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10-QPeriod: Q2 FY2024

NASDAQ, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 6, 2024For Securities:NDAQ

Summary

Nasdaq, Inc. (NDAQ) reported its financial results for the period ending June 29, 2024, with total revenues reaching $1.792 billion for the quarter, a significant increase from $1.433 billion in the prior year period. This growth was primarily driven by strong performance in its Financial Technology and Market Services segments. The company also saw increased operating expenses, influenced by factors such as increased headcount related to the Adenza acquisition and higher technology investments. Net income attributable to Nasdaq for the quarter was $222 million, down from $267 million in the same period last year, leading to a diluted earnings per share of $0.38. Despite the decrease in net income, the company continued to return capital to shareholders, declaring a cash dividend of $0.24 per share. Nasdaq's balance sheet reflects a strong equity position and a manageable debt load, with a focus on strategic capital deployment for long-term growth.

Financial Statements
Beta
Revenue$1.79B
Cost of Revenue$633.00M
Gross Profit$1.16B
Operating Expenses$736.00M
Operating Income$423.00M
Net Income$222.00M
EPS (Basic)$0.39
EPS (Diluted)$0.38
Shares Outstanding (Basic)576.38M
Shares Outstanding (Diluted)578.95M

Key Highlights

  • 1Total revenues for the quarter increased by 25.1% year-over-year to $1.792 billion, driven by strong growth in the Financial Technology segment (up 78.7%) and Market Services segment (up 17.7%).
  • 2Net income attributable to Nasdaq decreased by 16.9% to $222 million, resulting in a diluted EPS of $0.38, down from $0.54 in the prior year period.
  • 3Operating expenses increased by 35.5% to $736 million, largely due to higher compensation and benefits, technology investments, and restructuring charges related to the Adenza acquisition.
  • 4The Capital Access Platforms segment showed steady growth, with revenues increasing by 9.8% to $481 million, supported by strong performance in the Index business.
  • 5The company returned $138 million to shareholders through dividends and $58 million through share repurchases during the second quarter.
  • 6Long-term debt decreased to $9.249 billion from $10.163 billion at the end of the previous year, indicating effective debt management.
  • 7The Financial Technology segment's revenue surged by 78.7% to $420 million, largely due to the inclusion of Adenza's operations, particularly in Regulatory Technology and Capital Markets Technology.

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