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		Successor		Predecessor		Predecessor
	Three Months Ended		October 1, 2018 to		January 1, 2018 to		Year Ended
	March 31,		December 31,		September 30,		December 31,
EPS: Pre-IPO net income attributable to Tradeweb Markets LLC(1)	2019		2018		2018		2017
		(in thousands, except share and per share amounts)
Numerator:
Pre-IPO net income attributable to Tradeweb Markets LLC	$	42,352	$	29,307	$	130,160	$	83,648

Denominator:
Weighted average LLC Interests outstanding - Basic		222,222,197		222,221,628		215,365,920		212,568,635
Dilutive effect of equity-settled PRSUs		1,098,260		22,223		—		—
Weighted average LLC Interests outstanding - Diluted		223,320,457		222,243,851		215,365,920		212,568,635

Earnings per share - Basic	$	0.19	$	0.13	$	0.60	$	0.39
Earnings per share - Diluted	$	0.19	$	0.13	$	0.60	$	0.39

(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
	Nine Months Ended
EPS: Post-IPO net income attributable to Tradeweb Markets Inc.	December 31,
(in thousands, except share and per share amounts)	2019
Numerator:
Post-IPO net income attributable to Tradeweb Markets Inc.	$	83,769

Denominator:
Weighted average shares of Class A and Class B common stock outstanding - Basic		148,013,274
Dilutive effect of equity-settled PRSUs		2,464,137
Dilutive effect of options		6,062,835
Weighted average shares of Class A and Class B common stock outstanding - Diluted		156,540,246

Earnings per share - Basic	$	0.57
Earnings per share - Diluted	$	0.54

For the year ended December 31, 2019, there were approximately 128,125 average shares underlying equity-settled PRSUs and options that were anti-dilutive. As a result, these shares, which are still outstanding, were excluded from the computation of diluted earnings per share. For the 2018 Predecessor Period, there were approximately 5,444,566 average shares 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 59,182,155 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 included in the calculation of basic earnings per share and are not participating securities for purposes of the computation of diluted earnings per share.