Nasdaq Reports Strong Fourth Quarter and Provides Financial Outlook for 2023
Key Earnings Highlights
- Total net revenues of $940 million, an increase of 5% year-over-year
- Diluted earnings per share (EPS) of $2.31, an increase of 14% year-over-year
- Strong growth in Solutions and Market Services segments, offset by a decline in Information Services
Corporate Restructuring and Strategic Initiatives
Nasdaq implemented a new corporate structure during the fourth quarter of 2022 to enhance its strategic focus. The restructuring involves:
- Creation of three business segments: Solutions, Market Services, and Information Services
- Centralization of key functions such as technology, data, and operations
- Appointment of new leadership team to drive growth and innovation
Segment Performance
Solutions
Solutions revenues increased 32% year-over-year, driven by strong demand for its data and analytics products and services. Organic growth, excluding acquisitions, was 9%.
Market Services
Market Services net revenues increased 1% year-over-year, remaining relatively flat organically. Growth in post-trade services was offset by a decline in trading revenues.
Information Services
Information Services revenues declined 11% year-over-year due to lower demand for its traditional data products.
Financial Outlook for 2023
Nasdaq provided the following financial outlook for 2023:
- Total revenue growth of 4-6%
- Diluted EPS growth of 7-9%
- Capital expenditures of approximately $300 million
Conclusion
Nasdaq's strong fourth quarter performance and positive financial outlook for 2023 demonstrate the company's continued commitment to innovation and growth. The company's new corporate structure and strategic initiatives position it well to capitalize on emerging opportunities in the financial technology sector.
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