Slide 1: Nasdaq 2Q24 Quarterly Update
Nasdaq 2Q24 Quarterly Update July 25, 2024
Slide 2: Disclaimers
Disclaimers Non-GAAP Information In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating
Slide 3: Strategic Update
Strategic Update "Nasdaq’s strong financial and operational results were underpinned by broad-based growth across our three divisions and another quarter of double- digit Solutions growth. We continued the momentum in our Financial Technology division as financial institutions remain focused on resi
Slide 4: Pillars of Strategy
Pillars of Strategy Recent Accomplishments ◦ Record volume of shares and notional value traded in the Closing Cross in the quarter, including the largest notional Liquidity liquidity event on the Nasdaq Stock Exchange for the Russell Reconstitution in June. Enhance liquidity by modernizing markets w
Slide 5: Strong execution delivering double-digit Solutions growth in 2Q24
Strong execution delivering double-digit Solutions growth in 2Q24 Total ($) Year over year Year over year Year over year change (%)1 pro forma change (%)1,2 organic change (%) Net Revenues $1,159M +25% +10% +7% Solutions Revenues $901M +34% +13% +9% Operating Margin 53% +1 ppt +1 ppt +0 ppt Annualiz
Slide 6: Capital Access Platforms - Operational Highlights
Capital Access Platforms - Operational Highlights • Maintained listings leadership with a 72% eligible U.S. operating +$53B 72% company IPO win rate, reflecting 31 operating company IPOs that raised over $3 billion in proceeds. Index LTM Eligible U.S. operating • Achieved record ETP AUM linked to Na
Slide 7: Financial Technology - Operational Highlights
Financial Technology - Operational Highlights • Executed 4 cross-sells this quarter, including 2 cross-sells of our AxiomSL solution to Calypso clients. New FinTech Clients +67 • AxiomSL and Calypso generated 58 combined upsells and added 6 new clients in 2Q, with 68% of new bookings cloud-based. Fi
Slide 8: Market Services - Operational Highlights
Market Services - Operational Highlights • Generated record Index Options revenues. • Record volume of shares and notional value traded in 74% #1 29% the Closing Cross in the quarter, including the largest notional liquidity event on the Nasdaq Stock Exchange for the Russell Reconstitution in June.
Slide 9: Financial Performance
Financial Performance "Nasdaq delivered a quarter of strong top-line growth and positive operating leverage. We successfully executed on our first deleveraging goal and achieved our year-end 2024 actioned synergy target six months in advance. Looking ahead, we are well-positioned to deliver durable
Slide 10: 2Q24 Consolidated Financial Performance
2Q24 Consolidated Financial Performance Driving Resilient Growth, Non-GAAP Financial Results Creating Sustainable Value %Δ %Δ (US$ millions, except per share) 2Q24 2Q23 %Δ pro forma organic Pro forma net revenue growth +10% Net Revenues $1,159 $925 25% 10% 7% Solutions Revenues $901 $673 34% 13% 9%
Slide 11: Net Revenue 2Q23 Pro Forma to 2Q24
Net Revenue 2Q23 Pro Forma to 2Q24 +10% YoY pro forma growth $1.2B $1.1B -2% +4% -1% —% +2% +7% 8% Alpha growth 2Q23 Pro Macro/Beta Existing Churn New Clients, Market Share FX & Other 2Q24 forma Clients Cross-Sell & & Capture increases Other innovation Nasdaq Revenue Pro Forma Adenza Revenue Note: T
Slide 12: Recurring Revenue KPIs Reflect Solid Growth
Recurring Revenue KPIs Reflect Solid Growth Annualized Recurring Revenue ($Ms) Annualized SaaS Revenues ($Ms) +7% YoY pro forma growth +17% YoY pro forma growth $2,585 $2,612 $2,668 $2,494 $2,518 $975 $910 $932 $458 $473 $486 $427 $437 $834 $859 $123 $98 $104 $2,127 $2,139 $2,182 $79 $86 $852 $2,067
Slide 13: Capital Access Platforms - Financial Performance
Capital Access Platforms - Financial Performance Period ending and average ETP AUM ($B) (US$ millions) 2Q24 2Q23 $Δ %Δ %Δ pro forma1 (organic) Period ending ETP AUM ($B) Average ETP AUM ($B) Data and Listing Services $187 $187 $0 1% 1% $569 $519 Index $167 $129 $38 29% 29% $473 $531 $418 $411 $492 W
Slide 14: Financial Technology - Financial Performance
Financial Technology - Financial Performance %Δ %Δ (US$ millions) 2Q24 2Q23 $Δ pro forma (organic)1 +16% Pro forma YoY +13%Pro forma YoY Financial Crime Mgmt Technology Regulatory Technology $67 $95 $54 $35 $13 $60 24% 16% 24% 6% revenue growth ARR growth Capital Markets Technology $258 $146 $112 14
Slide 15: Market Services - Financial Performance
Market Services - Financial Performance %Δ %Δ (US$ millions) 2Q24 2Q23 $Δ pro forma1 (organic) U.S. equity derivatives $90 $89 $1 1% 1% U.S. index options volume growth 51% U.S. cash equities European cash equities $86 $26 $79 $24 $7 $2 9% 8% 9% 8% U.S. tape plans $31 $35 $(4) (11)% (11)% Other $17
Slide 16: Supporting Growth with Appropriate Resources
Supporting Growth with Appropriate Resources 2Q24 Pro Forma Non-GAAP Operating Expense +7% Pro forma growth 2024 Non-GAAP Operating $539 Year-over-Year $507 Expense Guidance1 vs. $2.145B-$2.185B +10% Pro forma 2Q23 2Q24 Net revenue growth 2Q24 Pro Forma Non-GAAP Operating Margin 52% 53% Non-GAAP Tax
Slide 17: Committed to deleveraging, 3.9x gross leverage at end of 2Q24
We are committed to deleveraging and are at 3.9x gross leverage at 1 the end of 2Q24 Gross Leverage Ratio Bridge 4.1x 3.9x -0.1x 0.0x -0.1x – – 1Q24 1 Change in Commercial Paper Change EBITDA Δ 2Q24 1 leverage ratio in Euro rate and Amortization leverage ratio of debt issue costs (US$ millions) Beg-
Slide 18: Appendix
Appendix
Slide 19: Supplemental Outlook
Supplemental Outlook Medium-Term Adenza1Financial Information Medium-Term Growth Outlook3 Data and Listing Services Low single digits Workflow and Insights High single/low double digits Index Mid to high single digits Capital Access Platforms 5-8% Fin Crime Mgmt Technology Mid 20s Regulatory Technol
Slide 20: Total Non-GAAP Pro Forma 2Q24 Variance
Total Non-GAAP Pro Forma 2Q24 Variance Reported Reported Adenza Pro Forma Total Variance Pro Forma impact ($s in millions) 2Q24 2Q23 2Q23 2Q23 $ % FX $ % Capital Access Platforms $481 $438 $— 438 $43 10% $(1) 44 10% Financial Crime Management Technology 67 54 — 54 13 24% — 13 24% Regulatory Technolo
Slide 21: Total Variance Net Impacts: 2Q24
Total Variance Net Impacts: 2Q24 Total Variance1 Acq. & Div. Impact2 FX Impact Organic Impact3 All figures in US$ Millions 2Q24 2Q23 $M % $M % $M % $M % Data and Listing Services $187 $187 $— — % $— — % ($1) (1) % $1 1 % Index 167 129 38 29 % — — % — — % 38 29 % Workflow and Insights 127 122 5 4 % —
Slide 22: Pro Forma Trends
Pro Forma Trends Net Revenues (U.S.$ millions) 2Q24 1Q24 4Q23 3Q23 2Q23 2023 Data and Listing Services $ 187 $ 186 $ 189 $ 188 $ 187 $ 749 Workflow and Insights 127 125 126 124 122 493 Index 167 168 146 144 129 528 Capital Access Platforms 481 479 461 456 438 1,770 Financial Crime Technology Managem
Slide 23: Non-GAAP Pro Forma Operating Income, Operating Margin and EBITDA
Non-GAAP Pro Forma Operating Income, Operating Margin and EBITDA um (U.S.$ millions) 2Q24 1Q24 4Q23 3Q23 2Q23 n1 2023 Capital Access Platforms Net revenues $ 481 $ 479 $ 461 $ 456 $ 438 $ 1,770 Expenses 210 200 210 202 197 799 Operating income 271 279 251 254 241 971 Operating Margin 56 % 58 % 54 %
Slide 24: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin mn (U.S.$ millions) 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 1 2023 2022 2021 2020 2019 Capital Access Platforms Net revenues $ 481 $ 479 $ 461 $ 456 $ 438 $ 415 $ 419 $ 422 $ 1,770 $ 1,682 $1,566 $ 1,285 $ 1,122 Expenses 210 200 210 202 197 190 209 189 799 768 72
Slide 25: Debt Overview
Debt Overview Well Laddered Debt Maturities $9.4B Net Debt 1,300 (US$ millions) 6/30/2024 3/31/2024 Maturity Date 1,200 Commercial Paper $50 $224 NA 1,100 Revolver (SOFR + 119 bps)1 $(4) $(4) Dec 2027 1,000 3.85% Notes $499 $499 Jun 2026 Acquisition term loan agreement $— $— Nov 2026 900 1.75% Euro
Slide 26: Historical Cash Flow / Uses of Cash Flow
Historical Cash Flow / Uses of Cash Flow Free Cash Flow Calculation 2024 2021 - 2024 LTM 2023 2022 2021 (US$ millions) YTD YTD • 2024 YTD free cash flow excluding Cash flow from operations $1,707 $990 $1,696 $1,706 $1,083 $5,475 Section 31 fees totaled $832 million. Capital expenditure (170) (91) (1
Slide 27: Solutions Organic Revenue Growth
Solutions Organic Revenue Growth Solutions Current Prior-year Total Variance Organic Impact Other Impact (1) Period Period All figures in US$ Millions $ % $ % $ % 2Q24 Pro Forma Variance $901 $802 99 12 % 101 13 % (2) —% 2Q24 901 673 228 34 % 62 9% 166 25 % 1Q24 871 644 227 35 % 74 11 % 153 24 % 4Q2
Slide 28: Market Services Organic Revenue Growth
Market Services Organic Revenue Growth Market Services Division Total Variance Organic Impact Other Impact (1) Current Prior-year All figures in US$ Millions $ % $ % $ % Period Period 2Q24 $250 $242 8 3% 8 3% — —% 1Q24 237 260 (23) (9)% (23) (9)% — —% 4Q23 247 245 2 1% 1 —% 1 —% 3Q23 236 239 (3) (1)
Slide 29: Market Services Additional Detail
Market Services Additional Detail (US$ in Millions) 2Q24 1Q24 4Q23 3Q23 2Q23 U.S. Equity Derivatives Trading $90 $91 $91 $92 $89 U.S. Cash Equity Trading 86 74 74 71 79 European Cash Equity Trading 26 26 24 22 24 U.S. Tape Plans 31 28 34 35 35 Other1 17 18 24 16 15 Market Services Net Revenues $250
Slide 30: Our ESG Strategy
Our ESG Strategy 2023/24 Highlights External Impact • Invested in new ESG-related products and services, including launching Nasdaq Metrio, Sustainable Lens, and eVestment ESG Analytics to help our investor and corporate clients achieve their own ESG objectives. • Hosted Nasdaq’s inaugural New York
Slide 31: Defined Terms
Defined Terms ARR: ARR for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are onetime in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of
Slide 32: For Additional Investor Relations Information
For Additional Investor Relations Information Investor Relations Website: http://ir.nasdaq.com Investor Relations Contact: Ato Garrett Senior Vice President, Investor Relations ato.garrett@nasdaq.com 32