MKTX FY 2018 Earnings Report — MarketAxess Holdings Inc. Revenue & Financial Results | Market Cap Arena

MarketAxess Holdings Inc.MKTX

FY 2018 Earnings

Reported March 18, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$436M	—	$397M	—	9.6%
Op. Income	$213M	—	$202M	—	5.4%
Gross Margin	82.1%	—	83.8%	—	-1.7pp
Net Margin	39.7%	—	37.3%	—	2.4pp
EPS (Diluted)	$4.57	—	$3.89	—	17.5%
Free Cash Flow	$176M	—	$142M	—	23.8%

Revenue Flow

Item	Amount
REVENUE	$436M
Cost of Revenue	$78M
GROSS PROFIT	$358M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$145M
Operating Expenses	$145M
Cost & Expenses	$223M
OPERATING INCOME	$213M
Interest Income	$6M
Interest Expense	$0
Other Income/Expenses	$6M
INCOME BEFORE TAX	$218M
Income Tax Expense	$45M
Net Income from Continuing Ops	$173M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$173M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$173M
D&A	$23M
EBIT	$218M
EBITDA	$241M
EPS	$5
EPS Diluted	$5

Income Statement

Item	Amount
REVENUE	$436M
Cost of Revenue	$78M
GROSS PROFIT	$358M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$145M
Operating Expenses	$145M
Cost & Expenses	$223M
OPERATING INCOME	$213M
Interest Income	$6M
Interest Expense	$0
Other Income/Expenses	$6M
INCOME BEFORE TAX	$218M
Income Tax Expense	$45M
Net Income from Continuing Ops	$173M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$173M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$173M
D&A	$23M
EBIT	$218M
EBITDA	$241M
EPS	$5
EPS Diluted	$5

Cash Flow Statement

Item	Amount
Net Income	$173M
Depreciation & Amortization	$23M
Stock-Based Compensation	$16M
Deferred Income Tax	-$1M
Other Non-Cash Items	$2M
Change in Working Capital	$11M
OPERATING CASH FLOW	$224M
Capital Expenditure	-$48M
Acquisitions (Net)	$12M
Purchases of Investments	-$337M
Sales/Maturities of Investments	$334M
Other Investing Activities	-$12M
NET CASH FROM INVESTING	-$50M
Net Debt Issuance	$0
Common Stock Repurchased	-$25M
Common Dividends Paid	-$62M
Other Financing Activities	$0
NET CASH FROM FINANCING	-$93M
FREE CASH FLOW	$176M
Net Change in Cash	$79M

Balance Sheet

Item	Amount
Cash & Equivalents	$246M
Short-Term Investments	$0
Net Receivables	$58M
Inventory	-$22M
Other Current Assets	$5M
TOTAL CURRENT ASSETS	$304M
PP&E (Net)	$63M
Goodwill	$60M
Intangible Assets	$3M
Long-Term Investments	$240M
Tax Assets	$3M
Other Non-Current Assets	$22M
TOTAL NON-CURRENT ASSETS	$392M
TOTAL ASSETS	$696M
Account Payables	$29M
Short-Term Debt	$0
Deferred Revenue	$3M
Other Current Liabilities	-$68M
TOTAL CURRENT LIABILITIES	$49M
Long-Term Debt	$0
Deferred Revenue NC	$3M
Deferred Tax Liabilities	-$3M
Other Non-Current Liabilities	$66M
TOTAL NON-CURRENT LIABILITIES	$39M
TOTAL LIABILITIES	$88M
Common Stock	$122.0K
Additional Paid-In Capital	$342M
Retained Earnings	$463M
Treasury Stock	-$185M
Accum. Other Comp. Income	-$12M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$608M
Minority Interest	-$246M
TOTAL EQUITY	$362M
TOTAL LIABILITIES & EQUITY	$696M
Total Debt	$22M
Net Debt	-$224M