Summary
Nasdaq, Inc. reported stable total revenues of $1,533 million for the first quarter of 2023, largely in line with the prior year, but showed growth in its Anti-Financial Crime segment and Marketplace Technology. Net income attributable to Nasdaq increased by 6.3% to $302 million, resulting in diluted earnings per share of $0.61, up from $0.57 in the prior year. The company continued to return capital to shareholders, with $98 million in dividends paid and $159 million in share repurchases during the quarter. Management highlighted strong performance in IPOs on The Nasdaq Stock Market and leading volumes in equity options trading. The company is also progressing with its restructuring plan, expecting significant annual run-rate operating efficiencies by 2025. Key financial shifts include a decrease in 'Revenues less transaction-based expenses' for the Market Platforms segment, largely due to a decrease in transaction rebates and higher brokerage, clearance and exchange fees, while the Capital Access Platforms segment saw a slight decline in revenue. Expenses increased due to higher compensation and benefits, computer operations, and occupancy costs, the latter impacted by lease asset impairments. Despite these pressures, the company maintains a healthy liquidity position with sufficient cash flow to meet its operational and financial commitments.
Financial Highlights
53 data points| Revenue | $1.53B |
| Cost of Revenue | $619.00M |
| Gross Profit | $914.00M |
| Operating Expenses | $502.00M |
| Operating Income | $412.00M |
| Interest Expense | $36.00M |
| Net Income | $302.00M |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.61 |
| Shares Outstanding (Basic) | 489.93M |
| Shares Outstanding (Diluted) | 494.77M |
Key Highlights
- 1Total revenues remained stable at $1,533 million, with a notable 16.7% increase in the Anti-Financial Crime segment.
- 2Net income attributable to Nasdaq increased by 6.3% to $302 million, with diluted EPS rising to $0.61 from $0.57.
- 3The company returned $98 million to shareholders via dividends and repurchased $159 million of its stock.
- 4Market Platforms segment revenue decreased slightly by 0.7% to $1,032 million, impacted by lower cash equity trading revenues, though Marketplace Technology showed a 10.6% increase.
- 5Capital Access Platforms segment revenue saw a marginal decrease of 0.7% to $416 million, with Data & Listing Services growing but offset by a decline in Index revenues.
- 6Operating expenses increased by 3.1% to $502 million, driven by higher compensation, cloud initiatives, and occupancy costs, including lease asset impairments.
- 7The company's liquidity remains strong, with $373 million in cash and cash equivalents and $6,842 million in total cash, cash equivalents, and restricted cash.