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Dec 31, 2020

Nasdaq Q4 2020 Earnings Report

Nasdaq reported strong growth in revenue and EPS for Q4 2020.

Key Takeaways

Nasdaq's Q4 2020 net revenues were $788 million, a 22% increase year-over-year, driven by an 18% increase in Solutions segments revenues and a 29% increase in Market Services revenues. GAAP EPS increased by 11% to $1.34, and non-GAAP EPS increased by 24% to $1.60. The company also announced the pending acquisition of Verafin, expected to close in Q1 2021, to expand its anti-financial crime franchise.

Q4 2020 net revenues increased by 22% year-over-year to $788 million.

GAAP diluted earnings per share increased by 11% to $1.34.

Non-GAAP diluted earnings per share increased by 24% to $1.60.

Nasdaq announced the pending acquisition of Verafin to expand its anti-financial crime franchise.

Total Revenue
$788M
Previous year: $646M
+22.0%
EPS
$0.53
Previous year: $0.43
+23.3%
IPOs Nasdaq Stock Market
142
Previous year: 50
+184.0%
New Listings Nasdaq Stock Market
199
Previous year: 107
+86.0%
New Listings Nasdaq Nordic Baltic
34
Previous year: 17
+100.0%
Gross Profit
$583M
Previous year: $457M
+27.6%
Cash and Equivalents
$2.75B
Previous year: $332M
+726.8%
Free Cash Flow
$375M
Previous year: $300M
+25.0%
Total Assets
$18B
Previous year: $13.9B
+29.1%

Nasdaq

Nasdaq

Nasdaq Revenue by Segment

Forward Guidance

Nasdaq initiated its 2021 non-GAAP operating expense guidance to a range of $1,550 to $1,620 million and expects its 2021 non-GAAP tax rate to be in the range of 25.0% to 27.0%.

Positive Outlook

  • 2021 non-GAAP operating expense guidance midpoint reflects a 3% increase due to organic growth.
  • Guidance includes impacts of foreign exchange rates.
  • Guidance includes impacts of merger and acquisition activity.
  • Verafin acquisition expected to close in the first quarter of 2021.
  • Expected non-GAAP tax rate between 25.0% and 27.0%.