MarketAxess: A Strong Finish to 2024, Setting the Stage for 2025

As we approach the end of 2024, MarketAxess (Nasdaq: MKTX), a leading electronic trading platform operator for fixed-income securities, is set to announce its fourth quarter and full-year financial results on Thursday, February 6, 2025. The company will host a conference call at 10:00 a.m. ET, featuring CEO Chris Concannon, Global Head of Trading Solutions Richard Schiffman, and CFO Ilene Fiszel Bieler, who will discuss the company's financial performance, strategic updates, and outlook for the future.

Throughout 2024, MarketAxess has demonstrated strong financial performance, driven by its strategic expansion into international markets and new product offerings. In the third quarter of 2024, the company reported a 20% increase in total revenues to $206.7 million, driven by a 24% increase in U.S. high-grade commission revenue and a 20% increase in emerging markets and Eurobonds commission revenue. Additionally, the company saw a 21% increase in services revenue and a 30% increase in diluted earnings per share (EPS) to $1.90 on net income of $71.5 million.

MarketAxess' strategic expansion into international markets and new product offerings has contributed significantly to its financial performance in 2024. The company's international roll-out of X-Pro has delivered several hundred basis points in market share gains in U.S. credit portfolio trading compared to the second quarter of 2024. The company's international active client firms increased by 2% year-over-year (YoY) to 1,079 in Q3 2024, reflecting the growing demand for its services in global markets. Emerging markets and Eurobonds delivered a 14.8% increase in average daily volume (ADV) in Q1 2024, contributing to the company's strong financial results.

The company's new product offerings, such as the targeted block trading solutions launched in Q3 2024, have also driven revenue growth. The initial roll-out of X-Pro to the international client base has driven record portfolio trading ADV of $1.1 billion in Q3 2024. The company's AI-powered pricing engine, CP+, has been expanded to cover municipal bonds, enhancing its product suite and driving further growth.

As we look ahead to 2025, MarketAxess is well-positioned to continue its strong financial performance. The company's strategic priorities, including the continued roll-out of X-Pro, the launch of targeted block trading solutions, and the enhancement of dealer liquidity solutions, are expected to drive increased market share and higher levels of revenue growth for shareholders in the future.

In summary, MarketAxess' strong financial performance in 2024, driven by its strategic expansion into international markets and new product offerings, sets the stage for a successful 2025. As the company prepares to announce its fourth quarter and full-year financial results, investors can expect a comprehensive overview of the company's performance, strategic updates, and outlook for the future.