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Jun 30, 2022
Cboe Q2 2022 Earnings Report
Cboe's second quarter results were reported, with record-setting revenue and growth across various segments, despite a diluted EPS loss due to a digital reporting unit impairment.
Key Takeaways
Cboe Global Markets reported strong second-quarter results, with net revenue up 21% year-over-year to $424 million. Adjusted diluted EPS increased by 21% to $1.67. The company increased its organic total net revenue growth target for 2022 to 9 to 11 percent.
Diluted EPS for the Quarter of $(1.74), Down 278 percent, primarily due to the impairment of goodwill recognized in the Digital reporting unit
Adjusted Diluted EPS for the Quarter of $1.67, Up 21 percent
Net Revenue for the Quarter of $424 million, Up 21 percent
Increases Organic Total Net Revenue Growth Target for 2022 to 9 to 11 percent, from 5 to 7 percent; Increases Data and Access Solutions Organic Net Revenue Growth Target to 10 to 13 percent, from 8 to 11 percent
Revenue by Segment
Forward Guidance
Cboe provided guidance for the 2022 fiscal year, expecting organic net revenue growth in the range of 9 to 11 percentage points. Organic net revenue from Data and Access Solutions is expected to increase by approximately 10 to 13 percent. Adjusted operating expenses in 2022 are now expected to be in the range of $659 to $667 million.
Positive Outlook
- Organic net revenue growth is expected to be in the range of 9 to 11 percentage points in 2022, up from previous guidance of 5 to 7 percentage points.
- Revenue from acquisitions held less than a year is expected to contribute total net revenue growth in a range of 2 to 3 percentage points in 2022.
- Organic net revenue from Data and Access Solutions is now expected to increase by approximately 10 to 13 percent in 2022, from a base of $419 million in 2021, up from previous guidance of 8 to 11 percent.
- Reaffirmed depreciation and amortization expense for 2022, which is included in adjusted operating expenses above, is expected to be in the range of $40 to $44 million, excluding the expected amortization of acquired intangible assets.
- 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
- Adjusted operating expenses in 2022 are now expected to be in the range of $659 to $667 million, from a base of $531 million in 2021, up from previous guidance of $617 to $625 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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