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Jun 30, 2022

MarketAxess Q2 2022 Earnings Report

Reported record levels of market share and strong growth in trading volume.

Key Takeaways

MarketAxess reported a 3% increase in revenues to $182.2 million, driven by record levels of estimated market share and strong growth in trading volume. Diluted EPS was $1.78, and total trading average daily volume reached $35.4 billion, up 43%. The company saw record estimated market share across various sectors, including U.S. high-yield, emerging markets, Eurobonds, and U.S. Treasuries.

Achieved record levels of estimated market share, leading to strong growth in trading volume.

Composite corporate bond estimated market share reached a record 20.2%, up from 17.8%.

Combined U.S. high-grade and U.S. high-yield market share hit a record 20.9%, up from 19.1% in the prior year.

Total trading average daily volume increased by 43% to $35.4 billion, driven by U.S. Treasury and total credit ADV growth.

Total Revenue
$182M
Previous year: $176M
+3.3%
EPS
$1.78
Previous year: $1.77
+0.6%
Total Credit Trading Vol.
$759B
Total Rates Trading Vol.
$1.43T
US High-Grade Volume
$360B
Gross Profit
$137M
Previous year: $136M
+0.9%
Cash and Equivalents
$291M
Previous year: $414M
-29.8%
Free Cash Flow
$92.4M
Previous year: $91.2M
+1.3%
Total Assets
$1.57B
Previous year: $1.54B
+1.9%

MarketAxess

MarketAxess

MarketAxess Revenue by Segment

Forward Guidance

The Company is re-confirming its full year 2022 expense guidance range of $385.0 million to $415.0 million and capital expenditure guidance range of $58.0 million to $62.0 million. The Company expects the full year effective tax rate to be at the upper-end of the previously stated range of 24.0% to 26.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income