NEW YORK – Nasdaq Inc. (NASDAQ:NDAQ) reported its financial results for the first quarter of 2024, showing a 22% increase in net income 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 $0.65 estimates. Despite the revenue growth, the stock saw a slight drop of 0.8% following the announcement, attributed to weaker-than-expected results.
Revenue growth was driven by a 35% increase in Solutions segment revenue, with organic growth of 11%. The fintech sector saw a significant 71% increase in revenue over the previous year. Index revenue also increased 53%, and exchange-traded products (ETP) assets under management (AUM) surpassed $500 billion during the quarter.
However, GAAP diluted earnings per share decreased 34% and adjusted diluted earnings per share decreased 9%, although there was an organic increase of 6%.
Adena Friedman, president and CEO of Nasdaq, highlighted the company's double-digit revenue growth and the strength of its performance in indexes and financial technology. She expressed confidence in the company's strategic priorities and its positioning for future growth. Chief Financial Officer 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 response was muted due to the earnings per share (EPS) miss, and the stock fell slightly after the earnings release. The company's performance reflects the challenges of keeping earnings growth in line with revenue increases.
Nasdaq did not provide specific guidance for the upcoming quarter or fiscal year in the news release. As such, there is no comparison available between the company's future prospects and analyst consensus estimates. However, management's comments suggest an optimistic view of the company's trajectory for the remainder of the year.
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