Cboe Global Markets (CBOE) Q4 2022 earnings summary

Executive summary

• FY22 net revenue reached a record $1.742B, up 18% YoY; adjusted diluted EPS rose 15% to a record $6.93, driven by strong global volumes and data and access growth.

• Expanded across geographies and asset classes with the Cboe Digital and NEO acquisitions; operations span 26 markets across equities, options, futures, FX and digital assets.

Financial highlights

• FY22 revenue was $3.959B, up 13% YoY; net revenue was $1.742B, up 18%, including 16% growth in organic net revenue to $1.713B.

• GAAP net income fell 56% to $235.0M; diluted EPS was $2.19 versus $4.92, reflecting Digital goodwill impairment and higher tax expense.

• Adjusted EBITDA increased 15% to $1.136B; adjusted EBITDA margin was 65.2% versus 66.9%.

• Operating expenses rose 87% to $1.252B, primarily due to a $460.9M goodwill impairment and higher compensation and benefits.

Outlook and guidance

• FY23 capital expenditures expected at $60M-$66M for capacity, technology, Asia Pacific integration and global data and access expansion.

• Cash on hand and operating cash flow, with revolver availability, were expected to cover foreseeable operating, capital, debt service, dividend and strategic investment needs.