Financial Performance - Total revenues for 2024 reached $4,094.5 million, an increase of 8.5% from $3,773.5 million in 2023[525]. - Net income for 2024 was $764.9 million, slightly up from $761.4 million in 2023, resulting in basic earnings per share of $7.24[525]. - Operating income for 2024 was $1,098.4 million, compared to $1,057.9 million in 2023, reflecting a stable operating performance[525]. - The company reported a comprehensive income of $725.9 million for 2024, down from $783.0 million in 2023, impacted by foreign currency translation adjustments[528]. - Total current assets increased to $2,479.1 million in 2024, up from $1,979.3 million in 2023, primarily driven by cash and cash equivalents rising to $920.3 million[523]. - Total liabilities increased slightly to $3,509.5 million in 2024 from $3,502.5 million in 2023, with long-term debt remaining stable at $1,441.0 million[523]. - The total stockholders' equity increased to $4,279.6 million in 2024, up from $3,985.0 million in 2023, indicating a solid financial foundation for future growth[523]. - Cash dividends on common stock increased to $2.36 per share in 2024, up from $2.10 in 2023 and $1.96 in 2022, totaling $249.4 million in 2024[534]. - Net cash provided by operating activities for 2024 was $1,100.6 million, compared to $1,075.6 million in 2023 and $651.1 million in 2022[534]. Currency and Risk Management - A 10% adverse currency fluctuation would impact revenues less cost of revenues by $11.9 million in Euros, $6.1 million in British Pounds, and $3.0 million in Canadian Dollars[483]. - A 10% adverse currency fluctuation would impact consolidated equity by $19.8 million in Euros, $63.6 million in British Pounds, and $52.2 million in Canadian Dollars[485]. - The company has implemented policies to measure, manage, monitor, and report market risks, including foreign currency exchange rate risk, equity risk, credit risk, interest rate risk, and liquidity risk[481]. - The company does not have counterparty credit risk with respect to trades matched on its exchanges in the U.S., Canada, and Europe, as central counterparties guarantee clearance and settlement[487]. - Cboe Clear Europe requires clearing participants to deposit collateral to mitigate credit risk, with margin deposits predominantly in cash and cash equivalents[665]. Investments and Assets - The company’s investments grew to $383.7 million in 2024, up from $345.3 million in 2023, indicating a focus on expanding its investment portfolio[523]. - The company recorded an impairment charge of $11.1 million on minority investments in 2024, reflecting management's assessment of fair value[616]. - The company invested $36.5 million in Japannext Co., Ltd. in the fourth quarter of 2024, expanding its portfolio in the Japanese market[616]. - The company’s total equity method investments increased to $321.3 million in 2024, reflecting strategic growth in its investment portfolio[608]. - The company recorded an impairment of intangible assets or goodwill of $81.0 million in 2024, compared to no impairment in 2023 and $460.9 million in 2022[534]. Debt and Financing - The company had $1,441.0 million in outstanding debt as of December 31, 2024, all related to Senior Notes with fixed interest rates[501]. - Cboe Clear Europe has a €1.20 billion committed syndicated multicurrency revolving credit facility, with the potential to increase to €1.7 billion under certain conditions[650]. - The future expected repayments related to the Senior Notes total $1.45 billion, with $650 million due in 2027 and $800 million thereafter[657]. - Interest expense for the year ended December 31, 2024, was $51.5 million, down from $62.4 million in 2023[658]. Digital Assets and Technology - Cboe Digital liquidated all digital assets held on behalf of customers as of September 30, 2024, eliminating exposure to custody and valuation risks[498]. - The Company liquidated all digital assets held for customers on July 1, 2024, resulting in no safeguarded assets or liabilities on the balance sheets[591]. - Cboe's digital asset business will leverage its core strengths in derivatives, technology, and product innovation moving forward[539]. - The Company expects to adopt ASU 2023-08 regarding crypto assets in the first quarter of 2025, with no anticipated material impact on consolidated financial statements[593]. Regulatory and Compliance - The SEC adopted new climate disclosure rules on March 6, 2024, requiring companies to disclose material climate-related risks and management's role in addressing these risks[596]. - The SEC issued Staff Accounting Bulletin 122 on January 23, 2025, which rescinds previous guidance on accounting for digital asset obligations, with no material impact expected on consolidated financial statements[597]. - The company plans to adopt the new accounting guidance for digital assets in its financial statements for the year ending December 31, 2025[597]. - The company is monitoring ongoing legal proceedings related to the SEC's climate disclosure rules and will update financial statements as necessary[596]. Operational Highlights - Cboe Clear Europe holds material amounts of clearing participant collateral, both cash and non-cash deposits, to minimize credit risk and liquidity risks[494]. - Cboe Clear U.S. does not expect a material loss concerning credit risk on any member participant as of December 31, 2024[671]. - Cboe Clear Europe began clearing equity derivatives for ten European markets in September 2021, expanding to single stock options by November 2023[661]. - In November 2024, Cboe Clear Europe received approval to offer access to its market participants for securities financing transactions (SFT), although no trades had occurred by December 31, 2024[662].

I recommended Cboe Global Markets, Inc (BATS: CBOE ) as a 'buy' in January last year and since then, the stock has performed well, up 20%, but below the S&P 500's return of 27% over the same period. CBOEI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over lon ...

© 2025 Cboe Exchange, Inc. All rights reserved. FOURTH QUARTER 2024 EARNINGS PRESENTATION February 7, 2025 Agenda | Business Review | Fredric Tomczyk | | --- | --- | | | Chief Executive Officer | | | Dave Howson | | | Executive Vice President, Global President | | Financial Review | Jill Griebenow | | | Executive Vice President, Chief Financial Officer | | Questions & Answers | Fredric Tomczyk | | | Dave Howson | | | Jill Griebenow | | | Chris Isaacson | | | Executive Vice President, Chief Operating Officer ...

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 $2.10 [8][41] - For the full year 2024, net revenue grew 8% to a record $2.1 billion, and adjusted diluted earnings per share increased 10% to a record $8.61 [8][9] - Adjusted operating expenses rose by 7% to $205 million in Q4 2024, driven by higher travel, promotional expenses, and technology support services [50][41] Business Line Data and Key Metrics Changes - The Derivatives business saw organic net revenue increase by 8% in 2024, with total options volume reaching 3.8 billion contracts traded [10][22] - Cash and spot markets experienced a 14% increase in net revenues year-over-year in Q4 2024, contributing to a 10% growth for the full year [31][42] - Data Vantage business reported an 8% increase in net revenue for Q4 2024, with a full-year growth of 7% [36][48] Market Data and Key Metrics Changes - North American equities net revenue increased by 10% year-over-year, with net transaction and clearing fees growing by 28% in Q4 2024 [45][33] - The Europe and Asia-Pacific segment delivered a 17% year-over-year net revenue growth in Q4 2024, driven by higher transaction and clearing fees [34][35] - The Asia-Pacific region is focused on expanding presence in six priority markets, with new brokers enabling access to Cboe products [28] Company Strategy and Development Direction - Cboe is positioned to benefit from trends such as the rising popularity of options trading, the growth of retail investors, and advancements in technology [13][14] - The company is reallocating resources towards investment in its exchange technology platform, Cboe Titanium, to enhance trading technology [19][20] - A strategic focus on organic growth opportunities and disciplined capital allocation is emphasized, moving away from M&A [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. market's strong performance and the potential for new investors due to the S&P 500's returns [16] - The geopolitical environment presents challenges, but Cboe's products are seen as valuable tools for investors to manage risk [15] - The company anticipates 2025 to be a transformational year, focusing on improved access, education, and innovation [31][39] Other Important Information - Cboe returned $66 million to shareholders in Q4 2024 through dividends, totaling $249 million for the year [58] - The company has a strong balance sheet with $880 million in adjusted cash and a low average leverage ratio of 1.1 times [59] Q&A Session Summary Question: Concerns about Data Vantage revenue guidance - Management clarified that the mid to high-single digit growth range for Data Vantage is consistent with previous guidance and reflects market standards [70][73] Question: Uptake of index options on Robinhood - Management reported strong uptake of index options on Robinhood, with increased use of complex strategies and a focus on education and joint marketing to drive further adoption [75][78] Question: AI initiatives for revenue generation - The company is investing in AI to improve productivity and develop new products, but no immediate revenue opportunities were reported [85][88] Question: Capital allocation and lack of stock buybacks - Management explained that the decision not to repurchase stock was due to succession planning, but share repurchases remain a part of the capital allocation strategy [90][92] Question: 24/5 trading opportunity - Management discussed the demand for 24/5 trading and the readiness to implement it, pending regulatory approvals [97][102] Question: Price increases for options and retail adoption - Management indicated that pricing changes for options are dynamic and focused on balancing market share with revenue capture, with retail adoption expected to continue growing [110][113]

CBOE Global (CBOE) reported $524.5 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 5.1%. EPS of $2.10 for the same period compares to $2.06 a year ago.The reported revenue represents a surprise of -0.61% over the Zacks Consensus Estimate of $527.73 million. With the consensus EPS estimate being $2.13, the EPS surprise was -1.41%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

CBOE Global (CBOE) came out with quarterly earnings of $2.10 per share, missing the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.41%. A quarter ago, it was expected that this holding company for the Chicago Board Options Exchange would post earnings of $2.19 per share when it actually produced earnings of $2.22, delivering a surprise of 1.37% ...

Cboe Global Markets (CBOE) Q4 2024 Earnings Call February 07, 2025 08:30 AM ET Company Participants Kenneth Hill - Vice President, Investor Relations and TreasurerFredric Tomczyk - CEODavid Howson - Executive VP & Global PresidentJill Griebenow - Executive VP & CFOPatrick Moley - Vice PresidentChris Isaacson - EVP, COOAlex Kramm - Managing Director - Equity ResearchMichael Cyprys - Managing Director Conference Call Participants None - AnalystJeff Schmitt - Research Analyst - Financial Services and Technolog ...

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 ...