Marketaxess Holdings, Inc. · NASDAQ:MKTX
Marketaxess — Q2 2016 Earnings Presentation
12 slides from Marketaxess's earnings presentation, Jul 28, 2016
Slide 1: 2Q16 Conference Call & Webcast
2Q16 CONFERENCE CALL & WEBCAST July 28, 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: 2Q16 Summary
2Q16 Summary1 Earnings Business Highlights Record revenues of $96.6 million, up 28.0% Record total trading volume up 38.2% Record estimated market share for U.S. high-grade of 16.1%2 Expenses of $46.1 million, up 19.9% and high-yield of 7.1% Record pre-tax income of $50.6 million, up 36.4%
Slide 4: Market Conditions
Market Conditions U.S. High-Grade & High-Yield TRACE1 Liquid U.S. Corporate Index (LUCI) 2Q YOY Growth HG TRACE HY TRACE Benchmark Spread 3 Month Rolling Spread Volatility 2,000 180 2.9% LUCI 3 Month Rolling Spread Volatility HG TRACE: 17% Total HG and HY TRACE ($ billions) 1,750 LUCI Benchmark Spre
Slide 5: Open Trading Growth Highlights
Open Trading™ Open Trading Growth Highlights 100,000 Trade Volume Trade Count 45 $639 million average daily volume, up 86% from 2Q15 90,000 40 80,000 Over 93,000 total Open Trading transactions Trade Volume ($ in billion) Trade Count ( # of trades) 35 70,000 completed in 2Q16, up from 38,000 in
Slide 6: European Progress
European Progress European Client Volumes Trading Highlights Eurobonds Emerging Markets U.S. Credit 80 European client volume up 101% Q2 YOY Growth 70 Eurobonds: 107% Share gains driving Eurobond volume growth; Emerging Markets: 79% 60 U.S. Credit: 125% estimated Eurobond market volumes as repor
Slide 7: Quarterly Volume
Quarterly Volume Global U.S. High-Grade U.S. High-Grade Volume Market Share Market Share1 350 200 17% U.S. High-Grade Volume ($ billions) 300 38% 180 27% Q2 YOY Q2 YOY 16% 160 250 Growth 140 Growth 15% Market Share ($ billions) 200 120 100 14% 150 80 13% 100 60 40 50 12% 20 0 0 11% 2Q14 3Q14 4Q14 1Q
Slide 8: Earnings Performance
Earnings Performance (In thousands, except per share data) ∆ 2Q16 vs. 2Q16 1Q16 2Q15 2Q15 Revenues Commissions $ 86,239 $ 79,093 $ 66,412 29.9% Information and Post-trade Services 8,586 7,779 7,632 12.5% Investment and Other Income 1,814 1,701 1,447 25.4% Total Revenues 96,639 88,573 75,491 28.0% Ex
Slide 9: Commission Revenue Detail
Commission Revenue Detail %Δ ($ in thousands) 2Q16 vs. 2Q16 1Q16 2Q15 2Q15 Commissions Transaction Fees U.S. High-Grade $ 35,771 $ 31,568 $ 26,439 35.3% 1 Other Credit 33,826 30,921 23,477 44.1% 2 Liquid Products 678 620 690 (1.7%) Total Transaction Fees 70,275 63,109 50,606 38.9% Distribution Fees
Slide 10: Expense Detail
Expense Detail ($ in thousands) %∆ 2Q16 vs. 2Q16 1Q16 2Q15 2Q15 Expenses Employee Comp. and Benefits $ 25,815 $ 24,527 $ 20,593 25.4% Depreciation and Amortization 4,540 4,681 4,603 (1.4%) Technology and Communications 4,277 4,304 3,967 7.8% Professional and Consulting 4,245 3,862 3,011 41.0% Occupa
Slide 11: Balance Sheet Data
Balance Sheet Data ($ in thousands) % Δ vs. 6/30/2016 12/31/2015 12/31/2015 Assets Cash and Cash Equivalents $ 153,275 $ 199,728 (23.3%) Investments 146,330 84,706 72.8% Accounts Receivable, net 62,860 40,459 55.4% All Other Assets 114,650 114,148 0.4% Total Assets $ 477,115 $ 439,041 8.7% Liabiliti
Slide 12: Summary
Summary Record revenue, pre-tax income and EPS Record trading volume and strong market share gains across each of our core products Open Trading momentum continues Growing revenue and earnings momentum from the European region ©2016 MarketAxess Holdings Inc. MarketAxess and the MarketAxess l