NEW YORK - Nasdaq Inc. (NASDAQ:NDAQ) reported its financial outcomes for the first quarter of 2024, showcasing a 22% increase in net revenues to $1.1 billion compared to the same period last year.
However, the company's adjusted earnings per share (EPS) fell short of analyst expectations, coming in at $0.63 versus the estimated $0.65. Despite the revenue growth, the stock experienced a slight decline of 0.8% following the announcement, attributed to the weaker-than-expected results.
The revenue growth was driven by a 35% increase in Solutions segment revenue, with organic growth of 11%. The Financial Technology sector saw a significant 71% increase in revenue over the previous year. The Index revenue also rose by 53%, with exchange-traded products (ETP) assets under management (AUM) surpassing $500 billion during the quarter.
However, GAAP diluted earnings per share decreased by 34%, and adjusted diluted earnings per share decreased by 9%, although there was a 6% organic increase.
Adena Friedman, Chair and CEO of Nasdaq, highlighted the company's double-digit revenue growth and the strength of its Financial Technology and Index performance. She expressed confidence in the company's strategic priorities and its positioning for future growth. CFO Sarah Youngwood emphasized the durability of Nasdaq's business model and the company's focus on disciplined investments and expense management.
Despite the positive revenue growth, the market's response was tempered due to the EPS miss, with the stock slightly down after the earnings release. The company's performance reflects the challenges of maintaining earnings growth in line with revenue increases.
Nasdaq did not provide specific guidance for the upcoming quarter or fiscal year in the press release. As such, there is no comparison available between the company's future outlook and analyst consensus estimates. However, the management's comments suggest an optimistic view of the company's trajectory for the remainder of the year.
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