Intercontinental Exchange (ICE) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 net revenues of $2.317 billion, up 23% year-over-year, with recurring revenues up 26% and transaction revenues up 19% compared to Q2 2023.

• Adjusted operating income reached $1.4 billion, up 21% year-over-year, and adjusted diluted EPS increased 6% to $1.52.

• Year-to-date adjusted free cash flow was $1.77 billion, up 7% from the prior year, and capital return to shareholders totaled $519 million.

• The Black Knight acquisition significantly expanded the Mortgage Technology segment, contributing to revenue and expense growth.

• Continued investment in technology, product development, and integration of recent acquisitions to drive future growth.

Financial highlights

• Q2 2024 consolidated net income attributable to ICE was $632 million; adjusted net income was $876 million.

• Q2 2024 operating margin was 46%; adjusted operating margin was 59%.

• Adjusted leverage ended Q2 at 3.7x pro forma EBITDA; unrestricted cash was $885 million as of June 30, 2024.

• Free cash flow and operating income both grew year-over-year.

• Paid $519 million in dividends through Q2 2024.

Outlook and guidance

• Q3 2024 adjusted operating expenses expected between $955 million and $965 million, up ~1% year-over-year.

• Expense synergies from Black Knight now expected to reach $150 million annualized by year-end.

• Adjusted non-operating expense for Q3 projected at $190–$195 million, reflecting lower interest expense from debt reduction.

• Capital expenditures and capitalized software development costs are projected to total $600 million–$650 million for 2024.

• Fixed Income and Data Services recurring revenue expected to grow mid-single digits for 2024.