18. Earnings Per Share

In April 2019, the Company completed the Reorganization Transactions and the IPO, which, among other things, resulted in the Corporation becoming the successor of TWM LLC for financial reporting purposes. As a result, earnings per share information for the pre-IPO period is not comparable to earnings per share information for the post-IPO period. Thus, earnings per share information is being presented separately for the pre-IPO and post-IPO periods.

The following table summarizes the basic and diluted earnings per share calculations for Tradeweb Markets LLC (pre-IPO period):


	Successor		Predecessor
	Nine Months		Three Months		Nine Months
	Ended		Ended		Ended
	September 30,		September 30,		September 30,
	2019		2018		2018
EPS: Pre-IPO net income attributable to Tradeweb Markets LLC(1)	(in thousands, except share and per share amounts)
Numerator:
Pre-IPO net income attributable to Tradeweb Markets LLC	$	42,352	$	45,955	$	130,160

Denominator:
Weighted average LLC Interests outstanding - Basic		222,222,197		219,165,997		215,365,920
Dilutive effect of equity-settled PRSUs		1,098,260		—		—
Weighted average LLC Interests outstanding - Diluted		223,320,457		219,165,997		215,365,920

Earnings per share - Basic	$	0.19	$	0.21	$	0.60
Earnings per share - Diluted	$	0.19	$	0.21	$	0.60

(1)

Earnings per share and weighted average shares outstanding for the pre-IPO periods have been computed to give effect to the Reorganization Transactions, including the amendment and restatement of the TWM LLC Agreement to, among other things, (i) provide for LLC Interests and (ii) exchange all of the then existing membership interests in TWM LLC for LLC interests.

The following table summarizes the basic and diluted earnings per share calculations for Tradeweb Markets Inc. (post-IPO period):


	Successor
	Three Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	2019		2019
EPS: Post-IPO net income attributable to Tradeweb Markets Inc.	(in thousands, except share and per share amounts)
Numerator:
Post-IPO net income attributable to Tradeweb Markets Inc.	$	29,612	$	42,440

Denominator:
Weighted average shares of Class A and Class B common stock outstanding - Basic		142,935,206		142,934,221
Dilutive effect of equity-settled PRSUs		2,492,381		2,355,938
Dilutive effect of options		5,935,056		5,868,601
Weighted average shares of Class A and Class B common stock outstanding - Diluted		151,362,643		151,158,760

Earnings per share - Basic	$	0.21	$	0.30
Earnings per share - Diluted	$	0.20	$	0.28

For the three and nine months ended September 30, 2019, there were approximately 247,491 and 126,667 shares, respectively, underlying equity-settled PRSUs and options that were anti-dilutive and thus excluded from the computation of diluted earnings per share. For the three and nine months ended September 30, 2018, there were approximately 2,798,674 and 5,444,566 shares, respectively, related to the contingent consideration payable that were anti-dilutive and thus excluded from the computation of diluted earnings per share.

LLC Interests held by the Continuing LLC Owners are redeemable in accordance with the TWM LLC Agreement, at the election of such holders, for shares of Class A or Class B common stock of Tradeweb Markets Inc. After evaluating the potential dilutive effect under the if-converted method, the 79,289,005 LLC Interests for the assumed exchange of non-controlling interests were determined to be anti-dilutive and thus were excluded from the computation of diluted earnings per share for the post-IPO periods.

Shares of Class C and Class D common stock do not have economic rights in Tradeweb Markets Inc. and, therefore, are not participating securities for purposes of the computation of earnings per share.