Early Access

10-KPeriod: FY2017

NASDAQ, INC. Annual Report, Year Ended Dec 31, 2017

Filed February 28, 2018For Securities:NDAQ

Summary

Nasdaq, Inc. (NDAQ) reported strong performance for the fiscal year ended December 31, 2017. The company demonstrated robust revenue growth, largely driven by strategic acquisitions like eVestment and an expanded Market Technology segment. Nasdaq continues to focus on its core businesses while investing in high-growth areas, aligning with its strategy to reimagine markets and accelerate economic progress. The company's diversified business model, spanning Market Services, Corporate Services, Information Services, and Market Technology, proved resilient. While facing competitive pressures and evolving market dynamics, Nasdaq successfully navigated the landscape by emphasizing innovation, particularly in areas like blockchain and machine intelligence. The strategic divestiture of certain Corporate Solutions businesses also signals a focused approach to optimizing its portfolio for future growth.

Financial Statements
Beta
Revenue$3.95B
Cost of Revenue$1.54B
Gross Profit$2.41B
Operating Expenses$1.42B
Operating Income$991.00M
Interest Expense$143.00M
Net Income$729.00M
EPS (Basic)$1.46
EPS (Diluted)$1.43
Shares Outstanding (Basic)499.09M
Shares Outstanding (Diluted)508.76M

Key Highlights

  • 1Strategic Acquisitions: The acquisition of eVestment in 2017 significantly strengthened Nasdaq's Information Services segment with enhanced data analytics capabilities.
  • 2Market Technology Growth: Investment in the Nasdaq Financial Framework and the acquisition of Sybenetix bolstered the Market Technology segment, with a focus on blockchain and machine intelligence.
  • 3Resilient Market Services: Despite competitive pressures, Nasdaq maintained strong market share in equity derivative trading and clearing, and demonstrated resilience in cash equity trading.
  • 4Corporate Services Divestiture: Nasdaq entered into an agreement to sell its Public Relations Solutions and Digital Media Services businesses, signaling a strategic focus on core offerings.
  • 5Listing Services Strength: The Nasdaq Stock Market led U.S. exchanges in IPOs for the fifth consecutive year, attracting significant new listings and switches from competitors.
  • 6Increased Dividends and Share Buybacks: The company returned value to shareholders through increased cash dividends and continued share repurchases.
  • 7Focus on Future Trends: Nasdaq's strategic review identified key trends like the Marketplace Economy, Data Explosion, and Evolution of Investment Management as drivers for future opportunities.

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