Cboe Global Markets Inc at Piper Sandler Global Exchange and Trading Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Yeah, a lot of them. So kicking it off, on the most recent earnings call, you sounded pretty confident about the 5% to 7% revenue growth target this year guided to the upper end of that range. Could you maybe just give us an update on the business overall, how you're feeling going into the second half and how you think about the potential catalysts in the second half of the year that are going to help get you to that number?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And you mentioned 0DTE. We've seen, like you said, some seasonal pullback in the SPX complex. What are you seeing in terms of engagement from what you can tell across institutional and retail investors? Has it been generally the same, or has there been any sort of mix shift there?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And Fred, you took over in the third quarter last year. One of the things you spoke about when we took over was kind of refocusing. You're in the midst of a strategic review. I think, on the last call, you said that this summer was when you're planning to meet with the Board. Can you just update us on where you are in that process? And are there any kind of takeaways you can even give the audience from that process?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And maybe -- you mentioned the margin stabilizing. Maybe, Jill, you could just elaborate on that and talk about how you view margin expansion from here and the pace of that, how you sort of balance that with the revenue growth opportunity and expense base.

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And Fred, you spoke about some of the international businesses in your remarks there. How do you think about the opportunity for Cboe outside of the US? Having looked at these businesses, where do you see the most opportunity for the next leg of international growth? How are you thinking about that?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And maybe just unpacking the European derivatives business, what have you seen so far? And what's kind of state of the union of that business have been seeing a big pickup in volumes? What have we learned?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Shifting gears, data and access solutions, you guided to 7% to 10% growth in revenues this year. Can you speak to the line of sight that you have in those revenues? And what have you seen in terms of new customers versus sort of deeper penetration of wallet share among existing customers? What have you seen there?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : And do you still feel like you have a decent opportunity in the ability to take price with a lot of those products or how do you think about that across geographies?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : On the product development front, whether it's derivatives or data, are there any specific areas or products that have you most excited for the future.

Question: Patrick Moley - Piper Sandler & Co. - Analyst : I wanted to ask about Robinhood. We're meeting with them next. They've said that they are going to launch index options. It was going to be in the middle of the year. It sounds like it's gotten pushed out further now. How do you think about the opportunity there? I know we've spoken on it before, but is there any update on how you're thinking about that? And are you in these conversations knowing like what's causing them to push this product launch out?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Maybe a question for Jill on capital allocation. Cboe has historically increased its dividend sometime around the third quarter. Last year, you increased it by double digits. How are you thinking about the dividend heading into the third quarter? And how do you think about just the pros and cons overall of buybacks versus dividend increases?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : Yeah, definitely. Another thing, Fred, that you've spoken about when you took over was succession planning. I don't know if there's any update there, anything you'd be willing to share about how you're feeling in the role. We're coming up on a year now, anything you can share now? Almost a year -- I guess it's September, so it's not quite -- but you're almost at a year. Any thoughts there?

Question: Patrick Moley - Piper Sandler & Co. - Analyst : All right. I think that's a good place to end on. Thank you, guys, so much for joining us.