Why Nasdaq Shares Are Rising Today

Nasdaq Inc NDAQ shares are trading higher by around 4% after the company reported Q3 FY23 results.

Revenue increased 6% Y/Y to $940 million, beating the consensus of $930.25 million.

Solutions businesses revenues were $694 million in Q3, an increase of 9% Y/Y, while Trading Services net revenues were $236 million, down by 1% Y/Y. 

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

Adjusted operating expenses rose 8% Y/Y, while adjusted operating margin contracted to 52% from 53% a year ago.

Adjusted EPS of $0.71 per share, up 4% Y/Y, beat the Street view of $0.68. 

Dividend: NDAQ declared a regular quarterly dividend per share of $0.22, payable on December 22, 2023, to shareholders of record as of December 8, 2023.

"Our third quarter 2023 results reflect Nasdaq's solid execution amid a continued dynamic economic and capital markets backdrop. We experienced some improvement in the IPO environment by welcoming marquee IPOs, we continued to broaden our Anti-Financial Crime clientele, and we introduced new innovations to our products and services. We have completed the antitrust review process for our announced acquisition of Adenza and we expect to close the transaction in the fourth quarter of 2023. With Adenza, we are excited to deepen our client relationships as we expand our role as a leading financial technology provider to the global financial system," said Adena Friedman, Chair and CEO.

Repurchase: As of September 30, 2023, the company had $2.0 billion worth of shares remaining under the authorized repurchase program, following an approval by the board of directors in September 2023 to increase the program to an aggregate of $2.0 billion.

Outlook: The company updated its 2023 non-GAAP operating expense guidance to $1.785 billion-$1.805 billion (vs. the prior outlook of $1.785 billion-$1.815 billion). Nasdaq now expects a 2023 non-GAAP tax rate of 24.5%-25.5%.

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Price Action: NDAQ shares are up 4.35% at $52.10 on the last check Wednesday.