Record Full Year Revenue of $817 Million, Up
9%
Strong Full Year Commission Revenue Growth
Across Most Product Areas
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a
leading electronic trading platform for fixed-income securities,
today announced financial results for the fourth quarter and full
year ended December 31, 2024.
4Q24 select financial and operational highlights*
- Total revenues of $202.4 million, including an increase
of approximately $1.0 million from the impact of foreign
currency fluctuations.
- 15% growth in emerging markets and Eurobonds commission
revenue, reflecting strong geographic diversification.
- Record rates commission revenue, up 53%.
- Total expenses of $122.4 million, up 2%,
including an increase of approximately $0.9 million from the
impact of foreign currency fluctuations.
- Diluted earnings per share (“EPS”) of $1.73 on net
income of $65.1 million.
Full Year 2024 select financial and operational
highlights**
- 9% increase in total revenues to a record
$817.1 million, including Pragma revenue of $31.7
million and an increase of approximately $3.0 million
from the impact of foreign currency fluctuations.
- 9% growth in U.S. high-grade commission revenue, helped
offset a 17% decline in U.S. high-yield commission revenue,
driven by low levels of credit spread volatility.
- Record commission revenue across emerging markets,
Eurobonds and municipal bonds, up a combined 15%.
- Record rates commission revenue, up 21%.
- Record services revenue (combined information,
post-trade and technology services revenue) of $105.4
million, up 18%, including the benefit from Pragma.
- 9% increase in total expenses to $476.2 million,
including Pragma operating expenses of $32.0 million and an
increase of approximately $2.4 million from the impact of
foreign currency fluctuations.
- 6% increase in EPS to $7.28 on net income of
$274.2 million.
*All comparisons versus 4Q23. ** All comparisons versus full
year 2023.
Chris Concannon, CEO of MarketAxess, commented:
“In 2024, we made significant strides in enhancing our client
franchise, increasing client engagement with X-Pro, delivering
progress with our high touch strategy, and achieving record levels
of revenue and ADV across most product areas and regions.
We expect to build on this momentum in 2025 by focusing on key
initiatives within three market channels. First, in the
client-initiated channel, where we hold a clear leadership
position, we launched our block trading solution in Eurobonds and
emerging markets. We have seen early positive signs of success with
a 22% increase in emerging markets block trading. Next, in the
portfolio trading channel, in 2024, we gained over 200 basis points
of U.S. high-grade market share and launched benchmark pricing for
U.S. Credit and Eurobonds. Last, in the dealer-initiated channel,
we expect to complete the integration of Dealer RFQ on X-Pro and
the migration of Mid-X to Pragma technology in the second half of
2025.
We have clear visibility into the completion of these key
initiatives and believe that executing our strategy across these
three channels will drive market share growth throughout 2025 and
long-term value for our shareholders.”
Table 1: 4Q24 select financial results
$ in millions, except per share data(unaudited)
Revenues
Operating Income Net Income Diluted EPS Net
IncomeMargin (%) EBITDA1 EBITDA Margin(%)1
4Q24
$202
$80
$65
$1.73
32.2%
$97
47.8%
3Q24
$207
$87
$71
$1.90
34.6%
$105
50.8%
4Q23
$197
$77
$70
$1.84
35.3%
$99
50.0%
YoY % Change
3%
4%
(6%)
(6%)
(310) bps
(2%)
(220) bps
QoQ % Change
(2%)
(8%)
(9%)
(9%)
(240) bps
(8%)
(300) bps
FY 2024
$817
$341
$274
$7.28
33.6%
$410
50.2%
FY 2023
$753
$315
$258
$6.85
34.3%
$383
50.9%
% Change
9%
8%
6%
6%
(70) bps
7%
(70) bps
Table 1A: 4Q24 trading volume (ADV)
CREDIT
RATES
$ in millions(unaudited)
US/UKTradingDays2 TotalADV
TotalCredit High-Grade High-Yield
EmergingMarkets Eurobonds MunicipalBonds
TotalRates US Govt.Bonds Agcy./OtherGovt.Bonds
4Q24
62/64
$41,030
$13,883
$6,454
$1,345
$3,459
$2,001
$620
$27,147
$25,952
$1,195
3Q24
64/65
$40,516
$14,116
$7,027
$1,278
$3,333
$1,891
$577
$26,400
$25,302
$1,098
4Q23
62/63
$29,641
$13,108
$6,215
$1,653
$2,927
$1,767
$539
$16,533
$16,106
$427
YoY % Change
38%
6%
4%
(19%)
18%
13%
15%
64%
61%
180%
QoQ % Change
1%
(2%)
(8%)
5%
4%
6%
7%
3%
3%
9%
Table 1B: 4Q24 estimated market share
CREDIT RATES
(unaudited)
High-Grade High-Yield
High-Grade/High-YieldCombined Municipals3 US
Govt.Bonds3
4Q24
18.4%
13.4%
17.3%
7.1%
2.8%
3Q24
19.5%
13.0%
18.1%
8.7%
2.6%
4Q23
20.9%
17.2%
20.0%
5.6%
2.0%
YoY Bps Change
(250) bps
(380) bps
(270) bps
+150 bps
+80 bps
QoQ Bps Change
(110) bps
+40 bps
(80) bps
(160) bps
+20 bps
4Q24 overview of results
Commission revenue and trading
volume
Credit
Credit Commission Revenue
- Total credit commission revenue of $162.2 million
(including $32.8 million in fixed-distribution fees)
increased $0.3 million, or 0.2%, compared to
$161.9 million (including $34.6 million in
fixed-distribution fees) in the prior year. Strong growth in our
international product areas, including 18% growth in
emerging markets and 10% growth in Eurobonds, was mostly
offset by lower estimated market share in U.S. high grade, and
historically low levels of credit spread volatility in U.S.
high-yield, resulting in lower estimated market share. Variable
transaction fees per million (“FPM”) were $150, compared to
$156 in the prior year and $149 in 3Q24. The decline
in FPM compared to the prior year was mainly due to product
mix-shift, principally lower levels of U.S. high-yield activity.
The decrease in fixed-distribution fees was principally driven by
migrations to variable fee plans.
Credit Trading Volumes
U.S. Credit5
- U.S. high-grade ADV of $6.5 billion increased
4% compared to the prior year, but decreased 8%
compared to 3Q24. Estimated market ADV increased 18%
compared to the prior year, but decreased 3% compared to
3Q24. Estimated market share was 18.4%, down from
20.9% in the prior year, and down from 19.5% in 3Q24.
Including the impact of single-dealer portfolio trades,
estimated market share was 18.8%, down from 21.0% in
the prior year, and down from 20.0% in 3Q24.
- U.S. high-yield ADV of $1.3 billion decreased 19%
compared to the prior year, but increased 5% compared to
3Q24. Estimated market ADV increased 5% compared to the
prior year, and increased 2% compared to 3Q24. Estimated
market share was 13.4%, down from 17.2% in the prior
year, but up from 13.0% in 3Q24. Including the impact of
single-dealer portfolio trades, estimated market share was
13.7%, down from 17.3% in the prior year, but up from
13.4% in 3Q24.
Other Credit
- Emerging markets ADV of $3.5 billion increased
18% compared to the prior year, and increased 4%
compared to 3Q24. The year-over-year increase was driven by a
26% increase in hard currency ADV, and a 7% increase
in local currency ADV.
- Eurobonds ADV of $2.0 billion increased 13%
compared to the prior year, and increased 6% compared to
3Q24.
- Record municipal bond ADV of $620 million
increased 15% compared to the prior year, and increased
7% compared to 3Q24. Estimated market ADV decreased
9% compared to the prior year, but increased 32%
compared to 3Q24. Estimated market share was 7.1%, up from
5.6% in the prior year, but down from a record
8.7% in 3Q24.3
Strategic Priority Related Protocols & Workflow
Tools
- $1.1 billion in total portfolio trading ADV increased
57% compared to the prior year, but decreased 8%
compared to 3Q24. A record 71% of portfolio trading volume
was executed over X-Pro.
- Estimated U.S. high-grade and U.S. high-yield TRACE portfolio
trading market ADV was flat compared to 3Q24.
- Our estimated market share of U.S. high-grade and U.S.
high-yield TRACE portfolio trading was 16.2%, down from
20.0% in 3Q24.
- Portfolio trading represented approximately 11% of U.S.
high-grade and U.S. high-yield TRACE in 4Q24, in line with
3Q24.
- Open Trading ADV of $4.1 billion increased 2%
compared to the prior year, and was in line with 3Q24. Open Trading
share4 of total credit trading volume was 35%, down from
36% in the prior year, but in line with 3Q24 levels.
- Dealer RFQ ADV of $1.2 billion across all credit
products increased 8% compared to the prior year, and
increased 5% compared to 3Q24.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved record ADV of $147 million, up 6%
compared to the prior year, and up 14% compared to
3Q24.
Rates
- Record total rates commission revenue of $7.3
million increased $2.5 million, or 53%.
Record total rates ADV of $27.1 billion increased
64% compared to the prior year, and increased 3%
compared to 3Q24. U.S. Treasury ADV on the platform in November
2023 was negatively impacted by an outage at ICBC, the third-party
the Company was then using for U.S. Treasury settlement
services.
Other
- Total other commission revenue was $5.2 million,
which consists of Pragma commission revenue.
Services revenue
Information services
- Information services revenue of $13.2 million
increased $1.2 million, or 10% compared to the
prior year. The increase in revenue was principally driven by net
new data contract revenue and an increase of $0.3 million
from the impact of foreign currency fluctuations.
Post-trade services
- Post-trade services revenue of $11.0 million was flat
compared to the prior year mainly due to an increase of $0.2
million from the impact of foreign currency fluctuations,
offset by lower end-of-year resubmissions revenue.
Technology services
- Total technology services revenue of $3.5
million, up from $2.5 million in the prior year. The
increase was driven by higher Pragma-related license fees.
Expenses
- Total expenses of $122.4 million increased 2%
from the prior year, including an increase of $0.9 million
from the impact of foreign currency fluctuations.
Non-operating
- Other income (expense): Other income was $4.6
million, down from $6.8 million in the prior
year. The current year includes an unrealized loss on U.S. Treasury
investments of $1.9 million compared to an unrealized gain
in the prior year of $0.9 million.
- Tax rate: The effective tax rate was 23.0%, up
from 16.9% in the prior year. The increase in the effective
tax rate was primarily due to lower one-time tax benefits
recognized in 4Q24 compared to 4Q23.
Capital
- The Company had $698.6 million in cash, cash
equivalents, corporate bond investments and U.S. Treasury
investments as of December 31, 2024, up from $602.5
million as of September 30, 2024 and $575.7
million as of December 31, 2023. There were no
outstanding borrowings under the Company’s credit facility.
- For the full year 2024, a total of 341,477 shares were
repurchased at a cost of $75.0 million, including
63,873 shares repurchased during the fourth quarter at a
cost of $16.4 million. As of January 31, 2025, a
total of $220.0 million remained under the aggregate
authorizations by the Company’s Board of Directors.
- The Board declared a quarterly cash dividend of $0.76
per share, payable on March 5, 2025 to stockholders of
record as of the close of business on February 19,
2025.
Other
- Employee headcount was 891 as of December 31,
2024, up from 881 as of December 31, 2023, and up
from 881 as of September 30, 2024.
Guidance
For the full year 2025, the Company is providing the following
guidance which is based on foreign exchange rates as of December
31, 2024:
- Services revenue (combined Information Services, Post-Trade
Services and Technology Services) is expected to grow in the
mid-single digits (percent).
- Expenses are expected to be in the range of $505.0
million to $525.0 million. Based on the midpoint of the
stated guidance range, total expenses are expected to increase by
approximately 8%.
- The effective tax rate is expected to be between 23.5%
and 24.5%, assuming no material changes in applicable tax
laws.
- Capital expenditures to support new protocols, products and
trading platform enhancements are expected to be in the range of
$65.0 million to $70.0 million.
1
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.
2
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.
3
See “General Notes Regarding the Data
Presented” below.
4
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.
5
The Company is currently 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 Thursday, February 6,
2025 at 10:30 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.
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
Year Ended
December 31,
December 31,
In thousands, except per share data
(unaudited)
2024
2023
% Change
2024
2023
% Change
Revenues
Commissions
$
174,766
$
171,891
2
%
$
711,710
$
662,964
7
%
Information services
13,155
11,917
10
50,540
46,383
9
Post-trade services
10,975
10,950
-
42,487
40,178
6
Technology services
3,508
2,490
41
12,360
3,022
NM
Total revenues
202,404
197,248
3
817,097
752,547
9
Expenses
Employee compensation and
benefits
59,395
57,356
4
235,880
206,926
14
Depreciation and amortization
18,540
19,530
(5
)
73,824
70,557
5
Technology and communications
18,791
17,228
9
72,166
62,801
15
Professional and consulting fees
6,329
7,604
(17
)
27,382
31,935
(14
)
Occupancy
3,716
3,903
(5
)
14,690
14,216
3
Marketing and advertising
3,972
2,646
50
11,713
11,049
6
Clearing costs
4,443
4,610
(4
)
17,863
17,002
5
General and administrative
7,242
7,344
(1
)
22,709
23,042
(1
)
Total expenses
122,428
120,221
2
476,227
437,528
9
Operating income
79,976
77,027
4
340,870
315,019
8
Other income (expense)
Interest income
6,719
6,274
7
26,046
22,425
16
Interest expense
(318
)
(1,636
)
(81
)
(1,601
)
(1,983
)
(19
)
Equity in earnings of
unconsolidated affiliate
331
156
112
1,395
735
90
Other, net
(2,113
)
1,991
NM
(6,164
)
(3,496
)
76
Total other income (expense)
4,619
6,785
(32
)
19,676
17,681
11
Income before income taxes
84,595
83,812
1
360,546
332,700
8
Provision for income taxes
19,456
14,185
37
86,365
74,645
16
Net income
$
65,139
$
69,627
(6
)
$
274,181
$
258,055
6
Per Share Data:
Net income per common share
Basic
$
1.74
$
1.85
$
7.29
$
6.87
Diluted
$
1.73
$
1.84
$
7.28
$
6.85
Cash dividends declared per
common share
$
0.74
$
0.72
$
2.96
$
2.88
Weighted-average common shares:
Basic
37,479
37,730
37,600
37,546
Diluted
37,601
37,809
37,672
37,654
NM - not meaningful
Table 3: Commission Revenue
Detail
In thousands, except fee per million
data
Three Months Ended December
31,
Year Ended December
31,
(unaudited)
2024
2023
% Change
2024
2023
% Change
Variable transaction fees
Credit
$
129,351
$
127,283
2
%
$
533,363
$
496,028
8
%
Rates
7,262
4,735
53
25,165
20,749
21
Other
5,235
4,979
5
20,016
4,979
NM
Total variable transaction fees
141,848
136,997
4
578,544
521,756
11
Fixed distribution fees
Credit
32,849
34,581
(5
)
132,898
140,700
(6
)
Rates
69
57
21
268
252
6
Other
-
256
NM
-
256
NM
Total fixed distribution fees
32,918
34,894
(6
)
133,166
141,208
(6
)
Total commission revenue
$
174,766
$
171,891
2
$
711,710
$
662,964
7
Average variable transaction fee per
million
Credit
$
149.59
$
156.28
(4
)
%
$
150.26
$
158.61
(5
)
%
Rates
4.31
4.62
(7
)
4.39
4.46
(2
)
Table 4: Trading Volume Detail*
Three Months Ended December
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
400,129
$
6,454
$
385,301
$
6,215
4
%
4
%
High-yield
83,373
1,345
102,501
1,653
(19
)
(19
)
Emerging markets
214,439
3,459
181,445
2,927
18
18
Eurobonds
128,064
2,001
111,330
1,767
15
13
Other credit
38,698
624
33,854
546
14
14
Total credit trading
864,703
13,883
814,431
13,108
6
6
Rates
U.S. government bonds
1,608,995
25,952
998,542
16,106
61
61
Agency and other government bonds
76,221
1,195
26,684
427
186
180
Total rates trading
1,685,216
27,147
1,025,226
16,533
64
64
Total trading
$
2,549,919
$
41,030
$
1,839,657
$
29,641
39
38
Number of U.S. Trading Days1
62
62
Number of U.K. Trading Days2
64
63
Year Ended December
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,711,275
$
6,845
$
1,457,559
$
5,854
17
%
17
%
High-yield
334,761
1,339
398,275
1,599
(16
)
(16
)
Emerging markets
859,412
3,438
717,877
2,883
20
19
Eurobonds
508,093
2,008
441,171
1,758
15
14
Other credit
135,975
543
112,451
451
21
20
Total credit trading
3,549,516
14,173
3,127,333
12,545
13
13
Rates
U.S. government bonds
5,511,045
22,044
4,545,850
18,256
21
21
Agency and other government bonds
227,614
902
106,933
427
113
111
Total rates trading
5,738,659
22,946
4,652,783
18,683
23
23
Total trading
$
9,288,175
$
37,119
$
7,780,116
$
31,228
19
19
Number of U.S. Trading Days1
250
249
Number of U.K. Trading Days2
253
251
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)
December 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
544,478
$
451,280
Cash segregated under federal
regulations
47,107
45,122
Investments, at fair value
165,260
134,861
Accounts receivable, net
91,845
89,839
Receivables from broker-dealers, clearing
organizations
and customers
357,728
687,936
Goodwill
236,706
236,706
Intangible assets, net of accumulated
amortization
98,078
119,108
Furniture, equipment, leasehold
improvements and
capitalized software, net
107,298
102,671
Operating lease right-of-use assets
58,132
63,045
Prepaid expenses and other assets
82,584
84,499
Total assets
$
1,789,216
$
2,015,067
Liabilities and stockholders'
equity
Liabilities
Accrued employee compensation
$
68,054
$
60,124
Payables to broker-dealers, clearing
organizations
and customers
218,845
537,398
Income and other tax liabilities
3,683
7,892
Accounts payable, accrued expenses
and other liabilities
37,320
37,013
Operating lease liabilities
72,654
79,677
Total liabilities
400,556
722,104
Stockholders' equity
Common stock
123
123
Additional paid-in capital
350,701
333,292
Treasury stock
(333,369
)
(260,298
)
Retained earnings
1,405,904
1,244,216
Accumulated other comprehensive loss
(34,699
)
(24,370
)
Total stockholders' equity
1,388,660
1,292,963
Total liabilities and stockholders'
equity
$
1,789,216
$
2,015,067
Table 6: Reconciliation of Net Income
to EBITDA and Net Income Margin to EBITDA Margin
Three Months Ended
December 31,
Year Ended December
31,
In thousands (unaudited)
2024
2023
2024
2023
Net income
$
65,139
$
69,627
$
274,181
$
258,055
Add back:
Interest income
(6,719
)
(6,274
)
(26,046
)
(22,425
)
Interest expense
318
1,636
1,601
1,983
Provision for income taxes
19,456
14,185
86,365
74,645
Depreciation and amortization
18,540
19,530
73,824
70,557
EBITDA
$
96,734
$
98,704
$
409,925
$
382,815
Net income margin1
32.2
%
35.3
%
33.6
%
34.3
%
Add back:
Interest income
(3.3
)
(3.2
)
(3.2
)
(3.0
)
Interest expense
0.2
0.8
0.2
0.3
Provision for income taxes
9.5
7.2
10.6
9.9
Depreciation and amortization
9.2
9.9
9.0
9.4
EBITDA margin2
47.8
%
50.0
%
50.2
%
50.9
%
Table 7: Reconciliation of Net Cash
Provided by Operating Activities to Free Cash Flow
Three Months Ended
December 31,
Year Ended
December 31,
In thousands (unaudited)
2024
2023
2024
2023
Net cash (used in)/provided by
operating activities
$
176,248
$
141,685
$
385,237
$
333,767
Exclude: Net change in trading
investments
—
948
629
25,248
Exclude: Net change in
fail-to-deliver/receive
from broker-dealers, clearing
organizations
and customers
(51,833
)
(34,354
)
(1,118
)
(46,696
)
Less: Purchases of furniture, equipment
and
leasehold improvements
(215
)
(2,071
)
(9,942
)
(9,326
)
Less: Capitalization of software
development
costs
(10,833
)
(11,320
)
(46,623
)
(43,122
)
Free cash flow
$
113,367
$
94,888
$
328,183
$
259,871
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205395499/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
MarketAxess (NASDAQ:MKTX)
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MarketAxess (NASDAQ:MKTX)
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