Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Q3 2024 Earnings Presentation
24 slides from Intercontinental Exchange's earnings presentation, Oct 31, 2024
Slide 1: 3Q24 Earnings Supplement
3Q24 Earnings Supplement October 31, 2024 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding ICE’s business that are not historical facts are forward- loo
Slide 3: ICE Third Quarter 2024 Earnings Call Participants
ICE Third Quarter 2024 Earnings Call Participants Jeff Sprecher Warren Gardiner Stuart Williams Lynn Martin Chris Edmonds Katia Gonzalez Chair & CEO Chief Financial Officer Chief Operating Officer President, NYSE President, Fixed Income Manager, Investor Chair, Fixed Income & Data Services Relations
Slide 4: Record 3Q24 ICE Performance
Record 3Q24 ICE Performance in millions except per share amounts Income statement highlights 3Q24 3Q23 % Chg, CC % Chg Pro forma, CC +7 % Record net revenues, pro forma, CC Revenues, net $2,349 $2,003 17% 7% Recurring Revenues 1,212 1,031 17% 2% Transaction Revenues, net 1,137 972 16% 13% Adj. Op Ex
Slide 5: 3Q24 Exchanges Performance
3Q24 Exchanges Performance +24 % in millions Revenues, net 3Q24 3Q23 % Chg Const Curr Energy $473 $384 23% 23% Global gas revenues, CC Ags 60 61 (3)% (3)% Financials 141 112 26% 23% Cash Equities & Equity Options, net 107 93 15% 15% OTC & Other 109 104 5% 5% Data & Connectivity Services Listings 242
Slide 6: 3Q24 Fixed Income & Data Services Performance
3Q24 Fixed Income & Data Services Performance % in millions +6 Record recurring revenue, CC Revenues 3Q24 3Q23 % Chg Const Curr Fixed Income Execution $28 $29 (2)% (2)% CDS Clearing 97 94 3% 3% Fixed Income Data & Analytics Other Data & Network Services 295 166 279 157 6% 6% 6% 5% ~30 % Index revenu
Slide 7: 3Q24 Mortgage Technology Performance
3Q24 Mortgage Technology Performance in millions 31 New Encompass wins Revenues 3Q24 3Q23 % Chg % Chg, Pro forma Origination Tech $182 $172 6% 3% Closing Solutions 54 48 12% 8% Servicing Software Data & Analytics Total Revenues 209 64 69 41 n/a 55% (3)% (14)% ~80 % Recurring revenues $509 $330 54% (
Slide 8: A Leading Global Energy Network Built for Growth
A Leading Global Energy Network Built for Growth Helping Customers Navigate Complex Global Energy Markets & the Clean Energy Transition 62M+ Lots Open Interest Europe Diverse Global Energy Revenue Mix Northwest Europe’s natural gas markets are a crucial driver for balancing the LNG market, with thei
Slide 9: Largest End-to-End Network of Mortgage Stakeholders
Largest End-to-End Network of Mortgage Stakeholders Lead Processing, Home Closing & Secondary & Servicing & Generation & Underwriting, & Search Post-Closing Loan Trading Defaults Application Pre-Closing Mortgage Workflow Loan Origination, Closing, Funding, Invoicing, Claims, Marketing Call Center, S
Slide 10: Consistent Track Record of Growth
Consistent Track Record of Growth YTD Highlights $5.62 Record net revenues +20% y/y, CC $5.30 $5.06 Record pro forma net revenues +6 y/y, CC Record adj. op income +18% y/y, CC $4.55 $4.41 Record pro forma adj. op income +10% y/y, CC Record adj. EPS +6% y/y $3.77 $3.51 $2.93 $2.76 $2.42 $1.93 $1.68 $
Slide 11: Appendix
Appendix 11
Slide 12: Adjusted Operating Expenses
Adjusted Operating Expenses Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended in millions September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 GAAP Adjusted GAAP Adjusted GAAP Adjusted GAAP Adjusted Compensation and benefits $ 487 $ 487 $ 400 $ 400 $ 1,
Slide 13: Adjusted Non-Operating Income/Expense Reconciliation
Adjusted Non-Operating Income/Expense Reconciliation in millions 3Q24 2Q24 1Q24 4Q23 3Q23 Other income / (expense), net $(21) $(8) $112 $(190) $(51) (Less)/Add: Loss on sale and fair value adjustment of equity investments and dividends received, net (2) — 3 (4) 7 Add: Net losses from and impairment
Slide 14: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended in millions September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Income before income taxes $898 $682 $2,723 $2,378 Income tax expense 227 123 630 330 Effective
Slide 15: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Nine Months Ended Nine Months Ended in millions September 30, 2024 September 30, 2023 Net cash provided by operating activities $3,103 $2,573 Less: Capital expenditures (212) (104) Less: Capitalized software development costs (264) (222) Free cash flow 2,627 2,
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Twelve Months Ended in millions September 30, 2024 Adjusted operating income $5,368 Add: Adjusted depreciation and amortization 513 Add: Adjusted non-operating expense less adjusted interest expense 121 Less: Net income attributable to non-controlling interests (54) Ad
Slide 17: ICE Summary Balance Sheet
ICE Summary Balance Sheet in millions BALANCE SHEET 09/30/2024 12/31/2023 CHANGE Assets ▪ $755M unrestricted cash Unrestricted Cash $755 $899 $(144) Other Current Assets 83,940 84,074 (134) ▪ Total debt of $21.2B; Adj. Debt-to- Current Assets $84,695 $84,973 $(278) EBITDA(1) of 3.5x PPE (net) 2,029
Slide 18: Fixed Income & Data Supplemental Data
Fixed Income & Data Supplemental Data Annual Subscription Value (ASV) in millions 3Q24 2Q24 1Q24 4Q23 3Q23 ASV(1) 1,831 $1,795 $1,786 $1,752 $1,722 Adjusted for: FX — 13 11 7 17 ASV, CC $1,831 $1,808 $1,797 $1,759 $1,739 18 (1) ASV is defined as the annual value of subscriptions under contract for t
Slide 19: Average Daily Volume & Rate Per Contract (RPC) Trends
Average Daily Volume & Rate Per Contract (RPC) Trends lots in thousands Energy ADV & RPC ADV Ags ADV & RPC RPC ADV RPC 4,400 1.80 600 2.50 3,800 1.60 500 3,200 1.40 400 2.25 2,600 1.20 300 2,000 1.00 200 2.00 2019 2020 2021 2022 2023 YTD 2019 2020 2021 2022 2023 YTD 3Q24 3Q24 ADV RPC ADV RPC ADV Int
Slide 20: Average Daily Volume & Open Interest (OI) Trends
Average Daily Volume & Open Interest (OI) Trends lots in thousands ADV Energy ADV & OI OI ADV Ags ADV & OI OI 4,400 60,000 600 5,000 4,000 3,800 500 40,000 3,000 3,200 400 2,000 20,000 2,600 300 1,000 2,000 0 200 0 2019 2020 2021 2022 2023 YTD 2019 2020 2021 2022 2023 YTD 3Q24 3Q24 ADV OI ADV OI Int
Slide 21: GAAP Results
GAAP Results INCOME STATEMENT HIGHLIGHTS Three Months Ended Three Months Ended in millions except per share amounts September 30, 2024 September 30, 2023 % Chg Net revenues $2,349 $2,003 17% Operating expenses $1,246 $1,158 8% Operating income $1,103 $845 31% Operating margin 47% 42% 5 pts Net incom
Slide 22: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Fixed Income and Data Services Mortgage Technology in millions Exchanges Segment Segment Segment Consolidated Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 3
Slide 23: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Fixed Income and Data Services Mortgage Technology in millions Exchanges Segment Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended September 30, September 30, Septemb
Slide 24: Adjusted Net Income & EPS
Adjusted Net Income & EPS Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended in millions except per share amounts September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net income attributable to ICE $ 657 $ 541 $ 2,056 $ 1,995 Add: Amortization of acquisi
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