10-KPeriod: FY2024

Cboe Global Markets, Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 21, 2025For Securities:CBOE

Summary

Cboe Global Markets, Inc. (CBOE) reported its fiscal year 2024 results, demonstrating robust revenue growth and strategic advancements across its diverse business segments. Total revenues increased by 9% year-over-year, driven by strong performance in its Cash and Spot Markets, Data Vantage, and Derivatives Markets segments. The company continued to innovate with new product launches and enhancements, particularly in volatility-based products and ETPs, while expanding its geographic footprint through strategic investments. Cboe's commitment to its core derivatives business, alongside an increasing focus on recurring revenue streams from data and access solutions, positions it for continued growth. The company is also actively managing its digital asset business by transitioning certain futures contracts to its CFE platform and winding down its spot digital asset market, indicating a strategic refocus on its core strengths. Financially, Cboe maintained a strong operational performance with a 4% increase in operating income, supported by effective cost management and strategic reallocation of technology resources. The company also repurchased a significant amount of its common stock, demonstrating a commitment to returning value to shareholders. Despite facing a competitive landscape and evolving regulatory environment, Cboe's diversified business model, proprietary products, and technological investments provide a resilient foundation for future performance and shareholder value creation.

Financial Highlights

56 data points
Beta

Revenue

$4.09B

50.6% Gross Margin

Net Income

$764.90M

18.7% Net Margin

EPS (Diluted)

$7.21

Total Assets

$7.79B

Cash & Equivalents

$920.30M

Free Cash Flow

$1.04B

Financial Statements
Beta
Revenue$4.09B
Cost of Revenue$2.02B
Gross Profit$2.07B
Operating Expenses$974.00M
Operating Income$1.10B
Interest Expense$51.50M
Net Income$764.90M
EPS (Basic)$7.24
EPS (Diluted)$7.21
Shares Outstanding (Basic)105.10M
Shares Outstanding (Diluted)105.50M

Key Highlights

  • 1Total revenues increased by 9% year-over-year, reaching $4.09 billion, driven by growth across all major revenue segments.
  • 2Options segment showed an 8% increase in revenues less cost of revenues, driven by higher index options ADV and RPCs.
  • 3North American Equities segment saw a 5% increase in revenues less cost of revenues, with net capture improvements in U.S. equities.
  • 4Europe and Asia Pacific segment reported a 16% increase in revenues less cost of revenues, reflecting strong net capture and volume growth in key markets.
  • 5The company continues to focus on enhancing recurring revenue streams through its Data Vantage segment, which grew 7% year-over-year.
  • 6Cboe announced plans to transition Bitcoin and Ether futures to the CFE platform and is winding down its spot digital asset market, demonstrating strategic focus.
  • 7The company repurchased $204.3 million of common stock in 2024, with $679.8 million remaining under its share repurchase authorization.

Frequently Asked Questions

Cboe's financial performance was driven by a 9% increase in total revenues, primarily fueled by growth in its Cash and Spot Markets (up 16%), Data Vantage (up 7%), and Derivatives Markets (up 3%) segments. This growth was supported by increased trading volumes, higher net capture rates in key equity and derivatives markets, and a 94% increase in the Section 31 fee rate. The company also benefited from increased interest income related to Cboe Clear Europe's investment policy changes and a strong performance in its proprietary products like VIX and SPX options.

Cboe is strategically refocusing its digital asset business. This includes plans to transition cash-settled margin Bitcoin and Ether futures contracts from Cboe Digital Exchange to Cboe Futures Exchange (CFE) in the first half of 2025, pending regulatory approval. The company has also halted trading on its spot digital asset market as of May 31, 2024, and is winding down related operations. Cboe Clear U.S., its digital asset clearinghouse, will continue to facilitate clearing services under unified leadership.

Cboe faces several key risks, including the potential loss of exclusive rights to trade certain index options and futures products, which are critical to its revenue. Intense price competition in the industry, regulatory and legal changes, cybersecurity threats, the dependence on third-party service providers, and the ability to attract and retain skilled personnel are also significant concerns. The company also highlights risks related to its clearinghouse operations and potential impacts from changes in equity market structure regulations.

The provided performance graph indicates that Cboe Global Markets, Inc. has shown strong relative total shareholder returns over the five-year period ending December 31, 2024. While the S&P 500 Index and a customized peer group (CME Group Inc., Intercontinental Exchange Inc., Nasdaq, Inc.) also delivered positive returns, Cboe's investment of $100 at the end of 2019 grew to approximately $175.40 by the end of 2024, outperforming the peer group ($182.20) which slightly underperformed the S&P 500 ($259.05) but showing solid growth relative to its peers. This suggests Cboe has delivered competitive returns to its shareholders.