MarketAxess Reports Higher Net Income and Volume in 2023, Fueled by X-Pro Platform

trading platform MarketAxess Holdings Inc. announced today (Wednesday) its
financial results for the fourth quarter (Q4) and the full 2023. The company
reported solid revenue growth of almost 11%, along with higher trading volumes
across several products and regions.</p><p>MarketAxess Reports Solid
Growth in Q4 and Full 2023 Results</p><p>Total
revenues for the fourth quarter rose 10.9% year-over-year (YoY) to $197.2
million. This includes revenues from the acquisition of Pragma and a positive
impact from foreign currency fluctuations. Net income increased 18% to $69.6
million, while diluted EPS was up 16.5% to $1.84. </p><p>For 2023,
MarketAxess posted a 5% YoY increase in total revenues to $753 million. Net
income rose 3% to $258 million and diluted EPS grew 3% to $6.85. Also, <a href="" target="_blank" rel="follow">the results were visibly better than in the Q3 2023</a>.</p><p>“In 2023,
we made significant strides in enhancing our client franchise, increasing
client engagement with MarketAxess X-Pro, our new trading platform, and
delivering solid growth in ADV across new product areas and regions,” commented
Chris Concannon, <a href="" target="_blank" rel="follow">the CEO of MarketAxess</a>.</p><p>The growth
was driven by record revenues in information services, up 14.6% in the quarter,
as well as post-trade services revenues, up 24.1%. MarketAxess also benefited
from solid volume increases internationally, with average daily trading volume
(ADV) from emerging markets and Eurobonds rising 10.8%.</p><p>Municipal
bonds ADV hit a record high in the quarter, climbing 7.8% YoY. Portfolio
trading volumes also reached record levels, jumping 35.8% from the prior year. The ADV for
the last quarter was significantly boosted by results from November when it
reached <a href="" target="_blank" rel="follow">an all-time high</a> with $303 billion in credit trading volume in a single
month. <a href="" target="_blank" rel="follow">December’s results</a> also did not disappoint investors’ expectations.</p><p>Future Outlook</p><p>In terms of
outlook, MarketAxess provided full-year 2024 revenue guidance for the recent
acquisition of Pragma in the mid-single digit percentage range compared to
Pragma's Q4 2023 revenue base. The company expects total expenses for 2024
between $480 million and $500 million, including Pragma operating expenses
estimated at $33-35 million.</p><p>“We are
entering 2024 with a more favorable backdrop for fixed-income, and our client
franchise has never been stronger,” the CEO added. “We are focused on realizing
the full potential of the investments we have made to drive continued growth in
the quarters ahead.”</p><p>Overall,
MarketAxess delivered a positive quarter to finish 2023, with higher trading
volumes across several products and geographies. The company saw strong
adoption of its new trading platform MarketAxess X-Pro and continues working to
drive growth from its investments.</p><p>In an announcement by MarketAxess in November 2023, the company revealed that Christopher Gerosa, the Chief Financial Officer, will leave his position on 31 January 2024. Gerosa plans to move into a new position at a technology solutions company that serves the commercial banking industry.</p>

This article was written by Damian Chmiel at

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