Nasdaq Records Net Revenues of $925M with 4% YoY Increase for Q2 2023

Nasdaq, Inc. has reported its financial results for the second quarter of 2023 (Q2 2023), recording the net revenue of more than $900 million for the quarter.

Financial Review

• Net revenues for the quarter totaled $925 million, increasing 4% compared to $893 million in Q2 2022 and increasing 1% compared to $914 million in Q1 2023.

• Solutions business revenues amounted to $674 million, up 6%, or $37 million, on a yearly basis.

• Trading Services net revenues decreased by 1% to $250 million, or $2 million, on a yearly basis.

• Annualized Recurring Revenue (ARR) rose by 6% to $2,073 million on a yearly basis, and Annualized SaaS revenues yearly increased by 11%.

• GAAP diluted earnings per share (EPS) was $0.54, decreasing by 13% compared to Q2 2022. And non-GAAP Diluted EPS was $0.71, increasing by 3% compared to Q2 2022.

• Nasdaq returned $109 million to shareholders in the second quarter of 2023 through dividends.

• During Q2 2023, the company didn’t purchase any of its common stock. As of June 30, 2023, there was $491 million remaining under its authorized share repurchase program.

Adena Friedman, Chair and CEO at Nasdaq, said: "Nasdaq achieved another quarter of solid financial results in an uncertain environment as we took a significant step to expand our ability to serve our financial clients in solving their most complex operational challenges.

"Our planned acquisition of Adenza represents another critical step in our multi-year transformation to become a leading technology partner to the financial system, with a specific focus on managing liquidity and capital risk, reducing financial crime, and meeting regulatory obligations. Our goal is to deliver mission-critical platforms that enhance liquidity, transparency, and integrity of the global financial system."

Ann Dennison, Executive Vice President and CFO at Nasdaq, added: "Our solid financial performance in the second quarter reflects the durability and recurring nature of our business and the resilient demand for our diversified set of client solutions.

"In June, we secured $5 billion in bond financing for the Adenza acquisition at favorable rates and saw exceptional demand for our multi-currency global debt offerings. Our consistent cash flow generation makes Nasdaq well positioned to execute our deleveraging plan while making focused, organic investments that advance our strategy, while executing our dividend growth and share repurchase strategies."