(Reuters) -Nasdaq Inc on Wednesday reported quarterly profits that beat Wall Street expectations, as traders turned to the exchange operator’s investment-related products to navigate market volatility, helping drive up revenues.
Nasdaq’s second-quarter net income was down around 10% from a year earlier, mainly due to a business divestiture in the year-ago quarter, as well as higher compensation-based expenses, at $307 million, or $1.85 per diluted share, from $341 million, or $2.05 cents per diluted share, a year earlier.
Stripping out one-time items, Nasdaq earned $2.07 per share, well above analysts’ average estimate of $1.91 per share, according to IBES data from Refinitiv.
Net revenue rose 6% to $893 million, primarily driven by a 10% growth in the company’s solutions segment, which also houses anti-financial crime technology and environmental, social, and governance (ESG) advisory products.
Under Chief Executive Officer Adena Friedman, the stock exchange operator has looked to diversify its offerings and reposition itself as a leading financial technology company with an expanding footprint in the software sector, offering analytics, data and cloud services.
Last month, Nasdaq also said it planned to acquire ESG software provider Metrio for an undisclosed amount.
The company’s Nasdaq stock market hosted 38 IPOs in the reported quarter, compared with 135 stock market flotations in the year-ago quarter.
Earlier this month, Nasdaq was also among large exchange groups that won a ruling against the Securities and Exchange Commission when a U.S. appeals court struck down the regulator’s order that would have allowed some financial firms to have a say in how essential stock market data is priced and disseminated.
Source: Economy - investing.com
