -1.46%)
Q3 2024 Earnings Name
Oct 30, 2024, 9:30 a.m. ET

Contents:

• Ready Remarks
• Questions and Solutions
• Name Members

Ready Remarks:

Operator

Good morning and welcome to Tradeweb’s third-quarter 2024 earnings convention name. As a reminder, immediately’s name is being recorded and shall be obtainable for playback. To start, I am going to flip the decision over to move of treasury, FP&A, and investor relations, Ashley Serrao. Please go forward.

Ashley Serrao — Head of Treasury, FP&A, and Investor Relations

Thanks, and good morning. Becoming a member of me immediately for the decision are our, CEO, Billy Hult, who will evaluate our enterprise outcomes and key progress initiatives and our CFO, Sara Furber, who will evaluate our monetary outcomes. We intend to make use of the web site as a method of revealing materials personal info and complying with our disclosure obligations below Regulation FD. I might remind you that sure statements on this presentation and throughout the Q&A could relate to future occasions and expectations and as such represent forward-looking statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995.

Statements associated to amongst different issues, our steerage are forward-looking statements. Precise outcomes could differ materially from these forward-looking statements. Info regarding elements that would trigger precise outcomes to vary from forward-looking statements is contained in our earnings launch, earnings presentation, and periodic reviews filed with the SEC. As well as, on immediately’s name we’ll reference sure non-GAAP measures in addition to sure market business knowledge.

Info relating to these non-GAAP measures together with reconciliations to GAAP measures is in our earnings launch and earnings presentation. Info relating to market and business knowledge together with sources is in our earnings presentation. Now let me flip the decision over to Billy.

Billy Hult — Chief Govt Officer

Thanks, Ashley. Good morning, everybody and thanks for becoming a member of our third-quarter earnings name. This was one other report quarter with income surpassing our earlier greatest by almost 10% to strategy nearly $450 million in income. Stepping again, the themes driving our outcomes over the previous few years stay unchanged.

First, we proceed to drive our market share increased in a lot of our markets as we collaborate with our purchasers to electronify and alter habits, be it our flagship swaps, surging U.S. credit score or quickly increasing EM choices. Second, we proceed to capitalize on the pattern of multi-asset class buying and selling. Virtually 50% of our income progress continues to be generated away from our cornerstone charges enterprise.

And third, we proceed to speed up progress with focused acquisitions and powerful execution. On this word, we shut the ICD acquisition in August and previously welcomed the ICD group to the Tradeweb household. They’ve hit the bottom working and early shopper suggestions has been resoundingly optimistic. Each yield dealer and charge fin revenues are monitoring forward of plan and we accomplished the mixing of yield dealer this month, 5 months forward of schedule.

We proceed to assume it is a good time to be within the danger intermediation enterprise. A central banks retreat from our markets. World financial insurance policies diverge, elections loom and fixed-income markets proceed to develop. This creates plenty of alternatives for our purchasers to commerce and make cash, whereas the setting fluctuates, we stay centered on driving sturdy progress by investing in our future by hiring the very best expertise, deepening our shopper relationships, and enhancing our know-how.

Diving into the third quarter, sturdy shopper exercise, share beneficial properties, and a danger on setting drove 36.7% year-over-year income progress on a reported foundation. We continued to stability investing for progress and profitability as adjusted EBITDA margins expanded by 154 foundation factors relative to the third quarter of 2023. Turning to Slide 5, our charges enterprise was pushed by continued natural progress throughout swaps, world authorities bonds and mortgages and was additionally supplemented by the addition of charge fin and yield dealer. Credit score was led by energy in U.S.

and European company bonds with our second highest quarterly market share throughout digital U.S. excessive grade and excessive yield, and was aided by sturdy progress throughout credit score derivatives, municipal bonds, and China bonds. Cash markets was led by the addition of ICD and aided by continued progress in U.S. and European repos.

Equities posted double-digit income progress, primarily led by progress in our world ETF enterprise, whereas our fairness derivatives enterprise additionally posted strong progress. Lastly, market knowledge revenues have been pushed by progress in our LSEG market knowledge contract and proprietary knowledge merchandise. Turning to Slide 6, I’ll present a short replace on two of our focus areas, U.S. treasuries, and ETFs, after which I’ll dig deeper into U.S.

credit score and world rate of interest swaps. Beginning with U.S. treasuries. Report third-quarter revenues elevated by 33% yr over yr led by information throughout our institutional and wholesale shopper channels.

Our institutional enterprise noticed rising adoption of our streaming and RFQ plus protocols, whereas the main indicators of the institutional enterprise stays sturdy, we gained share and achieved report quarterly market share of over 50% in U.S. treasuries versus Bloomberg, our second consecutive quarter above 50%. Automation continues to be an necessary theme with institutional U.S. treasury AiEX common day by day trades rising by almost 30% yr over yr.

The wholesale area stays a key space of focus and we proceed to prioritize onboarding extra liquidity suppliers and enhancing our varied liquidity swimming pools as we ship on our holistic technique. The wholesale enterprise produced report volumes led by report streaming volumes and rising adoption of our periods, protocol and the contribution of r8fin. Different protocols additionally noticed double-digit quantity progress, significantly our membership, which continues to pattern increased. Inside equities, our ETF revenues grew over 20% yr over yr, our efforts to increase our fairness model past our flagship ETF franchise proceed to bear fruit with third-quarter institutional fairness by-product revenues rising almost 20% yr over yr.

Trying forward, we proceed to make inroads by integrating new purchasers and the shopper pipeline stays sturdy, as the advantages of our digital options proceed to resonate. We consider we’re well-positioned to capitalize on the long-term secular ETF progress story, not simply inequities, however throughout our fixed-income enterprise. Turning to Slide 7 for a more in-depth take a look at one other sturdy quarter for credit score. Robust double-digit income progress was pushed by 37% and 14% year-over-year income progress throughout U.S.

and European credit score respectively. We additionally achieved sturdy double-digit income progress throughout credit score derivatives, Munis and China bonds. Automation continues to surge with world credit score AiEX common day by day trades rising over 25% yr over yr. We achieved our second highest totally digital market share throughout U.S.

IG helped by IG block market share of over 8%. We additionally achieved our second-highest totally digital excessive yield market share with report excessive yield block market share of almost 5%. Throughout the quarter, we achieved a brand new month-to-month excessive yield report of 9% in July. Our institutional enterprise continues to scale as purchasers undertake our various set of protocols.

Yr up to now, we estimate over 40% of our U.S. institutional variable income progress was pushed by non-market elements, primarily market share. Our main concentrate on rising institutional RFQ continues to repay with common day by day quantity rising over 45% yr over yr with sturdy double-digit progress throughout each IG and excessive yield. Furthermore, portfolio buying and selling common day by day quantity rose over 50% yr over yr with progress of over 70% throughout IG portfolio buying and selling and over 20% progress throughout excessive yield.

We proceed to concentrate on main with innovation and that is resonating with our purchasers resulting in person progress of over 20% yr over yr. Retail credit score revenues have been up over 15% yr over yr as monetary advisors proceed to allocate investments towards credit score to go with their shopping for of U.S. treasuries and retail certificates of deposits. All commerce produced a strong quarter with over $185 billion in quantity, up over 35% yr over yr.

Particularly, our all-to-all common day by day quantity grew over 20% yr over yr and our seller RFQ providing grew over 25% yr over yr. The group continues to be centered on broadening out our community and rising the variety of responders on the all commerce platform. Within the third quarter, the typical variety of responses per all-to-all inquiry rose over 10% yr over yr. We additionally proceed to extend our engagement and pockets share with ETF market makers with common day by day quantity up over 45% yr over yr.

Lastly, our session’s common day by day quantity grew over 45% yr over yr. Trying forward, U.S. credit score stays a key focus space and we like the way in which we’re positioned throughout our three shopper channels. We consider we have now a protracted runway for progress with ample alternative to innovate alongside our purchasers.

Throughout the quarter, we enhanced our multi-client internet recognizing providing primarily based on shopper suggestions, expanded our PT providing to incorporate auto ship capabilities and proceed to see rising adoption of our RFQ Edge providing. In gentle of Basel III concerns, we’re additionally centered on partnering with our seller purchasers to assist them extra effectively recycle their very own stability sheet danger and earn extra money. We additionally stay very centered on chipping away at excessive yield and we consider we’re well-positioned to duplicate the success we have had in IG. We’re making progress on gross sales hiring efforts and we have now a powerful pipeline of asset managers, hedge funds, ETF market makers, and insurance coverage firms that we’re centered on.

With Aladdin, we’re nonetheless in section 2 of the mixing, which is targeted on the responding and initiating of all to all and RFQ inquiries on the Aladdin display screen. Early shopper suggestions has been optimistic, significantly across the enhanced integration that permits our purchasers to extra simply monitor all to all and seller liquidity alternatives. Past U.S. credit score, our EM growth efforts proceed with early shopper success throughout Latin America and the Center East.

As we enter every area, our world product providing is proving to be a key strategy to develop relationships with purchasers and sellers. On the product facet, we stay centered on leveraging our various product experience, enhancing our integration with FX all and persevering with to construct out our holistic rising market performance. Shifting to Slide 8, world swaps produced report revenues pushed by a mix of sturdy shopper engagement in response to the macro setting, continued market share beneficial properties and a greater combine shift towards danger buying and selling. Power right here was partially offset by a 1% discount in weighted common period that we’re seeing optimistic indicators on that entrance given the altering macro setting.

All in world swaps revenues grew 51% yr over yr and market share rose to 22.4% with report share throughout G-11 and EM denominated currencies. The worldwide macro backdrop continues to be in flux. Throughout the Q3, we noticed world yields fall given the expectations for central financial institution charge cuts. For instance, U.S., German and Japanese 10-year yields fell 20 foundation factors to 60 foundation factors throughout the quarter.

But in October, we have now seen those self same yields rise considerably from the top of the third quarter. This stage of uncertainty continues to drive sturdy shopper engagement throughout our world suite of currencies throughout our world suite of currencies and continued market share beneficial properties with our purchasers proceed to repay. Throughout the third quarter, we had 11 swaps currencies that noticed year-over-year quantity progress of over 100%. We had one other 12 swaps currencies that noticed quantity progress between 50% and 100%.

Along with the favorable macro yr up to now, we estimate that over 60% of our institutional variable swaps income progress was pushed by non-market elements primarily market share. As short-term charges are anticipated to fall additional and because the yield curve steepens, this could present a tailwind to our danger primarily based quantity payment per million. As a reminder, our pricing is predicated on the quantity of DV01 or the chance decline is placing by means of the platform, which is pushed by two elements. The extent of yields and period.

As charges fall or period will increase the DV01 of a commerce will increase, primarily based on the present charge setting. If we noticed a 100 foundation level drop in charges, this might result in a risk-based payment per million rising by 5% to six%. Moreover, our present danger primarily based period is about six years. Based mostly on the historic payment per million ranges, when our period was about seven years, we may see a 6% to 7% improve in our danger primarily based payment per million if period extends by a couple of yr.

Lastly, we proceed to make progress throughout rising market swaps and our quickly rising RFM protocol. Our third-quarter EM swaps revenues rose over 80% yr over yr, and we consider there’s nonetheless vital room to develop given the low ranges of electronification. Our RFM protocol noticed common day by day quantity rise almost 150% yr over yr with adoption selecting up. Trying forward, we consider the long-term swaps income progress potential is significant.

We’re trying ahead to offering options for extra elements of the swaps market. The group is actively partnering with key purchase facet and promote facet purchasers to make additional inroads into the cleared swaps market and preliminary inroads into the bilateral swaps market. With the general swaps market nonetheless about 30% electrified, we consider there stays quite a bit we will do to assist digitize our shopper’s guide workflows whereas the worldwide fixed-income markets and broader swaps market develop. And with that, let me flip it over to Sara to debate our financials in additional element.

Sara Furber — Chief Monetary Officer

Thanks, Billy, and good morning. As I am going by means of the numbers, all comparisons shall be to the prior yr interval, until in any other case famous. Slide 9 offers a abstract of our quarterly earnings efficiency. As Billy recapped earlier, this quarter we noticed report revenues of $449 million that have been up 36.7% yr over yr on a reported foundation and 36.5% on a relentless forex foundation.

We derived roughly 38% of our third-quarter revenues from worldwide purchasers and recall that roughly 30% of our income base is denominated in currencies apart from {dollars}, predominantly in Euros. Our variable revenues elevated by 50% and whole buying and selling revenues elevated by 37%. Whole mounted revenues associated to our 4 main asset lessons have been as much as 2.4% on a reported and fixed forex foundation. Credit score mounted income progress was primarily pushed by will increase to our subscription charges and by the addition of latest sellers this yr, and different buying and selling revenues have been up 4%.

As a reminder, this line fluctuates because it displays revenues tied to periodic know-how enhancements carried out for our retail purchasers. Yr-to-date adjusted EBITDA margin of 53.5% elevated 111 foundation factors on a reported foundation when in comparison with our 2023 full-year margins. Shifting on to charges per million on Slide 10 and a spotlight of the important thing developments for the quarter. You’ll be able to see Slide 16 of the earnings presentation for added element relating to our payment per million efficiency this quarter.

For money charges merchandise, common charges per million have been up 1%, primarily attributable to a rise in Australian authorities bonds payment per million. For long-tenure swaps, common charges per million have been up 17%, primarily attributable to a decline in compression exercise. Length in Q3, 2024 was comparatively consistent with the Q3 of 2023. For money credit score, common charges per million decreased 6% attributable to a combination shift away from Munis.

For money equities, common charges per million elevated 9% attributable to a combination shift towards EU ETFs, which carry a comparatively increased payment per million. Lastly, inside cash markets, common charges per million elevated 55% because of the inclusion of ICD and a slight improve in U.S. repo payment per million. Slide 11 particulars our adjusted bills.

At a excessive stage, the scalability and variable nature of our expense base permits us to proceed to speculate for progress and develop margins. We’ve got maintained a constant philosophy right here. Adjusted bills for the third quarter elevated 30.4% on a reported foundation and 31.5% on a relentless forex foundation. Adjusted compensation prices grew 36%, the overwhelming majority associated to variable or discretionary spending.

Simply over 50% of the rise was efficiency associated expense and almost 20% from new hires in 2024 and the addition of ICD. Know-how and communication prices elevated 23%, primarily attributable to our beforehand communicated investments in knowledge technique and infrastructure, which we intend to speed up to help our know-how efforts as we proceed to develop. Adjusted skilled charges grew 26% primarily attributable to a rise in tech consultants as we increase our know-how operations and construct incremental scalability. We anticipate skilled charges to proceed to develop over time as we spend extra on know-how consulting to help our general progress.

Adjusted common and administrative prices elevated 22% attributable to a pickup in journey and leisure and advertising bills, which was offset by favorable actions in FX that resulted in an roughly $400,000 acquire within the third quarter of 2024 versus a $1.5 million loss within the Q3 of 2023. Slide 12 particulars capital administration and our steerage. On our money place and capital return coverage, we ended the third quarter in a powerful place with $1.2 million in money and money equivalents and free money circulation reached roughly $800 million for the trailing 12 months. Our internet curiosity revenue of $15.2 million decreased attributable to decrease money balances, as we funded our current acquisition of ICD with $771 million of money readily available.

Moreover, our internet curiosity revenue was impacted by $970,000 in accrued curiosity expense associated to a TRA fee. Excluding this curiosity expense, which happens sporadically primarily based on the timing of TRA funds, our internet curiosity revenue would have been $16.2 million and our adjusted EPS would have been $0.76. With this quarter’s earnings, the board declared a quarterly dividend of $0.10 per Class A and Class B shares. Turning to up to date steerage for 2024.

In gentle of the continued sturdy enterprise momentum, we’re rising our adjusted We’re rising our adjusted expense steerage to $855 million to $875 million. We’re presently trending towards the midpoint of the vary. Total, we’re seeing elevated alternative to speculate for future progress and proceed to anticipate accelerated investments going ahead. All in with these investments, we proceed to anticipate our 2024 adjusted EBITDA margin growth to exceed 2023 ranges.

We proceed to anticipate our capex and capitalized software program improvement to be about $77 million to $85 million for 2024. Acquisition and Refinitiv transaction associated D&A, which we modify out because of the improve related to push down accounting is now anticipated to be $158 million. We proceed to anticipate 2024 and 2025 revenues generated below the brand new grasp knowledge settlement with LSEG to be roughly $80 million and $90 million respectively. Final quarter, we signed a 16-year lease for our new New York Metropolis headquarters, which is anticipated to start in July of 2025, together with anticipated double hire from our current New York Metropolis workplace and different anticipated leasing exercise within the second half of 2025.

We anticipate our occupancy bills to be roughly $7 million increased than the second half of 2024. Now, I am going to flip it again to Billy for concluding remarks.

Billy Hult — Chief Govt Officer

Thanks Sara. As a know-how firm centered on the monetary markets, we thrive in change and complexity. We consider in a technique of evolution and stability, not revolution. We’re excited in regards to the alternatives to interact with our purchasers to increase our multi-asset class footprint and we be ok with our long-term future progress outlook.

With a few necessary month-end buying and selling days left in October, which are typically our strongest income days. October revenues are trending at report ranges up roughly 30% relative to October, 2023. The range of our progress stays a theme. We’re seeing sturdy quantity progress throughout world authorities bonds, mortgages, repos and company credit score.

Our October IG and excessive yield share are each trending decrease than September ranges. Our IG and excessive yield share are primarily being impacted by decrease ranges of business PT to date in October. I might additionally wish to welcome Daniel Maguire to our Board of Administrators. Dan brings greater than 25 years of expertise in monetary companies.

Having identified Dan for a very long time, I feel very extremely of him. I’m assured that he’ll make a major influence as we increase our footprint and broaden the boundaries of innovation at Tradeweb. Lastly, I want to conclude my remarks by thanking our purchasers for his or her enterprise and partnership within the quarter, and I need to thank my colleagues for his or her efforts that contributed to the report quarterly revenues and volumes at Tradeweb. With that, I’ll flip it again to Ashley to your questions.

Ashley Serrao — Head of Treasury, FP&A, and Investor Relations

Thanks, Billy. [Operator instructions] Operator, now you can take our first query. Thanks.

Questions & Solutions:

Operator

[Operator instructions] Our first query comes from Chris Allen of Citi. Your line is now open.

Christopher Allen — Analyst

Good morning, everybody, thanks for taking the query. Simply wished to ask on credit score. We have had rising questions as to how Tradeweb’s platform has been evolving from right here relative to market entry, it was known as out particular new developments on their platform simply by way of their enhanced algo suite, enhanced deal of protocols, improved buying and selling entrance finish. A few of these developments appear to be catch ups to Tradeweb, others look to place them for elevated block penetration.

So it would be nice to listen to how Tradeweb stacking up right here and the way they — are how you’re positioned for elevated block penetration transferring ahead?

Billy Hult — Chief Govt Officer

Positive. Hey, Chris. How are you? It is Billy. Yankees gained final evening, so I am in an excellent temper or most of us at Tradeweb are in good moods.

Once I form of take into consideration type of the markets Chris that we’re in, I all the time form of describe it as type of we’re on this steady journey of studying. That is how I take into consideration and describe our enterprise. And once we take into consideration the journey round our credit score enterprise, I feel the start of that journey form of began form of 4 or 5 years in the past from our perspective with some open questions, can we actually compete in credit score? Can we perceive the credit score enterprise the appropriate approach? And then you definitely form of like flash ahead to immediately, when actually we’re form of neck and neck within the IG enterprise as a market chief within the area. And I feel that claims quite a bit like over the past two years, when you concentrate on the protocols that we’re in, our RFQ, quantity is up over 200%, 210%.

Our portfolio buying and selling, these are like large numbers up over 700%. Our all-to-all is up over 130% and our session’s enterprise, our suite enterprise additionally has finished extraordinarily properly. So the strategy from our perspective stays unchanged. We do one thing I feel that I am very happy with.

We reply to shopper suggestions very, very properly. And so from our perspective in credit score that is launching what we name RFQ edge, which gives actually top-tier analytics, seller upsize, which promotes block buying and selling, and we proceed to reinforce our portfolio buying and selling workflows. So it is a course of and I form of say this, I feel in a really clear approach, whereas we’re very sturdy leaders round innovation, from our perspective, generally adoption is essential. And so the block and tackling of type of delivering what we have constructed to our most necessary purchasers continues.

And as we do this, clearly there’s this type of twin strategy round enhancing our know-how, our person interface offering superior analytics and doing the form of exhausting work round delivering greatest at school know-how. Workforce, Chris, like tremendous centered, actually, actually happy with them and we will proceed to remain centered on this space and carry out rather well. So respect the query and thanks very a lot.

Operator

Thanks. One second for our subsequent query. Our subsequent query comes from Invoice Katz of TD Cowen. Your line is now open.

Invoice Katz — TD Cowen — Analyst

OK. Thanks very a lot for taking the questions and good morning, everyone. Recognize all of the disclosure. Possibly simply I do know one query, however only one clarification.

Simply Billy, by way of your commentary round payment per million, given the period and the curve, so I need to make it possible for’s all each incremental. So will probably be 5% to six% plus 6% to 7%, so I need to be certain I heard that accurately. After which the broader query I’ve simply sticking on competitors for a second. I assume certainly one of your rivals market entry has linked up with ICE to doubtlessly increase their buying and selling in credit score as properly.

I used to be simply questioning for those who may handle that. And possibly the broader query is, as non-public markets proceed to get a much bigger position in capital markets, how does that have an effect on the long-term algorithm for progress?

Billy Hult — Chief Govt Officer

Positive. Good — all good questions. Sara you’re taking the primary one, I simply need to be certain we make clear that to you.

Sara Furber — Chief Monetary Officer

Sure. It is you heard it precisely. So the payment per million you heard is right, after which possibly you need to go to personal credit score.

Billy Hult — Chief Govt Officer

Sure. Pay attention, I do not actually have an enormous touch upon what sort of — what market entry is doing with ICE, I imply, we clearly, I feel have levered our retail enterprise and that is given us a bonus into credit score for a very long time. Really feel actually good about that. I’ve all the time form of like thought and brought the strategy, like actually like reside and breathe and perceive your purchasers clearly be tremendous conscious of the aggressive panorama, however I actually do not have a large touch upon what they’re doing with ICE.

However it’s an excellent query. And so form of like on that theme, simply by way of non-public credit score for a second, concentrate on current enterprise keep in entrance of of purchasers on their most necessary themes after which execute rather well. After which how do you form of pivot into creating new alternatives in adjoining markets like this evolution from form of paper markets to extra clear markets. That is the type of like strains on this firm’s arms that is form of like who we’re.

So from our perspective, I feel, within the non-public market space, plenty of headlines and I feel one of many developments for certain that we have now our eye on is Apollo’s launch of an ETF. It combines form of private and non-private credit score along side State Road. I feel that is type of like value following, other than the worlds of form of non-public and public credit score converging, which is a primary, it is particularly attention-grabbing round what we might say is Apollo’s dedication to supply liquidity intraday within the type of executable agency bids. That is value watching and value form of saying.

And so, as I say that, I feel what I am describing sounds similar to the markets that Tradeweb form of lives and breathes in and what we have now seen occur a number of occasions within the mounted revenue markets and the place we have now tended to play a number one position in collaborating with our purchasers to develop and enhance secondary market buying and selling. So what you get from us is that this day in and day trip rigor on our current companies and current marketplaces after which the form of eyes on growth. And so we’re clearly watching what’s occurring in that area with open eyes. All good questions and respect it.

Invoice Katz — TD Cowen — Analyst

Thanks.

Operator

Thanks. One second to your subsequent query. Our subsequent query comes from Richard Fellinger of Autonomous. Your line is now open.

Richard Fellinger — Autonomous Analysis — Analyst

Hey. Good morning. I wished to ask about bills. Adjusted EBITDA margin growth stays fairly strong yr up to now versus the 50 foundation factors final yr.

Might possibly simply on the longer-term outlook, may you remind us how you concentrate on expense progress and margin growth as we begin to consider the subsequent few years? Thanks.

Sara Furber — Chief Monetary Officer

Positive. It is Sara. After we discuss bills, I feel it is all the time useful to take a multi-year view, and so for those who take a look at our historic progress simply as a baseline from 16 to 23, we’ll take this yr out for a second. We averaged about 10% year-over-year progress.

If you happen to checked out that interval, you’ll know and clearly we spent a number of time on this, it is not linear and it relies upon, that expense progress actually is dependent upon what the income progress setting is, the enterprise investments that we’re making. And so inside that common of 10%, we have seen lows of 4% in sure years and 19% for example and highs of 15% primarily based on setting and likewise issues like acquisition. So once we’re trying ahead, like, deliver it ahead to the present quarter, no higher instance, I feel. We have seen expense progress about 25%, properly above our historic common, however actually make sense given the sturdy setting that we’re in, the sturdy top-line efficiency and then you definitely think about two acquisitions that we have made this yr and a number of the accelerated investments we have talked about beforehand.

So I feel one of many large issues as you concentrate on going ahead that is useful to unpack is the largest driver of our expense progress is often comp. If you happen to take this quarter, 70% of the comp progress for example is discretionary or variable. So you actually see the flexibleness in our working mannequin, whether or not it is efficiency associated compensation or new hiring that is at our discretion and clearly the inclusion of ICD. We sometimes give our steerage out subsequent quarter and we’ll proceed to observe that cadence.

However there are a few issues as you are serious about 2025 value calling out a few of which we did name out in our ready remarks. One is ICD. Clearly, there’s seven months of incremental expense round that acquisition. That is about $35 million to issue into your fashions.

After which the second is increased occupancy expense. We’re transferring our New York headquarters subsequent yr and given the overlap in hire and the bigger footprint that it’ll have, we have highlighted about $7 million within the second half of subsequent yr to anticipate as an uptick in these strains. Past that, what I’ll say is given the working leverage of the enterprise, we do anticipate to have margin growth. We’re nonetheless dedicated to that.

We clearly need to stability investing for progress with scaling the platform. I might anticipate that margin growth to be barely extra muted given a number of the issues I simply known as out, however we have maintained a number of flexibility and we have form of demonstrated that observe report all through the years. So hopefully that helps and we’ll clearly formalize expense steerage subsequent quarter.

Richard Fellinger — Autonomous Analysis — Analyst

Nice. Thanks.

Operator

Thanks. One second for our subsequent query. Our subsequent query comes from Alex Blostein of Goldman Sachs. Your line is now open.

Alex Blostein — Analyst

Hey. Good morning, everyone. Thanks for the query. I wished to speak for a minute about payment per million developments within the rate of interest swap enterprise.

There are a selection of crosscurrents in that enterprise clearly, volumes clearly very sturdy, period shifting round a bit bit and compression buying and selling can form of swing issues up and down as properly. So however all in, you guys put up over $3 in payment per million and swaps over one yr. How do you concentrate on I assume the trajectory there from right here and possibly a broader touch upon income progress algorithm on this enterprise over the subsequent one to 2 years?

Billy Hult — Chief Govt Officer

So possibly like start line, I might say, very assured in regards to the long-term progress potential of that enterprise, like beginning with that. Solely 30% of the market is presently electrified. And so from our perspective, out of central casting that form of leaves loads of room for the way we take into consideration growth there. So large space of focus for the corporate.

Driving income progress by additional electrifying current shopper flows is like out of our playbook and persevering with to onboard new purchasers globally. I do not need to say like slightly than be involved with the fluctuations into your query, as a result of they’re actually good query as you are understanding our enterprise however like that type of turns into the form of focus of the corporate. And so a number of natural progress initiatives that I might form of spotlight for you. First, I might say the inroads and the success that we have had in EM.

Second factor I might say that request for market protocol that micro protocol RFM is an enormous one. I give the worldwide group an amazing quantity of credit score for that. It is actually understanding essentially the most refined shopper’s workflow after which replicating that in a approach that works for them and works for us. That is a reasonably large deal.

Apparently, I feel these sorts of progress initiatives carry the next payment per million, so I might form of like hyperlink it again to you that approach. To handle possibly for a second, your particular query in regards to the form of the payment per million outlook on a macro stage, I feel a number of elements clearly may affect that transferring ahead. And I form of known as a few of them out in my ready remarks, Alex, however what I might say is, purchasers proceed to concentrate on the shorter finish of the curve and we’ve not noticed a type of improve in period but. If rates of interest decline, my intuition is and I feel the home view intuition is we might even see purchasers buying and selling extra on the longer finish of the curve, doubtlessly boosting period.

So I might form of spotlight that to you. After which clearly moreover the speed outlook and period are negatively correlated. In order charges fall, the period of the identical bond or tenor will increase, I do not need to go into like bond 101, however you recognize that higher than I do. I feel possibly, possibly one of many extra necessary issues I may say is we’re seeing sturdy danger buying and selling to date in October with swaps seeing income progress in extra of over 40% yr over yr.

So I need to be certain I form of like describe that to you in a really easy approach. So proceed to remain form of very optimistic in regards to the outlook heading into 2025. This we talked quite a bit about form of compression trades all through type of ’24. That was a strategic transfer on our half to get into sure purchasers and form of get into extra of their form of danger buying and selling circulation.

And so from our perspective, the way in which that we have been ready to try this has labored. So we do not form of again away from the technique of constructing certain that we deal with these form of trades when the market type of dictates that, that is an actual tactical transfer from us that I feel has paid off. Feeling good in regards to the trajectory of that enterprise, Alex, and respect the questions. Hopefully, I answered them properly.

Sara Furber — Chief Monetary Officer

Alex, I’d simply add, as a result of I feel Billy made this level in his remarks, nevertheless it helps simply quantify form of what Billy’s highlighting as this algorithm. If you concentrate on that period improve and he talked about charge drops. If one yr improve in period in our world swaps enterprise, possibly going from 10% to 11% will increase payment per million by 9%. So offers you some sense of magnitude.

And equally, which he talked about I feel in his ready remarks, that drop of charges by a 100 foundation factors, 5% to six%. So you’ll be able to see the flexibleness and type of the underlying energy going ahead round these strikes.

Alex Blostein — Analyst

Yeah. That is tremendous useful. Thanks, each.

Billy Hult — Chief Govt Officer

Thanks, Alex.

Operator

Thanks. Our subsequent query comes from Michael Cyprys of Morgan Stanley. Your line is now open.

Michael Cyprys — Analyst

Hey. Good morning. Thanks for taking the query. Simply wished to ask about ICD with the deal now closed.

I hoped you can elaborate a bit on the way you anticipate this to contribute to income and earnings as you look out over the subsequent couple years. What kind of steps would possibly you be capable to take to assist speed up the expansion of the ICD enterprise over the subsequent couple of years? What could be a number of the low hanging fruit versus what features could be a bit more durable or take a bit longer to realize? After which simply extra near-term, what could be a number of the alternatives to offset any potential slower demand from cash funds with charge path anticipated to maneuver decrease?

Sara Furber — Chief Monetary Officer

Look to reiterate and I do know we mentioned this final quarter, we’re so happy to have ICD be a part of the Tradeweb household and particularly actually happy with the collaboration of that administration group with our administration group. It has been a seamless transition since we closed the deal. Alternatives to speed up, we have talked about this however I feel it actually falls into two buckets. Within the low hanging fruit or type of the extra near-term bucket, we see a chance to essentially increase ICD’s attain globally given our footprint and our gross sales power to essentially penetrate extra purchasers internationally in addition to domestically throughout monetary companies.

So I would say that’s in all probability if there’s low hanging fruit, the low hanging fruit as a result of it is not depending on know-how construct. In order that’s extra near-term and clearly that is already underway. The second piece is admittedly increasing ICD’s product providing on their portal and tapping into cross promote the place we’re placing our Tradeweb merchandise and making them obtainable. So issues like U.S.

treasuries can be the primary that we will begin with that construct is underway. We anticipate that to go reside within the first half of subsequent yr. In order that’s a bit bit longer since you do need to watch for that know-how construct. The excellent news is the dialogue with the purchasers is powerful and truly fairly particular.

There have been quite a few flash surveys that we have finished. 65% of ICD purchasers have expressed curiosity in shopping for U.S. treasury. So we’re not constructing it and hoping that they are .

We’re actually constructing it primarily based on an knowledgeable dialogue that each groups are having on a coordinated foundation with the shopper base. So I would say these are possibly the 2 greatest pockets to focus on round alternatives to speed up. The second a part of your query is, how do you are feeling in regards to the charge strikes, charges coming down, which clearly does mute progress. I feel there are a few attention-grabbing developments, generally a bit bit counterintuitive.

One is, we anticipate and what you’d see for those who look again on business developments, the demand for cash markets really will increase as charges decline. It is because sometimes company treasurers are making a choice between cash markets and financial institution deposits across the short-term liquidity. And as these charges get lower, the premium that cash market funds supply relative to financial institution deposits really is increased. The deposits reprice decrease quicker is one other approach of claiming it and cash market funds have an extended period.

So we really see cash markets sometimes purchase AUM and be extra enticing in that declining charge setting. However clearly, as charges are decrease that does mute a number of the influence. I feel basically on a secular foundation, company money might be the largest driver of how this enterprise performs and we expect that is wholesome. We see corporates having extra money technology and we expect the demand for cash markets is fairly steady.

It is sometimes the go to possibility round liquidity and yield and we expect the underlying well being of the corporates are there. So I feel general, clearly, actually excited however eyes huge open on the setting. I feel we have now a number of levers to pursue.

Michael Cyprys — Analyst

Nice. Thanks a lot.

Sara Furber — Chief Monetary Officer

Thanks, Michael.

Operator

Thanks. Our subsequent query comes from Dan Fannon of Jefferies LLC. Your line is now open.

Dan Fannon — Analyst

Thanks. Good morning. Billy a query on portfolio buying and selling. Competitors inside this protocol has been rising.

You’ve gotten some business individuals doing sure trades without cost, whereas pricing hasn’t modified at a headline stage. How are you serious about pricing strain over time?

Billy Hult — Chief Govt Officer

Sure. We might say competitors is nice for the market once we have been those chasing. And now that we are the ones being chased, we are saying competitors is nice for the market, there’s that expression form of you get higher by means of competitors. And I feel that the aggressive panorama and most significantly the purchasers win.

I do not know, it is like iron sharpens iron, form of like that is how we take into consideration the world. So no areas of competitors form of catches us off guard. And our model as you recognize very properly, I feel is constructed on worth creation and innovation. And that is how we intention to steer and win share.

I feel, possibly the necessary factor for a second to understand is that clearly like costs and every little thing and we have realized that within the charges primarily based competing in opposition to Bloomberg and charging for the worth we create. Possibly stating the apparent a bit bit. I feel, when the panorama makes use of payment holidays or they depend on payment holidays, we expect that is a short-term repair. In portfolio buying and selling, we have now been, I feel from my perspective fairly considerate about pricing and we have now purchasers which might be very prepared to pay for what we might describe to you as distinctive workflow customization, distinctive performance like internet recognizing, distinctive know-how comparable to with the ability to execute essentially the most line objects in a commerce.

So we be ok with the place our pricing mannequin is Dan to say that very easy. Possibly form of deep down, I might say my intuition is the aggressive panorama is — will finally form of rationalize their pricing and form of develop out of those payment holidays. I feel that is what we might form of anticipate. And so the necessary factor I feel is to understand that from our perspective, portfolio buying and selling is right here to remain and poised to extend considerably.

So there’s going to be loads of quantity to be shared in a aggressive market. It is that expression in regards to the greater the pie will get, and I feel our intuition is our slice goes to be fairly large. So we be ok with our place, clearly laser, like proceed to concentrate on the long run finish state of portfolio buying and selling, which from our perspective goes to be extra about this type of, like, I mentioned like within the final query, like adoption continued work round adoption, higher analytics and developments in form of the use circumstances of all of it. Good to listen to your voice and good query.

Thanks.

Dan Fannon — Analyst

Thanks.

Operator

Thanks. Our subsequent query comes from Kyle Voigt of KBW. Your line is now open.

Kyle Voigt — Analyst

Hey. Good morning. So with ICD now closed, you continue to have extra money within the stability sheet, no debt capital flexibility. As we’re serious about the long run for capital deployment M&A, are you able to discuss your willingness to execute on M&Some time nonetheless within the means of integrating ICD and likewise for those who may share whether or not there are any notable asset lessons or shopper segments the place you are feeling like there you’re nonetheless underpenetrated, however the place there may be synergy with the broader commerce net platform.

Billy Hult — Chief Govt Officer

That is going to form of be type of a bit little bit of me after which Sara, you are going to observe me on this. Very first thing I need to say is I need to give Sara like a ton of credit score for including like an amazing quantity of rigor by means of the group over the past couple of years as we have finished form of three completely different acquisitions and actually labored type of very exhausting at integrating them in a approach that form of works for us. And I feel doing these form of issues results in extra alternatives. So I might begin with form of saying as our natural progress stays actually clearly M&A goes to proceed to be our form of most popular use of money.

And so I feel we’re possibly quietly or a bit bit beneath the floor constructing fairly a strong observe report of executing on these offers effectively and creating worth. And in order that’s my level round a dimension that Sara has added to the corporate. Whether or not or not that is the yield dealer integration, which is forward of schedule, I feel Ratefin is an enormous one for us. And that integration can be progressing quicker than we anticipated.

So Sara talked about, clearly, like, excited to shut the ICD acquisition this previous quarter, the groups have in a short time ramped up efforts to increase ICD’s gross sales enterprise long-term. I feel it is essential to proceed to make these form of, like, strategic bets to reinforce shopper expertise. These bets are form of essential bets for the corporate and that is about form of propelling future progress. One thing that we really feel very strongly about.

Let me hand it possibly to you for a second.

Sara Furber — Chief Monetary Officer

I might say we stay lively exploring offers out there. It’s an lively market. We’re very centered on integration, however we expect we will clearly do each on the identical time. I would additionally spotlight that on an inorganic foundation, we take a look at issues past outright acquisitions.

We proceed to discover a number of minority investments that we have accomplished, significantly within the digital area and partnerships there. So I feel there are a number of levers and we have now the bandwidth to execute properly on all of these. However clearly our focus is on integrating what we thought rather well within the near-term, extra broadly, simply by way of capital administration. There’s actually no change.

I really feel like I am a damaged report. So there is no change in our philosophy right here. First precedence is investing organically within the enterprise alternatives that we see and people we have talked about. M&A second high precedence for money.

After which we observe it with buybacks and dividends. On the buyback, identical philosophy, we sometimes use that to offset dilution. From inventory primarily based compensation, we have mentioned we’ll proceed to be opportunistic with repurchases with an eye fixed towards EPS accretion dilution. Clearly need to be considerate there.

After which I assume simply on the dividend over the past couple years we have elevated our dividend by 25% given our sturdy earnings and free money circulation progress. And I anticipate the board continues to guage that primarily based on quite a few elements, however clearly will think about our earnings and free money circulation progress as they take a look at that technique going ahead. Thanks a lot.

Kyle Voigt — Analyst

Thanks.

Operator

Thanks. Subsequent query comes from Patrick Moley of Piper Sandler. Your line is now open.

Patrick Moley — Analyst

Sure. Good morning. Thanks for taking the query. I simply had one on the charges enterprise, Billy, you talked in your ready remarks and a bit bit right here in Q&A on the energy you are seeing in swaps.

So we’re simply hoping you can increase on that and discuss possibly what you are seeing throughout the remainder of the charges franchise. After which moreover, simply broadly given the setting and the speed outlook, would you say that you just’re seeing velocity decide up throughout your markets?

Billy Hult — Chief Govt Officer

So like, I feel it is a good time to be within the REITs enterprise. And we form of say that in a really clear approach you’ve got an actual charge setting. Then you definately form of take into consideration the actual fact clearly that the debt markets are rising, central banks usually are not the form of patrons out there that they have been. And so non-public sector intermediation is again whereas it’s rising.

And so we expect that is an excellent setting for us. And so I feel it was like third-quarter ’24, our treasury market volumes are up over 30%, variable revenues up over — up near 50%. Rate of interest swap market volumes up 30% with these variable revenues up over 60%, mortgage market volumes, which I feel is a vital factor for us to proceed to trace up 20%, variable revenues up 25%. These are very sturdy indicators of why it is good to be within the charges enterprise or the chance intermediation enterprise for those who’re one of many banks.

I might make across the velocity of all of it. I might make a type of continued level round clearly the energy of the choice market makers persevering with to play a major position in these companies. I’ve highlighted companies like Citadel previously. My intuition is we will proceed to have extra of that after which a type of extra modernized model of the strongest gamers within the area, traditionally, that are the large banks.

From our perspective, that is a convergence that is going to proceed to steer into extra velocity. Plus you think about clearly a proceed and rising stage of sophistication with the purchase facet neighborhood, which has clearly been the form of like fuel within the engine round our AiEX protocol. These are like fairly sturdy indicators that velocity goes to proceed to amplify and improve within the area. Thanks quite a bit for the query.

Patrick Moley — Analyst

Thanks.

Operator

Thanks. Our subsequent query comes from Benjamin Budish of Barclays. Your line is now open.

Ben Budish — Analyst

Hello. Good morning and thanks for taking the query. I wished to ask in regards to the mortgage enterprise. So charges have usually been falling.

We have seen the enterprise come to life a bit bit. Are you able to form of discuss what you are seeing there below the floor after which how necessary are type of continued decline in charges to progress in that enterprise? As you see it, it appears to be like like in October a minimum of the type of common 30 yr charge is selecting again up. So do you assume that’s that necessary or what different — what are the opposite form of necessary drivers to consider for mortgages particularly?

Billy Hult — Chief Govt Officer

Two issues, Ben. It is form of like as charges drop or when charges drop extra, I feel we need to give it some thought as form of easy. Clearly, our expectation is that simple mortgage quantity will improve. And clearly, as you recognize very properly, that is a enterprise that we have now a really sturdy form of management position in, whether or not or not that is within the shopper seller channel or the wholesale channel.

After which possibly what I might say is as importantly, I feel you form of enter into the zone of how we describe or take into consideration convexity hedging. And so we might anticipate to see an extra improve in quantity from form of mortgage finish customers into the swaps market. And we expect that has a type of driving power for our swap volumes going ahead. So it is a bit little bit of a mix of easy mortgage quantity plus possibly a amplification into the swap area.

After which I might say possibly form of like in a world the place you attempt to hit on all cylinders. However clearly you guys know higher than I do, that may be a tough factor to do. I feel as an organization we will have a continued effort round specified swimming pools, which we expect is a vital piece of that market. There are a number of features of that market that from our perspective have some type of skill to duplicate what we have finished in credit score.

They have a tendency to commerce on bid lists and supply lists. There is a idea round portfolio buying and selling that from our perspective exists round swimming pools extra work for us as an organization to do there. And we consider that as a chance given the sturdy, sturdy basis and repute that we have now within the general mortgage enterprise.

Ben Budish — Analyst

You bought it. Thanks very a lot.

Billy Hult — Chief Govt Officer

Yeah, thanks

Operator

Thanks. Our subsequent query comes from Ken Worthington of J.P. Morgan. Your line is now open.

Ken Worthington — Analyst

Hello. Good morning. Thanks for taking the query. So it has been an ideal yr for exercise ranges.

Possibly one other nice yr throughout your main asset lessons. How are you seeing the potential for charges, excessive grade, excessive yield exercise for subsequent yr. Is bigger business exercise ranges, do you see it as being attainable? Is it possible? Which of your flagship merchandise do you assume you’ve got the best conviction you can see higher business volumes in for subsequent yr? And if exercise ranges turn out to be extra challenged, the place do you see the potential for elevated market share from right here to have the ability to almost certainly offset any potential for weaker exercise ranges?

Sara Furber — Chief Monetary Officer

Sure. I imply, I feel it is attention-grabbing. I am going to begin with the again half of your query. I am not nice at forecasting markets, so I do not need to be in that enterprise.

However what we do spend a number of time on is ensuring the portfolio of companies we have now performs and beneficial properties market share in any form of setting. I feel one of many issues that offers us a number of confidence on this and I do know Billy talked about it by way of his remarks, which form of undergo completely different asset lessons, the charges enterprise for example, it has been an amazing market setting for our charges enterprise and particularly swap. That mentioned, while you take a look at the expansion, the numbers that we put up by way of swap, 60% of that progress has come from what we might say will increase in market share by means of both including new purchasers, current shopper rising penetration versus simply market volumes. And in order that’s once we take into consideration the algorithm of how we develop this enterprise, we begin to attempt to unpack what’s occurring simply purely out there versus what’s inflicting us and the way can we improve our market share above and past business volumes.

And so you can do this analogy in credit score as properly. I feel that is in all probability about 40% away from these wholesome market volumes. And so I feel that offers us a number of confidence. Clearly, the expansion charges we put up are fairly vital.

And so 40% or 60% relying on the vary remains to be an extremely excessive properly over that double-digit progress charge that we goal on a long-term foundation.

Billy Hult — Chief Govt Officer

I feel that is spot on reply. I would say like a bit bit can type of in a approach that we might give it some thought, like feeling fairly sturdy that as we get into subsequent yr type of extra continued amplification of quantity within the mortgage enterprise? After which a bit bit to your form of query round like the place’s the market share if the volumes decelerate? I feel Sara hit that. I feel when you concentrate on the all in rate of interest swap, electronification nonetheless being fairly low after which the historical past for the corporate round doing these sorts of micro improvements that take telephone use on to Tradeweb, we really feel fairly assured there. Different factor I might say is, each Sara and I discussed type of the r8fin integration, which we expect essential round each our institutional treasury enterprise plus an amplification into our wholesale treasury enterprise.

We predict we will decide up market share in that area type of no matter the place business volumes go. So that may be a bit little bit of a type of blueprint for us round the place we expect we have now the power to proceed to select up market share each competitively plus that telephone primarily based market share.

Sara Furber — Chief Monetary Officer

After which I would say like one of many areas I simply name out particularly that we’re extraordinarily assured about simply take a crystal ball, that is the one one I need to discuss. We’ve got seen a constant observe report by way of the electronification of these markets, significantly EM swaps, which is on the core of our franchise. So we’re run ranking that enterprise at $60 million, however that market is clearly going in a single route. No matter what occurs with charges or inflation, the electronification in that area and our funding in that area, we’re extraordinarily assured.

We’ll capitalize on the place that market is headed.

Ken Worthington — Analyst

Nice. Great. Thanks a lot.

Operator

Thanks. Subsequent query comes from Alex Kramm of UBS. Your line is now open.

Alex Kramm — Analyst

Sure. Hey. Good morning, everybody. I do know it is late within the name.

Really one fast housekeeping query earlier than, I do not know for those who’ve clarified, however the 30% improve in income in October that you just talked about, is that an natural quantity? As a result of I feel ICD provides, I feel high-single-digits. So possibly make clear that, however then simply coming again to the credit score commentary, I do know a number of element on what you are doing earlier within the name however I simply need to deliver it again to the numbers for a second, as a result of if I look over the past 5, six quarters or so, sure, your market share and credit score is up a bit bit, nevertheless it appears to have all come from PT and that is clearly a bit bit extra below assault. And for those who take a look at your RFQ, your all commerce these market shares have been actually flattish. So given that you just’re signing up new institutional buyers or purchasers, I feel up nearly 10%.

Like are these folks not likely contributing or why is the take up in these conventional segments not likely occurring outdoors of PT?

Sara Furber — Chief Monetary Officer

Positive. It is Sara, I am going to take the housekeeping query. So the 30% that we highlighted in our remarks is an all in income progress charge, however even for those who strip out acquisitions, we’re 25% natural progress charges. So it is nonetheless sturdy in October.

After which possibly I am going to transition to Billy on the opposite half.

Billy Hult — Chief Govt Officer

I mentioned Alex, once we opened up the decision that I used to be in an excellent temper as a result of the Yankees gained. And that is an excellent query. It is definitely not going to place me in something apart from even an equally good temper. Look, you are asking a very good query and I made an attention-grabbing level, I feel round how we view competitors within the area.

What I might say to you in a really easy approach is that the form of inroads that we make are by no means completely form of straight strains. So I do not need you to form of overread one month versus the subsequent month after which form of kind a idea on that. I feel the observe report round form of innovation is clearly fairly good. And I feel the way in which that we’re in a position to form of current into the market these completely different protocols, I feel works interval.

We’ve got a really sturdy view that the credit score market needs a extra balanced setting. I feel we have finished an excellent job of bringing the banks again into the equation. Clearly, we have differentiated ourselves alongside the way in which by means of portfolio buying and selling, by means of internet recognizing and hedging. And I feel we will have additional room to develop and reach a few of these form of conventional protocols that you just talked about.

If I have been going to type of inform on myself for a second, possibly what I might say is, we’re all the time searching for type of just like the issues that are not working in addition to that we wish them to work. I imply, all the time as an organization, I feel that is a very necessary ethos that form of Sara and I form of reside by. Convey me your issues, what’s not working. And so persevering with to construct out our responder community within the all-to-all market will stay an enormous focus for us as an organization.

And I feel we’re coming now from a place of energy, the place we really feel fairly comfy that we will in a position to put the useful resource into the market to permit us to proceed to succeed at a excessive charge. We welcome competitors. Clearly, we expect that is going to proceed. And I feel the purchase facet shopper continues to profit from the way in which that we’re placing useful resource into the market and stay up for how issues will proceed to develop and be ok with it.

Nice questions as all the time and thanks.

Alex Kramm — Analyst

Truthful sufficient. Thanks very a lot for the extra shade.

Operator

Thanks. We’ve got run over the 60 minutes. So it will conclude the question-and-answer session. I might now like to show it again to Billy Hult, CEO, for closing remarks.

Billy Hult — Chief Govt Officer

Nice. Thanks all very a lot for becoming a member of us this morning. Nice questions from an ideal group. As all the time, in case you have any follow-up questions, be at liberty to achieve out to Ashley, Sameer and the group.

Go, Yankees. Have an ideal day, everybody. Thanks.

Operator

[Operator signoff]

Length: 0 minutes

Name individuals:

Ashley Serrao — Head of Treasury, FP&A, and Investor Relations

Billy Hult — Chief Govt Officer

Sara Furber — Chief Monetary Officer

Christopher Allen — Analyst

Invoice Katz — TD Cowen — Analyst

Richard Fellinger — Autonomous Analysis — Analyst

Alex Blostein — Analyst

Michael Cyprys — Analyst

Mike Cyprys — Analyst

Dan Fannon — Analyst

Kyle Voigt — Analyst

Patrick Moley — Analyst

Ben Budish — Analyst

Ken Worthington — Analyst

Alex Kramm — Analyst

Extra TW evaluation

All earnings name transcripts