REVENUES

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUES

NOTE 3: REVENUES

Disaggregation of Revenues

The following table presents our revenues disaggregated by revenue source:

	Three Months Ended March 31,
(in millions)	2023		2024
Transaction-based revenues:
Options	$	133	$	154
Cryptocurrencies	38		126
Equities	27		39
Other	9		10
Total transaction-based revenues	207		329
Net interest revenues:
Margin interest	53		72
Interest on corporate cash and investments	68		70
Interest on segregated cash, securities, and deposits	45		58
Cash Sweep	22		39
Securities lending, net	26		15
Credit card, net	—		6
Interest expenses related to credit facilities	(6)		(6)
Total net interest revenues	208		254
Other revenues	26		35
Total net revenues	$	441	$	618

For our fully-paid securities lending program under which we borrow fully-paid shares from participating users and lend them to third parties (“Fully-Paid Securities Lending”), we earn revenue for lending certain securities based on demand for those securities and portions of such revenues are paid to participating users, and those payments are recorded as interest expense. The following table presents interest revenue earned and interest expense paid from Fully-Paid Securities Lending:

	Three Months Ended March 31,
(in millions)	2023		2024
Interest revenue	$	10	$	13
Interest expense	(2)		(2)
Fully-Paid Securities Lending, net	$	8	$	11

Contract Balances

Contract receivables are recognized when we have an unconditional right to invoice and receive payment under a contract and are derecognized when cash is received. Transaction-based revenue receivables due from market makers are reported in receivables from brokers, dealers, and clearing organizations while other revenue receivables related to proxy revenues due from issuers are reported in other current assets on the unaudited condensed consolidated balance sheets.

Contract liabilities, which primarily consist of unearned subscription revenue, are recognized when users remit cash payments in advance of the time we satisfy our performance obligations and are recorded as other current liabilities on the unaudited condensed consolidated balance sheets.

The table below sets forth contract receivables and liabilities for the period indicated:

(in millions)	Contract Receivables		Contract Liabilities
Beginning of the period, January 1, 2024	$	87	4
End of the period, March 31, 2024	166		5
Changes during the period	$	79	$	1

The difference between the opening and ending balances of our contract receivables was primarily driven by increases in trading volumes for cryptocurrencies, equities, and options for the three months ended March 31, 2024 and timing differences between our performance and counterparties’ payments. We recognized all revenue from amounts included in the opening contract liabilities balance in the three months ended March 31, 2024.