Nasdaq’s Q3 Results Show It Dominates IPO Listings in 2023

<p>Nasdaq,
Inc. today (Wednesday) published its financial performance for the third
quarter of 2023, revealing significant growth in multiple sectors. The report
of the publicly-listed company (Nasdaq: <a href="https://www.financemagnates.com/tag/nasdaq/" target="_blank" rel="follow">NDAQ</a>) detailed broad-based increases in
revenue, a strong performance in anti-financial crime solutions, and more than
$1.6 billion of free cash flow generated over the past year. On top of
that, the exchange operator reinforced its listings leadership in the US.</p><p>Broad-Based Revenue Growth
Drives Nasdaq's Q3 Performance</p><p>The company
experienced a 6% net revenue increase in the third quarter of 2023 <a href="https://www.financemagnates.com/institutional-forex/nasdaq-reports-6-jump-in-q3-2022-revenue/" target="_blank" rel="follow">compared to
the third quarter of 2022</a>. Solutions Businesses, a significant contributor, saw
their revenues climb by 9% with an organic growth rate of 8%. The Annualized
Recurring Revenue (ARR) also grew by 6%, with annualized SaaS revenues showing
an 11% increase. This represents 37% of ARR.</p><p>Nasdaq's
Anti-Financial Crime was another arm that reported higher numbers, with
revenues increasing by 21% compared to last year. This rise is attributed to smaller
financial institutions' growing adoption of Verafin, a financial crime
management solution. The overall GAAP diluted earnings per share rose by 2%,
and the non-GAAP version showed a 4% increase.</p><blockquote><p lang="en" dir="ltr">Today, <a href="https://twitter.com/Nasdaq?ref_src=twsrc%5Etfw">@Nasdaq</a> reports financial results for the third quarter of 2023.Learn more: <a href="https://t.co/x3nzPfOwTF">https://t.co/x3nzPfOwTF</a> <a href="https://t.co/RGDnc17ZVj">pic.twitter.com/RGDnc17ZVj</a></p>— Nasdaq (@Nasdaq) <a href="https://twitter.com/Nasdaq/status/1714601142666092615?ref_src=twsrc%5Etfw">October 18, 2023</a></blockquote><p>"Our
third quarter 2023 results reflect Nasdaq's solid <a href="https://www.financemagnates.com/terms/e/execution/">execution</a> amid a continued
dynamic economic and capital markets backdrop," said Adena Friedman, the Chairwom
and CEO of Nasdaq. "We experienced some improvement in the IPO environment
by welcoming marquee IPOs, we continued to broaden our Anti-Financial Crime
clientele, and we introduced new innovations to our products and services.</p><p>During this
quarter, Nasdaq generated more than $1.6 billion in free cash flow over the
trailing twelve months. In terms of giving back to shareholders, Nasdaq
returned $108 million through dividends. No share repurchases were made in this
period. As of 30 September 2023, the company has $2.0 billion available under
its board-authorized share repurchase program.</p><p>Strategic Advancements</p><p>The company
updated its 2023 non-GAAP operating expense guidance to a range of $1,785
million to $1,805 million. In terms of strategic updates, Nasdaq has been
making headway in acquiring Adenza and has also launched new environmental
sustainability solutions. Notably, the firm is partnering with a growing number
of financial institutions to manage increasing risks related to financial
crimes.</p><p>"We
delivered broad-based revenue growth in the third quarter and had particularly
strong performance in our Index and Anti-Financial Crime businesses," Ann
Dennison, the Executive Vice President and CFO, added. </p><p>In the
first three quarters of 2023, Nasdaq reinforced its listings leadership in the US,
<a href="https://www.financemagnates.com/institutional-forex/nasdaq-ends-2022-with-70-of-the-largest-global-ipos/" target="_blank" rel="follow">capturing 84% of operating company IPOs</a> and unveiling a modernized MarketSite
in Times Square for high-profile listing events. The <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> also received <a href="https://www.financemagnates.com/institutional-forex/sec-approves-nasdaqs-ai-powered-order-type-as-ai-dominates-traditional-finance/" target="_blank" rel="follow">SEC
approval for its AI-powered order type</a>, Dynamic Midpoint Extended Life Order,
which has shown to improve order fill rates by over 30% in testing.</p><p>In the meantime, the company shelved its crypto custody plan, <a href="https://www.financemagnates.com/cryptocurrency/nasdaq-shelves-crypto-custody-plan-cites-shifting-reg-environment-in-us/" target="_blank" rel="follow">citing "shifting regulatory environment"</a> in the USA.</p>

This article was written by Damian Chmiel at www.financemagnates.com.