CBOE$CBOE

Cboe Global Markets Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Cboe's second quarter results were reported, with record-setting revenue and growth across various segments, despite a diluted EPS loss due to a digital reporting unit impairment.

Cboe Global Markets reported strong second-quarter results, with net revenue up 21% year-over-year to $424 million. Adjusted diluted EPS increased by 21% to $1.67. The company increased its organic total net revenue growth target for 2022 to 9 to 11 percent.

  • Diluted EPS for the Quarter of $(1.74), Down 278 percent, primarily due to the impairment of goodwill recognized in the Digital reporting unit
  • Adjusted Diluted EPS for the Quarter of $1.67, Up 21 percent
  • Net Revenue for the Quarter of $424 million, Up 21 percent
  • Increases Organic Total Net Revenue Growth Target for 2022 to 9 to 11 percent, from 5 to 7 percent; Increases Data and Access Solutions Organic Net Revenue Growth Target to 10 to 13 percent, from 8 to 11 percent

Headline financials

Total Revenue

$424M

Previous: $351M+21.0%
EPS (adj)

$1.67

Previous: $1.38+21.0%
Options ADV

13.1K

Previous: 11.1M-99.9%
Multi-listed Options ADV

10.4K

No prior period
Index Options ADV

2.7K

No prior period
Multi-listed RPC

$0.07

No prior period
Index Options RPC

$0.88

No prior period
U.S. Equities Exchange ADV

12.6B

Previous: 14.3+88111888011.9%
U.S. Equities Exchange Net Capture

$0.02

Previous: $0.02+0.0%
Futures ADV

222

Previous: 214.0K-99.9%
Futures RPC

$1.68

Previous: $1.65+1.8%
European Equities Net Capture

$0.24

Previous: $0.27-10.9%
Global FX ADNV

$39.6B

Previous: $32.5B+21.8%
Global FX Net Capture

$2.71

Previous: $2.71+0.0%
Capital Expenditures

$11.4M

Previous: $11.4M+0.0%
Free Cash Flow

-$646M

Previous: $111M-680.2%
Net Income

-$185M

Previous: $105M-275.4%
Operating Income

-$237M

Previous: $190M-224.9%
Gross Profit

$424M

Previous: $351M+21.0%
Cash & Equivalents

$373M

Previous: $451M-17.2%
Total Assets

$7.48B

Previous: $7.1B+5.3%
Stock-Based Comp

$7M

Previous: $5.5M+27.3%

Revenue & EPS history

Cboe · Revenue · Quarterly

$424M

Q2 2022+21%vs Q2 2021
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Cboe · $424M total across 5 segments · Q2 2022

  • Options
    $235M+31.7%
  • North American Equities
    $92.7M+3.9%
  • Europe and APAC
    $49.9M+20.0%
  • Futures
    $29.6M+8.0%
  • Global FX
    $16.6M+20.3%

Forward guidance

Cboe provided guidance for the 2022 fiscal year, expecting organic net revenue growth in the range of 9 to 11 percentage points. Organic net revenue from Data and Access Solutions is expected to increase by approximately 10 to 13 percent. Adjusted operating expenses in 2022 are now expected to be in the range of $659 to $667 million.

Tailwinds

  • Organic net revenue growth is expected to be in the range of 9 to 11 percentage points in 2022, up from previous guidance of 5 to 7 percentage points.
  • Revenue from acquisitions held less than a year is expected to contribute total net revenue growth in a range of 2 to 3 percentage points in 2022.
  • Organic net revenue from Data and Access Solutions is now expected to increase by approximately 10 to 13 percent in 2022, from a base of $419 million in 2021, up from previous guidance of 8 to 11 percent.
  • Reaffirmed depreciation and amortization expense for 2022, which is included in adjusted operating expenses above, is expected to be in the range of $40 to $44 million, excluding the expected amortization of acquired intangible assets.
  • Reaffirmed the effective tax rate on adjusted earnings for the full year 2022 is expected to be in the range of 27.5 to 29.5 percent.

Headwinds

  • Adjusted operating expenses in 2022 are now expected to be in the range of $659 to $667 million, from a base of $531 million in 2021, up from previous guidance of $617 to $625 million.
  • The updated 2022 guidance considers incremental investment spend in technology and headcount to support Cboe’s numerous growth initiatives, deals closed during 2021 but not fully reflected in the 2021 cost base, recent acquisitions of NEO and ErisX and increases in core expenses.
  • The guidance excludes the expected amortization of acquired intangible assets of $125 million; the company plans to reflect the exclusion of this amount in its non-GAAP reconciliation.
  • 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 Q2 2022

Historical avgQ2 2022

+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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