MarketAxess registers slight rise in revenues in Q2 2022
MarketAxess Holdings Inc. (NASDAQ:MKTX) today announced financial results for the second quarter of 2022.
Revenues for the three months to end-June 2022 amounted to $182.2 million, up 3% from the year-ago period.
Combined information and post-trade services revenue of $18.5 million decreased $1.2 million, or 6%, compared to the prior year. The decrease in revenue was principally driven by the impact of currency fluctuations and planned customer attrition in connection with the Regulatory Reporting Hub integration. Adjusting for foreign currency fluctuations, combined information and post-trade services revenue would have increased approximately 3%.
Total expenses for the second quarter of 2022 amounted to $97.4 million, up 9% on continued investment in the business.
Diluted EPS of $1.78, includes an $0.11 per share benefit from foreign currency transaction gains.
The Company has $324.8 million in cash, cash equivalents and investments; there are no outstanding borrowings under the Company’s credit facility.
A total of 178,801 shares were repurchased in the quarter at a cost of $48.7 million. A total of $100.0 million remains under the current authorization by the Company’s Board of Directors.
The Board declared a quarterly cash dividend of $0.70 per share, payable on August 17, 2022 to stockholders of record as of the close of business on August 3, 2022.
Rick McVey, Chairman of the Board and CEO of MarketAxess, commented:
“Record levels of market share in the quarter reflect the strides that we have made over the past year in executing our growth strategy, expanding our geographic diversification and establishing a broader global foundation for growth.
The macro backdrop is now much improved, with credit spreads and credit spread volatility moving back into more historical ranges, driving increased estimated cost savings for clients through Open Trading®, our unique liquidity pool.
We believe that our strong growth in trading volume, broad-based market share gains, both year-over-year and sequentially, and increasing momentum in new product areas, including U.S. Treasuries and municipal bonds, are driving our improved performance.”