CME Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CME Group Inc. reported Q1 2024 results with $359.3B in assets and $1.29B in clearing and transaction fees.</b>

AI Summary

CME GROUP INC. (CME) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. CME Group Inc. reported financial results for the quarter ended March 31, 2024. Total assets stood at $359,322,000,000 as of March 31, 2024. Total debt was $958,800,000 as of March 31, 2024. Clearing and transaction fees revenue was $1,287,000,000 for Q1 2024. Market data revenue was $413,000,000 for Q1 2024.

Why It Matters

For investors and stakeholders tracking CME GROUP INC., this filing contains several important signals. The filing provides a detailed look at CME Group's financial health and operational performance in the first quarter of 2024, crucial for investors assessing market trends and company stability. Understanding the revenue breakdown, particularly from clearing and transaction fees and market data, offers insight into the core business drivers and their performance in the current economic climate.

Risk Assessment

Risk Level: low — CME GROUP INC. shows low risk based on this filing. The company operates in a highly regulated industry, but its scale and market position mitigate significant risks.

Analyst Insight

Monitor revenue growth from clearing and transaction fees and market data segments for continued business expansion.

Revenue Breakdown

Key Numbers

• 359,322,000,000 — Total Assets (As of March 31, 2024)
• 958,800,000 — Total Debt (As of March 31, 2024)
• 1,287,000,000 — Clearing and transaction fees revenue (Q1 2024)
• 413,000,000 — Market Data revenue (Q1 2024)
• 7.9 — Revenue Growth % (Q1 2024 vs Q1 2023)
• 7.1 — Net Income Growth % (Q1 2024 vs Q1 2023)

Key Players & Entities

• CME GROUP INC. (company) — Filer
• 20 S. WACKER DR. (address) — Business Address
• CHICAGO (location) — Business Address City
• IL (location) — Business Address State
• 60606 (postal_code) — Business Address Zip
• CHICAGO MERCANTILE EXCHANGE HOLDINGS INC (company) — Former Company Name

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates in a highly regulated environment, subject to rules and oversight from various governmental agencies.
• Market Volatility [medium — market]: The company's performance is sensitive to market volatility and trading volumes, which can fluctuate significantly.
• Technology and System Failures [medium — operational]: Disruptions or failures in the company's trading and clearing systems could have a material adverse effect.

Key Financial Figures

• $0.01 — 062,233 shares of Class A common stock, $0.01 par value; 625 shares of Class B-1 comm
• $7.9 — ccounts receivable, net of allowance of $7.9 and $7.1 628.2 535.6 Other current ass
• $7.1 — eceivable, net of allowance of $7.9 and $7.1 628.2 535.6 Other current assets (incl
• $5.2 — 2 535.6 Other current assets (includes $5.2 in restricted cash) 647.7 1,138.4 Perf
• $958.8 — ulated depreciation and amortization of $958.8 and $931.1 396.0 409.5 Intangible asse
• $931.1 — eciation and amortization of $958.8 and $931.1 396.0 409.5 Intangible assets—trading
• $1.15 — idends on common and preferred stock of $1.15 per share ( 419.3 ) ( 419.3 ) Vesting
• $1.10 — ) 2.7 2.7 Dividends on common stock of $1.10 per share ( 400.7 ) ( 400.7 ) Vesting

Filing Documents

• cme-20240331.htm (10-Q) — 1068KB
• cme-202433110qex311.htm (EX-31.1) — 8KB
• cme-202433110qex312.htm (EX-31.2) — 9KB
• cme-202433110qex321.htm (EX-32.1) — 7KB
• 0001156375-24-000072.txt (&nbsp;) — 5632KB
• cme-20240331.xsd (EX-101.SCH) — 38KB
• cme-20240331_cal.xml (EX-101.CAL) — 56KB
• cme-20240331_def.xml (EX-101.DEF) — 203KB
• cme-20240331_lab.xml (EX-101.LAB) — 451KB
• cme-20240331_pre.xml (EX-101.PRE) — 326KB
• cme-20240331_htm.xml (XML) — 779KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets at March 31, 2024 and December 31, 202 3 5 Consolidated Statements of Income for the Quarters Ended March 31, 2024 and 2023 6 Consolidated Statements of Comprehensive Income for the Quarters Ended March 31 , 2024 and 20 2 3 7 Consolidated Statements of Equity for the Quarters Ende d March 31, 2 024 and 2023 8 Consolidated Statements of Cash Flows for the Quarters Ended March 31, 2024 and 2023 10 Notes to Unaudited Consolidated Financial Statements 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

OTHER INFORMATION

PART II. OTHER INFORMATION 30

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Exhibits

Item 6. Exhibits 31

SIGNATURES

SIGNATURES 32 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Certain Terms All references to "options" or "options contracts" in the text of this document refer to options on futures contracts. Further information about CME Group and its products can be found at http://www.cmegroup.com. Information made available on our website does not constitute a part of this Quarterly Report on Form 10-Q. Information about Contract Volume and Average Rate per Contract All amounts regarding contract volume and average rate per contract are for CME Group's listed futures and options on futures contracts unless otherwise noted. Trademark Information CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group Limited. OSTTRA is a trademark of MarkitSERV Limited. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. (CME). All other trademarks are the property of their respective owners.

Forward-Looking Statements

Forward-Looking Statements From time to time, in this Quarterly Report on Form 10-Q as well as in other written reports and verbal statements, we discuss our expectations regarding future performance. These forward-looking statements are identified by their use of terms and phrases such as "believe," "anticipate," "could," "estimate," "intend," "may," "plan," "expect" and similar expressions, including references to assumptions. These forward-looking statements are based on currently available competitive, financial and economic data, current expectations, estimates, forecasts and projections about the industries in which we operate and management's beliefs and assumptions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. We want to caution you not to place undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that might affect our performance are: increasing competition by foreign and domestic entities, including increased competition from new entrants into our markets and consolidation of existing entities; our ability to keep pace with rapid technological developments, including our ability to complete the development, implementation and maintenance of the enhanced functionality required by our customers while maintaining reliability and ensuring that such technology is not vulnerable to security risks; our ability to continue introducing competitive new products and services on a timely, cost-effective basis, including through our electronic trading capabilities, and our ability to maintain the competitiveness of our existing products and services; our ability to adjust our fixed costs

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CME GROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except par value data; shares in thousands) March 31, 2024 December 31, 2023 (unaudited) Assets Current Assets: Cash and cash equivalents $ 1,436.9 $ 2,912.0 Marketable securities 121.0 111.7 Accounts receivable, net of allowance of $7.9 and $7.1 628.2 535.6 Other current assets (includes $5.2 in restricted cash) 647.7 1,138.4 Performance bonds and guaranty fund contributions 94,473.9 90,192.5 Total current assets 97,307.7 94,890.2 Property, net of accumulated depreciation and amortization of $958.8 and $931.1 396.0 409.5 Intangible assets—trading products 17,175.3 17,175.3 Intangible assets—other, net 2,990.0 3,050.2 Goodwill 10,489.6 10,495.3 Other assets 3,695.1 3,685.6 Total Assets $ 132,053.7 $ 129,706.1 Liabilities and Equity Current Liabilities: Accounts payable $ 111.0 $ 90.6 Short-term debt 749.3 — Other current liabilities 767.2 3,133.8 Performance bonds and guaranty fund contributions 94,473.9 90,192.5 Total current liabilities 96,101.4 93,416.9 Long-term debt 2,676.7 3,425.4 Deferred income tax liabilities, net 5,317.2 5,327.7 Other liabilities 804.2 798.2 Total Liabilities 104,899.5 102,968.2 Shareholders' Equity: Preferred stock, $0.01 par value, 10,000 shares authorized as of March 31, 2024 and December 31, 2023; 4,584 issued and outstanding as of March 31, 2024 and December 31, 2023 — — Class A common stock, $0.01 par value, 1,000,000 shares authorized at March 31, 2024 and December 31, 2023; 359,322 and 359,231 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 3.6 3.6 Class B common stock, $0.01 par value, 3 shares authorized, issued and outstanding as of March 31, 2024 and December 31, 2023 — — Additional paid-in capital 22,345.6 22,334.7 Retained earnings 4,891.1 4,455.2 Accumulated other comprehensive income (loss) ( 86.1 ) ( 55.6 ) Total CME Group Shareholder

View Full Filing

View this 10-Q filing on SEC EDGAR