Cboe Global Markets Reports Results for Fourth Quarter 2024 and Full Year
Cboe Global Markets (CBOE) reported its Q4 and full-year 2024 financial results, showing mixed performance. The company achieved record net revenue of $2.1 billion for the full year, up 8% from 2023, while Q4 net revenue reached $524.5 million, increasing 5% year-over-year.
Q4 diluted EPS decreased 6% to $1.86, while adjusted diluted EPS grew 2% to $2.10. For the full year 2024, diluted EPS increased 1% to $7.21, and adjusted diluted EPS rose 10% to a record $8.61.
The company's growth was balanced across all segments: Derivatives Markets net revenue up 8%, Data Vantage net revenue up 7%, and Cash and Spot Markets net revenue up 10% in 2024. Looking ahead to 2025, Cboe projects mid-single-digit organic total net revenue growth and mid-to-high single-digit Data Vantage organic net revenue growth, with adjusted operating expense guidance of $837-852 million.
Cboe Global Markets (CBOE) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. L'azienda ha raggiunto un fatturato netto record di 2,1 miliardi di dollari per l'intero anno, in aumento dell'8% rispetto al 2023, mentre il fatturato netto del quarto trimestre ha raggiunto i 524,5 milioni di dollari, con un incremento del 5% su base annua.
Il risultato per azione diluito del quarto trimestre è diminuito del 6% a 1,86 dollari, mentre il risultato per azione diluito corretto è aumentato del 2% a 2,10 dollari. Per l'intero anno 2024, il risultato per azione diluito è aumentato dell'1% a 7,21 dollari, e il risultato per azione diluito corretto è salito del 10% a un record di 8,61 dollari.
La crescita dell'azienda è stata bilanciata tra tutti i segmenti: il fatturato netto dei mercati dei derivati è aumentato dell'8%, il fatturato netto di Data Vantage è aumentato del 7%, e il fatturato netto dei mercati cash e spot è aumentato del 10% nel 2024. Guardando avanti al 2025, Cboe prevede una crescita organica del fatturato netto totale a cifre singole medie e una crescita organica del fatturato netto di Data Vantage a cifre singole alte, con una guida per le spese operative corrette tra 837 e 852 milioni di dollari.
Cboe Global Markets (CBOE) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un desempeño mixto. La compañía logró un ingreso neto récord de 2.1 mil millones de dólares para el año completo, un aumento del 8% en comparación con 2023, mientras que el ingreso neto del cuarto trimestre alcanzó los 524.5 millones de dólares, incrementándose un 5% interanual.
El EPS diluido del cuarto trimestre disminuyó un 6% a 1.86 dólares, mientras que el EPS diluido ajustado creció un 2% a 2.10 dólares. Para el año completo 2024, el EPS diluido aumentó un 1% a 7.21 dólares, y el EPS diluido ajustado subió un 10% a un récord de 8.61 dólares.
El crecimiento de la empresa fue equilibrado en todos los segmentos: los ingresos netos de mercados de derivados aumentaron un 8%, los ingresos netos de Data Vantage subieron un 7%, y los ingresos netos de mercados al contado crecieron un 10% en 2024. Mirando hacia 2025, Cboe proyecta un crecimiento orgánico de ingresos netos totales en un solo dígito medio y un crecimiento orgánico de ingresos netos de Data Vantage en un solo dígito alto, con una guía de gastos operativos ajustados de 837 a 852 millones de dólares.
Cboe 글로벌 마켓 (CBOE)는 2024년 4분기 및 연간 재무 실적을 발표하며 혼합된 성과를 보였습니다. 이 회사는 전체 연도에 대해 21억 달러의 기록적인 순수익을 달성했으며, 이는 2023년 대비 8% 증가한 수치입니다. 4분기 순수익은 5억 2천 4백 50만 달러에 도달해 전년 대비 5% 증가했습니다.
4분기 희석 주당순이익(EPS)은 6% 감소하여 1.86달러에 이르렀으나, 조정된 희석 EPS는 2% 증가하여 2.10달러에 달했습니다. 2024년 전체 연도에 대해 희석 EPS는 1% 증가해 7.21달러가 되었고, 조정된 희석 EPS는 10% 증가하여 기록적인 8.61달러에 달했습니다.
회사의 성장은 모든 부문에서 균형을 이루었습니다: 파생상품 시장의 순수익은 8% 증가했으며, Data Vantage의 순수익은 7% 증가하고, 현금 및 현물 시장의 순수익은 10% 증가했습니다. 2025년을 전망하며 Cboe는 중간 단일 숫자의 유기적 총 순수익 성장과 중간에서 높은 단일 숫자의 Data Vantage 유기적 순수익 성장을 예상하며, 조정된 운영 경비 가이드는 8억 3천 7백만에서 8억 5천 2백만 달러로 설정했습니다.
Cboe Global Markets (CBOE) a publié ses résultats financiers pour le quatrième trimestre et l'année complète 2024, montrant des performances variées. L'entreprise a réalisé un chiffre d'affaires net record de 2,1 milliards de dollars pour l'année complète, en hausse de 8 % par rapport à 2023, tandis que le chiffre d'affaires net du quatrième trimestre a atteint 524,5 millions de dollars, augmentant de 5 % d'une année sur l'autre.
Le BPA dilué du quatrième trimestre a diminué de 6 % pour atteindre 1,86 dollar, tandis que le BPA dilué ajusté a augmenté de 2 % pour atteindre 2,10 dollars. Pour l'année complète 2024, le BPA dilué a augmenté de 1 % pour atteindre 7,21 dollars, et le BPA dilué ajusté a progressé de 10 % pour atteindre un niveau record de 8,61 dollars.
La croissance de l'entreprise a été équilibrée entre tous les segments : le chiffre d'affaires net des marchés des dérivés a augmenté de 8 %, le chiffre d'affaires net de Data Vantage a augmenté de 7 %, et le chiffre d'affaires net des marchés au comptant a augmenté de 10 % en 2024. En regardant vers 2025, Cboe prévoit une croissance organique des revenus nets totaux à un chiffre moyen et une croissance organique des revenus nets de Data Vantage à un chiffre élevé, avec un budget de dépenses d'exploitation ajustées de 837 à 852 millions de dollars.
Cboe Global Markets (CBOE) hat die Finanzergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht, die gemischte Leistungen zeigen. Das Unternehmen erzielte einen Rekord-Nettoumsatz von 2,1 Milliarden Dollar für das gesamte Jahr, was einem Anstieg von 8% im Vergleich zu 2023 entspricht, während der Nettoumsatz im vierten Quartal 524,5 Millionen Dollar erreichte, was einem Anstieg von 5% im Jahresvergleich entspricht.
Der verwässerte Gewinn pro Aktie (EPS) im vierten Quartal sank um 6% auf 1,86 Dollar, während der bereinigte verwässerte EPS um 2% auf 2,10 Dollar stieg. Für das Gesamtjahr 2024 stieg der verwässerte EPS um 1% auf 7,21 Dollar, und der bereinigte verwässerte EPS stieg um 10% auf einen Rekord von 8,61 Dollar.
Das Wachstum des Unternehmens war über alle Segmente ausgeglichen: Der Nettoumsatz im Derivatemarkt stieg um 8%, der Nettoumsatz von Data Vantage stieg um 7%, und der Nettoumsatz im Cash- und Spotmarkt stieg um 10% im Jahr 2024. Mit Blick auf 2025 prognostiziert Cboe ein organisches Wachstum des gesamten Nettoumsatzes im mittleren einstelligen Bereich und ein organisches Wachstum des Nettoumsatzes von Data Vantage im mittleren bis hohen einstelligen Bereich, mit einer Anleitung für die bereinigten Betriebskosten von 837 bis 852 Millionen Dollar.
- Record full-year net revenue of $2.1 billion, up 8% YoY
- Record adjusted diluted EPS of $8.61, up 10% YoY
- Balanced growth across all segments with Derivatives (+8%), Data Vantage (+7%), and Cash/Spot Markets (+10%)
- Q4 net revenue increased 5% to $524.5 million
- Q4 diluted EPS declined 6% to $1.86
- Full-year diluted EPS growth to 1% at $7.21
Insights
Cboe's Q4 and full-year 2024 results demonstrate the company's successful execution across its diversified business model. The record $2.1B in annual revenue reflects strong performance across all three core segments: Derivatives Markets (
The robust performance in the Derivatives Markets segment, particularly in options trading, highlights Cboe's dominant position in this growing market. The secular trend toward options trading, driven by increased retail participation and sophisticated institutional strategies, continues to benefit Cboe's core business. The
The 2025 guidance provides important insights into management's strategic priorities. The projected mid-single-digit organic revenue growth, combined with the specific expense guidance of
The company's refined strategic focus and financial flexibility position it well to capitalize on secular market trends. The strong performance across all business segments indicates successful diversification beyond its traditional derivatives focus, reducing revenue concentration risk and creating multiple growth drivers. The continued investment in Data Vantage services demonstrates foresight in capturing the growing demand for market data and analytics, which typically generates recurring, high-margin revenue streams.
Fourth Quarter and Full Year Highlights*
- Diluted EPS for the Quarter of
$1.86 $7.21 - Adjusted Diluted EPS¹ for the Quarter of
$2.10 $8.61 - Net Revenue for the Quarter of
$524.5 million $2.1 billion - Establishing 2025 Organic Total Net Revenue Growth Target2 of mid single digits and Cboe Data Vantage3 Organic Net Revenue Growth Target2 of mid to high single digits
- Establishing 2025 Adjusted Operating Expense Guidance2 of
$837 $852 million
"Cboe reported strong fourth quarter results, capping full year 2024 net revenue growth of
"In the fourth quarter, Cboe generated solid net revenues and earnings results to finish a record year," said Jill Griebenow, Cboe Global Markets Executive Vice President, Chief Financial Officer. "Derivatives Markets net revenue was up
* | All comparisons are fourth quarter 2024 or full year compared to the same period in 2023. |
(1) | A full reconciliation of our non-GAAP results to our GAAP ("Generally Accepted Accounting Principles") results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
(2) | Specific quantification of the amounts that would be required to reconcile the company's organic net revenue growth guidance and adjusted operating expenses guidance are not available. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and costs that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company's organic net revenue growth guidance and adjusted operating expenses would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
(3) | Cboe Data Vantage refers to the company's Cboe Data Vantage business (formerly known as Data and Access Solutions). Cboe Data Vantage is subsequently referred to as Data Vantage throughout this press release. |
Consolidated Fourth Quarter Results
The table below presents summary selected unaudited condensed consolidated financial information for the company as reported and on an adjusted basis for the three months ended December 31, 2024 and 2023.
Table 1 | |||||||||||||||||
Consolidated Fourth Quarter Results ($ in millions except per share) | 4Q24 | 4Q23 | Change | 4Q24 Adjusted1 | 4Q23 Adjusted1 | Change | |||||||||||
Total Revenues Less Cost of Revenues | $ 524.5 | $ 499.0 | 5 % | $ 524.5 | $ 499.0 | 5 % | |||||||||||
Total Operating Expenses | $ 226.0 | $ 205.0 | 10 % | $ 204.8 | $ 191.7 | 7 % | |||||||||||
Operating Income | $ 298.5 | $ 294.0 | 2 % | $ 319.7 | $ 307.3 | 4 % | |||||||||||
Operating Margin % | 56.9 % | 58.9 % | (2.0)pp | 61.0 % | 61.6 % | (0.6)pp | |||||||||||
Net Income Allocated to Common Stockholders | $ 195.6 | $ 210.8 | (7) % | $ 221.2 | $ 218.8 | 1 % | |||||||||||
Diluted Earnings Per Share | $ 1.86 | $ 1.98 | (6) % | $ 2.10 | $ 2.06 | 2 % | |||||||||||
EBITDA1 | $ 316.6 | $ 333.8 | (5) % | $ 331.6 | $ 320.7 | 3 % | |||||||||||
EBITDA Margin %1 | 60.4 % | 66.9 % | (6.5)pp | 63.2 % | 64.3 % | (1.1)pp |
- Total revenues less cost of revenues (referred to as "net revenue"2) of
$524.5 million $499.0 million - Total operating expenses were
$226.0 million $205.0 million $21.0 million $204.8 million $191.7 million - The effective tax rate for the fourth quarter of 2024 was 29.7 percent as compared with 26.3 percent in the fourth quarter of 2023. The higher effective tax rate in 2024 is primarily due to tax benefits arising in 2023 from changes in contingent consideration and valuation allowance releases. The effective tax rate on adjusted earnings1 was 29.5 percent, up 2.2 percentage points when compared with 27.3 percent in last year's fourth quarter. The change was primarily due to lower non-deductible compensation in 2023 resulting from executive changes.
- Diluted EPS for the fourth quarter of 2024 decreased 6 percent to
$1.86 $2.10
Business Segment Information
Table 2 | |||||
Total Revenues Less Cost of Revenues by Business Segment (in millions) | 4Q24 | 4Q23 | Change | ||
Options | $ 324.3 | $ 314.5 | 3 % | ||
North American Equities | 94.9 | 86.3 | 10 % | ||
56.2 | 48.0 | 17 % | |||
Futures | 30.2 | 32.4 | (7) % | ||
Global FX | 19.4 | 18.9 | 3 % | ||
Digital | (0.5) | (1.1) | * % | ||
Total | $ 524.5 | $ 499.0 | 5 % |
(1) | A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
(2) | See the attached tables on page 10 for "Net Revenue by Revenue Caption." |
* | Not meaningful |
Discussion of Results by Business Segment1:
Options:
- Record Options net revenue of
$324.3 million $9.8 million - Net transaction and clearing fees2 increased
$2.6 million - Cboe's Options exchanges had total market share of 30.4 percent for the fourth quarter of 2024 compared to 33.5 percent in the fourth quarter of 2023, a result of lower multi-listed market share as compared to the fourth quarter of 2023.
North American (N.A.) Equities:
- N.A. Equities net revenue of
$94.9 million $8.6 million - Net transaction and clearing fees2 increased by
$6.4 million U.S. Equities, partially offset by lower market share in on-exchangeU.S. Equities and Canadian Equities as compared to the fourth quarter of 2023. - Cboe's
U.S. Equities exchanges had market share of 10.8 percent for the fourth quarter of 2024 compared to 13.0 percent in the fourth quarter of 2023 given higher industry off-exchange market share. Cboe'sU.S. Equities off-exchange market share was 17.3 percent, down from 18.4 percent in the fourth quarter of 2023. Canadian Equities market share decreased to 14.3 percent as compared to 15.3 percent in the fourth quarter of 2023.
Europe and APAC net revenue of$56.2 million $56.0 million €10.4 billion , up 15 percent compared to the fourth quarter of 2023 given a 12 percent increase in industry market volumes. Japanese Equities ADNV was 39 percent higher and Australian Equities ADNV was 9 percent higher than the fourth quarter of 2023.- For the fourth quarter of 2024, Cboe European Equities had 24.6 percent market share, up from 23.9 percent in the fourth quarter of 2023. Cboe European Equities net capture rate increased 12 percent given a mix shift to higher capture products. Cboe Australia had 20.8 percent market share for the fourth quarter of 2024, up from 20.3 percent in the fourth quarter of 2023. Cboe Japan grew market share to 4.9 percent in the fourth quarter of 2024 from 4.0 percent in the fourth quarter of 2023.
Futures:
- Futures net revenue of
$30.2 million $2.2 million - Net transaction and clearing fees2 decreased
$2.2 million
Global FX:
- Global FX net revenue of
$19.4 million one million dollars traded was$2.72 $2.60 $45.6 billion - Cboe FX market share was 19.0 percent for the quarter compared to 21.3 percent in last year's fourth quarter.
(1) | The Digital segment is not further discussed as results were not material during the fourth quarter of 2024. |
(2) | See the attached tables on page 10 for "Net Transaction and Clearing Fees by Business Segment." |
(3) | A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
Note, the key performance metrics referenced represent the change in the unrounded metrics figures. | |
2025 Fiscal Year Financial Guidance
Cboe provided guidance for the 2025 fiscal year as noted below.
- Organic total net revenue growth1 is expected to be in the mid single digit range in 2025.
- Organic net revenue growth1 from Data Vantage is expected to be in the mid to high single digit range in 2025.
- Adjusted operating expenses1 in 2025 are expected to be in the range of
$837 $852 million $70 million - Depreciation and amortization expense for 2025 is expected to be in the range of
$55 $59 million - The effective tax rate on adjusted earnings1 for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent. Significant changes in trading volume, expenses, tax laws or rates and other items could materially impact this expectation.
- Capital expenditures for 2025 are expected to be in the range of
$75 $85 million
(1) | Specific quantification of the amounts that would be required to reconcile the company's organic and inorganic growth guidance, adjusted operating expenses guidance, annualized adjusted operating expenses guidance, and the effective tax rate on adjusted earnings guidance are not available. Acquisitions are considered organic after 12 months of closing. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and costs that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company's organic growth, adjusted operating expenses, annualized adjusted operating expenses, and the effective tax rate on adjusted earnings would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
Capital Management
At December 31, 2024, the company had cash and cash equivalents of
The company paid cash dividends of
Earnings Conference Call
Executives of Cboe Global Markets will host a conference call to review its fourth quarter financial results today, February 7, 2025, at 8:30 a.m. ET/7:30 a.m. CT. The conference call and any accompanying slides will be publicly available via live webcast from the Investor Relations section of the company's website at www.cboe.com under Events & Presentations. Participants may also listen via telephone by dialing (800) 715-9871 (toll-free) or (646) 307-1963 (toll) and using the Conference ID 5196331. Telephone participants should place calls 10 minutes prior to the start of the call. The webcast will be archived on the company's website for replay.
(2) | A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel, increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; risks relating to digital assets, including winding down the Cboe Digital spot market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
The condensed consolidated statements of income and balance sheets are unaudited and subject to revision.
Cboe Media Contacts: | Analyst Contact: | |||
Angela Tu | Tim Cave | Kenneth Hill, CFA | ||
(646) 856-8734 | +44 (0) 7593 506 719 | (312) 786-7559 | ||
atu@cboe.com | tcave@cboe.com | khill@cboe.com |
CBOE-F
Trademarks:
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, Cboe Clear®, Cboe Datashop®, BIDS Trading®, BZX®, BYX®, Cboe Clear®, EDGX®, EDGA®, MATCHNow®, and VIX® are registered trademarks and Cboe Data VantageSM is a service mark of Cboe Global Markets, Inc. and its subsidiaries. All other trademarks and service marks are the property of their respective owners.
Cboe Global Markets, Inc. | |||||
4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | 4Q 2023 | |
Options | |||||
Total industry ADV (in thousands) | 51,635 | 48,733 | 46,129 | 47,452 | 44,410 |
Total Company Options ADV (in thousands) | 15,673 | 14,882 | 14,384 | 14,833 | 14,896 |
Multi-listed options | 11,633 | 10,655 | 10,367 | 10,744 | 10,725 |
Index options | 4,040 | 4,227 | 4,017 | 4,089 | 4,172 |
Total Options market share | 30.4 % | 30.5 % | 31.2 % | 31.3 % | 33.5 % |
Multi-listed options | 24.5 % | 24.0 % | 24.6 % | 24.8 % | 26.7 % |
Total Options RPC: | $ 0.281 | $ 0.298 | $ 0.295 | $ 0.299 | $ 0.297 |
Multi-listed options | $ 0.064 | $ 0.063 | $ 0.062 | $ 0.064 | $ 0.060 |
Index options | $ 0.905 | $ 0.892 | $ 0.898 | $ 0.915 | $ 0.908 |
North American Equities | |||||
Total industry ADV (shares in billions) | 13.6 | 11.5 | 11.8 | 11.8 | 11.2 |
Market share % | 10.8 % | 10.9 % | 11.4 % | 12.8 % | 13.0 % |
Net capture (per 100 touched shares) | $ 0.018 | $ 0.024 | $ 0.027 | $ 0.019 | $ 0.013 |
ADV (touched shares, in millions) | 80.0 | 79.3 | 74.7 | 82.0 | 76.1 |
Off-Exchange ATS Block Market Share % (reported on a one-month lag) | 17.3 % | 17.6 % | 17.8 % | 17.6 % | 18.4 % |
Net capture (per 100 touched shares) | $ 0.126 | $ 0.135 | $ 0.136 | $ 0.132 | $ 0.137 |
Canadian Equities: | |||||
ADV (matched shares, in millions) | 157.4 | 135.9 | 150.6 | 146.3 | 141.8 |
Total market share % | 14.3 % | 14.6 % | 15.0 % | 15.3 % | 15.3 % |
Net capture (per 10,000 touched shares, in Canadian Dollars) | $ 4.008 | $ 4.240 | $ 4.046 | $ 3.997 | $ 3.905 |
European Equities: | |||||
Total industry ADNV (Euros - in billions) | € 42.3 | € 38.9 | € 42.6 | € 41.8 | € 37.7 |
Market share % | 24.6 % | 23.8 % | 22.5 % | 23.7 % | 23.9 % |
Net capture (per matched notional value (bps), in Euros) | € 0.261 | € 0.257 | € 0.251 | € 0.249 | € 0.233 |
Cboe Clear Europe: | |||||
Trades cleared (in thousands) | 328,976.1 | 306,882.5 | 299,019.3 | 294,325.7 | 281,938.1 |
Fee per trade cleared (in Euros) | € 0.008 | € 0.008 | € 0.008 | € 0.008 | € 0.010 |
Net settlement volume (shares in thousands) | 2,962.6 | 2,947.6 | 2,764.0 | 2,524.6 | 2,511.6 |
Net fee per settlement (in Euros) | € 1.002 | € 1.026 | € 1.038 | € 1.072 | € 0.899 |
Australian Equities: | |||||
ADNV (AUD - in billions) | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.7 |
Market share - Continuous | 20.8 % | 20.8 % | 20.8 % | 20.4 % | 20.3 % |
Net capture (per matched notional value (bps), in Australian Dollars) | $ 0.154 | $ 0.156 | $ 0.155 | $ 0.156 | $ 0.157 |
Japanese Equities: | |||||
ADNV (JPY - in billions) | ¥ 263.8 | ¥ 323.3 | ¥ 315.2 | ¥ 315.9 | ¥ 190.2 |
Market share - Lit Continuous | 4.9 % | 5.4 % | 5.5 % | 5.0 % | 4.0 % |
Net capture (per matched notional value (bps), in Yen) | ¥ 0.233 | ¥ 0.221 | ¥ 0.229 | ¥ 0.227 | ¥ 0.252 |
Futures | |||||
ADV (in thousands) | 206.4 | 273.7 | 253.6 | 220.0 | 233.4 |
RPC | $ 1.765 | $ 1.767 | $ 1.757 | $ 1.749 | $ 1.729 |
Global FX | |||||
Spot market share % | 19.0 % | 19.1 % | 20.2 % | 20.3 % | 21.3 % |
ADNV ($ - in billions) | $ 45.6 | $ 48.3 | $ 47.7 | $ 45.3 | $ 47.0 |
Net capture (per | $ 2.72 | $ 2.66 | $ 2.69 | $ 2.62 | $ 2.60 |
ADV = average daily volume; ADNV = average daily notional value.
RPC, average revenue per contract, for options and futures represents total net transaction fees recognized for the period divided by total contracts traded during the period.
Touched volume represents the total number of shares of equity securities and ETFs internally matched on our exchanges or routed to and executed on an external market center.
Matched volume represents the total number of shares of equity securities and ETFs executed on our exchanges.
Canadian Equities, "net capture per 10,000 shares" refers to transaction fees divided by the product of one-ten thousandth ADV of shares for MATCHNow and Cboe Canada and the number of trading days. Total market share represents MATCHNow and Cboe Canada volume divided by the total volume of the Canadian Equities market. As of January 1, 2024, the Cboe Canada and MATCHNow entities have been amalgamated into Cboe Canada Inc.
European Equities, "net capture per matched notional value" refers to transaction fees less liquidity payments in Euros divided by the product of ADNV in Euros of shares matched on Cboe Europe Equities and the number of trading days. "Trades cleared" refers to the total number of non-interoperable trades cleared, "Fee per trade cleared" refers to clearing fees divided by number of non-interoperable trades cleared, "Net settlement volume" refers to the total number of settlements executed after netting, and "Net fee per settlement" refers to settlement fees less direct costs incurred to settle divided by the number of settlements executed after netting.
Global FX, "net capture per
Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
Cboe Global Markets, Inc. and Subsidiaries | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
(in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Revenues: | |||||||
Cash and spot markets | $ 468.6 | $ 361.7 | $ 1,670.0 | $ 1,445.1 | |||
Data Vantage | 148.7 | 137.5 | 576.6 | 539.2 | |||
Derivatives markets | 490.3 | 469.5 | 1,847.9 | 1,789.2 | |||
Total Revenues | 1,107.6 | 968.7 | 4,094.5 | 3,773.5 | |||
Cost of Revenues: | |||||||
Liquidity payments | 365.7 | 352.9 | 1,329.1 | 1,385.8 | |||
Routing and clearing | 18.3 | 16.5 | 68.3 | 79.1 | |||
Section 31 fees | 142.1 | 40.2 | 391.4 | 185.7 | |||
Royalty fees and other cost of revenues | 57.0 | 60.1 | 233.3 | 204.9 | |||
Total Cost of Revenues | 583.1 | 469.7 | 2,022.1 | 1,855.5 | |||
Revenues Less Cost of Revenues | 524.5 | 499.0 | 2,072.4 | 1,918.0 | |||
Operating Expenses: | |||||||
Compensation and benefits | 111.9 | 112.8 | 462.4 | 425.8 | |||
Depreciation and amortization | 32.1 | 38.0 | 133.0 | 158.0 | |||
Technology support services | 28.5 | 24.2 | 102.8 | 99.7 | |||
Professional fees and outside services | 25.6 | 23.3 | 94.8 | 92.0 | |||
Travel and promotional expenses | 16.4 | 9.0 | 45.8 | 37.6 | |||
Facilities costs | 6.1 | 5.7 | 24.6 | 25.7 | |||
Acquisition-related costs | 0.1 | (0.5) | 1.3 | 7.4 | |||
Impairment of intangible assets | — | — | 81.0 | — | |||
Other expenses | 5.3 | (7.5) | 28.3 | 13.9 | |||
Total Operating Expenses | 226.0 | 205.0 | 974.0 | 860.1 | |||
Operating Income | 298.5 | 294.0 | 1,098.4 | 1,057.9 | |||
Non-operating (Expenses) Income: | |||||||
Interest expense | (12.9) | (13.2) | (51.5) | (62.4) | |||
Interest income | 7.2 | 3.7 | 27.3 | 12.0 | |||
Earnings on investments | (0.2) | 4.6 | 29.0 | 39.5 | |||
Other (expense) income, net | (12.9) | (1.6) | (19.4) | 0.6 | |||
Total Non-operating (Expenses) Income | (18.8) | (6.5) | (14.6) | (10.3) | |||
Income Before Income Tax Provision | 279.7 | 287.5 | 1,083.8 | 1,047.6 | |||
Income tax provision | 83.2 | 75.5 | 318.9 | 286.2 | |||
Net Income | 196.5 | 212.0 | 764.9 | 761.4 | |||
Net income allocated to participating securities | (0.9) | (1.2) | (3.9) | (3.9) | |||
Net Income Allocated to Common Stockholders | $ 195.6 | $ 210.8 | $ 761.0 | $ 757.5 | |||
Net Income Per Share Allocated to Common Stockholders: | |||||||
Basic earnings per share | $ 1.87 | $ 1.99 | $ 7.24 | $ 7.16 | |||
Diluted earnings per share | 1.86 | 1.98 | 7.21 | 7.13 | |||
Weighted average shares used in computing income per share: | |||||||
Basic | 104.8 | 105.7 | 105.1 | 105.8 | |||
Diluted | 105.1 | 106.2 | 105.5 | 106.2 | |||
Cboe Global Markets, Inc. and Subsidiaries
| ||||||||||||||||||||||||
(in millions) | December 31, | December 31, | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ 920.3 | $ 543.2 | ||||||||||||||||||||||
Financial investments | 110.3 | 57.5 | ||||||||||||||||||||||
Accounts receivable, net | 444.6 | 337.3 | ||||||||||||||||||||||
Margin deposits, clearing funds, and interoperability funds | 845.5 | 848.8 | ||||||||||||||||||||||
Digital assets - safeguarded assets | — | 51.3 | ||||||||||||||||||||||
Income taxes receivable | 73.8 | 74.5 | ||||||||||||||||||||||
Other current assets | 84.6 | 66.7 | ||||||||||||||||||||||
Total Current Assets | 2,479.1 | 1,979.3 | ||||||||||||||||||||||
Investments | 383.7 | 345.3 | ||||||||||||||||||||||
Property and equipment, net | 118.0 | 109.2 | ||||||||||||||||||||||
Property held for sale | — | 8.7 | ||||||||||||||||||||||
Operating lease right of use assets | 124.5 | 136.6 | ||||||||||||||||||||||
Goodwill | 3,124.2 | 3,140.6 | ||||||||||||||||||||||
Intangible assets, net | 1,376.9 | 1,561.5 | ||||||||||||||||||||||
Other assets, net | 182.7 | 206.3 | ||||||||||||||||||||||
Total Assets | $ 7,789.1 | $ 7,487.5 | ||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ 359.7 | $ 412.7 | ||||||||||||||||||||||
Section 31 fees payable | 182.0 | 51.9 | ||||||||||||||||||||||
Deferred revenue | 6.4 | 5.9 | ||||||||||||||||||||||
Margin deposits, clearing funds, and interoperability funds | 845.5 | 848.8 | ||||||||||||||||||||||
Digital assets - safeguarded liabilities | — | 51.3 | ||||||||||||||||||||||
Income taxes payable | 1.6 | 1.0 | ||||||||||||||||||||||
Current portion of contingent consideration liabilities | — | 11.8 | ||||||||||||||||||||||
Total Current Liabilities | 1,395.2 | 1,383.4 | ||||||||||||||||||||||
Long-term debt | 1,441.0 | 1,439.2 | ||||||||||||||||||||||
Non-current unrecognized tax benefits | 305.0 | 243.8 | ||||||||||||||||||||||
Deferred income taxes | 186.8 | 217.8 | ||||||||||||||||||||||
Non-current operating lease liabilities | 138.4 | 150.8 | ||||||||||||||||||||||
Other non-current liabilities | 43.1 | 67.5 | ||||||||||||||||||||||
Total Liabilities | 3,509.5 | 3,502.5 | ||||||||||||||||||||||
Stockholders' Equity: | ||||||||||||||||||||||||
Preferred stock | — | — | ||||||||||||||||||||||
Common stock | 1.0 | 1.1 | ||||||||||||||||||||||
Treasury stock at cost | (1.4) | (10.5) | ||||||||||||||||||||||
Additional paid-in capital | 1,512.5 | 1,478.6 | ||||||||||||||||||||||
Retained earnings | 2,815.9 | 2,525.2 | ||||||||||||||||||||||
Accumulated other comprehensive loss, net | (48.4) | (9.4) | ||||||||||||||||||||||
Total Stockholders' Equity | 4,279.6 | 3,985.0 | ||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ 7,789.1 | $ 7,487.5 | ||||||||||||||||||||||
Table 3 | ||||||||||||||||||||||||
Net Transaction and Clearing | Consolidated | Options | N.A. Equities |
| Futures | Global FX | Digital | |||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Transaction and clearing fees | $ 762.6 | $ 734.5 | $ 418.0 | $ 419.0 | $ 260.6 | $ 240.0 | $ 41.4 | $ 35.3 | $ 25.9 | $ 25.4 | $ 16.6 | $ 15.8 | $ 0.1 | $ (1.0) | ||||||||||
Liquidity payments | (365.7) | (352.9) | (131.7) | (135.3) | (222.2) | (209.5) | (8.5) | (8.0) | (2.7) | — | — | — | (0.6) | (0.1) | ||||||||||
Routing and clearing | (18.3) | (16.5) | (4.3) | (4.3) | (9.1) | (7.6) | (4.5) | (4.3) | — | — | (0.4) | (0.3) | — | — | ||||||||||
Net transaction and clearing fees | $ 378.6 | $ 365.1 | $ 282.0 | $ 279.4 | $ 29.3 | $ 22.9 | $ 28.4 | $ 23.0 | $ 23.2 | $ 25.4 | $ 16.2 | $ 15.5 | $ (0.5) | $ (1.1) | ||||||||||
Table 4 | ||||||||
Net Revenue by Revenue Caption Three Months Ended December 31, 2024 and 2023 (in millions) | Cash and Spot Markets Three Months Ended December 31, | Data Vantage Three Months Ended December 31, | Derivatives Markets Three Months Ended December 31, | Total Three Months Ended December 31, | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Transaction and clearing fees | $ 318.6 | $ 290.2 | $ — | $ — | $ 444.0 | $ 444.3 | $ 762.6 | $ 734.5 |
Access and capacity fees | — | — | 95.0 | 88.7 | — | — | 95.0 | 88.7 |
Market data fees | 14.3 | 17.0 | 53.0 | 47.9 | 8.3 | 7.8 | 75.6 | 72.7 |
Regulatory fees | 114.2 | 32.2 | — | — | 37.0 | 15.6 | 151.2 | 47.8 |
Other revenue | 21.5 | 22.3 | 0.7 | 0.9 | 1.0 | 1.8 | 23.2 | 25.0 |
Total revenues | $ 468.6 | $ 361.7 | $ 148.7 | $ 137.5 | $ 490.3 | $ 469.5 | $ 1,107.6 | $ 968.7 |
Liquidity payments | $ 229.7 | $ 217.0 | $ — | $ — | $ 136.0 | $ 135.9 | $ 365.7 | $ 352.9 |
Routing and clearing | 14.1 | 12.2 | — | — | 4.2 | 4.3 | 18.3 | 16.5 |
Section 31 fees | 114.1 | 32.0 | — | — | 28.0 | 8.2 | 142.1 | 40.2 |
Royalty fees and other cost of revenues | 11.8 | 13.6 | 2.8 | 2.3 | 42.4 | 44.2 | 57.0 | 60.1 |
Total cost of revenues | $ 369.7 | $ 274.8 | $ 2.8 | $ 2.3 | $ 210.6 | $ 192.6 | $ 583.1 | $ 469.7 |
Revenues less cost of revenues (net revenue) | $ 98.9 | $ 86.9 | $ 145.9 | $ 135.2 | $ 279.7 | $ 276.9 | $ 524.5 | $ 499.0 |
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, Cboe Global Markets has disclosed certain non-GAAP measures of operating performance. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. The non-GAAP measures provided in this press release include adjusted revenue less cost of revenue, adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted earnings, adjusted diluted earnings per share, effective tax rate on adjusted earnings, adjusted cash, net revenues in constant currency, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin.
Management believes that the non-GAAP financial measures presented in this press release provide additional and comparative information to assess trends in our core operations and a means to evaluate period-to-period comparisons. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results.
Amortization expense of acquired intangible assets: We amortize intangible assets acquired in connection with various acquisitions. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. As such, if intangible asset amortization is included in performance measures, it is more difficult to assess the day-to-day operating performance of the businesses, the relative operating performance of the businesses between periods and the earnings power of the company. Therefore, we believe performance measures excluding intangible asset amortization expense provide investors with an additional basis for comparison across accounting periods.
Acquisition-related costs: From time to time, we have pursued acquisitions, which have resulted in expenses which would not otherwise have been incurred in the normal course of the company's business operations. These expenses include integration costs, as well as legal, due diligence, impairment charges, and other third-party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing, and complexity of the transaction. Accordingly, we exclude these costs for purposes of calculating non-GAAP measures which provide an additional analysis of Cboe's ongoing operating performance or comparisons in Cboe's performance between periods.
The tables below show the reconciliation of each financial measure from GAAP to non-GAAP. The non-GAAP financial measures exclude the impact of those items detailed below and are referred to as adjusted financial measures.
Reconciliation of GAAP and Non-GAAP Information | ||||||||
Table 5 | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
(in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||
Reconciliation of Net Income Allocated to Common Stockholders to Non- | ||||||||
Net income allocated to common stockholders | $ 195.6 | $ 210.8 | $ 761.0 | $ 757.5 | ||||
Non-GAAP adjustments | ||||||||
Acquisition-related costs (1) | 0.1 | (0.5) | 1.3 | 7.4 | ||||
Amortization of acquired intangible assets (2) | 20.6 | 28.2 | 88.7 | 116.6 | ||||
Gain on Cboe Digital non-recourse notes and warrants wind down (3) | — | — | (1.4) | — | ||||
Cboe Digital syndication wind down (4) | — | — | (1.0) | — | ||||
Change in contingent consideration (5) | — | (14.4) | 2.1 | (14.4) | ||||
Impairment of intangible assets (6) | — | — | 81.0 | — | ||||
Loss on investments (7) | 14.4 | 1.8 | 31.4 | 1.8 | ||||
Costs related to Cboe Digital wind down (8) | 0.5 | — | 2.1 | — | ||||
Gain on sale of property held for sale (9) | — | — | (1.0) | — | ||||
Income from investment (10) | — | — | — | (2.1) | ||||
Total Non-GAAP adjustments | 35.6 | 15.1 | 203.2 | 109.3 | ||||
Income tax expense related to the items above | (7.9) | (7.4) | (52.2) | (30.7) | ||||
Tax reserves (11) | (2.5) | 1.9 | (8.1) | (6.0) | ||||
Deferred tax re-measurements (12) | — | 1.1 | — | 1.1 | ||||
Valuation allowances (13) | 0.6 | (2.7) | 5.0 | (2.7) | ||||
Net income allocated to participating securities - effect on reconciling items | (0.2) | — | (0.9) | (0.4) | ||||
Adjusted earnings | $ 221.2 | $ 218.8 | $ 908.0 | $ 828.1 | ||||
Reconciliation of Diluted EPS to Non-GAAP | ||||||||
Diluted earnings per common share | $ 1.86 | $ 1.98 | $ 7.21 | $ 7.13 | ||||
Per share impact of non-GAAP adjustments noted above | 0.24 | 0.08 | 1.40 | 0.67 | ||||
Adjusted diluted earnings per common share | $ 2.10 | $ 2.06 | $ 8.61 | $ 7.80 | ||||
Reconciliation of Operating Margin to Non-GAAP | ||||||||
Revenue less cost of revenue | $ 524.5 | $ 499.0 | $ 2,072.4 | $ 1,918.0 | ||||
Non-GAAP adjustments noted above | — | — | (1.0) | — | ||||
Adjusted revenue less cost of revenue | $ 524.5 | $ 499.0 | $ 2,071.4 | $ 1,918.0 | ||||
Operating expenses (14) | $ 226.0 | $ 205.0 | $ 974.0 | $ 860.1 | ||||
Non-GAAP adjustments noted above | 21.2 | 13.3 | 175.2 | 109.6 | ||||
Adjusted operating expenses | $ 204.8 | $ 191.7 | $ 798.8 | $ 750.5 | ||||
Operating income | $ 298.5 | $ 294.0 | $ 1,098.4 | $ 1,057.9 | ||||
Non-GAAP adjustments noted above | 21.2 | 13.3 | 174.2 | 109.6 | ||||
Adjusted operating income | $ 319.7 | $ 307.3 | $ 1,272.6 | $ 1,167.5 | ||||
Adjusted operating margin (15) | 61.0 % | 61.6 % | 61.4 % | 60.9 % | ||||
Reconciliation of Income Tax Rate to Non-GAAP | ||||||||
Income before income taxes | $ 279.7 | $ 287.5 | $ 1,083.8 | $ 1,047.6 | ||||
Non-GAAP adjustments noted above | 35.6 | 15.1 | 203.2 | 109.3 | ||||
Adjusted income before income taxes | $ 315.3 | $ 302.6 | $ 1,287.0 | $ 1,156.9 | ||||
Income tax expense | $ 83.2 | $ 75.5 | $ 318.9 | $ 286.2 | ||||
Non-GAAP adjustments noted above | 9.8 | 7.1 | 55.3 | 38.3 | ||||
Adjusted income tax expense | $ 93.0 | $ 82.6 | $ 374.2 | $ 324.5 | ||||
Adjusted income tax rate | 29.5 % | 27.3 % | 29.1 % | 28.0 % | ||||
(1) | This amount includes acquisition-related costs primarily from the company's Cboe Digital, Cboe Canada, and Cboe Asia Pacific acquisitions, which are included in acquisition-related costs on the condensed consolidated statements of income. |
(2) | This amount represents the amortization of acquired intangible assets related to the company's acquisitions, which is included in depreciation and amortization on the condensed consolidated statements of income. |
(3) | This amount represents the revaluation and the gain associated with the wind down of the Cboe Digital non-recourse notes and warrants, which is included in other (expense) income, net on the condensed consolidated statements of income. |
(4) | This amount represents the contra-revenue that was reversed as a result of the Cboe Digital syndication wind down, which is included in transaction and clearing fees on the condensed consolidated statements of income. |
(5) | This amount represents the gains and losses related to contingent consideration liabilities achieved related to the acquisitions of Cboe Canada and Cboe Asia Pacific, which is included in other expenses on the condensed consolidated statements of income. |
(6) | This amount represents the impairment of intangible assets related to the Cboe Digital wind down, which is included in impairment of intangible assets on the condensed consolidated statements of income. |
(7) | This amount represents the net loss on investments related to the company's minority investments in Globacap Technology Limited, StratiFi Technologies Inc., Coin Metrics Inc., Eris Innovations Holdings, LLC, and Curve Global Limited, as well as the loss on note receivable related to Cboe Digital, which were recorded in 2024 in other (expense) income, net on the condensed consolidated statements of income, and the net loss on minority investments in American Financial Exchange, LLC and Effective Investing Limited recorded in 2023, which are included in other (expense) income, net on the condensed consolidated statements of income. |
(8) | This amount represents certain wind down costs related to Cboe Digital, which are included in compensation and benefits on the condensed consolidated statements of income. |
(9) | This amount represents the net gain on the sale of the company's former headquarters, which is included in other (expense) income, net on the condensed consolidated statements of income. |
(10) | This amount represents the dividend from the company's minority investment in Vest Group Inc., which is included in other (expense) income, net on the condensed consolidated statements of income. In 2024, the company determined the dividend to be a recurring event and therefore has been excluded from the non-GAAP adjustments in 2024 and going forward. |
(11) | This amount represents the tax impact related to Section 199 matters. |
(12) | This amount represents remeasurements of deferred tax assets and liabilities at prevailing effective tax rates. |
(13) | This amount represents valuation allowance releases recorded against gross deferred tax assets for net operating losses. |
(14) | The company sponsors deferred compensation plans held in a trust. The expenses or income related to the deferred compensation plans are included in compensation and benefits ( |
(15) | Adjusted operating margin represents adjusted operating income divided by adjusted revenue less cost of revenue. |
EBITDA Reconciliations
EBITDA (earnings before interest, income taxes, depreciation and amortization) and Adjusted EBITDA are widely used non-GAAP financial measures of operating performance. EBITDA margin represents EBITDA divided by revenues less cost of revenues (net revenue). It is presented as supplemental information that the company believes is useful to investors to evaluate its results because it excludes certain items that are not directly related to the company's core operating performance. EBITDA is calculated by adding back to net income interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is calculated by adding back to EBITDA acquisition-related costs, change in contingent consideration, loss on investments, gain on sale of property held for sale, costs related to the Cboe Digital wind down, gain on Cboe Digital non-recourse notes and warrants wind down, impairment of intangible assets, contra-revenue associated with the Cboe Digital syndication wind down, and income from investment. EBITDA and Adjusted EBITDA should not be considered as substitutes either for net income, as an indicator of the company's operating performance, or for cash flow, as a measure of the company's liquidity. In addition, because EBITDA and Adjusted EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA margin represents Adjusted EBITDA divided by net revenue.
Table 6 (in millions, except percentages) | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
Reconciliation of Net Income Allocated to Common Stockholders to EBITDA and | 2024 | 2023 | 2024 | 2023 | ||||
Net income allocated to common stockholders | $ 195.6 | $ 210.8 | $ 761.0 | $ 757.5 | ||||
Interest expense, net | 5.7 | 9.5 | 24.2 | 50.4 | ||||
Income tax provision | 83.2 | 75.5 | 318.9 | 286.2 | ||||
Depreciation and amortization | 32.1 | 38.0 | 133.0 | 158.0 | ||||
EBITDA | $ 316.6 | $ 333.8 | $ 1,237.1 | $ 1,252.1 | ||||
EBITDA Margin | 60.4 % | 66.9 % | 59.7 % | 65.3 % | ||||
Non-GAAP adjustments not included in above line items | ||||||||
Acquisition-related costs | $ 0.1 | $ (0.5) | $ 1.3 | $ 7.4 | ||||
Change in contingent consideration | — | (14.4) | 2.1 | (14.4) | ||||
Loss on investments | 14.4 | 1.8 | 31.4 | 1.8 | ||||
Income from investment | — | — | — | (2.1) | ||||
Gain on sale of property held for sale | — | — | (1.0) | — | ||||
Cboe Digital syndication wind down | — | — | (1.0) | — | ||||
Gain on Cboe Digital non-recourse notes and warrants wind down | — | — | (1.4) | — | ||||
Impairment of intangible assets | — | — | 81.0 | — | ||||
Costs related to Cboe Digital wind down | 0.5 | — | 2.1 | — | ||||
Adjusted EBITDA | $ 331.6 | $ 320.7 | $ 1,351.6 | $ 1,244.8 | ||||
Adjusted EBITDA Margin | 63.2 % | 64.3 % | 65.2 % | 64.9 % | ||||
Table 7 (in millions) | December 31, | December 31, | ||||||
Reconciliation of Cash and Cash Equivalents to Adjusted Cash | 2024 | 2023 | ||||||
Cash and cash equivalents | $ 920.3 | $ 543.2 | ||||||
Financial investments | 110.3 | 57.5 | ||||||
Less deferred compensation plan assets | (40.3) | (36.7) | ||||||
Less cash collected for Section 31 Fees | (110.8) | (30.5) | ||||||
Adjusted Cash | $ 879.5 | $ 533.5 | ||||||
Table 8 (in millions) | |||||||
Reconciliation of GAAP Net Revenues to Net Revenues in Constant Currency – | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ 56.2 | $ 48.0 | $ 220.2 | $ 190.2 | ||||
Constant currency adjustment | (0.2) | (1.9) | (0.7) | (0.4) | |||
$ 56.0 | $ 46.1 | $ 219.5 | $ 189.8 | ||||
(1) | Net revenues in constant currency is calculated by converting the current period GAAP net revenues in local currency using the foreign currency exchange rates that were in effect during the previous comparable period. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/cboe-global-markets-reports-results-for-fourth-quarter-2024-and-full-year-302370933.html
SOURCE Cboe Global Markets
FAQ
What was Cboe's (CBOE) revenue performance in Q4 and full-year 2024?
How did CBOE's earnings per share (EPS) perform in Q4 2024?
What is Cboe's (CBOE) revenue growth guidance for 2025?
What was the performance of CBOE's different business segments in 2024?
What is CBOE's projected operating expense guidance for 2025?
