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Sep 30, 2023

MarketAxess Q3 2023 Earnings Report

MarketAxess's performance reflected stability in revenues and strategic investments amidst low credit spread volatility.

Key Takeaways

MarketAxess reported total revenues of $172.3 million, consistent with the prior year, while diluted EPS reached $1.46 on a net income of $54.9 million, with record information services revenue of $11.8 million, marking a 21.5% increase.

Total revenues remained stable at $172.3 million, matching the previous year's figure.

Diluted EPS stood at $1.46, derived from a net income of $54.9 million.

Information services revenue reached a record $11.8 million, demonstrating a 21.5% growth.

International products average daily volume increased by 11.3%.

Total Revenue
$172M
Previous year: $172M
+0.1%
EPS
$1.46
Previous year: $1.58
-7.6%
Total Credit Trading Vol.
$704B
Previous year: $702M
+100178.8%
Total Rates Trading Vol.
$1.14T
Previous year: $1.31B
+87114.5%
US High-Grade Volume
$326B
Previous year: $328M
+99408.4%
Gross Profit
$123M
Previous year: $127M
-3.1%
Cash and Equivalents
$420M
Previous year: $319M
+31.9%
Free Cash Flow
$73.2M
Previous year: $81.1M
-9.8%
Total Assets
$1.74B
Previous year: $1.56B
+11.4%

MarketAxess

MarketAxess

MarketAxess Revenue by Segment

Forward Guidance

MarketAxess refined its full-year 2023 expense guidance range to $432.0 million to $438.0 million, which includes an estimated $12.5 million of M&A-related expenses, and reconfirmed its full-year 2023 capital expenditures guidance range of $52.0 million to $58.0 million. The company now expects the full-year 2023 effective tax rate to be approximately 23.5%.

Positive Outlook

  • Company is reconfirming its full-year 2023 capital expenditures guidance range of $52.0 million to $58.0 million.
  • Company expects the full-year 2023 effective tax rate to be approximately 23.5%.
  • Guidance includes an estimated $12.5 million of M&A related expenses.
  • Guidance includes $8.5 million of direct operating expenses related to Pragma.
  • Guidance includes $4.0 million of non-recurring M&A expenses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income