Cboe(CBOE)2025-02-07 12:28Financial 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].