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 Highlights

56 data points
Beta

Revenue

$4.28B

59.1% Gross Margin

Net Income

$458.00M

10.7% Net Margin

EPS (Diluted)

$0.91

Total Assets

$15.70B

Cash & Equivalents

$545.00M

Free Cash Flow

$917.00M

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.

Frequently Asked Questions

Nasdaq's revenue growth in 2018 was primarily driven by its Market Services and Information Services segments. The Market Services segment benefited from increased trading volumes in equity derivatives and cash equities, while the Information Services segment saw significant growth, particularly in investment data and analytics, bolstered by strategic acquisitions.

Nasdaq is strategically increasing its investments in its Market Technology and Information Services businesses, which it identifies as its largest growth opportunities. This includes organic initiatives like the Nasdaq Financial Framework and acquisitions of companies that enhance its capabilities in these areas.

Nasdaq is committed to sustaining and enhancing its core marketplace businesses, which form the foundation of its operations. The strategy involves continued innovation, maintaining strong market share, and leveraging these foundational businesses to expand relationships and offer technology and analytics capabilities to clients.

Nasdaq completed several acquisitions, including eVestment and Quandl, which contributed to revenue growth, particularly in the Information Services segment. The company also divested its Public Relations Solutions and Digital Media Services businesses in April 2018, which impacted certain revenue lines but allowed for resource reallocation. These strategic moves are part of Nasdaq's focus on high-growth opportunities.