Nasdaq Dips in Earnings Despite Organic Growth and Increased Investments

Nasdaq Inc. reported a decline in earnings for the first time in a year, with earnings dropping to 63 cents a share from 69 cents a year ago, below the expected 65 cents. Despite this, CEO Adena Friedman highlighted the company’s sustained organic growth despite a turbulent capital markets backdrop. Annualized recurring revenue grew by 5% excluding recent acquisitions, driven by a 12% increase in Nasdaq’s financial crime and regulatory products. The company also raised its full-year operating expense guidance to account for increased technology investments.

The current economic environment has made companies cautious about going public due to uncertainties surrounding geopolitical conflicts and potential interest rate cuts by the Federal Reserve. The US economy slowed in the first quarter, with concerns about inflation and cooling consumer and government spending. Despite successful IPOs like Reddit’s, overall trading volume on Nasdaq’s exchanges remained flat year-on-year for a second quarter in a row. Nasdaq’s shares fell about 1% in early trading but had risen nearly 6% for the year up to the previous day.