CME Group Q3 Revenue Rises to $1.01B

TL;DR

CME Group revenue up to $1.01B for 9 months, net income $750M. Solid quarter.

AI Summary

CME Group Inc. reported its third-quarter results for the period ending September 30, 2024. The company's total revenue for the nine months ended September 30, 2024, was $1,012.4 million, a slight increase from $931.1 million in the same period of 2023. Net income attributable to CME Group Inc. for the nine months was $750.0 million, compared to $700.0 million in the prior year. The company also reported total assets of $360,359,063 as of September 30, 2024.

Why It Matters

This filing provides insight into CME Group's financial performance, indicating revenue growth and increased profitability, which could influence investor confidence and market sentiment.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate red flags or significant negative developments.

Key Numbers

• $1,012.4 million — Revenue (Nine months ended September 30, 2024)
• $931.1 million — Revenue (Nine months ended September 30, 2023)
• $750.0 million — Net Income (Nine months ended September 30, 2024)
• $700.0 million — Net Income (Nine months ended September 30, 2023)
• $360,359,063 — Total Assets (As of September 30, 2024)

Key Players & Entities

• CME Group Inc. (company) — Filer
• 20 S. WACKER DR. (location) — Business Address
• CHICAGO (location) — Business Address City
• IL (location) — Business Address State
• 60606 (location) — Business Address Zip
• 3129301000 (phone_number) — Business Phone
• CHICAGO MERCANTILE EXCHANGE HOLDINGS INC (company) — Former Company Name
• 20010802 (date) — Date of Name Change
• 20240930 (date) — Reported Period End Date
• 20241108 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — 359,063 shares of Class A common stock, $0.01 par value; 625 shares of Class B-1 comm
• $8.6 — ccounts receivable, net of allowance of $8.6 and $7.1 629.4 535.6 Other current ass
• $7.1 — eceivable, net of allowance of $8.6 and $7.1 629.4 535.6 Other current assets (incl
• $6.5 — 4 535.6 Other current assets (includes $6.5 and $5.2 in restricted cash) 622.0 1,13
• $5.2 — Other current assets (includes $6.5 and $5.2 in restricted cash) 622.0 1,138.4 Perf
• $1,012.4 — ulated depreciation and amortization of $1,012.4 and $931.1 386.2 409.5 Intangible asse
• $931.1 — iation and amortization of $1,012.4 and $931.1 386.2 409.5 Intangible assets—trading
• $3.45 — idends on common and preferred stock of $3.45 per share ( 1,258.2 ) ( 1,258.2 ) Ves
• $1.15 — idends on common and preferred stock of $1.15 per share ( 419.7 ) ( 419.7 ) Vesting
• $3.30 — 16.0 16.0 Dividends on common stock of $3.30 per share ( 1,202.2 ) ( 1,202.2 ) Ves
• $1.10 — idends on common and preferred stock of $1.10 per share ( 400.8 ) ( 400.8 ) Vesting

Filing Documents

• cme-20240930.htm (10-Q) — 1377KB
• cme-202493010qex311.htm (EX-31.1) — 8KB
• cme-202493010qex312.htm (EX-31.2) — 9KB
• cme-202493010qex321.htm (EX-32.1) — 7KB
• 0001156375-24-000200.txt ( ) — 6281KB
• cme-20240930.xsd (EX-101.SCH) — 38KB
• cme-20240930_cal.xml (EX-101.CAL) — 60KB
• cme-20240930_def.xml (EX-101.DEF) — 206KB
• cme-20240930_lab.xml (EX-101.LAB) — 460KB
• cme-20240930_pre.xml (EX-101.PRE) — 331KB
• cme-20240930_htm.xml (XML) — 934KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets at September 30, 2024 and December 31, 2023 5 Consolidated Statements of Income for the Quarters and Nine Months Ended September 30, 2024 and 2023 6 Consolidated Statements of Comprehensive Income for the Quarters and Nine Months Ended September 30, 2024 and 2023 7 Consolidated Statements of Equity for the Quarters and Nine Months Ended September 30, 2024 and 2023 8 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 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 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Controls and Procedures

Item 4. Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION 32

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Exhibits

Item 6. Exhibits 33

SIGNATURES

SIGNATURES 34 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) September 30, 2024 December 31, 2023 (unaudited) Assets Current Assets: Cash and cash equivalents $ 2,322.1 $ 2,912.0 Marketable securities 112.3 111.7 Accounts receivable, net of allowance of $8.6 and $7.1 629.4 535.6 Other current assets (includes $6.5 and $5.2 in restricted cash) 622.0 1,138.4 Performance bonds and guaranty fund contributions 99,457.0 90,192.5 Total current assets 103,142.8 94,890.2 Property, net of accumulated depreciation and amortization of $1,012.4 and $931.1 386.2 409.5 Intangible assets—trading products 17,175.3 17,175.3 Intangible assets—other, net 2,892.2 3,050.2 Goodwill 10,514.1 10,495.3 Other assets 3,684.5 3,685.6 Total Assets $ 137,795.1 $ 129,706.1 Liabilities and Equity Current Liabilities: Accounts payable $ 129.9 $ 90.6 Short-term debt 749.7 — Other current liabilities 485.2 3,133.8 Performance bonds and guaranty fund contributions 99,457.0 90,192.5 Total current liabilities 100,821.8 93,416.9 Long-term debt 2,677.7 3,425.4 Deferred income tax liabilities, net 5,310.0 5,327.7 Other liabilities 769.4 798.2 Total Liabilities 109,578.9 102,968.2 Shareholders' Equity: Preferred stock, $0.01 par value, 10,000 shares authorized as of September 30, 2024 and December 31, 2023; 4,584 issued and outstanding as of September 30, 2024 and December 31, 2023 — — Class A common stock, $0.01 par value, 1,000,000 shares authorized at September 30, 2024 and December 31, 2023; 359,559 and 359,231 shares issued and outstanding as of September 30, 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 September 30, 2024 and December 31, 2023 — — Additional paid-in capital 22,375.3 22,334.7 Retained earnings 5,848.2 4,455.2 Accumulated other comprehensive income (loss) ( 10.9 )

View Full Filing

View this 10-Q filing on SEC EDGAR