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Sep 30, 2023
Nasdaq Q3 2023 Earnings Report
Nasdaq's Q3 2023 results reflected solid execution amid a dynamic economic and capital markets backdrop, with broad-based growth driving solutions businesses revenue acceleration.
Key Takeaways
Nasdaq reported a 6% increase in net revenues, reaching $940 million, driven by a 9% growth in Solutions Businesses revenues. GAAP diluted EPS increased by 2% to $0.60, while non-GAAP diluted EPS rose by 4% to $0.71. The company generated over $1.6 billion in free cash flow over the trailing twelve month period and returned $108 million to shareholders through dividends.
Net revenues increased by 6% compared to Q3 2022, with Solutions Businesses revenues up by 9%.
Annualized Recurring Revenue (ARR) increased by 6% year-over-year, with SaaS revenues representing 37% of ARR.
Anti-Financial Crime revenue increased by 21% compared to the prior year quarter.
GAAP diluted EPS increased by 2%, and non-GAAP diluted EPS increased by 4% compared to Q3 2022.
Revenue by Segment
Forward Guidance
Nasdaq is updating its 2023 non-GAAP operating expense guidance to a range of $1,785 million to $1,805 million and its 2023 non-GAAP tax rate guidance to be in the range of 24.5% to 25.5%.
Positive Outlook
- Completing the acquisition of Adenza
- Expanding market-based solutions for environmental sustainability
- Achieving strong revenue growth in Anti-Financial Crime
- Benefiting from index performance as a top-line growth driver
- Maintaining listings leadership in the U.S. and launching a revamped MarketSite
Challenges Ahead
- Ability to secure regulatory approvals on the terms expected, in a timely manner or at all
- Nasdaq’s ability to successfully integrate Adenza’s operations
- The impact of Adenza’s business model on Nasdaq’s ability to forecast revenue results
- Disruption from the transaction making it more difficult to maintain business and operational relationships
Historical Earnings Impact
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Avg. Return Before/After Earnings
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