Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, reported record net revenues of $2.3 billion for the second quarter of 2024, marking a 23% increase compared to the same period last year. The company's strong performance was driven by growth across all three of its main business segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology.
Despite the record revenues, ICE's GAAP diluted earnings per share (EPS) declined by 23% year-over-year to $1.10, falling short of analyst estimates. However, on an adjusted basis, diluted EPS rose 6% to $1.52.
Jeffrey C. Sprecher, ICE Chair & Chief Executive Officer, expressed satisfaction with the company's second-quarter results, stating, “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.”
Segment Performance
| Segment | Q2 2024 Revenue | Year-over-Year Change |
|---|---|---|
| Exchanges | $1.2 billion | +14% |
| Fixed Income and Data Services | $565 million | +4% |
| Mortgage Technology | $506 million | +103% |
The Exchanges segment saw net revenues of $1.2 billion, a 14% increase compared to Q2 2023. Fixed Income and Data Services revenue grew 4% to $565 million, while Mortgage Technology revenue more than doubled, surging 103% to $506 million.
Financial Highlights
| Metric | Q2 2024 | Year-over-Year Change |
|---|---|---|
| Net Revenues | $2.3 billion | +23% |
| Operating Income | $1.1 billion | +12% |
| Adjusted Operating Income | $1.4 billion | +21% |
| Operating Margin | 46% | – |
| Adjusted Operating Margin | 59% | -100 bps |
ICE's operating income reached a record $1.1 billion, up 12% year-over-year, while adjusted operating income hit $1.4 billion, a 21% increase. The company's operating margin stood at 46%, and its adjusted operating margin was 59%, a 100 basis point decrease from the previous year.
Looking ahead, ICE expects its full-year 2024 GAAP operating expenses to be in the range of $4.90 billion to $4.93 billion, with adjusted operating expenses between $3.79 billion and $3.82 billion. For the third quarter, GAAP operating expenses are projected to be $1.22 billion to $1.23 billion, and adjusted operating expenses are anticipated to fall between $955 million and $965 million.
Despite the challenges posed by the decline in GAAP EPS, Intercontinental Exchange demonstrated robust revenue growth and operational efficiency in ICE Reports Record Q2 2024. As the company continues to invest in growth opportunities and leverage its expertise in data, technology, and networks, it remains well-positioned to deliver innovative solutions to its customers and drive value for its stockholders.
