Revenue Growth of 10% Driven by Growth in
Total Credit ADV and Pragma Revenues
Second Strongest Quarter for Total Credit
ADV with Strong Growth Across Most Products
Record Eurobonds ADV, Portfolio Trading
Volume and Muni Bond Estimated Market Share
Board Increases Share Repurchase
Authorization to $250 Million
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a
leading electronic trading platform for fixed-income securities,
today announced financial results for the second quarter ended June
30, 2024.
2Q24 select financial and operational highlights*
- Total revenues of $197.7 million, up 10%,
includes Pragma revenues of $7.9 million and an increase of
approximately $0.3 million from the impact of foreign
currency fluctuations.
- Strong geographic and product/protocol diversification with
16% growth across emerging markets, Eurobonds and municipals
commission revenue helping to offset a decrease in U.S. high-yield
trading activity, driven by lower credit spread volatility.
- Record portfolio trading volume of $55.0
billion.1
- 22% increase in services revenue (combined information,
post-trade and technology services revenue) to $26.0
million, includes record information services revenue
and an increase of approximately $2.9 million from Pragma
revenues.
- Total expenses of $116.3 million, up 12%,
includes Pragma operating expenses of $7.8 million and an
increase of approximately $0.2 million from the impact of
foreign currency fluctuations.
- Diluted earnings per share (“EPS”) of $1.72 on net
income of $64.9 million, compared to EPS of
$1.59 on net income of $59.9 million. The prior year
quarter included a negative $0.04 per diluted share impact
from foreign currency transaction losses and unrealized losses on
investments.
- Record 2,119 (+2%) active client firms, 1,626
(+1%) active U.S. credit client firms, record 1,076
(+2%) international active client firms and 1,167 (+4%)
active client firms trading three or more products.
- Record automation suite trade count (+37%) and
record active client firms (+70%); automation suite
trading volume up 21% and dealer algorithmic responses up
38%.
- In August 2024, the Board of Directors authorized a new share
repurchase program for up to $200.0 million of the Company’s
common stock. This program is in addition to the $50.0
million currently remaining under the Company’s existing
program for a current aggregate outstanding authorization of
$250.0 million.
*All comparisons versus 2Q23 unless otherwise noted.
Chris Concannon, CEO of MarketAxess, commented:
“In the second quarter, we continued to execute our strategy and
delivered solid financial results and continued expense and capital
discipline. Our strong free cash flow generation model gives us the
flexibility to invest for growth and return capital to investors.
We repurchased $50 million in shares year-to-date, and our Board
approved a new share repurchase authorization of $200 million.
The international roll-out of X-Pro and the launch of the next
phase of our high-touch strategy is expected to occur late in the
third quarter and will include initial elements of AI dealer select
functionality. Our announcement yesterday to connect our liquidity
pools with ICE Bonds to drive greater efficiency and liquidity in
the Municipal and corporate bond markets is a great example of how
we are leveraging connectivity to drive future growth.
In summary, we made significant progress in executing our
strategy in the second quarter, and we believe the strategic
priorities we have established will drive increased market share
and higher levels of revenue growth for shareholders in the
future.”
Table 1: 2Q24 select financial results
$ in millions, except per share data(unaudited)
Revenues
Operating Income
Net Income
Diluted EPS
Net Income Margin (%)
EBITDA4
EBITDA Margin (%)4
2Q24
$198
$81
$65
$1.72
32.9%
$99
50.0%
2Q23
$180
$76
$60
$1.59
33.3%
$91
50.4%
% Change
10%
7%
8%
8%
(40) bps
9%
(40) bps
YTD 2024
$408
$174
$138
$3.64
33.7%
$208
51.0%
YTD 2023
$383
$171
$133
$3.55
34.9%
$201
52.5%
% Change
7%
2%
3%
3%
(120) bps
3%
(150) bps
Table 1A: 2Q24 trading volume (ADV)
CREDIT
RATES
$ in millions(unaudited)
US/UK Trading Days5
Total ADV
Total Credit
High-Grade
High-Yield
Emerging Markets
Eurobonds
Municipal Bonds
Total Rates
US Govt. Bonds
Agcy./Other Govt.
Bonds
2Q24
63/61
$34,169
$13,743
$6,436
$1,337
$3,337
$2,103
$522
$20,426
$19,634
$792
2Q23
62/60
$27,828
$12,226
$5,697
$1,474
$2,714
$1,942
$389
$15,602
$15,163
$439
% Change
23%
12%
13%
(9%)
23%
8%
34%
31%
29%
80%
Table 1B: 2Q24 estimated market share
CREDIT
RATES
(unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Municipals1
US Govt. Bonds1
2Q24
18.7%
13.5%
17.6%
7.4%
2.3%
2Q23
20.7%
16.5%
19.7%
5.4%
2.1%
Bps Change
(200) bps
(300) bps
(210) bps
+200 bps
+20 bps
2Q24 overview of results
Commission revenue and trading
volume
Credit
Credit Commission Revenue
- Total credit commission revenue of $160.8 million
(including $33.2 million in fixed-distribution fees)
increased $6.8 million, or 4%, compared to
$154.0 million (including $35.3 million in
fixed-distribution fees) in the prior year. The increase in total
credit commission revenue was driven principally by higher emerging
markets, U.S. high-grade and Eurobonds commission revenue. Strong
growth in these products was partially offset by lower U.S.
high-yield commission revenue on lower credit spread volatility.
The decline in variable transaction fees per million (“FPM”) to
$148.16 from $157.42 in the prior year was mainly due
to product and protocol mix-shift, principally lower levels of U.S.
high-yield activity and increased portfolio trading. The decrease
in fixed-distribution fees was principally driven by the
consolidation of two global dealers and migrations to variable fee
plans, partially offset by the addition of new dealer fixed fee
plans.
Credit Trading Volumes
- Strong growth in total credit average daily volume (“ADV”) to
$13.7 billion, up 12%. Record $55.0 billion in
total portfolio trading volume, up 143% compared to the
prior year, and up 24% from 1Q24.1
- 34% Open Trading share2 of total credit trading volume,
in line with the prior year. The Company delivered estimated
price improvement3 via Open Trading of approximately $110
million in the quarter.
U.S. Credit
- U.S. high-grade ADV of $6.4 billion, up
13% on a 25% increase in estimated market ADV.
Estimated market share was 18.7% (19.2% including
single-dealer portfolio trades),6 down from 20.7%
(20.8% including single-dealer portfolio trades).6
- U.S. high-yield ADV of $1.3 billion, down 9%,
with estimated market share of 13.5% (13.8% including
single-dealer portfolio trades),6 down from 16.5%
(16.6% including single-dealer portfolio trades).6 U.S.
high-yield estimated market ADV increased 11%. We believe
the decrease in U.S. high-yield estimated market share
year-over-year was driven, in part, by lower levels of credit
spread volatility and a greater focus on the new issue
calendar by our long-only client segment.
- Lower levels of credit spread volatility drove an estimated
37% decrease in ETF market maker client activity on the
platform.
- U.S. high-yield new issuance was $77.9 billion, up
44% from the prior year.
Other credit
- Emerging markets ADV of $3.3 billion, up 23%,
with strong regional contribution across the LATAM, EMEA and
APAC regions. The increase was driven by a 26%
increase in hard currency ADV, and a 17% increase in local
markets ADV.
- Record $4.7 billion in emerging markets portfolio
trading volume.
- Record Eurobonds ADV of $2.1 billion, up
8%.
- Municipal bond ADV of $522 million, up 34%, with
estimated market ADV down 2%. Record estimated market
share of 7.4%, up from 5.4% in the prior year.1
Strategic priority related protocols &
workflow tools
- A record 56% of our portfolio trading volume was
executed on X-Pro.
- Dealer RFQ ADV of $1.2 billion across all credit
products increased 27%.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved ADV of $135 million, up 22% from the prior
year.
Rates
- Total rates commission revenue of $5.8 million
increased $1.2 million, or 25%. A 31% increase
in total rates ADV to $20.4 billion was partially offset by
a 5% decrease in FPM to $4.45 due to mix, compared to
$4.70 in the prior year.
Other
- Total other commission revenue was $5.1 million,
which consists of Pragma commission revenue.
Services revenue
Information services
- Information services revenue of $12.5 million
increased $0.9 million, or 8%, compared to the
prior year. The increase in revenue was principally driven by net
new data contract revenue.
Post-trade services
- Post-trade services revenue of $10.4 million
increased $1.0 million, or 10%, compared to the prior
year mainly due to the impact of price increases and net new
contract revenue.
Technology services
- Total technology services revenue of $3.0
million, up from $0.2 million in the prior year. The
current quarter includes $2.9 million of Pragma
revenue.
Expenses
- Total expenses of $116.3 million, up 12%,
includes Pragma operating expenses of $7.8 million and an
increase of $0.2 million from the impact of foreign currency
fluctuations.
Non-operating
- Other income (expense): Other income was $5.0
million, up from $3.2 million in the prior
year. The current quarter included interest income of $6.4
million driven by higher interest rates, partially offset by
a $1.0 million net foreign currency transaction loss.
The prior year period included a $1.3 million net foreign
currency transaction loss and a $0.8 million unrealized loss
on U.S. Treasury investments, which had a negative $0.04 per
diluted share impact in the quarter.
- Tax rate: The effective tax rate was 24.8%, up
from 24.2% in the prior year.
Capital
- The Company had $558.8 million in cash, cash
equivalents, corporate bond investments and U.S. Treasury
investments as of June 30, 2024. There were no outstanding
borrowings under the Company’s credit facility.
- In August 2024, the Board of Directors authorized a new share
repurchase program for up to $200.0 million of the Company’s
common stock.
- Year-to-date through July 2024, a total of 242,890
shares were repurchased at a cost of $50.0 million,
including 164,411 shares repurchased during the second
quarter at a cost of $33.5 million. As of August 6,
2024, an aggregate of $250.0 million remained under the
current authorizations by the Company’s Board of Directors.
- The Board declared a quarterly cash dividend of $0.74
per share, payable on September 4, 2024 to
stockholders of record as of the close of business on August 21,
2024.
Other
- Employee headcount was 864 as of June 30, 2024,
down from 881 as of December 31, 2023, but up from
803 as of June 30, 2023.
1
See “General Notes Regarding the Data
Presented” below.
2
Open Trading share of total credit trading
volume is derived by taking total Open Trading volume across all
credit products where Open Trading is offered and dividing by total
credit trading volume across all credit products where Open Trading
is offered.
3
Estimated price improvement consists of
estimated liquidity taker price improvement (defined as the
difference between the winning price and the best disclosed dealer
cover price) and estimated liquidity provider price improvement
(defined as the difference between the winning price and then
current Composite+ bid or offer level, offer if the provider is
buying, bid if provider is selling) at the time of the inquiry.
4
EBITDA and EBITDA margin are non-GAAP
financial measures. Refer to “Non-GAAP financial measures and other
items” for a discussion of these non-GAAP financial measures.
5
The number of U.S. trading days is based
on the SIFMA holiday recommendation calendar and the number of U.K.
trading days is based primarily on the U.K. bank holiday
schedule.
6
The Company is highlighting the impact of
single-dealer portfolio trading volume on U.S. high-grade and U.S.
high-yield trading volume and estimated market share, but will
continue to exclude single-dealer portfolio trading activity from
each product’s aggregated trading volume and estimated market share
and the total credit FPM calculation.
Non-GAAP financial measures and other items
To supplement the Company’s unaudited financial statements
presented in accordance with generally accepted accounting
principles (“GAAP”), the Company uses certain non-GAAP measures of
financial performance, including earnings before interest, taxes,
depreciation and amortization (“EBITDA”), EBITDA margin and free
cash flow. We define EBITDA margin as EBITDA divided by revenues.
We define free cash flow as net cash provided by/(used in)
operating activities excluding the net change in trading
investments and net change in securities failed-to-deliver and
securities failed-to-receive from broker-dealers, clearing
organizations and customers, less expenditures for furniture,
equipment and leasehold improvements and capitalized software
development costs. The Company believes that these non-GAAP
financial measures, when taken into consideration with the
corresponding GAAP financial measures, provide additional
information regarding the Company’s operating results because they
assist both investors and management in analyzing and evaluating
the performance of our business. See the attached schedule for a
reconciliation of GAAP net income to EBITDA, GAAP net income margin
to EBITDA margin and GAAP net cash provided by/(used in) operating
activities to free cash flow.
Please refer to Tables 6 & 7 for a reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
measures.
Webcast and conference call information
Chris Concannon, Chief Executive Officer, Richard Schiffman,
Global Head of Trading Solutions, and Ilene Fiszel Bieler, Chief
Financial Officer will host a conference call to discuss the
Company’s financial results and outlook on Tuesday, August 6, 2024
at 10:00 a.m. ET. To access the conference call, please dial
646-307-1963 (U.S./International) and use the ID 1832176. The
Company will also host a live audio Webcast of the conference call
on the Investor Relations section of the Company's website at
http://investor.marketaxess.com. The Webcast will be archived on
http://investor.marketaxess.com for 90 days following the
announcement.
General Notes Regarding the Data Presented
Reported MarketAxess volume in all product categories includes
only fully electronic trading volume. MarketAxess trading volumes
and the Financial Industry Regulatory Authority (“FINRA”) Trade
Reporting and Compliance Engine (“TRACE”) reported volumes are
available on the Company’s website at
investor.marketaxess.com/volume.
Due to variances in how portfolio trading market participants
utilized the portfolio trading TRACE “flag,” the Company previously
used its own internal methodology for calculating portfolio trading
as an estimated percentage of TRACE volume and the Company’s
estimated market share. The Company is reviewing recent
improvements in the TRACE data, but it now believes that the
portfolio trading TRACE “flag” more accurately reflects the true
size of the portfolio trading market. As such, at this time, the
Company is not presenting portfolio trading as an estimated
percentage of TRACE volume or the Company’s portfolio trading
estimated market share for the second quarter of 2024.
In addition, for periods beginning with January 2024, the
Company has made changes to the market volume data used to
calculate estimated market share for Municipal and U.S. Government
Bonds. For Municipal Bonds, the Company previously used estimates,
derived from data issued by the Municipal Securities Rule Making
Board (“MSRB”), including estimates for new issuance, commercial
paper and variable-rate trading activity, and excluded these
volumes from the estimated market volume data. While the Company
still uses estimates, the new methodology for identifying and
excluding these volumes from the market volume data is now based on
MSRB “flags” to identify new issuance, commercial paper, and
variable-rate volumes. For U.S. Government Bonds, the previous data
source for estimated market volumes was the Federal Reserve Bank’s
Reported Primary Dealer U.S. Treasury Bond Trading Volumes, which
was reported on a one-week lag. The new source for U.S. Government
Bond trading volumes is FINRA’s U.S. Treasury TRACE data. The
Company believes that the refined methodology used for Municipal
Bonds, and the new data source for U.S. Government Bonds, provides
more accurate measures of estimated market volumes and estimated
market share. Prior comparable periods have been recast
retrospectively for both Municipal and U.S. Government Bonds to
conform to the updated presentation of the data. The new estimated
market volume data is also available on the Company’s website at
investor.marketaxess.com/volume.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements,
including statements about the outlook and prospects for the
Company, product/protocol availability and ability to increase
estimated market share, market conditions and industry growth, as
well as statements about the Company’s future financial and
operating performance. These and other statements that relate to
future results and events are based on MarketAxess’ current
expectations. The Company’s actual results in future periods may
differ materially from those currently expected or desired because
of a number of risks and uncertainties, including: global economic,
political and market factors; the level of trading volume
transacted on the MarketAxess platform; the rapidly evolving nature
of the electronic financial services industry; the level and
intensity of competition in the fixed-income electronic trading
industry and the pricing pressures that may result; the variability
of our growth rate; our ability to introduce new fee plans and our
clients’ response; our ability to attract clients or adapt our
technology and marketing strategy to new markets; risks related to
our growing international operations; our dependence on our
broker-dealer clients; the loss of any of our significant
institutional investor clients; our exposure to risks resulting
from non-performance by counterparties to transactions executed
between our clients in which we act as an intermediary in matched
principal trades; risks related to self-clearing; risks related to
sanctions levied against states or individuals that could expose us
to operational or regulatory risks; the effect of rapid market or
technological changes on us and the users of our technology; our
dependence on third-party suppliers for key products and services;
our ability to successfully maintain the integrity of our trading
platform and our response to system failures, capacity constraints
and business interruptions; the occurrence of design defects,
errors, failures or delays with our platforms, products or
services; our vulnerability to malicious cyber-attacks and
attempted cybersecurity breaches; our actual or perceived failure
to comply with privacy and data protection laws; our ability to
protect our intellectual property rights or technology and defend
against intellectual property infringement or other claims; our
ability to enter into strategic alliances and to acquire other
businesses and successfully integrate them with our business; our
dependence on our management team and our ability to attract and
retain talent; limitations on our flexibility because we operate in
a highly regulated industry; the increasing government regulation
of us and our clients; risks related to the divergence of U.K. and
European Union legal and regulatory requirements following the
U.K.’s exit from the European Union; our exposure to costs and
penalties related to our extensive regulation; our risks of
litigation and securities laws liability; adverse effects as a
result of climate change or other ESG risks that could affect our
reputation; our future capital needs and our ability to obtain
capital when needed; limitations on our operating flexibility
contained in our credit agreement; our exposure to financial
institutions by holding cash in excess of federally insured limits;
and other factors. The Company undertakes no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise. More information about
these and other factors affecting MarketAxess’ business and
prospects is contained in MarketAxess’ periodic filings with the
Securities and Exchange Commission and can be accessed at
www.marketaxess.com.
About MarketAxess
MarketAxess (Nasdaq: MKTX) operates a leading electronic trading
platform that delivers greater trading efficiency, a diversified
pool of liquidity and significant cost savings to institutional
investors and broker-dealers across the global fixed-income
markets. Over 2,000 firms leverage MarketAxess’ patented technology
to efficiently trade fixed-income securities. Our automated and
algorithmic trading solutions, combined with our integrated and
actionable data offerings, help our clients make faster,
better-informed decisions on when and how to trade on our platform.
MarketAxess’ award-winning Open Trading® marketplace is widely
regarded as the preferred all-to-all trading solution in the global
credit markets. Founded in 2000, MarketAxess connects a robust
network of market participants through an advanced full trading
lifecycle solution that includes automated trading solutions,
intelligent data and index products and a range of post-trade
services. Learn more at www.marketaxess.com and on X
@MarketAxess.
Table 2: Consolidated Statements of
Operations
Three Months Ended
Six Months Ended
June 30,
June 30,
In thousands, except per share data
(unaudited)
2024
2023
% Change
2024
2023
% Change
Revenues
Commissions
$
171,679
$
158,586
8
%
$
356,552
$
340,577
5
%
Information services
12,544
11,655
8
24,425
22,665
8
Post-trade services
10,400
9,415
10
21,130
19,395
9
Technology services
3,037
190
NM
5,871
378
NM
Total revenues
197,660
179,846
10
407,978
383,015
7
Expenses
Employee compensation and benefits
56,790
48,383
17
118,054
100,698
17
Depreciation and amortization
18,356
17,005
8
36,556
33,466
9
Technology and communications
17,771
15,235
17
34,822
30,234
15
Professional and consulting fees
7,669
8,023
(4
)
14,064
15,150
(7
)
Occupancy
3,714
3,199
16
7,139
6,810
5
Marketing and advertising
3,010
3,308
(9
)
4,843
6,303
(23
)
Clearing costs
4,122
4,182
(1
)
9,033
8,727
4
General and administrative
4,889
4,784
2
9,628
10,544
(9
)
Total expenses
116,321
104,119
12
234,139
211,932
10
Operating income
81,339
75,727
7
173,839
171,083
2
Other income (expense)
Interest income
6,401
5,312
21
12,374
9,561
29
Interest expense
(621
)
(53
)
NM
(937
)
(183
)
412
Equity in earnings of unconsolidated
affiliate
354
250
42
724
454
59
Other, net
(1,136
)
(2,286
)
(50
)
(2,946
)
(3,770
)
(22
)
Total other income (expense)
4,998
3,223
55
9,215
6,062
52
Income before income taxes
86,337
78,950
9
183,054
177,145
3
Provision for income taxes
21,399
19,091
12
45,501
43,658
4
Net income
$
64,938
$
59,859
8
$
137,553
$
133,487
3
Per Share Data:
Net income per common share
Basic
$
1.72
$
1.60
$
3.65
$
3.56
Diluted
$
1.72
$
1.59
$
3.64
$
3.55
Cash dividends declared per
common share
$
0.74
$
0.72
$
1.48
$
1.44
Weighted-average common shares:
Basic
37,655
37,485
37,698
37,482
Diluted
37,689
37,588
37,740
37,617
NM - not meaningful
Table 3: Commission Revenue
Detail
In thousands, except fee per million
data
Three Months Ended June
30,
Six Months Ended June
30,
(unaudited)
2024
2023
% Change
2024
2023
% Change
Variable transaction fees
Credit
$
127,645
$
118,710
8
%
$
269,149
$
259,680
4
%
Rates
5,719
4,547
26
10,885
10,805
1
Other
5,076
—
NM
9,925
—
NM
Total variable transaction fees
138,440
123,257
12
289,959
270,485
7
Fixed distribution fees
Credit
33,177
35,268
(6
)
66,465
69,952
(5
)
Rates
62
61
2
128
140
(9
)
Total fixed distribution fees
33,239
35,329
(6
)
66,593
70,092
(5
)
Total commission revenue
$
171,679
$
158,586
8
$
356,552
$
340,577
5
Average variable transaction fee per
million
Credit
$
148.16
$
157.42
(6
)
%
$
151.25
$
161.43
(6
)
%
Rates
4.45
4.70
(5
)
4.61
4.35
6
Table 4: Trading Volume Detail*
Three Months Ended June
30,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
405,440
$
6,436
$
353,239
$
5,697
15
%
13
%
High-yield
84,248
1,337
91,390
1,474
(8
)
(9
)
Emerging markets
210,205
3,337
168,257
2,714
25
23
Eurobonds
128,266
2,103
116,495
1,942
10
8
Other credit
33,376
530
24,729
399
35
33
Total credit trading
861,535
13,743
754,110
12,226
14
12
Rates
U.S. government bonds
1,236,917
19,634
940,127
15,163
32
29
Agency and other government bonds
48,506
792
26,721
439
82
80
Total rates trading
1,285,423
20,426
966,848
15,602
33
31
Total trading
$
2,146,958
$
34,169
$
1,720,958
$
27,828
25
23
Number of U.S. Trading Days1
63
62
Number of U.K. Trading Days2
61
60
Six Months Ended June
30,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
861,438
$
6,947
$
745,954
$
6,016
15
%
15
%
High-yield
169,627
1,368
214,263
1,728
(21
)
(21
)
Emerging markets
431,632
3,481
360,098
2,904
20
20
Eurobonds
257,115
2,074
234,861
1,894
9
10
Other credit
59,705
481
53,412
430
12
12
Total credit trading
1,779,517
14,351
1,608,588
12,972
11
11
Rates
U.S. government bonds
2,282,713
18,409
2,431,419
19,608
(6
)
(6
)
Agency and other government bonds
80,132
646
53,782
434
49
49
Total rates trading
2,362,845
19,055
2,485,201
20,042
(5
)
(5
)
Total trading
$
4,142,362
$
33,406
$
4,093,789
$
33,014
1
1
Number of U.S. Trading Days1
124
124
Number of U.K. Trading Days2
124
124
1 The number of U.S. trading days is based
on the SIFMA holiday recommendation calendar.
2 The number of U.K. trading days is based
on the U.K. Bank holiday schedule.
* Consistent with FINRA TRACE reporting
standards, both sides of trades are included in the Company's
reported volumes when the Company executes trades on a matched
principal basis between two counterparties. Consistent with
industry standards, U.S. government bond trades are
single-counted.
NM - not meaningful
Table 5: Consolidated Condensed Balance
Sheet Data
As of
In thousands (unaudited)
June 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
434,063
$
451,280
Cash segregated under federal
regulations
46,141
45,122
Investments, at fair value
135,908
134,861
Accounts receivable, net
92,350
89,839
Receivables from broker-dealers, clearing
organizations and customers
577,992
687,936
Goodwill
236,706
236,706
Intangible assets, net of accumulated
amortization
108,420
119,108
Furniture, equipment, leasehold
improvements and capitalized software, net
108,802
102,671
Operating lease right-of-use assets
60,500
63,045
Prepaid expenses and other assets
85,831
84,499
Total assets
$
1,886,713
$
2,015,067
Liabilities and stockholders'
equity
Liabilities
Accrued employee compensation
$
41,002
$
60,124
Payables to broker-dealers, clearing
organizations and customers
392,846
537,398
Securities sold, not yet purchased, at
fair value
9,167
—
Income and other tax liabilities
2,058
7,892
Accounts payable, accrued expenses and
other liabilities
36,338
37,013
Operating lease liabilities
76,081
79,677
Total liabilities
557,492
722,104
Stockholders' equity
Common stock
123
123
Additional paid-in capital
335,641
333,292
Treasury stock
(302,455
)
(260,298
)
Retained earnings
1,325,139
1,244,216
Accumulated other comprehensive loss
(29,227
)
(24,370
)
Total stockholders' equity
1,329,221
1,292,963
Total liabilities and stockholders'
equity
$
1,886,713
$
2,015,067
Table 6: Reconciliation of Net Income
to EBITDA and Net Income Margin to EBITDA Margin
Three Months Ended
June 30,
Six Months Ended
June 30,
In thousands (unaudited)
2024
2023
2024
2023
Net income
$
64,938
$
59,859
$
137,553
$
133,487
Add back:
Interest income
(6,401
)
(5,312
)
(12,374
)
(9,561
)
Interest expense
621
53
937
183
Provision for income taxes
21,399
19,091
45,501
43,658
Depreciation and amortization
18,356
17,005
36,556
33,466
EBITDA
$
98,913
$
90,696
$
208,173
$
201,233
Net income margin1
32.9
%
33.3
%
33.7
%
34.9
%
Add back:
Interest income
(3.2
)
(3.0
)
(3.0
)
(2.5
)
Interest expense
0.3
—
0.2
—
Provision for income taxes
10.7
10.6
11.1
11.4
Depreciation and amortization
9.3
9.5
9.0
8.7
EBITDA margin2
50.0
%
50.4
%
51.0
%
52.5
%
Table 7: Reconciliation of Net Cash
Provided by Operating Activities to Free Cash Flow
Three Months Ended
June 30,
Six Months Ended
June 30,
In thousands (unaudited)
2024
2023
2024
2023
Net cash (used in)/provided by
operating activities
$
118,849
$
105,394
$
113,900
$
112,921
Exclude: Net change in trading
investments
100
(890
)
(155
)
(471
)
Exclude: Net change in
fail-to-deliver/receive from broker-dealers, clearing organizations
and customers
(3,151
)
(46,010
)
48,137
757
Less: Purchases of furniture, equipment
and leasehold improvements
(7,695
)
(1,055
)
(8,892
)
(1,272
)
Less: Capitalization of software
development costs
(10,496
)
(11,025
)
(24,459
)
(21,715
)
Free cash flow
$
97,607
$
46,414
$
128,531
$
90,220
1 Net income margin is derived by dividing
net income by total revenues for the applicable period.
2 EBITDA margin is derived by dividing
EBITDA by total revenues for the applicable period.
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version on businesswire.com: https://www.businesswire.com/news/home/20240805496841/en/
INVESTOR RELATIONS Stephen Davidson MarketAxess
Holdings Inc. +1 212 813 6313 sdavidson2@marketaxess.com
MEDIA RELATIONS Marisha Mistry MarketAxess
Holdings Inc. +1 917 267 1232 mmistry@marketaxess.com
Grafico Azioni MarketAxess (NASDAQ:MKTX)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni MarketAxess (NASDAQ:MKTX)
Storico
Da Gen 2024 a Gen 2025
