Latest News
Cboe Global Markets Reports Results for First Quarter 2024
First Quarter Highlights*
- Diluted EPS for the Quarter of $1.96, Up 20 percent
- Adjusted Diluted EPS¹ for the Quarter of $2.15, Up 13 percent
- Record Net Revenue for the Quarter of $502.1 million, Up 7 percent
- Anticipates Higher End of Organic Total Net Revenue Growth2 Range of 5 to 7 percent in 2024; Reaffirms Data and Access Solutions Organic Net Revenue Growth Target2 of 7 to 10 percent
- Decreases 2024 Adjusted Operating Expense Guidance2 to $795 to $805 million, from $798 to $808 million
CHICAGO, May 3, 2024 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the first quarter of 2024.
“During the first quarter, Cboe delivered record quarterly net revenue and strong adjusted earnings1, led by the strength of our Derivatives and Data and Access Solutions categories,” said Fredric Tomczyk, Cboe Global Markets Chief Executive Officer. “These results build on our strong 2023 trends, as overall net revenues grew 7% year-over-year and adjusted EPS1 increased by 13% as compared to the same period in 2023. Importantly, the adjusted EBITDA margin1 for the quarter increased by 1.4% year-over-year to 67.2% during the quarter, marking clear progress in our efforts to drive greater margin efficiencies across our businesses. Last week, we announced plans to refocus our digital asset business to leverage our core strengths in derivatives, technology and product innovation while realizing operating efficiencies for both Cboe and our clients. The second quarter is off to a strong start, and I look forward to building on that momentum going forward.”
“Following a record 2023, I am incredibly pleased to report record net revenues and strong adjusted earnings1 in the first quarter of 2024,” said Jill Griebenow, Cboe Global Markets Executive Vice President, Chief Financial Officer. “Derivative trends were robust during the first quarter of 2024 with net revenues growing 8%. Data and Access Solutions delivered equally strong growth with net revenue up 8%, while Cash and Spot Markets net revenues were stable on a year-over-year basis. Moving forward, we anticipate organic total net revenue growth2 to finish at the higher end of our 5-7% expected guidance range. We are reaffirming our Data and Access Solutions organic net revenue growth2 range of 7-10%, in line with our medium-term expectations. Additionally, we are lowering our full year adjusted operating expense guidance2 range to $795 to $805 million from $798 to $808 million. 2024 is off to a strong start, and we look forward to delivering durable returns for shareholders in the quarters ahead.”
|
*All comparisons are first quarter 2024 compared to the same period in 2023. |
|
(1)A full reconciliation of our non-GAAP results to our GAAP (“Generally Accepted Accounting Principles”) results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables.  |
|
(2)Specific quantifications of the amounts that would be required to reconcile the company’s organic net revenue growth guidance and adjusted operating expenses guidance are not available. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and expenses that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company’s organic net revenue growth guidance and adjusted operating expenses would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
Consolidated First Quarter Results -Table 1
Table 1 below presents summary selected unaudited condensed consolidated financial information for the company as reported and on an adjusted basis for the three months ended March 31, 2024 and 2023.
|
Table 1 |
|||||||||||||||||||||
|
Consolidated First Quarter Results |
1Q24 |
1Q23 |
|||||||||||||||||||
|
($ in millions except per share) |
1Q24 |
1Q23 |
Change |
Adjusted1 |
Adjusted1 |
Change |
|||||||||||||||
|
Total Revenues Less Cost of Revenues |
$ |
502.1 |
$ |
471.4 |
7 |
% |
$ |
502.1 |
$ |
471.4 |
7 |
% |
|||||||||
|
Total Operating Expenses |
$ |
219.7 |
$ |
223.5 |
(2) |
% |
$ |
192.9 |
$ |
186.2 |
4 |
% |
|||||||||
|
Operating Income |
$ |
282.4 |
$ |
247.9 |
14 |
% |
$ |
309.2 |
$ |
285.2 |
8 |
% |
|||||||||
|
Operating Margin % |
56.2 |
% |
52.6 |
% |
3.6 |
pp |
61.6 |
% |
60.5 |
% |
1.1 |
pp |
|||||||||
|
Net Income Allocated to Common Stockholders |
$ |
208.3 |
$ |
172.6 |
21 |
% |
$ |
227.7 |
$ |
201.8 |
13 |
% |
|||||||||
|
Diluted Earnings Per Share |
$ |
1.96 |
$ |
1.63 |
20 |
% |
$ |
2.15 |
$ |
1.90 |
13 |
% |
|||||||||
|
EBITDA1 |
$ |
337.1 |
$ |
303.9 |
11 |
% |
$ |
337.3 |
$ |
310.3 |
9 |
% |
|||||||||
|
EBITDA Margin %1 |
67.1 |
% |
64.5 |
% |
2.6 |
pp |
67.2 |
% |
65.8 |
% |
1.4 |
pp |
|||||||||
- Total revenues less cost of revenues (referred to as “net revenue”) of $502.1 million increased 7 percent, compared to $471.4 million in the prior-year period, a result of increases in derivatives markets and data and access solutions net revenue, as well as stable cash and spot markets net revenue.
- Total operating expenses were $219.7 million versus $223.5 million in the first quarter of 2023, a decrease of $3.8 million. Adjusted operating expenses1 of $192.9 million increased 4 percent compared to $186.2 million in the first quarter of 2023. This increase was primarily due to higher compensation and benefits and technology support services, partially offset by a decline in professional fees and outside services.
- The effective tax rate for the first quarter of 2024 was 28.3 percent as compared with 30.1 percent in the first quarter of 2023. The lower effective tax rate in 2024 is primarily due to excess tax benefits from the vesting of equity awards during the quarter. The effective tax rate on adjusted earnings1 was 28.1 percent, a decrease of 0.9 percent when compared with 29.0 percent in last year’s first quarter.
- Diluted EPS for the first quarter of 2024 increased 20 percent to $1.96 compared to the first quarter of 2023. Adjusted diluted EPS1 of $2.15 increased 13 percent compared to 2023 first quarter results.
Business Segment Information:
|
Table 2 |
||||||||||
|
Total Revenues Less Cost of Revenues by |
||||||||||
|
Business Segment |
||||||||||
|
(in millions) |
1Q24 |
1Q23 |
Change |
|||||||
|
Options |
$ |
307.4 |
$ |
280.7 |
10 |
% |
||||
|
North American Equities |
92.6 |
93.1 |
(1) |
% |
||||||
|
Europe and Asia Pacific |
54.1 |
49.3 |
10 |
% |
||||||
|
Futures |
30.5 |
31.1 |
(2) |
% |
||||||
|
Global FX |
18.4 |
18.5 |
(1) |
% |
||||||
|
Digital |
(0.9) |
(1.3) |
* |
% |
||||||
|
Total |
$ |
502.1 |
$ |
471.4 |
7 |
% |
||||
|
(1)A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
|
*Not meaningful |
Discussion of Results by Business Segment:
Options:
- Options net revenue of $307.4 million was up $26.7 million, or 10 percent, from the first quarter of 2023. Net transaction and clearing fees1 increased primarily as a result of a 14 percent increase in index options trading volumes versus the first quarter of 2023. Access and capacity fees were 7 percent higher than first quarter 2023.
- Net transaction and clearing fees1 increased $28.4 million, or 12 percent, reflecting a 1 percent increase in total options average daily volume (“ADV”) and a 12 percent increase in total options RPC compared to the first quarter 2023. The increase in total options RPC was due to a mix shift, with index options representing a higher percentage of total options volume.
- Cboe’s Options exchanges had total market share of 31.3 percent for the first quarter of 2024 compared to 31.8 percent in the first quarter of 2023, a result of lower multi-list market share as compared to the first quarter of 2023.
North American (N.A.) Equities:
- N.A. Equities net revenue of $92.6 million decreased $0.5 million, or 1 percent versus the first quarter of 2023, reflecting lower net transaction and clearing fees1 and industry market data.
- Net transaction and clearing fees1 decreased by $0.3 million, or 1 percent, compared to the first quarter of 2023. The decrease was driven by lower Canadian Equities market volumes and net capture as compared to the first quarter of 2023. The decrease was partially offset by a stronger U.S. off-exchange net capture rate, up 24 percent as compared to the first quarter of 2023 given client mix shift and less fee incentives given lower volumes.
- Cboe’s U.S. Equities exchanges had market share of 12.8 percent for the first quarter of 2024 compared to 12.7 percent in the first quarter of 2023. Cboe’s U.S. Equities off-exchange market share was 18.4 percent versus 20.4 percent in the first quarter of 2023. Canadian Equities market share rose to 15.3 percent as compared to 14.3 percent in the first quarter of 2023 due to continued client adoption and growth.
Europe and Asia Pacific (APAC):
- Europe and APAC net revenue of $54.1 million increased by 10 percent compared to the first quarter of 2023, reflecting double-digit non-transaction revenue growth across market data fees, access and capacity fees, and other revenue. On a constant currency basis1, net revenues were $53.4 million, up 8 percent on a year-over-year basis. European Equities average daily notional value (“ADNV”) traded on Cboe European Equities was €9.9 billion, down 13 percent compared to the first quarter of 2023 given a 9 percent decline in industry market volumes and lower market share.
- For the first quarter of 2024, Cboe European Equities had 23.7 percent market share, down from 24.9 percent in the first quarter of 2023. Market share was negatively impacted by elevated closing auction activity on listing venues. Cboe Australia had 20.4 percent market share for the first quarter of 2024, up from 18.5 percent in the first quarter of 2023. Cboe Japan grew market share to 5.0 percent in the first quarter of 2024 from 4.8 percent in the first quarter of 2023. Cboe European Equities net capture rate increased 16 percent given mix shift to higher capture products, and Cboe Australia net capture decreased 3 percent when compared to the first quarter of 2023.
Futures:
- Futures net revenue of $30.5 million decreased $0.6 million compared to the first quarter of 2023 due to a decline in net transaction and clearing fees1 , partially offset by higher access and capacity fees and market data fees.
- Net transaction and clearing fees1 decreased $1.3 million, reflecting a 5 percent decrease in ADV during the quarter.
Global FX:
- Global FX net revenue of $18.4 million decreased 1 percent, primarily due to lower net transaction and clearing fees1. ADNV traded on the Cboe FX platform was $45.3 billion for the quarter, up 1 percent compared to last year’s first quarter, and net capture rate per one million dollars traded was $2.62 for the quarter, down 1 percent compared to $2.64 in the first quarter of 2023.
- Cboe FX market share was 20.3 percent for the quarter compared to 19.0 percent in last year’s first quarter.
Digital:
- Announced the realignment of Cboe Digital asset business on April 25, 2024. Cboe plans to transition and fully integrate the digital asset derivatives and clearing businesses and wind down operations of the Cboe Digital Spot Market, pending regulatory review and certain corporate approvals.
- The wind down of the Cboe Digital Spot Market operations is expected to have an immaterial impact on Cboe’s net revenue in 2024. Expense savings are estimated to be in the range of $2 million to $4 million in 2024, with savings expected to be in the $11 million to $15 million range on annualized adjusted operating expenses2.
|
(1)A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
|
(2)Specific quantifications of the amounts that would be required to reconcile the company’s organic and inorganic growth guidance, adjusted operating expenses guidance, annualized adjusted operating expenses guidance, and the effective tax rate on adjusted earnings guidance are not available. Acquisitions are considered organic after 12 months of closing. The company believes that 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. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company’s organic growth, adjusted operating expenses, annualized adjusted operating expenses, and the effective tax rate on adjusted earnings would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
2024 Fiscal Year Financial Guidance
Cboe provided guidance for the 2024 fiscal year as noted below.
- Anticipates higher end of organic total net revenue growth1 range of 5 to 7 percentage points in 2024, at the higher end of Cboe’s medium-term organic total net revenue1 guidance expectations of 5 to 7 percentage points.
- Reaffirms organic net revenue1 from Data and Access Solutions is expected to increase by approximately 7 to 10 percentage points in 2024, in line with medium-term guidance expectations of 7 to 10 percentage points.
- Adjusted operating expenses1 in 2024 are now expected to be in the range of $795 to $805 million, down from previous guidance of $798 to $808 million. The guidance excludes the expected amortization of acquired intangible assets of $93 million; the company reflects the exclusion of this amount in its non-GAAP reconciliation.
- Reaffirms depreciation and amortization expense for 2024 is expected to be in the range of $43 to $47 million, excluding the expected amortization of acquired intangible assets.
- Reaffirms minority investments are expected to contribute a $37 to $43 million benefit in 2024 to non-operating income. Anticipates that $33 to $37 million of the benefit will come in the earnings in investments line and $4 to $6 million through the other income, net line.
- Reaffirms the effective tax rate on adjusted earnings1 for the full year 2024 is expected to be in the range of 28.5 to 30.5 percent. Significant changes in trading volume, expenses, tax laws or rates and other items could materially impact this expectation.
- Reaffirms capital expenditures for 2024 are expected to be in the range of $51 to $57 million.
|
(1)Specific quantifications of the amounts that would be required to reconcile the company’s organic and inorganic growth guidance, adjusted operating expenses guidance, annualized adjusted operating expenses guidance, and the effective tax rate on adjusted earnings guidance are not available. Acquisitions are considered organic after 12 months of closing. The company believes that 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. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company’s organic growth, adjusted operating expenses, annualized adjusted operating expenses, and the effective tax rate on adjusted earnings would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
Capital Management
At March 31, 2024, the company had cash and cash equivalents of $536.3 million, and adjusted cash2 of $536.8 million. Total debt as of March 31, 2024 was $1,439.6 million.
The company paid cash dividends of $58.5 million, or $0.55 per share, during the first quarter of 2024 and utilized $89.3 million to repurchase approximately 490 thousand shares of its common stock under its share repurchase program at an average price of $182.26 per share. As of March 31, 2024, the company had approximately $294.8 million of availability remaining under its existing share repurchase authorizations.
Earnings Conference Call
Executives of Cboe Global Markets will host a conference call to review its first-quarter financial results today, May 3, 2024, at 8:30 a.m. ET/7:30 a.m. CT. The conference call and any accompanying slides will be publicly available via live webcast from the Investor Relations section of the company’s website at www.cboe.com under Events & Presentations. Participants may also listen via telephone by dialing (800) 715-9871 (toll-free) or (646) 307-1963 (toll) and using the Conference ID 2619514. Telephone participants should place calls 10 minutes prior to the start of the call. The webcast will be archived on the company’s website for replay.
|
(2)A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe, and Asia Pacific. Above all, Cboe is committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel, increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; risks relating to digital assets, including winding down the Cboe Digital spot crypto market, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
The condensed consolidated statements of income and balance sheets are unaudited and subject to revision.
|
Cboe Media Contacts: |
Analyst Contact: |
|||
|
Angela Tu |
Tim Cave |
Kenneth Hill, CFA |
||
|
(646) 856–8734 |
+44 (0) 7593 506 719 |
(312) 786–7559 |
||
|
|
CBOE-F
Trademarks:
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, Bats®, BIDS Trading®, BZX®, BYX®, Chi-X®, Cboe Clear®, Cboe Digital®, EDGX®, EDGA®, MATCHNow®, and VIX® are registered trademarks of Cboe Global Markets, Inc. and its subsidiaries. All other trademarks and service marks are the property of their respective owners.
|
Cboe Global Markets, Inc. |
||||||||||||||||
|
Key Performance Statistics by Business Segment |
||||||||||||||||
|
1Q 2024 |
4Q 2023 |
3Q 2023 |
2Q 2023 |
1Q 2023 |
||||||||||||
|
Options |
||||||||||||||||
|
Total industry ADV (in thousands) |
47,452 |
44,410 |
43,411 |
42,964 |
46,057 |
|||||||||||
|
Total company Options ADV (in thousands) |
14,833 |
14,896 |
14,592 |
14,306 |
14,657 |
|||||||||||
|
Multi-listed options |
10,744 |
10,725 |
10,848 |
10,622 |
11,062 |
|||||||||||
|
Index options |
4,089 |
4,172 |
3,743 |
3,683 |
3,595 |
|||||||||||
|
Total Options market share |
31.3 |
% |
33.5 |
% |
33.6 |
% |
33.3 |
% |
31.8 |
% |
||||||
|
Multi-listed options |
24.8 |
% |
26.7 |
% |
27.4 |
% |
27.1 |
% |
26.1 |
% |
||||||
|
Total Options RPC: |
$ |
0.299 |
$ |
0.297 |
$ |
0.270 |
$ |
0.271 |
$ |
0.267 |
||||||
|
Multi-listed options |
$ |
0.064 |
$ |
0.060 |
$ |
0.055 |
$ |
0.061 |
$ |
0.064 |
||||||
|
Index options |
$ |
0.915 |
$ |
0.908 |
$ |
0.894 |
$ |
0.877 |
$ |
0.889 |
||||||
|
North American Equities |
||||||||||||||||
|
U.S. Equities – Exchange: |
||||||||||||||||
|
Total industry ADV (shares in billions) |
11.8 |
11.2 |
10.4 |
10.7 |
11.8 |
|||||||||||
|
Market share % |
12.8 |
% |
13.0 |
% |
12.7 |
% |
12.7 |
% |
12.7 |
% |
||||||
|
Net capture (per 100 touched shares) |
$ |
0.019 |
$ |
0.013 |
$ |
0.022 |
$ |
0.021 |
$ |
0.019 |
||||||
|
U.S. Equities – Off-Exchange: |
||||||||||||||||
|
ADV (touched shares, in millions) |
77.1 |
72.7 |
71.4 |
78.7 |
89.4 |
|||||||||||
|
Off-Exchange ATS Block Market Share % (reported on a one-month lag) |
18.4 |
% |
18.4 |
% |
19.9 |
% |
19.9 |
% |
20.4 |
% |
||||||
|
Net capture (per 100 touched shares) |
$ |
0.141 |
$ |
0.143 |
$ |
0.129 |
$ |
0.122 |
$ |
0.113 |
||||||
|
Canadian Equities: |
||||||||||||||||
|
ADV (matched shares, in millions) |
146.3 |
141.8 |
127.5 |
124.2 |
150.8 |
|||||||||||
|
Total market share % |
15.3 |
% |
15.3 |
% |
15.2 |
% |
14.5 |
% |
14.3 |
% |
||||||
|
Net capture (per 10,000 shares, in Canadian Dollars) |
$ |
3.997 |
$ |
3.905 |
$ |
3.976 |
$ |
4.055 |
$ |
4.039 |
||||||
|
Europe and Asia Pacific |
||||||||||||||||
|
European Equities: |
||||||||||||||||
|
Total industry ADNV (Euros – in billions) |
€ |
41.8 |
€ |
37.7 |
€ |
34.3 |
€ |
38.7 |
€ |
45.8 |
||||||
|
Market share % |
23.7 |
% |
23.9 |
% |
23.2 |
% |
23.8 |
% |
24.9 |
% |
||||||
|
Net capture (per matched notional value (bps), in Euros) |
€ |
0.249 |
€ |
0.233 |
€ |
0.232 |
€ |
0.230 |
€ |
0.215 |
||||||
|
Cboe Clear Europe: |
||||||||||||||||
|
Trades cleared (in thousands) |
294,325.7 |
281,938.1 |
255,152.3 |
275,519.8 |
359,418.1 |
|||||||||||
|
Fee per trade cleared (in Euros) |
€ |
0.008 |
€ |
0.010 |
€ |
0.010 |
€ |
0.009 |
€ |
0.008 |
||||||
|
Net settlement volume (shares in thousands) |
2,524.6 |
2,511.6 |
2,469.5 |
2,402.0 |
2,661.9 |
|||||||||||
|
Net fee per settlement (in Euros) |
€ |
1.072 |
€ |
0.899 |
€ |
0.927 |
€ |
0.887 |
€ |
0.953 |
||||||
|
Australian Equities: |
||||||||||||||||
|
ADNV (AUD – in billions) |
$ |
0.8 |
$ |
0.7 |
$ |
0.7 |
$ |
0.7 |
$ |
0.8 |
||||||
|
Market share – Continuous |
20.4 |
% |
20.3 |
% |
17.9 |
% |
18.2 |
% |
18.5 |
% |
||||||
|
Net capture (per matched notional value (bps), in Australian Dollars) |
$ |
0.156 |
$ |
0.157 |
$ |
0.155 |
$ |
0.160 |
$ |
0.160 |
||||||
|
Japanese Equities: |
||||||||||||||||
|
ADNV (JPY – in billions) |
¥ |
315.9 |
¥ |
190.2 |
¥ |
148.7 |
¥ |
184.3 |
¥ |
183.3 |
||||||
|
Market share – Lit Continuous |
5.0 |
% |
4.0 |
% |
3.3 |
% |
4.1 |
% |
4.8 |
% |
||||||
|
Net capture (per matched notional value (bps), in Yen) |
¥ |
0.227 |
¥ |
0.252 |
¥ |
0.257 |
¥ |
0.256 |
¥ |
0.243 |
||||||
|
Futures |
||||||||||||||||
|
ADV (in thousands) |
220.0 |
233.4 |
230.0 |
197.4 |
231.8 |
|||||||||||
|
RPC |
$ |
1.749 |
$ |
1.729 |
$ |
1.753 |
$ |
1.826 |
$ |
1.725 |
||||||
|
Global FX |
||||||||||||||||
|
Spot market share % |
20.3 |
% |
21.3 |
% |
20.2 |
% |
19.5 |
% |
19.0 |
% |
||||||
|
ADNV ($ – in billions) |
$ |
45.3 |
$ |
47.0 |
$ |
44.4 |
$ |
42.5 |
$ |
45.0 |
||||||
|
Net capture (per one million dollars traded) |
$ |
2.62 |
$ |
2.60 |
$ |
2.64 |
$ |
2.66 |
$ |
2.64 |
||||||
ADV = average daily volume; ADNV = average daily notional value.
RPC, average revenue per contract, for options and futures represents total net transaction fees recognized for the period divided by total contracts traded during the period.
Touched volume represents the total number of shares of equity securities and ETFs internally matched on our exchanges or routed to and executed on an external market center.
Matched volume represents the total number of shares of equity securities and ETFs executed on our exchanges.
U.S. Equities – Exchange, “net capture per 100 touched shares” refers to transaction fees less liquidity payments and routing and clearing costs divided by the product of one-hundredth ADV of touched shares on BZX, BYX, EDGX and EDGA and the number of trading days. U.S. Equities – Off-Exchange data reflects BIDS Trading. For U.S. Equities – Off-Exchange, “net capture per 100 touched shares” refers to transaction fees less order and execution management system (OMS/EMS) fees and clearing costs divided by the product of one-hundredth ADV of touched shares on BIDS Trading and the number of trading days for the period.
Canadian Equities, “net capture per 10,000 shares” refers to transaction fees divided by the product of one-ten thousandth ADV of shares for MATCHNow and Cboe Canada and the number of trading days. Total market share represents MATCHNow and Cboe Canada volume divided by the total volume of the Canadian Equities market. As of January 1, 2024, the Cboe Canada and MATCHNow entities have been amalgamated into Cboe Canada Inc.
European Equities, “net capture per matched notional value” refers to transaction fees less liquidity payments in Euros divided by the product of ADNV in Euros of shares matched on Cboe Europe Equities and the number of trading days. “Trades cleared” refers to the total number of non-interoperable trades cleared, “Fee per trade cleared” refers to clearing fees divided by number of non-interoperable trades cleared, “Net settlement volume” refers to the total number of settlements executed after netting, and “Net fee per settlement” refers to settlement fees less direct costs incurred to settle divided by the number of settlements executed after netting.
Asia Pacific data reflects the acquisition of Cboe Asia Pacific. Australian Equities “Net capture per matched notional value” refers to transaction fees less liquidity payments in Australian dollars divided by the product of ADNV in Australian dollars of shares matched on Cboe Australia and the number of Australian Equities trading days. Japanese Equities “Net capture per matched notional value” refers to transaction fees less liquidity payments in Japanese Yen divided by the product of ADNV in Japanese Yen of shares matched on Cboe Japan and the number of Japanese Equities trading days.
Global FX, “net capture per one million dollars traded” refers to transaction fees less liquidity payments, if any, divided by the Spot and SEF products of one-thousandth of ADNV traded on the Cboe FX Markets and the number of trading days, divided by two, which represents the buyer and seller that are both charged on the transaction. Market Share represents Cboe FX volume divided by the total volume of publicly reporting spot FX venues (Cboe FX, EBS, Refinitiv, and Euronext FX).
Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
|
Cboe Global Markets, Inc. and Subsidiaries |
||||||
|
Condensed Consolidated Statements of Income (Unaudited) |
||||||
|
Three Months Ended March 31, 2024 and 2023 |
||||||
|
Three Months Ended March 31, |
||||||
|
(in millions, except per share amounts) |
2024 |
2023 |
||||
|
Revenues: |
||||||
|
Cash and spot markets |
$ |
380.9 |
$ |
407.0 |
||
|
Data and access solutions |
140.2 |
129.4 |
||||
|
Derivatives markets |
436.1 |
451.8 |
||||
|
Total Revenues |
957.2 |
988.2 |
||||
|
Cost of Revenues: |
||||||
|
Liquidity payments |
338.8 |
371.8 |
||||
|
Routing and clearing |
16.0 |
24.0 |
||||
|
Section 31 fees |
42.1 |
74.9 |
||||
|
Royalty fees and other cost of revenues |
58.2 |
46.1 |
||||
|
Total Cost of Revenues |
455.1 |
516.8 |
||||
|
Revenues Less Cost of Revenues |
502.1 |
471.4 |
||||
|
Operating Expenses: |
||||||
|
Compensation and benefits |
115.3 |
110.4 |
||||
|
Depreciation and amortization |
37.3 |
41.4 |
||||
|
Technology support services |
24.2 |
22.2 |
||||
|
Professional fees and outside services |
21.5 |
23.9 |
||||
|
Travel and promotional expenses |
7.5 |
6.2 |
||||
|
Facilities costs |
6.5 |
7.6 |
||||
|
Acquisition-related costs |
0.6 |
6.4 |
||||
|
Other expenses |
6.8 |
5.4 |
||||
|
Total Operating Expenses |
219.7 |
223.5 |
||||
|
Operating Income |
282.4 |
247.9 |
||||
|
Non-operating Income (Expenses): |
||||||
|
Interest expense |
(13.0) |
(17.1) |
||||
|
Interest income |
4.1 |
2.0 |
||||
|
Earnings in investments |
14.0 |
15.3 |
||||
|
Other income, net |
4.6 |
0.1 |
||||
|
Total Non-operating Expenses |
9.7 |
0.3 |
||||
|
Income Before Income Tax Provision |
292.1 |
248.2 |
||||
|
Income tax provision |
82.6 |
74.8 |
||||
|
Net Income |
209.5 |
173.4 |
||||
|
Net income allocated to participating securities |
(1.2) |
(0.8) |
||||
|
Net Income Allocated to Common Stockholders |
$ |
208.3 |
$ |
172.6 |
||
|
Net Income Per Share Allocated to Common Stockholders: |
||||||
|
Basic earnings per share |
$ |
1.97 |
$ |
1.63 |
||
|
Diluted earnings per share |
1.96 |
1.63 |
||||
|
Weighted average shares used in computing income per share: |
||||||
|
Basic |
105.6 |
105.9 |
||||
|
Diluted |
106.1 |
106.2 |
||||
|
Cboe Global Markets, Inc. and Subsidiaries |
||||||
|
Condensed Consolidated Balance Sheets (Unaudited) |
||||||
|
March 31, 2024 and December 31, 2023 |
||||||
|
March 31, |
December 31, |
|||||
|
(in millions) |
2024 |
2023 |
||||
|
Assets |
||||||
|
Current Assets: |
||||||
|
Cash and cash equivalents |
$ |
536.3 |
$ |
543.2 |
||
|
Financial investments |
58.8 |
57.5 |
||||
|
Accounts receivable, net |
370.2 |
337.3 |
||||
|
Margin deposits, clearing funds, and interoperability funds |
1,544.6 |
848.8 |
||||
|
Digital assets – safeguarded assets |
93.3 |
51.3 |
||||
|
Income taxes receivable |
6.8 |
74.5 |
||||
|
Other current assets |
65.1 |
66.7 |
||||
|
Total Current Assets |
2,675.1 |
1,979.3 |
||||
|
Investments |
361.8 |
345.3 |
||||
|
Property and equipment, net |
106.0 |
109.2 |
||||
|
Property held for sale |
8.7 |
8.7 |
||||
|
Operating lease right of use assets |
130.6 |
136.6 |
||||
|
Goodwill |
3,133.8 |
3,140.6 |
||||
|
Intangible assets, net |
1,526.7 |
1,561.5 |
||||
|
Other assets, net |
209.4 |
206.3 |
||||
|
Total Assets |
$ |
8,152.1 |
$ |
7,487.5 |
||
|
Liabilities and Stockholders’ Equity |
||||||
|
Current Liabilities: |
||||||
|
Accounts payable and accrued liabilities |
$ |
304.7 |
$ |
412.7 |
||
|
Section 31 fees payable |
42.7 |
51.9 |
||||
|
Deferred revenue |
12.9 |
5.9 |
||||
|
Margin deposits, clearing funds, and interoperability funds |
1,544.6 |
848.8 |
||||
|
Income taxes payable |
— |
1.0 |
||||
|
Digital assets – safeguarded liabilities |
93.3 |
51.3 |
||||
|
Current portion of contingent consideration liabilities |
8.8 |
11.8 |
||||
|
Total Current Liabilities |
2,007.0 |
1,383.4 |
||||
|
Long-term debt |
1,439.6 |
1,439.2 |
||||
|
Non-current unrecognized tax benefits |
257.4 |
243.8 |
||||
|
Deferred income taxes |
214.2 |
217.8 |
||||
|
Non-current operating lease liabilities |
144.3 |
150.8 |
||||
|
Other non-current liabilities |
65.5 |
67.5 |
||||
|
Total Liabilities |
4,128.0 |
3,502.5 |
||||
|
Stockholders’ Equity: |
||||||
|
Preferred stock |
— |
— |
||||
|
Common stock |
1.1 |
1.1 |
||||
|
Treasury stock at cost |
(125.3) |
(10.5) |
||||
|
Additional paid-in capital |
1,495.3 |
1,478.6 |
||||
|
Retained earnings |
2,676.2 |
2,525.2 |
||||
|
Accumulated other comprehensive loss, net |
(23.2) |
(9.4) |
||||
|
Total Stockholders’ Equity |
4,024.1 |
3,985.0 |
||||
|
Total Liabilities and Stockholders’ Equity |
$ |
8,152.1 |
$ |
7,487.5 |
||
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, Cboe Global Markets has disclosed certain non-GAAP measures of operating performance. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. The non-GAAP measures provided in this press release include net transaction and clearing fees, adjusted operating expenses, adjusted operating income, organic net revenue, inorganic net revenue, and adjusted operating margin, adjusted net income allocated to common stockholders and adjusted diluted earnings per share, effective tax rate on adjusted earnings, adjusted cash, net revenues in constant currency, EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin.
Management believes that the non-GAAP financial measures presented in this press release provide additional and comparative information to assess trends in our core operations and a means to evaluate period-to-period comparisons. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results.
Organic net revenue, inorganic net revenue, organic non-transaction revenue and organic net revenue guidance: These are non-GAAP financial measures that exclude or have otherwise been adjusted for the impact of our acquisitions for the period or guidance, as applicable. Management believes the organic net revenue growth and guidance measures provide users with supplemental information regarding the company’s ongoing and future potential revenue performances and trends by presenting revenue growth and guidance excluding the impact of the acquisitions. Revenues from acquisitions that have been owned for at least one year are considered organic and are no longer excluded from organic net revenue from either period for comparative purposes.
Amortization expense of acquired intangible assets: We amortize intangible assets acquired in connection with various acquisitions. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. As such, if intangible asset amortization is included in performance measures, it is more difficult to assess the day-to-day operating performance of the businesses, the relative operating performance of the businesses between periods and the earnings power of the company. Therefore, we believe performance measures excluding intangible asset amortization expense provide investors with an additional basis for comparison across accounting periods.
Acquisition-related expenses: From time to time, we have pursued acquisitions, which have resulted in expenses which would not otherwise have been incurred in the normal course of the company’s business operations. These expenses include integration costs, as well as legal, due diligence, impairment charges, and other third-party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing and complexity of the transaction. Accordingly, we exclude these costs for purposes of calculating non-GAAP measures which provide an additional analysis of Cboe’s ongoing operating performance or comparisons in Cboe’s performance between periods.
The tables below show the reconciliation of each financial measure from GAAP to non-GAAP. The non-GAAP financial measures exclude the impact of those items detailed below and are referred to as adjusted financial measures.
|
Reconciliation of GAAP and Non-GAAP Information |
|||||||
|
Three Months Ended |
|||||||
|
Table 3 |
March 31, |
||||||
|
(in millions, except per share amounts) |
2024 |
2023 |
|||||
|
Reconciliation of Net Income Allocated to Common Stockholders to Non-GAAP (As shown on Table 1) |
|||||||
|
Net income allocated to common stockholders |
$ |
208.3 |
$ |
172.6 |
|||
|
Non-GAAP adjustments |
|||||||
|
Acquisition-related expenses (1) |
0.6 |
6.4 |
|||||
|
Amortization of acquired intangible assets (2) |
26.2 |
30.9 |
|||||
|
Gain on revaluation of Cboe Digital non-recourse notes and warrants (3) |
(0.4) |
— |
|||||
|
Total Non-GAAP adjustments |
26.4 |
37.3 |
|||||
|
Income tax expense related to the items above |
(6.9) |
(9.5) |
|||||
|
Tax reserves (4) |
— |
1.5 |
|||||
|
Net income allocated to participating securities – effect on reconciling items |
(0.1) |
(0.1) |
|||||
|
Adjusted earnings |
$ |
227.7 |
$ |
201.8 |
|||
|
Reconciliation of Diluted EPS to Non-GAAP |
|||||||
|
Diluted earnings per common share |
$ |
1.96 |
$ |
1.63 |
|||
|
Per share impact of non-GAAP adjustments noted above |
0.19 |
0.27 |
|||||
|
Adjusted diluted earnings per common share |
$ |
2.15 |
$ |
1.90 |
|||
|
Reconciliation of Operating Margin to Non-GAAP |
|||||||
|
Adjusted revenue less cost of revenue |
$ |
502.1 |
$ |
471.4 |
|||
|
Operating expenses (5) |
$ |
219.7 |
$ |
223.5 |
|||
|
Non-GAAP adjustments noted above |
26.8 |
37.3 |
|||||
|
Adjusted operating expenses |
$ |
192.9 |
$ |
186.2 |
|||
|
Operating income |
$ |
282.4 |
$ |
247.9 |
|||
|
Non-GAAP adjustments noted above |
26.8 |
37.3 |
|||||
|
Adjusted operating income |
$ |
309.2 |
$ |
285.2 |
|||
|
Adjusted operating margin (6) |
61.6 |
% |
60.5 |
% |
|||
|
Reconciliation of Income Tax Rate to Non-GAAP |
|||||||
|
Income before income taxes |
292.1 |
248.2 |
|||||
|
Non-GAAP adjustments noted above |
26.4 |
37.3 |
|||||
|
Adjusted income before income taxes |
$ |
318.5 |
$ |
285.5 |
|||
|
Income tax expense |
82.6 |
74.8 |
|||||
|
Non-GAAP adjustments noted above |
6.9 |
8.0 |
|||||
|
Adjusted income tax expense |
$ |
89.5 |
$ |
82.8 |
|||
|
Adjusted income tax rate |
28.1 |
% |
29.0 |
% |
|||
|
(1) This amount includes ongoing acquisition related costs primarily from the Company’s Cboe Digital, Cboe Canada, Cboe Japan and Cboe Australia acquisitions. |
|
(2) This amount represents the amortization of acquired intangible assets related to the Company’s acquisitions. |
|
(3) This amount represents the gain due to the revaluation of the Cboe Digital non-recourse notes and warrants, which is included in other income, net on the condensed consolidated statements of income. |
|
(4) This amount represents the tax reserves related to Section 199 matters. |
|
(5) The Company sponsors deferred compensation plans held in a trust. The expenses or income related to the deferred compensation plans are included in “Compensation and benefits” ($1.5 million and $3.2 million in expense for the three months ended March 31, 2024 and 2023, respectively, and are directly offset by deferred compensation income, expenses and dividends included within “Other income, net” ($1.5 million and $3.2 million in income, expense and dividends in the three months ended March 31, 2024 and 2023, respectively, on the condensed consolidated statements of income. The deferred compensation plans’ expenses are not excluded from “adjusted operating expenses” and do not have an impact on “Income before income taxes.” |
|
(6) Adjusted operating margin represents adjusted operating income divided by adjusted revenue less cost of revenue. |
EBITDA Reconciliations
EBITDA (earnings before interest, income taxes, depreciation and amortization) and Adjusted EBITDA are widely used non-GAAP financial measures of operating performance. EBITDA margin represents EBITDA divided by revenues less cost of revenues (net revenue). It is presented as supplemental information that the company believes is useful to investors to evaluate its results because it excludes certain items that are not directly related to the company’s core operating performance. EBITDA is calculated by adding back to net income interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is calculated by adding back to EBITDA acquisition-related expenses and gain on revaluation of Cboe Digital non-recourse notes and warrants. EBITDA and Adjusted EBITDA should not be considered as substitutes either for net income, as an indicator of the company’s operating performance, or for cash flow, as a measure of the company’s liquidity. In addition, because EBITDA and Adjusted EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA margin represents Adjusted EBITDA divided by net revenue.
|
Table 4 |
Three Months Ended |
||||||
|
(in millions, except percentages) |
March 31, |
||||||
|
Reconciliation of Net Income Allocated to Common Stockholders to EBITDA and Adjusted EBITDA (Per Table 1) |
2024 |
2023 |
|||||
|
Net income allocated to common stockholders |
$ |
208.3 |
$ |
172.6 |
|||
|
Interest expense, net |
8.9 |
15.1 |
|||||
|
Income tax provision |
82.6 |
74.8 |
|||||
|
Depreciation and amortization |
37.3 |
41.4 |
|||||
|
EBITDA |
$ |
337.1 |
$ |
303.9 |
|||
|
EBITDA Margin |
67.1 |
% |
64.5 |
% |
|||
|
Non-GAAP adjustments not included in above line items |
|||||||
|
Acquisition-related expenses |
0.6 |
6.4 |
|||||
|
Gain on revaluation of Cboe Digital non-recourse notes and warrants |
(0.4) |
— |
|||||
|
Adjusted EBITDA |
$ |
337.3 |
$ |
310.3 |
|||
|
Adjusted EBITDA Margin |
67.2 |
% |
65.8 |
% |
|||
|
Table 5 |
|||||||
|
(in millions) |
March 31, |
December 31, |
|||||
|
Reconciliation of Cash and Cash Equivalents to Adjusted Cash |
2024 |
2023 |
|||||
|
Cash and cash equivalents |
$ |
536.3 |
$ |
543.2 |
|||
|
Financial investments |
58.8 |
57.5 |
|||||
|
Less deferred compensation plan assets |
(35.2) |
(36.7) |
|||||
|
Less cash collected for Section 31 Fees |
(23.1) |
(30.5) |
|||||
|
Adjusted Cash |
$ |
536.8 |
$ |
533.5 |
|||
|
Table 6 |
|||||||||||||||||||||||||||||||||||||||||
|
(in millions) |
|||||||||||||||||||||||||||||||||||||||||
|
Reconciliation of Net Transaction and Clearing Fees by Business Segment –Three Months Ended March 31, 2024 and 2023 |
|||||||||||||||||||||||||||||||||||||||||
|
Consolidated |
Options |
N.A. Equities |
Europe and APAC |
Futures |
Global FX |
Digital |
|||||||||||||||||||||||||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
|||||||||||||||||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
||||||||||||||||||||||||||||
|
Transaction and clearing fees |
$ |
718.5 |
$ |
732.5 |
$ |
389.8 |
$ |
395.8 |
$ |
251.7 |
$ |
255.0 |
$ |
38.8 |
$ |
42.1 |
$ |
23.5 |
$ |
24.8 |
$ |
15.5 |
$ |
15.8 |
$ |
(0.8) |
$ |
(1.0) |
|||||||||||||
|
Liquidity payments |
(338.8) |
(371.8) |
(115.3) |
(144.2) |
(215.2) |
(215.9) |
(8.1) |
(11.3) |
— |
— |
— |
— |
(0.2) |
(0.4) |
|||||||||||||||||||||||||||
|
Routing and clearing |
(16.0) |
(24.0) |
(4.2) |
(9.7) |
(7.1) |
(9.4) |
(4.4) |
(4.6) |
— |
— |
(0.3) |
(0.3) |
— |
— |
|||||||||||||||||||||||||||
|
Net transaction and clearing fees |
$ |
363.7 |
$ |
336.7 |
$ |
270.3 |
$ |
241.9 |
$ |
29.4 |
$ |
29.7 |
$ |
26.3 |
$ |
26.2 |
$ |
23.5 |
$ |
24.8 |
$ |
15.2 |
$ |
15.5 |
$ |
(1.0) |
$ |
(1.4) |
|||||||||||||
|
Table 7 |
|||||||||||||||||||||||
|
(in millions) |
|||||||||||||||||||||||
|
Reconciliation of Net Revenue by Revenue Caption –Three Months Ended March 31, 2024 and 2023 |
|||||||||||||||||||||||
|
Cash and Spot Markets |
Data and Access Solutions |
Derivatives Markets |
Total |
||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
Three Months Ended |
Three Months Ended |
||||||||||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, |
||||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
||||||||||||||||
|
Transaction and clearing fees |
$ |
305.2 |
$ |
311.9 |
$ |
— |
$ |
— |
$ |
413.3 |
$ |
420.6 |
$ |
718.5 |
$ |
732.5 |
|||||||
|
Access and capacity fees |
— |
— |
90.1 |
84.2 |
— |
— |
90.1 |
84.2 |
|||||||||||||||
|
Market data fees |
16.0 |
17.9 |
49.3 |
44.5 |
6.7 |
8.5 |
72.0 |
70.9 |
|||||||||||||||
|
Regulatory fees |
34.9 |
62.6 |
— |
— |
15.3 |
21.9 |
50.2 |
84.5 |
|||||||||||||||
|
Other revenue |
24.8 |
14.6 |
0.8 |
0.7 |
0.8 |
0.8 |
26.4 |
16.1 |
|||||||||||||||
|
Total revenues |
$ |
380.9 |
$ |
407.0 |
$ |
140.2 |
$ |
129.4 |
$ |
436.1 |
$ |
451.8 |
$ |
957.2 |
$ |
988.2 |
|||||||
|
Liquidity payments |
$ |
222.9 |
$ |
227.0 |
$ |
— |
$ |
— |
$ |
115.9 |
$ |
144.8 |
$ |
338.8 |
$ |
371.8 |
|||||||
|
Routing and clearing fees |
11.8 |
14.3 |
— |
— |
4.2 |
9.7 |
16.0 |
24.0 |
|||||||||||||||
|
Section 31 fees |
34.7 |
61.4 |
— |
— |
7.4 |
13.5 |
42.1 |
74.9 |
|||||||||||||||
|
Royalty fees and other cost of revenues |
14.2 |
7.1 |
2.5 |
2.2 |
41.5 |
36.8 |
58.2 |
46.1 |
|||||||||||||||
|
Total cost of revenues |
$ |
283.6 |
$ |
309.8 |
$ |
2.5 |
$ |
2.2 |
$ |
169.0 |
$ |
204.8 |
$ |
455.1 |
$ |
516.8 |
|||||||
|
Revenues less cost of revenues (net revenue) |
$ |
97.3 |
$ |
97.2 |
$ |
137.7 |
$ |
127.2 |
$ |
267.1 |
$ |
247.0 |
$ |
502.1 |
$ |
471.4 |
|||||||
|
Table 8 |
||||||
|
(in millions) |
||||||
|
Reconciliation of GAAP Net Revenues to Net Revenues in Constant Currency – Three Months Ended March 31, 2024 and 2023 |
||||||
|
Three Months Ended, |
Three Months Ended, |
|||||
|
March 31, |
March 31, |
|||||
|
2024 |
2023 |
|||||
|
Europe and Asia Pacific net revenues |
$ |
54.1 |
$ |
49.3 |
||
|
Constant currency adjustment |
(0.7) |
3.5 |
||||
|
Europe and Asia Pacific net revenues in constant currency1 |
$ |
53.4 |
$ |
52.8 |
||
|
(1) Net revenues in constant currency is calculated by converting the current period GAAP net revenues in local currency using the foreign currency exchange rates that were in effect during the previous comparable period. |
Logo – https://mma.prnewswire.com/media/622233/Cboe_GM_New_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/cboe-global-markets-reports-results-for-first-quarter-2024-302135353.html
Regulators have issued a joint warning highlighting the risks associated with partnerships between banks and fintech companies. This warning underscores the need for careful management of these relationships to ensure regulatory compliance and mitigate potential risks.
Overview of the Joint Warning
The joint warning, issued by a coalition of financial regulators, emphasizes the importance of robust risk management practices when banks partner with fintech companies. These partnerships, while beneficial in driving innovation and enhancing customer services, also introduce new risks that must be addressed.
Key Points of the Warning:
- Regulatory Compliance: Banks must ensure that fintech partners comply with all relevant regulations and standards.
- Risk Management: Robust risk management frameworks must be in place to identify, assess, and mitigate risks associated with fintech partnerships.
- Data Security: Ensuring the security and privacy of customer data is paramount, particularly given the increasing prevalence of cyber threats.
- Operational Resilience: Banks must ensure that fintech partnerships do not compromise their operational resilience and ability to deliver critical services.
Benefits of Bank-Fintech Partnerships
Despite the risks, partnerships between banks and fintech companies offer significant benefits, driving innovation and enhancing the customer experience.
Key Benefits:
- Innovation: Fintech companies bring innovative technologies and solutions that can enhance banking services and products.
- Customer Experience: Partnerships with fintechs can improve the customer experience by offering faster, more efficient, and personalized services.
- Cost Efficiency: Fintech solutions can help banks reduce costs and improve operational efficiency through automation and digitalization.
Risks Associated with Bank-Fintech Partnerships
The joint warning highlights several risks associated with bank-fintech partnerships that must be carefully managed.
Key Risks:
- Regulatory Risk: Ensuring compliance with complex and evolving regulatory requirements is a significant challenge.
- Cybersecurity Risk: Fintech partnerships can introduce cybersecurity vulnerabilities, making it essential to implement robust security measures.
- Operational Risk: The integration of fintech solutions into banking operations can pose operational risks, particularly if not managed effectively.
- Reputational Risk: Any issues or failures in fintech partnerships can damage the bank’s reputation and customer trust.
Strategies for Managing Risks
To mitigate the risks associated with fintech partnerships, banks must adopt comprehensive risk management strategies and ensure rigorous oversight.
Key Strategies:
- Due Diligence: Conducting thorough due diligence on fintech partners to assess their regulatory compliance, security practices, and financial stability.
- Contractual Safeguards: Including robust contractual safeguards in partnership agreements to outline responsibilities, expectations, and compliance requirements.
- Continuous Monitoring: Implementing continuous monitoring and assessment of fintech partnerships to identify and address emerging risks.
- Collaboration with Regulators:: Engaging with regulators to ensure that partnerships comply with regulatory requirements and to stay informed of any changes in the regulatory landscape.
The Role of Technology
Technology plays a crucial role in managing the risks associated with bank-fintech partnerships, offering tools and solutions that enhance oversight and compliance.
Key Technologies:
- RegTech Solutions: Regulatory technology (RegTech) solutions can automate compliance processes, ensuring that fintech partnerships adhere to regulatory requirements.
- Cybersecurity Tools: Advanced cybersecurity tools and solutions can enhance the security of fintech partnerships, protecting against cyber threats.
- Risk Management Platforms: Integrated risk management platforms can provide real-time visibility into partnership risks and support proactive risk mitigation.
Conclusion
The joint warning issued by regulators highlights the need for careful management of bank-fintech partnerships to ensure regulatory compliance and mitigate potential risks. While these partnerships offer significant benefits, including innovation and enhanced customer experience, they also introduce new risks that must be addressed through robust risk management strategies. By leveraging technology and engaging with regulators, banks can effectively manage these risks and capitalize on the opportunities presented by fintech partnerships.
Source of the news: American Banker
The post Regulators Issue Joint Warning on Bank-Fintech Risks appeared first on HIPTHER Alerts.
Nasdaq Inc. has reported earnings that exceeded analysts’ expectations, driven by a surge in fintech sales. This strong performance underscores the growing importance of fintech solutions in driving financial market innovation and growth.
Overview of Nasdaq’s Financial Performance
Nasdaq’s latest earnings report reveals impressive financial performance, with profits surpassing estimates due to robust growth in its fintech segment.
Key Financial Highlights:
- Revenue Growth: Nasdaq reported a significant increase in revenue, primarily driven by its fintech sales.
- Earnings Beat: The company’s earnings per share (EPS) exceeded analysts’ expectations, highlighting its strong financial performance.
- Fintech Segment: The fintech segment emerged as a key growth driver, contributing significantly to the overall revenue increase.
The Role of Fintech in Nasdaq’s Growth
Nasdaq’s fintech solutions have played a pivotal role in its recent financial success, offering innovative technologies that enhance market operations and customer services.
Key Fintech Solutions:
- Market Technology: Nasdaq’s market technology solutions provide advanced trading, clearing, and market surveillance capabilities to financial institutions and exchanges.
- Data and Analytics: The company’s data and analytics solutions offer valuable insights and support informed decision-making for market participants.
- Corporate Solutions: Nasdaq’s corporate solutions include governance, risk management, and compliance tools that help companies navigate complex regulatory environments.
Factors Driving Fintech Sales Growth
Several factors have contributed to the surge in Nasdaq’s fintech sales, reflecting broader trends in the financial technology sector.
Key Drivers:
- Digital Transformation: The ongoing digital transformation in the financial industry has increased demand for advanced fintech solutions.
- Regulatory Compliance: Growing regulatory requirements have driven demand for compliance and risk management solutions.
- Market Volatility: Increased market volatility has highlighted the need for robust trading and market surveillance technologies.
Strategic Initiatives
Nasdaq has undertaken several strategic initiatives to capitalize on the growing demand for fintech solutions and drive long-term growth.
Strategic Focus Areas:
- Innovation: Continuously investing in innovation to develop cutting-edge fintech solutions that address the evolving needs of the financial industry.
- Partnerships: Forming strategic partnerships with other technology providers and financial institutions to enhance its product offerings and expand market reach.
- Global Expansion: Expanding its presence in key markets around the world to capture new growth opportunities and serve a broader client base.
Future Prospects
Nasdaq’s strong financial performance and strategic initiatives position the company for continued growth in the fintech sector. The company plans to leverage its technological capabilities and market expertise to drive further innovation and expand its fintech offerings.
Growth Opportunities:
- Product Development: Developing new fintech products and features to meet emerging market needs and regulatory requirements.
- Mergers and Acquisitions: Exploring potential mergers and acquisitions to enhance its technology portfolio and market position.
- Customer Engagement: Enhancing customer engagement through personalized solutions and services that address specific client needs.
Conclusion
Nasdaq’s impressive financial performance, driven by a surge in fintech sales, underscores the growing importance of fintech solutions in the financial market. The company’s strategic focus on innovation, partnerships, and global expansion positions it for continued growth and success. As Nasdaq continues to leverage its fintech capabilities, it is well-positioned to drive financial market innovation and deliver value to its clients and shareholders.
Source of the news: Reuters
The post Nasdaq Profit Beats Estimates as Fintech Sales Soar appeared first on HIPTHER Alerts.
MANHATTAN BEACH, Calif., July 26, 2024 /PRNewswire/ — Meridian BidCo LLC (“Bidco“), an affiliate of K1 Investment Management, LLC (“K1“), announced earlier this week that its tender offer to acquire the entire issued and to be issued share capital of MariaDB plc (“MariaDB“) for $0.55 per share (the “Offer“) had expired. The Offer was settled in accordance with its terms on July 25, 2024. Bidco now owns 61,263,283 MariaDB ordinary shares, representing 88.70% of the issued share capital of MariaDB as of July 22, 2024.
As previously announced, Bidco now intends to apply the provisions of Sections 456 to 460 of the Companies Act of 2014 of Ireland to acquire compulsorily, on the same terms as the Offer, any outstanding ordinary shares of MariaDB not acquired or agreed to be acquired pursuant to the Offer.
On July 26, 2024, Bidco sent compulsory acquisition notices (the “Notices“) to those MariaDB shareholders who did not accept the Offer (the “Non-Assenting Shareholders“). Following the expiration of 30 calendar days from the date of the Notices, which is expected to be August 25, 2024 (the “Expiration Time“), unless a Non-Assenting Shareholder has applied to the Irish High Court and the Irish High Court orders otherwise, the shares of MariaDB held by Non-Assenting Shareholders will be acquired compulsorily by Bidco (without any action on the part of such shareholders) on the same terms as the Offer, on or about August 26, 2024. The cash consideration payable will be settled no later than three business days after the Expiration Time. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless.
Following the compulsory acquisition process, Bidco intends to cause the ordinary shares of MariaDB to be delisted from the New York Stock Exchange and terminate the registration of the MariaDB ordinary shares under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act“), and suspend MariaDB’s reporting obligations under the Exchange Act as promptly as possible.
Enquiries
|
Lazard (Financial Advisor to K1 and Bidco) |
Tel: +44 20 7187 2000 |
|
Haven Tower Group (Public Relations Advisor to K1) Donald Cutler, Brandon Blackwell |
Tel: +1 424 317 4850 |
Important Notices
The K1 Responsible Persons (being the investment committee of K1), the Bidco officers and the Meridian TopCo LLC Officers accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the K1 Responsible Persons, the Bidco Officers, the Topco Officers, (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement for which they have accepted responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.
Lazard Frères & Co. LLC, together with its affiliate Lazard & Co., Limited (which is authorised and regulated in the United Kingdom by the Financial Conduct Authority) (“Lazard“), is acting exclusively as financial adviser to K1 and Bidco and no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than K1 and Bidco for providing the protections afforded to clients of Lazard nor for providing advice in relation to the matters referred to in this announcement or any other matters referred to in this announcement. Neither Lazard nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Lazard in connection with this announcement, any statement contained herein or otherwise.
Forward Looking Statements
This announcement (including any information incorporated by reference in this announcement), oral statements made regarding the Offer, and other information published by MariaDB, Bidco, K1 or any member of the K1 Group (as defined below) contain statements which are, or may be deemed to be, “forward looking statements.” Such forward looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and on numerous assumptions regarding the business strategies and the environment in which any member of the K1 Group (including, after closing of the Offer, any of MariaDB and its subsidiaries and subsidiary undertakings (the “MariaDB Group“)) shall operate in the future and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. The forward looking statements contained in this announcement relate to K1, any member of the K1 Group’s (including any member of the MariaDB Group) future prospects, developments and business strategies, the progress of the compulsory acquisition process, the outcome of legal proceedings that may be instituted against the K1 Group and/or others relating to the Offer, potential adverse reactions or changes to business relationships resulting from the completion of the Offer, significant or unexpected costs, charges or expenses resulting from the Offer, negative effects of this announcement or the consummation of the Offer on the market price of MariaDB’s Shares, and potential failure to realize the expected benefits of the Offer and other statements other than historical facts. In some cases, these forward looking statements can be identified by the use of forward looking terminology, including the terms “believes,” “estimates,” “will look to,” “would look to,” “plans,” “prepares,” “anticipates,” “expects,” “is expected to,” “is subject to,” “intends,” “may,” “will,” “shall” or “should” or their negatives or other variations or comparable terminology. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that shall occur in the future. These events and circumstances include changes in global, political, economic, business, competitive, and market conditions and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or disposals. If any one or more of these risks or uncertainties materializes or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors. Neither K1, Bidco nor any member of the K1 Group, nor any of their respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this announcement shall actually occur. The forward looking statements speak only as of the date of this announcement. All subsequent oral or written forward looking statements attributable to any of K1 and all of its affiliates, including K5 Private Investors, L.P. (the “K1 Group“), or any of their respective associates, directors, officers, employees or advisers, are expressly qualified in their entirety by the cautionary statement above. K1 and the K1 Group expressly disclaim any obligation to update such statements other than as required by law or by the rules of any competent regulatory authority, whether as a result of new information, future events or otherwise.
Further Information
This announcement is for information purposes only and is not intended to, and does not, constitute an offer to sell or invitation to purchase any securities, or the solicitation of any vote or approval in any jurisdiction pursuant to the Offer or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. In particular, this announcement is not an offer of securities for sale into the United States. No offer of securities shall be made in the United States absent registration under the Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements. The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.
View original content:https://www.prnewswire.co.uk/news-releases/k1-issues-mariadb-compulsory-acquisition-notices-302207896.html
-
Latest News6 days ago
China remains stabilizing force for global economic growth
-
Latest News5 days ago
Kylian Mbappé and Accor Forge Alliance to Empower Younger Generations
-
Latest News3 days ago
Martello Re announces closing of $1.3 billion capital raise consisting of $935 million in equity and a $360 million upsize of the Company’s credit facility
-
Latest News4 days ago
BioCatch completes best first half in company history, grows ARR by 43% YoY
-
Latest News4 days ago
Market Dojo Celebrates Prestigious Inclusion in Ardent Partners 2024 Strategic Sourcing Technology Advisor
-
Latest News2 days ago
Driving Innovation Forward: CFI Welcomes Seven-Time Formula 1™ World Champion Lewis Hamilton as new Global Brand Ambassador
-
Latest News2 days ago
KEYSTONE BANK HOLDS CUSTOMER FORUM, REITERATES COMMITMENT TO EXCELLENT SERVICE DELIVERY
-
Latest News5 days ago
COP28 President calls on all stakeholders to bring spirit of solidarity that delivered UAE Consensus to drive implementation and sustainable socio-economic development