NASDAQ$NDAQ

Nasdaq Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Nasdaq's Q3 2023 results reflected solid execution amid a dynamic economic and capital markets backdrop, with broad-based growth driving solutions businesses revenue acceleration.

Nasdaq reported a 6% increase in net revenues, reaching $940 million, driven by a 9% growth in Solutions Businesses revenues. GAAP diluted EPS increased by 2% to $0.60, while non-GAAP diluted EPS rose by 4% to $0.71. The company generated over $1.6 billion in free cash flow over the trailing twelve month period and returned $108 million to shareholders through dividends.

  • Net revenues increased by 6% compared to Q3 2022, with Solutions Businesses revenues up by 9%.
  • Annualized Recurring Revenue (ARR) increased by 6% year-over-year, with SaaS revenues representing 37% of ARR.
  • Anti-Financial Crime revenue increased by 21% compared to the prior year quarter.
  • GAAP diluted EPS increased by 2%, and non-GAAP diluted EPS increased by 4% compared to Q3 2022.

Headline financials

Total Revenue

$1.45B

Previous: $1.56B-6.8%
EPS (adj)

$0.71

Previous: $0.68+4.4%
IPOs on Nasdaq

39

No prior period
IPOs Nordic/Baltic

0

No prior period
New Listings Nasdaq

87

No prior period
New Listings Nordic

3

No prior period
Listed Co. Nasdaq

4.1K

No prior period
Listed Co. Nordic

1.2K

No prior period
Capital Expenditures

-$116M

Previous: -$118M+1.7%
Free Cash Flow

$178M

Previous: $176M+1.1%
Net Income

$294M

Previous: $294M+0.0%
Operating Income

$431M

Previous: $398M+8.3%
Gross Profit

$940M

Previous: $890M+5.6%
Cash & Equivalents

$5.34B

Previous: $301M+1674.1%
Total Assets

$24.4B

Previous: $22.9B+6.1%
Stock-Based Comp

$30M

Previous: $27M+11.1%

Revenue & EPS history

Nasdaq · Revenue · Quarterly

$1.45B

Q3 2023-6.8%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Nasdaq · $236M total across 1 segment · Q3 2023

  • Market Services
    $236M-22.6%

Forward guidance

Nasdaq is updating its 2023 non-GAAP operating expense guidance to a range of $1,785 million to $1,805 million and its 2023 non-GAAP tax rate guidance to be in the range of 24.5% to 25.5%.

Tailwinds

  • Completing the acquisition of Adenza
  • Expanding market-based solutions for environmental sustainability
  • Achieving strong revenue growth in Anti-Financial Crime
  • Benefiting from index performance as a top-line growth driver
  • Maintaining listings leadership in the U.S. and launching a revamped MarketSite

Headwinds

  • Ability to secure regulatory approvals on the terms expected, in a timely manner or at all
  • Nasdaq’s ability to successfully integrate Adenza’s operations
  • The impact of Adenza’s business model on Nasdaq’s ability to forecast revenue results
  • Disruption from the transaction making it more difficult to maintain business and operational relationships
  • The negative effects of the announcement or the consummation of the proposed transaction on the market price of Nasdaq’s common stock or on Nasdaq’s operating results

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 Q3 2023

Historical avgQ3 2023

+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