MarketAxess Holdings, Inc. · NASDAQ:MKTX
MarketAxess — Q3 2016 Earnings Presentation
12 slides from MarketAxess's earnings presentation, Oct 26, 2016
Slide 1: 3Q16 Conference Call & Webcast
3Q16 CONFERENCE CALL & WEBCAST October 26, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements, including statements about the outlook and prospects for Company and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to f
Slide 3: 3Q16 Summary
3Q16 Summary1 Earnings Business Highlights Revenues of $90.3 million, up 21.7% Total trading volume up 34.4%; record quarter for emerging markets volume Expenses of $43.9 million, up 13.1% Record Open Trading™ volume and participation Pre-tax income of $46.4 million, up 31.1% Estimated m
Slide 4: Market Conditions
Market Conditions U.S. High-Grade & High-Yield TRACE1 Liquid U.S. Corporate Index (LUCI) 3Q YoY Growth HG TRACE HY TRACE 2,000 Benchmark Spread 3 Month Rolling Spread Volatility HG TRACE: 19% 180 2.9% LUCI 3 Month Rolling Spread Volatility Total HG and HY TRACE ($ billions) 1,750 HY TRACE: -1% LUCI
Slide 5: Open Trading
Open Trading™ Open Trading Growth Highlights 120,000 Trade Volume Trade Count 50 $687 million average daily volume, up 90% from 3Q15 45 100,000 Over 105,000 total Open Trading transactions completed in 3Q16, 40 Trade Volume ($ in billion) Trade Count ( # of trades) 35 up from 45,000 in 3Q15 80,0
Slide 6: International Progress
International Progress European Client Volumes Emerging Market Volume Region and Client Count Eurobonds Emerging Markets U.S. Credit Local Markets External Markets Active Firms # of Active Clients Trading Emerging Markets 80 70 800 Emerging Market Volume ($ billions) Q3 YoY Growth 70 Eurobonds: 56%
Slide 7: Quarterly Volume
Quarterly Volume Global U.S. High-Grade U.S. High-Grade Volume Market Share Market Share1 350 200 17% 34% 27% U.S. High-Grade Volume ($ billions) 300 180 Q3 YoY Q3 YoY 16% Growth 160 Growth 250 140 15% Market Share ($ billions) 200 120 100 14% 150 80 13% 100 60 40 50 12% 20 0 0 11% 3Q14 4Q14 1Q15 2Q
Slide 8: Earnings Performance
Earnings Performance (In thousands, except per share data) ∆ 3Q16 vs. 3Q16 2Q16 3Q15 3Q15 Revenues Commissions $ 81,456 $ 86,239 $ 65,178 25.0% Information and Post-trade Services 7,322 8,586 7,671 (4.5%) Investment and Other Income 1,493 1,814 1,343 11.2% Total Revenues 90,271 96,639 74,192 21.7% E
Slide 9: Commission Revenue Detail
Commission Revenue Detail %Δ ($ in thousands) 3Q16 vs. 3Q16 2Q16 3Q15 3Q15 Commissions Transaction Fees U.S. High-Grade $ 33,765 $ 35,771 $ 23,337 44.7% 1 Other Credit 30,181 33,826 24,091 25.3% 2 Liquid Products 798 678 598 33.4% Total Transaction Fees 64,744 70,275 48,026 34.8% Distribution Fees U
Slide 10: Expense Detail
Expense Detail ($ in thousands) %∆ 3Q16 vs. 3Q16 2Q16 3Q15 3Q15 Expenses Employee Comp. and Benefits $ 23,914 $ 25,815 $ 21,002 13.9% Depreciation and Amortization 4,325 4,540 4,642 (6.8%) Technology and Communications 4,245 4,277 3,891 9.1% Professional and Consulting 4,342 4,245 3,210 35.3% Occupa
Slide 11: Balance Sheet Data
Balance Sheet Data ($ in thousands) % Δ vs. 9/30/2016 12/31/2015 12/31/2015 Assets Cash and Cash Equivalents $ 161,444 $ 199,728 (19.2%) Investments 170,655 84,706 101.5% Accounts Receivable, net 56,583 40,459 39.9% All Other Assets 113,469 114,148 (0.6%) Total Assets $ 502,151 $ 439,041 14.4% Liabi
Slide 12: Summary
Summary Significant growth in trading volume, revenue and earnings Strong market share gains across each of our core products Open Trading growth continues Growing momentum in our international business ©2016 MarketAxess Holdings Inc. MarketAxess and the MarketAxess logo are trademarks of th