Summary
NASDAQ, INC. (NDAQ) reported a strong first quarter in 2014, with total revenues less transaction rebates, brokerage, clearance and exchange fees increasing by 26.6% to $529 million compared to the same period in 2013. This growth was primarily driven by acquisitions, notably the TR Corporate Solutions businesses and eSpeed, which bolstered the Technology Solutions and Market Services segments, respectively. Net income attributable to NASDAQ OMX more than doubled, reaching $103 million ($0.59 per diluted share) from $42 million ($0.25 per diluted share) in the prior year's quarter. The company also demonstrated solid operational performance, with Market Services, Listing Services, Information Services, and Technology Solutions all showing revenue growth. Despite increased operating expenses (up 5.2% to $345 million), largely due to integration costs from recent acquisitions and higher merger and strategic initiatives expenses, NASDAQ OMX maintained robust profitability. The company also highlighted its strong liquidity position, with $384 million in cash and cash equivalents and an available revolving credit commitment of $750 million. The company continues to prioritize shareholder returns through dividends and an ongoing share repurchase program.
Financial Highlights
55 data points| Revenue | $898.00M |
| Cost of Revenue | $369.00M |
| Gross Profit | $529.00M |
| Operating Expenses | $345.00M |
| Operating Income | $184.00M |
| Interest Expense | $30.00M |
| Net Income | $103.00M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 508.79M |
| Shares Outstanding (Diluted) | 521.00M |
Key Highlights
- 1Revenue growth of 26.6% to $529 million (excluding rebates/fees), driven by acquisitions and organic growth across segments.
- 2Net income more than doubled to $103 million, with diluted EPS rising to $0.59 from $0.25 year-over-year.
- 3Technology Solutions segment revenue increased by a significant 80.0%, largely due to the TR Corporate Solutions acquisition.
- 4Market Services segment revenue grew by 17.0%, boosted by fixed income trading (post-eSpeed acquisition) and cash equity trading.
- 5Listing Services saw a 5.5% increase in revenue, supported by a rise in the number of listed companies in the U.S.
- 6Operating expenses increased by 5.2% to $345 million, primarily reflecting costs associated with recent acquisitions.
- 7Strong liquidity maintained, with $384 million in cash and cash equivalents and an undrawn revolving credit facility of $750 million.