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Mar 31, 2024

MarketAxess Q1 2024 Earnings Report

MarketAxess's financial performance in Q1 2024 reflected revenue growth, driven by strong performance in U.S. high-grade and record revenues in emerging markets, Eurobonds, and municipal bonds, which was partially offset by a decrease in U.S. high-yield trading activity.

Key Takeaways

MarketAxess reported a 3.5% increase in total revenues to $210.3 million in Q1 2024. Diluted EPS was $1.92 on a net income of $72.6 million. The company saw strong growth in U.S. high-grade commission revenue and record revenues from emerging markets, Eurobonds and municipal bonds.

Total revenues increased by 3.5% to $210.3 million, which includes Pragma revenues of $7.5 million.

Diluted earnings per share (EPS) reached $1.92, with a net income of $72.6 million.

Information services revenue increased by 7.9% to $11.9 million, and post-trade revenue increased by 7.5% to $10.7 million.

International products saw a 14.8% increase in average daily volume (ADV), and portfolio trading volume increased by 40.6%.

Total Revenue
$210M
Previous year: $203M
+3.5%
EPS
$1.92
Previous year: $1.96
-2.0%
Total Credit Trading Vol.
$918M
Previous year: $13.7B
-93.3%
Total Rates Trading Vol.
$1.08B
Previous year: $24.5B
-95.6%
US High-Grade Volume
$456M
Gross Profit
$171M
Previous year: $151M
+13.7%
Cash and Equivalents
$377M
Previous year: $333M
+13.2%
Free Cash Flow
-$6.15M
Previous year: $7.31M
-184.1%
Total Assets
$1.93B
Previous year: $1.63B
+18.3%

MarketAxess

MarketAxess

MarketAxess Revenue by Segment

Forward Guidance

MarketAxess reconfirmed its full-year 2024 guidance for revenue from Pragma, expenses, effective tax rate, and capital expenditures. Operating expenses for the full year are tracking to the low-end of the previously stated guidance range.

Revenue & Expenses

Visualization of income flow from segment revenue to net income