CBOE$CBOE

Cboe Global Markets Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Cboe's financial performance for Q2 2021 showed significant revenue growth driven by strong trading in proprietary index products and data demand. The acquisition of Chi-X Asia Pacific was closed, expanding the global derivatives and securities network.

Cboe Global Markets reported strong financial results for the second quarter of 2021, with net revenue increasing by 18% to $351 million. Diluted EPS decreased by 5% to $0.98, while adjusted diluted EPS increased by 5% to $1.38. The company returned $79 million to shareholders through share repurchases and dividends. The company increased its 2021 organic growth target for recurring non-transaction revenue to 12 to 13 percent.

  • Net revenue increased by 18% year-over-year, driven by transaction and clearing fees, and access and capacity fees.
  • Adjusted diluted EPS increased by 5% compared to the second quarter of 2020.
  • The company returned $79 million to shareholders through share repurchases and dividends.
  • Cboe increased its 2021 organic growth target for recurring non-transaction revenue to 12 to 13 percent.

Headline financials

Total Revenue

$351M

Previous: $297M+18.1%
EPS (adj)

$1.38

Previous: $1.31+5.3%
Options ADV

11.1M

Previous: 9.9M+11.5%
U.S. Equities Exchange ADV

14.3

Previous: 12.4B-100.0%
U.S. Equities Exchange Net Capture

$0.02

Previous: $0.03-20.0%
Futures ADV

214.0K

Previous: 144.0K+48.6%
Futures RPC

$1.65

Previous: $1.74-5.5%
European Equities ADNV

$17.40

No prior period
European Equities Net Capture

$0.27

No prior period
Global FX ADNV

$32.5B

Previous: $31.8B+2.2%
Global FX Net Capture

$2.71

Previous: $2.77-2.2%
Capital Expenditures

$11.4M

Previous: $6.6M+72.7%
Free Cash Flow

$111M

Previous: $318M-65.0%
Net Income

$105M

Previous: $113M-7.1%
Operating Income

$190M

Previous: $162M+17.5%
Gross Profit

$351M

Previous: $297M+18.1%
Cash & Equivalents

$451M

Previous: $210M+114.6%
Total Assets

$7.1B

Previous: $5.37B+32.2%
Stock-Based Comp

$5.5M

Previous: $4.6M+19.6%

Revenue & EPS history

Cboe · Revenue · Quarterly

$351M

Q2 2021+18.1%vs Q2 2020
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

Cboe · $351M total across 5 segments · Q2 2021

  • Options
    $179M+18.6%
  • North American Equities
    $89.2M-1.5%
  • Europe and APAC
    $41.6M+97.2%
  • Futures
    $27.4M+31.1%
  • Global FX
    $13.8M+0.7%

Forward guidance

Cboe updated or reaffirmed its guidance for the 2021 fiscal year, incorporating the acquisition of Chi-X. Recurring non-transaction revenue is now expected to increase by 15 to 16 percent. Adjusted operating expenses are expected to be in the range of $531 to $539 million. The effective tax rate on adjusted earnings for the full year is expected to be in the range of 27.5 to 29.5 percent.

Tailwinds

  • Recurring non-transaction revenue is now expected to increase by 15 to 16 percent, from a base of $342 million in 2020, up from previous guidance of 11 to 12 percent, with organic growth targeted in a range of 12 to 13 percent versus previous guidance of 10 to 11 percent.
  • Revenue from acquisitions held less than a year is now expected to contribute net revenue growth in a range of 5 to 7 percentage points in 2021, up from 4 to 6 percentage points, reflecting the addition of Chi-X on July 1.
  • Adjusted operating expenses are expected to be in the range of $531 to $539 million.
  • Depreciation and amortization expense is now expected to be in the range of $34 to $38 million.
  • Capital expenditures are now expected to be in the range of $55 to $60 million.

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 Q2 2021

Historical avgQ2 2021

+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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