Cboe(US:CBOE)2024-08-02 11:31Financial Performance - Cboe reported record net revenue of $513.8 million for Q2 2024, an increase of 10% compared to $467.1 million in Q2 2023[2] - Total revenues for Q2 2024 reached $974.0 million, a 7.3% increase from $907.8 million in Q2 2023[21] - Net income allocated to common stockholders for Q2 2024 was $139.7 million, down from $167.0 million in Q2 2023, representing a decrease of 16.5%[21] - Basic earnings per share for Q2 2024 were $1.33, compared to $1.58 in Q2 2023, reflecting a decline of 15.8%[21] - Operating income for Q2 2024 was $210.1 million, a decrease of 14.2% from $244.8 million in Q2 2023[21] - Adjusted diluted earnings per share for the three months ended June 30, 2024, was $2.15, up from $1.78 in the same period of 2023, indicating an increase of 20.8%[29] - Adjusted operating income for the three months ended June 30, 2024, was $316.7 million, compared to $274.8 million in the same period of 2023, showing an increase of 15.2%[29] Expenses and Costs - Total operating expenses rose to $303.7 million, a 37% increase from $222.3 million in Q2 2023, primarily due to impairment of intangible assets[5] - Total operating expenses for Q2 2024 were $303.7 million, up from $222.3 million in Q2 2023, reflecting an increase of 36.6%[21] - Total cost of revenues for the three months ended June 30, 2024, was $460.2 million, up from $440.7 million in the same period of 2023, which is an increase of 4.0%[25] - Adjusted operating expenses for 2024 are expected to be between $795 million and $805 million, excluding $92 million of amortization of acquired intangible assets[10] - Depreciation and amortization expense for 2024 is expected to be in the range of $43 million to $47 million, excluding amortization of acquired intangible assets[10] Revenue Growth and Projections - Cboe anticipates organic total net revenue growth for 2024 to be in the range of 6-8%, up from the previous guidance of 5-7%[3] - Options net revenue increased by 8% to $306.7 million, driven by a 9% increase in index options trading volumes[6] - North American Equities net revenue reached $98.3 million, an 8% increase, with net transaction and clearing fees up by 25%[8] - Europe and Asia Pacific net revenue grew by 15% to $54.3 million, with a 4% increase in average daily notional value traded[8] - Global FX net revenue was $19.8 million, an 11% increase, with average daily notional value traded on the Cboe FX platform rising to $47.7 billion[8] - Data and Access Solutions anticipates organic net revenue growth in the range of 7 to 10 percentage points for 2024[10] Assets and Liabilities - Total current assets increased significantly to $3,899.5 million as of June 30, 2024, up from $1,979.3 million at the end of 2023, marking an increase of 96.7%[23] - Total assets rose to $9,255.6 million as of June 30, 2024, compared to $7,487.5 million at the end of 2023, an increase of 23.6%[23] - Total liabilities increased to $5,233.9 million as of June 30, 2024, up from $3,502.5 million at the end of 2023, representing a rise of 49.4%[23] Cash Flow and Dividends - The company paid cash dividends of $58.2 million, or $0.55 per share, during the second quarter of 2024[11] - Approximately $204.4 million of availability remains under existing share repurchase authorizations as of June 30, 2024[11] - Minority investments are expected to contribute a benefit of $37 million to $43 million to non-operating income in 2024[10] - The effective tax rate on adjusted earnings for the full year 2024 is expected to be in the range of 28.5% to 30.5%[10] Market Performance - Total industry ADV for options in Q2 2024 was 46,129 thousand, a decrease from 47,452 thousand in Q1 2024[17] - U.S. Equities exchange market share decreased to 11.4% in Q2 2024 from 12.8% in Q1 2024[17] - Canadian Equities ADV increased to 150.6 million in Q2 2024 from 146.3 million in Q1 2024, with a market share of 15.0%[17] - European Equities total industry ADNV in Q2 2024 was €42.6 billion, up from €41.8 billion in Q1 2024[17] - Global FX spot market share was 20.2% in Q2 2024, a slight decrease from 20.3% in Q1 2024[17] Impairments and Acquisitions - The Digital segment recorded an impairment of intangible assets of $81.0 million related to the wind down of the Cboe Digital spot market[8] - The company reported acquisition-related costs of $0.6 million for the three months ended June 30, 2024[32] - Impairment of intangible assets amounted to $81.0 million for the three months ended June 30, 2024[32] Other Financial Metrics - Cboe's adjusted EBITDA margins reached 67% in the first half of 2024, up more than two percentage points compared to the same period in 2023[3] - Adjusted EBITDA for the three months ended June 30, 2024, increased to $340.7 million, with an adjusted EBITDA margin of 66.3%, compared to $293.3 million and 62.8% in the same period of 2023[32] - The adjusted operating margin for the three months ended June 30, 2024, was 61.6%, compared to 58.8% in the same period of 2023, reflecting an improvement of 4.8 percentage points[29]