Technology
Qualys Announces Second Quarter 2024 Financial Results
Published
5 months agoon
By
Revenue Growth of 8% Year-Over-Year
GAAP EPS: $1.17; Non-GAAP EPS: $1.52
FOSTER CITY, Calif., Aug. 6, 2024 /PRNewswire/ — Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the second quarter ended June 30, 2024. For the quarter, the Company reported revenues of $148.7 million, net income under United States Generally Accepted Accounting Principles (“U.S. GAAP”) of $43.8 million, non-GAAP net income of $56.9 million, Adjusted EBITDA of $69.9 million, GAAP net income per diluted share of $1.17, and non-GAAP net income per diluted share of $1.52.
“We delivered a strong quarter of rapid innovation on the Qualys Enterprise TruRisk Platform, reflecting our ongoing commitment to extend our technology leadership and customer success,” said Sumedh Thakar, president and CEO of Qualys. “Our comprehensive multi-sensor architecture and rapid innovation engine underscore our growing thought leadership and the value proposition we deliver to customers seeking to transform, consolidate, and fortify their security posture. We believe Qualys has created strong competitive differentiation and is strategically well positioned as the foundational risk management platform for the future with multiple avenues to drive sustainable long-term growth.”
Second Quarter 2024 Financial Highlights
Revenues: Revenues for the second quarter of 2024 increased by 8% to $148.7 million compared to $137.2 million for the same quarter in 2023.
Gross Profit: GAAP gross profit for the second quarter of 2024 increased by 11% to $122.3 million compared to $110.5 million for the same quarter in 2023. GAAP gross margin was 82% for the second quarter of 2024 compared to 81% for the same quarter in 2023. Non-GAAP gross profit for the second quarter of 2024 increased by 11% to $124.9 million compared to $113.0 million for the same quarter in 2023. Non-GAAP gross margin was 84% for the second quarter of 2024 compared to 82% for the same quarter in 2023.
Operating Income: GAAP operating income for the second quarter of 2024 increased by 12% to $48.1 million compared to $42.8 million for the same quarter in 2023. As a percentage of revenues, GAAP operating income was 32% for the second quarter of 2024 compared to 31% for the same quarter in 2023. Non-GAAP operating income for the second quarter of 2024 increased by 11% to $65.9 million compared to $59.6 million for the same quarter in 2023. As a percentage of revenues, non-GAAP operating income was 44% for the second quarter of 2024 compared to 43% for the same quarter in 2023.
Net Income: GAAP net income for the second quarter of 2024 increased by 24% to $43.8 million, or $1.17 per diluted share, compared to $35.4 million, or $0.95 per diluted share, for the same quarter in 2023. As a percentage of revenues, GAAP net income was 29% for the second quarter of 2024 compared to 26% for the same quarter in 2023. Non-GAAP net income for the second quarter of 2024 was $56.9 million, or $1.52 per diluted share, compared to $47.5 million, or $1.27 per diluted share, for the same quarter in 2023. As a percentage of revenues, non-GAAP net income was 38% for the second quarter of 2024 compared to 35% for the same quarter in 2023.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2024 increased by 6% to $69.9 million compared to $65.8 million for the same quarter in 2023. As a percentage of revenues, Adjusted EBITDA was 47% for the second quarter of 2024 compared to 48% for the same quarter in 2023.
Operating Cash Flow: Operating cash flow for the second quarter of 2024 decreased by 3% to $49.8 million compared to $51.5 million for the same quarter in 2023. As a percentage of revenues, operating cash flow was 34% for the second quarter of 2024 compared to 38% for the same quarter in 2023.
Second Quarter 2024 Business Highlights
Reinforced Qualys’ commitment to the Managed Security Service Provider (MSSP) channel by launching a new global MSSP portal to streamline partner operations with a single-user interface that helps accelerate client acquisition and growth.Delivered CyberSecurity Asset Management 3.0 with significant External Attack Surface Management (EASM) enhancements for an accurate, real-time view of asset inventory that reduces false positives.Qualys’ VMDR was named the best vulnerability management solution by the prestigious SC Awards Europe.Expanded our focus on the government sector by accelerating support for federal zero-trust strategies through automated asset visibility and attack surface risk management aligning with the Federal Information Security Modernization Act (FISMA) guidelines. Additionally, Qualys hosted more than 200 attendees at its first Public Sector Cyber Risk Conference in Washington, D.C., with notable speakers from the public sector.Introduced Qualys’ Containerized Scanner Appliance (QCSA) providing agility, flexibility, scalability, isolation, and standardization of Docker containers, an invaluable tool for modern IT environments.Expanded File Integrity Monitoring (FIM) to support network devices, providing customers with comprehensive tracking of file and folder changes, as well as critical file access. This includes real-time File Access Monitoring and Agentless FIM to help organizations achieve Payment Card Industry – Data Security Standard (PCI DSS) 4.0 compliance.
Financial Performance Outlook
Based on information as of today, August 6, 2024, Qualys is issuing the following financial guidance for the third quarter and full year fiscal 2024. The Company emphasizes that the guidance is subject to various important cautionary factors referenced in the sections entitled “Legal Notice Regarding Forward-Looking Statements” and “Non-GAAP Financial Measures” below.
Third Quarter 2024 Guidance: Management expects revenues for the third quarter of 2024 to be in the range of $149.8 million to $151.8 million, representing 5% to 7% growth over the same quarter in 2023. GAAP net income per diluted share is expected to be in the range of $0.85 to $0.93, which assumes an effective income tax rate of 22%. Non-GAAP net income per diluted share is expected to be in the range of $1.28 to $1.36, which assumes a non-GAAP effective income tax rate of 21%. Third quarter 2024 net income per diluted share estimates are based on approximately 37.4 million weighted average diluted shares outstanding for the quarter.
Full Year 2024 Guidance: Management now expects revenues for the full year of 2024 to be in the range of $597.5 million to $601.5 million, representing 8% growth over 2023. This compares to the previous guidance range of $601.5 million to $608.5 million. GAAP net income per diluted share is expected to be in the range of $3.85 to $4.01, up from the previous guidance range of $3.26 to $3.50. This assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $5.46 to $5.62, up from the previous guidance range of $5.06 to $5.30. This assumes a non-GAAP effective income tax rate of 21%. Full year 2024 net income per diluted share estimates are based on approximately 37.5 million weighted average diluted shares outstanding.
Qualys has not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share guidance because Qualys does not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation, amortization of intangible assets from acquisitions and non-recurring items). The actual dollar amount of reconciling items in the third quarter and full year 2024 is likely to have a significant impact on the Company’s GAAP net income per diluted share in the third quarter and full year 2024. A reconciliation of the non-GAAP net income per diluted share guidance to the GAAP net income per diluted share guidance is not available without unreasonable effort.
Investor Conference Call
Qualys will host a conference call and live webcast to discuss its second quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, August 6, 2024. To access the conference call by phone, please register here. A live webcast of the earnings conference call, investor presentation and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.
Investor Contact
Blair King
Vice President, Investor Relations and Corporate Development
(650) 538-2088
ir@qualys.com
About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a leading provider of disruptive cloud-based Security, Compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.
The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security companies, Qualys has strategic partnerships and seamlessly integrates its vulnerability management capabilities into security offerings from cloud service providers, including Amazon Web Services, the Google Cloud Platform and Microsoft Azure, along with a number of leading managed service providers and global consulting organizations. For more information, please visit www.qualys.com.
Qualys, Qualys VMDR® and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, quotations of management and statements related to: the benefits of our existing, new and upcoming products, features, integrations, acquisitions, collaborations and joint solutions, and their impact upon our long-term growth; our ability to advance our value proposition and competitive differentiation in the market; our ability to address demand trends; our ability to maintain and strengthen our category leadership; our ability to solve modern security challenges at scale; our strategies and ability to achieve and maintain durable profitable growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the third quarter and full year 2024; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the third quarter and full year 2024. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles and seasonal buying patterns of our customers; general market, political, economic and business conditions in the United States as well as globally; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates; unexpected fluctuations in our effective income tax rate on a GAAP and non-GAAP basis; our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; and any unanticipated accounting charges. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, Qualys provides investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA (defined as earnings before interest expense, interest income and other income (expense), net, income taxes, depreciation, amortization, and stock-based compensation) and non-GAAP free cash flows (defined as cash provided by operating activities less purchases of property and equipment, net of proceeds from disposal).
In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, non-recurring items and for non-GAAP net income, certain tax effects. Qualys believes that these non-GAAP financial measures help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows.
Furthermore, Qualys uses some of these non-GAAP financial measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.
Although Qualys does not focus on or use quarterly billings in managing or monitoring the performance of its business, Qualys provides calculated current billings (defined as total revenues recognized in a period plus the sequential change in current deferred revenue in the corresponding period) for the convenience of investors and analysts in building their own financial models.
In order to provide a more complete picture of recurring core operating business results, the Company’s non-GAAP net income and non-GAAP net income per diluted share include adjustments for non-recurring income tax items and certain tax effects of non-GAAP adjustments to achieve the effective income tax rate on a non-GAAP basis. The Company’s non-GAAP effective tax rate may differ from the GAAP effective income tax rate as a result of these income tax adjustments. The Company believes its estimated non-GAAP effective income tax rate of 21% in 2024 is a reasonable estimate under its current global operating structure and core business operations. The Company may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective income tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenues
$ 148,708
$ 137,209
$ 294,513
$ 267,892
Cost of revenues (1)
26,415
26,662
53,613
53,616
Gross profit
122,293
110,547
240,900
214,276
Operating expenses:
Research and development (1)
27,119
27,424
54,649
55,219
Sales and marketing (1)
32,146
26,241
61,554
51,869
General and administrative (1)
14,960
14,055
31,868
29,183
Total operating expenses
74,225
67,720
148,071
136,271
Income from operations
48,068
42,827
92,829
78,005
Other income (expense), net:
Interest income
6,703
3,809
12,826
6,206
Other expense, net
(587)
(959)
(1,986)
(1,175)
Total other income, net
6,116
2,850
10,840
5,031
Income before income taxes
54,184
45,677
103,669
83,036
Income tax provision
10,412
10,295
20,166
18,549
Net income
$ 43,772
$ 35,382
$ 83,503
$ 64,487
Net income per share:
Basic
$ 1.19
$ 0.96
$ 2.26
$ 1.75
Diluted
$ 1.17
$ 0.95
$ 2.22
$ 1.72
Weighted average shares used in computing net income per share:
Basic
36,915
36,842
36,935
36,954
Diluted
37,464
37,435
37,594
37,551
(1) Includes stock-based compensation as follows:
Cost of revenues
$ 1,866
$ 1,717
$ 3,886
$ 3,309
Research and development
5,160
5,103
10,463
10,063
Sales and marketing
3,632
2,897
7,371
5,351
General and administrative
6,428
6,288
14,397
13,315
Total stock-based compensation, net of
amounts capitalized
$ 17,086
$ 16,005
$ 36,117
$ 32,038
Qualys, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
June 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$ 281,205
$ 203,665
Restricted cash
—
1,500
Short-term marketable securities
112,004
221,893
Accounts receivable, net
109,584
146,226
Prepaid expenses and other current assets
31,266
26,714
Total current assets
534,059
599,998
Long-term marketable securities
162,058
56,644
Property and equipment, net
27,758
32,599
Operating leases – right of use asset
44,100
22,391
Deferred tax assets, net
70,433
62,761
Intangible assets, net
8,172
9,715
Goodwill
7,447
7,447
Noncurrent restricted cash
1,200
1,200
Other noncurrent assets
21,373
19,863
Total assets
$ 876,600
$ 812,618
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$ 1,277
$ 988
Accrued liabilities
36,095
43,096
Deferred revenues, current
324,334
333,267
Operating lease liabilities, current
10,123
11,857
Total current liabilities
371,829
389,208
Deferred revenues, noncurrent
28,812
31,671
Operating lease liabilities, noncurrent
40,437
16,885
Other noncurrent liabilities
7,727
6,680
Total liabilities
448,805
444,444
Stockholders’ equity:
Common stock
37
37
Additional paid-in capital
623,939
597,921
Accumulated other comprehensive loss
(534)
(1,704)
Accumulated deficit
(195,647)
(228,080)
Total stockholders’ equity
427,795
368,174
Total liabilities and stockholders’ equity
$ 876,600
$ 812,618
Qualys, Inc
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
2024
2023
Cash flow from operating activities:
Net income
$ 83,503
$ 64,487
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
10,019
14,446
Provision for credit losses
277
160
Loss on non-marketable securities
—
533
Stock-based compensation, net of amounts capitalized
36,117
32,038
Accretion of discount on marketable securities, net
(3,520)
(1,412)
Deferred income taxes
(8,165)
(9,122)
Changes in operating assets and liabilities:
Accounts receivable
36,365
(3,277)
Prepaid expenses and other assets
(4,489)
(7,450)
Accounts payable
229
(813)
Accrued liabilities and other noncurrent liabilities
(3,215)
8,736
Deferred revenues
(11,792)
20,002
Net cash provided by operating activities
135,329
118,328
Cash flow from investing activities:
Purchases of marketable securities
(191,812)
(159,392)
Sales and maturities of marketable securities
198,250
167,120
Purchases of property and equipment
(3,077)
(5,455)
Net cash provided by investing activities
3,361
2,273
Cash flow from financing activities:
Repurchase of common stock
(53,017)
(108,817)
Proceeds from exercise of stock options
5,970
7,148
Payments for taxes related to net share settlement of equity awards
(17,711)
(9,494)
Proceeds from issuance of common stock through employee stock purchase plan
3,608
2,988
Payment of acquisition-related holdback
(1,500)
—
Net cash used in financing activities
(62,650)
(108,175)
Net increase in cash, cash equivalents and restricted cash
76,040
12,426
Cash, cash equivalents and restricted cash at beginning of period
206,365
176,419
Cash, cash equivalents and restricted cash at end of period
$ 282,405
$ 188,845
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
ADJUSTED EBITDA
(unaudited)
(in thousands, except percentages)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Net income
$ 43,772
$ 35,382
$ 83,503
$ 64,487
Net income as a percentage of revenues
29 %
26 %
28 %
24 %
Depreciation and amortization of property and equipment
4,009
6,230
8,476
12,902
Amortization of intangible assets
771
772
1,543
1,544
Income tax provision
10,412
10,295
20,166
18,549
Stock-based compensation
17,086
16,005
36,117
32,038
Total other income, net
(6,116)
(2,850)
(10,840)
(5,031)
Adjusted EBITDA
$ 69,934
$ 65,834
$ 138,965
$ 124,489
Adjusted EBITDA as a percentage of revenues
47 %
48 %
47 %
46 %
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
GAAP Cost of revenues
$ 26,415
$ 26,662
$ 53,613
$ 53,616
Less: Stock-based compensation
(1,866)
(1,717)
(3,886)
(3,309)
Less: Amortization of intangible assets
(746)
(747)
(1,493)
(1,494)
Non-GAAP Cost of revenues
$ 23,803
$ 24,198
$ 48,234
$ 48,813
GAAP Gross profit
$ 122,293
$ 110,547
$ 240,900
$ 214,276
Plus: Stock-based compensation
1,866
1,717
3,886
3,309
Plus: Amortization of intangible assets
746
747
1,493
1,494
Non-GAAP Gross Profit
$ 124,905
$ 113,011
$ 246,279
$ 219,079
GAAP Research and development
$ 27,119
$ 27,424
$ 54,649
$ 55,219
Less: Stock-based compensation
(5,160)
(5,103)
(10,463)
(10,063)
Less: Amortization of intangible assets
(25)
(25)
(50)
(50)
Non-GAAP Research and development
$ 21,934
$ 22,296
$ 44,136
$ 45,106
GAAP Sales and marketing
$ 32,146
$ 26,241
$ 61,554
$ 51,869
Less: Stock-based compensation
(3,632)
(2,897)
(7,371)
(5,351)
Non-GAAP Sales and marketing
$ 28,514
$ 23,344
$ 54,183
$ 46,518
GAAP General and administrative
$ 14,960
$ 14,055
$ 31,868
$ 29,183
Less: Stock-based compensation
(6,428)
(6,288)
(14,397)
(13,315)
Non-GAAP General and administrative
$ 8,532
$ 7,767
$ 17,471
$ 15,868
GAAP Operating expenses
$ 74,225
$ 67,720
$ 148,071
$ 136,271
Less: Stock-based compensation
(15,220)
(14,288)
(32,231)
(28,729)
Less: Amortization of intangible assets
(25)
(25)
(50)
(50)
Non-GAAP Operating expenses
$ 58,980
$ 53,407
$ 115,790
$ 107,492
GAAP Income from operations
$ 48,068
$ 42,827
$ 92,829
$ 78,005
Plus: Stock-based compensation
17,086
16,005
36,117
32,038
Plus: Amortization of intangible assets
771
772
1,543
1,544
Non-GAAP Income from operations
$ 65,925
$ 59,604
$ 130,489
$ 111,587
GAAP Net income
$ 43,772
$ 35,382
$ 83,503
$ 64,487
Plus: Stock-based compensation
17,086
16,005
36,117
32,038
Plus: Amortization of intangible assets
771
772
1,543
1,544
Less: Tax adjustment
(4,717)
(4,704)
(9,513)
(9,440)
Non-GAAP Net income
$ 56,912
$ 47,455
$ 111,650
$ 88,629
GAAP Net income per share:
Basic
$ 1.19
$ 0.96
$ 2.26
$ 1.75
Diluted
$ 1.17
$ 0.95
$ 2.22
$ 1.72
Non-GAAP Net income per share:
Basic
$ 1.54
$ 1.29
$ 3.02
$ 2.40
Diluted
$ 1.52
$ 1.27
$ 2.97
$ 2.36
Weighted average shares used in GAAP and non-GAAP net income per share:
Basic
36,915
36,842
36,935
36,954
Diluted
37,464
37,435
37,594
37,551
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
FREE CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
2024
2023
GAAP Cash flows provided by operating activities
$ 135,329
$ 118,328
Less:
Purchases of property and equipment, net of proceeds from disposal
(3,077)
(5,455)
Non-GAAP Free cash flows
$ 132,252
$ 112,873
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
CALCULATED CURRENT BILLINGS
(unaudited)
(in thousands, except percentages)
Three Months Ended
June 30,
2024
2023
GAAP Revenue
$ 148,708
$ 137,209
GAAP Revenue growth compared to same quarter of prior year
8 %
14 %
Plus: Current deferred revenue at June 30
324,334
302,446
Less: Current deferred revenue at March 31
(332,128)
(296,516)
Non-GAAP Calculated current billings
$ 140,914
$ 143,139
Calculated current billings growth compared to same quarter of prior year
(2 %)
11 %
View original content:https://www.prnewswire.com/news-releases/qualys-announces-second-quarter-2024-financial-results-302214920.html
SOURCE Qualys, Inc.
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PITTSBURGH and SUNNYVALE, Calif., Jan. 6, 2025 /PRNewswire/ — Ansys (NASDAQ: ANSS) and Synopsys (NASDAQ: SNPS) today announced that Ansys has entered into a definitive agreement for the sale of its PowerArtist™ business to Keysight Technologies, Inc. (NYSE: KEYS), a global leader in design and simulation software for semiconductors, electronics and high-performance systems. The transaction is subject to customary closing conditions, including review by regulatory authorities, and the closing of Synopsys’ proposed acquisition of Ansys, which is pending regulatory approvals and expected to close in the first half of 2025. Ansys and Synopsys determined that the sale of PowerArtist was necessary to obtain regulatory approval for Synopsys’ proposed acquisition of Ansys.
PowerArtist is a comprehensive RTL design-for-power platform used by semiconductor companies for early-stage power analysis, profiling and reduction. Compared to traditional gate-level methodologies, PowerArtist provides rapid turnaround on multimillion instance designs—enabling power-related design decisions at an earlier stage of the design process.
“We are proud of the role PowerArtist has played to advance low power innovation across semiconductor design applications,” said John Lee, vice president and general manager, electronics semiconductor and optics business unit at Ansys. “PowerArtist will continue to flourish as part of Keysight’s portfolio as a leading, independent RTL power product agnostic of vendor-specific design implementation flows.”
Keysight is a major supplier to semiconductor and electronics companies worldwide. Its planned acquisition of the PowerArtist business furthers its strategy to expand its position in the high-performance system design and simulation software sector.
“Our acquisition of the RTL design-for-power solution from Ansys will further expand our portfolio of design engineering software solutions,” said Niels Faché, vice president and general manager, Keysight Design Engineering Software. “We look forward to strengthening our offering in digital systems and welcoming the PowerArtist team to Keysight.”
The sale of PowerArtist is not material to Ansys’ financials, and terms of the agreement were not disclosed. The parties are committed to having a seamless transition for the Ansys PowerArtist team, customers and partners. During the interim period until the transaction closes, Ansys will continue to offer Ansys PowerArtist as part of its product line, and is committed to providing the same high-quality service its customers have come to expect.
Cautionary Statement Regarding Forward-Looking Statements
This release may contain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Ansys’ and Synopsys’ current expectations, estimates and projections about the expected date of the closing of the proposed transaction with Synopsys and the proposed divestiture of PowerArtist and the potential benefits thereof, its business and industry, management’s beliefs and certain assumptions made by Ansys and Synopsys, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the consummation of the proposed transactions, the anticipated benefits thereof, and any filing or action required to consummate the transactions on a timely basis or at all. There are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the completion of the proposed transactions on anticipated terms and timing, including obtaining regulatory approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of Ansys’ business and other conditions to the completion of the transactions; (ii) failure to realize the anticipated benefits of the proposed transactions, including as a result of delay in completing the transactions or integrating the businesses of Ansys and Synopsys; (iii) Ansys’ ability to implement its business strategy; (iv) pricing trends, including Ansys’ and Synopsys’ ability to achieve economies of scale; (v) potential litigation relating to the proposed transactions that could be instituted against Ansys, Synopsys or their respective directors; (vi) the risk that disruptions from the proposed transactions will harm Ansys’ or Synopsys’ business, including current plans and operations; (vii) the ability of Ansys or Synopsys to retain and hire key personnel; (viii) potential adverse reactions or changes to business relationships resulting from the announcement, pendency or completion of the proposed transactions; (ix) legislative, regulatory and economic developments affecting Ansys’ and Synopsys’ businesses; (x) general economic and market developments and conditions; (xi) the evolving legal, regulatory and tax regimes under which Ansys and Synopsys operate; (xii) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transactions that could affect Ansys’ or Synopsys’ financial performance; and (xiii) restrictions on Ansys’ or Synopsys’ operations during the pendency of the proposed transactions that may impact Ansys’ or Synopsys’ ability to pursue certain business opportunities or strategic transactions, as well as Ansys’ and Synopsys’ response to any of the aforementioned factors. The risks associated with the proposed Synopsys transaction are more fully discussed in the proxy statement/prospectus filed with the Securities and Exchange Commission (the “SEC”) in connection with the proposed Synopsys transaction. While the list of factors presented here is, and the list of factors presented in the proxy statement/prospectus are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Ansys’ or Synopsys’ consolidated financial condition, results of operations, or liquidity. Neither Ansys nor Synopsys assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
/ About Ansys
Our Mission: Powering Innovation that Drives Human Advancement™
When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.
Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.
ANSS–T
/ About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq: SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.
/ Ansys Contacts
Media Mary Kate Joyce
724.820.4368
marykate.joyce@ansys.com
Investors Kelsey DeBriyn
724.820.3927
kelsey.debriyn@ansys.com
/ Synopsys Contacts
Media Cara Walker
corp-pr@synopsys.com
Investors Trey Campbell
synopsys-ir@synopsys.com
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SOURCE Synopsys, Inc.
Technology
LG UNVEILS A DAY IN A LIFE WITH “AFFECTIONATE INTELLIGENCE” AT LG WORLD PREMIERE
Published
40 minutes agoon
January 6, 2025By
Company Showcases Future of AI-Powered Customer Experiences Through CEO Keynote and Immersive Storytelling
LAS VEGAS, Jan. 6, 2025 /PRNewswire/ — LG Electronics (LG) unveiled its vision for AI-powered customer experiences themed “Life’s Good 24/7 with Affectionate Intelligence” at the LG World Premiere event in Las Vegas on January 6, the eve of CES 2025, widely regarded as the world’s most influential tech event.
Over 1,000 attendees, including global media and partners, were present at the press conference, which was also livestreamed online. To showcase the full scope of LG’s Affectionate Intelligence-powered customer experience, the event stage was divided into three areas representing the various spaces in people’s lives, from the home to mobility and commercial spaces. The company, through engaging demonstrations highlighting real-life scenarios, made clear how its advanced AI will transform daily life for the better.
LG “Affectionate Intelligence” is redefining the conventional, technical understanding of AI by focusing on its potential to revolutionize the customer experience paradigm. This concept leverages AI technology to better understand and empathize with customers, delivering more personalized and differentiated experiences.
The LG World Premiere kicked off with a video titled “Less Artificial, More Human,” followed by a keynote speech delivered by LG CEO William Cho.
“At LG, we’re seamlessly integrating AI into physical living spaces around us. We see space not merely as a physical location but as an environment where holistic experiences come to life – across the Home, Mobility, Commercial and even Virtual spaces,” said CEO Cho. “In these spaces, devices and services will harmonize to create entirely new customer value. This is where our Affectionate Intelligence truly shines, clearly standing out from the others.”
Cho then highlighted three fundamental elements to realize this vision: connected devices, capable AI agents and integrated services.
Connected devices, which serve as the customer touchpoint for AI, are one of LG’s greatest assets. Not only are there hundreds of millions of LG smart products already in use worldwide, but with last year’s acquisition of smart home solutions provider Athom, LG now offers seamless connectivity with IoT devices from over 170 global brands.
As for AI agents, LG is set to advance its AI agent, LG FURON, which combines the power of generative AI built on large language models with real-time spatial sensing and insights into customer lifestyle patterns. This innovative AI agent can understand customer situations and contexts in real-time, effortlessly coordinating devices and services to provide a more tailored and responsive user experience, all while protecting personal data.
Empowering AI-Based Integrated Services with Microsoft
To support his vision of providing compelling integrated services, CEO Cho announced a strategic partnership with Microsoft. The plan is to lead innovation by combining LG’s products and customer insights from various spaces, such as the home, mobility and commercial areas, with Microsoft’s AI technology to implement empathetic AI integrated services.
Judson Althoff, executive vice president and chief commercial officer at Microsoft, shared, “At Microsoft, we believe AI will fundamentally change the way we live and work, and we could not be more excited to partner with LG Electronics – the pioneers of smart, connected spaces – to integrate AI into life’s everyday experiences.”
The two companies are working on enhancing AI agents for various spaces, including homes, vehicles, hotels and offices. LG has been applying Microsoft’s voice recognition and speech synthesis technologies to its Self-Driving AI Home Hub, enabling it to understand diverse accents, pronunciations and colloquial expressions. Plans also include developing AI agents that not only understand and interact with customers but also predict their needs and preferences.
Althoff also announced further Microsoft collaboration with LG in the rapidly growing field of AI data centers. With LG’s thermal management systems and advanced chiller technologies optimized for AI data centers, the partnership aims to enhance energy efficiency in these critical backbones of AI infrastructure. Together, the companies plan to create next-generation data centers that are more efficient and sustainable.
Bringing AI Vision to Life
Illustrating Cho’s Affectionate Intelligence vision, LG captivated the audience with a short play about a family’s day from morning to night. Departing from the traditional product presentation speech format, this vivid portrayal demonstrated how LG’s AI innovations unveiled at CES 2025 and driven by the vision of “Better Life for All,” seamlessly enhance everyday life across various spaces.
In the morning scene, LG’s AI agent, FURON, highlights its personalized capabilities: “I noticed some coughing last night, so I adjusted the room temperature for your comfort.” Beyond environmental adjustments, FURON demonstrates thoughtful assistance, suggesting, “You don’t have any plans this afternoon – why not accompany your mother to her scheduled health check-up?”
The morning commute further highlights the convenience of AI integration. In the car, LG’s AI-powered in-cabin sensing solution detects when the driver forgets their coffee tumbler, asking, “Would you like to stop by a café two minutes away for coffee?” It also monitors biometric signals, responding to an elevated heart rate before an afternoon meeting by playing soothing music to help the driver relax. The system also proactively suggests rerouting to avoid accidents and recommends holding a video conference inside the vehicle if traffic delays risk causing the driver to miss an important meeting. Upon arriving at the office, the AI adds a personal touch, such as displaying previously recorded family vacation footage on the car’s internal and external cameras.
After work, the living room TV equipped with AI technology enhances the home entertainment experience. It analyzes the viewing environment, patterns and history to recommend tailored content. If the customer mentions difficulty hearing dialogue in a video, the AI adjusts the audio, enhancing voice clarity by isolating it from background noise and making it sound as though it’s coming naturally from the center of the TV screen.
Seamless and Holistic Customer Experiences Anytime, Anywhere, Seen or Unseen
Concluding his keynote address, CEO Cho emphasized AI’s role in driving transformative change across both B2C (business-to-consumer) and B2B (business-to-business) sectors.
He highlighted innovative initiatives like the LG Smart Cottage, a compact modular home that integrates AI-powered appliances, HVAC systems and other advanced technologies to redefine residential living. Similarly, LG envisions the automobile as a “personalized digital cave,” featuring software-defined vehicle solutions and AI technologies that understand and adapt to both the internal and external vehicle environment, delivering groundbreaking mobility experiences.
In smart factory solutions, LG leverages over 60 years of world-class manufacturing expertise, offering next-generation manufacturing systems powered by AI and robotics. Additionally, LG’s AI-based thermal management systems and advanced chiller technologies are optimizing energy efficiency in AI data centers worldwide.
“Our ultimate goal is simple yet profound: to leverage AI as a means to create holistic customer value, no matter where you are,” said CEO Cho. “Irrespective of how AI transforms our lives, one thing will never change: our promise of Life’s Good. With this unwavering commitment, we will strive to deliver differentiated customer experiences – seen or unseen – to everyone, everywhere, every time.”
About LG Electronics USA
LG Electronics USA, Inc., based in Englewood Cliffs, N.J., is the North American subsidiary of LG Electronics, Inc., a $68 billion global innovator in technology and manufacturing. In the United States, LG sells a wide range of innovative home appliances, home entertainment products, commercial displays, air conditioning systems, and vehicle components. LG is an 11-time ENERGY STAR® Partner of the Year. The company’s commitment to environmental sustainability and its “Life’s Good” marketing theme encompass how LG is dedicated to people’s happiness by exceeding expectations today and tomorrow. For more information, visit www.LG.com.
Media Contacts:
LG Electronics USA
LG Electronics USA
Chris De Maria
JL Lavinia
LG-One
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SOURCE LG Electronics USA
Technology
Cboe Global Markets Reports Trading Volume for December and Full Year 2024
Published
40 minutes agoon
January 6, 2025By
CHICAGO, Jan. 6, 2025 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today reported December and full year 2024 trading volume statistics across its global business lines and provided guidance for selected revenue per contract/net revenue capture metrics for the fourth quarter of 2024.
The data sheet “Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report” contains an overview of certain December and full year 2024 trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
Average Daily Trading Volume (ADV) by Month
Year-To-Date
Dec
2024
Dec
2023
%
Chg
Nov
2024
%
Chg
Dec
2024
Dec
2023
%
Chg
Multiply-listed options (contracts, k)
11,864
10,472
13.3 %
12,355
-4.0 %
10,853
10,814
0.4 %
Index options (contracts, k)
4,014
3,984
0.8 %
4,141
-3.0 %
4,094
3,800
7.7 %
Futures (contracts, k)
213
201
6.0 %
222
-3.8 %
239
223
6.9 %
U.S. Equities – On-Exchange (matched shares, mn)
1,515
1,654
-8.4 %
1,601
-5.4 %
1,392
1,413
-1.4 %
U.S. Equities – Off-Exchange (matched shares,
mn)1
70
71
-1.9 %
94
-25.7 %
79
79
-0.6 %
Canadian Equities (matched shares, k)
154,344
151,854
1.6 %
159,068
-3.0 %
147,576
136,110
8.4 %
European Equities (€, mn)
9,291
8,816
5.4 %
11,262
-17.5 %
9,780
9,398
4.1 %
Cboe Clear Europe Cleared Trades2 (k)
96,747
83,648
15.7 %
114,701
-15.7 %
1,229,203
1,172,028
4.9 %
Cboe Clear Europe Net Settlements2 (k)
926
770
20.2 %
995
-6.9 %
11,199
10,045
11.5 %
Australian Equities (AUD, mn)
772
777
-0.7 %
822
-6.1 %
790
704
12.2 %
Japanese Equities (JPY, bn)
250
192
30.0 %
251
-0.5 %
304
177
72.3 %
Global FX ($, mn)
43,122
45,600
-5.4 %
49,565
-13.0 %
46,731
44,706
4.5 %
1 U.S. Equities – Off-Exchange ATS Block metrics restated to incorporate a tier of sell-side activity from July 2023 and forward, previously excluded from reporting.
2 Cboe Clear Europe figures are totals (not ADV) for the months and years-to-date. As of April 2023, data has been restated to reflect both On-Book and Off-Book cleared trades.
December and Full Year 2024 Trading Volume Highlights
U.S. Options
Total volume across Cboe’s four options exchanges was 3.8 billion contracts in 2024, with an ADV of 14.95 million contracts traded, the fifth consecutive record-breaking year.Cboe’s proprietary product suite set several volume records for the year, including:Overall proprietary index options product suite traded a total of 1.03 billion contracts, with an ADV of 4.1 million contractsS&P 500 Index (SPX) options traded a total of 784.2 million contracts, with an ADV of 3.1 million contractsCboe Volatility Index (VIX) options traded a total of 209.2 million contracts, with an ADV of 830 thousand contractsXSP (Mini-SPX) options traded a total of 17.6 million contracts, with an ADV of 69 thousand contractsIn the fourth quarter, zero days to expiry trading in SPX comprised of 51% of overall SPX volumes, a quarterly record.
Global FX
Global FX reported a record full year spot average daily notional volume (ADNV) of $45.4 billion, eclipsing last year’s record of $43.6 billion.
Fourth-Quarter 2024 RPC/Net Revenue Capture Guidance
The projected RPC/net capture metrics for the fourth quarter of 2024 are estimated, preliminary and may change. There can be no assurance that our final RPC for the three months ended December 31, 2024, will not differ materially from these projections.
(In USD unless stated otherwise)
Three-Months Ended
Product:
4Q Projection
Nov-24
Oct-24
Sept-24
Multiply-Listed Options (per contract)
$0.065
$0.067
$0.066
$0.063
Index Options
$0.905
$0.895
$0.894
$0.892
Total Options
$0.281
$0.288
$0.300
$0.298
Futures (per contract)
$1.767
$1.753
$1.760
$1.767
U.S. Equities – Exchange (per 100 touched shares)
$0.018
$0.020
$0.022
$0.024
U.S. Equities – Off-Exchange (per 100 touched shares)
$0.128
$0.129
$0.130
$0.135
Canadian Equities (per 10,000 touched shares)
CAD 4.057
CAD 4.158
CAD 4.192
CAD 4.240
European Equities (per matched notional value)
0.260
0.260
0.257
0.257
Australian Equities (per matched notional value)
0.153
0.156
0.155
0.156
Japanese Equities (per matched notional value)
0.234
0.228
0.219
0.221
Global FX (per one million dollars traded)
$2.742
$2.687
$2.680
$2.665
Cboe Clear Europe Fee per Trade Cleared
€ 0.009
€ 0.008
€ 0.008
€ 0.008
Cboe Clear Europe Net Fee per Settlement
€ 0.976
€ 0.979
€ 1.001
€ 1.026
The above represents average revenue per contract (RPC) or net capture is based on a three-month rolling average, reported on a one-month lag. Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
For Options and Futures, the average RPC represents total net transaction fees recognized for the period divided by total contracts traded during the period for options exchanges: BZX Options, Cboe Options, C2 Options and EDGX Options; futures include contracts traded on Cboe Futures Exchange, LLC (CFE).For U.S. Equities, “net capture per 100 touched shares” refers to transaction fees less liquidity payments and routing and clearing costs divided by the product of one-hundredth ADV of touched shares on BZX, BYX, EDGX and EDGA and the number of trading days for the period.For U.S. Equities – Off-Exchange, “net capture per 100 touched shares” refers to transaction fees less OMS/EMS costs and clearing costs divided by the product of one-hundredth ADV of touched shares on BIDS Trading and the number of trading days for the period.For Canadian Equities, “net capture per 10,000 touched shares” refers to transaction fees divided by the product of one-ten thousandth ADV of shares for Cboe Canada and the number of trading days for the period and includes revenue.For European Equities, “net capture per matched notional value” refers to transaction fees less liquidity payments in British pounds divided by the product of ADNV in British pounds of shares matched on Cboe Europe Equities and the number of trading days.For Australian Equities, “net capture per matched notional value” refers to transaction fees less trading fee relief in Australian Dollars divided by the product of ADNV in Australian Dollars of shares matched on Cboe Australia and the number of trading days.For Japanese Equities, “net capture per matched notional value” refers to transaction fees less liquidity payments in Japanese Yen divided by the product of ADNV in Japanese Yen of shares matched on Cboe Japan and the number of trading days.For Global FX, “net capture per one million dollars traded” refers to transaction fees less liquidity payments, if any, divided by the Spot and SEF products of one-thousandth of ADNV traded on the Cboe FX Markets and the number of trading days, divided by two, which represents the buyer and seller that are both charged on the transaction.For Cboe Clear Europe, “Fee per Trade Cleared” refers to clearing fees divided by number of non-interoperable trades cleared and “Net Fee per Settlement” refers to settlement fees less direct costs incurred to settle divided by the number of settlements executed after netting.
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
Cboe Media Contacts
Cboe Analyst Contact
Angela Tu
Tim Cave
Kenneth Hill, CFA
+1-646-856-8734
+44 (0) 7593-506-719
+1-312-786-7559
atu@cboe.com
tcave@cboe.com
khill@cboe.com
CBOE-V
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There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers/.
Options involve risk and are not suitable for all market participants. Prior to buying or selling an option, a person should review the Characteristics and Risks of Standardized Options (ODD), which is required to be provided to all such persons. Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our 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.
Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot crypto market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
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SOURCE Cboe Global Markets, Inc.
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