Nasdaq Q2 Highlights: Tops Street Estimates, 4% Revenue Growth & More

Nasdaq, Inc. NDAQ reported a Q2 revenue increase of 4% Y/Y to $925 million, beating the consensus of $914.9 million.

Solutions businesses revenues were $674 million in Q2, an increase of 6%, while Trading Services net revenues were $250 million, down by 1%. 

Annualized Recurring Revenue (ARR) increased 6% Y/Y, while annualized SaaS revenues rose 11% Y/Y in the quarter.

Adjusted operating expenses rose 7% Y/Y, while adjusted operating margin contracted to 52% from 54% a year ago.

Adjusted net income stood at $350 million, up from $342 million a year ago. 

Adjusted EPS of $0.71 per share, up 3% Y/Y, beat the Street view of $0.66. 

Dividend: NDAQ declared a regular quarterly dividend per share of $0.22, payable on September 29, 2023, to shareholders of record as on September 15, 2023.

Last month, Nasdaq disclosed an agreement to acquire Adenza from Thoma Bravo for $10.5 billion in cash and common shares.

"Nasdaq achieved another quarter of solid financial results in an uncertain environment as we took a significant step to expand our ability to serve our financial clients in solving their most complex operational challenges. Our planned acquisition of Adenza represents another critical step in our multi-year transformation to become a leading technology partner to the financial system, with a specific focus on managing liquidity and capital risk, reducing financial crime, and meeting regulatory obligations," said Adena Friedman, Chair and CEO.

Related: Nasdaq Raises Fund Via Debt Offerings To Fund Adenza Buyout

Outlook: The company updated its 2023 non-GAAP operating expense guidance to $1.785 billion-$1.815 billion (vs. the prior outlook of $1.78 billion - $1.84 billion). Nasdaq continues to expect a 2023 non-GAAP tax rate of 24% - 26%.

Also Read: Nasdaq Partners With B3, Builds Clearing Platform For Brazilian Stock Exchange

Price Action: NDAQ shares are trading higher by 0.84% at $51.81 premarket on the last check Wednesday.