Nasdaq has outperformed revenue expectations for the first quarter due to robust demand for its financial technology products utilized by traders and investors navigating the capital markets. In the first quarter of 2024, Nasdaq’s net revenues increased 22 percent to $1.12 billion, according to London Stock Exchange Group (LSEG) data. Meanwhile, revenues from its financial technology (fintech) unit surged 71 percent to $392 million. Moreover, Nasdaq’s revenues from its index business increased by 53 percent to $168 million.
Expanded offerings propel growth
Nasdaq has strategically expanded its business beyond traditional trading and listing services, aiming to establish a more stable and sustainable revenue stream. By offering products focusing on anti-financial crime and compliance, Nasdaq has diversified its portfolio to adapt to evolving market dynamics.
Despite the impressive revenue growth, Nasdaq’s adjusted profit of 63 cents per share in the first quarter fell short of analysts’ expectations of 65 cents. However, the company’s focus on developing innovative products and solutions helped mitigate the impact of reduced trading activity in U.S. equities.
Read: China’s state fund invests over $41 billion into stock market in Q1: Report
New listings and market performance
The first quarter witnessed a deceleration in trading activity in U.S. equities, with matched share volumes declining to 116.7 billion from 121.8 billion a year earlier. Similarly, U.S. equity options volumes fell to 773 million contracts from 811 million contracts.
Despite the slowdown in trading activity, Nasdaq continued to attract significant listings, including notable names like Astera Labs and Kyverna Therapeutics. However, the total number of new listings on the Nasdaq Stock Market slightly decreased to 79 compared to 81 during Q1 on 2023. Despite these fluctuations, Nasdaq’s shares have maintained a steady performance, with a 6 percent increase year-to-date, aligning with gains in the benchmark S&P 500 index.
