Nasdaq, Inc. Releases Third Quarter 2024 Financial Results
Nasdaq, Inc. (NASDAQ:NDAQ) today announced its financial results for the third quarter of 2024, showcasing significant growth in various sectors amidst an evolving market environment.
Key Financial Metrics
Below is a summary table of Nasdaq's key financial metrics:
| Financial Metric | Q3 2024 Actual | Year-over-Year Change | Consensus Estimates | Q3 2024 vs. Estimates |
|---|---|---|---|---|
| Total Revenue (GAAP) | $1.1 billion | +22% | $1.17 billion | Below |
| Total Revenue (Non-GAAP) | $1.2 billion | +22% | - | - |
| Earnings Per Share (GAAP) | Decrease of 11% | $0.69 | Below | |
| Earnings Per Share (Non-GAAP) | Increase of 5% | - | - | |
| Annualized Recurring Revenue (ARR) | $2.7 billion | +31% | - | - |
Nasdaq reported a GAAP revenue of $1.1 billion, a 22% increase from the same quarter last year, and $1.2 billion on a non-GAAP basis, demonstrating robust growth but still falling slightly short of the consensus estimate of $1.17 billion. Although GAAP earnings per share decreased by 11%, non-GAAP earnings per share increased by 5%. The consistent growth in revenue indicates solid performance across the company's segments.
Segment Revenue Breakdown
Below is the revenue performance across Nasdaq's major segments:
| Segment | Q3 2024 Revenue | Year-over-Year Change |
|---|---|---|
| Solutions Revenue | $872 million | +26% |
| Financial Technology | $371 million | +56% |
| Market Services | $266 million | +13% |
| Index Revenue | $182 million | +26% |
The Solutions revenue segment, which included the Financial Technology and Capital Access Platforms, demonstrated robust growth with a 26% year-over-year increase. Notable within this category is the Financial Technology division, which saw a significant 56% growth, driven by increased demand and integration benefits from acquisitions. Market Services also contributed positively, with a 13% increase in revenue, thanks to U.S. equity derivatives and cash equity gains.
Key Developments and Operational Highlights
- Significant ranking improvement to 5th place in Chartis' RiskTech100® global ranking.
- Nasdaq Verafin and AxiomSL received industry awards for leadership in financial crime management and regulatory reporting.
- Launched new AI product innovations in Financial Crime Management Technology.
- Completed the rollout of AI tools, including a Generative AI platform and AI copilot tools across tech teams.
C-Suite Comments
Adena Friedman, Chair and CEO, commended the company's continued double-digit growth in Solutions and highlighted progress in integrating Adenza to maximize value delivery. Sarah Youngwood, CFO, emphasized strong growth across key business platforms and the adept handling of deleveraging and synergy benefits. They both underscored Nasdaq's sustained efforts in innovation and client engagement as part of strategic priorities.
Capital Returns
Nasdaq returned $138 million to shareholders through dividends and executed $88 million in share repurchases, part of an ongoing share repurchase program, which has $1.7 billion authorized under it as of September 30, 2024.
Forward Guidance and Stock Movement
Nasdaq updated its non-GAAP operating expense guidance for 2024 to a range of $2,150 million to $2,180 million and an adjusted tax rate of 23.5% to 24.5%. Following the earnings announcement, Nasdaq's stock price experienced a slight increase of approximately 0.26%, indicating a positive reception from the market to the financial performance and outlook.
Nasdaq continues to embed innovation and strategic expansions as it evolves within the global financial systems market, leading with technology-driven growth and shareholder value enhancement.
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