Nasdaq Sees Recurring Revenue Soar 31% In Q3, Solutions Rake In $872M

Nasdaq, Inc NDAQ reported third-quarter revenue growth of 22% year-on-year to $1.15 billion, missing the analyst consensus estimate of $1.17 billion.

The financial services company reported an adjusted EPS of 74 cents, which beat the analyst consensus estimate of 69 cents. The stock price slid after the print.

Nasdaq's Annualized Recurring Revenue (ARR) increased 31% year-over-year to $2.74 billion.

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Solutions revenues were $872 million, up by 26% Y/Y, reflecting strong growth from Index and Financial Technology.

Market Services net revenues were $266 million, up by 13% Y/Y. Financial Technology revenues grew by 56% Y/Y to $371 million. Index revenues climbed 26% Y/Y to $182 million.

Nasdaq generated $244 million in operating cash flow and held $308 in cash and equivalents as of September 30, 2024.

Nasdaq CEO Adena Friedman praised the “fourth consecutive quarter of double-digit Solutions growth with strong overall quarterly performance.”

“As we approach the one-year anniversary of the Adenza acquisition, I am proud of our progress to date and excited about driving even greater value for our clients and shareholders.”

Outlook: Nasdaq updated its 2024 adjusted operating expense guidance to $2.150 billion-$2.180 billion (prior $2.145 billion-$2.185 billion), and 2024 non-GAAP tax rate guidance to 23.5%-24.5% (prior 24.5%-26.5%).

Price Action: Nasdaq stock is down 1.23% at $73 premarket at the last check on Thursday.

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