Nasdaq (NDAQ) Q4 2023 earnings summary

Executive summary

• FY23 net revenue was $3.895B, up 9% reported and 5% organically; 4Q23 revenue was $1.117B, up 23% reported and 7% organically.

• Solutions growth and the Adenza acquisition supported results; ARR reached $2.585B, up 29.2% reported and 5.8% organically.

• Non-GAAP diluted EPS increased 6% for FY23 and 13% in 4Q, while GAAP diluted EPS declined 8% and 25%, respectively.

Financial highlights

• FY23 net revenue increased $313M: organic growth added $178M, acquisitions and divestitures added a net $141M, including $149M from Adenza.

• 4Q23 net revenue increased $211M to $1.117B; organic growth added $59M, acquisitions and divestitures added a net $148M, and FX added $4M.

• FY23 non-GAAP net income was $1.433B and diluted EPS was $2.82, versus $1.324B and $2.66 in 2022; 4Q23 non-GAAP net income was $395M and diluted EPS was $0.72.

• FY23 non-GAAP operating income was $2.065B, up 11%; operating margin was 53%, or 52% excluding Adenza.

Outlook and guidance

• 2024 non-GAAP operating expense guidance is $2.105B–$2.185B; the midpoint implies 5% pro forma growth, including a full year of Adenza and in-year net synergies, with organic growth just under 4.5%.

• 2024 non-GAAP tax-rate guidance is 24.5%–26.5%.

• Priorities include Adenza integration, cross-sell and synergy targets, debt paydown, client engagement, and responsible AI implementation.