Intercontinental Exchange (ICE) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net revenues of $2.35B, up 17% year-over-year, with adjusted operating income of $1.4B, up 17%, and adjusted EPS of $1.55, up 6% year-over-year.

• Net income attributable to ICE was $657M for Q3, up 22% year-over-year; GAAP diluted EPS was $1.14, up 19%.

• Year-to-date adjusted free cash flow reached $2.63B, up 7%, with operating cash flow at $3.1B, up 21%.

• The Black Knight acquisition significantly contributed to Mortgage Technology segment growth and overall expense increases.

• Maintained a consistent track record of growth, with adjusted EPS CAGR of 16% from 2006–2024.

Financial highlights

• Q3 2024 net revenues: $2.35B (+17% YoY); operating income: $1.1B (+31% YoY); adjusted operating income: $1.4B (+17% YoY).

• Net income attributable to ICE: $657M (+22% YoY); adjusted net income: $894M; GAAP diluted EPS: $1.14 (+19% YoY); adjusted EPS: $1.55 (+6% YoY).

• Operating cash flow through Q3 2024: $3.1B; adjusted free cash flow: $2.63B.

• Paid $780M in dividends through Q3 2024.

• Outstanding debt: $21.2B as of September 30, 2024; adjusted leverage at 3.5x EBITDA.

Outlook and guidance

• Q4 2024 adjusted operating expenses expected between $977M and $987M; GAAP operating expenses between $1.23B and $1.24B.

• Full-year 2024 capital expenditures forecast at $700M–$740M due to accelerated data center investments.

• Q4 IMT revenues expected between $495M–$505M, reflecting seasonal transaction revenue trends.

• Macroeconomic environment expected to remain dynamic, with ongoing monitoring of interest rates, inflation, and geopolitical events.

• Mortgage Technology segment may face further headwinds if mortgage rates remain high or increase.