NDAQ Beats on Q1 Earnings, Tweaks Expense View, Raises Dividend

Core Viewpoint - Nasdaq reported strong first-quarter 2025 results with adjusted earnings per share of 79 cents, exceeding estimates and showing a year-over-year improvement of 25.4% driven by higher revenues and organic growth [1] Financial Performance - Nasdaq's net revenues reached $1.2 billion, marking a 12.5$2.8 billion, with organic growth at 9% [2] - Annualized SaaS revenues increased by 14%, accounting for 37% of ARR [2] - Capital Access Platforms' revenues were $479 million, up 11$395 million, reflecting a 10% increase [3] - Solutions business revenues rose 11% year over year to $947 million, supported by strong growth in Index and Financial Technology [3] - Market Services net revenues increased by 19$281 million, exceeding estimates [3] Operating Expenses and Income - Adjusted operating expenses were $555 million, up 5.9$682 million, with an operating margin of 55%, expanding by 200 basis points [4] Market Activity - Nasdaq welcomed 170 new company listings in the quarter, including 63 initial public offerings, bringing the total number of listed companies to 4,139 [5] Financial Position - As of March 31, 2025, Nasdaq had cash and cash equivalents of $708 million, a 17$8.9 billion [6] - Cash flow from operations for the quarter was $663 million [6] Capital Deployment - Nasdaq returned$138 million to shareholders through dividends and $115 million through stock repurchases in the first quarter [7] - The board approved a dividend of 27 cents per share, a 13$1.6 billion remains under the board-authorized share repurchase program as of March 31, 2025 [8] Guidance - Nasdaq expects 2025 non-GAAP operating expenses to be between $2,265 million and$2,325 million, slightly adjusted from previous guidance [9] - The forecasted non-GAAP tax rate for 2025 is projected to be between 22.5% and 24.5% [9]