CBOE$CBOE

Cboe Global Markets Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cboe's second quarter results for 2023 were reported, showing growth in derivatives and data and access solutions, with a ninth consecutive quarter of double-digit net revenue growth.

Cboe Global Markets reported a 10% increase in net revenue, reaching $467.1 million, and a 7% increase in adjusted diluted EPS to $1.78 for the second quarter of 2023. The company's Derivatives business saw a 21% net revenue increase, while Data and Access Solutions grew by 9%. Cboe anticipates being at the higher end of its organic total net revenue growth target of 7-9% for 2023 and has decreased its adjusted operating expense guidance to $766 to $774 million.

  • Diluted EPS for the quarter was $1.57.
  • Adjusted Diluted EPS was $1.78, up 7 percent.
  • Net Revenue for the quarter was $467.1 million, up 10 percent.
  • The company anticipates being at the higher end of its organic total net revenue growth range of 7 to 9 percent in 2023.

Headline financials

Total Revenue

$467M

Previous: $424M+10.1%
EPS (adj)

$1.78

Previous: $1.67+6.6%
Options ADV

33.3

Previous: 13.1K-99.7%
Multi-listed Options ADV

10.6M

Previous: 10.4K+102251.1%
Index Options ADV

3.7M

Previous: 2.7K+137479.4%
Multi-listed RPC

$0.06

Previous: $0.07-7.6%
Index Options RPC

$0.88

Previous: $0.88-0.7%
U.S. Equities Exchange ADV

12.7

Previous: 12.6B-100.0%
Futures RPC

$1.83

Previous: $1.68+8.9%
European Equities ADNV

$23.80

No prior period
European Equities Net Capture

$0.23

Previous: $0.24-3.4%
Global FX ADNV

$19.50

Previous: $39.6B-100.0%
Global FX Net Capture

$2.66

Previous: $2.71-1.8%
Capital Expenditures

$7.8M

Previous: $11.4M-31.6%
Free Cash Flow

-$511M

Previous: -$646M+20.9%
Net Income

$167M

Previous: -$185M+190.5%
Operating Income

$245M

Previous: -$237M+203.1%
Gross Profit

$467M

Previous: $424M+10.1%
Cash & Equivalents

$414M

Previous: $373M+10.8%
Total Assets

$7.2B

Previous: $7.48B-3.7%
Stock-Based Comp

$9.1M

Previous: $7M+30.0%

Revenue & EPS history

Cboe · Revenue · Quarterly

$467M

Q2 2023+10.1%vs Q2 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Cboe · $468M total across 5 segments · Q2 2023

  • Options
    $283M+20.4%
  • North American Equities
    $90.8M-2.0%
  • Europe and APAC
    $47.3M-5.2%
  • Futures
    $29.2M-1.4%
  • Global FX
    $17.8M+7.2%

Forward guidance

Cboe provided guidance for the 2023 fiscal year.

Tailwinds

  • Anticipates higher end of organic total net revenue growth range of 7 to 9 percentage points in 2023, above medium-term organic total net revenue guidance expectations of 5 to 7 percentage points.
  • Reaffirms 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.
  • Adjusted operating expenses in 2023 are now expected to be in the range of $766 to $774 million, down from previous guidance of $769 to $779 million.
  • Other income (expense) benefit from minority investments is expected to contribute a $34 to $40 million benefit in 2023, up from the previous range of $27 to $33 million.
  • Reaffirms 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.

Headwinds

  • Revenue from acquisitions held less than a year is now expected to contribute total net revenue growth of approximately 0.4 percentage points in 2023, down from previous guidance of 0.5 percentage points.
  • The guidance excludes the expected amortization of acquired intangible assets of $116 million, up from previous guidance of $112 million; the company reflects the exclusion of this amount in its non-GAAP reconciliation.
  • Depreciation and amortization expense for 2023, which is included in adjusted operating expenses above, is now expected to be in the range of $40 to $44 million, down from the previous range of $48 to $52 million, excluding the expected amortization of acquired intangible assets.
  • Significant changes in trading volume, expenses, tax laws or rates and other items could materially impact this expectation.
  • Capital expenditures for 2023 are now expected to be in the range of $48 to $54 million, down from the previous guidance of $60 to $66 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 2023

Historical avgQ2 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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