Summary
Nasdaq, Inc. (NDAQ) reported its third-quarter 2023 financial results, demonstrating resilience despite a slight revenue decline year-over-year, primarily driven by a decrease in Market Platforms revenue. However, this was largely offset by strong performance in the Capital Access Platforms and Anti-Financial Crime segments, leading to a 5.6% increase in revenues less transaction-based expenses for the quarter. Net income attributable to Nasdaq remained stable at $294 million, with diluted earnings per share at $0.60. The company highlighted significant strategic progress, including the completion of its acquisition of Adenza on November 1, 2023, a move expected to significantly expand its financial technology offerings. Nasdaq also continued its commitment to shareholder returns, increasing its quarterly dividend by 10% and repurchasing shares under its authorized program. Operationally, Nasdaq continues to focus on its strategic realignment into three core segments: Market Platforms, Capital Access Platforms, and Anti-Financial Crime. While Market Platforms saw a revenue decrease, driven by lower trading services volumes, Capital Access Platforms showed robust growth, particularly in Data & Listing Services and Index revenues. The Anti-Financial Crime segment also posted strong year-over-year revenue growth, underscoring its increasing importance. The company's liquidity position remains strong, supported by operating cash flow and its revolving credit facility, positioning it well to manage its operations and pursue strategic initiatives.
Financial Highlights
55 data points| Revenue | $1.45B |
| Cost of Revenue | $511.00M |
| Gross Profit | $940.00M |
| Operating Expenses | $509.00M |
| Operating Income | $431.00M |
| Interest Expense | $101.00M |
| Net Income | $294.00M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 491.32M |
| Shares Outstanding (Diluted) | 494.11M |
Key Highlights
- 1Revenue less transaction-based expenses increased by 5.6% to $940 million for Q3 2023 compared to $890 million in Q3 2022, driven by growth in Capital Access Platforms and Anti-Financial Crime segments.
- 2Net income attributable to Nasdaq remained flat at $294 million for Q3 2023, with diluted EPS at $0.60.
- 3The acquisition of Adenza Holdings, Inc. was completed on November 1, 2023, for approximately $10.5 billion, expected to enhance Nasdaq's financial technology capabilities.
- 4The company returned $108 million to shareholders in Q3 2023 through dividend payments and continued share repurchases under its authorized program, which has $2 billion remaining.
- 5Market Platforms revenue decreased by 14.7% to $892 million, primarily due to lower trading services revenue impacted by reduced trading volumes and market share.
- 6Capital Access Platforms revenue grew 8.1% to $456 million, with notable increases in Data & Listing Services and Index revenues.
- 7Anti-Financial Crime segment revenue increased by 20.8% to $93 million, reflecting strong demand for fraud detection and anti-money laundering solutions.