CME Group (CME) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $1.53 billion, up 13% year-over-year, with record adjusted net income of $932 million and net income of $883 million; diluted EPS reached $2.42, and adjusted EPS $2.56.

• Average daily volume (ADV) reached 25.9 million contracts, up 14% year-over-year, with broad-based growth across all asset classes and record non-U.S. ADV of 7.8 million contracts.

• Volume and open interest grew in every asset class for the first time in over a decade.

• Continued focus on capital efficiencies, innovation, and client needs, including a Google Cloud partnership for trading infrastructure.

• Operating margin improved to 69.1% adjusted and 65.3% GAAP, driven by higher volumes and increased market volatility.

Financial highlights

• Q2 2024 revenue: $1.53 billion, up from $1.36 billion in Q2 2023; total H1 2024 revenue: $3.02 billion.

• Net income for Q2: $883 million; adjusted net income: $932 million; H1 net income: $1.74 billion.

• Market data revenue increased 7% to $175 million; other revenue rose over 35% to $107 million.

• Adjusted expenses were $474 million; capital expenditures for Q2 were $17 million.

• Cash and equivalents at period end: $2.0 billion; total debt: $3.4 billion as of June 30, 2024.

Outlook and guidance

• Tracking well against full-year guidance: 1.5%-2% increase in clearing/transaction fees, 3%-5% in data products, and 2.5%-3% total revenue impact from pricing changes.

• Expense guidance unchanged; expect ~$60 million increase in H2 due to marketing, technology/cloud migration, and compensation.

• Focus remains on capital efficiencies, new product launches, and value creation through Google Cloud partnership.

• Management expects to maintain investment grade credit ratings and strong liquidity, with no material changes in market risk exposure since year-end 2023.

• No immediate financial impact from the new colocation facility; future guidance will reflect any changes.