10-KPeriod: FY2023

NASDAQ, INC. Annual Report, Year Ended Dec 31, 2023

Filed February 21, 2024For Securities:NDAQ

Summary

Nasdaq, Inc. (NDAQ) reported a strong performance in its 2023 fiscal year, driven significantly by the strategic acquisition of Adenza. The company's revenue, less transaction-based expenses, increased by 8.7% year-over-year to $3.9 billion. This growth was primarily fueled by the Financial Technology segment, which saw a substantial 27.2% revenue increase, largely attributable to the integration of Adenza's solutions. The Capital Access Platforms segment also demonstrated steady growth, with a 5.2% increase in revenue, supported by robust performance in Index and Workflow & Insights. While operating expenses rose by 14.8%, largely due to integration and restructuring costs related to the Adenza acquisition, operating income remained stable. Net income attributable to Nasdaq saw a slight decrease of 5.9% to $1.06 billion, resulting in diluted earnings per share of $2.08. The company also actively managed its capital, with significant proceeds from debt issuance for the Adenza acquisition and continued share repurchases and dividend payments to shareholders. Nasdaq's strategic focus on technology, including AI and cloud migration, positions it for continued growth in the evolving financial landscape.

Financial Highlights

56 data points
Beta

Revenue

$6.06B

64.2% Gross Margin

Net Income

$1.06B

17.5% Net Margin

EPS (Diluted)

$2.08

Total Assets

$32.29B

Cash & Equivalents

$453.00M

Free Cash Flow

$1.54B

Financial Statements
Beta
Revenue$6.06B
Cost of Revenue$2.17B
Gross Profit$3.90B
Operating Expenses$2.32B
Operating Income$1.58B
Interest Expense$284.00M
Net Income$1.06B
EPS (Basic)$2.10
EPS (Diluted)$2.08
Shares Outstanding (Basic)504.91M
Shares Outstanding (Diluted)508.39M

Key Highlights

  • 1Revenue less transaction-based expenses increased by 8.7% to $3.9 billion in 2023.
  • 2The Financial Technology segment experienced a significant revenue surge of 27.2%, driven by the acquisition of Adenza.
  • 3Capital Access Platforms segment revenue grew by 5.2%, with strong contributions from Index and Workflow & Insights.
  • 4Operating income remained largely stable at $1.6 billion, despite a 14.8% increase in operating expenses primarily due to acquisition-related costs.
  • 5Net income attributable to Nasdaq decreased by 5.9% to $1.06 billion, with diluted EPS at $2.08.
  • 6The company successfully integrated the Adenza acquisition, which was a key strategic move for expanding its technology solutions.
  • 7Nasdaq continues to invest in AI and cloud migration, aiming to enhance its product offerings and operational efficiency.

Frequently Asked Questions

The primary driver of Nasdaq's revenue growth in 2023 was the strategic acquisition of Adenza, which significantly boosted the Financial Technology segment's performance. Overall revenue less transaction-based expenses increased by 8.7%.

The Adenza acquisition, completed in November 2023, significantly contributed to the 27.2% revenue growth in the Financial Technology segment. While it led to an increase in operating expenses due to integration and restructuring costs, it is expected to provide substantial long-term synergies and enhance Nasdaq's technology solutions.

Nasdaq is heavily investing in artificial intelligence (AI), including generative AI, and cloud migration (in partnership with AWS). These initiatives are aimed at developing new products, enhancing existing offerings, modernizing markets, and improving operational efficiency to maintain a competitive advantage and better serve clients.

Nasdaq strategically manages its capital by balancing acquisitions, internal investments, debt management, share repurchases, and dividend payments. The company issued debt to finance the Adenza acquisition and continued its share repurchase program and dividend payments throughout 2023.