MarketAxess(MKTX) - 2024 Q4 - Annual Results

Financial Performance - Record full year revenue of $817 million, up 9$202.4 million, with a 3% year-over-year increase[6] - Total revenues for the year ended December 31, 2024, were $817.1 million, a 9$752.5 million in 2023[36] - Net income for the year ended December 31, 2024, was $274.2 million, reflecting a 6$258.1 million in 2023[36] - Total commission revenue for Q4 2024 was $174,766,000, a 2$171,891,000 in Q4 2023, and for the year ended December 31, 2024, it reached $711,710,000, up 7$662,964,000 in 2023[37] - Net income for Q4 2024 was $65,139,000, a decrease of 6$69,627,000 in Q4 2023, while net income margin was 32.2%[41] - EBITDA for Q4 2024 was $96,734,000, down from$98,704,000 in Q4 2023, resulting in an EBITDA margin of 47.8%[41] - Free cash flow for Q4 2024 was $113,367,000, an increase from$94,888,000 in Q4 2023[41] Revenue Sources - Commission revenue from emerging markets and Eurobonds grew by 15%, reflecting strong geographic diversification[6] - Record rates commission revenue increased by 53% in Q4 2024[6] - U.S. high-grade commission revenue grew by 9%, offsetting a 17% decline in U.S. high-yield commission revenue[6] - The Company reported a 41% increase in technology services revenue for the fourth quarter of 2024 compared to the same period in 2023[36] Market and Trading Activity - Emerging markets ADV increased by 18% year-over-year, reaching $3.5 billion[14] - Total rates ADV reached a record$27.1 billion, up 64% compared to the prior year[15] - Total trading volume for Q4 2024 was $2,549,919,000, a 39$1,839,657,000 in Q4 2023, with an average daily volume (ADV) of $41,030,000[38] - U.S. government bonds trading volume increased by 61$1,608,995,000 in Q4 2024, compared to $998,542,000 in Q4 2023[38] Financial Position - As of December 31, 2024, the Company had$698.6 million in cash and equivalents, an increase from $602.5 million as of September 30, 2024, and$575.7 million as of December 31, 2023[25] - Total assets as of December 31, 2024, were $1,789,216,000, down from$2,015,067,000 as of December 31, 2023[40] - Total liabilities decreased to $400,556,000 as of December 31, 2024, from$722,104,000 in the previous year[40] - Stockholders' equity increased to $1,388,660,000 as of December 31, 2024, compared to$1,292,963,000 as of December 31, 2023[40] Future Outlook - Services revenue is expected to grow in the mid-single digits percentage for the full year 2025[25] - Total expenses for 2025 are expected to be in the range of $505.0 million to$525.0 million, indicating an approximate 8% increase based on the midpoint of the guidance[25] - The effective tax rate for 2025 is projected to be between 23.5% and 24.5%[25] - Capital expenditures to support new protocols and product enhancements are expected to be in the range of $65.0 million to$70.0 million[25] Shareholder Returns - The Company declared a quarterly cash dividend of $0.76 per share, payable on March 5, 2025[25] - For the full year 2024, the Company repurchased a total of 341,477 shares at a cost of$75.0 million, with $220.0 million remaining under the Board's authorization as of January 31, 2025[25] Employee Metrics - Employee headcount increased to 891 as of December 31, 2024, up from 881 a year earlier[24] Pricing Metrics - Average variable transaction fee per million for credit decreased by 4$149.59 in Q4 2024, and for the year, it decreased by 5% to $150.26[37]