JS Earnings Call Notes 7.22.2015 – iRobot, Interactive Brokers, MarketAxess

Jeremy S., an investment analyst here in Southern California, has started to contribute to Avondale’s company notes database. Below are quotes from some of the calls that Jeremy has read this week.

 

iRobot (IRBT) CEO Colin Angle said people bought Roomba vacuum cleaners for their parents on Mothers Day & Fathers Day

“Promotions we ran for Mother’s Day and Father’s Day coupled with our new marketing campaign in the U.S. helped drive 24% increase in domestic revenue over Q2 of last year and strong sell through at our retailers.”

iRobot (IRBT) CEO Colin Angle told investors that a new home navigating robot will be launched in the 2nd half of the year

In addition, the long-anticipated navigating home robot will be launched in the second half as promised. I’m not going to say anything more about the product, launch timing or features but we are very excited about it.  ”

iRobot (IRBT) CEO Colin Angle emphasized that their business strategy is to focus on the premium end of the market (similar to Apple) 

We’ve quite rapidly taken over the premium price point category, which is our business model.  There is a significant lower price robot vacuum cleaning segment which we do not compete in nor do we plan on competing in, that is in existence to a larger degree than it exists in other nations. So that’s a interesting, unique feature of the China market. But we are very pleased by the growth we are seeing and we are succeeding with our strategy of taking over that higher end premium position.”

 

 

 

Interactive Brokers (IBKR) CEO Thomas Petterfly said his firm is benefitting from the trend of investors searching for investment opportunities around their globe irrespective of the customer’s current location

“IBKR is a global broker. Our special strength in addition to our technology and very low pricing is the fact that any client no matter where they are located they can trade or invest anywhere around the world.  Clients can manage their address of those currencies and asset classes all in one account. Indeed outside of the U.S. very few of our clients open account with us just for the purpose of investing in their local markets. Most of them carry internationally diversified portfolios.  As a result when local market stock perceives as less desirable to investing, people begin to search for international investment capabilities and we experience the rising demand for our services.”

Interactive Brokers (IBKR) CEO Thomas Petterfly pondered what would happen to financial markets in a cybersecurity scenario where the internet went down

I think that security is a very-very big issue and I’m not as much worried about ourselves but I’m worried about the entire infrastructure and what happens if that comes on so we have our backups we are continuously besting it to make sure that it is operational but I’m afraid of what would happen if the whole Internet came down or if the banks operation got disrupted or all kinds of things can happen.”   

 

 

 

 

MarketAxess (MKTX) CEO Rick McVey stated the firm has benefited tremendously from increased corporate bond issuance 

The boom in corporate — over the last five years has lead to a significant increase in a number of corporate bond issuers and a number of corporate bonds outstanding. This has caused the markets become more fragmented with more issues trading each month and less concentration of volume in the actively traded 1,000 corporate bonds.  The increase fragmentation in the market combined with the increased bank regulations places further strength on secondary market liquidity.”