Cboe Posts Mixed Q4 Results, Guides Higher for 2024 on Derivatives and Data Strength
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Cboe Global Markets misses on Q4 2023 earnings expectations, reporting $2 EPS vs expectations of $2.02 EPS. Cboe is focused on sharpening strategic focus, allocating capital effectively, and developing management talent.
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Cboe aims to leverage secular trends like market globalization, rise of retail investors, and technology/data advancements. Strengths include global footprint, technology, and product innovation.
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Record trading volumes drove 18% organic growth in Cboe's Derivatives business. Data and Access Solutions grew 7% organically. Equities markets faced headwinds but provide foundation for derivatives growth.
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In options, index products and proprietary products like SPX drove growth. SPX ADV grew 31% in 2023, aided by 60% growth in 0DTE trading. Data and Access Solutions grew 9% in 2023.
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For 2024, Cboe guides to 5-7% organic revenue growth and 7-10% Data and Access revenue growth, showing confidence in durable options market growth. Expenses projected to grow slower at 5-8% to provide margin stability.