Nasdaq Reports Net Revenue of $1.12Bn for Q4 2023, Up 23.3% YoY

Nasdaq, Inc. released its financial results for the fourth quarter (Q4) and the full year 2023, highlighting a strong performance during the period.

Financial Overview for Q4 2023

• Net revenue for the quarter reached $1.12 billion, an increase of 23.3% compared to $906 million in the same period of 2022.

• Solutions revenues rose by 32.3% from $650 million in the year-ago quarter to $860 million.

• Market services net revenues were $247 million, up 0.8% compared to $245 million in Q4 2022.

• Annualized Recurring Revenue (ARR) totaled $2.59 billion for the three months, increasing 29.2% compared to $2.00 billion of Q4 2022.

• GAAP diluted earnings per share (EPS) came in at $0.36, dropping 25.0% compared to $0.48 in the previous Q4.

• Non-GAAP Diluted EPS came in at $0.72, rising 12.5% compared to $0.64 in Q4 2022.

• The company returned $127 million to shareholders through dividends, repurchased $110 million in shares of its common stock, and repaid $260 million in debt during the fourth quarter of 2023. As of December 31, 2023, there was $1.9 billion remaining under the board authorized share repurchase program.

Financial Overview for Full Year 2023

• Net revenue for the year totaled $3.90 billion, an increase of 8.7% compared to $3.58 billion in 2022.

• Solutions Revenues increased by 12.7% from $2.55 billion in 2022 to $2.87 billion.

• Market services net revenues were $987 million, down 0.1% slightly compared to $988 million in the prior year.

• GAAP diluted EPS came in at $2.08, decreasing 8.0% compared to $2.26 in 2022.

• Non-GAAP Diluted EPS came in at $2.82, increasing 6.0% compared to $2.66 in 2022.

Adena Friedman, Chair and CEO at Nasdaq, said: “We delivered another strong year of operating performance in a dynamic economic and capital markets backdrop. We executed well across our business in 2023, maintaining our listings leadership in the U.S., achieving a breakthrough year for Verafin in our strategy to move upmarket, and introducing new innovations across our products and services. We successfully completed our acquisition of Adenza, bolstering our suite of mission-critical technology solutions, and accelerating our strategic vision of being the trusted fabric of the world's financial system.”

Sarah Youngwood, Executive Vice President and CFO at Nasdaq, said: “I am excited to join Nasdaq at such a transformational time for the firm. Despite an uncertain environment, we delivered solid financial performance and strong cash flow generation. With our acquisition of Adenza now closed, we are focused on achieving our deal-related financial goals including our cross-sell and synergy targets as well as debt paydown.”