Cboe Global Markets (CBOE) Q2 2024 earnings summary

Executive summary

• Net revenue reached a record $514 million in Q2 2024, up 10% year-over-year, driven by strong growth across all business segments and global regions.

• Adjusted diluted EPS rose 21% to $2.15, while reported diluted EPS fell 15% to $1.33 due to an $81 million digital asset impairment.

• Adjusted EBITDA increased 16% to $341 million, with a margin of 66.3%.

• Strategic focus shifted from M&A to organic growth, technology investment, and capital returns to shareholders.

• Continued global expansion with notable market share gains in Canada, Australia, and Japan.

Financial highlights

• Adjusted EBITDA grew 16% year-over-year to $340.7 million, with margin expanding 3.5 percentage points to 66.3%.

• Adjusted operating income was $316.7 million, up 15%; adjusted net income was $226.2 million, up 20%.

• Adjusted operating expenses rose 2% to $197 million, mainly due to higher compensation and professional fees.

• Returned nearly $300 million to shareholders in H1 2024 via buybacks and dividends.

• Net income allocated to common stockholders was $139.7 million, down 16% year-over-year due to the digital asset impairment.

Outlook and guidance

• Raised full-year organic net revenue growth guidance to 6–8% based on strong H1 and July activity.

• Data and Access Solutions organic net revenue growth expected at the lower end of 7–10%.

• Reaffirmed 2024 adjusted operating expense guidance of $795–$805 million and CapEx of $51–$57 million.

• Effective tax rate on adjusted earnings expected at 28.5–30.5%.

• Digital segment will remain reportable through at least year-end 2024 as the spot market winds down.