Summary
Nasdaq, Inc. reported its financial results for the second quarter and first half of 2023. Total revenues for the second quarter were $1.43 billion, a decrease of 7.7% year-over-year, while revenues less transaction-based expenses increased by 3.6% to $925 million. For the first six months of 2023, total revenues were $2.97 billion, down 3.9%, but revenues less transaction-based expenses grew 3.0% to $1.84 billion. The company's net income attributable to Nasdaq for the second quarter decreased by 13.0% to $267 million, resulting in diluted earnings per share of $0.54. For the first half of the year, net income attributable to Nasdaq was $568 million, a 3.7% decrease, with diluted EPS of $1.15. A significant development during the quarter was the announcement of Nasdaq's agreement to acquire Adenza Holdings, Inc. for $10.5 billion. This acquisition is expected to be transformative for Nasdaq, bolstering its offerings in risk management and regulatory software. The company also continued its capital return program, declaring a cash dividend of $0.22 per share and maintaining an active share repurchase program with $491 million remaining authorization.
Financial Highlights
56 data points| Revenue | $1.43B |
| Cost of Revenue | $508.00M |
| Gross Profit | $925.00M |
| Operating Expenses | $543.00M |
| Operating Income | $382.00M |
| Interest Expense | $36.00M |
| Net Income | $267.00M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 490.78M |
| Shares Outstanding (Diluted) | 493.63M |
Key Highlights
- 1Total revenues decreased by 7.7% to $1.43 billion in Q2 2023 compared to Q2 2022, but revenues less transaction-based expenses increased by 3.6% to $925 million.
- 2Net income attributable to Nasdaq for Q2 2023 was $267 million, a decrease of 13.0% year-over-year, with diluted EPS of $0.54.
- 3Nasdaq announced a definitive agreement to acquire Adenza Holdings, Inc. for $10.5 billion, a significant strategic move to expand its presence in risk management and regulatory software.
- 4The Capital Access Platforms segment showed resilience with a 3.8% revenue increase in Q2 2023, driven by Data & Listing Services and Workflow & Insights.
- 5The Anti-Financial Crime segment continued its strong growth trajectory, with revenues up 18.7% in Q2 2023.
- 6Operating expenses increased by 12.9% in Q2 2023, largely due to higher merger and strategic initiatives expenses related to the Adenza acquisition and increased restructuring charges.
- 7The company returned $109 million to shareholders through dividend payments in Q2 2023 and has $491 million remaining under its share repurchase authorization.