What drove TW's positive earnings surprise in Q4?

Tradeweb Markets Inc. (TW) reported a positive earnings surprise in Q4 2024, with adjusted earnings per share (EPS) of $0.76, surpassing the consensus estimate of $0.75. The company's revenue for the quarter was $463.3 million, which was slightly below the expected $464.82 million. Despite the slight miss, the company's strong revenue growth across its business segments contributed to the positive earnings surprise. 1. **Rates Revenue Growth**: Tradeweb's rates revenue increased by 25.3% to $240.2 million. This growth was driven by significant year-over-year increases in average daily volume (ADV) for U.S. government bonds and European government bonds. The company's performance in rates was further highlighted by a 30.0% year-over-year rise in ADV for U.S. government bonds and a 27.6% increase for European government bonds. 2. **Money Markets Revenue Surge**: The money markets segment experienced a substantial rise of 166.5% in revenue, reaching $44.3 million. This significant increase was attributed to the acquisition of Institutional Customer Division (ICD), which enhanced Tradeweb's offerings in the money markets segment. 3. **Credit Revenue Increase**: Tradeweb's credit revenue grew by 8.9% to $113.6 million. The company's performance in credit was supported by a 26.6% year-over-year increase in fully electronic U.S. credit ADV and a 14.0% rise in European credit ADV. In summary, Tradeweb's positive earnings surprise in Q4 2024 was driven by strong revenue growth across its business segments, particularly in rates, money markets, and credit. The company's strategic acquisitions and market share gains in key asset classes contributed to its robust financial performance.