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    Nasdaq Inc (NDAQ)

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    Nasdaq is a global technology company that provides platforms to enhance liquidity, transparency, and integrity in the global economy, serving corporate clients, investment managers, banks, brokers, and exchange operators . The company operates through three main business segments, offering a range of services and solutions that cater to different aspects of the financial markets . These segments include Capital Access Platforms, Financial Technology, and Market Services, each contributing significantly to Nasdaq's overall revenue .

    1. Market Services - Provides trading and clearing services across various asset classes, ensuring efficient and secure transactions.
    2. Capital Access Platforms - Enhances liquidity, transparency, and integrity for corporate issuers and the investment community, including Data & Listing Services, Index, and Workflow & Insights.
    3. Financial Technology - Offers risk management, regulatory reporting, and capital markets software solutions, including AxiomSL and Calypso, to meet the growing demand for financial technology services.
    NamePositionStart DateShort Bio
    Adena T. FriedmanChair and CEOJanuary 1, 2017Adena T. Friedman has been serving as the CEO of Nasdaq since January 1, 2017, and became the Chair of the Board on January 1, 2023. She has held various leadership positions at Nasdaq, including President and COO .
    Bradley J. PetersonEVP and CIO/CTOFebruary 2013Bradley J. Peterson has served as EVP and CIO/CTO at Nasdaq since February 2013. Previously, he was EVP and CIO at Charles Schwab, Inc. and CIO at eBay .
    Brendan BrothersSenior Strategic Advisor (transitioning from EVP, Head of Financial Crime Management Technology)September 2023Brendan Brothers was appointed as EVP and Head of Financial Crime Management Technology in September 2023. He transitioned to Senior Strategic Advisor on September 6, 2024 .
    Tal CohenPresidentApril 2023Tal Cohen was appointed as President of Nasdaq in April 2023. He leads Nasdaq's Market Services and Financial Technology divisions .
    Michelle L. DalySVP, Controller, and Principal Accounting OfficerMay 2021Michelle L. Daly has served as SVP, Controller, and Principal Accounting Officer at Nasdaq since May 2021. She previously held senior leadership positions at BlackRock and Goldman Sachs .
    P.C. Nelson GriggsPresidentApril 18, 2023P.C. Nelson Griggs was appointed as President of Nasdaq effective April 18, 2023. He has been with Nasdaq since 2001, holding various roles including EVP, Corporate Platforms .
    Jeremy SkuleEVP, Chief Strategy Officer, and Executive Chair of Financial Crime Management TechnologyJanuary 2021Jeremy Skule has served as EVP and Chief Strategy Officer at Nasdaq since January 2021. He also serves as the Executive Chair of Financial Crime Management Technology .
    Sarah YoungwoodEVP and CFODecember 1, 2023Sarah Youngwood has been serving as EVP and CFO at Nasdaq since December 1, 2023. She was previously the Group CFO at UBS and held various roles at JPMorgan Chase .
    John A. ZeccaEVP and Chief Legal, Risk and Regulatory OfficerOctober 2019John A. Zecca has served as EVP and Chief Legal and Regulatory Officer since October 2019 and took on the role of Chief Risk Officer in April 2022 .
    Stephanie ChampionEVP and Head of Nasdaq VerafinSeptember 6, 2024Stephanie Champion was appointed as EVP and Head of Nasdaq Verafin on September 6, 2024. She has been with Verafin for 13 years, holding several key leadership roles .
    1. With the significant decrease in professional services revenue following the completion of a major client project last year, how do you plan to sustain and grow revenue in the Market Technology segment, especially considering the tough year-over-year comparisons and potential roll-off of certain contracts?
    2. The pushout of a key Calypso client's renewal by up to two quarters has impacted your revenue recognition this quarter; does this indicate potential challenges in the renewal environment for your fintech solutions, and how might this affect your revenue expectations in the near term?
    3. Despite generating strong free cash flow, your leverage ratio remains relatively high at 3.8x; how does this elevated leverage impact your ability to invest in growth opportunities or return capital to shareholders, and what are your plans to deleverage more aggressively?
    4. Given the decline in listings revenue due to lower listings activity and prior year delistings, what specific strategies are you implementing to rejuvenate growth in your listings business, especially in the face of competitive pressures and a modest uptick in U.S. listings?
    5. While you've seen some success in upselling Verafin solutions to Tier 1 and Tier 2 clients, lengthy sales cycles pose a challenge; how are you addressing these challenges to accelerate revenue growth in your anti-financial crime technology offerings?
    Program DetailsProgram 1
    Approval DateSeptember 2023
    End Date/DurationNo defined expiration date
    Total additional amount$2.0 billion
    Remaining authorization amount$1.7 billion as of September 30, 2024
    DetailsRepurchases can be made through various methods such as open market purchases, privately-negotiated transactions, block purchase techniques, or an accelerated share repurchase program. The program can be suspended, modified, or discontinued at any time.
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$4992025 Notes5.6505.1% = (499 / 9,858) * 100
    2026$5003.850% senior unsecured notes (2026 Notes)3.8505.1% = (500 / 9,858) * 100
    2028$1,0005.350% senior unsecured notes (2028 Notes)5.35010.1% = (1,000 / 9,858) * 100
    2029€600 ($665)1.750% senior unsecured notes (2029 Notes)1.7506.7% = (665 / 9,858) * 100
    2030€600 ($664)0.875% senior unsecured notes (2030 Notes)0.8756.7% = (664 / 9,858) * 100
    2031$6501.650% senior unsecured notes (2031 Notes)1.6506.6% = (650 / 9,858) * 100
    2032€750 ($827)4.500% senior unsecured notes (2032 Notes)4.5008.4% = (827 / 9,858) * 100
    2033€615 ($681)0.900% senior unsecured notes (2033 Notes)0.9006.9% = (681 / 9,858) * 100
    2034$1,2405.550% senior unsecured notes (2034 Notes)5.55012.6% = (1,240 / 9,858) * 100
    2040$6442.500% senior unsecured notes (2040 Notes)2.5006.5% = (644 / 9,858) * 100
    2050$4873.250% senior unsecured notes (2050 Notes)3.2504.9% = (487 / 9,858) * 100
    2052$5413.950% senior unsecured notes (2052 Notes)3.9505.5% = (541 / 9,858) * 100
    2053$7385.950% senior unsecured notes (2053 Notes)5.9507.5% = (738 / 9,858) * 100
    2063$7386.100% senior unsecured notes (2063 Notes)6.1007.5% = (738 / 9,858) * 100

    Competitors mentioned in the company's latest 10K filing.

    • Cboe Global Markets, Inc. (Cboe) - Competitor in U.S. options markets and cash equities .
    • Miami International Holdings, Inc. (MIAX) - Competitor in U.S. options markets and cash equities .
    • Intercontinental Exchange, Inc. (ICE) - Competitor in U.S. options markets and cash equities .
    • Members Exchange (MEMX) - Competitor in U.S. options markets and cash equities .
    • BOX Options Market - Competitor in U.S. options markets .
    • The Investors Exchange - Competitor in U.S. cash equities .
    • Long Term Stock Exchange - Competitor in U.S. cash equities .
    • Toronto Stock Exchange (TSX) - Principal competitor in Canadian cash equities exchange .
    • Euronext N.V. - Competitor in European cash equities markets .
    • Deutsche Börse AG - Competitor in European cash equities markets .
    • London Stock Exchange (LSE) - Competitor in European cash equities markets .
    • Cboe - Competitor in European Multilateral Trading Facilities (MTFs) .
    • Turquoise - Competitor in European Multilateral Trading Facilities (MTFs) .
    • Aquis - Competitor in European Multilateral Trading Facilities (MTFs) .
    • Eurex - Competitor in trading and clearing of options and futures on European equities .
    • ICE Futures Europe - Competitor in trading and clearing of options and futures on European equities .
    • London Clearing House (LCH) - Competitor in trading and clearing of options and futures on European equities .
    • Systematic Internalizers (SIs) - Competitors in European equities markets .
    • Core banking solution providers - Competitors in Financial Crime Management Technology and trade and market surveillance businesses .
    • FinTech start-ups - Competitors in Financial Crime Management Technology and trade and market surveillance businesses .
    • Enterprise solution providers - Competitors in Financial Crime Management Technology and trade and market surveillance businesses .
    • Point solution providers - Competitors in Financial Crime Management Technology and trade and market surveillance businesses .
    • AWS - Partner in cloud-based exchanges and market technology offerings .
    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1986 PresentCurrent auditor

    Recent developments and announcements about NDAQ.

    Financial Reporting

      Earnings Report

      ·
      7 days ago

      Nasdaq, Inc. (NDAQ) has released its fourth quarter and full-year 2024 earnings results as of January 29, 2025. Below are the key highlights and trends from the report:

      Financial Performance

      • 2024 Net Revenues: $4.6 billion (GAAP) and $4.7 billion (non-GAAP), reflecting a 19% increase over 2023, or 9% growth on an adjusted basis.
      • Q4 2024 Net Revenue: $1.2 billion, up 10% year-over-year.
      • Annualized Recurring Revenue (ARR): $2.8 billion, a 7% increase year-over-year, with SaaS revenues growing 14% and representing 37% of ARR.
      • Financial Technology Revenue: $438 million in Q4, up 10% year-over-year, or 7% on an adjusted basis.
      • Index Revenue: $188 million in Q4, a 29% increase, driven by $80 billion in net inflows over the trailing twelve months.
      • GAAP Diluted EPS: Fell 7% for 2024 but grew 72% in Q4 2024. Non-GAAP diluted EPS was flat for the year but grew 5% in Q4.

      Key Business Highlights

      • Solutions Revenue: $949 million in Q4, up 10% year-over-year, driven by growth in Index and Financial Technology.
      • Market Services Net Revenue: $268 million in Q4, up 8% year-over-year, with strong performance in U.S. equity derivatives and cash equities.
      • Index Business: Launched a record 116 new products in 2024, with $80 billion in net inflows and a record $647 billion in ETP AUM at year-end.
      • IPO Leadership: Nasdaq led the U.S. market with 180 IPOs in 2024, raising $23 billion in proceeds. It achieved an 80% win rate among eligible operating company IPOs.

      Strategic Execution

      • Integration of Acquisitions: The integration of AxiomSL and Calypso was completed, achieving $80 million in net expense synergies a year ahead of schedule. Nasdaq now targets $140 million in annual cost savings by the end of 2025.
      • Cloud Transition: Cloud bookings for AxiomSL and Calypso reached 60% of new annual contract value in Q4, increasing the cloud mix of ARR to 27%.
      • Financial Crime Management: Achieved 23% ARR growth with 114% net revenue retention. Nasdaq Verafin added 102 new SMB clients and launched in Europe.

      Shareholder Returns

      • Dividends: Returned $138 million to shareholders in Q4 through dividends.
      • Share Repurchase: Repurchased $181 million of senior unsecured notes in Q4. As of December 31, 2024, $1.7 billion remains under the board-authorized share repurchase program.

      2025 Guidance

      • Non-GAAP Operating Expenses: Expected to range between $2,245 million and $2,325 million.
      • Non-GAAP Tax Rate: Projected between 22.5% and 24.5%.

      CEO Commentary

      Adena Friedman, Chair and CEO, highlighted 2024 as a transformative year, emphasizing Nasdaq's progress as a scalable platform company and its focus on innovation, cross-selling, and client relationship expansion.

      CFO Commentary

      Sarah Youngwood, EVP and CFO, noted that Nasdaq exceeded its revenue growth and profitability targets for 2024, reflecting strong execution and long-term growth potential.

      Conclusion

      Nasdaq's 2024 results demonstrate strong financial performance, strategic execution, and leadership in key areas such as IPOs, index innovation, and financial technology. The company is well-positioned for continued growth in 2025.

      Source(s): , ,