01—Abstract
Summary
Summary of the 10-K filed February 23, 2023. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) reported its 2022 full-year financial results, showcasing resilience and strategic progress across its diversified business segments.
The company generated total revenues of $6.23 billiona, an increase of 5.8% year-over-year, with "Revenues less transaction-based expenses" growing by 4.7% to $3.58 billion. This growth was primarily driven by a robust performance in the Anti-Financial Crime segment, which saw revenues surge by 32.5%, and continued expansion in Capital Access Platforms (up 7.4%). The Market Platforms segment, while experiencing a slight dip in net revenue, demonstrated stability.
Nasdaq's strategic focus on technology, data, and anti-financial crime solutions positions it well for future growth in the evolving financial landscape. The company emphasized its commitment to innovation, including investments in cloud infrastructure and expanding its anti-financial crime technology to cover the cryptocurrency ecosystem.
Nasdaq also highlighted its strong ESG initiatives, achieving carbon neutrality for the fifth consecutive year and receiving improved ESG ratings. Despite a slight decrease in net income attributable to Nasdaq ($1.125 billionb, down 5.2% from $1.187 billion in 2021) and diluted EPS ($2.26, down 3.8% from $2.35), the company maintained a solid financial position with healthy cash flow from operations ($1.71 billion) and continued to return value to shareholders through increased dividends and share repurchases.
02—Key points
Key Highlights
- Total revenues increased by 5.8% to $6.23 billion in 2022, demonstrating topline growth.
- The Anti-Financial Crime segment was a significant growth driver, with revenues up 32.5% year-over-year, reflecting strong demand for fraud detection and AML solutions.
- Capital Access Platforms also showed healthy growth, with revenues increasing by 7.4%, driven by Data & Listing Services, Index, and Workflow & Insights businesses.
- Nasdaq continues to invest in technology, notably migrating North American markets to the AWS cloud and expanding anti-financial crime technology for the digital asset ecosystem.
- The company maintained its commitment to ESG, achieving carbon neutrality for the fifth consecutive year and improving its ESG ratings from agencies like MSCI and CDP.
- Despite a slight decrease in net income and diluted EPS, Nasdaq generated strong operating cash flow of $1.71 billion and increased its quarterly cash dividend.
- The company's strategic shift to three new reporting segments (Market Platforms, Capital Access Platforms, and Anti-Financial Crime) aligns its business with key industry trends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Nasdaq, Inc. kept $0.18.
- Revenue$6.23B100.0%
- Cost of revenue−$2.64B42.5%
- Gross profit$3.58B57.5%
- Operating costs−$2.02B32.4%
- Operating income$1.56B25.1%
- Interest, other & tax−$439.0M7.1%
- Net income$1.13B18.1%
Where FY2022 revenue went
$6.23B- Cost of revenue: $2.64B, 42% of revenue
- Operating costs: $2.02B, 32% of revenue
- Net income: $1.13B, 18% of revenue
- Interest, other & tax: $439.0M, 7.1% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 23, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $6.23B$5.89B | +5.8% |
| Cost of Revenue | $2.64B$2.47B | +7.2% |
| Gross Profit | $3.58B$3.42B | +4.7% |
| Operating Expenses | $2.02B$1.98B | +2.0% |
| Operating Income | $1.56B$1.44B | +8.5% |
| Interest Expense | $129.00M$125.00M | +3.2% |
| Net Income | $1.13B$1.19B | −5.2% |
| EPS (Basic) | $2.28$2.38 | −4.2% |
| EPS (Diluted) | $2.26$2.35 | −3.8% |
| Shares Outstanding (Basic) | 492.42M497.70M | −1.1% |
| Shares Outstanding (Diluted) | 497.86M505.09M | −1.4% |
05—Questions
Frequently Asked Questions
What were Nasdaq's key financial performance indicators for 2022?
In 2022, Nasdaq reported total revenues of $6.23 billion, an increase of 5.8% year-over-year. Revenues less transaction-based expenses grew 4.7% to $3.58 billion. Net income attributable to Nasdaq was $1.125 billion, and diluted earnings per share were $2.26. The company generated $1.71 billion in net cash from operating activities.
Which business segments performed strongest in 2022?
The Anti-Financial Crime segment showed the most significant growth, with revenues up 32.5%. The Capital Access Platforms segment also performed well, with a 7.4% increase in revenues, driven by strong performance in Data & Listing Services, Index, and Workflow & Insights.
What are Nasdaq's strategic priorities or initiatives highlighted in the filing?
Nasdaq's strategic priorities include modernizing markets with new technologies like cloud, blockchain, and AI, enhancing transparency through its Capital Access Platforms, and combating financial crime with its Anti-Financial Crime division. The company is also actively investing in cloud infrastructure and expanding its offerings for digital assets and the ESG landscape.
How is Nasdaq addressing Environmental, Social, and Governance (ESG) matters?
Nasdaq is committed to ESG, having achieved carbon neutrality for the fifth consecutive year. They have also seen improvements in their ESG ratings from major agencies and are expanding their ESG services for clients. Additionally, they are implementing new listing rules to promote board diversity.
06—Continue