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Quarterly Results of Operations (Unaudited) | 12 Months Ended
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Dec. 31, 2019
Quarterly Results of Operations (Unaudited) |
Quarterly Results of Operations (Unaudited) | 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.

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