Early Access

10-KPeriod: FY2018

NASDAQ, INC. Annual Report, Year Ended Dec 31, 2018

Filed February 22, 2019For Securities:NDAQ

Summary

Nasdaq, Inc. reported strong performance in its 2018 fiscal year, with revenues less transaction-based expenses growing 4.8% to $2.526 billion. This growth was driven by increased activity in its Market Services and Information Services segments, complemented by strategic acquisitions such as eVestment and Quandl. The company continues to execute its growth strategy by increasing investment in high-growth areas like Market Technology and Information Services, while sustaining its core marketplace businesses. Despite facing a competitive landscape and economic uncertainties, Nasdaq demonstrated resilience. Key financial highlights include a significant increase in operating income and a robust cash flow from operating activities, enabling the company to increase its cash dividends declared per common share.

Financial Statements
Beta
Revenue$4.28B
Cost of Revenue$1.75B
Gross Profit$2.53B
Operating Expenses$1.50B
Operating Income$1.03B
Interest Expense$150.00M
Net Income$458.00M
EPS (Basic)$0.92
EPS (Diluted)$0.91
Shares Outstanding (Basic)496.05M
Shares Outstanding (Diluted)503.07M

Key Highlights

  • 1Revenue growth of 4.8% to $2.526 billion (revenues less transaction-based expenses) in 2018, demonstrating continued expansion.
  • 2Acquisition of eVestment and Quandl (Information Services) and Cinnober and Sybenetix (Market Technology) underscore a strategy focused on high-growth segments.
  • 3Market Services revenue increased by 12.0% to $2,709 million, driven by strong performance in Equity Derivative Trading and Clearing, and Cash Equity Trading.
  • 4Information Services revenue saw a significant increase of 21.4% to $714 million, largely due to the investment data and analytics business growth.
  • 5Operating income grew by 3.7% to $1,028 million, indicating improved profitability and operational efficiency.
  • 6Nasdaq successfully increased its cash dividends declared per common share by 16.4% to $1.70 in 2018.
  • 7The company maintained a strong liquidity position with $813 million in cash and cash equivalents and financial investments as of December 31, 2018.

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