QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended | ||||||||
OR | ||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period | from ________ to ________ |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
No Changes | |||||||||||
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding at April 26, 2023 | ||||||||||
Common Stock, $0.01 par value per share | shares |
Page | ||||||||
Part I. FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Default funds and margin deposits (including restricted cash and cash equivalents of $ | |||||||||||
Financial investments | |||||||||||
Receivables, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease assets | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Section 31 fees payable to SEC | |||||||||||
Accrued personnel costs | |||||||||||
Deferred revenue | |||||||||||
Other current liabilities | |||||||||||
Default funds and margin deposits | |||||||||||
Short-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred tax liabilities, net | |||||||||||
Operating lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity | |||||||||||
Nasdaq stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Common stock in treasury, at cost: | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total Nasdaq stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenues: | |||||||||||
Market Platforms | $ | $ | |||||||||
Capital Access Platforms | |||||||||||
Anti-Financial Crime | |||||||||||
Other revenues | |||||||||||
Total revenues | |||||||||||
Transaction-based expenses: | |||||||||||
Transaction rebates | ( | ( | |||||||||
Brokerage, clearance and exchange fees | ( | ( | |||||||||
Revenues less transaction-based expenses | |||||||||||
Operating expenses: | |||||||||||
Compensation and benefits | |||||||||||
Professional and contract services | |||||||||||
Computer operations and data communications | |||||||||||
Occupancy | |||||||||||
General, administrative and other | |||||||||||
Marketing and advertising | |||||||||||
Depreciation and amortization | |||||||||||
Regulatory | |||||||||||
Merger and strategic initiatives | |||||||||||
Restructuring charges | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Other expense | ( | ||||||||||
Net income from unconsolidated investees | |||||||||||
Income before income taxes | |||||||||||
Income tax provision | |||||||||||
Net income | |||||||||||
Net loss attributable to noncontrolling interests | |||||||||||
Net income attributable to Nasdaq | $ | $ | |||||||||
Per share information: | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
Cash dividends declared per common share | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation losses | ( | ( | |||||||||
Income tax benefit (expense)(1) | ( | ||||||||||
Foreign currency translation, net | ( | ( | |||||||||
Comprehensive income | |||||||||||
Comprehensive loss attributable to noncontrolling interests | |||||||||||
Comprehensive income attributable to Nasdaq | $ | $ |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | $ | Shares | $ | ||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Share repurchase program | ( | ( | ( | ( | |||||||||||||||||||
ASR agreement | — | — | ( | ( | |||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Common stock in treasury, at cost | |||||||||||||||||||||||
Beginning balance | ( | ( | |||||||||||||||||||||
Other employee stock activity | ( | ( | ( | ( | |||||||||||||||||||
Ending balance | ( | ( | |||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||
Beginning balance | ( | ( | |||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||
Ending balance | ( | ( | |||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Net income attributable to Nasdaq | |||||||||||||||||||||||
Cash dividends declared per common share | ( | ( | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Total Nasdaq stockholders’ equity | |||||||||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Net activity related to noncontrolling interests | ( | ( | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Total Equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | |||||||||||
Non-cash restructuring charges | |||||||||||
Net income from unconsolidated investees | ( | ( | |||||||||
Other reconciling items included in net income | |||||||||||
Net change in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Receivables, net | ( | ||||||||||
Other assets | |||||||||||
Accounts payable and accrued expenses | ( | ||||||||||
Section 31 fees payable to SEC | ( | ( | |||||||||
Accrued personnel costs | ( | ( | |||||||||
Deferred revenue | |||||||||||
Other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of securities | ( | ( | |||||||||
Proceeds from sales and redemptions of securities | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Investments related to default funds and margin deposits, net(1) | ( | ( | |||||||||
Other investing activities | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repayments of commercial paper, net | ( | ( | |||||||||
Proceeds from issuances of debt, net of issuance costs | |||||||||||
Repurchases of common stock | ( | ( | |||||||||
ASR agreement | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Payments related to employee shares withheld for taxes | ( | ( | |||||||||
Default funds and margin deposits | |||||||||||
Other financing activities | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | $ | |||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | |||||||||||
Total | $ | $ | |||||||||
Supplemental Disclosure Cash Flow Information | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid, net of refund | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Market Platforms | |||||||||||
Trading Services, net | $ | $ | |||||||||
Marketplace Technology | |||||||||||
Capital Access Platforms | |||||||||||
Data & Listing Services | |||||||||||
Index | |||||||||||
Workflow & Insights | |||||||||||
Anti-Financial Crime | |||||||||||
Other revenues | |||||||||||
Revenues less transaction-based expenses | $ | $ |
Market Technology | Anti-Financial Crime | Workflow & Insights | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Remainder of 2023 | $ | $ | $ | $ | |||||||||||||||||||
2024 | |||||||||||||||||||||||
2025 | |||||||||||||||||||||||
2026 | |||||||||||||||||||||||
2027 | |||||||||||||||||||||||
2028+ | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in millions) | |||||
Market Platforms | |||||
Balance at December 31, 2022 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2023 | $ | ||||
Capital Access Platforms | |||||
Balance at December 31, 2022 | $ | ||||
Foreign currency translation adjustments | |||||
Balance at March 31, 2023 | $ | ||||
Anti-Financial Crime | |||||
Balance at December 31, 2022 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2023 | $ | ||||
Total | |||||
Balance at December 31, 2022 | $ | ||||
Foreign currency translation adjustments | |||||
Balance at March 31, 2023 | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Finite-Lived Intangible Assets | (in millions) | ||||||||||
Gross Amount | |||||||||||
Technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade names and other | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total gross amount | $ | $ | |||||||||
Accumulated Amortization | |||||||||||
Technology | $ | ( | $ | ( | |||||||
Customer relationships | ( | ( | |||||||||
Trade names and other | ( | ( | |||||||||
Foreign currency translation adjustment | |||||||||||
Total accumulated amortization | $ | ( | $ | ( | |||||||
Net Amount | |||||||||||
Technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade names and other | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total finite-lived intangible assets | $ | $ | |||||||||
Indefinite-Lived Intangible Assets | |||||||||||
Exchange and clearing registrations | $ | $ | |||||||||
Trade names | |||||||||||
Licenses | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total indefinite-lived intangible assets | $ | $ | |||||||||
Total intangible assets, net | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Amortization expense | $ | $ | |||||||||
(in millions) | |||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028+ | |||||
Total | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Financial investments | $ | $ | |||||||||
Equity method investments | |||||||||||
Equity securities |
Balance at December 31, 2022 | Additions | Revenue Recognized | Adjustments | Balance at March 31, 2023 | |||||||||||||
(in millions) | |||||||||||||||||
Market Platforms: | |||||||||||||||||
Market Technology | $ | $ | $ | ( | $ | $ | |||||||||||
Capital Access Platforms: | |||||||||||||||||
Initial Listings | ( | ||||||||||||||||
Annual Listings | ( | ( | |||||||||||||||
Workflow & Insights | ( | ||||||||||||||||
Anti-Financial Crime | ( | ||||||||||||||||
Other | ( | ||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ | ||||||||||
Fiscal year ended: | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | Total | ||||||||||||||||
(in millions) | |||||||||||||||||||||||
Market Platforms: | |||||||||||||||||||||||
Market Technology | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Capital Access Platforms: | |||||||||||||||||||||||
Initial Listings | |||||||||||||||||||||||
Annual Listings | |||||||||||||||||||||||
Workflow & Insights | |||||||||||||||||||||||
Anti-Financial Crime | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
December 31, 2022 | Additions | Payments, Foreign Currency Translation and Accretion | March 31, 2023 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Short-term debt: | |||||||||||||||||||||||
Commercial paper | $ | $ | $ | ( | $ | ||||||||||||||||||
Long-term debt - senior unsecured notes: | |||||||||||||||||||||||
2026 Notes | |||||||||||||||||||||||
2029 Notes | |||||||||||||||||||||||
2030 Notes | |||||||||||||||||||||||
2050 Notes | |||||||||||||||||||||||
2031 Notes | |||||||||||||||||||||||
2040 Notes | |||||||||||||||||||||||
2033 Notes | |||||||||||||||||||||||
2052 Notes | |||||||||||||||||||||||
2022 Credit Facility | ( | ( | |||||||||||||||||||||
Total long-term debt | $ | $ | $ | $ | |||||||||||||||||||
Total debt obligations | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Savings Plan expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Retirement Plans expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Share-based compensation expense before income taxes | $ | $ | |||||||||
Restricted Stock | |||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at March 31, 2023 | $ |
PSUs | |||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at March 31, 2023 | $ |
Number of Stock Options | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||
Outstanding at March 31, 2023 | $ | $ | ||||||||||||
Exercisable at March 31, 2023 | $ | $ |
Three Months Ended March 31, 2023 | ||||||||
Number of shares of common stock repurchased | ||||||||
Average price paid per share | $ | |||||||
Total purchase price (in millions) | $ |
Declaration Date | Dividend Per Common Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
January 24, 2023 | $ | March 17, 2023 | $ | March 31, 2023 | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Numerator: | (in millions, except share and per share amounts) | ||||||||||
Net income attributable to common shareholders | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding for basic earnings per share | |||||||||||
Weighted-average effect of dilutive securities - Employee equity awards | |||||||||||
Weighted-average common shares outstanding for diluted earnings per share | |||||||||||
Basic and diluted earnings per share: | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
March 31, 2023 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
State-owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
State-owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2023 | |||||||||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||||||||
(in millions) | |||||||||||||||||
Default fund contributions | $ | $ | $ | ||||||||||||||
Margin deposits | |||||||||||||||||
Total | $ | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Demand deposits | $ | $ | |||||||||
Central bank certificates | |||||||||||
Restricted cash and cash equivalents | $ | $ | |||||||||
European government debt securities | |||||||||||
Reverse repurchase agreements | |||||||||||
Multilateral development bank debt securities | |||||||||||
Investments | $ | $ | |||||||||
Total | $ | $ |
March 31, 2023 | |||||
(in millions) | |||||
Commodity and seafood options, futures and forwards | $ | ||||
Fixed-income options and futures | |||||
Stock options and futures | |||||
Index options and futures | |||||
Total | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Commodity and seafood options, futures and forwards | |||||||||||
Fixed-income options and futures | |||||||||||
Stock options and futures | |||||||||||
Index options and futures | |||||||||||
Total |
Leases | Balance Sheet Classification | March 31, 2023 | December 31, 2022 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Current lease liabilities | $ | $ | ||||||||||||||||||
Non-current lease liabilities | Operating lease liabilities | |||||||||||||||||||
Total lease liabilities | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||
Operating lease cost | $ | $ | ||||||||||||
Variable lease cost | ||||||||||||||
Sublease income | ( | ( | ||||||||||||
Total lease cost | $ | $ |
March 31, 2023 | ||||||||
(in millions) | ||||||||
Remainder of 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028+ | ||||||||
Total lease payments | ||||||||
Less: interest | ( | |||||||
Present value of lease liabilities | $ |
March 31, 2023 | ||||||||
Weighted-average remaining lease term (in years) | ||||||||
Weighted-average discount rate | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Lease assets obtained in exchange for operating lease liabilities | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Income tax provision | $ | $ | |||||||||
Effective tax rate | % | % | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Market Platforms | (in millions) | ||||||||||
Total revenues | $ | $ | |||||||||
Transaction-based expenses | ( | ( | |||||||||
Revenues less transaction-based expenses | |||||||||||
Operating income | |||||||||||
Capital Access Platforms | |||||||||||
Total revenues | |||||||||||
Operating income | |||||||||||
Anti-Financial Crime | |||||||||||
Total revenues | |||||||||||
Operating income | |||||||||||
Corporate Items | |||||||||||
Total revenues | |||||||||||
Operating loss | ( | ( | |||||||||
Consolidated | |||||||||||
Total revenues | $ | $ | |||||||||
Transaction-based expenses | ( | ( | |||||||||
Revenues less transaction-based expenses | $ | $ | |||||||||
Operating income | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Revenues - divested/contributed businesses | $ | $ | |||||||||
Expenses: | |||||||||||
Amortization expense of acquired intangible assets | $ | $ | |||||||||
Merger and strategic initiatives expense | |||||||||||
Restructuring charges | |||||||||||
Lease Asset Impairments | |||||||||||
Expenses - divested/contributed businesses | |||||||||||
Other | ( | ||||||||||
Total expenses | |||||||||||
Operating loss | $ | ( | $ | ( | |||||||
Three Months Ended March 31, 2023 | |||||
(in millions) | |||||
Asset impairment charges | $ | ||||
Consulting services | |||||
Employee-related costs | |||||
Total restructuring charges | $ | ||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||
Revenues less transaction-based expenses | $ | 914 | $ | 892 | 2.5 | % | |||||||||||
Operating expenses | 502 | 487 | 3.1 | % | |||||||||||||
Operating income | 412 | 405 | 1.7 | % | |||||||||||||
Net income attributable to Nasdaq | $ | 302 | $ | 284 | 6.3 | % | |||||||||||
Diluted earnings per share | $ | 0.61 | $ | 0.57 | 7.0 | % | |||||||||||
Cash dividends declared per common share | $ | 0.20 | $ | 0.18 | 11.1 | % | |||||||||||
▪ | Anti-Financial Crime support and SaaS subscription contracts. | |||||||
▪ | Proprietary market data subscriptions and annual listing fees within our Data & Listing Services business, index data subscriptions and guaranteed minimum on futures contracts within our Index business and subscription contracts under our Workflow & Insights business. | |||||||
▪ | Market technology support and SaaS subscription contracts as well as trade management services contracts, excluding one-time service requests. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Market Platforms | $ | 1,032 | $ | 1,039 | (0.7) | % | ||||||||||||||
Capital Access Platforms | 416 | 419 | (0.7) | % | ||||||||||||||||
Anti-Financial Crime | 84 | 72 | 16.7 | % | ||||||||||||||||
Other revenues | 1 | 5 | (80.0) | % | ||||||||||||||||
Total revenues | $ | 1,533 | $ | 1,535 | (0.1) | % | ||||||||||||||
Transaction rebates | (487) | (581) | (16.2) | % | ||||||||||||||||
Brokerage, clearance and exchange fees | (132) | (62) | 112.9 | % | ||||||||||||||||
Total revenues less transaction-based expenses | $ | 914 | $ | 892 | 2.5 | % | ||||||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Trading Services | $ | 886 | $ | 907 | (2.3) | % | |||||||||||
Marketplace Technology | 146 | 132 | 10.6 | % | |||||||||||||
Total Market Platforms | $ | 1,032 | $ | 1,039 | (0.7) | % | |||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | (487) | (581) | (16.2) | % | |||||||||||||
Brokerage, clearance and exchange fees | (132) | (62) | 112.9 | % | |||||||||||||
Total Market Platforms, net | $ | 413 | $ | 396 | 4.3 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
U.S. Equity Derivative Trading | $ | 102 | $ | 94 | 8.5 | % | |||||||||||
Cash Equity Trading | 103 | 102 | 1.0 | % | |||||||||||||
U.S. Tape plans | 36 | 41 | (12.2) | % | |||||||||||||
Other | 26 | 27 | (3.7) | % | |||||||||||||
Trading Services, net | $ | 267 | $ | 264 | 1.1 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
U.S. Equity Derivative Trading Revenues | $ | 327 | $ | 327 | — | % | |||||||||||
Section 31 fees | 23 | 6 | 283.3 | % | |||||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | (224) | (232) | (3.4) | % | |||||||||||||
Section 31 fees | (23) | (6) | 283.3 | % | |||||||||||||
Brokerage and clearance fees | (1) | (1) | — | % | |||||||||||||
U.S. Equity derivative trading revenues, net | $ | 102 | $ | 94 | 8.5 | % | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
U.S. equity options | |||||||||||
Total industry average daily volume (in millions) | 42.4 | 40.0 | |||||||||
Nasdaq PHLX matched market share | 11.1 | % | 11.4 | % | |||||||
The Nasdaq Options Market matched market share | 7.1 | % | 8.4 | % | |||||||
Nasdaq BX Options matched market share | 3.3 | % | 2.1 | % | |||||||
Nasdaq ISE Options matched market share | 5.8 | % | 5.9 | % | |||||||
Nasdaq GEMX Options matched market share | 2.0 | % | 2.4 | % | |||||||
Nasdaq MRX Options matched market share | 1.5 | % | 1.8 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 30.8 | % | 32.0 | % | |||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Cash Equity Trading Revenues | $ | 366 | $ | 449 | (18.5) | % | |||||||||||
Section 31 fees | 102 | 48 | 112.5 | % | |||||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | (257) | (340) | (24.4) | % | |||||||||||||
Section 31 fees | (102) | (48) | 112.5 | % | |||||||||||||
Brokerage, clearance and exchange fees | (6) | (7) | (14.3) | % | |||||||||||||
Cash equity trading revenues less transaction-based expenses | $ | 103 | $ | 102 | 1.0 | % | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Total U.S.-listed securities | |||||||||||
Total industry average daily share volume (in billions) | 11.8 | 12.9 | |||||||||
Matched share volume (in billions) | 121.8 | 142.2 | |||||||||
The Nasdaq Stock Market matched market share | 15.8 | % | 16.4 | % | |||||||
Nasdaq BX matched market share | 0.4 | % | 0.5 | % | |||||||
Nasdaq PSX matched market share | 0.5 | % | 0.9 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 16.7 | % | 17.8 | % | |||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 31.6 | % | 33.4 | % | |||||||
Total market share | 48.3 | % | 51.2 | % | |||||||
Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 787,715 | 1,133,543 | |||||||||
Total average daily value of shares traded (in billions) | $ | 5.3 | $ | 7.1 | |||||||
Total market share executed on Nasdaq’s exchanges | 68.9 | % | 73.0 | % | |||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
U.S. Tape plans | $ | 36 | $ | 41 | (12.2) | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Other | $ | 26 | $ | 27 | (3.7) | % | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||
Total average daily volume of options and futures contracts | 344,141 | 365,611 | |||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Marketplace Technology | $ | 146 | $ | 132 | 10.6 | % | |||||||||||
As of or Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||
ARR | $ | 510 | $ | 473 | ||||||||||
Quarterly annualized SaaS revenues | 37 | 35 | ||||||||||||
Order intake | 32 | 38 |
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Data & Listing Services | $ | 186 | $ | 182 | 2.2 | % | |||||||||||
Index | 110 | 122 | (9.8) | % | |||||||||||||
Workflow & Insights | 120 | 115 | 4.3 | % | |||||||||||||
Total Capital Access Platforms | $ | 416 | $ | 419 | (0.7) | % | |||||||||||
As of or Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
ARR | $ | 1,204 | $ | 1,146 | |||||||
Quarterly annualized SaaS revenues | 386 | 357 |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
IPOs | ||||||||||||||
The Nasdaq Stock Market | 40 | 70 | ||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 2 | 13 | ||||||||||||
Total new listings | ||||||||||||||
The Nasdaq Stock Market | 81 | 110 | ||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 7 | 19 | ||||||||||||
Number of listed companies | ||||||||||||||
The Nasdaq Stock Market | 4,163 | 4,242 | ||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 1,250 | 1,244 | ||||||||||||
As of or Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Number of licensed ETPs | 387 | 368 | ||||||||||||
TTM change in period end ETP AUM tracking Nasdaq indexes (in billions) | ||||||||||||||
Beginning balance | $ | 401 | $ | 385 | ||||||||||
Net (depreciation) appreciation | (57) | 33 | ||||||||||||
Net impact of ETP sponsor switches | (1) | (92) | ||||||||||||
Net inflows | 23 | 75 | ||||||||||||
Ending balance | $ | 366 | $ | 401 | ||||||||||
Quarterly average ETP AUM tracking Nasdaq indexes (in billions) | $ | 341 | $ | 383 | ||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Anti-Financial Crime | $ | 84 | $ | 72 | 16.7 | % | |||||||||||
As of or Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||
ARR | $ | 321 | $ | 280 | ||||||||||
Total signed ARR | 354 | 294 | ||||||||||||
Quarterly annualized SaaS revenues | 306 | 263 |
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Compensation and benefits | $ | 256 | $ | 254 | 0.8 | % | |||||||||||
Professional and contract services | 32 | 35 | (8.6) | % | |||||||||||||
Computer operations and data communications | 54 | 50 | 8.0 | % | |||||||||||||
Occupancy | 39 | 27 | 44.4 | % | |||||||||||||
General, administrative and other | 14 | 21 | (33.3) | % | |||||||||||||
Marketing and advertising | 9 | 10 | (10.0) | % | |||||||||||||
Depreciation and amortization | 69 | 67 | 3.0 | % | |||||||||||||
Regulatory | 9 | 8 | 12.5 | % | |||||||||||||
Merger and strategic initiatives | 2 | 15 | (86.7) | % | |||||||||||||
Restructuring charges | 18 | — | N/M | ||||||||||||||
Total operating expenses | $ | 502 | $ | 487 | 3.1 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Interest income | $ | 6 | $ | — | N/M | ||||||||||||
Interest expense | (36) | (32) | 12.5 | % | |||||||||||||
Net interest expense | (30) | (32) | (6.3) | % | |||||||||||||
Other expense | — | (6) | (100.0) | % | |||||||||||||
Net income from unconsolidated investees | 14 | 7 | 100.0 | % | |||||||||||||
Total non-operating expense | $ | (16) | $ | (31) | (48.4) | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(in millions) | |||||||||||||||||
Interest expense on debt | $ | 35 | $ | 29 | 20.7 | % | |||||||||||
Accretion of debt issuance costs and debt discount | 1 | 2 | (50.0) | % | |||||||||||||
Other fees | — | 1 | (100.0) | % | |||||||||||||
Interest expense | $ | 36 | $ | 32 | 12.5 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
($ in millions) | |||||||||||||||||
Income tax provision | $ | 95 | $ | 91 | 4.4 | % | |||||||||||
Effective tax rate | 24.0 | % | 24.3 | % | |||||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions, except per share amounts) | |||||||||||
U.S. GAAP net income attributable to Nasdaq | $ | 302 | $ | 284 | |||||||
Non-GAAP adjustments: | |||||||||||
Amortization expense of acquired intangible assets | 38 | 40 | |||||||||
Merger and strategic initiatives expense | 2 | 15 | |||||||||
Restructuring charges | 18 | — | |||||||||
Lease asset impairments | 17 | — | |||||||||
Net income from unconsolidated investees | (14) | (6) | |||||||||
Other | (9) | 9 | |||||||||
Total non-GAAP adjustments | 52 | 58 | |||||||||
Total non-GAAP tax adjustments | (15) | (13) | |||||||||
Total non-GAAP adjustments, net of tax | 37 | 45 | |||||||||
Non-GAAP net income attributable to Nasdaq | $ | 339 | $ | 329 | |||||||
U.S. GAAP effective tax rate | 24.0 | % | 24.3 | % | |||||||
Total adjustments from non-GAAP tax rate | 0.6 | % | (0.2) | % | |||||||
Non-GAAP effective tax rate | 24.6 | % | 24.1 | % | |||||||
Weighted-average common shares outstanding for diluted earnings per share | 494.8 | 501.7 | |||||||||
U.S. GAAP diluted earnings per share | $ | 0.61 | $ | 0.57 | |||||||
Total adjustments from non-GAAP net income | 0.08 | 0.09 | |||||||||
Non-GAAP diluted earnings per share | $ | 0.69 | $ | 0.66 |
March 31, 2023 | December 31, 2022 | |||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | 373 | $ | 502 | ||||||||||
Financial investments | 197 | 181 | ||||||||||||
Total financial assets | $ | 570 | $ | 683 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by (used in): | (in millions) | ||||||||||
Operating activities | $ | 565 | $ | 605 | |||||||
Investing activities | (133) | (390) | |||||||||
Financing activities | (613) | 368 | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | 29 | (164) | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | (152) | 419 | |||||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | 6,994 | 5,496 | |||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | 6,842 | $ | 5,915 | |||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | 373 | $ | 486 | |||||||
Restricted cash and cash equivalents | 57 | 31 | |||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | 6,412 | 5,398 | |||||||||
Total | $ | 6,842 | $ | 5,915 |
2023 | 2022 | ||||||||||
First quarter | $ | 0.20 | $ | 0.18 | |||||||
Maturity Date | March 31, 2023 | December 31, 2022 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Short-term debt: | ||||||||||||||||||||
Commercial paper | $ | 347 | $ | 664 | ||||||||||||||||
Long-term debt - senior unsecured notes: | ||||||||||||||||||||
2026 Notes | June 2026 | 498 | 498 | |||||||||||||||||
2029 Notes | March 2029 | 646 | 637 | |||||||||||||||||
2030 Notes | February 2030 | 645 | 637 | |||||||||||||||||
2031 Notes | January 2031 | 644 | 644 | |||||||||||||||||
2033 Notes | July 2033 | 662 | 653 | |||||||||||||||||
2040 Notes | December 2040 | 644 | 644 | |||||||||||||||||
2050 Notes | April 2050 | 487 | 486 | |||||||||||||||||
2052 Notes | March 2052 | 541 | 541 | |||||||||||||||||
2022 Credit Facility | December 2027 | (5) | (5) | |||||||||||||||||
Total long-term debt | $ | 4,762 | $ | 4,735 | ||||||||||||||||
Total debt obligations | $ | 5,109 | $ | 5,399 |
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | ||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.073 | 0.096 | # | N/A | N/A | |||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 6.5 | % | 4.6 | % | 3.9 | % | 85.0 | % | 100.0 | % | ||||||||||||||||||||||
Percentage of operating income | 10.2 | % | (3.3) | % | (13.0) | % | 106.1 | % | 100.0 | % | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (6) | $ | (4) | $ | (4) | $ | — | $ | (14) | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $ | (4) | $ | (1) | $ | (7) | $ | — | $ | (12) | ||||||||||||||||||||||
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||||||||
(in millions) | ||||||||||||||
Swedish Krona | $ | 3,015 | $ | 301 | ||||||||||
British Pound | 155 | 15 | ||||||||||||
Norwegian Krone | 139 | 14 | ||||||||||||
Canadian Dollar | 110 | 11 | ||||||||||||
Australian Dollar | 107 | 11 | ||||||||||||
Euro | 50 | 5 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | ||||||||||||||||||||||
January 2023 | ||||||||||||||||||||||||||
Share repurchase program | 2,533,146 | $ | 61.11 | 2,533,146 | $ | 495 | ||||||||||||||||||||
Employee transactions | 14,652 | $ | 62.02 | N/A | N/A | |||||||||||||||||||||
February 2023 | ||||||||||||||||||||||||||
Share repurchase program | 76,854 | $ | 59.98 | 76,854 | $ | 491 | ||||||||||||||||||||
Employee transactions | 682,178 | $ | 57.13 | N/A | N/A | |||||||||||||||||||||
March 2023 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 491 | ||||||||||||||||||||
Employee transactions | — | $ | — | N/A | N/A | |||||||||||||||||||||
Total Quarter Ended March 31, 2023 | ||||||||||||||||||||||||||
Share repurchase program | 2,610,000 | $ | 61.08 | 2,610,000 | $ | 491 | ||||||||||||||||||||
Employee transactions | 696,830 | $ | 57.24 | N/A | N/A |
Exhibit Number | ||||||||
101 | The following materials from the Nasdaq, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022; (ii) Condensed Consolidated Statements of Income for the three months ended March 31, 2023 and 2022; (iii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2023 and 2022; (iv) Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2023 and 2022; (v) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022; and (vi) notes to condensed consolidated financial statements. | |||||||
104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
Nasdaq, Inc. | ||||||||
(Registrant) | ||||||||
By: | /s/ Adena T. Friedman | |||||||
Name: | Adena T. Friedman | |||||||
Title: | Chief Executive Officer | |||||||
Date: | May 4, 2023 | |||||||
By: | /s/ Ann M. Dennison | |||||||
Name: | Ann M. Dennison | |||||||
Title: | Executive Vice President and Chief Financial Officer | |||||||
Date: | May 4, 2023 |