Marketaxess Holdings, Inc. · NASDAQ:MKTX
Marketaxess — Q1 2021 Earnings Presentation
15 slides from Marketaxess's earnings presentation, Apr 22, 2021
Slide 1: Q1 2021 Conference Call and Webcast
Q1 2021 Conference Call and Webcast April 22, 2021
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: 1Q21 Summary
1Q21 Summary1 FINANCIAL HIGHLIGHTS BUSINESS HIGHLIGHTS • Record total credit trading volume of $754 billion, up 14% • Record revenues of $195.5 million, up 16% • Record U.S. high‐yield, emerging markets, Eurobonds and munis • Operating income of $103.5 million, up 14% volume • Record EBITDA of $113.
Slide 4: Market Conditions
Market Conditions LIQUID U.S. CORPORATE INDEX (LUCI) U.S. HIGH‐GRADE & HIGH‐YIELD TRACE VOLUME Q1 YoY Growth HG TRACE: 7% Benchmark Spread 3 Month Rolling Spread Volatility HG TRACE Volume HY TRACE Volume HY TRACE: ‐6% High Grade Market Share High Yield Market Share 310 14.0% Benchmark Spread (bps)
Slide 5: Open Trading
Open Trading™ HIGHLIGHTS DEALER AND INVESTOR OPEN TRADING VOLUME • Record 34,000 orders and $19 billion notional value available through 20% Q1 YoY Open Trading on average per day in 1Q21 Client Initiated Volume Dealer Initiated Volume Growth Unique Open Trading Firms • Record $4.0 billion average d
Slide 6: Product and Client Expansion
Product and Client Expansion INTERNATIONAL GROWTH MUNICIPAL BONDS • Global emerging markets client volume of $178 billion, up 18%; • Record volume of $5.8 billion, up 75% from a year ago estimated market volumes down 10% • Acquisition of MuniBrokers closed April 9th • Over 905 active international c
Slide 7: Trading Automation Continues to Grow
Trading Automation Continues to Grow HIGHLIGHTS AUTO‐X TRADE VOLUME AND COUNT Q1 YoY Growth Trade Volume: 24% • Over 205,000 trades completed using automated execution, up from Trade Volume Trade Count Trade Count: 37% 149,000 trades in 1Q20 45,000 250 Trade Count (in thousands) Trade Volume ($ mill
Slide 8: Quarterly Volume Growth
Quarterly Volume Growth TOTAL CREDIT 14% U.S. HIGH‐GRADE 10% Q1 YoY Growth U.S. High‐Grade Volume Market Share Q1 YoY Growth 800 450 25% 700 400 Estimated Market Share 350 20% 600 Volume ($ billions) 300 500 $ billions 250 400 15% 200 300 150 200 100 10% 100 50 ‐‐ ‐‐ 5% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Slide 9: Earnings Performance
Earnings Performance ∆ 1Q21 vs. 1Q21 4Q20 1Q20 1Q20 ($ in thousands, except per share data) Revenues Commissions $ 175,838 $ 155,813 $ 155,954 12.7% Information Services 9,162 8,771 8,642 6.0% Post‐trade Services 10,261 6,564 4,153 147.1% Other Income 203 198 229 (11.4%) Total Revenues 195,464 171,3
Slide 10: Commission Revenue Detail
Commission Revenue Detail %Δ 1Q21 vs. 1Q21 4Q20 1Q20 1Q20 Commissions ($ in thousands) Transaction Fees U.S. High‐Grade $ 65,356 $ 59,645 $ 57,970 12.7% Other Credit1 78,899 65,045 65,610 20.3% Total Credit 144,255 124,690 123,580 16.7% Rates 2 4,143 3,267 5,586 (25.8%) Total Transaction Fees 148,39
Slide 11: Expense Detail
Expense Detail %Δ 1Q21 vs. 1Q21 4Q20 1Q20 1Q20 ($ in thousands) Expenses Employee Compensation and Benefits $ 48,088 $ 36,472 $ 41,194 16.7% Depreciation and Amortization 11,779 10,592 8,067 46.0% Technology and Communications 10,036 8,922 8,161 23.0% Professional and Consulting 9,640 10,295 5,675 6
Slide 12: Balance Sheet Data
Balance Sheet Data 3/31/2021 12/31/2020 TTM FREE CASH FLOW AND CAPITAL ($ in thousands) EXPENDITURES 2 36% YoY TTM Assets FCF Growth TTM Free Cash Flow TTM Capital Expenditures Cash, Cash Equivalents and Investments $ 415,223 $ 488,969 400 100 TTM Capital Expenditures ($ millions) TTM Free Cash Flow
Slide 13: Summary
Summary • Record quarter for credit trading volume, Open Trading volume and revenue • Continued market share gains despite more normal market conditions • Growth opportunities expanding with new products and trading protocols on the network • Global liquidity network continues to expand 13
Slide 14: Now you're in the market
\V, aN Now you're in the market”
Slide 15: Disclosures
Disclosures ©2021 MarketAxess Holding Inc. (the "Company"). MarketAxess Corporation and LiquidityEdge LLC are members of FINRA and SIPC. MarketAxess Canada Company is a member of IIROC. MarketAxess Europe Limited (04017160), MarketAxess Capital Limited (09777893), and Xtrakter Limited (01917944) are