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Sep 30, 2020

Nasdaq Q3 2020 Earnings Report

Nasdaq reported a strong third quarter, with revenue growth driven by its diversified product offerings and business model, capitalizing on opportunities presented by the capital markets backdrop.

Key Takeaways

Nasdaq reported a 13% increase in net revenues to $715 million for Q3 2020, driven by organic growth in non-trading segments and elevated trading volumes in Market Services. GAAP EPS increased by 76% to $1.58, and non-GAAP EPS increased by 20% to $1.53.

Net revenues increased by 13% compared to Q3 2019, reaching $715 million.

GAAP operating margin increased to 46%, while non-GAAP operating margin increased to 52%.

GAAP diluted EPS increased by 76% to $1.58, and non-GAAP diluted EPS increased by 20% to $1.53.

The company returned $115 million to shareholders through share repurchases and dividends during the quarter.

Total Revenue
$715M
Previous year: $632M
+13.1%
EPS
$0.51
Previous year: $0.42
+21.4%
IPOs Nasdaq Stock Market
105
Previous year: 41
+156.1%
New Listings Nasdaq Stock Market
144
Previous year: 66
+118.2%
Listed Companies Nasdaq Stock Market
3.25K
Gross Profit
$517M
Previous year: $457M
+13.1%
Cash and Equivalents
$584M
Previous year: $304M
+92.1%
Free Cash Flow
-$64M
Previous year: $76M
-184.2%
Total Assets
$14.8B
Previous year: $13B
+14.3%

Nasdaq

Nasdaq

Nasdaq Revenue by Segment

Forward Guidance

Nasdaq is updating its 2020 non-GAAP operating expense guidance to a range of $1,360 to $1,370 million and expects its 2020 non-GAAP tax rate to be in the range of 26% to 27%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income