Summary
NASDAQ, INC. (NDAQ) reported its third-quarter and year-to-date financial results for the period ending September 30, 2013. The company saw revenue growth driven primarily by its Technology Solutions and Information Services segments, largely influenced by recent acquisitions, specifically eSpeed and the Thomson Reuters Corporate Solutions businesses. While overall revenues showed an increase, operating expenses also rose due to integration costs and higher compensation, impacting operating income for the nine-month period. Despite increased operating expenses, NASDAQ demonstrated strong cash flow from operations. The company successfully managed its debt, issuing new notes and repaying existing ones, while maintaining a solid liquidity position. Investors should note the significant impact of acquisitions on the balance sheet and income statement, as well as ongoing integration efforts. The company also addressed the financial implications of the Facebook IPO system issues, including a settlement with the SEC and ongoing litigation, which have led to specific charges and provisions.
Financial Highlights
57 data points| Revenue | $805.00M |
| Cost of Revenue | $299.00M |
| Gross Profit | $506.00M |
| Operating Expenses | $304.00M |
| Operating Income | $202.00M |
| Interest Expense | $32.00M |
| Net Income | $113.00M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.22 |
| Shares Outstanding (Basic) | 502.01M |
| Shares Outstanding (Diluted) | 516.31M |
Key Highlights
- 1Revenue increased by 22.8% in Q3 2013 and 9.7% for the nine months ended September 30, 2013, driven by Technology Solutions and Information Services, largely due to acquisitions.
- 2Acquisitions of eSpeed and Thomson Reuters Corporate Solutions businesses significantly impacted financial results, contributing to an increase in goodwill and intangible assets.
- 3Operating expenses increased by 25.6% in Q3 2013 and 25.5% for the nine months ended September 30, 2013, driven by higher compensation, professional services, and integration costs related to acquisitions.
- 4Despite higher operating expenses, cash flow from operating activities remained strong at $337 million for the nine months ended September 30, 2013.
- 5The company successfully managed its debt, issuing $811 million in 3.875% Senior Unsecured Notes due 2021 and repaying $191 million in debt obligations during the nine-month period.
- 6NASDAQ settled an SEC investigation related to the Facebook IPO for $10 million and continued to incur expenses related to ongoing litigation and a voluntary accommodation program.
- 7Diluted earnings per share decreased to $0.66 in Q3 2013 from $0.52 in Q3 2012, and for the nine months decreased to $1.43 from $1.53 in the prior year, reflecting higher operating expenses and interest costs.