CBOE$CBOE

Cboe Global Markets Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Cboe reported strong earnings, record adjusted earnings, and record net revenues for Q3 2023, driven by Derivatives and Data and Access Solutions categories.

Cboe Global Markets reported a strong third quarter in 2023, with diluted EPS up 38 percent to $1.95 and a record adjusted diluted EPS of $2.06, up 18 percent. The company also achieved record net revenue of $480.5 million, a 9 percent increase compared to the same period last year. The company reaffirms high end of organic total net revenue growth range of 7 to 9 percent in 2023.

  • Diluted EPS for the Quarter of $1.95, Up 38 percent
  • Record Adjusted Diluted EPS for the Quarter of $2.06, Up 18 percent
  • Record Net Revenue for the Quarter of $480.5 million, Up 9 percent
  • Decreases 2023 Adjusted Operating Expense Guidance to $754 to $762 million, from $766 to $774 million.

Headline financials

Total Revenue

$481M

Previous: $442M+8.6%
EPS (adj)

$2.06

Previous: $1.74+18.4%
Options ADV

14.6K

Previous: 33.8+43071.6%
Multi-listed Options ADV

10.8K

Previous: 28.6+37830.1%
Index Options ADV

3.7K

No prior period
Multi-listed RPC

$0.06

Previous: $0.06-9.8%
Index Options RPC

$0.89

Previous: $0.90-0.2%
U.S. Equities Exchange ADV

12.7

Previous: 13.3-4.5%
U.S. Equities Exchange Net Capture

$0.02

Previous: $0.02-4.3%
Futures ADV

230

Previous: 205+12.2%
Futures RPC

$1.75

Previous: $1.70+3.1%
European Equities ADNV

$34.3B

Previous: $24.60+139430894208.9%
European Equities Net Capture

$0.23

Previous: $0.23+1.3%
Global FX ADNV

$44.4B

Previous: $41.3B+7.5%
Global FX Net Capture

$2.64

Previous: $2.68-1.5%
Capital Expenditures

$7.7M

Previous: $10.2M-24.5%
Free Cash Flow

$729M

Previous: $159M+358.3%
Net Income

$208M

Previous: $150M+39.2%
Operating Income

$271M

Previous: $237M+14.5%
Gross Profit

$481M

Previous: $442M+8.6%
Cash & Equivalents

$403M

Previous: $353M+14.1%
Total Assets

$7.73B

Previous: $7.3B+6.0%
Stock-Based Comp

$9.1M

Previous: $7M+30.0%

Revenue & EPS history

Cboe · Revenue · Quarterly

$481M

Q3 2023+8.6%vs Q3 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Cboe · $482M total across 5 segments · Q3 2023

  • Options
    $291M+13.8%
  • North American Equities
    $95.1M-1.7%
  • Europe and APAC
    $45.6M+2.5%
  • Futures
    $32.4M+14.1%
  • Global FX
    $18.3M+5.8%

Forward guidance

Cboe reaffirms its high-end organic total net revenue growth target of 7-9% for 2023 and expects Data and Access Solutions organic net revenue growth to finish in the range of 7-10%. Adjusted operating expense guidance for 2023 is decreased to $754 to $762 million.

Tailwinds

  • Reaffirms high end of organic total net revenue growth range of 7 to 9 percentage points in 2023
  • Reaffirms revenue from acquisitions held less than a year is expected to contribute total net revenue growth of approximately 0.4 percentage points in 2023.
  • Reaffirms organic net revenue from Data and Access Solutions is expected to increase by approximately 7 to 10 percentage points in 2023
  • Adjusted operating expenses in 2023 are now expected to be in the range of $754 to $762 million, down from previous guidance of $766 to $774 million.
  • Other income (expense) from minority investments is now expected to contribute a $38 to $44 million benefit in 2023, up from the previous range of $34 to $40 million.

Headwinds

  • 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.
  • 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 expenses 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 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.
  • Significant changes in trading volume, expenses, tax laws or rates and other items could materially impact this expectation.

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 Q3 2023

Historical avgQ3 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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