NDAQ - Nasdaq Q3 earnings top consensus helped by lower-than-expected expenses

Nasdaq ( NASDAQ: NDAQ ) posted better-than-expected Q3 earnings on Wednesday as operating expenses came in lower than consensus. As a result, the exchange operator and data company lowered its year guidance of operating costs.

Q3 adjusted EPS of $0.68, topping the $0.65 average analyst consensus, fell from $2.07 in Q2 and climbed from $0.59 in Q3 2021. NDAQ shares gained 1.2% in premarket trading.

Q3 net revenue of $890M, higher than the $884M consensus, compared with $893M in Q2 and $838M in Q3 2021. In the Y/Y comparison, net revenue reflected a $77M, or 9%, positive impact from organic growth, partially offset by a $22M decrease from the impact of changes in foreign exchange rates and a $3M decrease from the net impact of an acquisition and divestiture.

Nasdaq ( NDAQ ) reduced its guidance for 2022 non-GAAP operating expenses to $1.70B-$1.72B from the previous range of $1.71B-$1.74B.

Solutions Segments revenue of $584M vs. $582M in Q2 and increased 8% Y/Y.

Markets Services net revenue of $305M slipped from $310M in the prior quarter and increased 4% from the year-ago quarter.

In Q4, Nasdaq's ( NDAQ ) results will be reported along its new corporate structure , comprised of Market Platforms, Capital Access Platforms, and Anti-Financial Crime.

Q3 non-GAAP operating expenses of $417M, less than the Visible Alpha consensus of $427M, edged up from $413M in the previous quarter and rose from $397M in the year-ago quarter.

Annualized recurring revenue rose 8% Y/Y. Annualized SaaS revenue increased 13%, representing 35% of ARR the same proportion as in Q2 2022.

Conference call at 8:00 AM ET.

Earlier, Nasdaq ( NDAQ ) non-GAAP EPS of $0.68 beats by $0.03, revenue of $890M beats by $5.85M

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