01—Abstract
Summary
Summary of the 10-Q filed May 4, 2022. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. reported revenues of $1,535 milliona for the first quarter of 2022, a decrease from $1,651 million in the prior year period.
Despite the revenue dip, operating income saw an increase of 11.0% to $405 millionb, driven by improved efficiencies and disciplined cost management. Net income attributable to Nasdaq was $284 million, or $1.70 per diluted share, down from $298 million, or $1.78 per diluted share, in the first quarter of 2021. The company returned $89 million to shareholders via dividends and repurchased $142 million in stock during the quarter, underscoring a commitment to shareholder returns.
The Market Services segment, while experiencing a revenue decline of 15.5%c year-over-year, still contributed significantly to overall performance, showing resilience. Growth was observed across Market Technology, Investment Intelligence, and Corporate Platforms segments, highlighting the company's diversified revenue streams.
Notably, the Anti Financial Crime Technology sub-segment within Market Technology saw a substantial 71.4%d revenue increase, driven by the Verafin acquisition and new sales. The company also announced a proposed 3-for-1 stock split, signaling confidence in future growth and aiming to enhance stock accessibility.
02—Key points
Key Highlights
- Total revenues decreased by 7.0% to $1,535 million in Q1 2022 compared to $1,651 million in Q1 2021, primarily due to a decline in the Market Services segment.
- Operating income increased by 11.0% to $405 million from $365 million year-over-year, demonstrating effective cost management and operational efficiency.
- Net income attributable to Nasdaq decreased by 4.7% to $284 million ($1.70/share) from $298 million ($1.78/share) in the prior year period.
- The Market Technology segment grew revenue by 24.0% to $124 million, driven by strong performance in Anti Financial Crime Technology.
- The company returned $89 million to shareholders through cash dividends and repurchased $142 million in common stock during the quarter.
- Nasdaq announced a proposed 3-for-1 stock split in the form of a stock dividend, subject to shareholder and SEC approval.
- The company continues to manage its debt obligations, with total debt at $5,898 million as of March 31, 2022, and maintained compliance with all debt covenants.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2022, Nasdaq, Inc. kept $0.19.
- Revenue$1.53B100.0%
- Cost of revenue−$643.0M41.9%
- Gross profit$892.0M58.1%
- Operating costs−$487.0M31.7%
- Operating income$405.0M26.4%
- Interest, other & tax−$121.0M7.9%
- Net income$284.0M18.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2022filed May 4, 2022Financial Statements
Q1 FY2022 against Q1 FY2021
| Line item | Q1 FY2022Q1 FY2021 | Change |
|---|---|---|
| Revenue | $1.53B$1.65B | −7.0% |
| Cost of Revenue | $643.00M$800.00M | −19.6% |
| Gross Profit | $892.00M$851.00M | +4.8% |
| Operating Expenses | $487.00M$486.00M | +0.2% |
| Operating Income | $405.00M$365.00M | +11.0% |
| Interest Expense | $32.00M$29.00M | +10.3% |
| Net Income | $284.00M$298.00M | −4.7% |
| EPS (Basic) | $0.57$0.60 | −5.5% |
| EPS (Diluted) | $0.57$0.59 | −3.9% |
| Shares Outstanding (Basic) | 495.14M494.13M | +0.2% |
| Shares Outstanding (Diluted) | 501.74M501.28M | +0.1% |
05—Questions
Frequently Asked Questions
What was Nasdaq's revenue performance in the first quarter of 2022?
Nasdaq reported total revenues of $1,535 million for the first quarter of 2022, a decrease of 7.0% compared to $1,651 million in the same period of 2021. This decrease was primarily driven by a 15.5% decline in the Market Services segment, although revenue growth was seen in Market Technology, Investment Intelligence, and Corporate Platforms segments.
How did Nasdaq's profitability change in the first quarter of 2022?
Despite a decrease in total revenue, Nasdaq's operating income increased by 11.0% to $405 million in the first quarter of 2022, up from $365 million in the prior year period. This improvement was due to disciplined operating expense management. However, net income attributable to Nasdaq slightly decreased by 4.7% to $284 million, resulting in diluted earnings per share of $1.70, down from $1.78 in the first quarter of 2021.
What is Nasdaq's approach to returning capital to shareholders?
Nasdaq demonstrated a commitment to shareholder returns by declaring and paying cash dividends totaling $89 million during the first quarter of 2022, with a dividend per common share of $0.54. Additionally, the company repurchased $142 million of its common stock during the quarter. The company also announced a proposed 3-for-1 stock split, signaling confidence in its future prospects and aiming to increase stock liquidity and accessibility.
How is the Market Technology segment performing?
The Market Technology segment showed strong performance, with revenues increasing by 24.0% to $124 million in the first quarter of 2022 compared to the prior year period. This growth was significantly boosted by the Anti Financial Crime Technology sub-segment, which saw a 71.4% revenue increase, largely due to the inclusion of Verafin's revenues, new sales, and strong customer retention.
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