ICE Shatters Expectations with a $2 Billion Revenue Record

Thursday, 02/11/2023 | 12:33 GMT by Damian Chmiel

Net income for the reported period doubled compared to 2022.

The company finalized the acquisition of Black Knight and expanded its mortgage network.

Intercontinental Exchange (ICE) has announced a significant uptick in its financial metrics for the third quarter of 2023. The data and technology powerhouse's net revenues reached a record $2.0 billion, marking a year-over-year (YoY) increase of 11%. This financial surge is attributed to the strategic acquisition of Black Knight, a move that expanded ICE's mortgage network and fortified its growth trajectory.

Intercontinental Exchange Showcases Robust Growth in Q3 2023

The third quarter saw ICE's GAAP diluted earnings per share (EPS) climb to $0.96, with an adjusted EPS of $1.46. The operating income was reported at $845 million, a slight decrease from the previous year, but the adjusted operating income soared to $1.2 billion, reflecting a YoY growth of 10%. The operating margin stood firm at 42%, with an adjusted figure hitting 59%.

Jeffrey C. Sprecher, the Chairman and Chief Executive Officer, emphasized the company's resilience and adaptability, pivotal in maintaining growth momentum across diverse economic climates. "Our customers continue to rely on our mission-critical data and technology to manage risk and capture workflow efficiencies through an array of macroeconomic environments, reflecting the all-weather nature of our business model."

The company's revenue streams are diverse, with exchange net revenues of $1.1 billion, fixed income and data services revenues of $559 million, and mortgage technology revenues of $330 million. The exchange segment, in particular, demonstrated robust performance with an operating margin of 72%, while the fixed income and data services segment posted an adjusted operating margin of 44%.

Future Outlook and Strategic Moves

ICE forecasts its fourth-quarter GAAP operating expenses to be between $1.21 billion and $1.22 billion, with adjusted operating expenses slightly lower. The company's capital expenditures for the year have been adjusted to account for the inclusion of Black Knight in September 2023.

"We completed our strategic acquisition of Black Knight, expanding our mortgage network while also enhancing the resiliency of our long-term growth profile," Sprecher added. "As we look to balance of the year and beyond, we remain focused on continuing to drive innovation, deliver workflow efficiencies, and deliver value to our stockholders."

ICE is another major industry player that reported its financial results on Thursday. Finance Magnates previously informed that Broadridge began the 2024 fiscal year strongly, reporting an increase of 8% in total income.