NDAQ - Nasdaq Q4 earnings miss as costs rise more than expected

Nasdaq ( NASDAQ: NDAQ ) stock dipped 2.9% in Wednesday premarket trading after its Q4 earnings fell short of the Wall Street consensus as its revenue didn't rise as much as expected and its expenses rose more. Guidance for 2023 costs also could be worse than the analyst consensus.

The exchange operator and market data company expects 2023 non-GAAP operating expenses to $1.77B-$1.85B , vs. $1.78B Visible Alpha consensus.

"As we look to 2023, our new corporate structure positions us to deliver greater liquidity, transparency, and integrity solutions to our clients throughout the financial system," said Chair and CEO Adena Friedman.

Q4 adjusted EPS of $0.64, trailed the $0.65 average analyst estimate, compared with $0.68 in Q3 and $0.64 in Q4 2021.

Q4 net revenue of $906M, shy of the $908.9M consensus, increased from $890M in the prior quarter and $885M in the year-ago quarter.

Q4 non-GAAP operating expenses were $460M, exceeding the Visible Alpha consensus of $447.5M; compared with $417M in Q3 and $434M in Q4 2021.

Market Platforms revenue of $1.08B increased from $975M in the year-ago quarter. Trading Services revenue rose to $929M from $832M and Marketplace Technology revenue increased to $150M from $143M.

Capital Access Platforms revenue of $420M was unchanged from Q4 2021. Data and Listing Services revenue was $183M, up from $178M a year ago. Index revenue of $116M fell from $130M. Workflow and Insights revenue grew to $121M from $112M.

Anti-Financial Crime revenue of $82M climbed from $68M a year earlier.

Annualized recurring revenue rose 8% Y/Y, the same gain as in Q3. Annualized SaaS revenue rose 13% Y/Y, representing 36% of ARR. That compares with 35% of ARR in Q3.

Earlier, Nasdaq ( NDAQ ) non-GAAP EPS of $0.64 misses by $0.01, revenue of $906M misses by $2.94M, initiates FY23 tax and expense guidance

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