CBOE$CBOE

Cboe Global Markets Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Cboe reported record net revenue and strong earnings for Q4 2023, driven by growth in derivatives and data and access solutions.

Cboe Global Markets reported a strong finish to 2023 with record net revenue for the quarter of $499.0 million, up 9 percent, and diluted EPS of $1.98, up 33 percent. Adjusted diluted EPS was $2.06, a 14 percent increase. The company is establishing 2024 organic total net revenue growth target of 5 to 7 percent.

  • Diluted EPS for the Quarter of $1.98, Up 33 percent
  • Adjusted Diluted EPS for the Quarter of $2.06, Up 14 percent
  • Record Net Revenue for the Quarter of $499.0 million, Up 9 percent
  • Establishing 2024 organic total net revenue growth target of 5 to 7 percent

Headline financials

Total Revenue

$499M

Previous: $457M+9.2%
EPS (adj)

$2.06

Previous: $1.80+14.4%
Capital Expenditures

$17.1M

Previous: $27.4M-37.6%
Free Cash Flow

-$206M

Previous: -$171M-20.5%
Net Income

$212M

Previous: $159M+33.3%
Operating Income

$294M

Previous: $251M+17.4%
Gross Profit

$499M

Previous: $457M+9.2%
Stock-Based Comp

$6.2M

Previous: $7.6M-18.4%

Revenue & EPS history

Cboe · Revenue · Quarterly

$499M

Q4 2023+9.2%vs Q4 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 anticipates organic total net revenue growth will average 5-7% in 2024, with Data and Access Solutions organic net revenue growth averaging 7-10%. They are targeting expense growth in the 6-8% range for the year.

Tailwinds

  • Organic total net revenue growth is expected to be in the range of 5 to 7 percentage points in 2024
  • Organic net revenue from Data and Access Solutions is expected to increase by approximately 7 to 10 percentage points in 2024
  • Adjusted operating expenses in 2024 are expected to be in the range of $798 to $808 million
  • Other income (expense) from minority investments is expected to contribute a $37 to $43 million benefit in 2024.
  • Capital expenditures for 2024 are expected to be in the range of $51 to $57 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.
  • 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.
  • 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
  • Significant changes in trading volume
  • Significant changes in expenses

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 Q4 2023

Historical avgQ4 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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