#United States #Chicago #financial results #revenue growth #Cboe Global Markets

Cboe Global Markets Fourth Quarter 2024 Results

Cboe Global Markets, Inc. (CBOE) announced its financial results for the fourth quarter of 2024, highlighting a solid performance that culminates in a record year for the company. During this period, Cboe reported a diluted earnings per share (EPS) of $1.86, which reflects a 6% decline year-over-year. However, the full-year diluted EPS reached $7.21, representing a 1% increase compared to the previous year.

Key Financial Highlights

Fourth Quarter

• - Total Revenue: The company recorded net revenue of $524.5 million, marking a 5% increase from $499 million during the same period in 2023.
• - Adjusted Diluted EPS: The adjusted diluted EPS for the quarter stood at $2.10, which was a 2% increase over the previous year.
• - Net Income: The net income attributed to common stockholders came in at $195.6 million.

Full Year

• - Total Revenue: Cboe achieved a record net revenue of $2.1 billion, showing an 8% growth year-over-year.
• - Adjusted Diluted EPS for the full year was $8.61, up by 10% from the previous year.
• - The company's financial results were significantly boosted by strong performances across all market segments, particularly in Derivatives Markets, Data Vantage, and Cash and Spot Markets, which all contributed positively to the overall growth.

Strategic Outlook for 2025

Looking ahead, Cboe is optimistic about its growth trajectory. The company has established a growth target for organic total net revenue in 2025 at mid-single digits, while anticipating mid to high-single digit growth for Cboe Data Vantage organic net revenue. Additionally, they have set adjusted operating expense guidance in the range of $837 to $852 million for the upcoming fiscal year.

CEO Fredric Tomczyk expressed confidence in the organization’s strong foundation, emphasizing that Cboe’s diverse business lines and refined strategic focus position it well to capitalize on prevailing market trends, fostering sustainable growth for shareholders.

Expense Management

Despite the revenue growth, Cboe recorded total operating expenses of $226 million in Q4, which is a rise from $205 million in the same period last year. This additional spending was largely attributed to increased promotional, travel, technology support services, and professional fees. Cboe's disciplined approach to expense management is evident in their adjusted operating expense guidance, aiming to balance growth initiatives with cost controls.

Business Segment Analysis

1. Derivatives Markets: Remarkably, net revenue for this segment rose by 8% driven primarily by record volumes in options trading. Cboe’s options exchanges captured 30.4% market share in Q4.
2. Data Vantage: This segment reflected a 7% uptick in revenue, consolidating Cboe's position in multiple data-driven solutions.
3. Cash and Spot Markets: Revenues soared by 10%, showcasing the growing appeal of Cboe’s offerings in cash equity markets.

Conclusion

Cboe Global Markets concluded 2024 with commendable financial performance and strategically targets sustained growth in the coming year. The robust demand across all service offerings and careful financial stewardship position the company favorably for 2025 and beyond. Cboe continues to focus on building a global marketplace that not only fosters innovation but also generates long-term value for its shareholders. Investors are encouraged to tune into the upcoming earnings conference call scheduled for February 7, 2025, where further insights into Cboe's performance and strategy will be discussed.