📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Nasdaq profits top Wall Street views as software services rise

Published 07/20/2022, 07:30 AM
Updated 07/20/2022, 10:27 AM
© Reuters. FILE PHOTO: The Nasdaq logo is displayed at the Nasdaq Market site in New York, U.S., May 2, 2019. REUTERS/Brendan McDermid/

By Mehnaz Yasmin and John McCrank

(Reuters) -Nasdaq Inc on Wednesday reported quarterly profits that beat Wall Street expectations, as traders turned to the exchange operator's investment-related products to navigate market volatility, helping drive up revenues.

After stripping out onetime items, including a gain from the divestiture of the company's fixed income business in the year-ago quarter, Nasdaq earned $2.07 per share, well above analysts' average estimate of $1.91 per share, according to IBES data from Refinitiv.

Net revenue jumped 6% to $893 million, primarily driven by a 10% rise in revenue in the company's solutions segment, which includes indexing and analytics, anti-financial crime technology and environmental, social, and governance (ESG) advisory products.

Shares of New York-based Nasdaq were up as much as 5.8% shortly after the market opened, their highest since April 22.

"The company is on the way to becoming more like a SaaS technology provider than a traditional exchange," Oppenheimer analyst Owen Lau said in a note to clients, referring to Nasdaq's software-as-a-service push.

Under Chief Executive Officer Adena Friedman, the stock exchange operator has looked to diversify its offerings and reposition itself as a leading financial technology company with an expanding footprint in the software sector, offering analytics, data and cloud services.

Last month, Nasdaq also said it planned to acquire ESG software provider Metrio for an undisclosed amount.

© Reuters. FILE PHOTO: The Nasdaq logo is displayed at the Nasdaq Market site in New York, U.S., May 2, 2019. REUTERS/Brendan McDermid/

The Nasdaq stock market hosted 38 initial public offerings in the quarter, compared with 135 stock market flotations in the year-ago quarter, as companies held off from tapping the markets during the recent downturn.

Earlier this month, Nasdaq was also among large exchange groups that won a ruling against the Securities and Exchange Commission when a U.S. appeals court struck down the regulator's order that would have allowed some financial firms to have a say in how essential stock market data is priced and disseminated.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.