Cboe Global Markets Inc (CBOE) Reports 9% Increase in Total Revenues and 38% Surge in Net ...
Cboe Global Markets Inc (CBOE) reports a 9% increase in total revenues less cost of revenues, reaching $480.5 million in Q3 2023.
Net income allocated to common stockholders surged by 38% to $207.1 million, compared to Q3 2022.
Derivatives business leads with a 15% YoY net revenue increase.
Company's adjusted operating expense guidance for 2023 moves lower to $754 to $762 million.
On November 3, 2023, Cboe Global Markets Inc (CBOE) released its financial results for the third quarter of 2023. The company reported strong earnings, record adjusted earnings, and record net revenues for the quarter, driven by robust performance from its Derivatives and Data and Access Solutions categories.
Financial Highlights
According to the report, Cboe's total revenues less cost of revenues increased by 9% to $480.5 million in Q3 2023, compared to $442.4 million in the same period in 2022. The company's net income allocated to common stockholders surged by 38% to $207.1 million, up from $149.6 million in Q3 2022. Diluted earnings per share also saw a significant increase of 38%, reaching $1.95 in Q3 2023, compared to $1.41 in the same period last year.
Business Segment Performance
The Derivatives business led the way, delivering a 15% year-over-year net revenue increase in Q3 2023. Data and Access Solutions net revenue trends remained solid, increasing by 9% year-over-year. However, Cash and Spot Markets net revenue decreased by 6% due to the challenging volume environment.
Financial Guidance and Capital Management
For 2023, Cboe expects to be at the high end of its unchanged organic total net revenue growth target of 7-9%. The company's adjusted operating expense guidance for 2023 moves lower to $754 to $762 million from $766 to $774 million. As of September 30, 2023, the company had adjusted cash of $403.6 million and total debt of $1,513.6 million.
Company's Outlook
Despite the challenging volume environment, Cboe remains well-positioned to help customers navigate ever-changing market conditions with a toolkit of tradable products and data solutions. The company is excited by the strong volume trends in its core proprietary products as it looks to close out 2023 and continues to work towards delivering long-term shareholder value.
Explore the complete 8-K earnings release (here) from Cboe Global Markets Inc for further details.
This article first appeared on GuruFocus.
