Cboe’s Q4 2023 EPS Skyrocket 33%, Sets High Growth Goals for 2024

by Jared Kirui
  • With a focus on derivatives and data solutions, Cboe anticipates strong growth this year.
  • The network's guidance for fiscal year 2024 includes a growth of 5 to 7 percent in net revenue.
Cboe Global Markets
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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 growth in diluted earnings per share (EPS), which soared 33% to $1.98. The diluted EPS for the full year hit a record high at $7.13, marking a remarkable surge of 226%.

Adjusted diluted EPS for the quarter also climbed, reaching $2.06, an increase of 14 percent, and hitting a record $7.80 for the full year, up 13 percent. The company reported record net revenue figures, with $499 million for the quarter, marking a boost of 9%, and $1.9 billion for the full year, an improvement of 10 percent.

Notably, Cboe has set ambitious targets for 2024, aiming for a progression of 5-7% in total net revenue growth and net revenue growth of 7-10% in Data and Access Solutions.

Cboe Global Markets, Inc. has released its financial results for the fourth quarter of 2023 and the full year, demonstrating significant advancement in diluted earnings per share (EPS). Diluted EPS for the quarter escalated 33% to $1.98, reaching a record high of $7.13 for the full year, representing an impressive spike of 226%.

Growth Targets for 2024

Cboe's strategic initiatives, particularly in derivatives and data solutions, have been pivotal in driving its revenue growth. Fredric Tomczyk, the CEO of Cboe Global Markets, emphasized the company's commitment to leveraging its global footprint, technology, and innovation to sustain revenue growth and financial success in 2024.

Jill Griebenow, the CFO and Chief Accounting Officer, highlighted the positive performance of derivatives and data solutions, which experienced an increase of 21% in net revenue and 9% in the full year 2023. Despite challenges in cash and spot markets, the company is optimistic about its upward trend trajectory for 2024.

Tomczyk 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

Analyzing performance across segments, options' net revenue elevated 15%, driven by heightened trading volumes and high fees. North American Equities saw a decline of 10% in net revenue, attributed to changes in transaction and clearing fees.

Europe and Asia Pacific experienced an uptick of 9% in net revenue, fueled by development 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 expense management. The company aims to achieve adjusted operating expenses from $798 to $808 million, reflecting continued investment for long-term prosperity.

Cboe Global Markets, Inc. has announced its financial results for the fourth quarter of 2023 and the full year, highlighting a notable growth in diluted earnings per share (EPS), which soared 33% to $1.98. The diluted EPS for the full year hit a record high at $7.13, marking a remarkable surge of 226%.

Adjusted diluted EPS for the quarter also climbed, reaching $2.06, an increase of 14 percent, and hitting a record $7.80 for the full year, up 13 percent. The company reported record net revenue figures, with $499 million for the quarter, marking a boost of 9%, and $1.9 billion for the full year, an improvement of 10 percent.

Notably, Cboe has set ambitious targets for 2024, aiming for a progression of 5-7% in total net revenue growth and net revenue growth of 7-10% in Data and Access Solutions.

Cboe Global Markets, Inc. has released its financial results for the fourth quarter of 2023 and the full year, demonstrating significant advancement in diluted earnings per share (EPS). Diluted EPS for the quarter escalated 33% to $1.98, reaching a record high of $7.13 for the full year, representing an impressive spike of 226%.

Growth Targets for 2024

Cboe's strategic initiatives, particularly in derivatives and data solutions, have been pivotal in driving its revenue growth. Fredric Tomczyk, the CEO of Cboe Global Markets, emphasized the company's commitment to leveraging its global footprint, technology, and innovation to sustain revenue growth and financial success in 2024.

Jill Griebenow, the CFO and Chief Accounting Officer, highlighted the positive performance of derivatives and data solutions, which experienced an increase of 21% in net revenue and 9% in the full year 2023. Despite challenges in cash and spot markets, the company is optimistic about its upward trend trajectory for 2024.

Tomczyk 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

Analyzing performance across segments, options' net revenue elevated 15%, driven by heightened trading volumes and high fees. North American Equities saw a decline of 10% in net revenue, attributed to changes in transaction and clearing fees.

Europe and Asia Pacific experienced an uptick of 9% in net revenue, fueled by development 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 expense management. The company aims to achieve adjusted operating expenses from $798 to $808 million, reflecting continued investment for long-term prosperity.

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