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Mar 31, 2023

ICE Q1 2023 Earnings Report

Reported strong results in the first quarter, driven by recurring revenues and solid performance across all segments.

Key Takeaways

Intercontinental Exchange reported strong first-quarter results with net revenues of $1.9 billion and GAAP diluted EPS of $1.17. The company's performance was driven by recurring revenues and solid results across its exchanges, fixed income and data services, and mortgage technology segments.

Net revenues for 1Q23 reached $1.9 billion.

GAAP diluted earnings per share (EPS) for 1Q23 was $1.17.

Adjusted diluted earnings per share for 1Q23 was $1.41.

The operating margin for 1Q23 was 51%, with an adjusted operating margin of 61%.

Total Revenue
$1.9B
Previous year: $1.9B
-0.2%
EPS
$1.41
Previous year: $1.43
-1.4%
Operating margin
51%
Previous year: 52%
-1.9%
Adjusted operating margin
61%
Previous year: 61%
+0.0%
Gross Profit
$1.37B
Previous year: $1.37B
+0.5%
Cash and Equivalents
$2.07B
Previous year: $638M
+224.3%
Free Cash Flow
$632M
Previous year: $720M
-12.2%
Total Assets
$152B
Previous year: $208B
-27.3%

ICE

ICE

Forward Guidance

ICE did not provide specific financial guidance in this report. However, they expressed confidence in their ability to benefit from near-term cyclical tailwinds and longer-term secular trends, focusing on investing in profitable growth.

Positive Outlook

  • Well positioned to benefit from near-term cyclical tailwinds
  • Focused on investing in profitable growth
  • Diverse platform is well positioned to continue to serve customers
  • Focused on creating value for stockholders
  • Longer-term secular trends

Challenges Ahead

  • Dynamic macroeconomic environment
  • Pending Black Knight acquisition costs
  • Ellie Mae integration costs
  • Amortization of acquisition-related intangibles
  • Non-operating expense includes interest income, interest expense and net other income/expense.