Acquisitions And Operations Drive NASDAQ’s Second Quarter Revenue

July 28th, 2016 by Trefis Team
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NASDAQ (NASDAQ:NDAQ) announced its Q2 results on Wednesday, July 27th, reporting an 11% year on year (y-o-y) increase in revenues. Technology revenue was the largest driver of the exchange operator’s revenue in the quarter. Its growth can be attributed to the revenue addition from acquisitions (Marketwired and Boardvantage) and software licensing and support. Furthermore, market service revenue saw an 11% increase, largely driven by an increase in cash equities and equity options trading volumes due to the increased volatility in the stock market. However, the continued decline in U.S. fixed income trading volumes has slightly offset the growth in the exchange operator’s transaction-based revenues.

Despite the significant increase in revenues, NASDAQ saw a decline in its bottom line due to a significant increase in operating expenses, partially due to acquisition-related charges booked during the quarter. However, these acquisition costs are likely to subside in the coming quarters, which should boost the company’s bottom line.

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