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Dec 31, 2023
Cboe Q4 2023 Earnings Report
Cboe reported record net revenue and strong earnings for Q4 2023, driven by growth in derivatives and data and access solutions.
Key Takeaways
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
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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