U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2004

Commission file number 0-28191

eSpeed, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware				13-4063515
(State or Other Jurisdiction of Incorporation or Organization)				(I.R.S. Employer Identification No.)

135 East 57th Street

(Address of Principal Executive Offices)

New York, New York 10022

(City, State, Zip Code)

(212) 938-5000

(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes             No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes             No

As of April 21, 2004, the registrant had 32,252,743 shares of Class A common stock, $0.01 par value, and 23,889,270 shares of Class B common stock, $0.01 par value, outstanding.

eSpeed, Inc. and Subsidiaries
Quarterly Report on Form 10-Q

TABLE OF CONTENTS

PART I. — FINANCIAL INFORMATION

ITEM 1. Financial Statements					Page
Condensed Consolidated Statements of Financial Condition: March 31, 2004 (unaudited) and December 31, 2003					3
Condensed Consolidated Statements of Income (unaudited): Three Months Ended March 31, 2004 and March 31, 2003					4
Condensed Consolidated Statements of Cash Flows (unaudited): Three Months Ended March 31, 2004 and March 31, 2003					5
Notes to Condensed Consolidated Financial Statements (unaudited)					6
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations					15
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk					21
ITEM 4. Controls and Procedures					21
PART II. — OTHER INFORMATION
ITEM 2. Changes in Securities and Use of Proceedsand Issuer Purchases of Equity Securities					21
ITEM 6. Exhibits and Reports on Form 8-K					22
Signatures					23
Exhibit Index					24

2

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PART I. — FINANCIAL INFORMATION
ITEM 1.     Financial Statements

eSpeed, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)

				March 31, 2004				December 31, 2003
				(Unaudited)
Assets
Cash and cash equivalents				$	232,988			$	228,500
Fixed assets, net					41,638				34,467
Investments					12,317				11,449
Intangible assets, net					18,380				18,927
Receivable from related parties					756				1,518
Other assets					3,119				2,707
Total assets				$	309,198			$	297,568
Liabilities and Stockholders' Equity
Liabilities:
Payable to related parties				$	2,064			$	6,323
Accounts payable and accrued liabilities					21,991				19,560
Total liabilities					24,055				25,883
Commitments and contingencies (Note 11)
Stockholders' Equity:
Preferred stock, par value $0.01 per share; 50,000,000 shares authorized, 600 and 8,000,600 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively					—				80
Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 32,400,724 and 30,953,867 shares issued at March 31, 2004 and December 31, 2003, respectively					324				310
Class B common stock, par value $.01 per share; 100,000,000 shares authorized; 23,889,270 and 25,139,270 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively					239				251
Additional paid-in capital					289,988				287,593
Unamortized expense of business partner and non-employee securities					(748	)			(1,192	)
Treasury stock, at cost: 186,399 shares of Class A common stock at March 31, 2004 and December 31, 2003, respectively					(2,094	)			(2,094	)
Accumulated deficit					(2,566	)			(13,263	)
Total stockholders' equity					285,143				271,685
Total liabilities and stockholders' equity				$	309,198			$	297,568

See notes to the condensed consolidated financial statements.

3

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eSpeed, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except per share data)

				Three Months Ended March 31,
				2004				2003
Revenues:
Transaction revenues with related parties
Fully electronic transactions				$	30,527			$	22,510
Voice-assisted brokerage transactions					6,026				5,161
Screen-assisted open outcry transactions					231				49
Total transaction revenues with related parties					36,784				27,720
Software Solutions fees from related parties					4,112				3,650
Software Solutions and licensing fees from unrelated parties					2,998				2,131
Interest income					744				542
Total revenues					44,638				34,043
Expenses:
Compensation and employee benefits					9,315				8,844
Occupancy and equipment					8,482				7,177
Professional and consulting fees					933				1,111
Communications and client networks					1,613				1,594
Marketing					386				334
Administrative fees to related parties					2,957				2,578
Amortization of business partner and non-employee securities					444				705
Other					2,947				2,320
Total expenses					27,077				24,663
Income before income tax provision					17,561				9,380
Income tax provision (benefit)					6,866				(95	)
Net income				$	10,695			$	9,475
Earnings per share:
Per share data:
Basic				$	0.19			$	0.17
Diluted				$	0.18			$	0.17
Basic weighted average shares of common stock outstanding					56,074				55,096
Diluted weighted average shares of common stock outstanding					58,253				57,372

See notes to condensed consolidated financial statements

4

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eSpeed, Inc and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

				Three months ended March 31,
				2004				2003
Cash flows from operating activities:
Net income				$	10,695			$