Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Intercontinental Exchange Reports Strong Second Quarter 2024 By: Intercontinental Exchange via Business Wire August 01, 2024 at 07:30 AM EDT Intercontinental Exchange (NYSE: ICE): Record 2Q24 net revenues of $2.3 billion, +23% y/y 2Q24 GAAP diluted earnings per share (EPS) of $1.10, down 23% y/y 2Q24 adj. diluted EPS of $1.52, +6% y/y Record 2Q24 operating income of $1.1 billion, +12% y/y; record adj. operating income of $1.4 billion, +21% y/y 2Q24 operating margin of 46%; adj. operating margin of 59% Jeffrey C. Sprecher,ICE Chair & Chief Executive Officer, said,"We are pleased to report our second quarter results that extend our track record of growth. 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. As we look to the second half of the year and beyond, we will continue to leverage our data, technology and network expertise to deliver innovative solutions for our customers and drive growth for our stockholders." Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, today reported financial results for the second quarter of 2024. For the quarter ended June 30, 2024, consolidated net income attributable to ICE was $632 million on $2.3 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted EPS were $1.10. Adjusted net income attributable to ICE was $876 million in the second quarter and adjusted diluted EPS were $1.52. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and adjusted free cash flow. Warren Gardiner, ICE Chief Financial Officer, added: "Through the first half of 2024, we have generated record revenues and record operating income, while also continuing to make progress towards achieving the leverage and synergy targets related to our 2023 acquisition of Black Knight. As we turn to the second half, we expect to continue to invest in opportunities to drive future growth and to create value for our stockholders." Second Quarter 2024 Business Highlights Second quarter consolidated net revenues were $2.3 billion including exchange net revenues of $1.2 billion, fixed income and data services revenues of $565 million and mortgage technology revenues of $506 million. Consolidated operating expenses were $1.3 billion for the second quarter of 2024. On an adjusted basis, consolidated operating expenses were $947 million. Consolidated operating income for the second quarter was $1.1 billion, and the operating margin was 46%. On an adjusted basis, consolidated operating income for the second quarter was $1.4 billion, and the adjusted operating margin was 59%. $ (in millions) Net Revenues Op Margin Adj Op Margin 2Q24 Exchanges $1,246 71% 75% Fixed Income and Data Services $565 37% 45% Mortgage Technology $506 (6)% 36% Consolidated $2,317 46% 59% 2Q24 2Q23 % Chg Recurring Revenues $1,206 $955 26% Transaction Revenues, net $1,111 $933 19% Exchanges Segment Results Second quarter exchange net revenues were $1.2 billion. Exchange operating expenses were $356 million and on an adjusted basis, were $311 million in the second quarter. Segment operating income for the second quarter was $890 million, and the operating margin was 71%. On an adjusted basis, operating income was $935 million, and the adjusted operating margin was 75%. $ (in millions) 2Q24 2Q23 % Chg Const Curr(1) Revenues, net: Energy $469 $355 32% 33% Ags and Metals 71 77 (8)% (8)% Financials(2) 132 104 26% 26% Cash Equities and Equity Options, net 111 96 16% 16% OTC and Other(3) 101 104 (3)% (3)% Data and Connectivity Services 240 231 4% 4% Listings 122 126 (3)% (3)% Segment Revenues $1,246 $1,093 14% 14% Recurring Revenues $362 $357 1% 1% Transaction Revenues, net $884 $736 20% 20% (1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q23, 1.2522 and 1.0893, respectively. (2) Financials include interest rates and other financial futures and options. (3) OTC & other includes net interest income and fees on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange member fees, and agriculture grading and certification fees. Fixed Income and Data Services Segment Results Second quarter fixed income and data services revenues were $565 million. Fixed income and data services operating expenses were $357 million, and adjusted operating expenses were $311 million in the second quarter. Segment operating income for the second quarter was $208 million, and the operating margin was 37%. On an adjusted basis, operating income was $254 million, and the adjusted operating margin was 45%. $ (in millions) 2Q24 2Q23 % Chg Const Curr(1) Revenues: Fixed Income Execution $30 $28 3% 3% CDS Clearing 78 84 (6)% (6)% Fixed Income Data and Analytics 293 277 6% 6% Other Data and Network Services 164 157 5% 5% Segment Revenues $565 $546 4% 4% Recurring Revenues $457 $434 5% 5% Transaction Revenues $108 $112 (4)% (4)% (1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q23, 1.2522 and 1.0893, respectively. Mortgage Technology Segment Results Second quarter mortgage technology revenues were $506 million. Mortgage technology operating expenses were $538 million, and adjusted operating expenses were $325 million in the second quarter. Segment operating loss for the second quarter was $32 million, and the operating margin was (6)%. On an adjusted basis, operating income was $181 million, and the adjusted operating margin was 36%. $ (in millions) 2Q24 2Q23 % Chg Revenues: Origination Technology $180 $178 1% Closing Solutions 52 47 9% Servicing Software 212 — n/a Data and Analytics 62 24 165% Segment Revenues $506 $249 103% Recurring Revenues $387 $164 137% Transaction Revenues $119 $85 39% Other Matters Operating cash flow through the second quarter of 2024 was $2.2 billion and adjusted free cash flow was $1.8 billion. Unrestricted cash was $885 million and outstanding debt was $21.8 billion as of June 30, 2024. Through the second quarter of 2024, ICE paid $519 million in dividends. Updated Financial Guidance ICE's full year 2024 GAAP operating expenses are expected to be in a range of $4.90 billion to $4.93 billion. Adjusted operating expenses(1) are expected to be in a range of $3.79 billion to $3.82 billion. ICE's third quarter 2024 GAAP operating expenses are expected to be in a range of $1.22 billion to $1.23 billion. Adjusted operating expenses(1) are expected to be in a range of $955 million to $965 million. ICE's third quarter 2024 GAAP non-operating expense(2) is expected to be in the range of $200 million to $205 million. Adjusted non-operating expense is expected to be in the range of $190 million to $195 million. ICE's diluted share count for the third quarter is expected to be in the range of 573 million to 579 million weighted average shares outstanding. (1) Full year and 3Q 2024 non-GAAP operating expenses exclude amortization of acquisition-related intangibles, duplicate rent expenses, valid claims made following an equity trading issue at NYSE, and Black Knight integration costs. (2) Non-operating expense includes interest income, interest expense and net other income/expense. Non-GAAP non-operating expense excludes equity earnings/losses from unconsolidated investees. Earnings Conference Call Information ICE will hold a conference call today, August 1, 2024, at 8:30 a.m. ET to review its second quarter 2024 financial results. A live audio webcast of the earnings call will be available on the company's website at www.ice.com in the investor relations section. Participants may also listen via telephone by dialing 833-470-1428 from the United States or 929-526-1599 from outside of the United States. Telephone participants are required to provide the participant entry number 916348 and are recommended to call 10 minutes prior to the start of the call. The call will be archived on the company's website for replay. The conference call for the third quarter 2024 earnings has been scheduled for October 31st, 2024 at 8:30 a.m. ET. Please refer to the Investor Relations website at www.ir.theice.com for additional information. Historical futures, options and cash ADV, rate per contract, open interest data and CDS cleared information can be found at: https://ir.theice.com/investor-resources/supplemental-information/default.aspx Consolidated Statements of Income (In millions, except per share amounts) (Unaudited) Six Months Ended June 30, Three Months Ended June 30, Revenues: 2024 2023 2024 2023 Exchanges $ 3,560 $ 3,214 $ 1,826 $ 1,541 Fixed income and data services 1,133 1,109 565 546 Mortgage technology 1,005 485 506 249 Total revenues 5,698 4,808 2,897 2,336 Transaction-based expenses: Section 31 fees 205 175 138 56 Cash liquidity payments, routing and clearing 886 849 442 392 Total revenues, less transaction-based expenses 4,607 3,784 2,317 1,888 Operating expenses: Compensation and benefits 935 703 473 351 Professional services 74 57 38 29 Acquisition-related transaction and integration costs 51 46 15 25 Technology and communication 419 345 214 173 Rent and occupancy 59 45 30 25 Selling, general and administrative 178 137 100 63 Depreciation and amortization 762 527 381 267 Total operating expenses 2,478 1,860 1,251 933 Operating income 2,129 1,924 1,066 955 Other income/(expense): Interest income 66 193 36 102 Interest expense (474 ) (351 ) (233 ) (175 ) Other income/(expense), net 104 (70 ) (8 ) (35 ) Total other income/(expense), net (304 ) (228 ) (205 ) (108 ) Income before income tax expense 1,825 1,696 861 847 Income tax expense 403 207 222 32 Net income $ 1,422 $ 1,489 $ 639 $ 815 Net income attributable to non-controlling interest (23 ) (35 ) (7 ) (16 ) Net income attributable to Intercontinental Exchange, Inc. $ 1,399 $ 1,454 $ 632 $ 799 Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: Basic $ 2.44 $ 2.60 $ 1.10 $ 1.43 Diluted $ 2.43 $ 2.59 $ 1.10 $ 1.42 Weighted average common shares outstanding: Basic 573 560 573 560 Diluted 575 561 575 561 Consolidated Balance Sheets (In millions) As of June 30, 2024 As of (Unaudited) December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 885 $ 899 Short-term restricted cash and cash equivalents 1,252 531 Short-term restricted investments 500 680 Cash and cash equivalent margin deposits and guaranty funds 80,129 78,980 Invested deposits, delivery contracts receivable and unsettled variation margin 2,000 1,814 Customer accounts receivable, net 1,548 1,366 Prepaid expenses and other current assets 677 703 Total current assets 86,991 84,973 Property and equipment, net 1,992 1,923 Other non-current assets: Goodwill 30,553 30,553 Other intangible assets, net 16,805 17,317 Long-term restricted cash and cash equivalents 370 340 Other non-current assets 971 978 Total other non-current assets 48,699 49,188 Total assets $ 137,682 $ 136,084 Liabilities and Equity: Current liabilities: Accounts payable and accrued liabilities $ 1,008 $ 1,003 Section 31 fees payable 203 79 Accrued salaries and benefits 263 459 Deferred revenue 497 200 Short-term debt 3,234 1,954 Margin deposits and guaranty funds 80,129 78,980 Invested deposits, delivery contracts payable and unsettled variation margin 2,000 1,814 Other current liabilities 130 137 Total current liabilities 87,464 84,626 Non-current liabilities: Non-current deferred tax liability, net 3,950 4,080 Long-term debt 18,573 20,659 Accrued employee benefits 179 193 Non-current operating lease liability 323 299 Other non-current liabilities 449 441 Total non-current liabilities 23,474 25,672 Total liabilities 110,938 110,298 Equity: Intercontinental Exchange, Inc. stockholders’ equity: Common stock 7 6 Treasury stock, at cost (6,377 ) (6,304 ) Additional paid-in capital 16,130 15,953 Retained earnings 17,236 16,356 Accumulated other comprehensive loss (309 ) (294 ) Total Intercontinental Exchange, Inc. stockholders’ equity 26,687 25,717 Non-controlling interest in consolidated subsidiaries 57 69 Total equity 26,744 25,786 Total liabilities and equity $ 137,682 $ 136,084 Non-GAAP Financial Measures and Reconciliation We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our GAAP results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparison of results because the items described below as adjustments to GAAP are not reflective of our core business performance. These financial measures are not in accordance with, or an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance. We strongly recommend that investors review the GAAP financial measures and additional non-GAAP information included in our Quarterly Report on Form 10-Q, including our consolidated financial statements and the notes thereto. Adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income attributable to ICE common stockholders, adjusted diluted earnings per share and adjusted free cash flow for the periods presented below are calculated by adding or subtracting the adjustments described below, which are not reflective of our cash operations and core business performance, and their related income tax effect and other tax adjustments (in millions, except for per share amounts): Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation (In millions) (Unaudited) Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Total revenues, less transaction-based expenses $2,469 $2,190 $1,133 $1,109 $1,005 $485 $4,607 $3,784 Operating expenses 682 631 711 699 1,085 530 2,478 1,860 Less: Amortization of acquisition-related intangibles 34 33 77 85 395 183 506 301 Less: Transaction and integration costs — — — — 51 46 51 46 Less: Regulatory matter — 11 — — — — — 11 Less: Other 30 6 14 — — — 44 6 Adjusted operating expenses $618 $581 $620 $614 $639 $301 $1,877 $1,496 Operating income/(loss) $1,787 $1,559 $422 $410 $(80) $(45) $2,129 $1,924 Adjusted operating income $1,851 $1,609 $513 $495 $366 $184 $2,730 $2,288 Operating margin 72% 71% 37% 37% (8)% (9)% 46% 51% Adjusted operating margin 75% 73% 45% 45% 36% 38% 59% 60% Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation (In millions) (Unaudited) Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Total revenues, less transaction-based expenses $1,246 $1,093 $565 $546 $506 $249 $2,317 $1,888 Operating expenses 356 311 357 356 538 266 1,251 933 Less: Amortization of acquisition-related intangibles 15 17 39 43 198 91 252 151 Less: Transaction and integration costs — — — — 15 25 15 25 Less: Regulatory matter — 1 — — — — — 1 Less: Other 30 — 7 — — — 37 — Adjusted operating expenses $311 $293 $311 $313 $325 $150 $947 $756 Operating income/(loss) $890 $782 $208 $190 $(32) $(17) $1,066 $955 Adjusted operating income $935 $800 $254 $233 $181 $99 $1,370 $1,132 Operating margin 71% 72% 37% 35% (6)% (7)% 46% 51% Adjusted operating margin 75% 73% 45% 43% 36% 40% 59% 60% Adjusted Net Income Attributable to ICE and Diluted EPS (In millions) (Unaudited) Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Net income attributable to ICE $ 1,399 $ 1,454 Add: Amortization of acquisition-related intangibles 506 301 Add: Transaction and integration costs 51 46 (Less)/Add: Litigation and regulatory matters (160 ) 11 Add: Net losses from unconsolidated investees 45 65 Add: Fair value adjustment of equity investments 3 — Less: Net interest income on pre-acquisition-related debt — (12 ) Add: Other 44 6 Less: Income tax effect for the above items (125 ) (112 ) Less: Deferred tax adjustments on acquisition-related intangibles (35 ) (85 ) Less: Other tax adjustments — (81 ) Adjusted net income attributable to ICE common stockholders $ 1,728 $ 1,593 Diluted earnings per share attributable to ICE common stockholders $ 2.43 $ 2.59 Adjusted diluted earnings per share attributable to ICE common stockholders $ 3.00 $ 2.84 Diluted weighted average common shares outstanding 575 561 Adjusted Net Income Attributable to ICE and Diluted EPS (In millions) (Unaudited) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Net income attributable to ICE $ 632 $ 799 Add: Amortization of acquisition-related intangibles 252 151 Add: Transaction and integration costs 15 25 Add: Regulatory matter — 1 Add: Net losses from unconsolidated investees 3 30 Less: Net interest income on pre-acquisition-related debt — (6 ) Add: Other 37 — Less: Income tax effect for the above items (79 ) (55 ) Add/(Less): Deferred tax adjustments on acquisition-related intangibles 16 (86 ) Less: Other tax adjustments — (57 ) Adjusted net income attributable to ICE common stockholders $ 876 $ 802 Diluted earnings per share attributable to ICE common stockholders $ 1.10 $ 1.42 Adjusted diluted earnings per share attributable to ICE common stockholders $ 1.52 $ 1.43 Diluted weighted average common shares outstanding 575 561 Adjusted Free Cash Flow Calculation (In millions) (Unaudited) Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Net cash provided by operating activities $ 2,205 $ 1,805 Less: Capital expenditures (133 ) (61 ) Less: Capitalized software development costs (177 ) (142 ) Free cash flow 1,895 1,602 (Less)/Add: Section 31 fees, net (124 ) 50 Adjusted free cash flow $ 1,771 $ 1,652 About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).” Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in Intercontinental Exchange, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024. We caution you not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all factors that may affect our business and prospects. Further, management cannot assess the impact of each factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SOURCE: Intercontinental Exchange ICE-CORP View source version on businesswire.com: https://www.businesswire.com/news/home/20240801266409/en/Contacts ICE Investor Relations Contact: Katia Gonzalez +1 678 981 3882 katia.gonzalez@ice.com investors@ice.com ICE Media Contact: Damon Leavell +1 212 323 8587 damon.leavell@ice.com media@ice.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Intercontinental Exchange Reports Strong Second Quarter 2024 By: Intercontinental Exchange via Business Wire August 01, 2024 at 07:30 AM EDT Intercontinental Exchange (NYSE: ICE): Record 2Q24 net revenues of $2.3 billion, +23% y/y 2Q24 GAAP diluted earnings per share (EPS) of $1.10, down 23% y/y 2Q24 adj. diluted EPS of $1.52, +6% y/y Record 2Q24 operating income of $1.1 billion, +12% y/y; record adj. operating income of $1.4 billion, +21% y/y 2Q24 operating margin of 46%; adj. operating margin of 59% Jeffrey C. Sprecher,ICE Chair & Chief Executive Officer, said,"We are pleased to report our second quarter results that extend our track record of growth. 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. As we look to the second half of the year and beyond, we will continue to leverage our data, technology and network expertise to deliver innovative solutions for our customers and drive growth for our stockholders." Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, today reported financial results for the second quarter of 2024. For the quarter ended June 30, 2024, consolidated net income attributable to ICE was $632 million on $2.3 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted EPS were $1.10. Adjusted net income attributable to ICE was $876 million in the second quarter and adjusted diluted EPS were $1.52. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and adjusted free cash flow. Warren Gardiner, ICE Chief Financial Officer, added: "Through the first half of 2024, we have generated record revenues and record operating income, while also continuing to make progress towards achieving the leverage and synergy targets related to our 2023 acquisition of Black Knight. As we turn to the second half, we expect to continue to invest in opportunities to drive future growth and to create value for our stockholders." Second Quarter 2024 Business Highlights Second quarter consolidated net revenues were $2.3 billion including exchange net revenues of $1.2 billion, fixed income and data services revenues of $565 million and mortgage technology revenues of $506 million. Consolidated operating expenses were $1.3 billion for the second quarter of 2024. On an adjusted basis, consolidated operating expenses were $947 million. Consolidated operating income for the second quarter was $1.1 billion, and the operating margin was 46%. On an adjusted basis, consolidated operating income for the second quarter was $1.4 billion, and the adjusted operating margin was 59%. $ (in millions) Net Revenues Op Margin Adj Op Margin 2Q24 Exchanges $1,246 71% 75% Fixed Income and Data Services $565 37% 45% Mortgage Technology $506 (6)% 36% Consolidated $2,317 46% 59% 2Q24 2Q23 % Chg Recurring Revenues $1,206 $955 26% Transaction Revenues, net $1,111 $933 19% Exchanges Segment Results Second quarter exchange net revenues were $1.2 billion. Exchange operating expenses were $356 million and on an adjusted basis, were $311 million in the second quarter. Segment operating income for the second quarter was $890 million, and the operating margin was 71%. On an adjusted basis, operating income was $935 million, and the adjusted operating margin was 75%. $ (in millions) 2Q24 2Q23 % Chg Const Curr(1) Revenues, net: Energy $469 $355 32% 33% Ags and Metals 71 77 (8)% (8)% Financials(2) 132 104 26% 26% Cash Equities and Equity Options, net 111 96 16% 16% OTC and Other(3) 101 104 (3)% (3)% Data and Connectivity Services 240 231 4% 4% Listings 122 126 (3)% (3)% Segment Revenues $1,246 $1,093 14% 14% Recurring Revenues $362 $357 1% 1% Transaction Revenues, net $884 $736 20% 20% (1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q23, 1.2522 and 1.0893, respectively. (2) Financials include interest rates and other financial futures and options. (3) OTC & other includes net interest income and fees on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange member fees, and agriculture grading and certification fees. Fixed Income and Data Services Segment Results Second quarter fixed income and data services revenues were $565 million. Fixed income and data services operating expenses were $357 million, and adjusted operating expenses were $311 million in the second quarter. Segment operating income for the second quarter was $208 million, and the operating margin was 37%. On an adjusted basis, operating income was $254 million, and the adjusted operating margin was 45%. $ (in millions) 2Q24 2Q23 % Chg Const Curr(1) Revenues: Fixed Income Execution $30 $28 3% 3% CDS Clearing 78 84 (6)% (6)% Fixed Income Data and Analytics 293 277 6% 6% Other Data and Network Services 164 157 5% 5% Segment Revenues $565 $546 4% 4% Recurring Revenues $457 $434 5% 5% Transaction Revenues $108 $112 (4)% (4)% (1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q23, 1.2522 and 1.0893, respectively. Mortgage Technology Segment Results Second quarter mortgage technology revenues were $506 million. Mortgage technology operating expenses were $538 million, and adjusted operating expenses were $325 million in the second quarter. Segment operating loss for the second quarter was $32 million, and the operating margin was (6)%. On an adjusted basis, operating income was $181 million, and the adjusted operating margin was 36%. $ (in millions) 2Q24 2Q23 % Chg Revenues: Origination Technology $180 $178 1% Closing Solutions 52 47 9% Servicing Software 212 — n/a Data and Analytics 62 24 165% Segment Revenues $506 $249 103% Recurring Revenues $387 $164 137% Transaction Revenues $119 $85 39% Other Matters Operating cash flow through the second quarter of 2024 was $2.2 billion and adjusted free cash flow was $1.8 billion. Unrestricted cash was $885 million and outstanding debt was $21.8 billion as of June 30, 2024. Through the second quarter of 2024, ICE paid $519 million in dividends. Updated Financial Guidance ICE's full year 2024 GAAP operating expenses are expected to be in a range of $4.90 billion to $4.93 billion. Adjusted operating expenses(1) are expected to be in a range of $3.79 billion to $3.82 billion. ICE's third quarter 2024 GAAP operating expenses are expected to be in a range of $1.22 billion to $1.23 billion. Adjusted operating expenses(1) are expected to be in a range of $955 million to $965 million. ICE's third quarter 2024 GAAP non-operating expense(2) is expected to be in the range of $200 million to $205 million. Adjusted non-operating expense is expected to be in the range of $190 million to $195 million. ICE's diluted share count for the third quarter is expected to be in the range of 573 million to 579 million weighted average shares outstanding. (1) Full year and 3Q 2024 non-GAAP operating expenses exclude amortization of acquisition-related intangibles, duplicate rent expenses, valid claims made following an equity trading issue at NYSE, and Black Knight integration costs. (2) Non-operating expense includes interest income, interest expense and net other income/expense. Non-GAAP non-operating expense excludes equity earnings/losses from unconsolidated investees. Earnings Conference Call Information ICE will hold a conference call today, August 1, 2024, at 8:30 a.m. ET to review its second quarter 2024 financial results. A live audio webcast of the earnings call will be available on the company's website at www.ice.com in the investor relations section. Participants may also listen via telephone by dialing 833-470-1428 from the United States or 929-526-1599 from outside of the United States. Telephone participants are required to provide the participant entry number 916348 and are recommended to call 10 minutes prior to the start of the call. The call will be archived on the company's website for replay. The conference call for the third quarter 2024 earnings has been scheduled for October 31st, 2024 at 8:30 a.m. ET. Please refer to the Investor Relations website at www.ir.theice.com for additional information. Historical futures, options and cash ADV, rate per contract, open interest data and CDS cleared information can be found at: https://ir.theice.com/investor-resources/supplemental-information/default.aspx Consolidated Statements of Income (In millions, except per share amounts) (Unaudited) Six Months Ended June 30, Three Months Ended June 30, Revenues: 2024 2023 2024 2023 Exchanges $ 3,560 $ 3,214 $ 1,826 $ 1,541 Fixed income and data services 1,133 1,109 565 546 Mortgage technology 1,005 485 506 249 Total revenues 5,698 4,808 2,897 2,336 Transaction-based expenses: Section 31 fees 205 175 138 56 Cash liquidity payments, routing and clearing 886 849 442 392 Total revenues, less transaction-based expenses 4,607 3,784 2,317 1,888 Operating expenses: Compensation and benefits 935 703 473 351 Professional services 74 57 38 29 Acquisition-related transaction and integration costs 51 46 15 25 Technology and communication 419 345 214 173 Rent and occupancy 59 45 30 25 Selling, general and administrative 178 137 100 63 Depreciation and amortization 762 527 381 267 Total operating expenses 2,478 1,860 1,251 933 Operating income 2,129 1,924 1,066 955 Other income/(expense): Interest income 66 193 36 102 Interest expense (474 ) (351 ) (233 ) (175 ) Other income/(expense), net 104 (70 ) (8 ) (35 ) Total other income/(expense), net (304 ) (228 ) (205 ) (108 ) Income before income tax expense 1,825 1,696 861 847 Income tax expense 403 207 222 32 Net income $ 1,422 $ 1,489 $ 639 $ 815 Net income attributable to non-controlling interest (23 ) (35 ) (7 ) (16 ) Net income attributable to Intercontinental Exchange, Inc. $ 1,399 $ 1,454 $ 632 $ 799 Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: Basic $ 2.44 $ 2.60 $ 1.10 $ 1.43 Diluted $ 2.43 $ 2.59 $ 1.10 $ 1.42 Weighted average common shares outstanding: Basic 573 560 573 560 Diluted 575 561 575 561 Consolidated Balance Sheets (In millions) As of June 30, 2024 As of (Unaudited) December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 885 $ 899 Short-term restricted cash and cash equivalents 1,252 531 Short-term restricted investments 500 680 Cash and cash equivalent margin deposits and guaranty funds 80,129 78,980 Invested deposits, delivery contracts receivable and unsettled variation margin 2,000 1,814 Customer accounts receivable, net 1,548 1,366 Prepaid expenses and other current assets 677 703 Total current assets 86,991 84,973 Property and equipment, net 1,992 1,923 Other non-current assets: Goodwill 30,553 30,553 Other intangible assets, net 16,805 17,317 Long-term restricted cash and cash equivalents 370 340 Other non-current assets 971 978 Total other non-current assets 48,699 49,188 Total assets $ 137,682 $ 136,084 Liabilities and Equity: Current liabilities: Accounts payable and accrued liabilities $ 1,008 $ 1,003 Section 31 fees payable 203 79 Accrued salaries and benefits 263 459 Deferred revenue 497 200 Short-term debt 3,234 1,954 Margin deposits and guaranty funds 80,129 78,980 Invested deposits, delivery contracts payable and unsettled variation margin 2,000 1,814 Other current liabilities 130 137 Total current liabilities 87,464 84,626 Non-current liabilities: Non-current deferred tax liability, net 3,950 4,080 Long-term debt 18,573 20,659 Accrued employee benefits 179 193 Non-current operating lease liability 323 299 Other non-current liabilities 449 441 Total non-current liabilities 23,474 25,672 Total liabilities 110,938 110,298 Equity: Intercontinental Exchange, Inc. stockholders’ equity: Common stock 7 6 Treasury stock, at cost (6,377 ) (6,304 ) Additional paid-in capital 16,130 15,953 Retained earnings 17,236 16,356 Accumulated other comprehensive loss (309 ) (294 ) Total Intercontinental Exchange, Inc. stockholders’ equity 26,687 25,717 Non-controlling interest in consolidated subsidiaries 57 69 Total equity 26,744 25,786 Total liabilities and equity $ 137,682 $ 136,084 Non-GAAP Financial Measures and Reconciliation We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our GAAP results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparison of results because the items described below as adjustments to GAAP are not reflective of our core business performance. These financial measures are not in accordance with, or an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance. We strongly recommend that investors review the GAAP financial measures and additional non-GAAP information included in our Quarterly Report on Form 10-Q, including our consolidated financial statements and the notes thereto. Adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income attributable to ICE common stockholders, adjusted diluted earnings per share and adjusted free cash flow for the periods presented below are calculated by adding or subtracting the adjustments described below, which are not reflective of our cash operations and core business performance, and their related income tax effect and other tax adjustments (in millions, except for per share amounts): Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation (In millions) (Unaudited) Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Total revenues, less transaction-based expenses $2,469 $2,190 $1,133 $1,109 $1,005 $485 $4,607 $3,784 Operating expenses 682 631 711 699 1,085 530 2,478 1,860 Less: Amortization of acquisition-related intangibles 34 33 77 85 395 183 506 301 Less: Transaction and integration costs — — — — 51 46 51 46 Less: Regulatory matter — 11 — — — — — 11 Less: Other 30 6 14 — — — 44 6 Adjusted operating expenses $618 $581 $620 $614 $639 $301 $1,877 $1,496 Operating income/(loss) $1,787 $1,559 $422 $410 $(80) $(45) $2,129 $1,924 Adjusted operating income $1,851 $1,609 $513 $495 $366 $184 $2,730 $2,288 Operating margin 72% 71% 37% 37% (8)% (9)% 46% 51% Adjusted operating margin 75% 73% 45% 45% 36% 38% 59% 60% Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation (In millions) (Unaudited) Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Total revenues, less transaction-based expenses $1,246 $1,093 $565 $546 $506 $249 $2,317 $1,888 Operating expenses 356 311 357 356 538 266 1,251 933 Less: Amortization of acquisition-related intangibles 15 17 39 43 198 91 252 151 Less: Transaction and integration costs — — — — 15 25 15 25 Less: Regulatory matter — 1 — — — — — 1 Less: Other 30 — 7 — — — 37 — Adjusted operating expenses $311 $293 $311 $313 $325 $150 $947 $756 Operating income/(loss) $890 $782 $208 $190 $(32) $(17) $1,066 $955 Adjusted operating income $935 $800 $254 $233 $181 $99 $1,370 $1,132 Operating margin 71% 72% 37% 35% (6)% (7)% 46% 51% Adjusted operating margin 75% 73% 45% 43% 36% 40% 59% 60% Adjusted Net Income Attributable to ICE and Diluted EPS (In millions) (Unaudited) Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Net income attributable to ICE $ 1,399 $ 1,454 Add: Amortization of acquisition-related intangibles 506 301 Add: Transaction and integration costs 51 46 (Less)/Add: Litigation and regulatory matters (160 ) 11 Add: Net losses from unconsolidated investees 45 65 Add: Fair value adjustment of equity investments 3 — Less: Net interest income on pre-acquisition-related debt — (12 ) Add: Other 44 6 Less: Income tax effect for the above items (125 ) (112 ) Less: Deferred tax adjustments on acquisition-related intangibles (35 ) (85 ) Less: Other tax adjustments — (81 ) Adjusted net income attributable to ICE common stockholders $ 1,728 $ 1,593 Diluted earnings per share attributable to ICE common stockholders $ 2.43 $ 2.59 Adjusted diluted earnings per share attributable to ICE common stockholders $ 3.00 $ 2.84 Diluted weighted average common shares outstanding 575 561 Adjusted Net Income Attributable to ICE and Diluted EPS (In millions) (Unaudited) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Net income attributable to ICE $ 632 $ 799 Add: Amortization of acquisition-related intangibles 252 151 Add: Transaction and integration costs 15 25 Add: Regulatory matter — 1 Add: Net losses from unconsolidated investees 3 30 Less: Net interest income on pre-acquisition-related debt — (6 ) Add: Other 37 — Less: Income tax effect for the above items (79 ) (55 ) Add/(Less): Deferred tax adjustments on acquisition-related intangibles 16 (86 ) Less: Other tax adjustments — (57 ) Adjusted net income attributable to ICE common stockholders $ 876 $ 802 Diluted earnings per share attributable to ICE common stockholders $ 1.10 $ 1.42 Adjusted diluted earnings per share attributable to ICE common stockholders $ 1.52 $ 1.43 Diluted weighted average common shares outstanding 575 561 Adjusted Free Cash Flow Calculation (In millions) (Unaudited) Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Net cash provided by operating activities $ 2,205 $ 1,805 Less: Capital expenditures (133 ) (61 ) Less: Capitalized software development costs (177 ) (142 ) Free cash flow 1,895 1,602 (Less)/Add: Section 31 fees, net (124 ) 50 Adjusted free cash flow $ 1,771 $ 1,652 About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).” Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in Intercontinental Exchange, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024. We caution you not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all factors that may affect our business and prospects. Further, management cannot assess the impact of each factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SOURCE: Intercontinental Exchange ICE-CORP View source version on businesswire.com: https://www.businesswire.com/news/home/20240801266409/en/Contacts ICE Investor Relations Contact: Katia Gonzalez +1 678 981 3882 katia.gonzalez@ice.com investors@ice.com ICE Media Contact: Damon Leavell +1 212 323 8587 damon.leavell@ice.com media@ice.com
Intercontinental Exchange (NYSE: ICE): Record 2Q24 net revenues of $2.3 billion, +23% y/y 2Q24 GAAP diluted earnings per share (EPS) of $1.10, down 23% y/y 2Q24 adj. diluted EPS of $1.52, +6% y/y Record 2Q24 operating income of $1.1 billion, +12% y/y; record adj. operating income of $1.4 billion, +21% y/y 2Q24 operating margin of 46%; adj. operating margin of 59% Jeffrey C. Sprecher,ICE Chair & Chief Executive Officer, said,"We are pleased to report our second quarter results that extend our track record of growth. 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. As we look to the second half of the year and beyond, we will continue to leverage our data, technology and network expertise to deliver innovative solutions for our customers and drive growth for our stockholders." Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, today reported financial results for the second quarter of 2024. For the quarter ended June 30, 2024, consolidated net income attributable to ICE was $632 million on $2.3 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted EPS were $1.10. Adjusted net income attributable to ICE was $876 million in the second quarter and adjusted diluted EPS were $1.52. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and adjusted free cash flow. Warren Gardiner, ICE Chief Financial Officer, added: "Through the first half of 2024, we have generated record revenues and record operating income, while also continuing to make progress towards achieving the leverage and synergy targets related to our 2023 acquisition of Black Knight. As we turn to the second half, we expect to continue to invest in opportunities to drive future growth and to create value for our stockholders." Second Quarter 2024 Business Highlights Second quarter consolidated net revenues were $2.3 billion including exchange net revenues of $1.2 billion, fixed income and data services revenues of $565 million and mortgage technology revenues of $506 million. Consolidated operating expenses were $1.3 billion for the second quarter of 2024. On an adjusted basis, consolidated operating expenses were $947 million. Consolidated operating income for the second quarter was $1.1 billion, and the operating margin was 46%. On an adjusted basis, consolidated operating income for the second quarter was $1.4 billion, and the adjusted operating margin was 59%. $ (in millions) Net Revenues Op Margin Adj Op Margin 2Q24 Exchanges $1,246 71% 75% Fixed Income and Data Services $565 37% 45% Mortgage Technology $506 (6)% 36% Consolidated $2,317 46% 59% 2Q24 2Q23 % Chg Recurring Revenues $1,206 $955 26% Transaction Revenues, net $1,111 $933 19% Exchanges Segment Results Second quarter exchange net revenues were $1.2 billion. Exchange operating expenses were $356 million and on an adjusted basis, were $311 million in the second quarter. Segment operating income for the second quarter was $890 million, and the operating margin was 71%. On an adjusted basis, operating income was $935 million, and the adjusted operating margin was 75%. $ (in millions) 2Q24 2Q23 % Chg Const Curr(1) Revenues, net: Energy $469 $355 32% 33% Ags and Metals 71 77 (8)% (8)% Financials(2) 132 104 26% 26% Cash Equities and Equity Options, net 111 96 16% 16% OTC and Other(3) 101 104 (3)% (3)% Data and Connectivity Services 240 231 4% 4% Listings 122 126 (3)% (3)% Segment Revenues $1,246 $1,093 14% 14% Recurring Revenues $362 $357 1% 1% Transaction Revenues, net $884 $736 20% 20% (1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q23, 1.2522 and 1.0893, respectively. (2) Financials include interest rates and other financial futures and options. (3) OTC & other includes net interest income and fees on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange member fees, and agriculture grading and certification fees. Fixed Income and Data Services Segment Results Second quarter fixed income and data services revenues were $565 million. Fixed income and data services operating expenses were $357 million, and adjusted operating expenses were $311 million in the second quarter. Segment operating income for the second quarter was $208 million, and the operating margin was 37%. On an adjusted basis, operating income was $254 million, and the adjusted operating margin was 45%. $ (in millions) 2Q24 2Q23 % Chg Const Curr(1) Revenues: Fixed Income Execution $30 $28 3% 3% CDS Clearing 78 84 (6)% (6)% Fixed Income Data and Analytics 293 277 6% 6% Other Data and Network Services 164 157 5% 5% Segment Revenues $565 $546 4% 4% Recurring Revenues $457 $434 5% 5% Transaction Revenues $108 $112 (4)% (4)% (1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q23, 1.2522 and 1.0893, respectively. Mortgage Technology Segment Results Second quarter mortgage technology revenues were $506 million. Mortgage technology operating expenses were $538 million, and adjusted operating expenses were $325 million in the second quarter. Segment operating loss for the second quarter was $32 million, and the operating margin was (6)%. On an adjusted basis, operating income was $181 million, and the adjusted operating margin was 36%. $ (in millions) 2Q24 2Q23 % Chg Revenues: Origination Technology $180 $178 1% Closing Solutions 52 47 9% Servicing Software 212 — n/a Data and Analytics 62 24 165% Segment Revenues $506 $249 103% Recurring Revenues $387 $164 137% Transaction Revenues $119 $85 39% Other Matters Operating cash flow through the second quarter of 2024 was $2.2 billion and adjusted free cash flow was $1.8 billion. Unrestricted cash was $885 million and outstanding debt was $21.8 billion as of June 30, 2024. Through the second quarter of 2024, ICE paid $519 million in dividends. Updated Financial Guidance ICE's full year 2024 GAAP operating expenses are expected to be in a range of $4.90 billion to $4.93 billion. Adjusted operating expenses(1) are expected to be in a range of $3.79 billion to $3.82 billion. ICE's third quarter 2024 GAAP operating expenses are expected to be in a range of $1.22 billion to $1.23 billion. Adjusted operating expenses(1) are expected to be in a range of $955 million to $965 million. ICE's third quarter 2024 GAAP non-operating expense(2) is expected to be in the range of $200 million to $205 million. Adjusted non-operating expense is expected to be in the range of $190 million to $195 million. ICE's diluted share count for the third quarter is expected to be in the range of 573 million to 579 million weighted average shares outstanding. (1) Full year and 3Q 2024 non-GAAP operating expenses exclude amortization of acquisition-related intangibles, duplicate rent expenses, valid claims made following an equity trading issue at NYSE, and Black Knight integration costs. (2) Non-operating expense includes interest income, interest expense and net other income/expense. Non-GAAP non-operating expense excludes equity earnings/losses from unconsolidated investees. Earnings Conference Call Information ICE will hold a conference call today, August 1, 2024, at 8:30 a.m. ET to review its second quarter 2024 financial results. A live audio webcast of the earnings call will be available on the company's website at www.ice.com in the investor relations section. Participants may also listen via telephone by dialing 833-470-1428 from the United States or 929-526-1599 from outside of the United States. Telephone participants are required to provide the participant entry number 916348 and are recommended to call 10 minutes prior to the start of the call. The call will be archived on the company's website for replay. The conference call for the third quarter 2024 earnings has been scheduled for October 31st, 2024 at 8:30 a.m. ET. Please refer to the Investor Relations website at www.ir.theice.com for additional information. Historical futures, options and cash ADV, rate per contract, open interest data and CDS cleared information can be found at: https://ir.theice.com/investor-resources/supplemental-information/default.aspx Consolidated Statements of Income (In millions, except per share amounts) (Unaudited) Six Months Ended June 30, Three Months Ended June 30, Revenues: 2024 2023 2024 2023 Exchanges $ 3,560 $ 3,214 $ 1,826 $ 1,541 Fixed income and data services 1,133 1,109 565 546 Mortgage technology 1,005 485 506 249 Total revenues 5,698 4,808 2,897 2,336 Transaction-based expenses: Section 31 fees 205 175 138 56 Cash liquidity payments, routing and clearing 886 849 442 392 Total revenues, less transaction-based expenses 4,607 3,784 2,317 1,888 Operating expenses: Compensation and benefits 935 703 473 351 Professional services 74 57 38 29 Acquisition-related transaction and integration costs 51 46 15 25 Technology and communication 419 345 214 173 Rent and occupancy 59 45 30 25 Selling, general and administrative 178 137 100 63 Depreciation and amortization 762 527 381 267 Total operating expenses 2,478 1,860 1,251 933 Operating income 2,129 1,924 1,066 955 Other income/(expense): Interest income 66 193 36 102 Interest expense (474 ) (351 ) (233 ) (175 ) Other income/(expense), net 104 (70 ) (8 ) (35 ) Total other income/(expense), net (304 ) (228 ) (205 ) (108 ) Income before income tax expense 1,825 1,696 861 847 Income tax expense 403 207 222 32 Net income $ 1,422 $ 1,489 $ 639 $ 815 Net income attributable to non-controlling interest (23 ) (35 ) (7 ) (16 ) Net income attributable to Intercontinental Exchange, Inc. $ 1,399 $ 1,454 $ 632 $ 799 Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: Basic $ 2.44 $ 2.60 $ 1.10 $ 1.43 Diluted $ 2.43 $ 2.59 $ 1.10 $ 1.42 Weighted average common shares outstanding: Basic 573 560 573 560 Diluted 575 561 575 561 Consolidated Balance Sheets (In millions) As of June 30, 2024 As of (Unaudited) December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 885 $ 899 Short-term restricted cash and cash equivalents 1,252 531 Short-term restricted investments 500 680 Cash and cash equivalent margin deposits and guaranty funds 80,129 78,980 Invested deposits, delivery contracts receivable and unsettled variation margin 2,000 1,814 Customer accounts receivable, net 1,548 1,366 Prepaid expenses and other current assets 677 703 Total current assets 86,991 84,973 Property and equipment, net 1,992 1,923 Other non-current assets: Goodwill 30,553 30,553 Other intangible assets, net 16,805 17,317 Long-term restricted cash and cash equivalents 370 340 Other non-current assets 971 978 Total other non-current assets 48,699 49,188 Total assets $ 137,682 $ 136,084 Liabilities and Equity: Current liabilities: Accounts payable and accrued liabilities $ 1,008 $ 1,003 Section 31 fees payable 203 79 Accrued salaries and benefits 263 459 Deferred revenue 497 200 Short-term debt 3,234 1,954 Margin deposits and guaranty funds 80,129 78,980 Invested deposits, delivery contracts payable and unsettled variation margin 2,000 1,814 Other current liabilities 130 137 Total current liabilities 87,464 84,626 Non-current liabilities: Non-current deferred tax liability, net 3,950 4,080 Long-term debt 18,573 20,659 Accrued employee benefits 179 193 Non-current operating lease liability 323 299 Other non-current liabilities 449 441 Total non-current liabilities 23,474 25,672 Total liabilities 110,938 110,298 Equity: Intercontinental Exchange, Inc. stockholders’ equity: Common stock 7 6 Treasury stock, at cost (6,377 ) (6,304 ) Additional paid-in capital 16,130 15,953 Retained earnings 17,236 16,356 Accumulated other comprehensive loss (309 ) (294 ) Total Intercontinental Exchange, Inc. stockholders’ equity 26,687 25,717 Non-controlling interest in consolidated subsidiaries 57 69 Total equity 26,744 25,786 Total liabilities and equity $ 137,682 $ 136,084 Non-GAAP Financial Measures and Reconciliation We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our GAAP results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparison of results because the items described below as adjustments to GAAP are not reflective of our core business performance. These financial measures are not in accordance with, or an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance. We strongly recommend that investors review the GAAP financial measures and additional non-GAAP information included in our Quarterly Report on Form 10-Q, including our consolidated financial statements and the notes thereto. Adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income attributable to ICE common stockholders, adjusted diluted earnings per share and adjusted free cash flow for the periods presented below are calculated by adding or subtracting the adjustments described below, which are not reflective of our cash operations and core business performance, and their related income tax effect and other tax adjustments (in millions, except for per share amounts): Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation (In millions) (Unaudited) Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Total revenues, less transaction-based expenses $2,469 $2,190 $1,133 $1,109 $1,005 $485 $4,607 $3,784 Operating expenses 682 631 711 699 1,085 530 2,478 1,860 Less: Amortization of acquisition-related intangibles 34 33 77 85 395 183 506 301 Less: Transaction and integration costs — — — — 51 46 51 46 Less: Regulatory matter — 11 — — — — — 11 Less: Other 30 6 14 — — — 44 6 Adjusted operating expenses $618 $581 $620 $614 $639 $301 $1,877 $1,496 Operating income/(loss) $1,787 $1,559 $422 $410 $(80) $(45) $2,129 $1,924 Adjusted operating income $1,851 $1,609 $513 $495 $366 $184 $2,730 $2,288 Operating margin 72% 71% 37% 37% (8)% (9)% 46% 51% Adjusted operating margin 75% 73% 45% 45% 36% 38% 59% 60% Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation (In millions) (Unaudited) Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Total revenues, less transaction-based expenses $1,246 $1,093 $565 $546 $506 $249 $2,317 $1,888 Operating expenses 356 311 357 356 538 266 1,251 933 Less: Amortization of acquisition-related intangibles 15 17 39 43 198 91 252 151 Less: Transaction and integration costs — — — — 15 25 15 25 Less: Regulatory matter — 1 — — — — — 1 Less: Other 30 — 7 — — — 37 — Adjusted operating expenses $311 $293 $311 $313 $325 $150 $947 $756 Operating income/(loss) $890 $782 $208 $190 $(32) $(17) $1,066 $955 Adjusted operating income $935 $800 $254 $233 $181 $99 $1,370 $1,132 Operating margin 71% 72% 37% 35% (6)% (7)% 46% 51% Adjusted operating margin 75% 73% 45% 43% 36% 40% 59% 60% Adjusted Net Income Attributable to ICE and Diluted EPS (In millions) (Unaudited) Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Net income attributable to ICE $ 1,399 $ 1,454 Add: Amortization of acquisition-related intangibles 506 301 Add: Transaction and integration costs 51 46 (Less)/Add: Litigation and regulatory matters (160 ) 11 Add: Net losses from unconsolidated investees 45 65 Add: Fair value adjustment of equity investments 3 — Less: Net interest income on pre-acquisition-related debt — (12 ) Add: Other 44 6 Less: Income tax effect for the above items (125 ) (112 ) Less: Deferred tax adjustments on acquisition-related intangibles (35 ) (85 ) Less: Other tax adjustments — (81 ) Adjusted net income attributable to ICE common stockholders $ 1,728 $ 1,593 Diluted earnings per share attributable to ICE common stockholders $ 2.43 $ 2.59 Adjusted diluted earnings per share attributable to ICE common stockholders $ 3.00 $ 2.84 Diluted weighted average common shares outstanding 575 561 Adjusted Net Income Attributable to ICE and Diluted EPS (In millions) (Unaudited) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Net income attributable to ICE $ 632 $ 799 Add: Amortization of acquisition-related intangibles 252 151 Add: Transaction and integration costs 15 25 Add: Regulatory matter — 1 Add: Net losses from unconsolidated investees 3 30 Less: Net interest income on pre-acquisition-related debt — (6 ) Add: Other 37 — Less: Income tax effect for the above items (79 ) (55 ) Add/(Less): Deferred tax adjustments on acquisition-related intangibles 16 (86 ) Less: Other tax adjustments — (57 ) Adjusted net income attributable to ICE common stockholders $ 876 $ 802 Diluted earnings per share attributable to ICE common stockholders $ 1.10 $ 1.42 Adjusted diluted earnings per share attributable to ICE common stockholders $ 1.52 $ 1.43 Diluted weighted average common shares outstanding 575 561 Adjusted Free Cash Flow Calculation (In millions) (Unaudited) Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Net cash provided by operating activities $ 2,205 $ 1,805 Less: Capital expenditures (133 ) (61 ) Less: Capitalized software development costs (177 ) (142 ) Free cash flow 1,895 1,602 (Less)/Add: Section 31 fees, net (124 ) 50 Adjusted free cash flow $ 1,771 $ 1,652 About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).” Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in Intercontinental Exchange, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024. We caution you not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all factors that may affect our business and prospects. Further, management cannot assess the impact of each factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SOURCE: Intercontinental Exchange ICE-CORP View source version on businesswire.com: https://www.businesswire.com/news/home/20240801266409/en/
ICE Investor Relations Contact: Katia Gonzalez +1 678 981 3882 katia.gonzalez@ice.com investors@ice.com ICE Media Contact: Damon Leavell +1 212 323 8587 damon.leavell@ice.com media@ice.com