Marketaxess Holdings, Inc. · NASDAQ:MKTX
Marketaxess — Q1 2017 Earnings Presentation
12 slides from Marketaxess's earnings presentation, Apr 26, 2017
Slide 1: 1Q17 Conference Call & Webcast
1Q17 CONFERENCE CALL & WEBCAST April 26, 2017
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: 1Q17 Summary
1Q17 Summary1 Earnings Business Highlights Record revenues of $103.9 million, up 17.3% Record total trading volume of $394.4 billion, up 27.2% Expenses of $48.3 million, up 9.2% Record trading volume in each of our four core products: U.S. high-grade, high-yield, Eurobonds and emerging Rec
Slide 4: Market Conditions
Market Conditions U.S. High-Grade & High-Yield TRACE1 Liquid U.S. Corporate Index (LUCI) 1Q YoY Growth HG TRACE HY TRACE 2,250 Benchmark Spread 3 Month Rolling Spread Volatility HG TRACE: 16% 180 2.9% LUCI 3 Month Rolling Spread Volatility Total HG and HY TRACE ($ billions) 2,000 HY TRACE: 2% LUCI B
Slide 5: Open Trading
Open Trading™ Open Trading Growth Highlights 160,000 Trade Volume Trade Count 70 $948 million average daily volume, up 56% from $608 million in 1Q16 140,000 60 58% Trade Volume ($ in billion) Trade Count ( # of trades) 120,000 Q1 YoY 50 Approximately 145,000 total Open Trading transactions compl
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 120 90 900 Emerging Market Volume ($ billions) Q1 YoY Growth 80 850 100 Eurobo
Slide 7: Quarterly Volume and Market Share
Quarterly Volume Global U.S. High-Grade U.S. High-Grade Volume Market Share Market Share1 400 250 18% 27% 23% U.S. High-Grade Volume ($ billions) 350 Q1 YoY Q1 YoY 17% 300 Growth 200 Growth 16% Market Share 250 ($ billions) 150 15% 200 100 14% 150 13% 100 50 50 12% 0 0 11% 1Q15 2Q15 3Q15 4Q15 1Q16 2
Slide 8: Earnings Performance
Earnings Performance (In thousands, except per share data) ∆ 1Q17 vs. 1Q17 4Q16 1Q16 1Q16 Revenues Commissions $ 94,022 $ 85,519 $ 79,093 18.9% Information and Post-trade Services 7,816 7,538 7,779 0.5% Investment and Other Income 2,053 1,379 1,701 20.7% Total Revenues 103,891 94,436 88,573 17.3% Ex
Slide 9: Commission Revenue Detail
Commission Revenue Detail %Δ ($ in thousands) 1Q17 vs. 1Q17 4Q16 1Q16 1Q16 Commissions Transaction Fees U.S. High-Grade $ 35,523 $ 34,191 $ 31,568 12.5% 1 Other Credit 41,695 35,048 30,921 34.8% 2 Liquid Products 630 699 620 1.6% Total Transaction Fees 77,848 69,938 63,109 23.4% Distribution Fees U.
Slide 10: Expense Detail
Expense Detail ($ in thousands) %∆ 1Q17 vs. 1Q17 4Q16 1Q16 1Q16 Expenses Employee Comp. and Benefits $ 27,401 $ 22,529 $ 24,527 11.7% Depreciation and Amortization 4,693 4,292 4,681 0.3% Technology and Communications 4,585 4,449 4,304 6.5% Professional and Consulting 4,279 4,726 3,862 10.8% Occupanc
Slide 11: Balance Sheet Data
Balance Sheet Data ($ in thousands) % Δ vs. 3/31/2017 12/31/2016 12/31/2016 Assets Cash and Cash Equivalents $ 137,655 $ 168,243 (18.2%) Investments 218,559 194,404 12.4% Accounts Receivable, net 56,642 50,668 11.8% All Other Assets 117,858 114,727 2.7% Total Assets $ 530,714 $ 528,042 0.5% Liabilit
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 Global client footprint continues to expand across all products ©2017 MarketAxess Holdi