Nasdaq Inc (NDAQ, Financial) released its 8-K filing on October 24, 2024, reporting its financial results for the third quarter of 2024. Founded in 1971, Nasdaq is renowned for its equity exchange and offers a diverse range of services, including market data distribution, Nasdaq-branded indexes, listing services, and financial compliance services through its various business segments.
Performance Overview
Nasdaq Inc (NDAQ, Financial) reported a GAAP net revenue of $1,146 million for Q3 2024, marking a 22% year-over-year increase. The non-GAAP net revenue stood at $1,180 million, reflecting a 26% rise. The company's GAAP diluted earnings per share (EPS) was $0.53, aligning with analyst estimates, although it represented an 11% decline from the previous year. Non-GAAP diluted EPS was reported at $0.74, a 5% increase year-over-year.
Financial Achievements and Challenges
The company achieved its fourth consecutive quarter of double-digit solutions revenue growth, with GAAP solutions revenue increasing by 26% to $872 million and non-GAAP solutions revenue rising by 31% to $906 million. Market services net revenue also saw a 13% increase, reaching $266 million. These achievements underscore Nasdaq's robust performance in expanding its solutions offerings and market services, crucial for maintaining its competitive edge in the capital markets industry.
Adena Friedman, Chair and CEO, stated, “Nasdaq delivered its fourth consecutive quarter of double-digit Solutions growth with strong overall quarterly performance. As we approach the one-year anniversary of the Adenza acquisition, I am proud of our progress to date and excited about driving even greater value for our clients and shareholders.”
Income Statement and Key Metrics
Nasdaq's operating income on a GAAP basis was $448 million, a modest 4% increase, while non-GAAP operating income surged by 30% to $637 million. The annualized recurring revenue (ARR) reached $2,736 million, up 31%, highlighting the company's success in securing long-term contracts and recurring revenue streams.
| Metric | Q3 2024 | Change (YoY) |
|---|---|---|
| GAAP Solutions Revenue | $872 million | 26% |
| Non-GAAP Solutions Revenue | $906 million | 31% |
| Market Services Net Revenue | $266 million | 13% |
| GAAP Net Revenue | $1,146 million | 22% |
| Non-GAAP Net Revenue | $1,180 million | 26% |
| GAAP Diluted EPS | $0.53 | (11%) |
| Non-GAAP Diluted EPS | $0.74 | 5% |
Analysis and Outlook
Nasdaq Inc (NDAQ, Financial) continues to demonstrate resilience and adaptability in a challenging market environment. The company's strategic focus on expanding its solutions and technology offerings has yielded significant revenue growth, positioning it well for future opportunities. However, the decline in GAAP EPS highlights potential challenges in managing costs and maintaining profitability amidst market volatility.
Sarah Youngwood, Executive Vice President and CFO, commented, “Nasdaq’s performance continues to reflect the quality and diversity of our platforms, driving strong growth across the business with particular strength in Index and Financial Technology. We are continuing to deliver ahead on deleveraging and synergies and are benefiting from significant operating leverage.”
Overall, Nasdaq Inc (NDAQ, Financial) has shown robust financial performance, with strong revenue growth and strategic initiatives paving the way for sustained success in the capital markets sector. Investors and stakeholders will be keenly observing how the company navigates its challenges and capitalizes on its growth opportunities in the coming quarters.
Explore the complete 8-K earnings release (here) from Nasdaq Inc for further details.
