Cboe Global Markets, Inc. has announced its
financial results for the fourth quarter of 2023 and the full year,
highlighting a notable growth in diluted earnings per share (EPS), which soared by 33% to $1.98. The diluted EPS for the full year hit a record high at $7.13, marking a remarkable increase of 226%.
Adjusted diluted EPS for the quarter also climbed,
reaching $2.06, up by 14 percent, and hitting a record $7.80 for the full year,
up by 13 percent. The company reported record net revenue figures, with $499
million for the quarter, marking a boost of 9%, and $1.9 billion for the
full year, up by 10 percent.
Notably, Cboe has set ambitious targets for 2024,
aiming for a growth of 5-7% in total net revenue growth and net
revenue growth of 7-10% in Data and Access Solutions.
Cboe’s strategic initiatives, particularly in
derivatives and data solutions, have been pivotal in driving its revenue
growth. Fredric Tomczyk, the CEO of Cboe Global Markets, emphasized the company’s
commitment to leveraging its global footprint, technology, and innovation to sustain revenue growth and financial success in 2024.
Jill Griebenow, the CFO and Chief Accounting
Officer, highlighted the positive performance of derivatives and data solutions,
which experienced an increase of 21% in net revenue and 9% in the full year 2023. Despite challenges in cash and spot markets, the company is optimistic about its growth trajectory for 2024.
Tomczyk mentioned: “Our Derivatives and Data and Access Solutions
categories helped drive the 10% net revenue growth and 13% adjusted diluted EPS
growth for the year as both strong secular and cyclical trends helped boost
these business lines.”
Segment Performance Analysis
Analyzing performance across segments, options’ net revenue surged by 15%, driven by heightened trading volumes and high fees. North American Equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term saw a decline of 10% in net revenue, attributed to changes in transaction and clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term fees.
Europe and Asia Pacific experienced an uptick of 9% in net revenue, fueled by growth in market data fees and other revenue
streams.
Cboe anticipates solid revenue growth across its
business segments in 2024, maintaining a balance between revenue expansion and expense management. The company aims to achieve adjusted operating
expenses from $798 to $808 million, reflecting continued investment
for long-term growth.
Cboe Global Markets, Inc. has announced its
financial results for the fourth quarter of 2023 and the full year,
highlighting a notable growth in diluted earnings per share (EPS), which soared by 33% to $1.98. The diluted EPS for the full year hit a record high at $7.13, marking a remarkable increase of 226%.
Adjusted diluted EPS for the quarter also climbed,
reaching $2.06, up by 14 percent, and hitting a record $7.80 for the full year,
up by 13 percent. The company reported record net revenue figures, with $499
million for the quarter, marking a boost of 9%, and $1.9 billion for the
full year, up by 10 percent.
Notably, Cboe has set ambitious targets for 2024,
aiming for a growth of 5-7% in total net revenue growth and net
revenue growth of 7-10% in Data and Access Solutions.
Cboe’s strategic initiatives, particularly in
derivatives and data solutions, have been pivotal in driving its revenue
growth. Fredric Tomczyk, the CEO of Cboe Global Markets, emphasized the company’s
commitment to leveraging its global footprint, technology, and innovation to sustain revenue growth and financial success in 2024.
Jill Griebenow, the CFO and Chief Accounting
Officer, highlighted the positive performance of derivatives and data solutions,
which experienced an increase of 21% in net revenue and 9% in the full year 2023. Despite challenges in cash and spot markets, the company is optimistic about its growth trajectory for 2024.
Tomczyk mentioned: “Our Derivatives and Data and Access Solutions
categories helped drive the 10% net revenue growth and 13% adjusted diluted EPS
growth for the year as both strong secular and cyclical trends helped boost
these business lines.”
Segment Performance Analysis
Analyzing performance across segments, options’ net revenue surged by 15%, driven by heightened trading volumes and high fees. North American Equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term saw a decline of 10% in net revenue, attributed to changes in transaction and clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term fees.
Europe and Asia Pacific experienced an uptick of 9% in net revenue, fueled by growth in market data fees and other revenue
streams.
Cboe anticipates solid revenue growth across its
business segments in 2024, maintaining a balance between revenue expansion and expense management. The company aims to achieve adjusted operating
expenses from $798 to $808 million, reflecting continued investment
for long-term growth.