Nasdaq Sees 6% YoY Increase in Net Revenue for Q3 2023

Nasdaq, Inc. has reported its financial results for the third quarter of 2023 (Q3 2023), recording an increase of 6% in net revenue on a year-on-year basis (YoY).

Financial Overview for Q3 2023

• Net revenue for the three months totaled $940 million, up 6% YoY and up 2% QoQ (quarter-on-quarterly basis).

• Solutions business revenues came in at $694 million, up 9% YoY and up 3% QoQ.

• Trading services net revenues were $236 million for the quarter, down 1% YoY and down 6% QoQ.

• Annualized Recurring Revenue (ARR) rose by 6% to $2,081 million on a yearly basis, compared to $2,073 million in the prior quarter. Annualized SaaS revenues increased 11% YoY.

• GAAP diluted earnings per share (EPS) was $0.60, up 2% YoY and up 11% QoQ. Non-GAAP diluted EPS was $0.71, up 4% YoY, remaining unchanged compared to Q2 2023.

• During the quarter, Nasdaq returned $108 million to its shareholders through dividends, and the company didn't repurchase any common stock. As of September 30, 2023, there was $2.0 billion remaining under the board authorized share repurchase program, following an approval by Nasdaq's board of directors in September 2023 to increase the authorized amount of the share repurchase program to an aggregate of $2.0 billion.

Adena Friedman, Chair and CEO of Nasdaq, commented: "Our third quarter 2023 results reflect Nasdaq's solid execution amid a continued dynamic economic and capital markets backdrop. We experienced some improvement in the IPO environment by welcoming marquee IPOs, we continued to broaden our Anti-Financial Crime clientele, and we introduced new innovations to our products and services.

"We have completed the antitrust review process for our announced acquisition of Adenza and we expect to close the transaction in the fourth quarter of 2023. With Adenza, we are excited to deepen our client relationships as we expand our role as a leading financial technology provider to the global financial system."

Ann Dennison, Executive Vice President and CFO of Nasdaq, said: "We delivered broad-based revenue growth in the third quarter and had particularly strong performance in our Index and Anti-Financial Crime businesses. With our continued strong cash flows, we are fully prepared to execute our capital plan to pay down debt, continue to increase our dividend, and repurchase shares in the coming quarters to achieve our financial goals with the announced Adenza acquisition."