Summary
Nasdaq, Inc. reported strong financial performance for the first quarter of 2021, with total revenues of $1,652 million, a significant increase from $1,353 million in the same period last year. This growth was driven by robust performance across all segments, particularly Market Services and Investment Intelligence. The company successfully completed the acquisition of Verafin for $2.75 billion, which is expected to enhance its anti-financial crime solutions and contribute to the Market Technology segment. Despite increased operating expenses, largely due to the Verafin acquisition and strategic initiatives, Nasdaq delivered a substantial increase in net income attributable to Nasdaq to $298 million, up from $203 million in Q1 2020, and diluted earnings per share rose to $1.78 from $1.22. Nasdaq also demonstrated a commitment to shareholder returns, repurchasing $162 million in common stock and increasing its quarterly cash dividend by 10% to $0.54 per share. The company announced its intention to sell its U.S. Fixed Income business, aligning with its strategy to focus on its technology and analytics capabilities. Overall, Nasdaq presented a positive financial outlook, characterized by strong revenue growth, strategic acquisitions, and a continued focus on shareholder value.
Financial Highlights
56 data points| Revenue | $1.65B |
| Cost of Revenue | $800.00M |
| Gross Profit | $851.00M |
| Operating Expenses | $486.00M |
| Operating Income | $365.00M |
| Interest Expense | $29.00M |
| Net Income | $298.00M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 494.13M |
| Shares Outstanding (Diluted) | 501.28M |
Key Highlights
- 1Total revenues increased by 22.1% to $1,652 million for Q1 2021, driven by strong performance in Market Services and Investment Intelligence.
- 2Net income attributable to Nasdaq rose by 46.8% to $298 million, with diluted EPS increasing to $1.78 from $1.22 year-over-year.
- 3Acquisition of Verafin for $2.75 billion completed in February 2021, aimed at strengthening anti-financial crime solutions.
- 4Commitment to shareholder returns demonstrated through $162 million in share repurchases and a 10% increase in the quarterly dividend to $0.54 per share.
- 5Announcement to sell the U.S. Fixed Income business aligns with Nasdaq's strategic focus on technology and analytics.
- 6Market Technology segment revenue increased by 23.5% to $100 million, boosted by the Verafin acquisition and growth in anti-financial crime solutions.
- 7Investment Intelligence segment revenue grew by 22.3% to $258 million, driven by strong performance in Market Data, Index, and Analytics businesses.