Revenue from its financial technology unit soared 71% to $392 million in Q1, while revenue from its index business climbed 53% to $168 million
Nasdaq beats estimates for first quarter revenue on Thursday, driven by strong demand for its financial technology products used by traders and investors to navigate the capital markets.
Revenue from its financial technology unit soared 71% to $392 million in Q1, while revenue from its index business climbed 53% to $168 million.
Our performance underscores the durability of our business model and our ability to deliver growth across uncertain environments, said Adena Friedman, CEO, at Nasdaq on an analysts’ call.
Nasdaq’s solutions business revenue increased 35% in the quarter, owing to the strong growth across its index and financial technology products. For market services, nevertheless, it dropped 9% to $237 million, driven in part by declines in revenue from U.S. equity derivatives because of lower volatility, and U.S. cash equities.
In the meantime, revenue in the capital access platforms division increased 15%, also owing to the strong performance of the index business.
The exchange operator has expanded its business beyond trading and listing to create a more stable and sustainable source of revenue by offering products that focus on anti-financial crime and compliance.
Nasdaq has been on an acquisition spree to diversify its portfolio of technology and intellectual property after regulations in 2005 opened the equities trading market up to competition from brokers.
Net revenue in Q1 climbed 22% to $1.12 billion. Analysts on average had expected $1.11 billion, per LSEG data.
The company’s adjusted profit of 63 cents per share in the three months ended March 31 missed analysts’ expectations of 65 cents.
The push towards products and solutions helped offset a deceleration in trading activity in U.S. equities as markets took a breather after a period of extended volatility.
U.S. equity matched shares volumes dropped to 116.7 billion in Q1 from 121.8 billion a year earlier. U.S. equity options volumes dropped to 773 million contracts from 811 million contracts.