21. Quarterly Results of Operations (Unaudited)

The following tables set forth certain unaudited financial data for the Company’s quarterly operations in 2019 and 2018. The following information has been prepared on the same basis as the annual information presented elsewhere in this report and, in the opinion of management, includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the information for the quarterly periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.


	Tradeweb Markets Inc. (post-IPO)						Tradeweb Markets LLC (pre-IPO)
	Successor		Successor		Successor		Successor		Successor		Predecessor		Predecessor		Predecessor
	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
	2019		2019		2019		2019		2018		2018		2018		2018
Revenues	(in thousands, except share and per share data)
Transaction fees	$	104,245	$	112,746	$	103,952	$	102,640	$	97,130	$	92,582	$	91,030	$	90,139
Subscription fees		34,333		35,387		34,566		34,445		33,052		33,157		37,647		36,326
Commissions		41,165		37,590		36,413		34,197		32,840		24,394		27,553		27,883
Refinitiv market data fees		15,383		13,251		13,385		13,616		13,467		12,533		12,081		12,237
Other		2,182		2,007		2,169		1,894		2,148		2,587		2,704		2,918
Gross revenue		197,308		200,981		190,485		186,792		178,637		165,253		171,015		169,503
Contingent consideration		—		—		—		—		—		2,537		(19,297)		(10,070)
Net revenue		197,308		200,981		190,485		186,792		178,637		167,790		151,718		159,433
Expenses
Employee compensation and benefits		76,545		79,644		95,995		77,273		80,436		69,076		68,407		71,570
Depreciation and amortization		36,402		35,133		34,292		33,503		33,020		16,362		16,178		16,268
Technology and communications		10,199		9,527		9,519		10,040		9,907		9,112		9,023		8,463
General and administrative		8,999		7,507		9,365		9,089		11,837		9,386		7,153		6,517
Professional fees		7,048		7,272		6,738		6,971		8,194		7,546		7,276		5,538
Occupancy		3,786		3,640		3,621		3,639		3,308		3,491		3,519		3,722
Total expenses		142,979		142,723		159,530		140,515		146,702		114,973		111,556		112,078
Operating income		54,329		58,258		30,955		46,277		31,935		52,817		40,162		47,355
Tax receivable agreement liability adjustment		33,134		—		—		—		—		—		—		—
Net interest income		704		636		175		858		787		673		582		471
Income before taxes		88,167		58,894		31,130		47,135		32,722		53,490		40,744		47,826
Provision for income taxes		(30,889)		(10,316)		(6,314)		(4,783)		(3,415)		(7,535)		(1,847)		(2,518)
Net income	$	57,278	$	48,578	$	24,816	$	42,352	$	29,307	$	45,955	$	38,897	$	45,308
Net income attributable to non-controlling interests	$	15,949	$	18,966	$	11,988
Net income attributable to Tradeweb Markets Inc.	$	41,329	$	29,612	$	12,828
Earnings per share (1)
Basic	$	0.26	$	0.21	$	0.09	$	0.19	$	0.13	$	0.21	$	0.18	$	0.21
Diluted	$	0.25	$	0.20	$	0.09	$	0.19	$	0.13	$	0.21	$	0.18	$	0.21
Weighted average shares outstanding
Basic		157,950,550		142,935,206		142,933,192		222,222,197		222,221,628		219,165,997		213,435,314		213,435,321
Diluted		167,323,520		151,362,643		150,847,183		223,320,457		222,243,851		219,165,997		213,435,314		213,435,321

(1)

In April 2019, the Company completed the Reorganization Transactions and the IPO, which, among other things, resulted in Tradeweb Markets Inc. becoming the successor of Tradeweb Markets LLC for financial reporting purposes. As a result, earnings per share information for the pre-IPO period is not comparable to the earnings per share information for the post-IPO period. See Note 18 — Earnings Per Share for additional information.

Earnings per share for quarterly periods are based on the weighted average common shares outstanding in individual quarters; thus, the sum of earnings per share of the quarters may not equal the amounts reported for the full year.