Summary
Nasdaq, Inc. reported strong financial performance for the second quarter and first half of 2020, with significant revenue growth driven by robust trading volumes in its Market Services segment. Revenues less transaction-based expenses increased by 12.2% and 11.4% for the three and six months ended June 30, 2020, respectively, compared to the prior year. This growth was primarily fueled by increased equity derivative and cash equity trading volumes, benefiting from market volatility and sector rotations related to the COVID-19 pandemic. The company also saw positive contributions from its Information Services and Market Technology segments. Despite operating expenses rising by 4.6% and 11.6% for the respective periods, largely due to increased compensation and benefits and higher computer operations costs, Nasdaq's operating income saw a substantial increase of 23.0% and 11.1%. Net income attributable to Nasdaq grew by 38.5% and 5.5% for the three and six months, respectively. The company's balance sheet remains strong, with significant improvements in working capital and substantial cash and cash equivalents. Nasdaq also actively managed its debt, repurchasing commercial paper and repaying portions of its credit facility, while maintaining a consistent dividend payout. The company anticipates continued elevated trading volumes, though acknowledges potential headwinds from ongoing economic uncertainty.
Financial Highlights
55 data points| Revenue | $1.40B |
| Cost of Revenue | $699.00M |
| Gross Profit | $699.00M |
| Operating Expenses | $384.00M |
| Operating Income | $315.00M |
| Interest Expense | $26.00M |
| Net Income | $241.00M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 492.30M |
| Shares Outstanding (Diluted) | 498.22M |
Key Highlights
- 1Revenue growth driven by strong Market Services performance, with revenues less transaction-based expenses up 12.2% and 11.4% for the three and six months ended June 30, 2020, respectively.
- 2Operating income increased significantly by 23.0% and 11.1% for the three and six months ended June 30, 2020, respectively, indicating improved profitability.
- 3Net income attributable to Nasdaq saw a substantial increase of 38.5% for the quarter and 5.5% for the six-month period, showcasing strong bottom-line performance.
- 4The company's balance sheet strengthened, with cash and cash equivalents increasing to $711 million as of June 30, 2020, and working capital significantly improved.
- 5Nasdaq actively managed its debt, repaying commercial paper and strengthening its liquidity position amidst COVID-19 uncertainties.
- 6The Information Services segment showed resilience, with Index revenues up 23.6% and Investment Data & Analytics revenues up 12.8% in the second quarter.
- 7Market Technology segment revenue increased by 6.3% in the quarter, driven by SaaS surveillance revenues and software delivery projects.