01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) reported robust performance for the fiscal year ended December 31, 2024, marked by significant revenue growth driven by the integration of its acquired Adenza business and strong performance across its key segments.
Total revenues increased by 22.0% to $7,400 milliona, with revenues less transaction-based expenses growing by 19.4% to $4,649 million. The Financial Technology segment was a key driver of this growth, delivering over 10% ARR growth and a substantial 47.5% increase in segment revenue, largely attributed to the full-year impact of Adenza's regulatory technology and capital markets technology solutions.
The company continued to solidify its market leadership in listings, boasting the top U.S. exchange for IPOs by number and proceeds raised, and saw strong performance in its Index business, with exchange-traded product assets under management reaching $647 billionb. While facing some headwinds in the U.S. Tape plans and other revenue streams, Nasdaq's strategic focus on technology, particularly in areas like AI and cloud infrastructure, positions it well for future innovation and sustained growth within the evolving global financial system.
02—Key points
Key Highlights
- Total revenues increased by 22.0% to $7,400 million, and revenues less transaction-based expenses grew by 19.4% to $4,649 million in 2024.
- The Financial Technology segment demonstrated substantial growth, with revenues up 47.5% to $1,621 million, driven by the full-year integration of Adenza's AxiomSL and Calypso solutions.
- Nasdaq maintained its leadership in U.S. IPOs, being the top exchange by number and proceeds raised for the sixth consecutive year, with an 82% win rate for eligible IPOs.
- The Index business saw significant growth, with ETP AUM reaching a record $647 billion, supported by $80 billion in net inflows during the year.
- Market Services segment achieved record net revenue, with strong performance in U.S. Equity Derivative Trading and Cash Equity Trading, despite a decrease in U.S. Tape plans revenue.
- The company is strategically investing in technology, including AI and cloud infrastructure, to enhance its offerings and maintain a competitive edge.
- Nasdaq reported non-GAAP diluted earnings per share of $2.82, demonstrating strong operational profitability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Nasdaq, Inc. kept $0.15.
- Revenue$7.40B100.0%
- Cost of revenue−$2.75B37.2%
- Gross profit$4.65B62.8%
- Operating costs−$2.85B38.5%
- Operating income$1.80B24.3%
- Interest, other & tax−$681.0M9.2%
- Net income$1.12B15.1%
Where FY2024 revenue went
$7.40B- Operating costs: $2.85B, 39% of revenue
- Cost of revenue: $2.75B, 37% of revenue
- Net income: $1.12B, 15% of revenue
- Interest, other & tax: $681.0M, 9.2% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.40B$6.06B | +22.0% |
| Cost of Revenue | $2.75B$2.17B | +26.8% |
| Gross Profit | $4.65B$3.90B | +19.4% |
| Operating Expenses | $2.85B$2.32B | +23.0% |
| Operating Income | $1.80B$1.58B | +13.9% |
| Net Income | $1.12B$1.06B | +5.5% |
| EPS (Basic) | $1.94$2.10 | −7.6% |
| EPS (Diluted) | $1.93$2.08 | −7.2% |
| Shares Outstanding (Basic) | 575.43M504.91M | +14.0% |
| Shares Outstanding (Diluted) | 579.19M508.39M | +13.9% |
05—Questions
Frequently Asked Questions
What was the main driver of Nasdaq's revenue growth in 2024?
The primary driver of Nasdaq's revenue growth in 2024 was the full-year impact of the Adenza acquisition, particularly within the Financial Technology segment. This segment saw significant increases in revenue from regulatory technology and capital markets technology solutions, contributing substantially to the company's overall financial performance.
How did Nasdaq perform in the listings market in 2024?
Nasdaq continued its strong performance in the listings market, maintaining its position as the top U.S. exchange for IPOs by both number and proceeds raised for the sixth consecutive year. The company achieved an 82% win rate among eligible IPOs in the U.S.
What is the outlook for Nasdaq's technology investments, specifically AI and cloud?
Nasdaq is strategically investing in AI and cloud infrastructure to enhance its existing products and develop new solutions. The company views these technologies as critical for modernizing markets, improving efficiency, and maintaining a competitive advantage in the evolving financial technology landscape.
What are the key financial highlights from the report regarding profitability?
Nasdaq reported GAAP net income attributable to Nasdaq of $1,117 million, resulting in diluted earnings per share of $1.93. On a non-GAAP basis, which excludes certain adjustments, net income attributable to Nasdaq was $1,631 million, with non-GAAP diluted earnings per share of $2.82, indicating strong underlying operational profitability.
06—Continue