Nasdaq revenue beats estimates on strong demand for funding merchandise

The Nasdaq brand is displayed on the Nasdaq Market website in New York September 2, 2015. REUTERS/Brendan McDermid

Oct 20 (Reuters) – Nasdaq Inc (NDAQ.O) on Wednesday reported third-quarter earnings above Wall Avenue estimates, helped by sturdy demand for its expertise and investment-related merchandise, together with a soar in preliminary public choices on its exchanges.

Nasdaq reported adjusted revenue of $1.78 per share for the quarter, 6 cents above analysts’ consensus estimate, in accordance with IBES knowledge from Refinitiv.

Whereas the trans-Atlantic trade operator is greatest identified for its bourses, Nasdaq has made a giant push into the anti-financial crimes software program sector, having accomplished its $2.75 billion acquisition of Verafin in February.

Nasdaq counts round 2,000 U.S. and Canadian banks as purchasers and sees demand within the anti-financial crimes area rising together with new applied sciences like cryptocurrencies, Chief Govt Officer Adena Friedman mentioned on a name with analysts.

“As crypto turns into extra built-in into the monetary system, we wish to guarantee that we will present options that meet the wants throughout all of our prospects,” she mentioned.

Income from the corporate’s options phase jumped 19% to $541 million, helped by the Verafin deal and robust demand for merchandise tied to Nasdaq’s monetary indexes.

Nasdaq additionally provides a cloud-based market companies platform the place it supplies the expertise and infrastructure for marketplaces. Eight crypto exchanges are actually utilizing Nasdaq buying and selling expertise and 9 are utilizing its surveillance expertise, Friedman mentioned.

New York-based Nasdaq received 147 IPOs within the quarter, together with 80 working firms, like Robinhood Markets Inc (HOOD.O) and Freshworks Inc (FRSH.O), whereas the remainder have been particular goal acquisition companies, representing $29 billion of capital raised.

Market companies income rose 15% to $295 million.

Internet revenues have been up 17% to $838 million.

Nasdaq shares opened at a report excessive, however then pulled again, and have been final down 4.29% at $199.88.

Friedman mentioned she anticipated compensation bills to rise into 2022 because of heightened competitors for expertise.

Reporting by Niket Nishant in Bengaluru and John McCrank in New York; Modifying by Shailesh Kuber and Mark Heinrich

Our Requirements: The Thomson Reuters Belief Ideas.

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