Cboe's Q1 2025 Earnings Call: Contradictions in Retail Engagement, Index Options, and Growth Strategy

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Revenue and Earnings Growth:
- Cboe Global Markets reported record net revenue of $565 million for Q1 2025, up 13% year-over-year, with adjusted diluted earnings per share increasing by 16% to $2.50.
- The growth was driven by strong volumes across its derivatives franchise, cash and spot markets, and Data Vantage business, along with disciplined expense management.

Derivatives Franchise Performance:
- The company's derivatives business delivered a record quarter with organic net revenue increasing by 16% year-over-year to $309 million.
- This was attributed to strong index option product volumes, particularly SPX and VIX options, which increased by 30% and 33% year-over-year, respectively, and solid performance in multi-list products.

Data Vantage Expansion:
- Cboe's Data Vantage net revenue grew over 8% in the first quarter, with new recurring annual contract value (ACV) increasing by 47% year-over-year.
- This growth was supported by increased demand from international markets, particularly in the Asia Pacific region, and efforts to improve access to U.S. and European markets.

Global Market Access and Growth:
- The company saw record volumes and activity in its global markets, processing over 1 trillion orders and market data events across 27 markets, with strong international demand for its data and access solutions.
- This trend was attributed to the strategic focus on expanding global presence, increasing recurring revenue opportunities, and leveraging the U.S. capital market demand in international regions.