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Jun 30, 2023

MarketAxess Q2 2023 Earnings Report

MarketAxess's performance reflected the impact of low credit spread volatility, with strategic advancements in key market segments and technology.

Key Takeaways

MarketAxess reported a slight decrease in total revenues but demonstrated growth in key areas such as emerging markets and Eurobonds. The company continued to invest in technology and expand its client network, driving automation and data solutions. Despite lower credit spread volatility, MarketAxess achieved record market share in several segments and maintained a strong financial position.

Total revenues reached $179.8 million, a 1.3% decrease year-over-year, influenced by low credit spread volatility.

Diluted EPS stood at $1.59, derived from a net income of $59.9 million, with foreign currency and investment losses impacting results.

Record market share was achieved in emerging markets, alongside a 10.7% increase in emerging markets local markets trading volume.

Information services revenue hit a record $11.7 million, marking a 24.0% increase, driven by the adoption of Composite+â„¢ algorithmic pricing engine.

Total Revenue
$180M
Previous year: $182M
-1.3%
EPS
$1.59
Previous year: $1.78
-10.7%
Total Credit Trading Vol.
$754B
Previous year: $759B
-0.6%
Total Rates Trading Vol.
$967B
Previous year: $1.43T
-32.5%
US High-Grade Volume
$41.3B
Previous year: $360B
-88.5%
Gross Profit
$131M
Previous year: $137M
-3.9%
Cash and Equivalents
$396M
Previous year: $291M
+36.5%
Free Cash Flow
$104M
Previous year: $92.4M
+13.0%
Total Assets
$1.62B
Previous year: $1.57B
+3.3%

MarketAxess

MarketAxess

MarketAxess Revenue by Segment

Forward Guidance

The Company is reconfirming its previously stated full-year 2023 guidance for operating expenses, effective tax rate and capital expenditures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income