Executive Summary

Q4 2024 net revenue rose 10% year-over-year to $1.23B, with non-GAAP operating margin steady at 55% and non-GAAP EPS at $0.76; segment strength in Index and Financial Technology offset softer Regulatory Technology within FinTech .
Index delivered a standout quarter: revenue up 29% YoY to $188M, period-end ETP AUM reached $647B, with $28B net inflows in Q4 and $80B TTM, reinforcing durable, asset-based fee momentum .
Cash from operations was $705M in Q4 and $1.94B for 2024; deleveraging continued alongside disciplined capital returns (Q4 dividends $138M; $181M senior note repurchases) .
2025 guidance: non-GAAP operating expenses of $2.245–$2.325B and non-GAAP tax rate of 22.5%–24.5%; management expanded the efficiency program to $140M annual cost savings by end-2025 (inclusive of the Adenza/AxiomSL-Calypso synergies) .
Strategic update: Nasdaq will exit its Nordic power futures business via sale to Euronext (migration planned by H1 2026); focus sharpens on core Market Services and FinTech growth vectors .

What Went Well and What Went Wrong

What Went Well

Index momentum: revenue up 29% YoY to $188M; record ETP AUM of $647B; net inflows of $28B in Q4 and $80B TTM underscored strong asset-gathering in insurance annuities and new client partnerships .
Financial Technology resilience: division revenue up 10% YoY (adjusted up 7%); ARR up 12% organically in Q4, with Verafin net revenue retention at 114% and 102 new SMB clients; cloud bookings reached 60% in Q4 across AxiomSL/Calypso .
Operating leverage: Q4 GAAP operating income rose 47% YoY; non-GAAP operating income up 10% YoY; non-GAAP margin steady at 55% on disciplined OpEx despite ongoing investments in technology and people .
CEO tone: “2024 was a transformative year… executing well across strategic priorities,” highlighting integration of AxiomSL/Calypso and One Nasdaq cross-sell strategy .

What Went Wrong

Regulatory Technology softness vs prior-year comp: Q4 Regulatory Tech revenue declined to $98M from $110M, reflecting timing and ratable revenue recognition changes for AxiomSL on-prem contracts .
Q4 Market Services saw a $4M decrease in U.S. tape plan revenue despite strength in U.S. equity derivatives and cash equities; market-wide off-exchange shift remains a structural headwind .
GAAP EPS declined 7% for full-year 2024 (to $1.93) due to higher amortization and restructuring expenses tied to Adenza integration, though Q4 GAAP EPS grew 72% YoY on operating improvement .
S&P Global consensus estimates were unavailable at time of analysis; cannot quantify beat/miss vs Street for Q4 [GetEstimates error].

Financial Results

Income Statement and EPS vs Prior Year and Prior Quarter

Metric	Q4 2023	Q3 2024	Q4 2024
Net Revenue ($USD Millions)	$1,117	$1,146	$1,227
GAAP Operating Margin (%)	32%	39%	42%
Non-GAAP Operating Margin (%)	55%	54%	55%
GAAP Diluted EPS ($)	$0.36	$0.53	$0.61
Non-GAAP Diluted EPS ($)	$0.72	$0.74	$0.76

Segment Revenue Breakdown (Solutions and Market Services)

Segment / Sub-Segment	Q4 2023	Q4 2024
Capital Access Platforms – Data & Listing Services ($M)	$189	$192
Capital Access Platforms – Index ($M)	$146	$188
Capital Access Platforms – Workflow & Insights ($M)	$126	$131
Financial Technology – Financial Crime Mgmt Tech ($M)	$60	$73
Financial Technology – Regulatory Technology ($M)	$110	$98
Financial Technology – Capital Markets Technology ($M)	$229	$267
Market Services – Net Revenue ($M)	$247	$268
Total Net Revenue ($M)	$1,117	$1,227

KPIs and Operating Metrics

KPI	Q4 2023	Q3 2024	Q4 2024
Annualized Recurring Revenue (ARR, $M)	$2,588–$2,768 (year-end level presented as $2,768)	$2,736	$2,768
Annualized SaaS % of ARR	35%–approx. (context: increased 2–3 pp YoY)	37%	37%
Index – Period-end ETP AUM ($B)	$473	$600	$647
Index – TTM Net Inflows ($B)	$31	$62	$80
U.S. Equity Options – Total Industry ADV (M contracts)	40.2	44.5	47.5
U.S. Equity Options – Total matched market share (Nasdaq, %)	30.8%	30.2%	30.3%
IPOs – U.S. Nasdaq Stock Market (count)	28	48	66
Total New Listings – U.S. Nasdaq Stock Market (count)	100	138	162

Notes: ARR is reported at period-end; SaaS share rose to 37% in Q4 2024; ETP AUM and inflows reflect Index’s asset-based scale .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Non-GAAP Operating Expenses ($USD Millions)	FY 2025	N/A	$2,245–$2,325	Initiated
Non-GAAP Tax Rate (%)	FY 2025	N/A	22.5–24.5	Initiated
Efficiency Program (Annual Cost Savings, $USD Millions)	By end-2025	$80 (AxiomSL/Calypso net expense synergies)	$140 total (incl. broadened firm-wide)	Raised
Dividend per Share ($)	Q1 2025 payable Mar 28	$0.24 (ongoing rate)	$0.24; payable Mar 28, record Mar 14	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology initiatives	Rolled out AI copilot tools to 100% of developers; GenAI features in Verafin/BoardVantage/eVestment; Calypso AI-based XVA speeds up to 100x	Expanded AI capabilities across divisions; focus shifted from “exploration” to driving “impact” with productivity gains and new product features in 2025	Accelerating
FinTech cross-sell strategy	Pipeline >10% cross-sell; campaigns across AxiomSL/Calypso/Market Tech; on track to exceed $100M run-rate by 2027	17 cross-sells since Adenza close; 4 in Q4; campaigns continue; target remains >$100M run-rate by 2027	Positive momentum
Regulatory/Macro backdrop	Soft landing narrative; improving IPO pipeline; ECB rate cuts; deleveraging progress	Pro-growth tone under new administration; supportive of calibrated regulation; push to reduce burdens on public companies and proxy/accounting reforms	Constructive
Product performance – Index	Q3: Index revenue +26%; AUM avg $575B; strong net inflows	Q4: Index revenue +29%; ETP AUM $647B; $28B inflows in Q4 and $80B TTM	Strengthening
Listings & Corporate Solutions	Q3: listings uptick; Corporate Solutions soft; expectation of moderated delisting in 2025	Q4: 66 IPOs; 162 total new listings; Corporate Solutions still below medium-term outlook; conversion lag after IPO	Mixed
Professional Services revenue (FinTech)	Q3: PS fees lower due to prior large 2023 implementation; recovery expected in 2025	Q4: PS recovery expected in 2025 given signed Calypso/Market Tech engagements and AxiomSL deals; ARR vs revenue timing explained	Improving into 2025

Management Commentary

CEO Adena Friedman: “2024 was a transformative year for Nasdaq… executing well across our strategic priorities, including driving cross-sell opportunities, innovating across our solutions, and expanding client relationships with our One Nasdaq strategy” .
CFO Sarah Youngwood: “We delivered strong revenue growth and profitability across 2024 and are tracking ahead of schedule against our deleveraging and cost synergy targets” .
On AI impact: “We’re embedding GenAI capabilities into product road maps… costs have declined dramatically… improving client ROI and retention” .
On regulatory trend and AxiomSL demand: “AxiomSL serves banks globally… Regulatory Tech expected at high end of its range in 2025; 69% of Adenza (Calypso/AxiomSL) revenues from non-U.S. banks” .

Q&A Highlights

FinTech growth mix and outlook: Financial Crime Mgmt expected at low end of mid-20s in 2025 given Tier 1/Tier 2 ramp timing; FinTech overall within 10–14% medium-term range .
Professional Services trajectory: 2025 recovery anticipated due to signed implementations; PS revenues follow sales; explains ARR vs revenue dynamics (Calypso renewals recognize upfront license revenue; AxiomSL ratable) .
Bank M&A implications: Contract structures (Verafin pricing tiers by assets) and broader regulatory requirements create net opportunity; limited paralysis expected given global pipeline breadth .
U.S. tick rule: Access fee cuts may widen spreads and reduce lit market incentives; financial impact to Nasdaq limited but investor experience risk noted .
Listings pipeline and Corporate Solutions: IPO conversions to paid solutions lag post-listing; ESG demand shifting toward Europe and global firms with new disclosure obligations .

Estimates Context

Wall Street consensus (S&P Global) was unavailable at time of preparation due to data access limitations; therefore, we cannot quantify precise quarterly beats/misses vs EPS and revenue consensus for Q4 2024. We will update this section once SPGI data can be retrieved.

Key Takeaways for Investors

Index remains a secular growth engine with strong net inflows and record AUM, supporting durable asset-based revenues and reinforcing non-GAAP margin stability; watch for continued product innovation and institutional penetration in 2025 .
FinTech momentum is intact: Verafin retention and SMB wins are strong; Regulatory Tech and Capital Markets Tech should benefit from cloud migrations and 2025 PS rebounds; cross-sell mix is rising toward 2027 run-rate target .
Operating leverage and cash generation create flexibility: robust CFO/FCF underpin deleveraging and capital returns while funding AI/product investments; 2025 OpEx and tax guidance signal disciplined cost execution .
Macro/regulatory backdrop is turning constructive for listings and market activity, but Corporate Solutions recovery is likely lagged; monitor IPO conversion and delisting moderation through 2025 .
Strategic portfolio sharpening: exit of Nordic power futures simplifies Market Services focus and should reduce non-core complexity; migration timeline to H1 2026 limits near-term financial impact .
Near-term trading implications: strength in Index/Derivatives and steady margins support resilience; any Street estimate beats/misses pending SPGI data may drive stock reaction—focus on Index inflows, FinTech ARR, and expense trajectory as catalysts .

Appendix: Additional Data Points

Q4 cash from operations $705M; FY 2024 $1,939M; Q4 dividends $138M; Q4 senior note repurchases $181M .
Market Services record Q4 and full-year net revenue; Closing Cross set share volume records; index options revenue more than doubled in 2024 .
Dividend declared $0.24 per share; payable March 28, 2025 (record date March 14, 2025) .

Sources: Company press releases, 8-K Exhibits, and Q4 2024 earnings call transcript .

NASDAQ, INC. (NDAQ)·Q4 2024 Earnings Summary