Financial Data and Key Metrics Changes - Cboe Global Markets reported a 5% year-over-year increase in net revenue for Q4 2024, totaling $524.5 million, and a 2% increase in adjusted diluted earnings per share to $2.1 [6][34] - For the full year 2024, net revenue grew 8% to a record $2.1 billion, with adjusted diluted earnings per share increasing 10% to a record $8.61 [7][34] - Adjusted operating expenses rose by 6% for the year, stabilizing margins and leading to a 10% improvement in adjusted diluted earnings per share [8][34] Business Line Data and Key Metrics Changes - The derivatives business saw an 8% increase in organic net revenue, with total volume across Cboe's options exchanges reaching 3.8 billion contracts traded in 2024 [8][18] - Cash and spot markets experienced a 10% increase in organic net revenue, driven by healthy trading volumes across all regional equities markets [10][26] - DataVantage business reported a 7% increase in organic net revenue, supported by technology investments that optimized access and insights [9][30] Market Data and Key Metrics Changes - In the derivatives market, SPX options volume reached a record average daily volume (ADV) of 3.1 million contracts, while VIX options ADV hit a record 830,000 contracts [9][18] - The Europe and Asia Pacific segment delivered a 17% year-over-year net revenue growth in Q4, driven by higher transaction and clearing fees [29][37] - The U.S. equities market saw a 28% increase in net transaction and clearing fees during Q4, contributing to a 10% year-over-year revenue increase for the segment [27][34] Company Strategy and Development Direction - Cboe is focused on leveraging secular trends such as the rise of retail investors and the globalization of markets to enhance its derivatives ecosystem [10][11] - The company plans to invest in technology and education to broaden access to its products, particularly in the retail space [14][21] - Cboe's strategic framework emphasizes organic growth opportunities and disciplined capital allocation, moving away from M&A focus [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pro-business environment under the new administration, despite ongoing geopolitical uncertainties [12][13] - The company anticipates continued growth in options trading and retail investor participation, with a focus on education and access [13][21] - Cboe expects 2025 to be a transformational year, leveraging a strong talent pool to enhance customer access and education [26][32] Other Important Information - Cboe returned $454 million to shareholders in 2024 through dividends and share repurchases, representing 50% of adjusted earnings [46] - The company has a strong balance sheet with $880 million in adjusted cash and a low average leverage ratio of 1.1 times [46][47] - Cboe's technology platform was rebranded as Civo Titanium, reflecting its commitment to delivering best-in-class trading technology [15][91] Q&A Session Summary Question: DataVantage revenue guidance - A participant inquired about the mid to high single-digit revenue growth range for DataVantage, noting it appears weaker than previous guidance. Management clarified that the new guidance aligns with market standards and remains consistent with prior ranges [55][56] Question: Robinhood index options uptake - A question was raised regarding the uptake of index options on Robinhood. Management reported that the rollout exceeded expectations, with increased usage of complex strategies and a focus on joint marketing and education to drive further adoption [58][60][62] Question: AI initiatives - An inquiry was made about AI initiatives to help customers generate revenue. Management indicated that while there are no immediate revenue opportunities, significant internal investments in AI are being made to improve productivity and develop new products [65][67] Question: Capital allocation and M&A strategy - A participant asked about the lack of share repurchases and the current M&A strategy. Management explained that share repurchases remain a key part of the capital allocation strategy, while M&A will focus on strategic and financial sense [70][72][73] Question: U.S. Equities trading hours - A question was posed about the opportunity set for extending U.S. equities trading hours. Management discussed the demand for extended trading hours and the need for regulatory approvals, indicating readiness to implement changes once infrastructure is in place [75][78][80] Question: Price increases for options - A participant inquired about price increases for options and their influence on retail adoption. Management explained that pricing changes are dynamic and focused on balancing market share with revenue optimization, with a strong emphasis on education for retail investors [85][88]

Cboe Global Markets posted record yearly revenue, yet fell short of quarterly estimates for Q4 2024. Derivatives and securities exchange operator Cboe Global Markets (CBOE -0.61%) reported fourth-quarter and full-year 2024 earnings on Friday, Feb. 7, that fell just short of consensus estimates. Its adjusted EPS of $2.10 came in below analyst expectations of $2.13. Net revenue in Q4 stood at $524.5 million, just shy of the predicted $525 million, and showed a 5.1% increase year over year. Despite these sligh ...

Financial Performance - Cboe reported full year 2024 net revenue growth of 8% to a record $2.1 billion, with diluted EPS of $7.21, and record adjusted diluted EPS of $8.61, up 10% year-over-year[3]. - In Q4 2024, net revenue was $524.5 million, up 5% from $499.0 million in Q4 2023, driven by increases in cash and spot markets, Data Vantage, and derivatives markets[5]. - Total revenues for Q4 2024 reached $1,107.6 million, a 14.3% increase from $968.7 million in Q4 2023[30]. - Operating income for the twelve months ended December 31, 2024, was $1,098.4 million, up from $1,057.9 million in 2023, representing a growth of 3.8%[30]. - Adjusted earnings for the three months ended December 31, 2024, were $221.2 million, compared to $218.8 million in 2023, showing a slight increase of 0.1%[39]. - Adjusted diluted earnings per share rose to $2.10 in Q4 2024 from $2.06 in Q4 2023, representing a growth of 1.9%[39]. - Net income allocated to common stockholders for Q4 2024 was $195.6 million, compared to $210.8 million in Q4 2023, reflecting a decrease of 7.4%[30]. Revenue Growth by Segment - Derivatives Markets net revenue increased by 8% in 2024, while Data Vantage and Cash and Spot Markets net revenue grew by 7% and 10%, respectively[3]. - Options net revenue reached $324.3 million in Q4 2024, up 3% from Q4 2023, supported by an 8% increase in multi-listed options trading volumes[7]. - North American Equities net revenue increased by 10% to $94.9 million in Q4 2024, driven by a 28% rise in net transaction and clearing fees[7]. - Europe and Asia Pacific net revenue grew by 17% to $56.2 million in Q4 2024, with European Equities average daily notional value traded increasing by 15%[7]. Future Projections - Cboe anticipates organic total net revenue growth in the mid single-digit range for 2025, with Data Vantage organic net revenue growth expected in the mid to high single-digit range[3]. - Adjusted operating expense guidance for 2025 is set between $837 million and $852 million[3]. - Organic total net revenue growth is expected to be in the mid single digit range in 2025[12]. - Organic net revenue growth from Data Vantage is expected to be in the mid to high single digit range in 2025[12]. - The effective tax rate on adjusted earnings for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent[12]. - Capital expenditures for 2025 are expected to be in the range of $75 to $85 million[12]. Expenses and Liabilities - Total operating expenses for Q4 2024 were $226.0 million, a 10% increase from $205.0 million in Q4 2023, primarily due to higher travel and promotional expenses[5]. - Adjusted operating expenses in 2025 are expected to be in the range of $837 to $852 million, excluding $70 million for amortization of acquired intangible assets[12]. - Depreciation and amortization expense for 2025 is expected to be in the range of $55 to $59 million, excluding amortization of acquired intangible assets[12]. - Total liabilities remained relatively stable at $3,509.5 million in 2024, slightly up from $3,502.5 million in 2023[31]. Cash and Assets - As of December 31, 2024, Cboe had cash and cash equivalents of $920.3 million and total debt of $1.441 billion[10]. - Cash and cash equivalents increased to $920.3 million as of December 31, 2024, from $543.2 million in 2023, marking a significant rise of 69.5%[31]. - Total assets grew to $7,789.1 million in 2024, compared to $7,487.5 million in 2023, indicating an increase of 4.0%[31]. - Adjusted cash for Q4 2024 was $879.5 million, compared to $533.5 million in Q4 2023[44]. Market Performance - Total industry ADV for options in Q4 2024 was 51,635 thousand, compared to 44,410 thousand in Q4 2023[21]. - Total Company Options ADV in Q4 2024 was 15,673 thousand, up from 14,896 thousand in Q4 2023[21]. - Total Options market share in Q4 2024 was 30.4%, a decrease from 33.5% in Q4 2023[21]. - Average daily notional value (ADNV) for global FX in Q4 2024 was $45.6 billion[22]. Other Financial Metrics - The company reported liquidity payments of $365.7 million in Q4 2024, compared to $352.9 million in Q4 2023, an increase of 3.9%[30]. - Market data fees rose to $75.6 million in Q4 2024, up from $72.7 million in Q4 2023, reflecting a growth of 4.0%[32]. - Regulatory fees surged to $151.2 million in Q4 2024, compared to $47.8 million in Q4 2023, marking a significant increase of 215.4%[32]. - The company reported a loss on investments of $14.4 million in Q4 2024, compared to a loss of $1.8 million in Q4 2023[44]. - The impairment of intangible assets related to the Cboe Digital wind down was $81.0 million in 2024[44]. - Acquisition-related costs for the year included $1.3 million in 2024, down from $7.4 million in 2023, indicating a decrease of 82.4%[39].

In its upcoming report, CBOE Global (CBOE) is predicted by Wall Street analysts to post quarterly earnings of $2.15 per share, reflecting an increase of 4.4% compared to the same period last year. Revenues are forecasted to be $528.14 million, representing a year-over-year increase of 5.8%.The consensus EPS estimate for the quarter has been revised 2.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates du ...

Key TakeawaysCboe Global Markets on Monday said it plans to open trading to 24 hours a day, five days a week, for U.S. equities listed on its Cboe EDGX Equities Exchange, pending regulatory approval.The company said it has experienced rising demand from international customers that want expanded access to U.S. markets.The New York Stock Exchange floated expanding its trading day to 22 hours in October. Cboe Global Markets on Monday said it plans to launch 24-hour trading for U.S. equities listed on its Cboe ...

Core Insights - Cboe Global Markets has introduced a new brand identity for its exchange technology platform, now named Cboe Titanium (Cboe Ti), reflecting its commitment to innovation and technology in trading [1][2][4] - The Cboe Ti platform will support trading operations across options, equities, and futures markets globally, with a planned migration of Cboe Canada to this platform on March 3, 2025 [2][4] - Cboe aims to enhance trading efficiency and consistency through a unified technology platform that allows for local optimization and customization for different markets and asset classes [3][4] Technology and Operations - Cboe Ti is designed to provide a consistent trading experience worldwide while allowing for local adaptations to meet specific market needs [3] - The platform has achieved over 99.9% uptime across all 27 global platforms, demonstrating its reliability amid increased trading volumes and market volatility [4] - In 2024, Cboe handled approximately 100 billion quotes and orders daily across its U.S. options exchanges, showcasing its significant market presence [5] Future Developments - Cboe plans to transition its cash-settled bitcoin and ether futures contracts to the Cboe Futures Exchange running on Cboe Ti in the second quarter of 2025, pending regulatory review [2] - The company is committed to ongoing investments in its global technology infrastructure to meet market demand and enhance trading capabilities [4]

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The first cash-settled index options related to the price of spot Bitcoin   Options are based on the new Cboe Bitcoin U.S. ETF Index, designed to reflect the performance of spot Bitcoin ETFs listed on U.S. exchanges Options on standard and mini index, as well as FLEX options contracts, available at launch Provides exposure to spot Bitcoin price movements through options, expanding investor access to crypto derivativesCHICAGO, Nov. 22, 2024 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's ...

Core Insights - The survey indicates a strong interest among European retail investors in exchange-traded equity options for risk management and highlights a significant demand for educational resources in this area [2][3][4] Group 1: Survey Findings - 62% of current derivatives users expressed interest in trading options contracts with stocks as the underlying asset [4] - 54% of derivatives prospects are interested in trading options, but 66% indicated a need for more basic financial education before proceeding [5] - The survey included 5,058 retail traders from France, Germany, the Netherlands, Spain, and the United Kingdom [9] Group 2: Educational Initiatives - The Options Institute plans to expand its educational offerings in Europe starting in early 2025, aiming to provide a comprehensive suite of resources for retail investors [2][8] - 61% of derivatives prospects are most interested in learning about options trading strategies, followed by risk and portfolio management (53%) and options basics (45%) [5] - The Options Institute has over 35 years of experience in providing investor education in the US and aims to replicate this success in Europe [8] Group 3: Market Context - Cboe Global Markets is working to lower barriers to entry for retail investors in European derivatives markets, with a focus on creating a more efficient and accessible trading environment [7][6] - The survey results suggest that exchange-traded equity options could play a crucial role in increasing retail participation in European capital markets [3][7]