Fintech
Nasdaq Earnings Beat Estimates as Fintech Sales Skyrocket
July 25 (Reuters) – The Nasdaq (NDAQ.O) beat estimates for second-quarter profit on Thursday, driven mainly by strong demand for its products that help traders overcome compliance requirements and protect themselves from financial crime, sending its shares up about 4 percent in early trading.
To create a more stable and sustainable source of revenue, the transatlantic exchange operator has expanded beyond trading and listing and strengthened its financial technology unit.
The unit’s revenue increased nearly 79% to $420 million in the second quarter, while revenue from its indexing business jumped 29% to $167 million.
According to LSEG data, net revenue increased 25% to $1.16 billion, compared to the average estimate of $1.13 billion.
The company’s adjusted earnings of 69 cents per share also beat analysts’ expectations of 64 cents.
The resilience of the economy has also led to a surge in new listings on U.S. stock exchanges, after a slowdown that lasted nearly two years.
In the second quarter ended June 30, 84 companies listed their shares on the Nasdaq, up from 62 a year earlier.
Our current U.S. IPO pipeline suggests that stronger momentum is likely to emerge starting in the first half of 2025, Nasdaq Chairman and CEO Adena Friedman said on a conference call with analysts.
U.S. equity paired-stock volumes jumped to $119.3 billion in the second quarter from $113.7 billion a year earlier. U.S. equity options volumes also jumped to 42.1 million contracts from 39.2 million contracts.
Reporting by Jaiveer Singh Shekhawat in Bangalore; Editing by Shinjini Ganguli and Saumyadeb Chakrabarty
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