Cboe’s Q4 2023 EPS Skyrocket 33%

Cboe’s Q4 2023 EPS Skyrocket 33%

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Cboe Global Markets, Inc. has announced its
financial results for the fourth quarter of 2023 and the full year,
highlighting a notable uptick in diluted EPS, soaring by 33 percent to $1.98,
while full-year diluted EPS hit a record high at $7.13, marking a remarkable
226 percent increase.

Adjusted diluted EPS for the quarter also climbed,
reaching $2.06, up by 14 percent, and hitting a record $7.80 for the full year,
up by 13 percent. The company reported record net revenue figures, with $499.0
million for the quarter, marking a 9 percent increase, and $1.9 billion for the
full year, up by 10 percent.

Notably, Cboe has set ambitious targets for 2024,
aiming for organic total net revenue growth of 5 to 7 percent and organic net
revenue growth in Data and Access Solutions of 7 to 10 percent.

Cboe’s strategic initiatives, particularly in
derivatives and data solutions, have been pivotal in driving its revenue
growth. Fredric Tomczyk, CEO of Cboe Global Markets, emphasized the company’s
commitment to leveraging its global footprint, advanced technology, and product
innovation to sustain revenue growth and financial success in the coming year.

Jill Griebenow, the CFO and Chief Accounting
Officer, highlighted the robust performance of derivatives and data solutions,
which saw net revenue increases of 21 percent and 9 percent, respectively, in
2023. Despite challenges in cash and spot markets, the company remains
optimistic about its growth trajectory for 2024.

Fredric Tomczyk, the Chief Executive Officer at Cboe
Global Markets, mentioned: “Our Derivatives and Data and Access Solutions
categories helped drive the 10% net revenue growth and 13% adjusted diluted EPS
growth for the year as both strong secular and cyclical trends helped boost
these business lines.”

Segment Performance Analysis

Examining the performance per segment, options net
revenue surged by 15 percent, driven by increased trading volumes and higher
fees. North American Equities saw a decline of 10 percent in net revenue, attributed to changes in transaction and clearing fees.

Europe and Asia Pacific witnessed a 9 percent
increase in net revenue, fueled by growth in market data fees and other revenue
streams.

Cboe anticipates solid revenue growth across its
business segments in 2024, maintaining a balance between revenue expansion and
disciplined expense management. The company aims to achieve adjusted operating
expenses in the range of $798 to $808 million, reflecting continued investment
for long-term growth.

For the fiscal year 2024, Cboe provided guidance on
organic total net revenue growth, expecting a range of 5 to 7 percent and
projected growth in Data and Access Solutions of 7 to 10 percent. Adjusted
operating expenses and capital expenditures are also outlined, underscoring the
company’s commitment to strategic investments and shareholder returns.

Cboe Global Markets, Inc. has announced its
financial results for the fourth quarter of 2023 and the full year,
highlighting a notable uptick in diluted EPS, soaring by 33 percent to $1.98,
while full-year diluted EPS hit a record high at $7.13, marking a remarkable
226 percent increase.

Adjusted diluted EPS for the quarter also climbed,
reaching $2.06, up by 14 percent, and hitting a record $7.80 for the full year,
up by 13 percent. The company reported record net revenue figures, with $499.0
million for the quarter, marking a 9 percent increase, and $1.9 billion for the
full year, up by 10 percent.

Notably, Cboe has set ambitious targets for 2024,
aiming for organic total net revenue growth of 5 to 7 percent and organic net
revenue growth in Data and Access Solutions of 7 to 10 percent.

Cboe’s strategic initiatives, particularly in
derivatives and data solutions, have been pivotal in driving its revenue
growth. Fredric Tomczyk, CEO of Cboe Global Markets, emphasized the company’s
commitment to leveraging its global footprint, advanced technology, and product
innovation to sustain revenue growth and financial success in the coming year.

Jill Griebenow, the CFO and Chief Accounting
Officer, highlighted the robust performance of derivatives and data solutions,
which saw net revenue increases of 21 percent and 9 percent, respectively, in
2023. Despite challenges in cash and spot markets, the company remains
optimistic about its growth trajectory for 2024.

Fredric Tomczyk, the Chief Executive Officer at Cboe
Global Markets, mentioned: “Our Derivatives and Data and Access Solutions
categories helped drive the 10% net revenue growth and 13% adjusted diluted EPS
growth for the year as both strong secular and cyclical trends helped boost
these business lines.”

Segment Performance Analysis

Examining the performance per segment, options net
revenue surged by 15 percent, driven by increased trading volumes and higher
fees. North American Equities saw a decline of 10 percent in net revenue, attributed to changes in transaction and clearing fees.

Europe and Asia Pacific witnessed a 9 percent
increase in net revenue, fueled by growth in market data fees and other revenue
streams.

Cboe anticipates solid revenue growth across its
business segments in 2024, maintaining a balance between revenue expansion and
disciplined expense management. The company aims to achieve adjusted operating
expenses in the range of $798 to $808 million, reflecting continued investment
for long-term growth.

For the fiscal year 2024, Cboe provided guidance on
organic total net revenue growth, expecting a range of 5 to 7 percent and
projected growth in Data and Access Solutions of 7 to 10 percent. Adjusted
operating expenses and capital expenditures are also outlined, underscoring the
company’s commitment to strategic investments and shareholder returns.

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