The chart below shows how NDAQ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NDAQ sees a -0.90% change in stock price 10 days leading up to the earnings, and a -0.23% change 10 days following the report. On the earnings day itself, the stock moves by +0.36%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Growth: We delivered a strong quarter with 10% year-over-year growth in both net revenues and solutions revenue, marking our fourth consecutive quarter of double-digit solutions growth.
Annual Recurring Revenue Growth: Total annualized recurring revenue or ARR grew 8% to $2.7 billion.
Operating Margin Increase: Our operating margin increased to 54%.
Integration Progress and Synergies: We continue to make progress on the successful integration of Axiom SL and Calypso, which has enabled us to action over 80% of our net expense synergies target and our strong free cash flow generation has allowed us to continue to deliver, resulting in a 3.8 times leverage ratio in the quarter.
Operating Company Success: We welcomed 33 operating companies, contributing to a 75% win rate year-to-date through September of Nasdaq eligible operating company listings.
Negative
Margin Improvement: Expenses increased 5% in the quarter, resulting in an operating margin of 54% and an EBITDA margin of 56%, each up two percentage points.
Operating Expenses Increase: Operating expenses were $543 million, up 5%, reflecting investment in the business, partially offset by synergy achievement.
Decline in Profitability: Net income was $429 million and diluted EPS of $0.74, indicating a decline in profitability compared to previous quarters.
Annualized Recurring Revenue Growth: Total annualized recurring revenue or ARR grew 8% to $2.7 billion, which is lower than expected growth rates.
Quarterly Growth Performance: The division delivered 2% ARR growth and 9% revenue growth, which is below the anticipated targets for the quarter.
Nasdaq, Inc. (NDAQ) Q3 2024 Earnings Call Transcript
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