Nasdaq Record Quarter Showcases Fintech Industry Growth Potential

Nasdaq announces record quarterly net revenues, eyes further growth.

In a sign of the growth of the fintech industry, Nasdaq, the global exchange operator, has announced record quarterly net revenues for the quarter ending June 30, 2017. The net revenues were $602 million, which is a $43 million or 8% increase over the revenue from the same period in 2016.

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This revenue growth was mostly due to the impact of acquisitions, which accounts for $34 million, and another $15 million due to organic growth. Just recently, it added to its acquisitions list by acquiring the behavioural analysis company Sybenetix for an undisclosed amount.

Like the challenge faced by all companies that do worldwide business, Nasdaq was hit by changes to foreign exchange rates which hit its revenue by $6 million.

Acquisitions Push Progress

GAAP operating expenses were $358 million, down from $385 million from the same time last year. The non-GAAP operating expenses were $315 million, up $15 million from last year. This was mainly due to the time and expenses spent on creating synergies with the companies acquired during this period.

Adena T. Friedman, President and CEO of Nasdaq, said: “In addition to achieving a new quarterly net revenue record, we are making significant progress against our 2017 execution priorities, by commercializing key technologies with new products available through the Nasdaq Financial Framework and Analytics Hub, achieving our merger synergies ahead of our original timeline, and raising our market share in our largest trading categories significantly above prior year levels.”

The market services contributed to 37% of the total net revenues while the corporate services, like listing services and solutions provided to corporations, contributed 27% of total net revenues.

The highlights of this quarterly report included the provision of a blockchain enabled solution to the SIX Swiss exchange and the launch of an analytics platform to help with buy side strategies.

The Nordic exchanges powered by Nasdaq also saw a record number of new listings and the stock market in the US also saw the highest number of IPOs among all exchanges in the US.

New Addition to the Board

Nasdaq also announced the appointment of John D. Rainey to its board of directors. He was the Executive Vice President and Chief Financial Officer of Paypal Inc. and Nasdaq expects him to drive forward the strategies that it has in place for building on its technological platforms and solutions.

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