Q2 2024 Intercontinental Exchange Inc Earnings Call Transcript
Key Points
- Intercontinental Exchange Inc (ICE) reported record quarterly net revenues of $2.3 billion, a 7% increase year-over-year.
- Adjusted operating income increased by 11% year-over-year, reaching a record $1.4 billion.
- The energy segment saw a 33% year-over-year growth in revenues, driven by strong performance in oil, natural gas, and environmental markets.
- The Fixed Income and Data Services segment reported record recurring revenues of $457 million, growing by 5% year-over-year.
- The Mortgage Technology segment signed significant new clients, including JPMorgan Chase, indicating strong market confidence in ICE's offerings.
- Adjusted operating expenses increased by 1% year-over-year to $947 million, indicating rising costs.
- The mortgage origination market remains below historical levels, impacting the Mortgage Technology segment.
- Attrition within the data and document automation product (DDA) led to some revenue loss in the Mortgage Technology segment.
- Recurring revenue growth in the Mortgage Technology segment is expected to stabilize, but significant revenue synergies from recent acquisitions are not anticipated until 2025 or 2026.
- The company faces uncontrollable risks related to the movement of mortgage servicing rights, which can impact revenue unpredictably.
Good morning, everyone, and welcome to today's ICE's second-quarter earnings conference call. I will be your operator today.
These items will be archived and our call will be available for replay for today's call may contain forward-looking statements. These statements, which we undertake no obligation to update, represent our current judgment and are subject to risks, assumptions and uncertainties. For a description of the risks that could cause our results to differ materially from those described in forward-looking statements, please refer to our 2023 form 10-K 2024 second quarter Form 10-Q and other filings with the SEC.
In our earnings supplement, we refer to certain non-GAAP measures we believe our non-GAAP measures are reflective of our cash operations and core business performance. You'll find a reconciliation to the equivalent GAAP terms in our earnings materials. When used on this call, net revenue refers to revenue net of transaction-based expenses and adjusted earnings
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