CBOE - Earnings call transcript Q4 2024 | Cboe Global Markets, Inc.

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Operator

Thank you for standing by. At this time, I would like to welcome everyone to the Cboe Global Markets Fourth Quarter Earnings Call. [Operator Instructions] I would now like to turn the call over to Ken Hill. Head of Investor Relations and Treasurer. Ken, please go ahead.

Kenneth Hill

you call. us thank quarter our and conference earnings morning, for for joining fourth Good

call financial Fred performance for financial the strategic Officer, Global as and On will today, well an the initiatives. President, outlook. Howson, and provide our overview our discuss will quarter our Then Dave provide Jill as discuss Chief on an results our update for Griebenow, quarter Tomczyk, the XXXX our our Financial CEO; our of

open the for will to Q&A. Chris Following our us we their Officer. call Also joining Q&A Isaacson, comments, be will Chief Operating

I'd presentation each. on website. Relations portion of slides use like slide downloadable out to showing providing the Investor and point the that available A will include the is our be We'll this of copy the on commentary of slides. presentation

call. information, expressed full events may implied publicly not statements, are of we'll for differ filings our judgment believe what uncertainties. SEC the remarks, with factors in future materially During while after assumptions, a results risks these forward-looking may is statements, some reasonable, from Actual these no and any forward-looking conference of to update result on statements. statements. and any outcomes may make new we the represent current and And or refer a or Please are that future We forward-looking of affect hold. performance our to any these guarantees undertake future discussion forward-looking obligation this involve judgments certain what our as which forward-looking statements whether otherwise

material. and as referring be to reconciled During measures the call will we in earnings our this defined morning, non-GAAP

over call Now I'd turn Fred. like to to the

Frederic Tomczyk

fourth to for us thank is quarter you Markets. and hope results great Cboe year strong to Global for everyone. start morning, a I for report year today. on pleased and full Good joining the I'm off

a strong revenue grow net capped billion year, share revenue These XXXX. X% fourth to a over results we $X.XX. X% saw earnings to earnings record per quarter $XXX.X record another diluted quarter, net to share, a by us adjusted to X% and During per $X.X diluted in XX% $X.XX year-over-year adjusted the record grew million and which

Our management. diluted solid disciplined for markets, and volumes across of advantage our increase strong incredibly X% across expense business, Strong our cash and derivatives our driven stabilizing X% in the business, by volumes revenue results were year for our share Solutions Datas coming expenses, in Access formerly as growth XX% more the and pleased the with earnings spot net data driving and per growth year. margins XXXX, a against adjusted adjusted in a I'm improvement modest known

fourth standout the derivatives were business category category lines While as robust to and a markets, and in were year-over-year spot full quarter XXXX. net notable drove in cash major growth growth growth. year for every markets produced and revenue option the Record-setting trends contributed that data the results segment volumes and advantage broad-based each XXXX, across

volume across fifth a X%, year up Total million X consecutive exchanges record-breaking billion nearly of option with Our Cboe's organic delivered contracts solid XX traded revenue year. year contracts derivatives wrapping volume with a X.X another an in net options traded was record of XXXX increasing ADV growth. business

X.X and was toolkit ADV options VIX while a and For volume saw to to SPX record fixed volatility S&P XXXX, our was SPX record million XXX,XXX record XXX navigate we contracts options traded help contracts as turn in options, ADV traded. investors a markets. and

drove and for customers. strong, Data increase to driving a year positive net Vantage our our insights optimize Cboe Vantage in results The Data X% business in finished XXXX. business revenue further organic made data technology investments Our the we access, and for

and footprint business to leverage in drive durability technology continue as we global growth. our see enhancements this We to

as year markets. the excellent during by well performed it of for Overall, markets regional trading for revenue year all and was organic spot increased fourth strong quarter by transaction across our XX%, healthy Cboe. both equities growth driven net non-transaction capped and growth a an volumes cash Our and

our that strategic As entered we last shaping outlined expect with framework focus The positioned globally. and that XXXX well artificial rising the and we the the quarter of popularity we're intelligence. to the trends rise data markets trading, we the technologies sharpened we secular continue markets for the of management, area investor, of and and including adoption technology evolving continued of options rapidly retail newer globalization like believe

record-breaking the of options. market options more versatility the and another for was year XXXX utility as investors embrace

access administration a growing supported to trends elevated products, the navigate well by believe bullish with Our of new ecosystem. our are XXXX to combination diverse the for pro-business positioned U.S. we options. we're of The market remains derivatives market a increasing well in market a moves demand tone further different demand a we're the customer enter has tax situated deregulation We Washington uncertainty participants markedly that enhance the and for signaling derivatives settlement. regards and base, environment business and expand as to to our across suite resilient fostering geopolitical environment. With help an we and these cuts, witnessing

orders market. of geopolitical significant tariffs the coming new volatility combined the which of of around remains all injected and administration, in strange uncertainty with the more the However, record out the environment, executive number recent

for of and markets a products We their domestically be back options events, clock. our As the expected risk XX% hedge new import portfolios and focus U.S. around an the for a and will in investors strong in seize ability more VIX to help for response opportunities SPX believe that SPX S&P than index the in continue the these the unparalleled market top management and investors, complex, our attract with evolve XXXX. performance into notching foreign growing to X to our us be return provide toolkit opportunity XXX will both market U.S. and investment Through facilitate a is to significant that internationally. the consecutive years to

to across options. I'm options with partners expand pleased to broker continue numerous On more Robinhood, products room to the believe run access to index front, of report all investors through demand retail the access key the product customers at education index leverage has retail positioned of of platforms Cboe's to are that and trading index our can benefits and options for one still globe so work this retail the We now Cboe is retail we that investors. growing largest and available to meet options adoption to well education, innovation.

unveiled the technology core over for Cboe brand globe. every an platform, titanium the Last delivering market trading data identity for new we platform. our scalable last platform. signaling enables of technology. market ongoing in migration and our market this new is titanium, improved technology. components have participants reallocated in to investment following our a Cboe we new we chapter and rewards to and technology share markets, across have innovation the technology One exciting resources year, capital exchange All insights. entered, has and In evolution of unified our And Cboe month, our products, global around innovation on to best-in-class a a commitment

is I'm how As Cboe about excited we enter XXXX, positioned.

our well capital secular strengths. markets framework as the strategic trends leverages compete in see as and in we the we to aligned Our

in disciplined Our long-term follow not balance drive enables us strategic we're growth to just sheet beyond. a in capital position to growth approach that in is organic and strong that but to XXXX, well and allocation, opportunities a invest suited

over pass discuss to now results I'll the to more in it detail. line Dave business

David Howson

remain base, Thanks, about option options SPX of million for business. business the index a Fred. were led year strong On year-over-year $X.X ADV options by as excited derivative increased Starting year up We growth. a with our full trends net X%, place secular X% XXXX. in to record volumes revenues in of another our

market XX% XXXX the record record. utility volatility ADV The contracts XXX% investors our conditions. quickly up toolkit and Options in high from of showcased fourth While of navigate VIX effectively helping S&P hit a quarter changing

put higher demand we volumes election, surged use going is saw in hedging a post VIX Meanwhile, on normalization volume rally trade as investors jumped adjust election the their quickly many a U.S. results. by While the following a risk for volatility. portfolio. [indiscernible] as [indiscernible] into that saw surprise caught investors we and positioned to pickup

growth outlooks in stayed X options over the SPX fourth X% options for [indiscernible]. half volatility to ADV up SPX nearly the of In gained time. first changed, all now conditions quarter, DTE sustained DTE Zero our ADV and and market SPX quarter-over-quarter While what making X.X options contracts, in both was constant million the

January, the share to daily launched auction we DTE XX% expirations have options X XX% in from Index trading of Since in XXXX XX% options with on doubling January volumes year-over-year the XXXX. Russell XXXX January grown on last up

as market of portfolios education in viscose rising we nimble we for investors allow options this of need Engine towards S&P products, help sustained in are in our these and U.S. ahead tensions as environments to the to as great our all risk. well for macro face as tool backdrop, increasing monetary We conditions toolkit access year, expanding work to a globally. volatility their we're and excited to reposition As investors a they broadening manage this to the see efforts advantages investors change. quickly believe stay and showcasing hedge Against trade to look the

access front, the business, of our aligned we investor. of the the drivers secular including On well are rise the retail with

as be increased following fourth pleased in our Robinhood the We anticipate traction the product platform the to volumes are to launch traders. retail we expand additive more access will the proprietary the and early with quarter from volume

European-style With advantages tax simplicity certainty XX-XX the settlement of options customers access expanded leverage able to and from the to on of full of cash platform, index Robinhood the are the the treatment. potential the exercise

endeavors. our international Turning to

Korea, volumes translate We sales globe efforts We U.S. of force and derivatives Pacific are In imported Kong. a making in building anticipate Asia our and excited greater being expanding region, will we tailored tools export back investments our import educational Taiwan the that our for to specifically, priority customers. around By and on presence educational the focused by the South and local products. Australia, sales our Singapore, to markets: local potential remain the Japan, in X Hong

making fourth brokers for trading global have we options. priority and trading on X now regular brokers we saw providing quarter, during new products priority During with available Outside listed in markets, turn hours. our our the access markets investors Malaysian initial Cboe X

front, for interest to levels finish the [indiscernible] And ways X over fourth the innovation single-stock various with through open side, to to from and index a XXXX. add we as trade quarter options on countries VIX S&P and our volatility XX the to futures record trade X of team product options futures. capabilities busy On available export XXX development continued on introduced new was company

continue week, of impact This the Cboe. these Given the right the products, to be Head initiatives as these the focus was we have who our a to I To place to must drive derivatives at XXXX grow introduction in of maximize is across we in company Dugan, toolkit. platform auctions. joining will education Megan incredibly key talent of global as excited success welcome the U.S.

new addition, the we business and intelligence recently promotions and development, strengthen several In hires to and outlined key U.S., Asia Pacific. our Europe sales capabilities across market further

a talent leverage year to improved transformational access, education as customers provide our XXXX be toolkit. expect continued we with around bench to strong innovation We and of a volatility enhanced

regions. produced where but improved The results market Moving a Pacific. housing net markets like regions on net revenues all year-over-year helped year share the in capped quarter results the was drive revenues only fourth and strong innovation notable that to cash XX%, increased and a Europe increasing given contributions XXXX XX% for Asia not spot across from solid also basis. market. This with robust

the integration and our cohesive trading in excited efforts of we to we the Canada later infrastructure. As are this end quarter, power full our global of near leverage

the as in as and on clearing basis. continue Canadian by quarter during share on on-exchange In ADV, North in strike equities between basis. X% U.S. growth XX% growth of XX% net helped transaction in improved growth a the XX% year-over-year for segment and balance Industry to the capture right revenue. compared improve we volumes ADV to optimize a XXXX off-exchange a fourth to market ADV quarter on tailwind. U.S. net fourth XX% and Capture the in America, year-over-year fees were the revenue increase in The exchange XX%

Canadian In market solid XXXX Canada, to on we March Cboe we trend anticipate are completing technology as excited on the of our build to X. the migration

up The fourth in XX% Europe driven XX% Pacific transaction quarter full quarter and revenue Our fourth net fees segment and year. net XX% impressive year. and year-over-year full by the for the for Asia growth XX% were higher the growth the and increases delivered in clearing

the XX%, For up continuous Europe third stock the specifically, points quarter's European hitting fourth Cboe our the exchange nearly was quarter basis largest record for versus volume XX share trading with of level.

fourth in market a net were Japan saw periodic again the Asia accounting of year-over-year X.X% during out driving industry the auctions auctions and sustained with continuous and both In share a XX% results periodic trading by of in in progress region. record for The Australia strength we revenue with growth share volumes, Pacific, quarter. market

were offering broadly, the of and Vantage proprietary to by carry our through to and Turning fourth More grew X increases of on year. year record the full the X% with new course was quarter market basis, hallmarks and network. ability for expect XXXX underpinned driven dedicated our Cboe real-time data product market to products X revenue in fourth data, indices business. sell the advantage for components global results Data data. and strength full development in that notable all Vantage. across a beyond Net Results by quarter analytics Data the we X% and in our

[indiscernible] our The XXXX our uptick U.S. from expectations. dedicated exceeded in launch

on Australia highlighting that rolling ability take across product the and quarter that first and product replicate global one our in success Europe built a well to out success have in region our network. of the by across We XXXX, working

further migration shifting forward from to activities, look infrastructure. scale that to leverages our our revenue-generating development work product technology With team we

in at levels, record XXXX, sales for Looking XX% broadly, hit Data increasing trends our year-over-year. contract annual saw new more net Advantage value we

the products the levels, of a look will healthy network. with our educational was trends should focused on start Cboe footprint the to Cboe execution market I'm building of great with and new and benefits Cboe, a with of highlighted leveraging larger fourth XX% coming and a providing sales investment amplify ADV of more This on off running global with that and the uniform again, XXXX options help be global cash growth of results. entire set is from that January greater power outside for delivering Data quarter, the we the resources investors. Vantage record spot differentiated excited The our education International build to sales in all durable ahead. U.S. growth access, Index ecosystem year at for globe. across to by at year forward derivatives,

Jill. call to will I the that, With turn over

Jill Griebenow

Siebel segments XXXX. diluted the display The Dave. solid share to fourth Thanks, adjusted was posted basis quarter to on X% illustrate a strength per with across $X.XX. continue earnings year-over-year a fourth quarter our that on up during results

operating high-level some provide will I quarter's going before through takeaways segment from results. this results

driven spot revenue net Our increased the business. cash fourth strength to versus $XXX.X derivatives the quarter and categories in million. of and well XXXX solid fourth from at X% quarter data finish The by markets results as advantage growth our was as

an X% with net Specifically, robust Data growth. year-over-year XX% the of during a spot versus all and cash geographies revenues markets quarter, XXXX. derivatives organic revenues a the and fourth revenue increased grew to growth on basis net on basis Vantage markets quarter X% produced organic contributing net

year-over-year growth million adjusted quarter, $XXX expenses well as expenses of with technology versus expenses, quarter grew the as XXXX. to fourth driven support the the of EBITDA travel and million promotional operating services $XXX by increased for Adjusted X% X% higher

the to by Turning drivers segment. key

include Our our slide of press release appendix key our metrics information detailing business segments. for in the the deck

driven options So by in up I'll by X% another multi-listed year-over-year for record Options increase each. highlights was multi-listed higher an growth options The segment X%, some net options Total led ADD fees. provide with revenue, transaction volume. X% quarter produced of

basis. an equities. as in reflecting of a decreased and clearing improved volume industry Net volumes North the contract capture fees rate net on net X% Equities grew per a increased Revenue XX%, XX% lower American on-exchange higher and U.S. represented revenue transaction quarter. index options during total percentage options year-over-year

as side, versus to growth of nontransaction as as The access compared benefited result Transaction increased the XXXX. quarter gains revenue. share quarter a the a capacity and revenues. well both fourth European APAC and fourth transaction segment fees each revenues strong delivered XXXX. net market in XX% XX% of volumes increase On across nontransaction region from of across the increased year-over-year

in segment finally, net higher And Futures from transaction product of ADD. quarter clearing fees. year-over-year fourth reflecting clearing revenue a XXXX FX revenue decreased X% growth net the of XX% with net a transaction decrease net as fees, the X% recorded and lower and

Advantage Net XXXX. organic we as in increased the More fourth expect XX% We basis Cboe's growth insights technology particularly Cloud. increase aided new of leverage U.S. positioned now were in on our and by access markets, across Cboe Vantage growth new distribution well access sales geographies as data, Turning sales International presence Data an up to our and efforts anticipate sales of Global outside quarter. the our greater the revenues coming in organic perform business. We X% with the reallocate enhanced resources around quarter. be global believe to Data from specifically, enhancements. demand to from revenue-generating over is we will capabilities we for integration capabilities

the marketing expenses seasonally fourth on index The well This the Total operating travel expenses. expenses platform. Robinhoods expenses. quarter from as the approximately higher would to fourth increase XXXX. and adjusted increase of travel annual that conference. options spend, quarter resulted our as note million Turning promotional of our $XXX quarter, services primarily year, X% also compared high the were risk quarter to support a an up for I technology in launch for and management coinciding saw is we with given expenses promotional

we investing quarter lower and to see While marketing for see efforts, for fourth continue from promotional opportunities to sequentially business, expect expenses our we travel move as returns behind plan we levels.

we framework and expect year Slide As mid-single-digit anticipate guidance be Data our guidance growth organic revenue single-digit net for guidance, time net are to our the our we growth organic note to ahead our ranges in Vantage the revenue our Data our to XXXX under revenue net line both provided range. in organic be organic in range. that Vantage total we would and guidance to on the guidance last look while high previous year. XX mid- XXXX, we at net revenue this I we framework tweaked our total with full

our introducing also growth guidance end. and are million, end of $XXX We the on lower range the expense higher on to growth year adjusted X.X% XXXX full million X.X% $XXX representing

and investments make for Cboe transaction financing accounts securities our help improve investment across expansion the we lines, Europe XXXX growth, to The our expanding monetize hires few EBITDA continuing in region, margin marketing XXXX, step expense in by plan of a allowing back, Cboe options the efforts our to and growth access to expense core offering in XX stabilizing adjusted our for of Taking expanding to education basis guidance in full year. against for modest adjusted drive sales revenue X% types points investor and incremental examples A products. the while APAC net produced revenue businesses. include X% the incremental index it growth

budget and presence XXXX million, the $XX We million as margin our potential. a our depreciation and maintain expense earmarked $XX We $XX summer. to for is this of growth XXXX full business and CapEx today and A the long-term committed CapEx of million see depreciation we between out the in in with to year-over-year CapEx The be move, in revenue million for investing regulatory Kansas disciplined our where expense for balance outlined to amortization technology for to of believe associates planned the City is in the long-term also and is year our remain guidance people to increase we and stability. office $XX Rounding growth remaining sustainably we investment and our range our to guidance many look invest culture. guidance, reflect in and efforts expected operations, is the portion drive range. long-term and amortization pieces the strikes finance area, and sizable right management which

interest provide and And to expect the or to we the at earn started income fourth expense, quarter our come accounts interest on while outperformed don't balances. laws XX.X% highlight rate We income guidance tax adjusted income higher on under some additional wanted formal cash given earnings effective interest to interest XX.X% full current the tax to that for year. expectations, I that in

first interest net expect in the of We range income interest XXXX. expense that $X will for million of be million $X quarter the to

earnings we I to other below-the-line The to past guidance anticipate a wanted modest received. have We on today, guidance as in element detailed last phase and the reached have more income and it items, with items, we a in impact more provided anticipate will we in mature and line our our cash cycle XXXX believe on line earnings is these continue investment gradually our income. grow dividends to relates other investments investments on on but touch XXXX. that In years,

a of to year. Cboe bringing $XX adjusted total dividends representing amount Factoring view form repurchases of allocating for share a quarter, share sheet. investments total balance Turning capital and investments. of earnings in We greatest both for form to million the million to returned cornerstone for shareholders, on return, strategic been $XXX we see shareholders or to areas The to effective XXXX. of $XXX million a XX% total the of XXXX, has of be we it review our in allocation where our $X.XX repurchases, of whether inorganic paid the returned a capital process. the of organic the the dividends or In fourth take long-term a in dividend, dividends

in million averaging strong leverage with an attractive We debt entered sheet, profile fixed our XXXX X.Xx. low footing on of average below with adjusted on X%, balance cash ratio financial and a of rates an $XXX medium-term

cash move balance leveraging sheet our and forward, shareholders. produce we free flow As returns to we profile anticipate flexible durable for healthy

turn like for to back it closing Fred open it I'd some before comments over for to we up Q&A. Now

Frederic Tomczyk

of an succession my work after capital their of to September for first were CEO sudden since. When XXXX, the to previous stable and organization priorities I'd disciplined the lead Board led challenging experienced CEO time. I to that organization stabilize in has been CEO, departure the sharpen entire that to team our incredible leadership more thank results. team from the moved to record unexpected The strategic my XXXX the like require allocation Cboe the management development a approach through priority, succession. to and On focus, bring in

is team current refocused a more focused executing on that than strong ever strategy. management team is unified and Our our

framework derivatives positioned the franchise. XX the progress well focus significant benefit as Over sharpening we've of leveraging the strategic core made to We're the past our strength secular from equity months, we our start year. and trends

have line our to strategy on and on capital organic and growth up also to investing our strategic allocating We changed focus behind resources allocation M&A less opportunities more in focus.

Following the completion driving of years be fully our will technology the our X technology opposed migrations migrations. first on this business focusing year, technology strategy in time this resources focused on our the will focus on leverage to Redeploying be to X XX return a the that us and and to sheet. margins growth clear stabilized on growth organic strengths our and opportunities. moderated strategy, The a now attractive expense enables has of and growth of strategic company capital organic strategy resources greatest balance strong as

positioned take strategic to the flexibility strategy. that development with arise, of XXXX footing enter financial to me and focus solid succession. last refined a being we brings back and which they execute advantage well my leadership to As priority, while on as opportunities

a XX team. the unified and has did months. change management that all But believe around we through over a more executive we've the a get lot as Cboe in been through strong stronger not out to I come me. This credit change, is only last I of have team ranks the

time assist a search of latter considerable a process. year, and in devoted succession throughout leadership the with have engaged Board development last I part firm and board to to XXXX, the more the formally While

the candidates reviewed heat. have are search and also We considering external room's candidates internal with

my help of transition. While our the and the will Upon to successor on Cboe. until continue will remain closely smooth CEO continued to the continue management are as appointed success a team and board I to and a director with is for will drive out transitioning plan I serve greater a strategy the CEO on succession, role putting to execute ensure work I Board. I focus

committed stay on I to focused steadfastly underway exciting We we our have many goals. remain initiatives long-term ensuring and

turn I'll for back that, over to With the call Ken Q&A.

Kenneth Hill

point, we'll take this questions. be Instructions] At [Operator happy to

Operator

question today line comes with Looks the Instructions] Sandler. Piper first [Operator Moley of Patrick like our from

Patrick Moley

revenue the the X to calling does little remarks, last had bit like prepared but little you weaker you touched a XX% -- mid- the years. that now. it guide D&A advantage range high the it on just a to X% on is Jill, that data few revenue to I you you're than seem So mentioned in or single-digit it growth the guided it

could a you the there So us has went bit? decision the maybe talk the outlook just that drivers for is of adjust about to to And growth the incorrect some there? think into parameters little it that softened

Jill Griebenow

Yes. thanks Patrick. for question, the

that So consistent just of our we've ranges. to believe prior standard we've of And but a market moved just reflects with guidance. helpful, that granularity today what clarify, remains want more the historically, be we our more in language we provided great we to deal -- the to in refresh guidance

as ranges I the guidance to very alluded ago at this consistent that remarks, again, year prepared with we my So time. a in provided

Data X% and So net for Vantage. then the think X% that to revenue to X% XX% . for

Operator

And from of the line with our Budish Ben Barclays. next question comes

Unknown Analyst

product smaller wanted Chris going. as into the dig little further kind might dive on options and increase index a to looks This get and they healthy a drive education start days, I of over adoption there. customer? adoption maybe It bit. into And been sounds among the like know it's is Ben. early actually SPX I it's for Robinhood the for uptake but is what like help you what and of the can the that for initiatives the XSP of some contract this like mix look And

David Howson

it's we've point the access We'll bit about And at how view, Robinhood expectations a exceeded It's retail space. access, X we when ways. talk And mentioned look the for Dave pillars. little attacking product. That's Thank our you think X the from and across Absolutely. it's really specifically education question. we in here. it rollout about the before, of

First, and expected, had it's greater we been quicker than we uptake been expected. has second, the than

to stand manner are what's go and pillar we saw to index additive. progress, more or weeks, Legend the index out we education, -- had the particular them second And strategies are be to a to we see of volumes recent in ahead that used So rollout as complex means in been see more being options when we we mobile of device coming Robinhood expectations. Then through of options our our the use. expect the with rolled which estimation, encouraging trades is would the largely spread was options the through toolkit, in a the increased index which today time use that we platform rollout in

then to coming volatility encouraging our product. customers used really that the Thirdly, toolkit. our is of What's been core have

means So That mean options options I that, them rollout. most X usage in also that you have flow that the actually use as to But that about seen what options, [indiscernible] smaller coming we've and all those XSP by asked that the SPX we've of grown And do profile what that? being through the really SPX. positive rollout is progressed. has is seen of products throughout

these audience cash has trader active are products XX-XX the exercise our are certainty that that of of tax treatment and expectation been meant that So tells that the that potential customers benefits potential settlement, really with of And that Robinhood's European target accessing universe. accessing us simplicity resonating of there.

key more marketing, as then with forward, here. of, we see what retail And we platform. brokers as to the have as to we joint roll going out that we that going to joint more the continue education we all so And do are we're on think do more

time there as well, as about well. think we where our as that's growth we international so And spend

Our increased marketing education the boots on ground joint to help force sales testing. and

what accounts for we constructive continue us about nearly runway to million really as for we and XXXX, X% that's XX throughout with XXXX. understand it's think there, continue funded a for be really access solid options outlook setup just penetration the So to the to here,

Operator

next comes our question of And from line Schmitt William with Jeff the Blair.

Jeffrey Schmitt

you some more the the could Could you front generate have customers discuss that revenue? on of initiatives AI help

Unknown Executive

thanks the Jeff, Yes, sure. question. for

to have associates and help with our about platform with we excellence us products talk mentioned as customers see teams platform productivity Center our our been sales think of all of now but any new -- year, all to AI, is working to unified Excellence AI with the as quite the to as that develop AI conversations have internally an productivity. well of insights opportunities the of AI we and teams improve what last we've our As an use we can are having get immediate work revenue create staff to engineering we the our data going platform we with across grow product bit of don't last internally center internally. adopting amongst we're and to out internal as we well functions, a created year, the

So nothing AI Great. we're new . immediate lot can report, that in but then a investing products internally serve customers market to to bring hopefully to

Operator

UBS. line from Kramm of comes with Alex next question our And the

Alex Kramm

so the Just about. bit didn't we topic maybe over. since thinking is year, last Fred you allocation buy should the I since beginning also over taken any or a talk the of noticed obviously but about year the differently M&A little stock in you a you've capital talked back quarter, about then

just why product with in M&A? give could you are buy maybe latest And us your still why enhancing you a, interested the stock. back where then didn't you update So

Jill Griebenow

the decided I shares. can year it remarks, we as strategy important later in we've our the But part be sheet Fred But that to and the we the it appropriate of the market mentioned M&A off it as have. and allocation of process were in repurchases, succession on wasn't I for wasn't be our fact given share you Fred that see us balance before it we think where the that it repurchasing obviously, the to just start in back to relates part with piece. maybe to public, closing share capital his the messaged comment would strong then that planning turn repurchases an over

Again, in the future. that that balance won't mentioned, sheet. very, is. doesn't very strategy be mean part It absolutely strong Like of I it our

XXXX And here. will to allocation framework important again, repurchases capital remain be will We as head into an of continue our opportunistic. share we part

Frederic Tomczyk

that value, growth and back also deliver trends the technology such to that and we it's our scale strategy. an has a part respect I've has to capital at of make I think it But area with and that the return to prioritize M&A up the it has that of to leverage the Or needle. any we And and M&A, move have Cboe. consistent capital strategic look to past, do, will sense I'll a lines secular fit financial it and any if smaller, it Jill. Thanks, which little long-term allocation be in with we within strategically. we is of sure it said make sense profile Jill's point, an what M&A remains important With

Operator

from next Michael question the Morgan comes of Stanley. our Cyprus line with And

Michael Cyprys

and to Just U.S. XXxX. announcement equities a trading question your to move on

could all versus more us Just that hoping and you we on are chose not see Why of time And terms here to have? other you what to the implement hurdles elaborate on that see what you can run to the what here in if broadly, of across just remind contribution this set see might volumes? you you some day. see go opportunity way why the extended bit you XX/X successful, that a you EDGX Maybe frame? to might exchanges

David Howson

the Thanks with we go answer here. team Chris question. talk for this Great. as I'll through

So XXxX Cboe. we that something do at already is

the operations look get infrastructure level our XXxX global and to operate seats. customers we you complex, discussions have at high scaled footprint, our our with over And If we with the at we index those scale look when world. level the demand around on proprietary

the seeing accessing participants. differentiated those being on daylight we're see appeals market market X, the over the you X have some as in on differentiation look of excess increased equities we which those investors. Pacific, X in we retail share for [indiscernible] to demand And Asia market in towards hours investors the available functionality, EDGE U.S. particular, during time of We see when that XX%. to Also Cboe platform, when good

So for up primed extending venue that. much really, hours be very that to set

the of trades tape performed and key the consolidated the the be SEC In approvals regulatory forthcoming for that is will publishing timing, be readiness piece which terms SIP, yet to from and in securities. those

with implement to go estimation as the year, that to our for when came stated, this to We needing of will but the infrastructure next likely expect is out at ready rule we there. filings when this those be us go And year we'll in time. final early ready of to we've be end that -- that be SEC,

global boots we for data day-to-day in we putting equity demand return We our Because the our see data. equities that, to as internationally. on we're through U.S. accessing ground sell go also for do that -- and and

with pass a step to this. that's able I'll XX/X. over be feeder for to on for us some But into to really, and Chris So that, comments great more potentially

Christopher Isaacson

Yes, covered pretty thanks Dave it Michael, for the well. question.

already starting been and retail-heavy all trade see way the while p.m. for of equity of want outside XXxX, world precursor around at data footprint, the As this has XX trading global Dave demand demand exchange. there. we a there is from EDGX, in Usually, X data hearing demand It we a and lot of global that's a.m. to think U.S. a you wanting to fact, our going mentioned, trade we're lot Dave and said, opportunities. them infrastructure, a the They more lot has mentioned, the equity our of really U.S., customer-driven we're driving are covering given X hours data to to markets sales is as long global customers.

consolidated So clearing easy XX infrastructure a to is . ready be day, with hours well. nearly of for be We'll ready the industry relatively would tapes facility extending hours us. or a those XX hours as the the day and the when

really asked that's XX/X. Again, You question. infrastructure readiness about a market think I

to equities the the I getting if now, able substantial we But meet clear demand. require, with tape the that January, and saw is tremendous or can what to changes given to to industry, need work on mention, effect in right we also and demand. big markets. many XXxX-plus XXxX think, get step which events nearly some would or to within even first the Dave U.S. in geopolitical we good meet the And industry out first hours enough industry consolidated we to markets. went XXxX global then derivatives amount Just being said, of trading our a will have our I the trading given on, XXxX in plumbing the there. we in demand, XXxX would a customer would customer weekends trade of to nearly figure we as already

So solutions. just as forward deliver serving to looking we client-driven customers

Operator

our Capital question with Ashish Markets. Sabadra from And RBC next comes

Ashish Sabadra

greater how in going [indiscernible] that influencing about XXXX. of wondering adoption options, just comment options you just for retail we could I if we And on about think then was increases the of as adoption should price think forward? the

David Howson

the for Thanks question.

regular our and is for categories. share the In calibrate changes you complex. basis, the As of according multi-list and look month to venues be often form the on to capture to one X our a options the to at divide would conditions I each really revenue. proprietary and market complex that to broad would optimize retune we objective where our complex, multi-list latest options index the options customer be One into pricing would tune flows, balance the with market

dynamic. an targeted edge as much in participate things more doors pricing to you allow much diverse frequent the to the there, the more When quite over changes those of changes are get such and platform. the to So are to open to look trying participants very range begin index of specific street to the side and less a up

And X that's So categories. I options retail and broad mean is the of strategic for our then focuses. those landscape one pricing on large

of and at of the single index retail the end shorter of look to going stock ETF X the You to options options and last that rise years from and curve. incredible adoption options moving

world of call, as a generally more focusing spoke the and gaining attractive in has to particularly of fundamental I January in in and total 'XX It's retail just DTE of was is education. in the there It's equity we being seen January at interact trading, which in this SPX particular, DTE distribution. where retail, brokers complex, pool X we've those about on earlier global been we've nearly capability. it's to customers you proportion XX% on trading would driven access And And with range the look then the market an It's that the region if tenet participants 'XX, by building about the interestingly, seen, that the say, in out percentages liquidity largest SPX. about retail an increase Asia a and what retail. want Pacific in X to the brokers growth

region. we out our to the but announce hires broadening really continue of pleased coming in space option hires do Asia Market we'll that the with Dugan, make in So as addition of Pacific team I And Megan Intelligence region. the the to in was also

go broadening into derivatives as deepening and base So to XXXX. really customer serve expertise we acutely our more that

Operator

America. question our And comes next from Craig of of Siegenthaler Bank the line with

Unknown Analyst

do This the Cboe's as titanium, And change? from the on their exchange to we read peers know think white as rebrand of been platform of well? this that labeling in some technology team. third-party decision have Elad successful direction? elaborate that materiality How that a Should I to you as what's about Can your technology you Craig's trading is venues. recent step opportunity

Christopher Isaacson

exchanges. have accentuate to other as to There's for equities the your of to us strength. whether in others, plan here plans our not Thanks or Cboe, at technology that sell the Yes. that. around a futures decided order runs that to Yes. it we core brand all as Titanium, To monetize as world. a name about Cboe for question. And platform we is a and here. question strength we a the markets itself of is of Fred Chris no to our and think technology it service reach needs and mentioned current a software

to to derivatives our our Titanium as Vantage just are markets the operate Cebo plans Our all around Data and continue invest world. business, in it business we drives the

just powers plans drives So it the as to around world. commercialize plan in to today, very specifically continue it business invest heavily to our no

Operator

line Lau Oppenheimer. with Owen comes the And from our question next of

Kwun Sum Lau

new you have so the far? you search, succession So of impact of CEO, for the characteristic could the will plan strategy this put now, the out talk please surge? the timing why how of the And about search

Frederic Tomczyk

Well, had When me stabilize the Okay. then X development to strategic organization focus Hawaii stepped to that leadership succession. objectives with let the I work on I job, earlier the into and X now. the start mentioned sharpen and I or

is strategic management balance has I've which stabilized. done shape. sharpened. executing the situation I've If you -- been that CEO, we been what strong team, look what back since focused a on now And great the [indiscernible] team in Strategy has is the the sheet taken been focus is at -- has The over strategy. as

a completed a and that right all longer or the the and time was development organization get for whole the obviously leadership and period part with to succession I over more for reasons last So variety stability Board on of the and of felt our this was move time. that

does here. With each what of respect qualities and mean not get to what a strong I they're very into a they're we one have but repeat, the why, for characteristics Board the we're for very have list to would in looking I'm going of on they're clear CEO, those, looking for. team I looking and

set reasoning. I the my of an do and out that's from time view, And for go when unusual the point completed I to situation, now it's back role I've to to me what into the the in So logic and really Board. stepped basically,

Operator

next Goldman question our with comes from Sachs. Alex the of And line Blostein

Unknown Analyst

the given trends for customer Anthony you maybe here? that I've SPX throughout on the Alex. is terms on are growth contribution volume expect the the it in the of from be maybe reaccelerate seeing just you What can This missed And call, traction? earlier on would but year, to franchise. Maybe X from from HOD early

David Howson

much. very Thanks

and briefly which worth just was think it's great the Robinhood, the that additive to setup estimate marketing the partner I rollout around was detailed, earlier largely there. for year referring it's and we better of than to rest volume on continue to we as expected, -- answer expected, that results there quicker say a is has and education the the probably but the reasonably than you

of funded about million them positive frame they're we a that. and options, there's So accounts excited about a the up. Think about understand really training great -- set really almost around XX X% runway it, setup as only with

coming you great large the start the on complex, broadly to at been year Well, it's volatility at the talk a it look SPX when own. into its

saw through the risk, would our on tariffs saw for inflation that highest January as the SPX for trading Also, uncertainty, a SPX expectations, and likely to webstore in for January. of coming headlines demand with average year we And on rest lot record market fiscal what we than we what second hedges the record of record month then for see see gravitation higher XXXX continued global outlook, resetting Fed out. options, by in options the expect SPX is get uncertainty that. increased towards a throughout rolled as for with You the

risk So for Chris XXxX eloquently encouraged opportunity to be dynamic that and using really options our about by those the -- at nimble support customers spoke to and that. and manage capabilities take I'm

potential tail a product exist risk than toolkit to VIX the the think also on together, the fix we that we talk XXXX. options in or the in Then into that, the January, market. need great other, record for the and average is not daily for hedge daily contracts options, one volatility And XXX,XXX higher and basis saw basis utility just provide in moves which about the XX%

trends, 'XX own. So and When with trend. when you coming trading into take combining great with XX% in take secular January at 'XX actually account, the DTE January and long-term we growth nearly X into we into that account really its a together, see SPX between growth cyclical the of a volatility setup toolkit

marketing, with really setup education, in access can the in excited funds not trade So encouraging yet retail confident into derivative hiring, indirect to then be really coming and flows really coming to income excited that products direct international got fund. options the sophistication, quite may broadening through that is options-based ETFs and access access increase customers through to us and leaning where the you've options directly of about about

together, So 'XX. also utility a to great the really customer of falling is it wide see volumes really we home then I coming spectrum set a there. talking a as said, toolkit volatility up really very neatly types as bring And providing to just product for encouraging

Operator

final our line Fannon of today with And question comes the Dan from Jefferies.

Daniel Fannon

clarify to of the Just comments. couple a guidance

and talked us you about And consistent XXXX saying in understand actual this kind that understand range. the below-the-line items, tell things just guess, interest Vantage, can rate. the versus was one, Data booked new for just that that on guided were segment still some in 'XX the expecting we the to or so you're then that's old year, of is the what markups to I that you run dividends you or to way you that the So clarify, other go of . the forward

Jill Griebenow

start I'll question. Data the Sure. with Vantage

very, from answer former have to we been there, numerical a Again, So approach. in your granular the just question with very correct. guidance perspective past our

high So single digits. ago time standards to the though at below again, And exactly a we this year line mid- kind of it just XX% moved where that this range. looking Think market were further to then of in X% to at item.

provide clarity I more on that. we'll think

of be it and February, Our have we'll portion XX, February dividends it. somewhere the Form investments We minority do there. from say, will and in then that items. below-the-line XX-K there though, of more make portion see issued will comprise one later I components on investments up are granularity the another

compared you So do had minority the what the bit see it from investment a drop income previously. been to

that of relates X technologies much via So investments minority funds. trading rich to in our

method it's XXXX, we that accounting. So investment Three that ago, under equity investment made in when minority typical. years

years a later, though, you're income up. tick other that from You that's take to off quarterly variety time, cycle is starts investment a see market why continues to dividend mature, P&L are taper upon factors. marks to that which and The that over pickup, starting X based of we investments, bit. where But

provided So in the in again, more be XX-K. granularity February later will form of that

Operator

all the appears And to we be have. questions that

for now turn to will I management back So closing the remarks. over call

Frederic Tomczyk

a We'll for today, in Thank and you XXXX. you I joining wish everyone April. see us great .

Operator

ladies and now gentlemen, may you And Have you a call. disconnect. everyone. day, Again, for thank you. that today's and joining, concludes great Thank

Cboe Global Markets (CBOE) 7 Feb 252024 Q4 Earnings call transcript