Cboe Global Markets Q4 2024: Contradictions Unveiled in Revenue Guidance, M&A Strategy, and International Plans

These are the key contradictions discussed in Cboe Global Markets' latest 2024Q4 earnings call, specifically including: Data Vantage revenue guidance expectations, strategic focus on M&A versus organic growth, and international expansion plans:



Record Revenue and Earnings Growth:
- Cboe Global Markets reported net revenue of $524.5 million for Q4 2024, an increase of 5% year-over-year.
- Adjusted diluted earnings per share rose 2% to $2.10. This growth was driven by solid volumes across derivatives business, cash and spot markets, and the Data Vantage business.

Derivatives Market Performance:
- The derivatives business delivered an organic net revenue increase of 8% in 2024, with total volume across exchanges reaching 3.8 billion contracts traded, marking another record year.
- The growth was driven by record volume in SPX and VIX options, reflecting increased demand for risk management tools in uncertain market conditions.

Cash and Spot Markets Growth:
- Cash and spot market net revenue increased by 10% in 2024, driven by healthy trading volumes and growth across regional equities markets.
- This performance was attributed to improved market share and capture rates, as well as geographic expansion and innovation in market offerings.

Data Vantage Segment Expansion:
- The Data Vantage business experienced a 7% increase in organic net revenue in 2024, supported by technology investments and geographic expansion.
- The growth was driven by new product development and leveraging the company's global footprint to expand access and insights for clients.