Revenue from its financial technology unit soared nearly 79 per cent to US$420 million in the second quarter
Nasdaq beat estimates for second-quarter profit on Thursday (Jul 25), driven mainly by strong demand for its products that help traders navigate compliance requirements and safeguard against financial crimes, sending its shares up about 4 per cent in early trading.
To create a more steady and sustainable source of revenue, the transatlantic exchange operator has expanded beyond trading and listings and bolstered its financial technology unit.
Revenue from the unit soared nearly 79 per cent to US$420 million in the second quarter, while that from its index business jumped 29 per cent to US$167 million.
Net revenue climbed 25 per cent to US$1.16 billion, compared with analysts’ average estimate of US$1.13 billion, according to LSEG data.
The company’s adjusted profit of 69 US cents per share also beat analysts’ expectations of 64 US cents.
A resilient economy has also prompted a surge in new listings on US exchanges after a slowdown that lasted nearly two years.
A total of 84 companies listed its shares on Nasdaq in the second quarter ended June 30 compared with 62 from a year ago.
Our current US IPO pipeline indicates a stronger momentum is likely to manifest starting in the first half of 2025, Adena Friedman, Nasdaq chair and CEO, said on an analyst call.
US equity matched shares volumes jumped to 119.3 billion in the second quarter from 113.7 billion a year earlier. US equity options volumes also rose to 42.1 million contracts from 39.2 million contracts. REUTERS
