Artificial Intelligence
Nasdaq Reports Fourth Quarter and Full Year 2019 Results; Delivers Strong Revenue Growth in Non-Trading Segments(1)
- 2019 net revenues2 were $2,535 million. Revenues in the non-trading segments increased 10% versus the prior year period, while Market Services revenues decreased 5% from a multi-year annual high in 2018 as volatility and volumes receded.
- The 10% increase in 2019 net revenues in the non-trading segments reflected 8% organic growth and a 3% positive impact from acquisitions, partially offset by a 1% negative impact from unfavorable changes in foreign exchange rates.
- Fourth quarter 2019 net revenues were $646 million. Revenues in the non-trading segments increased 9% versus the prior year period, primarily driven by organic growth, while Market Services revenues decreased 10% compared to the fourth quarter of 2018, which featured near record volumes and revenues.
- The GAAP operating margin was 40% in 2019, compared to 41% in the prior year, while the non-GAAP operating margin3 of 49% increased from 48% in the prior year.
- 2019 GAAP diluted earnings per share was $4.63, compared to $2.73 in 2018, while fourth quarter 2019 GAAP diluted earnings per share was $1.21 compared to a loss of $0.27 in the fourth quarter of 2018.
- 2019 non-GAAP earnings per share was $5.00, compared to $4.75 in 2018, while fourth quarter 2019 non-GAAP diluted earnings per share of $1.29 increased from $1.24 in the fourth quarter of 2018.
- During 2019, the company returned $505 million to shareholders, including $200 million through its share buyback program and $305 million through quarterly dividends, while also completing a multi-year deleveraging objective.
NEW YORK, Jan. 29, 2020 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the fourth quarter and full year 2019.
2019 net revenues were $2,535 million, an increase of $9 million from $2,526 million in the prior year. The full year increase in net revenues included a $112 million positive impact from organic growth in the non-trading segments, partially offset by a $29 million organic decrease in Market Services, a $39 million negative net impact from acquisitions and divestitures and a $35 million unfavorable impact from changes in foreign exchange rates.
Fourth quarter 2019 net revenues were $646 million, up $1 million from $645 million in the prior year period. Net revenues reflected a $22 million positive impact from organic growth in the non-trading segments, a $15 million increase from the inclusion of revenues from acquisitions, partially offset by a $21 million organic decrease in Market Services revenues, a $10 million negative impact from divestitures and a $5 million unfavorable impact from changes in exchange rates.
“We are pleased with our progress in 2019 through the combination of our clear strategic direction, our unwavering commitment to clients and our disciplined execution,” said Adena Friedman, President and CEO, Nasdaq. “Specifically, we continued to adapt and broaden our offerings and deepen our client relationships, while delivering consistently on the organic growth, scalability, and return objectives we established at the onset of our strategic pivot. While still in the early stages of repositioning Nasdaq as a technology and analytics provider, we enter 2020 with clear momentum carried over from our strong finish in 2019, and will continue working to open additional areas of opportunity as the year progresses.”
GAAP operating expenses were $386 million in the fourth quarter of 2019, a decrease of $18 million from $404 million in the fourth quarter of 2018. The decrease primarily reflects lower general, administrative and other expense, lower professional and contract services expense, lower merger and strategic initiatives expense and lower depreciation and amortization expense, partially offset by higher compensation expense and restructuring charges in the fourth quarter of 2019.
Non-GAAP operating expenses were $335 million in the fourth quarter of 2019, an increase of $5 million, or 2%, compared to the fourth quarter of 2018. This reflects an $8 million organic expense increase and a $1 million increase from the net impact of acquisitions and divestitures, partially offset by a $4 million favorable impact from changes in foreign exchange rates.
“In 2019, we continued to reallocate capital and resources strategically to support our most significant growth opportunities while also demonstrating how a more scalable business can drive higher operating leverage and efficiency,” said Michael Ptasznik, Executive Vice President and Chief Financial Officer, Nasdaq. “With our strong cash flow generation, we also completed a multi-year deleveraging program, while also increasing our quarterly dividend and continuing to execute our share repurchase program.”
On a GAAP basis, net income in the fourth quarter of 2019 was $202 million, or diluted earnings per share of $1.21, compared to a net loss of $44 million, or $0.27 per diluted share, in the fourth quarter of 2018. Net income in 2019 was $774 million, or diluted earnings per share of $4.63, compared to net income of $458 million, or $2.73 per diluted share in 2018.
On a non-GAAP basis, net income in the fourth quarter of 2019 was $215 million, or $1.29 per diluted share, compared to $207 million, or $1.24 per diluted share, in the fourth quarter of 2018. Non-GAAP net income in 2019 was $835 million, or $5.00 per diluted share, compared to $797 million, or $4.75 per diluted share in 2018.
At December 31, 2019, the company had cash and cash equivalents of $332 million and total debt of $3,387 million, resulting in net debt of $3,055 million. This compares to total debt of $3,831 million and net debt of $3,286 million at December 31, 2018. As of December 31, 2019, there was $632 million remaining under the board authorized share repurchase program.
INITIATING 2020 NON-GAAP EXPENSE AND TAX GUIDANCE4
The company is initiating its 2020 non-GAAP operating expense guidance in the range of $1,310 to $1,360 million. Nasdaq expects its 2020 non-GAAP tax rate to be in the range of 25.5% to 27.5%.
BUSINESS HIGHLIGHTS
Market Services (35% of total net revenues) – Net revenues were $225 million in the fourth quarter of 2019, down $24 million, or 10%, when compared to the fourth quarter of 2018, a period where significantly higher volatility drove near record volumes and revenues.
Equity Derivative Trading and Clearing (11% of total net revenues) – Net equity derivative trading and clearing revenues were $73 million in the fourth quarter of 2019, down $9 million from the fourth quarter of 2018. The decrease primarily reflects lower U.S. industry trading volumes.
Cash Equity Trading (10% of total net revenues) – Net cash equity trading revenues were $65 million in the fourth quarter of 2019, down $11 million from the fourth quarter of 2018. Lower industry volumes and lower overall matched market share executed on Nasdaq’s U.S. exchanges were partially offset by a higher net capture rate.
Fixed Income and Commodities Trading and Clearing (3% of total net revenues) – Net fixed income and commodities trading and clearing revenues were $15 million in the fourth quarter of 2019, down $4 million from the fourth quarter of 2018. The decrease in revenues was primarily driven by lower net revenues due to the sale of the core assets of our NFX business and lower volumes in U.S. fixed income products.
Trade Management Services (11% of total net revenues) – Trade management services revenues were $72 million in the fourth quarter of 2019, unchanged compared to the fourth quarter of 2018.
Corporate Services (20% of total net revenues) – Revenues were $129 million in the fourth quarter of 2019, up $6 million, or 5%, compared to the fourth quarter of 2018.
Listing Services (12% of total net revenues) – Listing services revenues were $77 million in the fourth quarter of 2019, up $3 million from the fourth quarter of 2018. The change primarily reflects higher listing revenues due to an increase in the number of listed companies.
Corporate Solutions (8% of total net revenues) – Corporate solutions revenues were $52 million in the fourth quarter of 2019, an increase of $3 million from the fourth quarter of 2018 primarily due to an increase in IR intelligence revenues.
Information Services (30% of total net revenues) – Revenues were $194 million in the fourth quarter of 2019, up $7 million, or 4%, from the fourth quarter of 2018.
Market Data (15% of total net revenues) – Market data revenues were $96 million in the fourth quarter of 2019, down $1 million from the fourth quarter of 2018 due to unfavorable changes in foreign exchange rates.
Index (9% of total net revenues) – Index revenues were $57 million in the fourth quarter of 2019, up $3 million from the fourth quarter of 2018, primarily driven by higher licensing revenue from higher average assets under management (AUM) in exchange traded products (ETPs) linked to Nasdaq indexes.
Investment Data & Analytics (6% of total net revenues) – Investment data & analytics revenues were $41 million in the fourth quarter of 2019, up $5 million from the fourth quarter of 2018, primarily due to organic growth in eVestment.
Market Technology (15% of total net revenues) – Revenues were $98 million in the fourth quarter of 2019, up $22 million, or 29%, from the fourth quarter of 2018. The increase is due to the impact of the acquisition of Cinnober, which added $13 million in revenues, or 17%, as well as organic growth of $9 million, or 12%. The organic growth was primarily driven by an increase in change request revenues and software as a service (SaaS) surveillance revenues and an increase in the size and number of software delivery projects.
CORPORATE HIGHLIGHTS
- Nasdaq continues to see strong client traction in its Market Technology segment. In 2019, Nasdaq signed seven new market infrastructure operator and New Market clients for its core matching, surveillance and post trade systems, as well as 18 new buy-side and sell-side customers. Annualized recurring revenue5, or ARR, totaled $260 million in the fourth quarter of 2019, an increase of 17% year over year. Development and deployment of the next generation Nasdaq Financial Framework solution continues on schedule and the company continued to grow its sell-side, Nasdaq-hosted execution platform offering with four new firms in 2019 (two in the fourth quarter), including three Tier 1 global banks. In the non-financial market area, Nasdaq signed an agreement with Airbus subsidiary Skytra to create a new marketplace for the trading of air travel price derivatives. Nasdaq will deliver a full suite of marketplace systems including our matching engine, market surveillance and pre-trade risk management, as well as a system for the regulatory reporting required under MiFID II. The systems will be hosted in Nasdaq’s data centers and the public cloud, while Nasdaq will provide a fully managed service, including technical operations of all software and infrastructure.
- The Nasdaq Stock Market led U.S. exchanges for IPOs during 2019 with a 78% win rate. In the U.S. market, The Nasdaq Stock Market welcomed 107 new listings, including 50 IPOs, in the fourth quarter of 2019, and welcomed 188 IPOs in 2019. The U.S. IPO win rate totaled 82% during the fourth quarter of 2019. The Nasdaq Stock Market led U.S. exchanges during 2019 with a 78% IPO win rate, including 10 of the top 15 IPOs by capital raised, and with 58% of the IPO issuance raised. During 2019, we had 16 new listings resulting from new companies switching their listings from either the NYSE or IEX to join Nasdaq, and combined with companies who transferred additional components of their listings to Nasdaq during 2019, an aggregate of $230 billion in global equity market capitalization switched to Nasdaq. Nasdaq’s new U.S. corporate bond listing offering won 11 new issues and 37 existing bonds transferred from the NYSE. Nasdaq’s European exchanges added 17 new listings including 12 IPOs during the fourth quarter of 2019, and welcomed 53 new listings including 34 IPOs in 2019.
- Index revenues and ETP assets under management tracking Nasdaq indexes each set a new quarterly record. Overall AUM in ETPs benchmarked to Nasdaq’s proprietary index products totaled $233 billion as of December 31, 2019, an increase of $61 billion compared to December 31, 2018. The December 31, 2019 total AUM included $100 billion, or 43%, tracking smart beta indexes.
- Nasdaq maintained its commitment to sustainability through a number of product announcements and initiatives. In 2019 and early 2020, Nasdaq achieved a number of Environmental, Social and Governance (ESG) milestones for its work with corporate clients as well as within its own operations. These milestones included the launches of the Nasdaq Sustainable Bond Network, a platform for increased transparency in the global sustainable bond markets, and an ESG Advisory Program to help companies analyze, assess and implement ESG programs with the goal of attracting long-term capital. Nasdaq also saw continued growth in the Nasdaq European Sustainable Debt market while delivering further advancements in its European ESG data offering for institutional and retail investors. Nasdaq achieved carbon neutrality across all the company’s operations through the purchase of carbon offsets and renewable energy certificates.
- Nasdaq introduced artificial intelligence capabilities to improve surveillance patterns on the U.S. stock market. Nasdaq, through a collaboration of its Market Technology business and U.S. market surveillance unit, launched the use of artificial intelligence for surveillance patterns on The Nasdaq Stock Market, the world’s largest stock exchange by volume traded. The initiative enhances Nasdaq’s market surveillance functionality to improve detection of malicious activity. Over time, our Market Technology business expects to offer these new detection capabilities for surveillance to its exchange and regulator customers as well as its banks and broker customers.
ABOUT NASDAQ
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, net income attributable to Nasdaq, diluted earnings per share, operating income, and operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.
These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces its usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.
We understand that analysts and investors regularly rely on non-GAAP financial measures, such as non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income and non-GAAP operating expenses to assess operating performance. We use these measures because they highlight trends more clearly in our business that may not otherwise be apparent when relying solely on U.S. GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our ongoing operating performance.
Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenues and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Operating results excluding the impact of foreign currency fluctuations are calculated by translating the current period’s results by the prior period’s exchange rates.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, trading volumes, products and services, ability to transition to new business models, order backlog, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions and other strategic, restructuring, technology, de-leveraging and capital allocation initiatives, including artificial intelligence in market surveillance, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
WEBSITE DISCLOSURE
Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.
MEDIA RELATIONS CONTACT: Allan Schoenberg +1.212.231.5534 |
INVESTOR RELATIONS CONTACT: Ed Ditmire, CFA +1.212.401.8737 |
-NDAQF-
1Constitutes revenues from Market Technology, Information Services and Corporate Services segments.
2Represents revenues less transaction-based expenses.
3Refer to our reconciliations of U.S. GAAP to non-GAAP net income (loss), diluted earnings (loss) per share, operating income and operating expenses, included in the attached schedules.
4 U.S. GAAP operating expense is not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
5Annualized Recurring Revenue (ARR) for a given period is the annualized revenue of active Market Technology support and SaaS subscription contracts. ARR is currently one of our key performance metrics to assess the health and trajectory of our business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
Nasdaq, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income (Loss) | ||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Market Services | $ | 644 | $ | 690 | $ | 740 | $ | 2,639 | $ | 2,709 | ||||||||||
Transaction-based expenses: | ||||||||||||||||||||
Transaction rebates | (315 | ) | (349 | ) | (396 | ) | (1,327 | ) | (1,344 | ) | ||||||||||
Brokerage, clearance and exchange fees | (104 | ) | (115 | ) | (95 | ) | (400 | ) | (407 | ) | ||||||||||
Total Market Services revenues less transaction-based expenses | 225 | 226 | 249 | 912 | 958 | |||||||||||||||
Corporate Services | 129 | 124 | 123 | 496 | 487 | |||||||||||||||
Information Services | 194 | 198 | 187 | 779 | 714 | |||||||||||||||
Market Technology | 98 | 84 | 76 | 338 | 270 | |||||||||||||||
Other Revenues | — | — | 10 | 10 | 97 | |||||||||||||||
Revenues less transaction-based expenses | 646 | 632 | 645 | 2,535 | 2,526 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Compensation and benefits | 189 | 175 | 179 | 707 | 712 | |||||||||||||||
Professional and contract services | 28 | 31 | 39 | 127 | 144 | |||||||||||||||
Computer operations and data communications | 35 | 33 | 33 | 133 | 127 | |||||||||||||||
Occupancy | 25 | 24 | 23 | 97 | 95 | |||||||||||||||
General, administrative and other | 30 | 40 | 46 | 125 | 120 | |||||||||||||||
Marketing and advertising | 10 | 8 | 11 | 39 | 37 | |||||||||||||||
Depreciation and amortization | 47 | 47 | 51 | 190 | 210 | |||||||||||||||
Regulatory | 8 | 8 | 8 | 31 | 32 | |||||||||||||||
Merger and strategic initiatives | 5 | 10 | 14 | 30 | 21 | |||||||||||||||
Restructuring charges | 9 | 30 | — | 39 | — | |||||||||||||||
Total operating expenses | 386 | 406 | 404 | 1,518 | 1,498 | |||||||||||||||
Operating income | 260 | 226 | 241 | 1,017 | 1,028 | |||||||||||||||
Interest income | 2 | 3 | 2 | 10 | 10 | |||||||||||||||
Interest expense | (28 | ) | (29 | ) | (37 | ) | (124 | ) | (150 | ) | ||||||||||
Gain on sale of investment security | — | — | 118 | — | 118 | |||||||||||||||
Net gain on divestiture of businesses | — | — | — | 27 | 33 | |||||||||||||||
Other income | 4 | — | — | 5 | 7 | |||||||||||||||
Net income from unconsolidated investees | 14 | 15 | 4 | 84 | 18 | |||||||||||||||
Income before income taxes | 252 | 215 | 328 | 1,019 | 1,064 | |||||||||||||||
Income tax provision | 50 | 65 | 372 | 245 | 606 | |||||||||||||||
Net income (loss) attributable to Nasdaq | $ | 202 | $ | 150 | $ | (44 | ) | $ | 774 | $ | 458 | |||||||||
Per share information: | ||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.23 | $ | 0.91 | $ | (0.27 | ) | $ | 4.69 | $ | 2.77 | |||||||||
Diluted earnings (loss) per share | $ | 1.21 | $ | 0.90 | $ | (0.27 | ) | $ | 4.63 | $ | 2.73 | |||||||||
Cash dividends declared per common share | $ | 0.47 | $ | 0.47 | $ | 0.44 | $ | 1.85 | $ | 1.70 | ||||||||||
Weighted-average common shares outstanding for earnings (loss) per share: | ||||||||||||||||||||
Basic | 164.5 | 164.3 | 164.5 | 164.9 | 165.3 | |||||||||||||||
Diluted (1) | 166.8 | 167.0 | 164.5 | 167.0 | 167.7 | |||||||||||||||
(1) Due to the net loss for the quarter ended December 31, 2018, the diluted earnings (loss) per share calculation excludes 3.2 million of employee stock awards as they were anti-dilutive. |
Nasdaq, Inc. | ||||||||||||||||||||||
Revenue Detail | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||
MARKET SERVICES REVENUES | ||||||||||||||||||||||
Equity Derivative Trading and Clearing Revenues | $ | 211 | $ | 209 | $ | 228 | $ | 816 | $ | 849 | ||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||
Transaction rebates | (124 | ) | (121 | ) | (136 | ) | (477 | ) | (506 | ) | ||||||||||||
Brokerage, clearance and exchange fees | (14 | ) | (13 | ) | (10 | ) | (47 | ) | (44 | ) | ||||||||||||
Total net equity derivative trading and clearing revenues | 73 | 75 | 82 | 292 | 299 | |||||||||||||||||
Cash Equity Trading Revenues | 345 | 392 | 419 | 1,462 | 1,476 | |||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||
Transaction rebates | (191 | ) | (227 | ) | (259 | ) | (847 | ) | (830 | ) | ||||||||||||
Brokerage, clearance and exchange fees | (89 | ) | (102 | ) | (84 | ) | (352 | ) | (361 | ) | ||||||||||||
Total net cash equity trading revenues | 65 | 63 | 76 | 263 | 285 | |||||||||||||||||
Fixed Income and Commodities Trading and Clearing Revenues | 16 | 17 | 21 | 70 | 92 | |||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||
Transaction rebates | — | (1 | ) | (1 | ) | (3 | ) | (8 | ) | |||||||||||||
Brokerage, clearance and exchange fees | (1 | ) | — | (1 | ) | (1 | ) | (2 | ) | |||||||||||||
Total net fixed income and commodities trading and clearing revenues | 15 | 16 | 19 | 66 | 82 | |||||||||||||||||
Trade Management Services Revenues | 72 | 72 | 72 | 291 | 292 | |||||||||||||||||
Total Net Market Services revenues | 225 | 226 | 249 | 912 | 958 | |||||||||||||||||
CORPORATE SERVICES REVENUES | ||||||||||||||||||||||
Listings Services revenues | 77 | 74 | 74 | 296 | 290 | |||||||||||||||||
Corporate Solutions revenues | 52 | 50 | 49 | 200 | 197 | |||||||||||||||||
Total Corporate Services revenues | 129 | 124 | 123 | 496 | 487 | |||||||||||||||||
INFORMATION SERVICES REVENUES | ||||||||||||||||||||||
Market Data revenues | 96 | 102 | 97 | 398 | 390 | |||||||||||||||||
Index revenues | 57 | 56 | 54 | 223 | 206 | |||||||||||||||||
Investment Data & Analytics revenues | 41 | 40 | 36 | 158 | 118 | |||||||||||||||||
Total Information Services revenues | 194 | 198 | 187 | 779 | 714 | |||||||||||||||||
MARKET TECHNOLOGY REVENUES | 98 | 84 | 76 | 338 | 270 | |||||||||||||||||
OTHER REVENUES | — | — | 10 | 10 | 97 | |||||||||||||||||
REVENUES LESS TRANSACTION – BASED EXPENSES | $ | 646 | $ | 632 | $ | 645 | $ | 2,535 | $ | 2,526 |
Nasdaq, Inc. | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(in millions) | |||||||||
December 31, | December 31, | ||||||||
2019 | 2018 | ||||||||
Assets | (unaudited) | ||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 332 | $ | 545 | |||||
Restricted cash | 30 | 41 | |||||||
Financial investments | 291 | 268 | |||||||
Receivables, net | 422 | 384 | |||||||
Default funds and margin deposits | 2,996 | 4,742 | |||||||
Other current assets | 219 | 390 | |||||||
Total current assets | 4,290 | 6,370 | |||||||
Property and equipment, net | 384 | 376 | |||||||
Goodwill | 6,366 | 6,363 | |||||||
Intangible assets, net | 2,249 | 2,300 | |||||||
Operating lease assets | 346 | — | |||||||
Other non-current assets | 289 | 291 | |||||||
Total assets | $ | 13,924 | $ | 15,700 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 148 | $ | 198 | |||||
Section 31 fees payable to SEC | 132 | 109 | |||||||
Accrued personnel costs | 188 | 199 | |||||||
Deferred revenue | 211 | 194 | |||||||
Other current liabilities | 161 | 253 | |||||||
Default funds and margin deposits | 2,996 | 4,742 | |||||||
Short-term debt | 391 | 875 | |||||||
Total current liabilities | 4,227 | 6,570 | |||||||
Long-term debt | 2,996 | 2,956 | |||||||
Deferred tax liabilities, net | 552 | 501 | |||||||
Operating lease liabilities | 331 | — | |||||||
Other non-current liabilities | 179 | 224 | |||||||
Total liabilities | 8,285 | 10,251 | |||||||
Commitments and contingencies | |||||||||
Equity | |||||||||
Nasdaq stockholders’ equity: | |||||||||
Common stock | 2 | 2 | |||||||
Additional paid-in capital | 2,632 | 2,716 | |||||||
Common stock in treasury, at cost | (336 | ) | (297 | ) | |||||
Accumulated other comprehensive loss | (1,686 | ) | (1,530 | ) | |||||
Retained earnings | 5,027 | 4,558 | |||||||
Total Nasdaq stockholders’ equity | 5,639 | 5,449 | |||||||
Total liabilities and equity | $ | 13,924 | $ | 15,700 |
Nasdaq, Inc. | ||||||||||||||||||||||
Reconciliation of U.S. GAAP Net Income (Loss), Diluted Earnings (Loss) Per Share, Operating Income and | ||||||||||||||||||||||
Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and Operating Expenses | ||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
U.S. GAAP net income (loss) attributable to Nasdaq | $ | 202 | $ | 150 | $ | (44 | ) | $ | 774 | $ | 458 | |||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||
Amortization expense of acquired intangible assets (1) | 25 | 25 | 26 | 101 | 109 | |||||||||||||||||
Merger and strategic initiatives (2) | 5 | 10 | 14 | 30 | 21 | |||||||||||||||||
Restructuring charges (3) | 9 | 30 | — | 39 | — | |||||||||||||||||
Net income from unconsolidated investee (4) | (14 | ) | (15 | ) | (5 | ) | (82 | ) | (16 | ) | ||||||||||||
Net gain on divestiture of businesses (5) | — | — | — | (27 | ) | (33 | ) | |||||||||||||||
Extinguishment of debt (6) | — | — | — | 11 | — | |||||||||||||||||
Clearing default (7) | — | — | 23 | — | 31 | |||||||||||||||||
Provision for notes receivable (8) | — | 20 | — | 20 | — | |||||||||||||||||
Gain on sale of investment security (9) | — | — | (118 | ) | — | (118 | ) | |||||||||||||||
Other (10) | 8 | 4 | 11 | 17 | 17 | |||||||||||||||||
Total non-GAAP adjustments | 33 | 74 | (49 | ) | 109 | 11 | ||||||||||||||||
Non-GAAP adjustment to the income tax provision (11) | (19 | ) | (12 | ) | 15 | (43 | ) | 6 | ||||||||||||||
Reversal of Swedish tax benefits | — | — | — | — | 41 | |||||||||||||||||
Impact of enacted U.S. tax legislation (12) | — | — | 289 | — | 290 | |||||||||||||||||
Excess tax benefits related to employee share-based compensation | (1 | ) | — | (4 | ) | (5 | ) | (9 | ) | |||||||||||||
Total non-GAAP adjustments, net of tax | 13 | 62 | 251 | 61 | 339 | |||||||||||||||||
Non-GAAP net income attributable to Nasdaq | $ | 215 | $ | 212 | $ | 207 | $ | 835 | $ | 797 | ||||||||||||
U.S. GAAP diluted earnings (loss) per share | $ | 1.21 | $ | 0.90 | $ | (0.27 | ) | $ | 4.63 | $ | 2.73 | |||||||||||
Total adjustments from non-GAAP net income above | 0.08 | 0.37 | 1.51 | 0.37 | 2.02 | |||||||||||||||||
Non-GAAP diluted earnings per share | $ | 1.29 | $ | 1.27 | $ | 1.24 | $ | 5.00 | $ | 4.75 | ||||||||||||
Weighted-average diluted common shares outstanding for earnings (loss) per share: | 166.8 | 167.0 | 167.1 | 167.0 | 167.7 | |||||||||||||||||
(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. | ||||||||||||||||||||||
(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs and will vary based on the size and frequency of the activities described above. | ||||||||||||||||||||||
(3) In September 2019, we initiated the transition of certain technology platforms to advance the company’s strategic opportunities as a technology and analytics provider and continue the realignment of certain business areas. Charges associated with this plan represent a fundamental shift in our strategy and technology as well as executive re-alignment and will be excluded for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods. For the three months ended December 31, 2019, we recorded $9 million in charges primarily related to severance and employee-related costs. For the three months ended September 30, 2019, we recorded $30 million in charges primarily related to asset impairment charges mainly related to capitalized software that was retired. | ||||||||||||||||||||||
(4) In the relevant periods, primarily represents net income recognized from our equity interest in OCC. The increase for the year ended December 31, 2019 primarily represents additional income recognized in 2019 due to the timing of information received from the OCC. In February 2019, due to the SEC disapproval of the OCC rule change that established OCC’s 2015 capital plan, OCC suspended customer rebates and dividends to owners. We were not able to determine the impact of the disapproval of the OCC capital plan on OCC’s 2018 net income until March 2019, when OCC’s 2018 financial statements were made available to us. As a result, in March 2019, we recognized an additional $36 million of income relating to our share of OCC’s net income for the year ended December 31, 2018. We also recognized our share of OCC’s net income of $48 million for the year ended December 31, 2019. We will continue to exclude net income related to our share of OCC’s earnings for purposes of calculating non-GAAP measures as our income on this investment will vary significantly compared to prior years. This will provide a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods. | ||||||||||||||||||||||
(5) For the year ended December 31, 2019, represents the pre-tax gain on the sale of the BWise enterprise governance, risk and compliance software platform and for the year ended December 31, 2018, represents the pre-tax gain on the sale of the Public Relations Solutions and Digital Media Services businesses. | ||||||||||||||||||||||
(6) Represents a charge recorded in connection with the early extinguishment of our 5.55% senior unsecured notes, primarily related to a premium paid for early redemption. This charge is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(7) Represents charges associated with the clearing default which occurred in 2018. These charges are recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(8) Represents a provision for notes receivable associated with the funding of technology development for the consolidated audit trail, which is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(9) Represents a pre-tax gain on the sale of our 5.0% ownership interest in LCH Group Holdings Limited for $169 million in cash. | ||||||||||||||||||||||
(10) For the three months and year ended December 31, 2019, other charges included costs for a tax reserve for certain prior year examinations, which is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss) and certain litigation costs which are recorded in professional and contract services expense in the Condensed Consolidated Statements of Income (Loss). For the three months and year ended December 31, 2018, other charges included litigation costs, which are recorded in professional and contract services expense in our Condensed Consolidated Statements of Income (Loss), as well as certain charges related to a sales and use tax audit and VAT reserves which are recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(11) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment. In addition, for the three months and year ended December 31, 2019, a tax benefit of $10 million was recorded, primarily related to an adjustment to the 2018 federal and state tax returns. The year ended December 31, 2019 also includes a tax benefit of $10 million related to capital distributions from the OCC recorded in March 2019. See footnote 4 above for further discussion of our OCC investment. In certain periods the adjustment may include the recognition of previously unrecognized tax benefits associated with positions taken in prior years. | ||||||||||||||||||||||
(12) Represents the impact of enacted U.S. tax legislation related to the Tax Cuts and Jobs Act which was enacted on December 22, 2017. For the three months and year ended December 31, 2018, we recorded an increase to tax expense of $289 million and $290 million, respectively and a reduction to a deferred tax asset related to foreign currency translation. | ||||||||||||||||||||||
Nasdaq, Inc. | ||||||||||||||||||||||
Reconciliation of U.S. GAAP Net Income (Loss), Diluted Earnings (Loss) Per Share, Operating Income and | ||||||||||||||||||||||
Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and Operating Expenses | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
U.S. GAAP operating income | $ | 260 | $ | 226 | $ | 241 | 1,017 | 1,028 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||
Amortization expense of acquired intangible assets (1) | 25 | 25 | 26 | 101 | 109 | |||||||||||||||||
Merger and strategic initiatives (2) | 5 | 10 | 14 | 30 | 21 | |||||||||||||||||
Restructuring charges (3) | 9 | 30 | — | 39 | — | |||||||||||||||||
Extinguishment of debt (4) | — | — | — | 11 | — | |||||||||||||||||
Clearing default (5) | — | — | 23 | — | 31 | |||||||||||||||||
Provision for notes receivable (6) | — | 20 | — | 20 | — | |||||||||||||||||
Other (7) | 12 | 4 | 11 | 22 | 17 | |||||||||||||||||
Total non-GAAP adjustments | 51 | 89 | 74 | 223 | 178 | |||||||||||||||||
Non-GAAP operating income | $ | 311 | $ | 315 | $ | 315 | $ | 1,240 | $ | 1,206 | ||||||||||||
Revenues less transaction-based expenses | $ | 646 | $ | 632 | $ | 645 | 2,535 | 2,526 | ||||||||||||||
U.S. GAAP Operating margin (8) | 40% | 36% | 37% | 40% | 41% | |||||||||||||||||
Non-GAAP operating margin (9) | 48% | 50% | 49% | 49% | 48% | |||||||||||||||||
(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. | ||||||||||||||||||||||
(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs and will vary based on the size and frequency of the activities described above. | ||||||||||||||||||||||
(3) In September 2019, we initiated the transition of certain technology platforms to advance the company’s strategic opportunities as a technology and analytics provider and continue the realignment of certain business areas. Charges associated with this plan represent a fundamental shift in our strategy and technology as well as executive re-alignment and will be excluded for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods. For the three months ended December 31, 2019, we recorded $9 million in charges primarily related to severance and employee-related costs. For the three months ended September 30, 2019, we recorded $30 million in charges primarily related to asset impairment charges mainly related to capitalized software that was retired. | ||||||||||||||||||||||
(4) Represents a charge recorded in connection with the early extinguishment of our 5.55% senior unsecured notes, primarily related to a premium paid for early redemption. This charge is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(5) Represents charges associated with the clearing default which occurred in 2018. These charges are recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(6) Represents a provision for notes receivable associated with the funding of technology development for the consolidated audit trail, which is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(7) For the three months and year ended December 31, 2019, other charges included costs for a tax reserve for certain prior year examinations, which is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss) and certain litigation costs which are recorded in professional and contract services expense in the Condensed Consolidated Statements of Income (Loss). For the three months and year ended December 31, 2018, other charges included litigation costs, which are recorded in professional and contract services expense in our Condensed Consolidated Statements of Income (Loss), as well as certain charges related to a sales and use tax audit and VAT reserves which are recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(8) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses. | ||||||||||||||||||||||
(9) Non-GAAP operating margin equals non-GAAP operating income divided by revenues less transaction-based expenses. | ||||||||||||||||||||||
Nasdaq, Inc. | ||||||||||||||||||||||
Reconciliation of U.S. GAAP Net Income (Loss), Diluted Earnings (Loss) Per Share, Operating Income and | ||||||||||||||||||||||
Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and Operating Expenses | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
U.S. GAAP operating expenses | $ | 386 | $ | 406 | $ | 404 | 1,518 | 1,498 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||
Amortization expense of acquired intangible assets (1) | (25 | ) | (25 | ) | (26 | ) | (101 | ) | (109 | ) | ||||||||||||
Merger and strategic initiatives (2) | (5 | ) | (10 | ) | (14 | ) | (30 | ) | (21 | ) | ||||||||||||
Restructuring charges (3) | (9 | ) | (30 | ) | — | (39 | ) | — | ||||||||||||||
Extinguishment of debt (4) | — | — | — | (11 | ) | — | ||||||||||||||||
Clearing default (5) | — | — | (23 | ) | — | (31 | ) | |||||||||||||||
Provision for notes receivable (6) | — | (20 | ) | — | (20 | ) | — | |||||||||||||||
Other (7) | (12 | ) | (4 | ) | (11 | ) | (22 | ) | (17 | ) | ||||||||||||
Total non-GAAP adjustments | (51 | ) | (89 | ) | (74 | ) | (223 | ) | (178 | ) | ||||||||||||
Non-GAAP operating expenses | $ | 335 | $ | 317 | $ | 330 | $ | 1,295 | $ | 1,320 | ||||||||||||
(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. | ||||||||||||||||||||||
(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs and will vary based on the size and frequency of the activities described above. | ||||||||||||||||||||||
(3) In September 2019, we initiated the transition of certain technology platforms to advance the company’s strategic opportunities as a technology and analytics provider and continue the realignment of certain business areas. Charges associated with this plan represent a fundamental shift in our strategy and technology as well as executive re-alignment and will be excluded for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods. For the three months ended December 31, 2019, we recorded $9 million in charges primarily related to severance and employee-related costs. For the three months ended September 30, 2019, we recorded $30 million in charges primarily related to asset impairment charges mainly related to capitalized software that was retired. | ||||||||||||||||||||||
(4) Represents a charge recorded in connection with the early extinguishment of our 5.55% senior unsecured notes, primarily related to a premium paid for early redemption. This charge is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(5) Represents charges associated with the clearing default which occurred in 2018. These charges are recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(6) Represents a provision for notes receivable associated with the funding of technology development for the consolidated audit trail, which is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). | ||||||||||||||||||||||
(7) For the three months and year ended December 31, 2019, other charges included costs for a tax reserve for certain prior year examinations, which is recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss) and certain litigation costs which are recorded in professional and contract services expense in the Condensed Consolidated Statements of Income (Loss). For the three months and year ended December 31, 2018, other charges included litigation costs, which are recorded in professional and contract services expense in our Condensed Consolidated Statements of Income (Loss), as well as certain charges related to a sales and use tax audit and VAT reserves which are recorded in general, administrative and other expense in our Condensed Consolidated Statements of Income (Loss). |
Nasdaq, Inc. | |||||||||||||
Quarterly Key Drivers Detail | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, | September 30, | December 31, | |||||||||||
2019 | 2019 | 2018 | |||||||||||
Market Services | |||||||||||||
Equity Derivative Trading and Clearing | |||||||||||||
U.S. equity options | |||||||||||||
Total industry average daily volume (in millions) | 17.7 | 17.8 | 19.9 | ||||||||||
Nasdaq PHLX matched market share | 15.9 | % | 15.5 | % | 15.2 | % | |||||||
The Nasdaq Options Market matched market share | 8.4 | % | 8.8 | % | 9.6 | % | |||||||
Nasdaq BX Options matched market share | 0.2 | % | 0.2 | % | 0.3 | % | |||||||
Nasdaq ISE Options matched market share | 9.1 | % | 9.0 | % | 9.1 | % | |||||||
Nasdaq GEMX Options matched market share | 4.2 | % | 4.4 | % | 4.1 | % | |||||||
Nasdaq MRX Options matched market share | 0.4 | % | 0.3 | % | 0.1 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 38.2 | % | 38.2 | % | 38.4 | % | |||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||||
Total average daily volume options and futures contracts (1) | 401,078 | 329,409 | 365,029 | ||||||||||
Cash Equity Trading | |||||||||||||
Total U.S.-listed securities | |||||||||||||
Total industry average daily share volume (in billions) | 6.8 | 6.9 | 8.5 | ||||||||||
Matched share volume (in billions) | 79.5 | 90.3 | 108.3 | ||||||||||
The Nasdaq Stock Market matched market share | 16.4 | % | 18.0 | % | 17.3 | % | |||||||
Nasdaq BX matched market share | 1.4 | % | 1.6 | % | 2.2 | % | |||||||
Nasdaq PSX matched market share | 0.6 | % | 0.7 | % | 0.8 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 18.4 | % | 20.3 | % | 20.3 | % | |||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 30.2 | % | 29.1 | % | 28.2 | % | |||||||
Total market share(2) | 48.6 | % | 49.4 | % | 48.5 | % | |||||||
Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 625,833 | 581,260 | 648,418 | ||||||||||
Total average daily value of shares traded (in billions) | $ | 4.5 | $ | 4.1 | $ | 5.5 | |||||||
Total market share executed on Nasdaq’s exchanges | 73.9 | % | 72.7 | % | 65.9 | % | |||||||
Fixed Income and Commodities Trading and Clearing | |||||||||||||
Fixed Income | |||||||||||||
U.S. fixed income volume (in billions traded) | $ | 1,796 | $ | 3,033 | $ | 3,499 | |||||||
Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts | 105,434 | 104,092 | 151,545 | ||||||||||
Commodities | |||||||||||||
Power contracts cleared (TWh) (3) | 229 | 194 | 214 | ||||||||||
Corporate Services | |||||||||||||
Initial public offerings | |||||||||||||
The Nasdaq Stock Market | 50 | 41 | 41 | ||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 12 | 4 | 15 | ||||||||||
Total new listings | |||||||||||||
The Nasdaq Stock Market(4) | 107 | 66 | 67 | ||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(5) | 17 | 8 | 22 | ||||||||||
Number of listed companies | |||||||||||||
The Nasdaq Stock Market(6) | 3,140 | 3,091 | 3,058 | ||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(7) | 1,040 | 1,028 | 1,019 | ||||||||||
Information Services | |||||||||||||
Number of licensed exchange traded products (ETPs) | 332 | 325 | 365 | ||||||||||
ETP assets under management (AUM) tracking Nasdaq indexes (in billions) | $ | 233 | $ | 207 | $ | 172 | |||||||
Market Technology | |||||||||||||
Order intake (in millions)(8) | $ | 204 | $ | 62 | $ | 74 | |||||||
Annualized recurring revenues (in millions)(9) | $ | 260 | $ | 255 | $ | 222 | |||||||
(1) Includes Finnish option contracts traded on Eurex Group. | |||||||||||||
(2) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility. | |||||||||||||
(3) Transactions executed on Nasdaq Commodities or OTC and reported for clearing to Nasdaq Commodities measured by Terawatt hours (TWh). | |||||||||||||
(4) New listings include IPOs, including those completed on a best efforts basis, issuers that switched from other listing venues,closed-end funds and separately listed ETPs. | |||||||||||||
(5) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North. | |||||||||||||
(6) Number of total listings on The Nasdaq Stock Market at period end, including 412 ETPs as of December 31, 2019, 382 ETPs as of September 30, 2019, and 392 ETPs as of December 31, 2018. | |||||||||||||
(7) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North at period end. | |||||||||||||
(8) Total contract value of orders signed during the period. | |||||||||||||
(9) Annualized Recurring Revenue, or ARR, for a given period is the annualized revenue of Market Technology support and SaaS subscription contracts. ARR is currently one of our key performance metrics to assess the health and trajectory of our business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast and the active contracts during the reporting period used in calculating ARR may or may not be extended or renewed by our customers. |
Artificial Intelligence
atNorth Shortlisted for Datacloud Global Awards, The Energy Awards and The Women in Green Business Awards
The leading Nordic data center business achieves multiple new accolades.
REYKJAVÍK, Iceland, May 10, 2024 /PRNewswire/ — atNorth, the leading Nordic colocation, high-performance computing, and artificial intelligence service provider, today announced widespread industry recognition including shortlisting’s in the `Excellence in Data Centre Europe Award 2024′ category at the Datacloud Global Awards and the `Energy Efficient Partnership of the Year’ category at the Energy Awards.
The Datacloud Global Awards celebrate excellence in the data center and cloud industry, recognizing outstanding achievements, innovation, and leadership across various categories. From pioneering technology solutions to sustainable practices, these awards highlight the trailblazers and visionaries driving the digital transformation landscape forward.
atNorth’s continuous commitment to developing the most advantageous solutions for its clients has led the business to be recognized for its efforts in energy efficiency, data center excellence and as a leader in the data center industry.
Additionally, atNorth’s CFO & Deputy CEO, Eva Sóley Guðbjörnsdóttir has been shortlisted in the `Diversity and Inclusion Champion of the Year’ category at the Women in Green Business Awards, illustrating the commendable ethos of atNorth’s business as a whole, as it champions fairness and the greater good – both internally and at the core of its service provision.
“We are delighted to be acknowledged in a variety of categories across multiple awards,” says Eva Sóley Guðbjörnsdóttir, CFO & Deputy CEO, at atNorth. “As we remain committed to our vision of `more compute for a better world’, this recognition inspires us to continue to advocate for best practice within our business and the industry as a whole.”
The news follows atNorth’s recognition in TechRound’s Sustainability60 campaign, at the UK Green Business Awards and the Tech Capital Awards. The business has also recently announced Anna Kristín Pálsdóttir as Chief Development Officer and Jörgen Larsson as Director of Hyperscale Operations as the business continues to scale to meet the increasing demand for its services.
About atNorth
atNorth is a leading Nordic data center services company that offers sustainable, cost-effective, scalable colocation and high-performance computing services trusted by industry-leading organizations. The business acquired leading High-Performance Computing (HPC) provider, Gompute, in 2023 enabling a compelling full stack offering tailored to AI and other critical high-performance workloads.
With sustainability at its core, atNorth’s data centers run on renewable energy resources and support circular economy principles. All atNorth sites leverage innovative design, power efficiency, and intelligent operations to provide long-term infrastructure and flexible colocation deployments. The tailor-made solutions enable businesses to calculate, simulate, train and visualize data workloads in an efficient, cost-optimized way.
atNorth is headquartered in Reykjavik, Iceland and operates seven data centers in strategic locations across the Nordics, with additional sites to open in Helsinki, Finland and in Denmark in Q4 2024, as well as its tenth site ready for operation in Kouvola, Finland in 2025.
For more information, visit atNorth.com or follow atNorth on LinkedIn or Facebook.
Press Contact:Caroline BruntonKite Hill PR for atNorth+44 (0) 7796 274 [email protected]
This information was brought to you by Cision http://news.cision.com.
https://news.cision.com/atnorth/r/atnorth-shortlisted-for-datacloud-global-awards–the-energy-awards-and-the-women-in-green-business-a,c3976912
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Artificial Intelligence
ProofID wins Judges’ Award for Global Ambition at the 2024 Northern Tech Awards
MANCHESTER, England, May 10, 2024 /PRNewswire/ — UK-headquartered, global Identity and Access Management (IAM) specialist, ProofID has won the Judge’s Award for Global Ambition at the Northern Tech Awards held at Manchester Cathedral. The company won the award in recognition of its expansion in the USA following the successful acquisitions of Regatta Solutions an Austin, Texas based Identity Governance and Administration (IGA) integrator and PEGRight a Colorado Springs, Colorado based IAM integrator.
These two acquisitions created a combined business which leads the field as a provider of enterprise identity solutions and global identity managed services across Europe and North America. The awards, organised by GP Bullhound, are a demonstration of the spirit of innovation, resilience, and growth that defines the Northern tech ecosystem.
Tom Eggleston, CEO of ProofID said: “ProofID has always embraced its northern roots, but it’s been an exciting road.”
“Our journey to the international stage continues and reflects not only our ambition to grow via acquisition but also our ability to adapt, innovate and thrive in other territories. It’s truly wonderful for our work to be recognised in this way.”
In 2022, Maven invested £15 million through the Maven UK Regional Buyout Fund to support ProofID’s growth and strategic expansion. Since then, the company has continued to develop its partnerships with IAM vendors, offering broader solutions and enhancing its market position.
The award, accepted by Peter Dolan, CFO of ProofID, is held to showcase leading tech businesses in the North, fuelling growth in its powerful tech economy. The eleventh edition of the Northern Tech Awards ceremony, brought together 250 CEOs, entrepreneurs, and business leaders from across the digital economy, celebrating innovation and excellence in the North of England and Scotland.
Javed Huq, Managing Director of sponsor, GP Bullhound said: “Congratulations to all the winners of the 2024 Northern Tech Awards.
“Their success is a testament to the remarkable determination and entrepreneurship, which have enabled their businesses to thrive in a challenging market landscape.
“We are immensely proud of the dedication and innovation within the Northern tech ecosystem and believe it is important to celebrate these achievements at tonight’s awards. We are honoured to champion these leading tech businesses and look forward to their continued growth and contribution to the UK economy.”
About ProofID
ProofID is a global identity security partner, integrator and service provider. As a proven identity specialist, ProofID is committed to delivering pain-free, secure and seamless digital user experiences however complex the project. Trusted by Tier 1 enterprises and mid-market businesses around the world to design, deliver and manage IAM and IGA services. ProofID has successfully deployed industry leading technologies into all market sectors with dynamic workforce needs and seamless customer engagements. ProofID’s highly skilled team has been awarded the highest technical accreditations by all their chosen partners including Ping Identity, earning Global Delivery Partner of the Year Award for 6 consecutive years and SailPoint, achieving delivery Admiral status. For more information visit www.ProofID.com.
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Artificial Intelligence
Northern Data Group’s Peak Mining announces new partnership for 28MW of mining, powered by 100% renewable energy
28MW of miners delivering 1.3 EH/s, strategically located in Paraguay2,860 units of MicroBT’s M63-series liquid-cooled WhatsMiners to be installedPower rate of sub $0.04/kWh, generated by 100% renewable hydropowerFRANKFURT, Germany , May 10, 2024 /PRNewswire/ — Northern Data Group’s Peak Mining today announces a new partnership with Penguin Infrastructure Holding (“Penguin”) for 28MW of mining capacity. This project represents a significant next step in Northern Data Group’s geographical expansion and enables Peak Mining to increase its hashrate, powered by 100% renewable energy.
The hardware will be energized in H2 2024 and marks Peak Mining’s first step into South America. 2,860 units of MicroBT’s M63-series liquid-cooled WhatsMiners will be installed at the site. The hardware will generate 1.3 EH/s, contributing to Peak Mining’s planned growth to 7.9 EH/s this year.
The site in Paraguay is 100% powered by renewable hydropower harnessed from the 14 GW Itaipu Dam, it is the world’s third-largest hydroelectric dam. The site will therefore benefit from the availability of clean energy.
This expansion into South America follows Peak Mining’s recent purchase of a 300MW mining data center site in Corpus Christi, Texas, which will power around 4.2 EH/s of MicroBT’s miners as well as the construction of a 30MW facility in Grand Forks, North Dakota, which will support approximately 1.1 EH/s of the miners.
This selection of sites underscores Northern Data Group’s commitment to meet the demands of the industry as efficiently as possible. Throughout 2024, Northern Data Group will be rapidly expanding its HPC footprint.
Aroosh Thillainathan, Northern Data Group’s Chief Executive Officer, commented:
“This partnership is significant to Northern Data Group as we continue to execute on our investment strategy and solidify our position within the global High Performance Computing market, and I’m especially pleased to be working with Penguin, given the team’s impressive sustainability standards at this site. It is Peak Mining’s first expansion into South America and is another milestone for the company as it continues to scale its international Bitcoin mining capabilities.”
Niek Beudeker, Managing Director, Peak Mining, commented:
“I’m pleased to partner with Penguin to expand our mining capacity to Paraguay. The Penguin team has done a tremendous job in constructing the site and building a strong local team. This agreement, structured as a partnership, will allow for better alignment of both parties than with a standard hosting arrangement. The partnership demonstrates our commitment to leveraging 100% clean energy to meet growing industry demand, efficiently”.
Björn Schmidtke, CEO at Penguin Group, commented:
“This strategic alliance with Northern Data Group strengthens our position as a leader in hosting next-generation High Performance Computing and also allows us to strengthen our capabilities and expand our offerings in cutting-edge areas such as AI compute. We are committed to advancing in this constantly accelerating world, which demands more high-quality services to keep evolving.”
About Peak Mining
Peak Mining, part of the Northern Data Group, is powering the future of the Bitcoin network. We deliver industry-leading operating and energy efficiency in Bitcoin mining through the latest hardware alongside innovative technology and HPC infrastructure. With our heritage dating back to 2013, we’ve been innovating for over a decade and have been at the forefront of the industry ever since. Our high-quality infrastructure is purpose-built to secure the Bitcoin network, and we’re driven to continuously find new efficiencies driving value for our investors. We’re delivering long term value in more responsible ways.
About Penguin
Penguin Group is at the forefront of HPC and cloud services powered by fully renewable hydro power in South America. Its core value is the mission to Transform Energy into Human Potential. This mission is achieved through Penguin Academy, a revolutionary education concept where students ‘learn by doing’ and has already trained thousands of young people to become the next generation of tech talent. Penguin aims to transform Paraguay into the Technological Hub of South America and expand their concept and mission globally.
About Northern Data Group
Northern Data Group (ETR: NB2) is a leading provider of High Performance Computing (HPC) solutions, utilizing GPU- and ASIC-technology. Our flexible compute power fuels innovation in our three core business platforms: Taiga Cloud, Ardent Data Centers, and Peak Mining. Through our HPC solutions, we pioneer ambitious computing innovation that drives progress in the AI, ML and Generative AI industries. Our close collaboration with industry-leading manufacturers including Gigabyte, AMD, and NVIDIA is fundamental to the acceleration of innovation across sectors including life sciences, financial services, and energy.
View original content:https://www.prnewswire.co.uk/news-releases/northern-data-groups-peak-mining-announces-new-partnership-for-28mw-of-mining-powered-by-100-renewable-energy-302141597.html
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