NEW YORK - Nasdaq, Inc. (NASDAQ:NDAQ) announced its financial outcomes for the second quarter of 2024, showcasing a significant revenue increase and earnings per share (EPS) that surpassed analyst estimates.
The company reported a second-quarter EPS of $0.69, which was $0.05 higher than the analyst consensus of $0.64. Revenue for the quarter reached $1.16 billion, exceeding the consensus estimate of $1.13 billion and marking a 25% increase compared to the $928 million reported in the second quarter of the previous year.
Despite the positive financial results, Nasdaq's stock experienced a slight downtrend, falling by 1.1% following the earnings release. This movement suggests a restrained reaction from the market, as investors digested the details of the report.
The revenue growth was driven by a 34% year-over-year (YoY) increase in Solutions revenues and a 29% YoY growth in Annualized Recurring Revenue (ARR). Financial Technology revenues saw a remarkable 79% YoY surge, while Index revenues climbed 29%, buoyed by substantial net inflows. However, the company's GAAP diluted earnings per share saw a 30% decrease, and adjusted EPS declined by 3% compared to the second quarter of 2023.
Adena Friedman, Chair and CEO of Nasdaq, attributed the robust financial and operational results to broad-based growth across the company's divisions and a double-digit increase in Solutions growth. She highlighted the momentum in the Financial Technology division, emphasizing the focus on resilience, risk management, and infrastructure modernization. Friedman also noted the company's success in meeting integration targets ahead of schedule and the promising results from the One Nasdaq strategy.
The company's CFO, Sarah Youngwood, expressed confidence in Nasdaq's position for ongoing organic growth and profitability. She also mentioned achieving the year-end 2024 actioned synergy target six months early and the successful execution of the company's first deleveraging goal.
For the full year 2024, Nasdaq updated its non-GAAP operating expense guidance to a range of $2,145 million to $2,185 million, maintaining its non-GAAP tax rate guidance within the range of 24.5% to 26.5%.
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