Marketaxess Holding Inc

Latest Results (20.12.2024):

Revenue Growth

In the third quarter of 2024, MarketAxess Holdings Inc. reported a 20% increase in total revenues, reaching $206.7 million. This growth was driven by strong market volumes and included $7.7 million from Pragma revenue, as well as a $0.9 million increase due to foreign currency fluctuations. The company also saw a 24% growth in U.S. high-grade commission revenue and a 20% increase in emerging markets and Eurobonds commission revenue.

Earnings and Profit

MarketAxess Holdings Inc. achieved a 30% increase in diluted earnings per share (EPS) to $1.90, with net income rising to $71.5 million for the third quarter of 2024. The company's net income margin improved to 34.6%, reflecting a strong financial performance compared to the previous year. EBITDA also saw a significant increase, reaching $105 million with a margin of 50.8%.

Trading Volume and Market Share

The third quarter of 2024 saw MarketAxess Holdings Inc. achieve record trading volumes, with total credit average daily volume (ADV) increasing by 27% to $14.1 billion. The company also reported a record portfolio trading ADV of $1.1 billion, up 163% from the previous year. Market share gains were noted in U.S. credit portfolio trading, with an estimated market share of 19.5% in U.S. high-grade trading.

Services Revenue

MarketAxess Holdings Inc. reported a 21% increase in services revenue, totaling $26.3 million for the third quarter of 2024. This growth included contributions from information services, post-trade services, and technology services, with Pragma revenue accounting for $2.8 million. The increase in services revenue was driven by net new data contract revenue and the impact of foreign currency fluctuations.

Expenses and Capital

Total expenses for MarketAxess Holdings Inc. in the third quarter of 2024 were $119.7 million, up 14% from the previous year. This included Pragma operating expenses of $8.2 million and a $0.7 million increase due to foreign currency fluctuations. The company ended the quarter with $602.5 million in cash, cash equivalents, corporate bond investments, and U.S. Treasury investments, reflecting a strong capital position.