Intercontinental Exchange(ICE) - 2024 Q4 - Annual Results

Financial Performance - 2024 net revenues reached $9.3 billion, representing a 16% year-over-year increase[1] - GAAP diluted EPS for 2024 was $4.78, up 14% year-over-year, while adjusted diluted EPS was $6.07, up 8% year-over-year[1][4] - Record operating income for 2024 was $4.3 billion, a 17% increase year-over-year, with an adjusted operating income of $5.5 billion, up 16% year-over-year[1][4] - Total revenues for 2024 were $11,761 million, a 19% increase from $9,903 million in 2023[30] - Operating income for 2024 was $4,309 million, up from $3,694 million in 2023, reflecting a 17% growth[30] - Net income attributable to Intercontinental Exchange, Inc. for 2024 was $2,754 million, compared to $2,368 million in 2023, representing a 16% increase[30] - Total revenues for the year ended December 31, 2024, increased to $9,279 million from $7,988 million in 2023, representing a growth of 16.1%[35] - Adjusted operating income for the year ended December 31, 2024, rose to $5,469 million, up from $4,728 million in 2023, reflecting an increase of 15.7%[35] - The operating margin improved to 46% for the year ended December 31, 2024, compared to 46% in 2023, indicating stable profitability[35] - Adjusted net income attributable to ICE for the year ended December 31, 2024, was $3,497 million, an increase from $3,177 million in 2023, marking a growth of 10.1%[38] - Diluted earnings per share attributable to ICE common stockholders increased to $4.78 for the year ended December 31, 2024, compared to $4.19 in 2023, a rise of 14.1%[38] Revenue Breakdown - Fourth quarter consolidated net revenues were $2.3 billion, a 6% increase year-over-year, with exchange net revenues of $1.2 billion[3][7] - Full year exchange net revenues were $5.0 billion, up 12% year-over-year, with an operating margin of 73%[13][14] - Fixed income and data services revenues for 2024 were $2.3 billion, a 3% increase year-over-year, with an adjusted operating margin of 45%[18][19] - Mortgage technology revenues for 2024 totaled $2.0 billion, a 54% increase year-over-year, with adjusted operating income of $724 million and a margin of 36%[22] Cash Flow and Dividends - Record annual operating cash flow was $4.6 billion, a 30% increase year-over-year, with adjusted free cash flow exceeding $3.6 billion, up 13% year-over-year[1][6] - Operating cash flow for 2024 was $4.6 billion, with adjusted free cash flow at $3.6 billion[26] - Free cash flow for the twelve months ended December 31, 2024, was $3,857 million, up from $3,053 million in 2023, representing an increase of 26.3%[42] - Adjusted free cash flow for the twelve months ended December 31, 2024, reached $3,620 million, compared to $3,197 million in 2023, reflecting a growth of 13.2%[42] - The company paid over $1.0 billion in dividends in 2024[26] Future Outlook - The company plans to resume share repurchases in the first quarter of 2025[1] - The company plans to allocate $730 - $780 million for capital expenditures in 2025[23] - 2025 guidance for Exchange Recurring Revenue growth is projected at low-single digits[23] - 2025 effective tax rate is expected to be between 24% and 26%[23] Operational Efficiency - The business model demonstrated resilience, continuing to deliver growth across various macroeconomic environments[2] - Total operating expenses for 2024 were $4,970 million, compared to $4,294 million in 2023, marking a 16% increase[30] - The operating income for the three months ended December 31, 2024, was $1,077 million, compared to $925 million in the same period of 2023, an increase of 16.4%[40] - Adjusted operating income for the three months ended December 31, 2024, was $1,350 million, up from $1,249 million in 2023, indicating an increase of 8.1%[40] - The adjusted operating margin for the three months ended December 31, 2024, improved to 58% from 57% in 2023, showing enhanced operational efficiency[40] Risks and Uncertainties - ICE's forward-looking statements involve risks and uncertainties that could cause actual results to differ from expectations[45] - The company cautions against placing undue reliance on forward-looking statements, as they are only valid as of the date made[45] - Management cannot predict all factors that may affect ICE's business and prospects, nor assess the impact of each factor[45]