Marketaxess Holdings, Inc. · NASDAQ:MKTX
Marketaxess — Q1 2016 Earnings Presentation
12 slides from Marketaxess's earnings presentation, Apr 27, 2016
Slide 1: 1Q16 Conference Call & Webcast
1Q16 CONFERENCE CALL & WEBCAST April 27, 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: 1Q16 Summary
1Q16 Summary1 Earnings Business Highlights Record revenues of $88.6 million, up 15.4% Record total trading volume up 27.2% Estimated U.S. high-grade market share2 of 14.9%, up Expenses of $44.2 million, up 15.5% from 13.7% Record pre-tax income of $44.4 million, up 15.2% Record quarter f
Slide 4: Quarterly Volume and Market Share
Quarterly Volume Global U.S. High Grade U.S. High Grade Volume MarketShare Market Share1 350 27% 200 22% 16% Q1 YOY Q1 YOY U.S. High Grade Volume ($ billions) 300 180 Growth Growth 160 15% 250 140 Market Share 200 120 14% ($ billions) 100 150 80 13% 100 60 40 12% 50 20 0 0 11% 1Q14 2Q14 3Q14 4Q14 1Q
Slide 5: Market Conditions
Market Conditions U.S. High-Grade & High-Yield TRACE1 Liquid U.S. Corporate Index (LUCI) 1Q YOY Growth Benchmark Spread 3 Month Rolling Spread Volatility 2,000 HG TRACE HY TRACE 200 2.9% HG TRACE: 12% LUCI 3 Month Rolling Spread Volatility 1,750 HY TRACE: 9% 180 Total HG and HY TRACE ($ billions) LU
Slide 6: Open Trading
Open Trading™ Open Trading Growth Highlights 90,000 Trade Volume Trade Count 40 $608 million average daily volume, up 106% from 80,000 35 1Q15 and up 36% from 4Q15 Trade Volume ($ in billion) 70,000 30 60,000 Over 82,000 total Open Trading transactions 25 ( # of trades) 50,000 completed in 1Q16,
Slide 7: European Progress
European Progress European Client Volumes Highlights 70 46% European client volume up 46%; Eurobond volume up 60 Q1 YOY 56% 50 Growth European dealers who joined since 2015 now 40 represent 9% of Eurobond volume ($ billions) 30 Open Trading Progress - 65% of Eurobond orders 20 submitted to Mar
Slide 8: Earnings Performance
Earnings Performance (In thousands, except per share data) ∆ 1Q16 vs. 1Q16 4Q15 1Q15 1Q15 Revenues Commissions $ 79,093 $ 67,613 $ 67,018 18.0% Information and Post-trade Services 7,779 7,678 7,679 1.3% Investment and Other Income 1,701 1,353 2,074 (18.0%) Total Revenues 88,573 76,644 76,771 15.4% E
Slide 9: Commission Revenue Detail
Commission Revenue Detail %Δ ($ in thousands) 1Q16 vs. 1Q16 4Q15 1Q15 1Q15 Commissions Transaction Fees U.S. High-Grade $ 31,568 $ 24,686 $ 26,887 17.4% 1 Other Credit 30,921 26,002 23,753 30.2% 2 Liquid Products 620 606 701 (11.6%) Total Transaction Fees 63,109 51,294 51,341 22.9% Distribution Fees
Slide 10: Expense Detail
Expense Detail ($ in thousands) %∆ 1Q16 vs. 1Q16 4Q15 1Q15 1Q15 Expenses Employee Comp. and Benefits $ 24,527 $ 21,087 $ 21,174 15.8% Depreciation and Amortization 4,681 4,685 4,612 1.5% Technology and Communications 4,304 3,720 4,338 (0.8%) Professional and Consulting 3,862 3,540 3,282 17.7% Occupa
Slide 11: Balance Sheet Data
Balance Sheet Data ($ in thousands) % Δ vs. 3/31/2016 12/31/2015 12/31/2015 Assets Cash and Cash Equivalents $ 137,995 $ 199,728 (30.9%) Investments 147,226 84,706 73.8% Accounts Receivable, net 52,755 40,459 30.4% All Other Assets 113,866 114,148 (0.2%) Total Assets $ 451,842 $ 439,041 2.9% Liabili
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 accelerates Expanding global product footprint ©2016 MarketAxess Holdings Inc. MarketAxess and the MarketAxess logo are trademarks of the