Nasdaq(US:NDAQ)2025-02-21 21:56Company Transformation and Acquisitions - In November 2023, the company accelerated its transformation by acquiring Adenza and its two flagship solutions, AxiomSL and Calypso[26]. Market Performance and Listings - As of December 31, 2024, a total of 5,249 companies listed securities on the company's exchanges, with 4,075 on The Nasdaq Stock Market[38]. - In 2024, the company achieved a total of 463 new listings, including 130 operating company IPOs and 50 SPAC IPOs[39]. - The eligible IPO win rate for 2024 was 82%, with operating companies achieving an 80% win rate[39]. Financial Performance - Revenues less transaction-based expenses for 2024 were $4,649 million, a 19.4% increase from $3,895 million in 2023[341]. - Operating income for 2024 was $1,798 million, reflecting a 13.9% increase compared to $1,578 million in 2023[341]. - Net income attributable to Nasdaq for 2024 was $1,117 million, a 5.5% increase from $1,059 million in 2023[341]. - Diluted earnings per share for 2024 decreased to $1.93, down 7.4% from $2.08 in 2023[341]. - Cash dividends declared per common share increased to $0.94 in 2024, a 9.3% rise from $0.86 in 2023[341]. - Total revenues for the year ended December 31, 2024, reached $7,400 million, representing a 22.0% increase compared to $6,064 million in 2023[345]. Segment Performance - Capital Access Platforms segment generated revenues of $1,972 million in 2024, up 11.4% from $1,770 million in 2023[347]. - Financial Technology segment revenues increased by 47.5% to $1,621 million in 2024, compared to $1,099 million in 2023[353]. - Market Services revenues grew by 20.9% to $3,771 million in 2024, compared to $3,156 million in 2023[345]. - Financial Crime Management Technology revenues increased to $273 million in 2024, a 22.2% rise from $223 million in 2023[354]. - Regulatory Technology revenues surged by 66.3% to $352 million in 2024, compared to $212 million in 2023[353]. - Capital Markets Technology revenues reached $996 million in 2024, reflecting a 50.0% increase from $664 million in 2023[353]. Employee and Workforce Metrics - The company had 9,162 full and part-time employees as of December 31, 2024[160]. - The internal employee engagement score reached a record high of 80% favorable in 2024, with a 94% participation rate in the survey[163]. - The workforce voluntary attrition rate was approximately 6.7% in 2024, nearly one percentage point lower than in 2023[163]. - In 2024, 98% of employees participated in at least one AI training program[166]. - Nasdaq employees raised over $550,000 for more than 800 charities worldwide in 2024[176]. Technology and Innovation - The Financial Technology segment focuses on Financial Crime Management Technology, Regulatory Technology, and Capital Markets Technology[52]. - The company aims to enhance market resiliency and scalability through new technologies such as cloud, blockchain, machine learning, and AI[29]. - Nasdaq is committed to leveraging AI for product development, focusing on areas such as investment analytics and fraud detection, with plans to enhance AI capabilities in 2025[82]. - The company is migrating its exchanges to cloud infrastructure in partnership with AWS, aiming for improved performance and flexibility for clients[85]. - Nasdaq's sustainability data management platform offers AI-powered insights for faster sustainability decisions[10]. Sustainability Initiatives - Nasdaq owns a majority stake in Puro.earth, enhancing its sustainability-focused technologies and offering resources for clients' sustainability objectives[80]. - Nasdaq aims to achieve carbon neutrality across all business operations for the seventh consecutive year by retiring remaining carbon offsets for 2024 by Q3 2025[116]. - Nasdaq was named to the Dow Jones Best-in-Class World Index for the first time in 2024 and maintained an "AA" rating from MSCI, placing it in the "Leaders" category[116]. Competitive Landscape - The Listings Services business in the U.S. and Europe facilitates capital formation through public capital markets, competing primarily with NYSE and various European exchanges[91]. - Nasdaq's market technology business faces competition from both exchange operators and independent technology providers, necessitating continuous investment and innovation[102]. - The Index business competes with various financial indices, including the Nasdaq-100 Index and Nasdaq Composite Index, against providers like S&P Dow Jones Indices and MSCI[93]. - Nasdaq's corporate solutions business faces competition from other exchange operators and firms providing investor relations services alongside listing services[95]. - The Financial Crime Management Technology offerings must demonstrate the ability to decrease false positives and provide insights into potential risks, competing on factors like workflow efficiency and data quality[98]. Regulatory and Compliance - Nasdaq conducts real-time market monitoring and suspicious trading behavior reviews through its Nasdaq Regulation department[127]. - Nasdaq's regulatory service agreements with FINRA ensure proper regulation of the markets[134]. - Nasdaq is subject to MiFID II and MiFIR regulations, impacting its European trading businesses[145]. - Nasdaq CSD SE provides notary, settlement, and central maintenance services in the Baltic countries and is licensed under European regulations[153]. Operating Expenses - Total operating expenses increased to $2,851 million in 2024, a 23.0% increase compared to $2,317 million in 2023[372]. - Compensation and benefits expense rose to $1,324 million in 2024, reflecting a 22.4% increase from $1,082 million in 2023, driven by a full year of Adenza employee costs and a $23 million pre-tax charge related to pension plan termination[372][373]. - Depreciation and amortization expense surged to $613 million in 2024, an 89.3% increase from $323 million in 2023, mainly due to amortization of intangible assets from the Adenza acquisition[372][378]. - Marketing and advertising expenses increased to $54 million in 2024, a 16.4% rise from $47 million in 2023, attributed to higher client incentive spending due to increased IPO activity[372][377]. - Regulatory expenses increased to $55 million in 2024, a 60.8% increase from $34 million in 2023, primarily due to the settlement of a previously disclosed inquiry[372][378]. - Professional and contract services expense rose to $152 million in 2024, an 18.4% increase from $128 million in 2023, driven by the inclusion of Adenza[372][374]. - Technology and communication infrastructure expenses increased to $281 million in 2024, a 20.9% rise from $233 million in 2023, due to increased investment in cloud initiatives and software licensing[372][375]. - Occupancy expenses decreased to $112 million in 2024, a 12.9% decline from $129 million in 2023, primarily due to impairment charges and exit costs from abandoned leased office space[372][376]. - Restructuring charges increased to $116 million in 2024, a 44.3% increase from $80 million in 2023, reflecting ongoing strategic initiatives[372].