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Sep 30, 2024

MarketAxess Q3 2024 Earnings Report

MarketAxess demonstrated strong financial performance, driven by revenue growth and increased trading volumes.

Key Takeaways

MarketAxess reported a 20% increase in total revenues to $206.7 million for Q3 2024, driven by strong growth in total credit average daily volume (ADV) and record portfolio trading ADV. The company's diluted earnings per share increased by 30% to $1.90, and net income rose to $71.5 million.

Total revenues increased by 20% to $206.7 million.

Diluted earnings per share increased by 30% to $1.90.

Total credit ADV increased by 27% year-over-year.

Record portfolio trading ADV of $1.1 billion was achieved.

Total Revenue
$208M
Previous year: $172M
+20.7%
EPS
$1.9
Previous year: $1.46
+30.1%
Total Credit Trading Vol.
$14.1B
Previous year: $704B
-98.0%
Total Rates Trading Vol.
$26.4B
Previous year: $1.14T
-97.7%
US High-Grade Volume
$7.03B
Previous year: $326B
-97.8%
Gross Profit
$126M
Previous year: $123M
+2.0%
Cash and Equivalents
$446M
Previous year: $420M
+6.1%
Free Cash Flow
$92.8M
Previous year: $73.2M
+26.8%
Total Assets
$1.83B
Previous year: $1.74B
+5.5%

MarketAxess

MarketAxess

MarketAxess Revenue by Segment

Forward Guidance

MarketAxess is well-positioned for continued growth, focusing on expanding its international client base, enhancing trading solutions, and leveraging a constructive market environment.

Positive Outlook

  • Initial roll-out of X-Pro to international client base is underway.
  • Market share gains in U.S. credit portfolio trading compared to Q2 2024.
  • Record 74% of portfolio trading volume was executed on X-Pro in September.
  • Launch of targeted block trading solutions to minimize market impact.
  • Enhancing dealer liquidity solutions by extending automation services.

Challenges Ahead

  • No specific negatives were found in the provided document.

Revenue & Expenses

Visualization of income flow from segment revenue to net income