Cboe Global Markets Reports Results for First Quarter 2024
07.08.2025 - 18:07:17(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
atu@cboe.com
tcave@cboe.com
khill@cboe.com
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
