NASDAQ$MKTX

Marketaxess Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

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

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+™ algorithmic pricing engine.

Headline financials

Total Revenue

$180M

Previous: $182M-1.3%
EPS (adj)

$1.59

Previous: $1.78-10.7%
Total Credit Volume

$754B

Previous: $759B-0.6%
Rates Trading Volume

$967B

Previous: $1.43T-32.5%
Capital Expenditures

-$1.27M

Previous: -$2.68M+52.6%
Free Cash Flow

$58.6M

Previous: $64.2M-8.8%
Net Income

$59.9M

Previous: $66.9M-10.6%
Operating Income

$75.7M

Previous: $84.8M-10.7%
Gross Profit

-$59K

Previous: $137M-100.0%
Cash & Equivalents

$396M

Previous: $291M+36.5%
Total Assets

$1.62B

Previous: $1.57B+3.3%
Stock-Based Comp

$6.89M

Previous: $6.5M+6.0%

Revenue & EPS history

MarketAxess · Revenue · Quarterly

$180M

Q2 2023-1.3%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

MarketAxess · $180M total across 3 segments · Q2 2023

  • Commission
    $159M-3.0%
  • Information Services
    $11.7M+24.0%
  • Post-Trade Services
    $9.42M+3.0%

Forward guidance

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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.5%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+13.9%

Q4 2016

Best reaction

-20.2%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-5.6%-21.5%
Q4 2025-0.3%+9.8%+14.3%
Q3 2025+0.8%+2.4%+0.9%
Q1 2025-0.3%-4.7%-2.9%
Q4 2024+1.6%-1.4%+5.5%
Q3 2024-1.7%-1.8%-14.0%
Q2 2024+2.9%+5.9%+15.8%
Q1 2024-1.7%+0.2%+0.1%
Q4 2023-20.2%-19.3%-20.5%
Q3 2023-9.9%-9.2%-1.9%
Q2 2023+3.6%+3.2%-5.0%
Q1 2023-0.8%+0.5%-11.6%
Q4 2022+12.1%+11.4%+5.2%
Q3 2022-4.0%+0.3%+7.7%
Q2 2022-1.5%-3.7%-4.5%
Q1 2022+3.5%+1.6%+5.9%
Q4 2021-6.2%-2.1%+7.8%
Q3 2021-0.1%-1.0%-12.5%
Q2 2021+0.9%+1.4%+3.3%
Q1 2021-3.0%-5.3%-12.9%
Q4 2020+5.2%+11.6%+9.0%
Q3 2020+1.8%-1.5%-6.0%
Q2 2020-4.5%-2.3%-6.3%
Q1 2020+3.1%+3.5%+15.2%
Q4 2019-0.5%-1.2%-9.9%
Q3 2019+2.6%+2.4%+15.2%
Q2 2019-6.5%-8.4%+5.7%
Q1 2019+1.1%+5.3%+9.8%
Q4 2018+0.6%+1.4%+13.9%
Q3 2018+9.2%+8.4%+10.7%
Q2 2018-4.4%-8.3%-10.6%
Q1 2018-0.7%-1.1%+4.8%
Q4 2017+2.0%+2.8%+5.7%
Q3 2017-5.6%-9.0%-0.8%
Q2 2017+3.0%+1.7%-4.5%
Q1 2017+6.1%+4.0%+5.1%
Q4 2016+13.9%+14.5%+23.9%
Q3 2016-1.0%-1.0%+11.4%
Q2 2016+5.1%+5.2%+8.0%
Q1 2016-4.4%
Q4 2015+7.3%
Q3 2015-6.8%
Q2 2015-2.3%
Q1 2015-1.5%
Q4 2014+2.4%
Q3 2014-6.7%
Q2 2014+12.0%
Q1 2014-2.9%
Q4 2013+2.9%
Q3 2013+0.6%
Q2 2013+1.0%
Q1 2013+6.4%
Q4 2012-0.5%
Q3 2012-0.9%
Q2 2012+3.3%
Q1 2011+2.5%
Q1 2012+1.0%
Q4 2009-1.8%
Q4 2011-1.8%
Q3 2011+13.3%
Q3 2010+13.3%
Q2 2011+3.5%
Q2 2010+3.5%
Q4 2010+3.5%
Q1 2010+1.0%

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