In This Article:
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Total Revenue: $209 million, compared to $210 million in the prior year.
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Commission Revenue: Decreased 2%, with total commission revenue at $181 million.
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Services Revenue Growth: Increased 7%, driven by a 9% increase in information services revenue to $13 million.
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Post-trade Services Revenue: $11 million, increased 3% versus the prior year.
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Technology Services Revenue: $3 million, increased 14%.
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Diluted Earnings Per Share: $0.40 or $1.87 per share, excluding notable items.
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Operating Expenses: $120 million, increased 2% compared to the prior year.
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Free Cash Flow: $344 million over the trailing 12 months, an increase of 5% over the last quarter.
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Share Repurchases: 251,000 shares year-to-date through April 2025 for a total of $52 million.
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Cash Equivalents and Investments: $642 million as of March 31, down from $699 million at the end of 2024.
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Effective Tax Rate Guidance: GAAP basis expected to be 41% to 42%; excluding notable items, expected to be 26% to 27%.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MarketAxess Holdings Inc (NASDAQ:MKTX) reported record commission revenue in international and new product areas, including emerging markets, municipals, and US government bonds.
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The company achieved a single-day trading record of $102 billion in US government bonds on April 9, driven by increased velocity and institutional clients leveraging new algorithms.
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Services revenue grew by 7%, with strong growth in information services revenue and technology services revenue.
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MarketAxess Holdings Inc (NASDAQ:MKTX) demonstrated cost discipline with expenses increasing only 2%, benefiting from lower variable costs.
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The company made significant progress in expanding its algo suite for rates and plans to launch an enhanced RFQ solution soon.
Negative Points
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US credit market share across key protocols remains a challenge, partially offsetting growth in other areas.
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Commission revenue decreased by 2%, largely due to lower fee per million and market share in US credit.
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The effective tax rate is expected to increase due to a new reserve for uncertain tax positions, impacting future financials.
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Total revenue was relatively flat compared to the prior year, with only a slight decrease from $210 million to $209 million.
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The balance sheet saw a decline in cash equivalents and investments, primarily due to cash incentive compensation payouts and share repurchase activity.
Q & A Highlights
Q: Can you unpack the outlook for increased share gain moving forward? How dependent are share gains on the current environment, and what impact do new capabilities have on share gains? A: Christopher Concannon, CEO: The current market environment, characterized by uncertainty and volatility, is favorable for our business model. We are seeing increased liquidity needs from clients, which benefits us. Our growth opportunity is expanding due to our protocol-agnostic approach, offering multiple execution solutions. We are excited about upcoming product releases, including our high touch block solution and Mid-X launch, which should drive further growth.