NDAQ - Nasdaq stock climbs over 3% after Q1 earnings top estimates

2023-04-19 12:49:13 ET

Nasdaq ( NASDAQ: NDAQ ) stock climbed as much as 3.6% on Wednesday after the exchange operator's Q1 results came in slightly above expectations , helped by higher demand for trade management services.

Q1 adj. EPS was $0.69 vs. $0.66 in Q1 2022, while revenue increased 2.5% Y/Y to $914M. Annualized recurring revenue rose 7% Y/Y to $2,035, while annualized SaaS revenues grew 11% and represented 36% of ARR.

Market platforms revenue slipped 0.7% Y/Y to $1.03B and capital access platforms revenue also dipped 0.7% to $416M.

Anti-financial crime software revenue jumped 16.7% to $84M. Verafin, which Nasdaq ( NDAQ ) acquired in 2021, signed its first tier 1 global bank in April and an additional tier 2 client in Q1.

"Verafin's FRAML solution signed its first tier 1 bank client, which came through sooner than expected given the typically elongated vetting and sales cycle with larger financial institutions," Jefferies noted.

"Solutions organic growth of 5% fell below the 7%-10% LT guidance, driven largely by lower index revenue as both AUM in licensed ETP and trading volume in NDAQ futures slowed Y/Y," the research firm added.

Nasdaq ( NDAQ ) also raised its quarterly dividend by 10% to $0.22.

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