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Jun 30, 2023
Cboe Q2 2023 Earnings Report
Cboe's second quarter results for 2023 were reported, showing growth in derivatives and data and access solutions, with a ninth consecutive quarter of double-digit net revenue growth.
Key Takeaways
Cboe Global Markets reported a 10% increase in net revenue, reaching $467.1 million, and a 7% increase in adjusted diluted EPS to $1.78 for the second quarter of 2023. The company's Derivatives business saw a 21% net revenue increase, while Data and Access Solutions grew by 9%. Cboe anticipates being at the higher end of its organic total net revenue growth target of 7-9% for 2023 and has decreased its adjusted operating expense guidance to $766 to $774 million.
Diluted EPS for the quarter was $1.57.
Adjusted Diluted EPS was $1.78, up 7 percent.
Net Revenue for the quarter was $467.1 million, up 10 percent.
The company anticipates being at the higher end of its organic total net revenue growth range of 7 to 9 percent in 2023.
Revenue by Segment
Forward Guidance
Cboe provided guidance for the 2023 fiscal year.
Positive Outlook
- Anticipates higher end of organic total net revenue growth range of 7 to 9 percentage points in 2023, above medium-term organic total net revenue guidance expectations of 5 to 7 percentage points.
- Reaffirms organic net revenue from Data and Access Solutions is expected to increase by approximately 7 to 10 percentage points in 2023, in line with medium-term guidance expectations.
- Adjusted operating expenses in 2023 are now expected to be in the range of $766 to $774 million, down from previous guidance of $769 to $779 million.
- Other income (expense) benefit from minority investments is expected to contribute a $34 to $40 million benefit in 2023, up from the previous range of $27 to $33 million.
- Reaffirms the effective tax rate on adjusted earnings for the full year 2023 is expected to be in the range of 28.5 to 30.5 percent.
Challenges Ahead
- Revenue from acquisitions held less than a year is now expected to contribute total net revenue growth of approximately 0.4 percentage points in 2023, down from previous guidance of 0.5 percentage points.
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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