CBOE$CBOE

Cboe Global Markets Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Cboe reported record net revenue and record adjusted earnings, driven by strong growth in derivatives and data and access solutions businesses.

Cboe Global Markets reported record results for Q1 2023, with diluted EPS up 60 percent to $1.63 and adjusted diluted EPS up 10 percent to $1.90. Net revenue increased by 13 percent to a record $471.4 million, driven by growth in derivatives and data and access solutions. The company reaffirmed its organic total net revenue growth target of 7 to 9 percent for 2023.

  • Diluted EPS for the Quarter of $1.63, Up 60 percent
  • Record Adjusted Diluted EPS for the Quarter of $1.90, Up 10 percent
  • Record Net Revenue for the Quarter of $471.4 million, Up 13 percent
  • Reaffirmed Organic Total Net Revenue Growth Target for 2023 of 7 to 9 percent and Data and Access Solutions Organic Net Revenue Growth Target of 7 to 10 percent

Headline financials

Total Revenue

$471M

Previous: $418M+12.7%
EPS (adj)

$1.90

Previous: $1.73+9.8%
Options ADV

14.7M

Previous: 13.4M+9.4%
Multi-listed Options ADV

11.1M

Previous: 11.0M+0.8%
Index Options ADV

3.6M

Previous: 2.4M+48.9%
U.S. Equities Exchange ADV

11.8B

Previous: 12.9B-8.5%
U.S. Equities Exchange Net Capture

$0.02

Previous: $0.02+11.8%
Futures ADV

231.8K

Previous: 254.0K-8.7%
Futures RPC

$1.73

Previous: $1.64+5.4%
European Equities Net Capture

$0.21

Previous: $0.23-7.7%
Global FX ADNV

$45B

Previous: $42B+7.1%
Global FX Net Capture

$2.64

Previous: $2.67-1.1%
Capital Expenditures

$12.4M

Previous: $10.8M+14.8%
Free Cash Flow

$1.02B

Previous: $1.25B-18.5%
Net Income

$173M

Previous: $109M+58.8%
Operating Income

$248M

Previous: $240M+3.4%
Gross Profit

$471M

Previous: $418M+12.7%
Cash & Equivalents

$436M

Previous: $659M-33.9%
Total Assets

$7.9B

Previous: $8.2B-3.6%
Stock-Based Comp

$16.9M

Previous: $9.1M+85.7%

Revenue & EPS history

Cboe · Revenue · Quarterly

$471M

Q1 2023+12.7%vs Q1 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Cboe · $473M total across 5 segments · Q1 2023

  • Options
    $281M+28.1%
  • North American Equities
    $93.1M+0.0%
  • Europe and APAC
    $49.3M-14.3%
  • Futures
    $31.1M-0.3%
  • Global FX
    $18.5M+8.2%

Forward guidance

Cboe provided guidance for the 2023 fiscal year. Reaffirmed organic total net revenue growth is expected to be in the range of 7 to 9 percentage points in 2023, above medium-term organic total net revenue guidance expectations of 5 to 7 percentage points. Reaffirmed adjusted operating expenses in 2023 are expected to be in the range of $769 to $779 million, from a base of $652 million in 2022.

Tailwinds

  • Reaffirmed organic total net revenue growth is expected to be in the range of 7 to 9 percentage points in 2023, above medium-term organic total net revenue guidance expectations of 5 to 7 percentage points.
  • Reaffirmed revenue from acquisitions held less than a year is expected to contribute total net revenue growth of 0.5 percentage points in 2023.
  • Reaffirmed organic net revenue from Data and Access Solutions is expected to increase by approximately 7 to 10 percentage points in 2023, in line with medium-term guidance expectations.
  • Reaffirmed other income (expense), net, is expected to contribute a $27 to $33 million benefit in 2023 given expected performance of minority investments.
  • Reaffirmed capital expenditures for 2023 are expected to be in the range of $60 to $66 million.

Headwinds

  • Adjusted operating expenses in 2023 are expected to be in the range of $769 to $779 million, from a base of $652 million in 2022.
  • The guidance excludes the expected amortization of acquired intangible assets of $112 million; the company plans to reflect the exclusion of this amount in its non-GAAP reconciliation.
  • Reaffirmed depreciation and amortization expense for 2023, which is included in adjusted operating expenses above, is expected to be in the range of $48 to $52 million, excluding the expected amortization of acquired intangible assets.
  • The effective tax rate on adjusted earnings for the full year 2023 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.
  • Specific quantifications of the amounts that would be required to reconcile the company’s organic and inorganic growth guidance, adjusted operating expenses guidance and the effective tax rate on adjusted earnings guidance are not available.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+9.0%

Q1 2026

Best reaction

-7.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.0%+15.3%+10.5%
Q3 2025+3.7%+6.2%+9.0%
Q2 2025+2.8%+2.9%-2.1%
Q1 2025+2.4%+5.9%+3.6%
Q4 2025+1.3%+2.4%+2.9%
Q3 2024-1.9%-5.7%+1.1%
Q4 2024+1.3%-5.7%+1.1%
Q2 2024+5.7%+8.9%+10.6%
Q4 2023-1.6%-0.1%+1.2%
Q3 2023+6.9%+6.9%+10.7%
Q2 2023+4.5%+4.4%+7.4%
Q1 2023-0.4%+1.0%-1.4%
Q4 2022+4.5%+5.0%+4.6%
Q3 2022+1.9%-1.3%+2.7%
Q2 2022-7.3%-6.2%-4.2%
Q1 2022-2.9%-0.5%-3.0%
Q4 2021+2.8%+4.0%+3.3%
Q3 2021+1.9%+2.7%-1.7%
Q2 2021+4.1%+6.4%+8.2%
Q1 2021+3.3%+6.1%+7.7%
Q4 2020-3.3%-5.1%+10.0%
Q3 2020+5.2%+9.8%+15.8%
Q2 2020-0.6%-0.3%+5.6%
Q1 2020-5.0%-1.9%+7.1%
Q4 2019-3.3%-3.4%-8.7%
Q3 2019-1.4%-0.6%+3.3%
Q2 2019-0.3%+2.6%+3.6%
Q1 2019+3.2%+2.7%+8.6%
Q4 2018-0.9%+0.0%-2.8%
Q3 2018+1.5%+0.7%-2.6%
Q2 2018-3.0%-3.2%+5.2%
Q1 2018-2.2%-1.5%-6.7%
Q4 2017-0.4%+3.5%+12.0%
Q3 2017-0.9%+0.0%+8.5%
Q2 2017-0.4%+1.9%+6.3%
Q1 2017+3.1%+2.2%+8.2%
Q4 2016+1.3%-0.6%+0.3%
Q3 2016+1.7%+1.2%+10.1%
Q2 2016+0.1%+0.7%+0.8%
Q1 2016-1.5%
Q4 2015-6.1%
Q3 2015-1.2%
Q2 2015+1.1%
Q1 2015-1.3%
Q4 2014-5.8%
Q3 2014+3.6%
Q2 2014+1.5%
Q1 2014-4.2%
Q4 2013+5.2%
Q3 2013+2.6%
Q2 2013-4.1%
Q1 2013+3.8%
Q4 2012+1.4%
Q3 2012+2.5%
Q2 2012-0.7%
Q1 2011+0.3%
Q1 2012+2.3%
Q4 2011-0.8%
Q4 2009-0.8%
Q3 2011-4.3%
Q3 2010-4.3%
Q2 2010+2.8%
Q2 2011+2.8%
Q4 2010+2.8%

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