In This Article:
Nasdaq, Inc. NDAQ reported fourth-quarter 2024 adjusted earnings per share of 76 cents, beating the Zacks Consensus Estimate by 1.3%. The bottom line improved 5% year over year.
The improvement was mainly driven by higher revenues across three divisions, organic growth as well as reduced expenses.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Nasdaq, Inc. Price, Consensus and EPS Surprise
Nasdaq, Inc. price-consensus-eps-surprise-chart | Nasdaq, Inc. Quote
Performance in Detail
Nasdaq’s net revenues of $1.2 billion increased 10% year over year. The top line missed the Zacks Consensus Estimate by 0.1%.
Annualized Recurring Revenue (ARR) increased 7% year over year.
Annualized SaaS revenues increased 14% and represented 37% of ARR. Organic growth was 7%.
Market Services net revenues were $268 million, up 8%. The increase was primarily driven by a $15 million increase in U.S. equity derivatives and a $14 million increase in U.S. cash equities. It was partly offset by a $4 million decrease in U.S. tape plan revenues. Organic growth was 8%.
Revenues at the Solutions business increased 10% year over year to $949 million, reflecting strong growth from Index and Financial Technology.
Adjusted operating expenses were $710 million, down 7% from the year-ago period. The decrease was due to lower merger and strategic initiative costs and lower general and administrative expense. It was partially offset by expenses related to the acquisition of Adenza, which resulted in an incremental $29 million in amortization expense of acquired intangible assets, $24 million of other AxiomSL and Calypso operating expenses, as well as organic growth driven by increased investments in technology and people to drive innovation and long-term growth. Our estimate for operating expenses was $573.4 million.
The company’s operating margin of 55% remained flat year over year.
The Nasdaq stock market welcomed 162 new company listings in the fourth quarter of 2024, including 66 initial public offerings. The number of listed companies was 4,075 at the end of the quarter.
Full-Year Highlights
For 2024, the company reported adjusted earnings per share of $2.82, which remained unchanged year over year. The figure also beat the Zacks Consensus Estimate by 0.3%.
Net revenues were $4.6 billion, up 19% year over year. This included Solutions revenues, which increased 25%. Market Services net revenues were $1 billion, which rose 3% on a reported as well as organic basis. ARR was $2.8 billion, which grew 7% on a reported as well as organic basis. Net revenues beat the Zacks Consensus Estimate by 20%.
Operating margin of 54% expanded 100 basis points year over year.
The Nasdaq stock market welcomed 463 new company listings, including 180 initial public offerings. The number of listed companies was 4,075 at year end.