Summary
NASDAQ, INC. (NDAQ) reported its financial results for the second quarter and first six months ended June 30, 2013. The company experienced a notable increase in revenue, driven primarily by growth in its Technology Solutions segment, bolstered by recent acquisitions. However, operating expenses also rose significantly, impacting operating income and net income, which saw a decrease compared to the prior year period. The company made substantial investments in acquisitions, notably eSpeed and the TR Corporate Solutions businesses, which contributed to an increase in goodwill and intangible assets. Liquidity remains stable, supported by cash generated from operations and access to credit facilities. The company's balance sheet reflects the impact of these strategic investments, with increased assets and liabilities. Investors should note the ongoing legal proceedings related to the Facebook IPO, which resulted in a settlement with the SEC and a monetary penalty, as well as ongoing litigation and arbitration demands. Overall, NDAQ is navigating a period of significant investment and integration, with mixed financial results reflecting these strategic initiatives.
Financial Highlights
56 data points| Revenue | $814.00M |
| Cost of Revenue | $363.00M |
| Gross Profit | $451.00M |
| Operating Expenses | $292.00M |
| Operating Income | $159.00M |
| Interest Expense | $26.00M |
| Net Income | $88.00M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 499.12M |
| Shares Outstanding (Diluted) | 510.43M |
Key Highlights
- 1Total revenues less transaction rebates, brokerage, clearance and exchange fees increased by 5.6% to $451 million for the second quarter and 3.3% to $869 million for the first six months of 2013 compared to the prior year periods.
- 2The Technology Solutions segment showed strong revenue growth, increasing by 41.8% in Q2 and 28.0% in the first six months of 2013, largely driven by acquisitions and increased market technology revenues.
- 3Operating expenses increased significantly by 15.9% in Q2 and 25.3% in the first six months of 2013, impacting profitability.
- 4Net income attributable to NASDAQ OMX decreased by 5.4% to $88 million in Q2 and by 27.0% to $130 million in the first six months of 2013.
- 5The company completed significant acquisitions, including eSpeed for $1.2 billion and the TR Corporate Solutions businesses for $390 million, leading to substantial increases in goodwill and intangible assets.
- 6Cash and cash equivalents decreased by $118 million to $379 million at June 30, 2013, primarily due to net cash used in investing activities for acquisitions.
- 7NASDAQ settled with the SEC regarding systems issues during the Facebook IPO, agreeing to implement preventative measures and paying a $10 million penalty.