Cboe Raises Revenue Guidance as Index Options Drive Record Quarter
Net revenue reached a record $731.6 million in the second quarter, a 25% increase from the prior year.
Derivatives activity drove a record second quarter for Cboe Global Markets (CBOE), the exchange operator specializing in volatility and index products. Net revenue rose 25% year-over-year to $731.6 million.
Derivatives net revenue grew 30% year-over-year, supported by record index options volumes. Total options average daily volume increased 26% year-over-year, with index options ADV rising 32% and multi-listed options ADV increasing 24%. Revenue per contract rose 6% year-over-year, aided by a 3% increase in index options RPC and a product mix shift toward index options.
Other segments also saw growth, as Cash and Spot Markets net revenue rose 22% year-over-year. Data Vantage net revenue increased 15% year-over-year. Global FX net revenue rose 17% year-over-year, while the net capture rate per one million dollars traded increased 6% to $2.96 from $2.81 in the prior-year period.
Equity market share faced headwinds. U.S. Equities exchange market share declined to 9.4% from 10.5% in the second quarter of 2024, while off-exchange market share rose to 18.8% from 14.9%. European Equities market share decreased to 24.4% from 25.1%.
Operating margin expanded 7.4 percentage points to 65.1% from 57.7% year-over-year. Adjusted operating expenses rose 2% to $216.7 million, due to higher travel, promotional expenses, and accrued bonuses.
Capital returns included the repurchase of approximately 127 thousand shares for $32.6 million during the quarter.
Cboe raised its 2024 organic total net revenue growth target to "mid to high teens" from a previous range of "low double-digit to mid teens". The company also increased its 2024 Data Vantage organic net revenue growth target to "low teens".
Capital expenditures guidance for 2024 was increased to a range of $98 million to $108 million from the previous estimate of $73 million to $83 million.