MarketAxess Ends 2023 with Robust Financial Performance, with Q4 Revenue up 10.9%

MarketAxess Holdings Inc.​, the operator of a leading electronic trading platform for fixed-income securities, has delivered a robust financial results for the fourth quarter of 2023, with multiple metrics setting a new high.

Total expenses for Q4 2023 surged 19.9% compared to Q4 2022 though, total revenues registered an increase of 10.9% to $197.2 million. Diluted EPS grew from $1.58 to $1.84. Net income increased 17.6% to $69.6 million.

Portfolio trading volume reached a record during this period, standing at $41.8 billion, up 35.8% year-over-year. Besides, the company booked record post-trade revenue, and information services revenue, which were $11.0 million, $11.9 million, respectively. Active client firms and automated and algorithmic trading volume also hit a record. Total trading volume and ADV for the quarter declined slightly to $1.8 trillion and $29.6 billion respectively, as rates trading went down.

MarketAxess also unveiled the results for the full year of 2023. The firm generated total revenues of $752.5 million, up 4.8% compared to 2022. Total expenses went up 11.8% to $437.5 million. Diluted EPS recorded a modest increase from $6.65 to $6.85. Both total trading volume and ADV decreased 7.3%, to $7.8 trillion and 31.2 billion, respectively.

"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, CEO of MarketAxess.

"We are entering 2024 with a more favorable backdrop for fixed-income, and our client franchise has never been stronger. We are focused on realizing the full potential of the investments we have made to drive continued growth in the quarters ahead."