Nasdaq Sees Record Revenues in Q4 2016, Rebrands its Fixed Income Business

Q4 saw an all-time high in revenues at Nasdaq of $599 million, boosted by a recent string of acquisitions.

Nasdaq, Inc. (Nasdaq:NDAQ), one of the largest market operators in the US, has reported its Q4 2016 financial results, which also featured a strategic realignment and rebranding of its fixed income business, per a recent quarterly filing.

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Looking at its overall business in Q4 2016, Nasdaq reported an all-time high in its net revenues of $599.0 million, which was good for an 11.8% YoY growth compared with just $536.0 million in Q4 2015. One of the largest drivers of this growth was a $54 million positive impact garnered from Nasdaq’s acquisitions.

The group’s organic growth in non-trading segments climbed 5.0% YoY in Q4 2016, relative to the year prior. Nasdaq managed to post $38.0 million in annualized run-rate cost synergies for its acquisitions.

In terms of its other quarterly highlights, Nasdaq’s Q4 2016 GAAP diluted loss per share came in at $1.35 – its non-GAAP diluted EPS was reported at $0.95. Overall, its GAAP diluted EPS declined $2.23 in Q4 2016 on a YoY basis, while non-GAAP diluted EPS notched an increase or $0.06, or 7.0%. YoY from Q4 2015.

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Fixed Income Recalibration

Looking at Nasdaq’s business strategy, the group also underwent an alignment in its Listing Services and Corporate Solutions, integrating these units into a cohesive Corporate Services segment.

Furthermore, Nasdaq is also evolving its fixed income strategy under the direction of its new leadership, which will aim to enhance the customer experience and bring the company’s US and European fixed income products and services under one brand called Nasdaq Fixed Income, which will be headed by John Shay.

Adena Freidman
Adena Freidman

According to Nasdaq’s recently installed CEO, Adena Friedman, in a statement on the quarterly report: “As Nasdaq’s new CEO, I’m excited to have the privilege to lead one of the best businesses in the world as we pursue our mission to help our clients more efficiently and effectively navigate the global capital markets.”

“Positioned at the intersection of technology and the capital markets, Nasdaq’s objective is to support businesses, capital formation and job creation that serves as a catalyst for global economic growth.”

“The relentless focus on our partnership with investors, corporations, exchanges, banks and broker dealers will continue to serve as the cornerstone of our evolving and advancing service, product and technology offerings as well as provide the foundation and infrastructure that powers global markets,” she added.

The comments come on the heels of a Goldman Sachs event, in which Friedman said that the cloud is going to “change a lot of how we manage our infrastructure,” while blockchain “has a huge ability to change the way settlement occurs and the transfer of ownership.”

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