NASDAQ$NDAQ

Nasdaq Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Nasdaq's Q2 2020 results reflected a resilient business adapting to deliver continued growth.

Nasdaq reported Q2 2020 net revenues of $699 million, a 12% increase year-over-year. GAAP EPS was $1.45, up 39% from Q2 2019, and non-GAAP EPS was $1.54, a 26% increase. The company issued a $500 million 30-year bond and repaid all commercial paper and borrowings under its revolver, improving available liquidity.

  • Net revenues increased by 12% compared to Q2 2019, reaching $699 million.
  • Non-trading segments revenues increased by 7%, driven by organic growth.
  • Market Services revenues rose by 22%, driven by record trading volumes in U.S. equities and options.
  • GAAP EPS increased by 39% to $1.45, and non-GAAP EPS increased by 26% to $1.54.

Headline financials

Total Revenue

$1.4B

Previous: $1.06B+31.8%
EPS (adj)

$0.51

Previous: $0.41+24.4%
IPOs on Nasdaq

42

No prior period
New Listings Nasdaq

55

No prior period
Listed Co. Nasdaq

3.2K

No prior period
Capital Expenditures

-$68M

Previous: -$63M-7.9%
Free Cash Flow

$173M

Previous: $111M+55.9%
Net Income

$241M

Previous: $174M+38.5%
Operating Income

$315M

Previous: $256M+23.0%
Gross Profit

$699M

Previous: $623M+12.2%
Cash & Equivalents

$711M

Previous: $333M+113.5%
Total Assets

$14.6B

Previous: $14.1B+3.0%
Stock-Based Comp

$23M

Previous: $20M+15.0%

Revenue & EPS history

Nasdaq · Revenue · Quarterly

$1.4B

Q2 2020+31.8%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Nasdaq · $276M total across 1 segment · Q2 2020

  • Market Services
    $276M+21.6%

Forward guidance

Nasdaq is narrowing its 2020 non-GAAP operating expense guidance to the range of $1,330 to $1,360 million and continues to expect its 2020 non-GAAP tax rate to be in the range of 25.5% to 27.5%.

Tailwinds

  • Infrastructure investments support strong demand.
  • Capital and resources to deliver long-term opportunities.
  • Depressed levels of corporate travel.
  • Lower event spending.
  • Delays in hiring.

Headwinds

  • Short-term uncertainties in the business climate.
  • Pandemic's impact on the economy.
  • Unfavorable changes in foreign exchange rates.
  • Unpredictability in the movement in foreign currency rates.
  • Future charges or reversals outside of the normal course of business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.8%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+9.4%

Q1 2011

Best reaction

-6.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%+5.7%+5.4%
Q4 2025-1.3%-11.1%-11.3%
Q3 2025+1.6%-0.5%-2.1%
Q2 2025-0.2%-1.8%-1.7%
Q1 2025+1.7%+3.3%+11.3%
Q4 2024+0.7%+0.9%+2.0%
Q3 2024+1.1%+2.7%+9.7%
Q2 2024+6.7%+10.2%+12.1%
Q1 2024-2.2%-2.7%+1.2%
Q4 2023-2.3%-4.2%-3.3%
Q3 2023+2.7%-0.2%+7.1%
Q2 2023-3.4%-0.6%+0.8%
Q1 2023+1.6%+1.7%-0.5%
Q4 2022-2.9%-3.7%-7.9%
Q3 2022-0.6%+2.7%+14.5%
Q2 2022+9.2%+8.0%+17.4%
Q1 2022-6.4%-8.0%-19.3%
Q4 2021-1.5%+2.4%-1.3%
Q3 2021-4.8%-3.5%-0.5%
Q2 2021+2.5%+3.1%+4.3%
Q1 2021+0.0%+0.2%+2.6%
Q4 2020-1.5%-1.8%-2.0%
Q3 2020+0.8%-1.2%-2.1%
Q2 2020+0.3%-0.4%-0.8%
Q1 2020-1.3%+6.0%+9.6%
Q4 2019+4.3%+6.0%-7.7%
Q3 2019+3.2%+0.9%+6.7%
Q2 2019-3.2%-4.2%-3.3%
Q1 2019-0.2%+2.0%+0.4%
Q4 2018+2.6%+1.3%+7.2%
Q3 2018+2.4%+3.0%+7.6%
Q2 2018-1.2%-2.9%-0.5%
Q1 2018+2.2%+2.4%+7.6%
Q4 2017-0.6%-5.4%-1.5%
Q3 2017-1.6%-1.4%+5.2%
Q2 2017+2.2%+2.2%+4.1%
Q1 2017-2.6%-3.0%-4.2%
Q4 2016+3.7%+3.2%+4.5%
Q3 2016-3.6%-3.6%-1.0%
Q2 2016+3.5%+4.3%+2.9%
Q1 2016-2.4%
Q4 2015+6.4%
Q3 2015+6.2%
Q2 2015+0.3%
Q1 2015-0.6%
Q4 2014+1.3%
Q3 2014-0.8%
Q2 2014+2.9%
Q1 2014-1.5%
Q4 2013+0.2%
Q3 2013+6.2%
Q2 2013-1.8%
Q1 2013+0.9%
Q4 2012+2.5%
Q3 2012-1.1%
Q2 2012+6.3%
Q1 2012-0.9%
Q4 2011+2.1%
Q3 2011+1.3%
Q2 2011-2.9%
Q1 2010+0.0%
Q1 2011+9.4%
Q4 2008+1.5%
Q4 2010+1.5%
Q3 2009+1.8%
Q3 2010+1.8%
Q2 2010+1.3%
Q4 2009+1.3%
Q2 2009+1.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro