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Mar 31, 2022
Cboe Q1 2022 Earnings Report
Cboe's Q1 2022 earnings were reported, revealing a mix of growth and challenges across its segments.
Key Takeaways
Cboe Global Markets reported a 14% increase in net revenue, reaching $418 million, driven by strong performances in its core derivatives franchise and contributions from European cash equities and Data and Access Solutions. Diluted EPS decreased by 20% to $1.02, while adjusted diluted EPS increased by 13% to $1.73. The company reaffirmed its full-year revenue and expense guidance for 2022.
Net revenue increased by 14% to $418 million.
Diluted EPS decreased 20% to $1.02.
Adjusted diluted EPS increased 13% to $1.73.
Reaffirmed 2022 adjusted operating expense guidance of $617 to $625 million.
Revenue by Segment
Forward Guidance
Cboe reaffirmed its total organic net revenue growth target for 2022 to be in the range of 5 to 7 percentage points. Organic net revenue from Data and Access Solutions is now expected to increase by approximately 8 to 11 percent in 2022, up from previous guidance of 7 to 10 percent. Reaffirmed adjusted operating expenses in 2022 are expected to be in the range of $617 to $625 million.
Positive Outlook
- Total organic net revenue growth is expected to be in the range of 5 to 7 percentage points in 2022.
- Revenue from acquisitions held less than a year is now expected to contribute total net revenue growth in a range of 2 to 3 percentage points in 2022, up from previous guidance of 1 to 3 percentage points.
- Organic net revenue from Data and Access Solutions is now expected to increase by approximately 8 to 11 percent in 2022, from a base of $419 million in 2021, up from previous guidance of 7 to 10 percent.
- Reaffirmed adjusted operating expenses in 2022 are expected to be in the range of $617 to $625 million, from a base of $531 million in 2021.
- 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.
Challenges Ahead
- Pending acquisitions of ErisX and NEO now have the potential to add an incremental $30 to $35 million of expenses in 2022, contingent on the timing of closings which are subject to customary closing conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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