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 -1.48% change in stock price 10 days leading up to the earnings, and a -0.43% change 10 days following the report. On the earnings day itself, the stock moves by +0.39%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Increase Overview: Nasdaq's net revenues for 2024 reached $4.7 billion, marking a 9% increase from 2023, with solutions revenue growing by 10%.
Annual Recurring Revenue Increase: Annual recurring revenue (ARR) ended the year at $2.8 billion, reflecting a year-over-year increase of 7.5%.
Financial Technology Revenue Growth: The Financial Technology division achieved a 10% revenue growth for the year, with Financial Crime Management Technology revenue increasing by 22%.
Client Engagement Success: In 2024, Nasdaq secured 263 new clients, 424 upsells, and 11 cross-sells, demonstrating strong client engagement and market penetration.
IPO Market Leadership: The Capital Access Platforms division generated 180 IPOs, raising $23 billion in total proceeds, maintaining Nasdaq's position as the top U.S. exchange for IPOs for the sixth consecutive year.
Negative
Operating Expenses Increase: Operating expenses increased by 6% to $2,162,000,000 for the year, driven by inflation and employee-related costs, which could pressure margins going forward.
Slowdown in ARR Growth: Capital Access Platforms experienced only 3% ARR growth, indicating a slowdown in client retention and potential challenges in attracting new business.
Market Share Decline: Market Services reported a decline in market share, contributing to lower revenue growth despite an overall increase in trading volumes.
Corporate Solutions Revenue Challenges: The Corporate Solutions segment's revenue growth was limited to just 1% for the year, reflecting ongoing challenges in the IPO environment and elongated corporate buying cycles.
Quarterly Revenue Volatility: Financial Technology's quarterly revenue growth of 7% was significantly lower than the annual growth rate, suggesting potential volatility in future performance.
Earnings call transcript: Nasdaq Q4 2024 sees revenue rise, stock steady
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