MarketAxess reports mixed financial results for Q1 2022
MarketAxess Holdings Inc. (Nasdaq: MKTX), an operator of electronic trading platform for fixed-income securities, has reported its quarterly results for the period ending March 31, 2022.
The group had continued its 2021 momentum heading into the new year, but it reported an uneven performance across key measures, which included revenues, profits, and trading volumes.
MarketAxess reported its Q1 revenues at $186.1 million, which marks its second highest level ever of quarterly revenue. This listed firm attributes the solid figure to a record activity across US Treasury, emerging markets and municipal bond revenue. However, the revenue for the three months through March 2022 was 5 percent lower than it was in the same period of 2021.
On the bottom line scale, MarketAxess reported its gross profit at $105.8 million in EBITDA and EBITDA margin of 56.8 percent. These metrics were higher by a quarter when compared to the Q4 2021. But on a year-over-year basis, the core profit was lower by 7 percent from a year ago.
By and large, the broker underwent an oscillating string of results throughout the fiscal year, though taken as a whole it managed to report a record trading average daily volume (ADV) of $37.5 billion. This figure was up 22 percent, driven principally by record US Treasury ADV of $25.1 billion; credit ADV of $12.0 billion, with record emerging markets ADV of $3.1 billion and record municipal bond ADV of $288 million.
Per its own statistics, MarketAxess delivered $201 million in estimated transaction cost savings for clients through its liquidity pool “Open Trading.” The company’s board of directors declared a quarterly cash dividend of $0.70 per share, payable on May 18, 2022.
“Record trading volumes this quarter surpassed pandemic level highs, driven principally by strong sequential improvement in credit and record U.S. Treasury volumes. This strong performance reflects the excellent strides we have made in executing our growth strategy, expanding our geographic diversification and establishing a broader foundation for growth,” said Rick McVey, chairman and CEO of MarketAxess.
“We have delivered these results as market conditions continue to improve, with wider spreads and increased spread volatility driving significant cost savings for our clients through Open Trading, our differentiated liquidity pool. We believe we are well positioned to capture the global e-trading opportunity ahead of us due to our expanded global product footprint, improving market conditions and our continued focus on trading automation and all-to-all trading.”
Based in New York, MarketAxess operates an electronic trading platform for fixed-income securities as well as provides market data and post-trade services for the fixed-income markets.