Nasdaq Reports Solid YoY Revenue Growth in Q3 of 2019

Net income for the third quarter of 2019, however, didn’t hold up as well.

Nasdaq, Inc. has published its financial results for the third quarter of 2019 this Wednesday, revealing a positive uptick in net revenues but a drop in net income on an annual comparison.

During the third quarter, net revenues were $632 million. This represents an increase of $32 million or 5.3 percent from the $600 million reported in the prior-year period.

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Net revenues are also higher by $9 million on a quarter-on-quarter comparison, as the second quarter of 2019 had net revenues of $623 million. Contributing to Q3’s figure was a 6 percent or a positive $37 million impact from organic growth.

Furthermore, net revenues were also up thanks to a $12 million positive impact from the inclusion of revenues from the acquisitions of Cinnober and Quandl. However, this was partially offset by a $10 million negative impact from a divestiture and a $7 million unfavorable impact from changes in foreign exchange (forex) rates.

Net income for Q3 of 2019, however, didn’t hold up as well, coming in at $150 million on a GAAP basis, or diluted earnings per share of $0.90. This is lower than the $163 million net income posted in the third quarter of 2018 by around 8.0 percent.

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Taking a look at Nasdaq’s market services performance, which contributes 36 percent of total net revenues, the exchange operator noted a figure of $226 million for the period. This is up by $4 million or 2 percent year-on-year.

Fixed income net revenues fall on Nasdaq

The Fixed Income and Commodities Trading and Clearing segment, however, experienced a drop in the third quarter, falling by $3 million down to $16 million. This was primarily driven by lower volumes in US fixed income and European commodities products.

The Equity Derivative Trading and Clearing net revenues, on the other hand, were $75 million in Q3 of 2019. This translated to a growth of $7 million year-on-year, thanks to higher US trading volumes and revenue capture.

Adena Friedman, CEO of Nasdaq
Adena Friedman, the CEO of Nasdaq

Commenting on the results, Adena Friedman, President and CEO, Nasdaq said: “Our strong third quarter 2019 results reflect significant contributions from across our franchise. I am especially pleased that we have been able to continue delivering strong growth in our expanded technology and analytics offerings, while simultaneously benefiting from our rising equities market share and a busy trading and IPO environment.”

“At the same time, we are progressing on significant initiatives, such as the deployment of our next-generation market technology solutions and enhancing our offerings to the private markets, which will enable us to do more for our clients in future periods.”

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