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Intercontinental Exchange Reports Strong Full Year 2023 Results

Feb 08, 2024

18th consecutive year of record revenues

  • 2023 net revenues of $8.0 billion, +10% y/y
  • 2023 GAAP diluted EPS of $4.19, +62% y/y
  • 2023 adj. diluted EPS of $5.62, +6% y/y
  • Record 2023 operating income of $3.7 billion, +2% y/y; Record adj. operating income of $4.7 billion, +9% y/y
  • 2023 operating margin of 46%; adj. operating margin of 59%
  • Nearly $1 billion returned to stockholders through dividends in 2023
  • Completed the strategic acquisition of Black Knight on September 5, 2023

Jeffrey C. Sprecher,
ICE Chair & Chief Executive Officer, said,
"We are pleased to report our 18th consecutive year of record revenues and another year of earnings per share growth. A dynamic macro environment and strong secular tailwinds across our business continue to drive customers to our diverse, liquid markets and our mission-critical data and SaaS technologies to manage risk and capture efficiencies. As we look to 2024 and beyond, we remain focused on innovating across asset classes to serve the needs of our customers and deliver growth for our stockholders."

Intercontinental Exchange (NYSE: ICE): a leading global provider of technology and data, today reported financial results for the fourth quarter and full year of 2023. For the quarter ended December 31, 2023, consolidated net income attributable to ICE was $373 million on $2.2 billion of consolidated revenues less transaction-based expenses. Fourth quarter GAAP diluted earnings per share (EPS) was $0.65. Adjusted net income attributable to ICE was $760 million in the fourth quarter and adjusted diluted EPS was $1.33.

For the full year of 2023 consolidated net income attributable to ICE was $2.4 billion on $8.0 billion of consolidated revenues less transaction-based expenses. Full year 2023 GAAP diluted EPS was $4.19, up 62% year-over-year. On an adjusted basis, net income attributable to ICE for the year was $3.2 billion and adjusted diluted EPS was $5.62, up 6% year-over-year.

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: "In 2023, we once again generated record revenues and record operating income. This performance is a clear testament to the strength of our strategically diversified business model, which, through an array of macroeconomic environments, continues to deliver consistent and compounding growth for our stockholders. As we enter 2024, we remain well positioned to benefit from numerous cyclical tailwinds and secular trends."

Fourth Quarter and Full Year 2023 Business Highlights

Fourth quarter consolidated net revenues were $2.2 billion, up 25% year-over-year, including exchange net revenues of $1.1 billion, fixed income and data services revenues of $563 million and mortgage technology revenues of $502 million. Consolidated operating expenses were $1.3 billion for the fourth quarter of 2023. On an adjusted basis, consolidated operating expenses were $952 million. Consolidated operating income for the fourth quarter was $925 million and the operating margin was 42%. On an adjusted basis, consolidated operating income for the fourth quarter was $1.2 billion and the adjusted operating margin was 57%.

Full year 2023 consolidated net revenues were $8.0 billion, up 10% year-over-year, including exchange net revenues of $4.4 billion, fixed income and data services revenues of $2.2 billion and mortgage technology revenues of $1.3 billion. Consolidated operating expenses were $4.3 billion for 2023. On an adjusted basis, consolidated operating expenses were $3.3 billion. Consolidated operating income for the year was $3.7 billion and the operating margin was 46%. On an adjusted basis, consolidated operating income for the year was $4.7 billion and the adjusted operating margin was 59%.

$ (in millions)

Net
Revenue

Op
Margin

Adj Op
Margin

 

Net
Revenue

Op
Margin

Adj Op
Margin

 

Full Year 2023

 

4Q23

Exchanges

$4,440

71%

73%

 

$1,136

70%

72%

Fixed Income and Data Services

$2,231

36%

44%

 

$563

36%

43%

Mortgage Technology

$1,317

(21)%

39%

 

$502

(15)%

39%

Consolidated

$7,988

46%

59%

 

$2,201

42%

57%

 

 

 

 

 

 

 

 

 

FY23

FY22

% Chg

 

4Q23

4Q22

% Chg

Recurring Revenue

$4,138

$3,721

11%

 

$1,199

$940

28%

Transaction Revenue, net

$3,850

$3,571

8%

 

$1,002

$828

21%

Exchanges Segment Results

Fourth quarter exchange net revenues were $1.1 billion, up 16% year-over-year. Exchange operating expenses were $337 million and on an adjusted basis, were $321 million in the fourth quarter. Segment operating income for the fourth quarter was $799 million and the operating margin was 70%. On an adjusted basis, operating income was $815 million and the adjusted operating margin was 72%.

$ (in millions)

4Q23

4Q22

% Chg

Const
Curr(1)

Revenue, net:

 

 

 

 

Energy

$414

$278

48%

46%

Ags and Metals

63

56

13%

12%

Financials(2)

116

100

16%

11%

Cash Equities and Equity Options

99

92

7%

7%

OTC and Other(3)

89

103

(13)%

(14)%

Data and Connectivity Services

234

226

3%

3%

Listings

121

127

(4)%

(4)%

Segment Revenue

$1,136

$982

16%

14%

 

 

 

 

 

Recurring Revenue

$355

$353

1%

1%

Transaction Revenue, net

$781

$629

24%

22%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 4Q22, 1.1737 and 1.0211, respectively.

(2) Financials include interest rates and other financial futures and options.

(3) OTC & other primarily includes physical energy, interest income 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, technology development fees, exchange member fees, and agriculture grading and certification fees.

Full year exchange net revenues were $4.4 billion, up 9% year-over-year. Exchange operating expenses were $1.3 billion and on an adjusted basis, were $1.2 billion for the full year. Segment operating income for 2023 was $3.2 billion and the operating margin was 71%. On an adjusted basis, operating income was $3.2 billion and the adjusted operating margin was 73%.

$ (in millions)

FY23

FY22

% Chg

Const
Curr(1)

Revenue, net:

 

 

 

 

Energy

$1,498

$1,162

29%

28%

Ags and Metals

271

235

15%

15%

Financials(2)

460

475

(3)%

(3)%

Cash Equities and Equity Options

383

378

1%

1%

OTC and Other(3)

398

429

(7)%

(7)%

Data and Connectivity Services

933

877

6%

6%

Listings

497

515

(4)%

(4)%

Segment Revenue

$4,440

$4,071

9%

9%

 

 

 

 

 

Recurring Revenue

$1,430

$1,392

3%

3%

Transaction Revenue, net

$3,010

$2,679

12%

12%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2022, 1.2376 and 1.0540, respectively.

(2) Financials include interest rates and other financial futures and options.

(3) OTC & other primarily includes physical energy, interest income 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, technology development fees, exchange member fees, and agriculture grading and certification fees.

Fixed Income and Data Services Segment Results

Fourth quarter fixed income and data services revenues were $563 million, up 5% year-over-year. Fixed income and data services operating expenses were $363 million and adjusted operating expenses were $322 million in the fourth quarter. Segment operating income for the fourth quarter was $200 million and the operating margin was 36%. On an adjusted basis, operating income was $241 million and the adjusted operating margin was 43%.

$ (in millions)

4Q23

4Q22

% Chg

Const
Curr(1)

Revenue:

 

 

 

 

Fixed Income Execution

$35

$35

—%

—%

CDS Clearing

81

79

5%

4%

Fixed Income Data and Analytics

286

274

4%

4%

Other Data and Network Services

161

149

8%

7%

Segment Revenue

$563

$537

5%

4%

 

 

 

 

 

Recurring Revenue

$447

$423

5%

5%

Transaction Revenue

$116

$114

4%

3%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 4Q22, 1.1737 and 1.0211, respectively.

Full year 2023 fixed income and data services revenues were $2.2 billion, up 7% year-over-year. Fixed income and data services operating expenses were $1.4 billion and on an adjusted basis, were $1.3 billion for the year. Segment operating income for the full year was $811 million and the operating margin was 36%. On an adjusted basis, operating income was $979 million and the adjusted operating margin was 44%.

$ (in millions)

FY23

FY22

% Chg

Const
Curr(1)

Revenue:

 

 

 

 

Fixed Income Execution

$124

$101

23%

23%

CDS Clearing

360

305

18%

18%

Fixed Income Data and Analytics

1,118

1,098

2%

2%

Other Data and Network Services

629

588

7%

7%

Segment Revenue

$2,231

$2,092

7%

6%

 

 

 

 

 

Recurring Revenue

$1,747

$1,686

4%

3%

Transaction Revenue

$484

$406

20%

19%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2022, 1.2376 and 1.0540, respectively.

Mortgage Technology Segment Results

Fourth quarter mortgage technology revenues were $502 million. Mortgage technology operating expenses were $576 million and adjusted operating expenses were $309 million in the fourth quarter. Segment operating loss for the fourth quarter was $74 million and the operating margin was (15)%. On an adjusted basis, operating income was $193 million and the adjusted operating margin was 39%.

$ (in millions)

4Q23

4Q22

% Chg

Revenue:

 

 

 

Origination Technology

$170

$181

(6)%

Closing Solutions

43

44

(2)%

Servicing Software

219

n/a

Data and Analytics

70

24

192%

Segment Revenue

$502

$249

102%

 

 

 

 

Recurring Revenue

$397

$164

144%

Transaction Revenue

$105

$85

22%

Full year mortgage technology revenues were $1.3 billion. Mortgage technology operating expenses were $1.6 billion and adjusted operating expenses were $809 million in 2023. Segment operating loss for the full year was $276 million and the operating margin was (21)%. On an adjusted basis, operating income was $508 million and the adjusted operating margin was 39%.

$ (in millions)

FY23

FY22

% Chg

Revenue:

 

 

 

Origination Technology

$694

$798

(13)%

Closing Solutions

179

239

(25)%

Servicing Software

288

n/a

Data and Analytics

156

92

69%

Segment Revenue

$1,317

$1,129

17%

 

 

 

 

Recurring Revenue

$961

$643

50%

Transaction Revenue

$356

$486

(27)%

Other Matters

  • Operating cash flow for 2023 was $3.5 billion and adjusted free cash flow was $3.2 billion.
  • As of December 31, 2023, unrestricted cash was $899 million and outstanding debt was $22.6 billion.
  • ICE paid $955 million in dividends in 2023.

Financial Guidance

 

GAAP

Non-GAAP

2024 Exchange Recurring Revenue (% growth)

Low-single digits

2024 Fixed Income & Data Services Recurring Revenue (% growth)

Mid-single digits

2024 Mortgage Technology Revenue (% growth)

Low-to-mid single digits

2024 Operating Expenses

$4.775 - $4.820 billion

$3.81 - $3.86 billion(1)

1Q24 Operating Expenses

$1.175 - $1.185 billion

$930 - $940 million(1)

1Q24 Non-Operating Expense(2)

$245 - $250 million

$215 - $220 million

2024 Capital Expenditures

$600 - $650 million

2024 Effective Tax Rate

24% - 26%(3)

1Q24 Weighted Average Shares Outstanding

572 - 578 million shares

(1) 2024 and 1Q24 non-GAAP operating expenses exclude amortization of acquisition-related intangibles and integration expenses.

(2) Non-operating expense includes interest income, interest expense and net other income/expense. Adjusted non-operating expense excludes equity earnings from unconsolidated investees.

(3) This represents 2024 full year guidance for both the GAAP and non-GAAP effective tax rates but note that the GAAP effective tax rate is more susceptible to diverging from this guidance based on items outside the normal course of business that are adjusted for to derive our non-GAAP results. Such items can be unknown, unpredictable or uncertain, requiring unreasonable efforts to determine with any precision and which could potentially be confusing or misleading.

Earnings Conference Call Information

ICE will hold a conference call today, February 8, at 8:30 a.m. ET to review its fourth quarter 2023 financial results. A live audio webcast of the earnings call will be available on the company's website at www.theice.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 571937 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 first quarter 2024 earnings has been scheduled for May 2nd 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)

 

 

Twelve Months Ended

December 31,

Three Months Ended

December 31,

Revenues:

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Exchanges

$

6,355

 

$

6,415

 

$

1,601

 

$

1,591

 

Fixed income and data services

 

2,231

 

 

2,092

 

 

563

 

 

537

 

Mortgage technology

 

1,317

 

 

1,129

 

 

502

 

 

249

 

Total revenues

 

9,903

 

 

9,636

 

 

2,666

 

 

2,377

 

Transaction-based expenses:

 

 

 

 

Section 31 fees

 

293

 

 

499

 

 

62

 

 

167

 

Cash liquidity payments, routing and clearing

 

1,622

 

 

1,845

 

 

403

 

 

442

 

Total revenues, less transaction-based expenses

 

7,988

 

 

7,292

 

 

2,201

 

 

1,768

 

Operating expenses:

 

 

 

 

Compensation and benefits

 

1,595

 

 

1,407

 

 

492

 

 

349

 

Professional services

 

123

 

 

131

 

 

35

 

 

30

 

Acquisition-related transaction and integration costs

 

269

 

 

93

 

 

68

 

 

12

 

Technology and communication

 

734

 

 

683

 

 

205

 

 

170

 

Rent and occupancy

 

92

 

 

83

 

 

27

 

 

20

 

Selling, general and administrative

 

266

 

 

226

 

 

70

 

 

60

 

Depreciation and amortization

 

1,215

 

 

1,031

 

 

379

 

 

263

 

Total operating expenses

 

4,294

 

 

3,654

 

 

1,276

 

 

904

 

Operating income

 

3,694

 

 

3,638

 

 

925

 

 

864

 

Other income/(expense):

 

 

 

 

Interest income

 

319

 

 

108

 

 

32

 

 

66

 

Interest expense

 

(808

)

 

(616

)

 

(251

)

 

(176

)

Other income/(expense), net

 

(311

)

 

(1,322

)

 

(190

)

 

(190

)

Total other income/(expense), net

 

(800

)

 

(1,830

)

 

(409

)

 

(300

)

Income before income tax expense

 

2,894

 

 

1,808

 

 

516

 

 

564

 

Income tax expense

 

456

 

 

310

 

 

126

 

 

124

 

Net income

$

2,438

 

$

1,498

 

$

390

 

$

440

 

Net income attributable to non-controlling interest

 

(70

)

 

(52

)

 

(17

)

 

(15

)

Net income attributable to Intercontinental Exchange, Inc.

$

2,368

 

$

1,446

 

$

373

 

$

425

 

 

 

 

 

 

Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders:

 

 

 

 

Basic

$

4.20

 

$

2.59

 

$

0.65

 

$

0.76

 

Diluted

$

4.19

 

$

2.58

 

$

0.65

 

$

0.76

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

564

 

 

559

 

 

572

 

 

559

 

Diluted

 

565

 

 

561

 

 

574

 

 

560

 

 

Consolidated Balance Sheets

(In millions)

 

 

As of

As of

 

December 31, 2023

December 31, 2022

Assets:

 

 

Current assets:

 

 

Cash and cash equivalents

$

899

 

$

1,799

 

Short-term restricted cash and cash equivalents

 

531

 

 

6,149

 

Restricted short-term investments

 

680

 

 

 

Cash and cash equivalent margin deposits and guaranty funds

 

78,980

 

 

141,990

 

Invested deposits, delivery contracts receivable and unsettled variation margin

 

1,814

 

 

5,382

 

Customer accounts receivable, net

 

1,366

 

 

1,169

 

Prepaid expenses and other current assets

 

703

 

 

458

 

Total current assets

 

84,973

 

 

156,947

 

Property and equipment, net

 

1,923

 

 

1,767

 

Other non-current assets:

 

 

Goodwill

 

30,553

 

 

21,111

 

Other intangible assets, net

 

17,317

 

 

13,090

 

Long-term restricted cash and cash equivalents

 

340

 

 

405

 

Other non-current assets

 

978

 

 

1,018

 

Total other non-current assets

 

49,188

 

 

35,624

 

Total assets

$

136,084

 

$

194,338

 

 

 

 

Liabilities and Equity:

 

 

Current liabilities:

 

 

Accounts payable and accrued liabilities

$

1,003

 

$

866

 

Section 31 fees payable

 

79

 

 

223

 

Accrued salaries and benefits

 

459

 

 

352

 

Deferred revenue

 

200

 

 

170

 

Short-term debt

 

1,954

 

 

4

 

Margin deposits and guaranty funds

 

78,980

 

 

141,990

 

Invested deposits, delivery contracts payable and unsettled variation margin

 

1,814

 

 

5,382

 

Other current liabilities

 

137

 

 

184

 

Total current liabilities

 

84,626

 

 

149,171

 

Non-current liabilities:

 

 

Non-current deferred tax liability, net

 

4,080

 

 

3,493

 

Long-term debt

 

20,659

 

 

18,118

 

Accrued employee benefits

 

193

 

 

160

 

Non-current operating lease liability

 

299

 

 

254

 

Other non-current liabilities

 

441

 

 

381

 

Total non-current liabilities

 

25,672

 

 

22,406

 

Total liabilities

 

110,298

 

 

171,577

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Equity:

 

 

Intercontinental Exchange, Inc. stockholders’ equity:

 

 

Common stock

 

6

 

 

6

 

Treasury stock, at cost

 

(6,304

)

 

(6,225

)

Additional paid-in capital

 

15,953

 

 

14,313

 

Retained earnings

 

16,356

 

 

14,943

 

Accumulated other comprehensive loss

 

(294

)

 

(331

)

Total Intercontinental Exchange, Inc. stockholders’ equity

 

25,717

 

 

22,706

 

Non-controlling interest in consolidated subsidiaries

 

69

 

 

55

 

Total equity

 

25,786

 

 

22,761

 

Total liabilities and equity

$

136,084

 

$

194,338

 

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 Annual Report on Form 10-K, 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

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

Total revenues, less transaction-based expenses

$4,440

 

$4,071

 

$2,231

 

$2,092

 

$1,317

 

$1,129

 

$7,988

 

$7,292

Operating expenses

1,281

 

1,209

 

1,420

 

1,373

 

1,593

 

1,072

 

4,294

 

3,654

Less: Amortization of acquisition-related intangibles

65

 

67

 

168

 

180

 

515

 

363

 

748

 

610

Less: Transaction and integration costs

 

 

 

 

269

 

91

 

269

 

91

Less: Other

17

 

 

 

 

 

 

17

 

Adjusted operating expenses

$1,199

 

$1,142

 

$1,252

 

$1,193

 

$809

 

$618

 

$3,260

 

$2,953

Operating income/(loss)

$3,159

 

$2,862

 

$811

 

$719

 

$(276)

 

$57

 

$3,694

 

$3,638

Adjusted operating income

$3,241

 

$2,929

 

$979

 

$899

 

$508

 

$511

 

$4,728

 

$4,339

Operating margin

71%

 

70%

 

36%

 

34%

 

(21)%

 

5%

 

46%

 

50%

Adjusted operating margin

73%

 

72%

 

44%

 

43%

 

39%

 

45%

 

59%

 

59%

 

 

 

 

 

 

 

 

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
December 31,

 

Three Months Ended
December 31,

 

Three Months Ended
December 31,

 

Three Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

Total revenues, less transaction-based expenses

$1,136

 

$982

 

$563

 

$537

 

$502

 

$249

 

$2,201

 

$1,768

Operating expenses

337

 

305

 

363

 

344

 

576

 

255

 

1,276

 

904

Less: Amortization of acquisition-related intangibles

16

 

17

 

41

 

43

 

199

 

92

 

256

 

152

Less: Transaction and integration costs

 

 

 

 

68

 

12

 

68

 

12

Adjusted operating expenses

$321

 

$288

 

$322

 

$301

 

$309

 

$151

 

$952

 

$740

Operating income/(loss)

$799

 

$677

 

$200

 

$193

 

$(74)

 

$(6)

 

$925

 

$864

Adjusted operating income

$815

 

$694

 

$241

 

$236

 

$193

 

$98

 

$1,249

 

$1,028

Operating margin

70%

 

69%

 

36%

 

36%

 

(15)%

 

(2)%

 

42%

 

49%

Adjusted operating margin

72%

 

71%

 

43%

 

44%

 

39%

 

39%

 

57%

 

58%

 

Adjusted Net Income Attributable to ICE and EPS

(In millions)

(Unaudited)

 

 

Twelve Months Ended
December 31, 2023

 

Twelve Months Ended
December 31, 2022

Net income attributable to ICE common stockholders

$

2,368

 

 

$

1,446

 

Add: Amortization of acquisition-related intangibles

 

748

 

 

 

610

 

Add: Transaction and integration costs

 

269

 

 

 

91

 

Less: Gain on sale and fair value adjustment of equity investments

 

 

 

 

(41

)

Add: Net losses from and impairment of unconsolidated investees

 

122

 

 

 

1,340

 

Add/(less): Net interest (income)/expense on pre-acquisition-related debt and debt extinguishment

 

(12

)

 

 

89

 

Add: Other

 

196

 

 

 

9

 

Less: Net income tax effect for the above items and deferred tax adjustments

 

(309

)

 

 

(579

)

Add/(less): Deferred tax adjustments on acquisition-related intangibles

 

(126

)

 

 

9

 

Less: Other tax adjustments

 

(79

)

 

 

 

Adjusted net income attributable to ICE common stockholders

$

3,177

 

 

$

2,974

 

 

 

 

 

Diluted earnings per share attributable to ICE common stockholders

$

4.19

 

 

$

2.58

 

 

 

 

 

Adjusted diluted earnings per share attributable to ICE common stockholders

$

5.62

 

 

$

5.30

 

 

 

 

 

Diluted weighted average common shares outstanding

 

565

 

 

 

561

 

 

Adjusted Net Income Attributable to ICE and EPS

(In millions)

(Unaudited)

 

 

Three Months Ended
December 31, 2023

 

Three Months Ended
December 31, 2022

Net income attributable to ICE

$

373

 

 

$

425

 

Add: Amortization of acquisition-related intangibles

 

256

 

 

 

152

 

Add: Transaction and integration costs

 

68

 

 

 

12

 

Add: Net losses from and impairment of unconsolidated investees

 

31

 

 

 

188

 

Add: Net interest expense on pre-acquisition-related debt and debt extinguishment

 

 

 

 

10

 

Less: Other

 

156

 

 

 

 

Less: Net income tax effect for the above items and deferred tax adjustments

 

(131

)

 

 

(101

)

Add: Deferred tax adjustments on acquisition-related intangibles

 

5

 

 

 

12

 

Less: Other tax adjustments

 

2

 

 

 

 

Adjusted net income attributable to ICE

$

760

 

 

$

698

 

 

 

 

 

Diluted earnings per share

$

0.65

 

 

$

0.76

 

 

 

 

 

Adjusted diluted earnings per share

$

1.33

 

 

$

1.25

 

 

 

 

 

Diluted weighted average common shares outstanding

 

574

 

 

 

560

 

 

Adjusted Free Cash Flow Calculation

(In millions)

(Unaudited)

 

 

Twelve Months Ended
December 31, 2023

Twelve Months Ended
December 31, 2022

Net cash provided by operating activities

$3,542

 

$3,554

 

Less: Capital expenditures

(190

)

(225

)

Less: Capitalized software development costs

(299

)

(257

)

Free cash flow

3,053

 

3,072

 

Add/(Less): Section 31 fees, net

144

 

(166

)

Adjusted free cash flow

$3,197

 

$2,906

 

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

Category: Corporate

ICE-CORP

ICE Investor Relations Contact:
Katia Gonzalez
+1 678 981 3882
katia.gonzalez@ice.com

investors@ice.com

ICE Media Contact:
Josh King
+1 212 656 2490
josh.king@ice.com

media@ice.com

Source: Intercontinental Exchange

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