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) |
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 24, 2024 | ||||||||||
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, 2024 | December 31, 2023 | ||||||||||
(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, | |||||||||||
2024 | 2023 | ||||||||||
Revenues: | |||||||||||
Capital Access Platforms | $ | $ | |||||||||
Financial Technology | |||||||||||
Market Services | |||||||||||
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 income | |||||||||||
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, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation losses | ( | ( | |||||||||
Income tax benefit (expense)(1) | ( | ||||||||||
Foreign currency translation, net | ( | ( | |||||||||
Net unrealized loss from cash flow hedges | ( | ||||||||||
Employee benefit plan adjustment | |||||||||||
Employee benefit plan income tax provision | ( | ||||||||||
Employee benefit plan, net | |||||||||||
Total other comprehensive loss, net of tax | ( | ( | |||||||||
Comprehensive income | |||||||||||
Comprehensive loss attributable to noncontrolling interests | |||||||||||
Comprehensive income attributable to Nasdaq | $ | $ |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Shares | $ | Shares | $ | ||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Share repurchase program | — | — | ( | ( | |||||||||||||||||||
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 and paid | ( | ( | |||||||||||||||||||||
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, | |||||||||||
2024 | 2023 | ||||||||||
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: | |||||||||||
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 | ( | ( | |||||||||
Repayments of term loan | ( | ||||||||||
Repurchases of common stock | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Payments related to employee shares withheld for taxes | ( | ( | |||||||||
Default funds and margin deposits | ( | ||||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||
Net 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, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Capital Access Platforms | |||||||||||
Data & Listing Services | $ | $ | |||||||||
Index | |||||||||||
Workflow & Insights | |||||||||||
Financial Technology | |||||||||||
Financial Crime Management Technology | |||||||||||
Regulatory Technology | |||||||||||
Capital Markets Technology | |||||||||||
Market Services, net | |||||||||||
Other revenues | |||||||||||
Revenues less transaction-based expenses | $ | $ | |||||||||
Financial Crime Management Technology | Regulatory Technology | Capital Markets Technology | Workflow & Insights | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Remainder of 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||
2026 | |||||||||||||||||||||||||||||
2027 | |||||||||||||||||||||||||||||
2028 | |||||||||||||||||||||||||||||
2029+ | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(in millions, except price per share) | |||||
Shares of Nasdaq common stock issued | |||||
Closing price per share of Nasdaq common stock on November 1, 2023 | $ | ||||
Fair value of equity portion of the purchase consideration | $ | ||||
Cash consideration | $ | ||||
Total purchase consideration | $ |
(in millions) | |||||
Goodwill | $ | ||||
Acquired intangible assets | |||||
Receivables, net | |||||
Other net assets acquired | |||||
Cash and cash equivalents | |||||
Accrued personnel costs | ( | ||||
Deferred revenue | ( | ||||
Deferred tax liability on acquired intangible assets | ( | ||||
Total purchase consideration | $ |
Customer Relationships | Technology | Trade Names | Total Acquired Intangible Assets | |||||||||||
Intangible asset value (in millions) | $ | $ | $ | $ | ||||||||||
Discount rate used | % | % | % | |||||||||||
Estimated average useful life |
(in millions) | |||||
Capital Access Platforms | |||||
Balance at December 31, 2023 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2024 | $ | ||||
Financial Technology | |||||
Balance at December 31, 2023 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2024 | $ | ||||
Market Services | |||||
Balance at December 31, 2023 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2024 | $ | ||||
Total | |||||
Balance at December 31, 2023 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2024 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
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, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Amortization expense | $ | $ |
(in millions) | |||||
Remainder of 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029+ | |||||
Total | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(in millions) | |||||||||||
Financial investments | $ | $ | |||||||||
Equity method investments | |||||||||||
Equity securities |
Balance at December 31, 2023 | Additions | Revenue Recognized | Adjustments | Balance at March 31, 2024 | |||||||||||||
(in millions) | |||||||||||||||||
Capital Access Platforms: | |||||||||||||||||
Initial Listings | $ | $ | $ | ( | $ | ( | $ | ||||||||||
Annual Listings | ( | ( | |||||||||||||||
Workflow & Insights | ( | ||||||||||||||||
Financial Technology: | |||||||||||||||||
Financial Crime Management Technology | ( | ( | |||||||||||||||
Regulatory Technology | ( | ( | |||||||||||||||
Capital Markets Technology | ( | ( | |||||||||||||||
Other | ( | ( | |||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ | ||||||||||
Fiscal year ended: | 2024 | 2025 | 2026 | 2027 | 2028 | 2029+ | Total | ||||||||||||||||
(in millions) | |||||||||||||||||||||||
Capital Access Platforms: | |||||||||||||||||||||||
Initial Listings | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Annual Listings | |||||||||||||||||||||||
Workflow & Insights | |||||||||||||||||||||||
Financial Technology: | |||||||||||||||||||||||
Financial Crime Management Technology | |||||||||||||||||||||||
Regulatory Technology | |||||||||||||||||||||||
Capital Markets Technology | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Short-term debt: | (in millions) | ||||||||||
Commercial paper | $ | $ | |||||||||
Long-term debt - senior unsecured notes: | |||||||||||
2025 Notes, $ | |||||||||||
2026 Notes, $ | |||||||||||
2028 Notes, $ | |||||||||||
2029 Notes, € | |||||||||||
2030 Notes, € | |||||||||||
2031 Notes, $ | |||||||||||
2032 Notes, € | |||||||||||
2033 Notes, € | |||||||||||
2034 Notes $ | |||||||||||
2040 Notes, $ | |||||||||||
2050 Notes, $ | |||||||||||
2052 Notes, $ | |||||||||||
2053 Notes, $ | |||||||||||
2063 Notes, $ | |||||||||||
2023 Term Loan | |||||||||||
2022 Revolving Credit Facility | ( | ( | |||||||||
Total long-term debt | $ | $ | |||||||||
Total debt obligations | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Savings Plan expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Retirement Plans expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Share-based compensation expense before income taxes | $ | $ |
Restricted Stock | |||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at March 31, 2024 | $ |
PSUs | ||||||||||||||
Three-Year Program | ||||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | |||||||||||||
Unvested at December 31, 2023 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Unvested at March 31, 2024 | $ |
Number of Stock Options | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||
Outstanding at March 31, 2024 | $ | $ | ||||||||||||
Exercisable at March 31, 2024 | $ | $ |
Declaration Date | Dividend Per Common Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
January 29, 2024 | $ | March 14, 2024 | $ | March 28, 2024 | ||||||||||||||||||||||
$ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
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: | |||||||||||
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, 2024 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
State-owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
State-owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||||||||
(in millions) | |||||||||||||||||
Default fund contributions | $ | $ | $ | ||||||||||||||
Margin deposits | |||||||||||||||||
Total | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(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, 2024 | |||||
(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, | |||||||||||
2024 | 2023 | ||||||||||
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, 2024 | December 31, 2023 | |||||||||||||||||
(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, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Operating lease cost | $ | $ | |||||||||
Variable lease cost | |||||||||||
Sublease income | ( | ( | |||||||||
Total lease cost | $ | $ |
March 31, 2024 | ||||||||
(in millions) | ||||||||
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029+ | ||||||||
Total lease payments | $ | |||||||
Less: interest | ( | |||||||
Present value of lease liabilities | $ |
March 31, 2024 | ||||||||
Weighted-average remaining lease term (in years) | ||||||||
Weighted-average discount rate | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(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, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Income tax provision | $ | $ | |||||||||
Effective tax rate | % | % | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Capital Access Platforms | |||||||||||
Total revenues | $ | $ | |||||||||
Operating income | |||||||||||
Financial Technology | |||||||||||
Total revenues | |||||||||||
Operating income | |||||||||||
Market Services | |||||||||||
Total revenues | |||||||||||
Transaction-based expenses | ( | ( | |||||||||
Revenues less transaction-based expenses | |||||||||||
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, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Revenues - divested businesses | $ | $ | |||||||||
Expenses: | |||||||||||
Amortization expense of acquired intangible assets | |||||||||||
Merger and strategic initiatives expense | |||||||||||
Restructuring charges | |||||||||||
Lease asset impairments | |||||||||||
Legal and regulatory matters | ( | ||||||||||
Pension Settlement | |||||||||||
Expenses - divested businesses | |||||||||||
Other | |||||||||||
Total expenses | $ | $ | |||||||||
Operating loss | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Asset impairment charges | |||||||||||
Divisional realignment | $ | $ | |||||||||
Consulting services | |||||||||||
Divisional realignment | |||||||||||
Employee-related costs | |||||||||||
Adenza restructuring | |||||||||||
Divisional realignment | |||||||||||
Other | |||||||||||
Adenza restructuring | |||||||||||
Divisional realignment | |||||||||||
Total restructuring charges | $ | $ | |||||||||
Total Program Costs Incurred | |||||||||||
Adenza restructuring | $ | ||||||||||
Divisional realignment | $ |
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||
Revenues less transaction-based expenses | $ | 1,117 | $ | 914 | 22.2 | % | |||||||||||
Operating expenses | 707 | 502 | 40.8 | % | |||||||||||||
Operating income | $ | 410 | $ | 412 | (0.5) | % | |||||||||||
Net income attributable to Nasdaq | $ | 234 | $ | 302 | (22.5) | % | |||||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.61 | (34.4) | % | |||||||||||
Cash dividends declared per common share | $ | 0.22 | $ | 0.20 | 10.0 | % | |||||||||||
▪ | 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. | |||||||
▪ | SaaS subscription and support contracts related to Verafin, surveillance, market technology, AxiomSL, Calypso and trade management services, excluding one-time service requests. |
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Capital Access Platforms | $ | 479 | $ | 415 | 15.4 | % | |||||||||||
Financial Technology | 392 | 229 | 71.2 | % | |||||||||||||
Market Services | 794 | 879 | (9.7) | % | |||||||||||||
Other revenues | 9 | 10 | (10.0) | % | |||||||||||||
Total revenues | $ | 1,674 | $ | 1,533 | 9.2 | % | |||||||||||
Transaction rebates | (481) | (487) | (1.2) | % | |||||||||||||
Brokerage, clearance and exchange fees | (76) | (132) | (42.4) | % | |||||||||||||
Total revenues less transaction-based expenses | $ | 1,117 | $ | 914 | 22.2 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Data & Listing Services | $ | 186 | $ | 185 | 0.5 | % | |||||||||||
Index | 168 | 110 | 52.7 | % | |||||||||||||
Workflow & Insights | 125 | 120 | 4.2 | % | |||||||||||||
Total Capital Access Platforms | $ | 479 | $ | 415 | 15.4 | % | |||||||||||
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
IPOs | ||||||||||||||
The Nasdaq Stock Market | 27 | 40 | ||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 1 | 2 | ||||||||||||
Total new listings | ||||||||||||||
The Nasdaq Stock Market | 79 | 81 | ||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 2 | 7 | ||||||||||||
Number of listed companies | ||||||||||||||
The Nasdaq Stock Market | 4,020 | 4,163 | ||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 1,203 | 1,250 | ||||||||||||
As of March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
ARR (in millions) | $ | 665 | $ | 673 |
As of or Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Number of licensed ETPs | 361 | 387 | ||||||||||||
TTM change in period end ETP AUM tracking Nasdaq indices (in billions) | ||||||||||||||
Beginning balance | $ | 366 | $ | 401 | ||||||||||
Net appreciation (depreciation) | 124 | (57) | ||||||||||||
Net impact of ETP sponsor switches | (17) | (1) | ||||||||||||
Net inflows | 46 | 23 | ||||||||||||
Ending balance | $ | 519 | $ | 366 | ||||||||||
Quarterly average ETP AUM tracking Nasdaq indices (in billions) | $ | 492 | $ | 341 | ||||||||||
ARR (in millions) | $ | 74 | $ | 71 |
As of or Three Months Ended March 31 | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
ARR | $ | 481 | $ | 458 | |||||||
Quarterly annualized SaaS revenues | 411 | 386 |
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Financial Crime Management Technology | $ | 64 | $ | 52 | 23.1 | % | |||||||||||
Regulatory Technology | 90 | 32 | 181.3 | % | |||||||||||||
Capital Markets Technology | 238 | 145 | 64.1 | % | |||||||||||||
Total Financial Technology | $ | 392 | $ | 229 | 71.2 | % |
As of or Three Months Ended March 31 | ||||||||||||||
2024 | 2023 | |||||||||||||
(in millions) | ||||||||||||||
ARR and Quarterly annualized SaaS revenues | $ | 243 | $ | 196 | ||||||||||
As of or Three Months Ended March 31 | ||||||||||||||
2024 | 2023 | |||||||||||||
(in millions) | ||||||||||||||
ARR | $ | 328 | $ | 125 | ||||||||||
Quarterly annualized SaaS revenues | 168 | 110 |
As of or Three Months Ended March 31 | ||||||||||||||
2024 | 2023 | |||||||||||||
(in millions) | ||||||||||||||
ARR | $ | 821 | $ | 506 | ||||||||||
Quarterly annualized SaaS revenues | 110 | 37 | ||||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Market Services | $ | 794 | $ | 879 | (9.7) | % | |||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | (481) | (487) | (1.2) | % | |||||||||||||
Brokerage, clearance and exchange fees | (76) | (132) | (42.4) | % | |||||||||||||
Total Market Services, net | $ | 237 | $ | 260 | (8.8) | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
U.S. Equity Derivative Trading | $ | 91 | $ | 102 | (10.8) | % | |||||||||||
Cash Equity Trading | 100 | 103 | (2.9) | % | |||||||||||||
U.S. Tape plans | 28 | 36 | (22.2) | % | |||||||||||||
Other | 18 | 19 | (5.3) | % | |||||||||||||
Total Market Services, net | $ | 237 | $ | 260 | (8.8) | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
U.S. Equity Derivative Trading Revenues | $ | 323 | $ | 327 | (1.2) | % | |||||||||||
Section 31 fees | 11 | 23 | (52.2) | % | |||||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | (231) | (224) | 3.1 | % | |||||||||||||
Section 31 fees | (11) | (23) | (52.2) | % | |||||||||||||
Brokerage and clearance fees | (1) | (1) | — | % | |||||||||||||
U.S. Equity derivative trading revenues, net | $ | 91 | $ | 102 | (10.8) | % | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
U.S. equity options | |||||||||||
Total industry average daily volume (in millions) | 43.3 | 42.4 | |||||||||
Nasdaq PHLX matched market share | 10.3 | % | 11.1 | % | |||||||
The Nasdaq Options Market matched market share | 5.4 | % | 7.1 | % | |||||||
Nasdaq BX Options matched market share | 2.2 | % | 3.3 | % | |||||||
Nasdaq ISE Options matched market share | 6.3 | % | 5.8 | % | |||||||
Nasdaq GEMX Options matched market share | 2.5 | % | 2.0 | % | |||||||
Nasdaq MRX Options matched market share | 2.5 | % | 1.5 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 29.2 | % | 30.8 | % | |||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Cash Equity Trading Revenues | $ | 350 | $ | 366 | (4.4) | % | |||||||||||
Section 31 fees | 59 | 102 | (42.2) | % | |||||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | (245) | (257) | (4.7) | % | |||||||||||||
Section 31 fees | (59) | (102) | (42.2) | % | |||||||||||||
Brokerage and clearance fees | (5) | (6) | (16.7) | % | |||||||||||||
Cash equity trading revenues, net | $ | 100 | $ | 103 | (2.9) | % | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total U.S.-listed securities | |||||||||||
Total industry average daily share volume (in billions) | 11.8 | 11.8 | |||||||||
Matched share volume (in billions) | 116.7 | 121.8 | |||||||||
The Nasdaq Stock Market matched market share | 15.7 | % | 15.8 | % | |||||||
Nasdaq BX matched market share | 0.4 | % | 0.4 | % | |||||||
Nasdaq PSX matched market share | 0.2 | % | 0.5 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 16.3 | % | 16.7 | % | |||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 41.4 | % | 31.6 | % | |||||||
Total market share | 57.7 | % | 48.3 | % | |||||||
Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 666,408 | 787,715 | |||||||||
Total average daily value of shares traded (in billions) | $ | 4.7 | $ | 5.3 | |||||||
Total market share executed on Nasdaq’s exchanges | 71.7 | % | 68.9 | % | |||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
U.S. Tape plans | $ | 28 | $ | 36 | (22.2) | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Other | $ | 18 | $ | 19 | (5.3) | % | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||
Total average daily volume of options and futures contracts | 241,665 | 344,141 | |||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Compensation and benefits | $ | 340 | $ | 256 | 32.8 | % | |||||||||||
Professional and contract services | 34 | 32 | 6.3 | % | |||||||||||||
Computer operations and data communications | 67 | 54 | 24.1 | % | |||||||||||||
Occupancy | 28 | 39 | (28.2) | % | |||||||||||||
General, administrative and other | 28 | 14 | 100.0 | % | |||||||||||||
Marketing and advertising | 11 | 9 | 22.2 | % | |||||||||||||
Depreciation and amortization | 155 | 69 | 124.6 | % | |||||||||||||
Regulatory | 9 | 9 | — | % | |||||||||||||
Merger and strategic initiatives | 9 | 2 | 350.0 | % | |||||||||||||
Restructuring charges | 26 | 18 | 44.4 | % | |||||||||||||
Total operating expenses | $ | 707 | $ | 502 | 40.8 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Interest income | $ | 6 | $ | 6 | —% | ||||||||||||
Interest expense | (108) | (36) | 200.0 | % | |||||||||||||
Net interest expense | (102) | (30) | 240.0 | % | |||||||||||||
Other income | 1 | — | N/M | ||||||||||||||
Net income from unconsolidated investees | 3 | 14 | (78.6) | % | |||||||||||||
Total non-operating expense | $ | (98) | $ | (16) | 512.5 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(in millions) | |||||||||||||||||
Interest expense on debt | $ | 103 | $ | 35 | 194.3 | % | |||||||||||
Accretion of debt issuance costs and debt discount | 4 | 1 | 300.0 | % | |||||||||||||
Other fees | 1 | — | N/M | ||||||||||||||
Interest expense | $ | 108 | $ | 36 | 200.0 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
($ in millions) | |||||||||||||||||
Income tax provision | $ | 79 | $ | 95 | (16.8) | % | |||||||||||
Effective tax rate | 25.3 | % | 24.0 | % | |||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except per share amounts) | |||||||||||
U.S. GAAP net income attributable to Nasdaq | $ | 234 | $ | 302 | |||||||
Non-GAAP adjustments: | |||||||||||
Amortization expense of acquired intangible assets | 123 | 38 | |||||||||
Merger and strategic initiatives expense | 9 | 2 | |||||||||
Restructuring charges | 26 | 18 | |||||||||
Lease asset impairments | — | 17 | |||||||||
Net income from unconsolidated investees | (3) | (14) | |||||||||
Legal and regulatory matters | 2 | (10) | |||||||||
Pension settlement charge | 23 | — | |||||||||
Other | — | 1 | |||||||||
Total non-GAAP adjustments | $ | 180 | $ | 52 | |||||||
Total non-GAAP tax adjustments | (47) | (15) | |||||||||
Total non-GAAP adjustments, net of tax | $ | 133 | $ | 37 | |||||||
Non-GAAP net income attributable to Nasdaq | $ | 367 | $ | 339 | |||||||
U.S. GAAP effective tax rate | 25.3 | % | 24.0 | % | |||||||
Total adjustments from non-GAAP tax rate | 0.3 | % | 0.6 | % | |||||||
Non-GAAP effective tax rate | 25.6 | % | 24.6 | % | |||||||
Weighted-average common shares outstanding for diluted earnings per share | 578.9 | 494.8 | |||||||||
U.S. GAAP diluted earnings per share | $ | 0.40 | $ | 0.61 | |||||||
Total adjustments from non-GAAP net income | 0.23 | 0.08 | |||||||||
Non-GAAP diluted earnings per share | $ | 0.63 | $ | 0.69 |
March 31, 2024 | December 31, 2023 | |||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | 388 | $ | 453 | ||||||||||
Financial investments | 173 | 188 | ||||||||||||
Working capital | (72) | 71 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net cash provided by (used in): | (in millions) | ||||||||||
Operating activities | $ | 530 | $ | 565 | |||||||
Investing activities | (232) | (133) | |||||||||
Financing activities | (1,875) | (613) | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (311) | 29 | |||||||||
Net decrease in cash and cash equivalents and restricted cash and cash equivalents | $ | (1,888) | $ | (152) | |||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | 7,118 | 6,994 | |||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | 5,230 | $ | 6,842 | |||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | 388 | $ | 373 | |||||||
Restricted cash and cash equivalents | 21 | 57 | |||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | 4,821 | 6,412 | |||||||||
Total | $ | 5,230 | $ | 6,842 |
2024 | 2023 | ||||||||||
First quarter | $ | 0.22 | $ | 0.20 | |||||||
Maturity Date | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
Short-term debt: | (in millions) | |||||||||||||||||||
Commercial paper | $ | 224 | $ | 291 | ||||||||||||||||
Total short-term debt | $ | 224 | $ | 291 | ||||||||||||||||
Long-term debt - senior unsecured notes: | ||||||||||||||||||||
2025 Notes | June 2025 | $ | 498 | $ | 497 | |||||||||||||||
2026 Notes | June 2026 | 499 | 499 | |||||||||||||||||
2028 Notes | June 2028 | 992 | 991 | |||||||||||||||||
2029 Notes | March 2029 | 644 | 658 | |||||||||||||||||
2030 Notes | February 2030 | 643 | 658 | |||||||||||||||||
2031 Notes | January 2031 | 645 | 645 | |||||||||||||||||
2032 Notes | February 2032 | 801 | 819 | |||||||||||||||||
2033 Notes | July 2033 | 659 | 674 | |||||||||||||||||
2034 Notes | February 2034 | 1,240 | 1,239 | |||||||||||||||||
2040 Notes | December 2040 | 644 | 644 | |||||||||||||||||
2050 Notes | April 2050 | 487 | 487 | |||||||||||||||||
2052 Notes | March 2052 | 541 | 541 | |||||||||||||||||
2053 Notes | August 2053 | 738 | 738 | |||||||||||||||||
2063 Notes | June 2063 | 738 | 738 | |||||||||||||||||
2023 Term Loan | November 2026 | — | 339 | |||||||||||||||||
2022 Revolving Credit Facility | December 2027 | (4) | (4) | |||||||||||||||||
Total long-term debt | $ | 9,765 | $ | 10,163 | ||||||||||||||||
Total debt obligations | $ | 9,989 | $ | 10,454 |
Euro | Swedish Krona | Canadian Dollar | Other Foreign Currencies | U.S. Dollar | Total | |||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.086 | 0.096 | 0.742 | # | N/A | N/A | ||||||||||||||
Percentage of revenues less transaction-based expenses | 7.5% | 3.7% | 0.7% | 3.2% | 84.9% | 100.0% | ||||||||||||||
Percentage of operating income | 14.8% | (3.3)% | (8.5)% | (12.0)% | 109.0% | 100.0% | ||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $(8) | $(4) | $(1) | $(4) | $— | $(17) | ||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $(6) | $(1) | $(3) | $(5) | $— | $(15) |
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||||||||
(in millions) | ||||||||||||||
Swedish Krona | $ | 2,829 | $ | 283 | ||||||||||
Norwegian Krone | 135 | 14 | ||||||||||||
British Pound | 151 | 15 | ||||||||||||
Canadian Dollar | 105 | 11 | ||||||||||||
Australian Dollar | 98 | 10 | ||||||||||||
Euro | 74 | 7 |
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 2024 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,890 | ||||||||||||||||||||
Employee transactions | 28,751 | $ | 56.29 | N/A | N/A | |||||||||||||||||||||
February 2024 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,890 | ||||||||||||||||||||
Employee transactions | 409,768 | $ | 55.70 | N/A | N/A | |||||||||||||||||||||
March 2024 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,890 | ||||||||||||||||||||
Employee transactions | — | $ | — | N/A | N/A | |||||||||||||||||||||
Total Quarter Ended March 31, 2024 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,890 | ||||||||||||||||||||
Employee transactions | 438,519 | $ | 55.74 | 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, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023; (ii) Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023; (iii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023; (iv) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2024 and 2023; (v) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023; 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 2, 2024 | |||||||
By: | /s/ Sarah Youngwood | |||||||
Name: | Sarah Youngwood | |||||||
Title: | Executive Vice President and Chief Financial Officer | |||||||
Date: | May 2, 2024 | |||||||