NASDAQ$MKTX

Marketaxess Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

MarketAxess reported an increase in revenue, driven by strong performance in credit trading and market share gains across various products. The company also saw growth in EPS and EBITDA, reflecting operational efficiency and strategic execution.

MarketAxess reported an 8% increase in revenues to $177.9 million for Q4 2022. Diluted EPS increased by 15% to $1.58, and operating income rose by 7% to $77.7 million. The company achieved record market share across several product areas and a 24% growth in total credit average daily volume.

  • Revenues increased by 8% to $177.9 million, driven by growth in credit trading and market share gains.
  • Diluted EPS increased by 15% to $1.58, reflecting improved profitability.
  • Operating income rose by 7% to $77.7 million, with a stable operating margin of 43.7%.
  • Total credit trading average daily volume (ADV) grew by 24% to $12.0 billion.

Headline financials

Total Revenue

$178M

Previous: $165M+7.8%
EPS (adj)

$1.58

Previous: $1.37+15.3%
Total Credit Volume

$738B

Previous: $604B+22.1%
Rates Trading Volume

$1.12T

Previous: $1.21T-7.0%
Capital Expenditures

$6.5M

Previous: $2.93M+122.1%
Free Cash Flow

$128M

Previous: $143M-10.5%
Net Income

$59.2M

Previous: $52.2M+13.5%
Operating Income

$77.7M

Previous: $72.6M+7.0%
Gross Profit

$134M

Previous: $124M+8.0%
Cash & Equivalents

$431M

Previous: $507M-15.0%
Total Assets

$1.61B

Previous: $1.5B+7.2%
Stock-Based Comp

$7.91M

Previous: $7M+13.0%

Revenue & EPS history

MarketAxess · Revenue · Quarterly

$178M

Q4 2022+7.8%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

MarketAxess · $178M total across 3 segments · Q4 2022

  • Commission
    $158M+8.6%
  • Information Services
    $10.4M+8.8%
  • Post-Trade Services
    $8.82M-5.8%

Forward guidance

MarketAxess anticipates total expenses between $418.0 million and $446.0 million for FY 2023. They expect an effective tax rate between 25.0% and 26.0%. Capital expenditures are projected to be in the range of $52.0 million to $58.0 million.

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 Q4 2022

Historical avgQ4 2022

+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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