MarketAxess Holdings Inc. (MKTX) Q1 2023 Earnings Call Transcript

MarketAxess Holdings Inc. (NASDAQ:MKTX) Q1 2023 Earnings Conference Call April 26, 2023 10:00 AM ET

Company Participants

Steve Davidson – Head-Investor Relations

Chris Concannon – Chief Executive Officer

Chris Gerosa – Chief Financial Officer

Rick McVey – Founder and Executive Chairman

Conference Call Participants

Rich Repetto – Piper Sandler

Chris Allen – Citi

Kyle Voigt – KBW

Alex Blostein – Goldman Sachs

Brian Bedell – Deutsche Bank

Daniel Fannon – Jefferies

Simon Clinch – Atlantic Equities

Michael Cyprys – Morgan Stanley

Patrick O'Shaughnessy – Raymond James

Operator

Ladies and gentlemen, thanks for standing by. Welcome to the MarketAxess First Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] And as a reminder, this conference call is being recorded on April 26, 2023.

I would now like to turn the call over to Mr. Steve Davidson, Head of Investor Relations at MarketAxess. Please go ahead, sir.

Steve Davidson

Thank you, Bo. Good morning, and welcome to the MarketAxess first quarter 2023 earnings conference call. For the call, Chris Concannon, Chief Executive Officer, will provide you with an update on key business trends; Chris Gerosa, Chief Financial Officer, will walk you through the financial results for the quarter; and then Rick McVey, Founder and Executive Chairman, will provide an update on the market environment and the long-term opportunity ahead for the company.

Before I turn the call over to Chris Concannon, let me remind you that today's call may include forward-looking statements. These statements represent the company's belief regarding future events that, by their nature, are uncertain. The company's actual results and financial condition may differ materially from what is indicated in those forward-looking statements. For a discussion of some of the risks and factors that could affect the company's future results, please see the description of risk factors in our annual report on Form 10-K for the year ended December 31, 2022. I would also direct you read the forward-looking statement disclaimer in our quarterly earnings release, which was issued earlier this morning and is now available on our website.

Now let me turn the call over to Chris Concannon.

Chris Concannon

Good morning. I'm very pleased to share with you our strong first quarter results on my first earnings call as CEO of MarketAxess. We continue to execute our growth strategy during the quarter and delivered record revenues which increased 9% or 11% on a constant currency basis. Earnings per share grew 15%, reflecting the continued improvement in our underlying revenue and earnings growth trends, as shown on Slide 3. These strong results were broad-based across products, protocols and geographies, reflecting the powerful diversification of our model driven by the investments we have made over the past several years. Specifically, we delivered record levels of average daily trading volumes across nearly all products. The fourth consecutive quarter of strong estimated market share gains, record levels of commission revenue across U.S. high yield, emerging markets and eurobonds, record levels of revenue and trading volume contribution from our international businesses and record levels of volume from newer client segments, new initiatives and record levels of automation. In summary, we had a very strong quarter with records across key products and protocols.