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Jun 30, 2021
Cboe Q2 2021 Earnings Report
Cboe's financial performance for Q2 2021 showed significant revenue growth driven by strong trading in proprietary index products and data demand. The acquisition of Chi-X Asia Pacific was closed, expanding the global derivatives and securities network.
Key Takeaways
Cboe Global Markets reported strong financial results for the second quarter of 2021, with net revenue increasing by 18% to $351 million. Diluted EPS decreased by 5% to $0.98, while adjusted diluted EPS increased by 5% to $1.38. The company returned $79 million to shareholders through share repurchases and dividends. The company increased its 2021 organic growth target for recurring non-transaction revenue to 12 to 13 percent.
Net revenue increased by 18% year-over-year, driven by transaction and clearing fees, and access and capacity fees.
Adjusted diluted EPS increased by 5% compared to the second quarter of 2020.
The company returned $79 million to shareholders through share repurchases and dividends.
Cboe increased its 2021 organic growth target for recurring non-transaction revenue to 12 to 13 percent.
Revenue by Segment
Forward Guidance
Cboe updated or reaffirmed its guidance for the 2021 fiscal year, incorporating the acquisition of Chi-X. Recurring non-transaction revenue is now expected to increase by 15 to 16 percent. Adjusted operating expenses are expected to be in the range of $531 to $539 million. The effective tax rate on adjusted earnings for the full year is expected to be in the range of 27.5 to 29.5 percent.
Positive Outlook
- Recurring non-transaction revenue is now expected to increase by 15 to 16 percent, from a base of $342 million in 2020, up from previous guidance of 11 to 12 percent, with organic growth targeted in a range of 12 to 13 percent versus previous guidance of 10 to 11 percent.
- Revenue from acquisitions held less than a year is now expected to contribute net revenue growth in a range of 5 to 7 percentage points in 2021, up from 4 to 6 percentage points, reflecting the addition of Chi-X on July 1.
- Adjusted operating expenses are expected to be in the range of $531 to $539 million.
- Depreciation and amortization expense is now expected to be in the range of $34 to $38 million.
- Capital expenditures are now expected to be in the range of $55 to $60 million.
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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