NDAQ - Nasdaq Q2 earnings beat as capital access revenue gains market revenue steady

2023-07-19 08:55:03 ET

Nasdaq ( NDAQ ) on Wednesday posted stronger than expected Q2 earnings and revenue as its market platform revenue stayed relatively stable and its capital access platform revenue grew during the quarter.

Q2 adjusted EPS of $0.71, exceeding $0.66 consensus, rose from $0.69 in Q1 and from $0.69 in Q2 2022.

Nasdaq ( NDAQ ) Chair and CEO Adena Friedman called it "another quarter of solid financial results in an uncertain environment."

During the quarter, the exchange and market data and technology company announced an agreement to buy Adenza as part of its "multi-year transformation to become a leading technology partner to the financial system, with a specific focus on managing liquidity and capital risk, reducing financial crime, and meeting regulatory obligations,."

Q2 net revenue of $925M, topping the average analyst estimate of $916M, rose from $914M in the previous quarter and $893M in the year-ago period.

The year-over-year net revenue growth was driven by 4% positive impact from organic growth, including positive contributions from all segments. That was partly offset by a $2M decrease from the impact of changes in foreign exchange rates and a $2M decrease from the net impact of an acquisition and divestiture.

Nasdaq ( NDAQ ) stock rose 0.9% in premarket trading.

Market platforms revenue, excluding transaction-related expenses, of $397M fell from $413 in the prior quarter and increased from $392M in the year-ago quarter.

Capital access platforms revenue increased to $438M from $416M in the prior quarter and from $422M a year earlier.

Anti-financial crime software revenue was $89M vs. $84M in the prior quarter and $75M a year ago.

Q2 non-GAAP operating expenses of $441M increased from $436M in Q1 and from $413M in Q2 2022.

Nasdaq ( NDAQ ) expects 2023 non-GAAP operating expense of $1.785B-$1.815B compared with its prior range of $1.78B-$1.84B.

Earlier, Nasdaq ( NDAQ ) non-GAAP EPS of $0.71 beats by $0.05, revenue of $925M beats by $8.68M.

More on Nasdaq:

• Nasdaq: 4 Reasons to Buy This Otherwise Overvalued Company
• Nasdaq: A Risky Acquisition
• B3 and Nasdaq will develop new Brazilian clearing platform
• Nasdaq: A Pricey Deal for Adenza
• Nasdaq to buy Adenza in $10.5B cash and stock deal

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