Cboe Global Markets Inc Q4 2024 Earnings Call Transcript

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

Question: Patrick Moley - Piper Sandler & Co - Analyst : o I just had one on the D&A revenue guide or data advantage that you're calling it now. Jill, you mentioned it -- you touched on it a little bit in the prepared remarks, but it does seem like the mid- to high single-digit revenue growth range is a little weaker than the 7% to 10% that you guided to the last few years. So could you just maybe talk about some of the drivers that went into the decision to adjust the parameters there? And is it incorrect for us to think that the growth outlook there has softened a little bit?

Question: Jeff Schmitt - William Blair & Company, L.L.C. - Analyst : ould you discuss some of the initiatives you have on the AI front that could help customers generate more revenue? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 07, 2025 / 1:30PM, CBOE.Z - Q4 2024 Cboe Global Markets Inc Earnings Call Unidentified Company Representative es, sure. Jeff, thanks for the question. As we mentioned last year, we created an AI center of excellence internally last year, and we've been adopting AI quite a bit internally to improve productivity -- that AI Center of Excellence of create an internal platform we think is going to help us develop new products as well as grow productivity amongst our engineering staff and across all the functions, the associates we have don't have any immediate revenue opportunities to talk about with the use of AI, but we are working with the platform now to work with our sales teams and our product teams to see what insights we can get out of all the conversations we're having with our customers as well as our unified data platform internally. So nothing immediate to report, but we're investing a lot internally in AI to then hopefully bring new products to market that can serve customers.

Question: Alexander Kramm - UBS Investment Bank - Analyst : ust maybe since the beginning of the year, capital allocation is a topic we should talk about. I noticed you didn't buy back any stock in the quarter, but then Fred you also talked about obviously thinking about M&A a little bit differently over the last year or so since you've taken over. So maybe you could just give us your latest update why a, why you didn't buy back stock. And then where are you still interested in enhancing the product with M&A?

Question: Michael Cyprys - Morgan Stanley & Co LLC. - Analyst : ust a question on US equities trading and your announcement to move to 24x5. Just hoping you could elaborate a bit on the opportunity set that you see here if successful, what might we see in terms of contribution to volumes? Maybe you can remind us what you see across extended day. And just more broadly, what are some of the hurdles here that you might see to implement time frame? Why not go to 24/7 all the way and why you chose to run this on EDGX versus other exchanges that you have?

Question: Ashish Sabadra - RBC Capital Markets - Analyst : was just wondering if you could comment on the price increases for options in 2025. And then just as we think about the adoption of greater retail adoption of options, how should we think about that influencing (technical difficulty) going forward?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : o for the succession plan of search, could you please talk about the characteristic of the new CEO, why now, the timing of the surge? And how will this search impact the strategy you have put out so far?

Question: Dan Fannon - Jefferies Financial Group Inc. - Analyst : ust to clarify a couple of the guidance comments. So for the new segment Data Vantage, just to clarify, you're saying the old way that you guided to or talked about 2024 is still consistent in that range. And then on the below-the-line items, can you tell us what the actual dividends and interest was in '24 to understand that that's the go forward versus some of the one, I guess, other things that markups that you were expecting or you booked this year, just so we understand kind of the run rate. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 07, 2025 / 1:30PM, CBOE.Z - Q4 2024 Cboe Global Markets Inc Earnings Call