Nasdaq, Inc. has reported impressive financial results for both the fourth quarter of 2023 and the entire year, demonstrating strong growth and resilience in the face of market challenges.
Nasdaq's Strong Fiscal Performance and Fourth Quarter Surge
In 2023, Nasdaq's net revenues surged to $3.9 billion, marking a substantial increase of 9% over the previous year, with organic growth reaching 5%. Notably, the fourth quarter of 2023 witnessed a remarkable jump of 23% in net revenues compared to the same period in 2022, totaling $1.1 billion.
Key drivers of Nasdaq's revenue growth included a robust performance in its Solutions segment, which saw revenues increase 13% annually, with organic growth hitting 7%. The fourth quarter had an even more impressive surge in solutions revenues, soaring 32%, with organic growth at 9%.
Adena Friedman, the Chair and CEO, said: “We delivered another strong year of operating performance in a dynamic economic and capital markets backdrop. We executed well across our business in 2023, maintaining our listings leadership in the U.S., achieving a breakthrough year for Verafin in our strategy to move upmarket, and introducing new innovations across our products and services."
"We successfully completed our acquisition of Adenza, bolstering our suite of mission-critical technology solutions, and accelerating our strategic vision of being the trusted fabric of the world's financial system.”
Annualized SaaS Revenues Climb 26% to Bolster ARR
Nasdaq's Annualized Recurring Revenue (ARR) experienced a notable uptick, reaching $2.6 billion, signifying a remarkable increase of 29% compared to the fourth quarter of 2022, with organic growth standing at 6%. Annualized SaaS revenues also saw substantial growth, climbing 26%, or 12% organically, representing a significant portion of Nasdaq's ARR.
Sarah Youngwood, the Executive Vice President and CFO, said: “I am excited to join Nasdaq at such a transformational time for the firm. Despite an uncertain environment, we delivered solid financial performance and strong cash flow generation. With our acquisition of Adenza now closed, we are focused on achieving our deal-related financial goals including our cross-sell and synergy targets as well as debt paydown.”
