Nasdaq Q1 Earnings Top Street View, Boosts Dividend By 10%

Nasdaq, Inc. NDAQ clocked a first-quarter revenue increase of 2% year-over-year to $914 million, beating the consensus of $908.93 million.
Solutions businesses revenues were $646 million in the first quarter of 2023, an increase of 4%, while Trading Services net revenues were $267 million, up by 1%.
Annualized Recurring Revenue (ARR) increased 7% Y/Y to $2.04 billion, while annualized SaaS revenues jumped 11% to $729 million, driven by solid growth in the fraud detection and anti-money laundering solutions.
Adjusted operating expenses rose 1.9% to $436 million, while the adjusted operating margin remained flat at 52% Y/Y in the quarter under review.
"Our strong capital position and free cash flow generation give us the ability to invest in growth initiatives while we continue our dividend growth story with a 10% increase in the quarterly dividend", Executive Vice President and CFO Ann Dennison said.
Nasdaq has declared a regular quarterly dividend of $0.22 per share on the company's outstanding common stock, a 10% increase from the previous quarter. The dividend is payable on June 30, 2023, to shareholders of record at the close of business on June 16, 2023.
The company reported an adjusted net income of $339 million, up 3% Y/Y. Adjusted earnings per share in Q1 totaled $0.69 per share, up 4.5% on year, beating the Street view of $0.66.
Outlook: The company updated its 2023 non-GAAP operating expense guidance to $1.78 billion - $1.84 billion (prior guidance: $1.77 billion - $1.85 billion). Nasdaq expects its 2023 non-GAAP tax rate to be 24% - 26%.
Price Action: NDAQ shares are trading higher by 1.71% at $56.56 during the premarket session on the last check Wednesday.

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