Yahoo Finance

• Net Revenue: Increased 5% year-over-year to $524.5 million for Q4; 8% growth to $2.1 billion for the full year 2024.

• Adjusted Diluted Earnings Per Share: Increased 2% to $2.10 for Q4; 10% growth to $8.61 for the full year 2024.

• Derivatives Business: Organic net revenue increased 8% for the full year 2024.

• Options Volume: Total volume of 3.8 billion contracts in 2024; ADV of nearly 15 million contracts.

• SPX Options ADV: Record 3.1 million contracts in 2024.

• VIX Options ADV: Record 830,000 contracts in 2024.

• Data Vantage Business: Organic net revenue increased 7% for 2024.

• Cash and Spot Markets: Organic net revenue increased 10% for 2024.

• Adjusted Operating Expenses: Increased 7% to $205 million for Q4.

• Adjusted EBITDA: Grew 3% to $332 million for Q4.

• North American Equities Net Revenue: Increased 10% year-over-year for Q4.

• European and APAC Segment Net Revenue: Increased 17% year-over-year for Q4.

• Futures Net Revenue: Decreased 7% from Q4 2023.

• FX Segment Net Revenue: Increased 3% year-over-year for Q4.

• CapEx Guidance for 2025: $75 million to $85 million.

• Effective Tax Rate for 2025: Expected to be 28.5% to 30.5%.

• Dividends Paid in 2024: Total of $249 million.

• Shareholder Returns in 2024: Total of $454 million, representing 50% of adjusted earnings.

• Adjusted Cash on Balance Sheet: $880 million entering 2025.

• Warning! GuruFocus has detected 3 Warning Sign with AVTR.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cboe Global Markets Inc (CBOE) reported a strong fourth quarter with net revenue growth of 5% year-over-year, reaching $524.5 million.

• The company achieved record net revenue of $2.1 billion for the full year 2024, marking an 8% increase.

• Cboe's derivatives business saw a solid year with organic net revenue increasing 8%, driven by record option volumes.

• The Data Vantage business experienced a 7% increase in organic net revenue, supported by technology investments.

• Cboe's cash and spot markets performed well, with organic net revenue increasing 10% due to healthy trading volumes.

Negative Points

• Adjusted operating expenses increased by 7% to $205 million for the quarter, driven by higher travel and promotional expenses.

• Futures net revenue decreased by 7% from the fourth quarter of 2023, reflecting a 12% decrease in average daily volume.

• The guidance for Data Vantage revenue growth was adjusted to mid- to high single digits, which is perceived as weaker compared to previous years.

• Significant uncertainty remains due to geopolitical tensions and market volatility, impacting investor sentiment.

• The company did not repurchase any stock in the fourth quarter due to ongoing succession planning, which may concern some investors.