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Jun 30, 2020
Nasdaq Q2 2020 Earnings Report
Nasdaq's Q2 2020 results reflected a resilient business adapting to deliver continued growth.
Key Takeaways
Nasdaq reported Q2 2020 net revenues of $699 million, a 12% increase year-over-year. GAAP EPS was $1.45, up 39% from Q2 2019, and non-GAAP EPS was $1.54, a 26% increase. The company issued a $500 million 30-year bond and repaid all commercial paper and borrowings under its revolver, improving available liquidity.
Net revenues increased by 12% compared to Q2 2019, reaching $699 million.
Non-trading segments revenues increased by 7%, driven by organic growth.
Market Services revenues rose by 22%, driven by record trading volumes in U.S. equities and options.
GAAP EPS increased by 39% to $1.45, and non-GAAP EPS increased by 26% to $1.54.
Revenue by Segment
Forward Guidance
Nasdaq is narrowing its 2020 non-GAAP operating expense guidance to the range of $1,330 to $1,360 million and continues to expect its 2020 non-GAAP tax rate to be in the range of 25.5% to 27.5%.
Positive Outlook
- Infrastructure investments support strong demand.
- Capital and resources to deliver long-term opportunities.
- Depressed levels of corporate travel.
- Lower event spending.
- Delays in hiring.
Challenges Ahead
- Short-term uncertainties in the business climate.
- Pandemic's impact on the economy.
- Unfavorable changes in foreign exchange rates.
- Unpredictability in the movement in foreign currency rates.
- Future charges or reversals outside of the normal course of business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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