Nasdaq profit beats as market volatility bolsters trading
The company's net revenue, excluding transaction-based expenses, rose 2% to $914M
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Nasdaq Inc's first-quarter profit beat Wall Street estimates on Wednesday as increased market volatility boosted trading and helped mitigate a hit to the indexing business of the Transatlantic-exchange operator.
Trading volumes rose as investors rejigged their portfolios in response to slowdown worries due to a sharp rise in interest rates, persistently high inflation and the banking crisis.
Nasdaq's net trading services revenue rose 1% to $267 million, helped by strong growth in North America that offset the decline in European trading.
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE) in New York City. (Photo by Drew Angerer/Getty Images / Getty Images)
Revenue from Nasdaq's indexes, which are widely referenced by exchange-traded products and provide the company with licensing fees, fell 9.8% to $110 million.
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Excluding one-time items, Nasdaq earned 69 cents per share, beating analysts' average estimate of 66 cents, according to Refinitiv data.
The New York-based company had in the last quarter reorganized its corporate structure into three divisions — market platforms, capital access platforms and anti-financial crime.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NDX | NO DATA AVAILABLE | - | - | - |
Revenue from its anti-financial crime unit, that offers solutions to detect financial frauds, jumped to $84 million from $72 million a year earlier.
Nasdaq's main exchange hosted just 40 initial public offerings (IPOs) in the first quarter, compared with 70 a year ago as privately held companies put off their debuts amid increased market volatility and a surge in borrowing costs.
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The company's net revenue, excluding transaction-based expenses, rose 2% to $914 million.