Intercontinental Exchange, Inc. (NYSE:ICE) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET Company Participants Katia Gonzalez - Manager, Investor Relations Jeffrey Sprecher - Chair and Chief Executive Officer, Intercontinental Exchange Warren Gardiner - Chief Financial Officer, Intercontinental Exchange Benjamin Jackson - President, Intercontinental Exchange Lynn Martin - President, NYSE Group and Chair, ICE Fixed Income and Data Services Christopher Edmonds - President, Fixed Income and Data Se ...

| --- | --- | --- | --- | --- | |----------------------------|-------|-------|-------|-------| | | | | | | | 2Q24 Earnings Supplement | | | | | | August 1, 2024 | | | | | 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 forwardlooking statements that involve risks, uncerta ...

For the quarter ended June 2024, IntercontinentalExchange (ICE) reported revenue of $2.32 billion, up 22.7% over the same period last year. EPS came in at $1.52, compared to $1.43 in the year-ago quarter. The reported revenue represents a surprise of +0.28% over the Zacks Consensus Estimate of $2.31 billion. With the consensus EPS estimate being $1.49, the EPS surprise was +2.01%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

IntercontinentalExchange (ICE) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.01%. A quarter ago, it was expected that this owner of the New York Stock Exchange and other stock markets would post earnings of $1.48 per share when it actually produced earnings of $1.48, delivering n ...

Company Overview - The company operates as a leading global provider of technology and data across major asset classes, including futures, equities, fixed income, and U.S. residential mortgages[136]. - The company is focused on leveraging collective expertise in data services and technology across its three reportable segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology[136]. Market Conditions - Increased trading activity has been observed in interest rate and equity futures, credit default swaps, and bonds due to market and interest rate volatility[139]. - The company expects the macroeconomic environment to remain dynamic, closely monitoring interest rates, inflation, and geopolitical events[140]. - The impact of geopolitical events, such as conflicts in Ukraine, Israel, and Gaza, has not materially affected the company's operations[140]. Regulatory Environment - Regulatory changes, including increased bank capital requirements under Basel III Endgame, may lead to higher costs for clearing services and reduced clearing capacity[143]. - The company is subject to regulations from multiple jurisdictions, including the U.S., U.K., EU, Canada, Singapore, and Abu Dhabi, which influence its operational strategy[141]. Financial Performance - Revenues, less transaction-based expenses, increased by $823 million (22%) for the six months ended June 30, 2024, compared to the same period in 2023[154]. - Operating expenses increased by $618 million (33%) for the six months ended June 30, 2024, compared to the same period in 2023[155]. - Adjusted operating income for the six months ended June 30, 2024, was $2,730 million, an increase of $442 million (19%) from the same period in 2023[151]. - Net income attributable to ICE for the six months ended June 30, 2024, was $1,399 million, a decrease of $55 million (4%) from the same period in 2023[151]. - Adjusted net income attributable to ICE for the six months ended June 30, 2024, was $1,728 million, an increase of $135 million (8%) from the same period in 2023[151]. - Free cash flow for the six months ended June 30, 2024, was $1,895 million, an increase of $293 million (18%) from the same period in 2023[151]. Segment Performance - The Exchanges segment generated revenues of $3,560 million for the six months ended June 30, 2024, an 11% increase from $3,214 million in the same period of 2023[161]. - Transaction and clearing revenues increased by 14% to $2,841 million for the six months ended June 30, 2024, compared to $2,499 million in the prior year[161]. - Energy futures and options revenues rose by 32% to $926 million for the six months ended June 30, 2024, driven by a 29% increase in total energy volume[166]. - Financial futures and options revenues increased by 15% to $267 million for the six months ended June 30, 2024, with total volumes up 21%[168]. - Data and connectivity services revenues grew by 3% to $475 million for the six months ended June 30, 2024, supported by strong customer retention and new customer additions[172]. - Total revenues for the Fixed Income and Data Services segment rose by 2% to $1,133 million for the six months ended June 30, 2024, from $1,109 million in 2023[191]. Operating Expenses - Total operating expenses increased by 33% to $2,478 million for the six months ended June 30, 2024, compared to $1,860 million in 2023[217]. - Compensation and benefits expenses rose by 33% to $935 million for the six months ended June 30, 2024, from $703 million in 2023, primarily due to the acquisition of Black Knight[220]. - Professional services expenses increased by $17 million and $9 million for the six and three months ended June 30, 2024, respectively, compared to the same periods in 2023, driven by the Black Knight acquisition[221]. Debt and Capital Management - The company reported $22.613 billion in outstanding debt as of June 30, 2024, reflecting its capital allocation strategy[241]. - The company has a $3.9 billion senior unsecured revolving credit facility, with $1.7 billion available for working capital and general corporate purposes as of June 30, 2024[251]. - The company fully repaid the $2.4 billion Term Loan borrowed for the Black Knight acquisition by June 30, 2024[251]. Taxation - The effective tax rate increased to 22% for the six months ended June 30, 2024, compared to 12% for the same period in 2023[151]. - The company intends to apply the high tax exception to Global Intangible Low-Taxed Income in 2023 and 2024, minimizing immediate U.S. income taxation on foreign earnings[244]. Future Outlook - The company expects to incur capital expenditures between $600 million and $650 million in 2024 to support technology enhancement and business growth[256]. - The company maintains a Credit Facility to mitigate rollover risk associated with its Commercial Paper Program[251].

Exhibit 99.1 Intercontinental Exchange Reports Strong Second Quarter 2024 · 2Q24 GAAP diluted earnings per share (EPS) of $1.10, down 23% y/y "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 ef iciencies 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 le ...

What the Zacks Model Says Zacks Rank: ICE currently carries a Zacks Rank of 2. Cboe Global Markets, Inc. (CBOE) has an Earnings ESP of +0.44% and a Zacks Rank of 3 at present. The ACGL's earnings beat estimates in each of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Intercontinental Exchange Inc. (ICE) is slated to report second-quarter 2024 earnings on Aug 1, before market open. ICE delivered an earnings surprise in three of the last four quarters ...

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. IntercontinentalExcha ...

UKRAINE - 2023/03/15: In this photo illustration, Intercontinental Exchange (ICE) logo is seen on a ... [+] smartphone screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Intercontinental Exchange's stock (NYSE: ICE) has gained roughly 15% YTD, as compared to the 17% rise in the S&P500 over the same period. In sharp contrast, Intercontinental Exchange's peer CME Group (NASDAQ: CME) is up only 5% YTD. Overall, at the current price of ...

Blostein also highlights promising developments in the company's fixed-income data and analytics segment, which makes up about 22% of its earnings. The firm's annual subscription value (ASV) is recovering and flows into fixed-income funds are rebounding year-to-date, signaling accelerated growth in this area. Coupled with strong free cash flow conversion, this is likely to speed up de-leveraging and bolster share repurchases by the end of 2024. A Compelling Investment Opportunity Loading... Intercontinental ...