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10-QPeriod: Q2 FY2014

NASDAQ, INC. Quarterly Report for Q2 Ended Jun 30, 2014

Filed August 6, 2014For Securities:NDAQ

Summary

NASDAQ, INC. (NDAQ) reported its financial results for the period ending June 30, 2014. The company demonstrated solid revenue growth, driven by strong performance in its Information Services and Technology Solutions segments, bolstered by recent acquisitions. Operating income saw a significant increase, reflecting both revenue growth and disciplined expense management, though the latter was partially impacted by integration costs related to acquisitions and debt extinguishment expenses. Overall, the company's financial position remains robust, supported by healthy operating cash flows and a strong liquidity position. NASDAQ is actively managing its capital structure, including debt repayment and opportunistic share repurchases, while continuing to invest in strategic initiatives and maintain a commitment to returning value to shareholders through dividends. Investors should note the ongoing integration of acquisitions and potential impacts from regulatory environments and market volatility.

Financial Statements
Beta
Revenue$865.00M
Cost of Revenue$342.00M
Gross Profit$523.00M
Operating Expenses$332.00M
Operating Income$191.00M
Interest Expense$30.00M
Net Income$101.00M
EPS (Basic)$0.20
EPS (Diluted)$0.20
Shares Outstanding (Basic)508.01M
Shares Outstanding (Diluted)517.42M

Key Highlights

  • 1Total revenues increased by 16.0% to $865 million for the three months ended June 30, 2014, compared to $814 million in the prior year period.
  • 2Net income attributable to NASDAQ OMX increased by 14.8% to $101 million for the three months ended June 30, 2014, compared to $88 million in the prior year period.
  • 3Diluted earnings per share increased by 13.5% to $0.59 for the three months ended June 30, 2014, compared to $0.52 in the prior year period.
  • 4Operating expenses increased by 13.7% to $332 million, largely due to integration costs from recent acquisitions.
  • 5The company completed the acquisition of the remaining 28% ownership interest in BWise Beheer B.V. on March 31, 2014.
  • 6The company repaid $400 million of 4.00% senior unsecured notes in June 2014 and issued $500 million of 4.25% senior unsecured notes in May 2014.
  • 7Cash flows from operating activities increased significantly by 50.2% to $383 million for the six months ended June 30, 2014, compared to $255 million in the prior year period.

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