Intercontinental Exchange (NYSE: ICE):
- Record 2Q24 net revenues of $2.3 billion, +23% y/y
- 2Q24 GAAP diluted earnings per share (EPS) of $1.10, down
23% y/y
- 2Q24 adj. diluted EPS of $1.52, +6% y/y
- Record 2Q24 operating income of $1.1 billion, +12% y/y;
record adj. operating income of $1.4 billion, +21% y/y
- 2Q24 operating margin of 46%; adj. operating margin of
59%
Jeffrey C. Sprecher,ICE Chair & Chief Executive Officer,
said,"We are pleased to report our second quarter results that
extend our track record of growth. Our customers continue to access
our networks to manage risk, consume our mission-critical data and
drive workflow efficiencies across asset classes and through an
array of macroeconomic environments. As we look to the second half
of the year and beyond, we will continue to leverage our data,
technology and network expertise to deliver innovative solutions
for our customers and drive growth for our stockholders."
Intercontinental Exchange (NYSE: ICE), a leading global provider
of technology and data, today reported financial results for the
second quarter of 2024. For the quarter ended June 30, 2024,
consolidated net income attributable to ICE was $632 million on
$2.3 billion of consolidated revenues, less transaction-based
expenses. Second quarter GAAP diluted EPS were $1.10. Adjusted net
income attributable to ICE was $876 million in the second quarter
and adjusted diluted EPS were $1.52. Please refer to the
reconciliation of non-GAAP financial measures included in this
press release for more information on our adjusted operating
expenses, adjusted operating income, adjusted operating margin,
adjusted net income, adjusted diluted EPS and adjusted free cash
flow.
Warren Gardiner, ICE Chief Financial Officer, added: "Through
the first half of 2024, we have generated record revenues and
record operating income, while also continuing to make progress
towards achieving the leverage and synergy targets related to our
2023 acquisition of Black Knight. As we turn to the second half, we
expect to continue to invest in opportunities to drive future
growth and to create value for our stockholders."
Second Quarter 2024 Business Highlights
Second quarter consolidated net revenues were $2.3 billion
including exchange net revenues of $1.2 billion, fixed income and
data services revenues of $565 million and mortgage technology
revenues of $506 million. Consolidated operating expenses were $1.3
billion for the second quarter of 2024. On an adjusted basis,
consolidated operating expenses were $947 million. Consolidated
operating income for the second quarter was $1.1 billion, and the
operating margin was 46%. On an adjusted basis, consolidated
operating income for the second quarter was $1.4 billion, and the
adjusted operating margin was 59%.
$ (in millions)
Net Revenues
Op Margin
Adj Op Margin
2Q24
Exchanges
$1,246
71%
75%
Fixed Income and Data Services
$565
37%
45%
Mortgage Technology
$506
(6)%
36%
Consolidated
$2,317
46%
59%
2Q24
2Q23
% Chg
Recurring Revenues
$1,206
$955
26%
Transaction Revenues, net
$1,111
$933
19%
Exchanges Segment Results
Second quarter exchange net revenues were $1.2 billion. Exchange
operating expenses were $356 million and on an adjusted basis, were
$311 million in the second quarter. Segment operating income for
the second quarter was $890 million, and the operating margin was
71%. On an adjusted basis, operating income was $935 million, and
the adjusted operating margin was 75%.
$ (in millions)
2Q24
2Q23
% Chg
Const Curr(1)
Revenues, net:
Energy
$469
$355
32%
33%
Ags and Metals
71
77
(8)%
(8)%
Financials(2)
132
104
26%
26%
Cash Equities and Equity Options, net
111
96
16%
16%
OTC and Other(3)
101
104
(3)%
(3)%
Data and Connectivity Services
240
231
4%
4%
Listings
122
126
(3)%
(3)%
Segment Revenues
$1,246
$1,093
14%
14%
Recurring Revenues
$362
$357
1%
1%
Transaction Revenues, net
$884
$736
20%
20%
(1) Net revenues in constant currency are
calculated holding both the pound sterling and euro at the average
exchange rate from 2Q23, 1.2522 and 1.0893, respectively.
(2) Financials include interest rates and
other financial futures and options.
(3) OTC & other includes net interest
income and fees on certain clearing margin deposits, regulatory
penalties and fines, fees for use of our facilities, regulatory
fees charged to member organizations of our U.S. securities
exchanges, designated market maker service fees, exchange member
fees, and agriculture grading and certification fees.
Fixed Income and Data Services Segment Results
Second quarter fixed income and data services revenues were $565
million. Fixed income and data services operating expenses were
$357 million, and adjusted operating expenses were $311 million in
the second quarter. Segment operating income for the second quarter
was $208 million, and the operating margin was 37%. On an adjusted
basis, operating income was $254 million, and the adjusted
operating margin was 45%.
$ (in millions)
2Q24
2Q23
% Chg
Const Curr(1)
Revenues:
Fixed Income Execution
$30
$28
3%
3%
CDS Clearing
78
84
(6)%
(6)%
Fixed Income Data and Analytics
293
277
6%
6%
Other Data and Network Services
164
157
5%
5%
Segment Revenues
$565
$546
4%
4%
Recurring Revenues
$457
$434
5%
5%
Transaction Revenues
$108
$112
(4)%
(4)%
(1) Net revenues in constant currency are
calculated holding both the pound sterling and euro at the average
exchange rate from 2Q23, 1.2522 and 1.0893, respectively.
Mortgage Technology Segment Results
Second quarter mortgage technology revenues were $506 million.
Mortgage technology operating expenses were $538 million, and
adjusted operating expenses were $325 million in the second
quarter. Segment operating loss for the second quarter was $32
million, and the operating margin was (6)%. On an adjusted basis,
operating income was $181 million, and the adjusted operating
margin was 36%.
$ (in millions)
2Q24
2Q23
% Chg
Revenues:
Origination Technology
$180
$178
1%
Closing Solutions
52
47
9%
Servicing Software
212
—
n/a
Data and Analytics
62
24
165%
Segment Revenues
$506
$249
103%
Recurring Revenues
$387
$164
137%
Transaction Revenues
$119
$85
39%
Other Matters
- Operating cash flow through the second quarter of 2024 was $2.2
billion and adjusted free cash flow was $1.8 billion.
- Unrestricted cash was $885 million and outstanding debt was
$21.8 billion as of June 30, 2024.
- Through the second quarter of 2024, ICE paid $519 million in
dividends.
Updated Financial Guidance
- ICE's full year 2024 GAAP operating expenses are expected to be
in a range of $4.90 billion to $4.93 billion. Adjusted operating
expenses(1) are expected to be in a range of $3.79 billion to $3.82
billion.
- ICE's third quarter 2024 GAAP operating expenses are expected
to be in a range of $1.22 billion to $1.23 billion. Adjusted
operating expenses(1) are expected to be in a range of $955 million
to $965 million.
- ICE's third quarter 2024 GAAP non-operating expense(2) is
expected to be in the range of $200 million to $205 million.
Adjusted non-operating expense is expected to be in the range of
$190 million to $195 million.
- ICE's diluted share count for the third quarter is expected to
be in the range of 573 million to 579 million weighted average
shares outstanding.
(1) Full year and 3Q 2024 non-GAAP
operating expenses exclude amortization of acquisition-related
intangibles, duplicate rent expenses, valid claims made following
an equity trading issue at NYSE, and Black Knight integration
costs.
(2) Non-operating expense includes
interest income, interest expense and net other income/expense.
Non-GAAP non-operating expense excludes equity
earnings/losses from unconsolidated investees.
Earnings Conference Call Information
ICE will hold a conference call today, August 1, 2024, at 8:30
a.m. ET to review its second quarter 2024 financial results. A live
audio webcast of the earnings call will be available on the
company's website at www.ice.com in the investor relations section.
Participants may also listen via telephone by dialing 833-470-1428
from the United States or 929-526-1599 from outside of the United
States. Telephone participants are required to provide the
participant entry number 916348 and are recommended to call 10
minutes prior to the start of the call. The call will be
archived on the company's website for replay.
The conference call for the third quarter 2024 earnings has been
scheduled for October 31st, 2024 at 8:30 a.m. ET. Please refer to
the Investor Relations website at www.ir.theice.com for additional
information.
Historical futures, options and cash ADV, rate per contract,
open interest data and CDS cleared information can be found at:
https://ir.theice.com/investor-resources/supplemental-information/default.aspx
Consolidated Statements of
Income
(In millions, except per share
amounts)
(Unaudited)
Six Months Ended June
30,
Three Months Ended June
30,
Revenues:
2024
2023
2024
2023
Exchanges
$
3,560
$
3,214
$
1,826
$
1,541
Fixed income and data services
1,133
1,109
565
546
Mortgage technology
1,005
485
506
249
Total revenues
5,698
4,808
2,897
2,336
Transaction-based expenses:
Section 31 fees
205
175
138
56
Cash liquidity payments, routing and
clearing
886
849
442
392
Total revenues, less transaction-based
expenses
4,607
3,784
2,317
1,888
Operating expenses:
Compensation and benefits
935
703
473
351
Professional services
74
57
38
29
Acquisition-related transaction and
integration costs
51
46
15
25
Technology and communication
419
345
214
173
Rent and occupancy
59
45
30
25
Selling, general and administrative
178
137
100
63
Depreciation and amortization
762
527
381
267
Total operating expenses
2,478
1,860
1,251
933
Operating income
2,129
1,924
1,066
955
Other income/(expense):
Interest income
66
193
36
102
Interest expense
(474
)
(351
)
(233
)
(175
)
Other income/(expense), net
104
(70
)
(8
)
(35
)
Total other income/(expense), net
(304
)
(228
)
(205
)
(108
)
Income before income tax expense
1,825
1,696
861
847
Income tax expense
403
207
222
32
Net income
$
1,422
$
1,489
$
639
$
815
Net income attributable to non-controlling
interest
(23
)
(35
)
(7
)
(16
)
Net income attributable to
Intercontinental Exchange, Inc.
$
1,399
$
1,454
$
632
$
799
Earnings per share attributable to
Intercontinental Exchange, Inc. common stockholders:
Basic
$
2.44
$
2.60
$
1.10
$
1.43
Diluted
$
2.43
$
2.59
$
1.10
$
1.42
Weighted average common shares
outstanding:
Basic
573
560
573
560
Diluted
575
561
575
561
Consolidated Balance
Sheets
(In millions)
As of
June 30, 2024
As of
(Unaudited)
December 31, 2023
Assets:
Current assets:
Cash and cash equivalents
$
885
$
899
Short-term restricted cash and cash
equivalents
1,252
531
Short-term restricted investments
500
680
Cash and cash equivalent margin deposits
and guaranty funds
80,129
78,980
Invested deposits, delivery contracts
receivable and unsettled variation margin
2,000
1,814
Customer accounts receivable, net
1,548
1,366
Prepaid expenses and other current
assets
677
703
Total current assets
86,991
84,973
Property and equipment, net
1,992
1,923
Other non-current assets:
Goodwill
30,553
30,553
Other intangible assets, net
16,805
17,317
Long-term restricted cash and cash
equivalents
370
340
Other non-current assets
971
978
Total other non-current assets
48,699
49,188
Total assets
$
137,682
$
136,084
Liabilities and Equity:
Current liabilities:
Accounts payable and accrued
liabilities
$
1,008
$
1,003
Section 31 fees payable
203
79
Accrued salaries and benefits
263
459
Deferred revenue
497
200
Short-term debt
3,234
1,954
Margin deposits and guaranty funds
80,129
78,980
Invested deposits, delivery contracts
payable and unsettled variation margin
2,000
1,814
Other current liabilities
130
137
Total current liabilities
87,464
84,626
Non-current liabilities:
Non-current deferred tax liability,
net
3,950
4,080
Long-term debt
18,573
20,659
Accrued employee benefits
179
193
Non-current operating lease liability
323
299
Other non-current liabilities
449
441
Total non-current liabilities
23,474
25,672
Total liabilities
110,938
110,298
Equity:
Intercontinental Exchange, Inc.
stockholders’ equity:
Common stock
7
6
Treasury stock, at cost
(6,377
)
(6,304
)
Additional paid-in capital
16,130
15,953
Retained earnings
17,236
16,356
Accumulated other comprehensive loss
(309
)
(294
)
Total Intercontinental Exchange, Inc.
stockholders’ equity
26,687
25,717
Non-controlling interest in consolidated
subsidiaries
57
69
Total equity
26,744
25,786
Total liabilities and equity
$
137,682
$
136,084
Non-GAAP Financial Measures and Reconciliation
We use non-GAAP measures internally to evaluate our performance
and in making financial and operational decisions. When viewed in
conjunction with our GAAP results and the accompanying
reconciliation, we believe that our presentation of these measures
provides investors with greater transparency and a greater
understanding of factors affecting our financial condition and
results of operations than GAAP measures alone. In addition, we
believe the presentation of these measures is useful to investors
for period-to-period comparison of results because the items
described below as adjustments to GAAP are not reflective of our
core business performance. These financial measures are not in
accordance with, or an alternative to, GAAP financial measures and
may be different from non-GAAP measures used by other companies. We
use these adjusted results because we believe they more clearly
highlight trends in our business that may not otherwise be apparent
when relying solely on GAAP financial measures, since these
measures eliminate from our results specific financial items that
have less bearing on our core operating performance. We strongly
recommend that investors review the GAAP financial measures and
additional non-GAAP information included in our Quarterly Report on
Form 10-Q, including our consolidated financial statements and the
notes thereto.
Adjusted operating expenses, adjusted operating income, adjusted
operating margin, adjusted net income attributable to ICE common
stockholders, adjusted diluted earnings per share and adjusted free
cash flow for the periods presented below are calculated by adding
or subtracting the adjustments described below, which are not
reflective of our cash operations and core business performance,
and their related income tax effect and other tax adjustments (in
millions, except for per share amounts):
Adjusted Operating Income,
Operating Margin and Operating Expense Reconciliation
(In millions)
(Unaudited)
Exchanges Segment
Fixed Income and Data Services
Segment
Mortgage Technology
Segment
Consolidated
Six Months Ended June
30,
Six Months Ended June
30,
Six Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
2024
2023
2024
2023
Total revenues, less transaction-based
expenses
$2,469
$2,190
$1,133
$1,109
$1,005
$485
$4,607
$3,784
Operating expenses
682
631
711
699
1,085
530
2,478
1,860
Less: Amortization of acquisition-related
intangibles
34
33
77
85
395
183
506
301
Less: Transaction and integration
costs
—
—
—
—
51
46
51
46
Less: Regulatory matter
—
11
—
—
—
—
—
11
Less: Other
30
6
14
—
—
—
44
6
Adjusted operating expenses
$618
$581
$620
$614
$639
$301
$1,877
$1,496
Operating income/(loss)
$1,787
$1,559
$422
$410
$(80)
$(45)
$2,129
$1,924
Adjusted operating income
$1,851
$1,609
$513
$495
$366
$184
$2,730
$2,288
Operating margin
72%
71%
37%
37%
(8)%
(9)%
46%
51%
Adjusted operating margin
75%
73%
45%
45%
36%
38%
59%
60%
Adjusted Operating Income,
Operating Margin and Operating Expense Reconciliation
(In millions)
(Unaudited)
Exchanges Segment
Fixed Income and Data Services
Segment
Mortgage Technology
Segment
Consolidated
Three Months Ended June
30,
Three Months Ended June
30,
Three Months Ended June
30,
Three Months Ended June
30,
2024
2023
2024
2023
2024
2023
2024
2023
Total revenues, less transaction-based
expenses
$1,246
$1,093
$565
$546
$506
$249
$2,317
$1,888
Operating expenses
356
311
357
356
538
266
1,251
933
Less: Amortization of acquisition-related
intangibles
15
17
39
43
198
91
252
151
Less: Transaction and integration
costs
—
—
—
—
15
25
15
25
Less: Regulatory matter
—
1
—
—
—
—
—
1
Less: Other
30
—
7
—
—
—
37
—
Adjusted operating expenses
$311
$293
$311
$313
$325
$150
$947
$756
Operating income/(loss)
$890
$782
$208
$190
$(32)
$(17)
$1,066
$955
Adjusted operating income
$935
$800
$254
$233
$181
$99
$1,370
$1,132
Operating margin
71%
72%
37%
35%
(6)%
(7)%
46%
51%
Adjusted operating margin
75%
73%
45%
43%
36%
40%
59%
60%
Adjusted Net Income
Attributable to ICE and Diluted EPS
(In millions)
(Unaudited)
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Net income attributable to ICE
$
1,399
$
1,454
Add: Amortization of acquisition-related
intangibles
506
301
Add: Transaction and integration costs
51
46
(Less)/Add: Litigation and regulatory
matters
(160
)
11
Add: Net losses from unconsolidated
investees
45
65
Add: Fair value adjustment of equity
investments
3
—
Less: Net interest income on
pre-acquisition-related debt
—
(12
)
Add: Other
44
6
Less: Income tax effect for the above
items
(125
)
(112
)
Less: Deferred tax adjustments on
acquisition-related intangibles
(35
)
(85
)
Less: Other tax adjustments
—
(81
)
Adjusted net income attributable to ICE
common stockholders
$
1,728
$
1,593
Diluted earnings per share attributable to
ICE common stockholders
$
2.43
$
2.59
Adjusted diluted earnings per share
attributable to ICE common stockholders
$
3.00
$
2.84
Diluted weighted average common shares
outstanding
575
561
Adjusted Net Income
Attributable to ICE and Diluted EPS
(In millions)
(Unaudited)
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Net income attributable to ICE
$
632
$
799
Add: Amortization of acquisition-related
intangibles
252
151
Add: Transaction and integration costs
15
25
Add: Regulatory matter
—
1
Add: Net losses from unconsolidated
investees
3
30
Less: Net interest income on
pre-acquisition-related debt
—
(6
)
Add: Other
37
—
Less: Income tax effect for the above
items
(79
)
(55
)
Add/(Less): Deferred tax adjustments on
acquisition-related intangibles
16
(86
)
Less: Other tax adjustments
—
(57
)
Adjusted net income attributable to ICE
common stockholders
$
876
$
802
Diluted earnings per share attributable to
ICE common stockholders
$
1.10
$
1.42
Adjusted diluted earnings per share
attributable to ICE common stockholders
$
1.52
$
1.43
Diluted weighted average common shares
outstanding
575
561
Adjusted Free Cash Flow
Calculation
(In millions)
(Unaudited)
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Net cash provided by operating
activities
$
2,205
$
1,805
Less: Capital expenditures
(133
)
(61
)
Less: Capitalized software development
costs
(177
)
(142
)
Free cash flow
1,895
1,602
(Less)/Add: Section 31 fees, net
(124
)
50
Adjusted free cash flow
$
1,771
$
1,652
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500
company that designs, builds and operates digital networks that
connect people to opportunity. We provide financial technology and
data services across major asset classes helping our customers
access mission-critical workflow tools that increase transparency
and efficiency. ICE’s futures, equity, and options exchanges –
including the New York Stock Exchange – and clearing houses help
people invest, raise capital and manage risk. We offer some of the
world’s largest markets to trade and clear energy and environmental
products. Our fixed income, data services and execution
capabilities provide information, analytics and platforms that help
our customers streamline processes and capitalize on opportunities.
At ICE Mortgage Technology, we are transforming U.S. housing
finance, from initial consumer engagement through loan production,
closing, registration and the long-term servicing relationship.
Together, ICE transforms, streamlines and automates industries to
connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located at
http://www.intercontinentalexchange.com/terms-of-use. Key
Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation
can be accessed on the relevant exchange website under the heading
“Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 - Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in
Intercontinental Exchange, Inc.’s Annual Report on Form 10-K for
the year ended December 31, 2023, as filed with the SEC on February
8, 2024. We caution you not to place undue reliance on these
forward-looking statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and we
undertake no obligation to update any forward-looking statement or
statements to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of an
unanticipated event. New factors emerge from time to time, and it
is not possible for management to predict all factors that may
affect our business and prospects. Further, management cannot
assess the impact of each factor on the business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements.
SOURCE: Intercontinental Exchange
ICE-CORP
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801266409/en/
ICE Investor Relations Contact: Katia Gonzalez +1 678 981 3882
katia.gonzalez@ice.com
investors@ice.com
ICE Media Contact: Damon Leavell +1 212 323 8587
damon.leavell@ice.com
media@ice.com
Intercontinental Exchange (NYSE:ICE)
過去 株価チャート
から 7 2024 まで 8 2024
Intercontinental Exchange (NYSE:ICE)
過去 株価チャート
から 8 2023 まで 8 2024
