Slide 1: Nasdaq 1Q24 Quarterly Update
Nasdaq 1Q24 Quarterly Update April 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 delivered another quarter of solid results, with double digit revenue growth in our Solutions businesses including strong Financial Technology results and exceptional Index performance. We continue to make progress on our Integrate, Innovate, and Accelerate strategic priorit
Slide 4: Pillars of Strategy and Recent Accomplishments
Pillars of Strategy Recent Accomplishments ◦ Commenced the rollout of Dynamic Midpoint Extended Life Order (M-ELO) for U.S. cash equities on April 15th, the first Liquidity SEC approved AI-powered order type designed to improve fill rates and create greater efficiency for investors. Enhance liquidit
Slide 5: Solid execution delivering double-digit solutions growth in 1Q24
Solid execution delivering double-digit solutions growth in 1Q24 Total ($) Year over year Year over year Year over year change (%)1 pro forma change (%)1,2 organic change (%) Net Revenues $1,117M +22% +7% +6% Solutions Revenue $871M +35% +13% +11% Operating Margin 53% +1 ppt +1 ppt +1 ppt Annualized
Slide 6: Capital Access Platforms - Operational Highlights
Capital Access Platforms - Operational Highlights • Achieved record ETP AUM linked to Nasdaq indices, ending the +$46B 69% quarter at $519 billion, including $46 billion of net inflows in the trailing twelve month period as well as $21 billion in 1Q24. Index LTM Eligible U.S. operating • Named Index
Slide 7: Financial Technology - Operational Highlights
Financial Technology - Operational Highlights • Nasdaq hosted its first-ever Financial Technology conference in New 1Q24 York City earlier in April, with the event bringing together more than 170 clients from over 80 accounts. AxiomSL Upsells +20 • Financial Crime Management Technology, Verafin, sig
Slide 8: Market Services - Operational Highlights
Market Services - Operational Highlights • Proprietary index options complex realized record revenue, volume, and share. 72% #1 29% • Commenced the rollout of the first SEC approved AI-powered order type, Dynamic M-ELO, on April #1 market share in single venue of liquidity #1 market share in Euro ca
Slide 9: Financial Performance
Financial Performance “Nasdaq’s financial performance in the first quarter underscores the growth profile and durability of our business model. We are making disciplined investments while achieving meaningful progress executing on our expense synergy target and our deleveraging plan.” 9
Slide 10: 1Q24 Consolidated Financial Performance
1Q24 Consolidated Financial Performance Driving Resilient Growth, Non-GAAP Financial Results Creating Sustainable Value %Δ %Δ (US$ millions, except per share) 1Q24 1Q23 %Δ pro forma organic Pro forma net revenue growth +7% Net Revenues $1,117 $914 22% 7% 6% Solutions Revenues $871 $644 35% 13% 11% +
Slide 11: Net Revenue 1Q23 Pro forma to 1Q24
Net Revenue 1Q23 Pro forma to 1Q24 Y p ro f o r m a g ro w t h +7% Yo $1.1B $1.0B -1% +3% -1% +1% +0% +5% $16M one-time revenue benefit related to a legal 6% Alpha growth settlement within Index to the recoupment of lost revenue 1Q23 Pro Macro/Beta Existing Churn New Clients, Market Share FX & Other
Slide 12: Recurring Revenue KPIs Reflect Solid Growth
Recurring Revenue KPIs Reflect Solid Growth Annualized Recurring Revenue ($Ms) Annualized SaaS Revenues ($Ms) m a g rowth o f o r m a growth +7% YoY p r o f or + 16% YoY p r $910 $932 $2,518 $2,585 $2,612 $859 $2,441 $2,494 $834 $104 $802 $98 $79 $86 $437 $458 $473 $73 $812 $828 $412 $427 $773 $755
Slide 13: Capital Access Platforms - Financial Performance
Capital Access Platforms - Financial Performance Period ending and average ETP AUM ($B) (US$ millions) 1Q24 1Q23 $Δ %Δ %Δ pro forma1 (organic) Period ending ETP AUM ($B) Average ETP AUM ($B) Data and Listing Services $186 $185 $1 1% 1% $519 $473 Index2 $168 $110 $58 53% 53% $418 $492 Workflow and In
Slide 14: Financial Technology - Financial Performance
Financial Technology - Financial Performance %Δ %Δ (US$ millions) 1Q24 1Q23 $Δ pro forma (organic)1 +10% +12% Financial Crime Mgmt Technology $64 $52 $12 23% 23% Regulatory Technology $90 $32 $58 11% 6% Pro forma YoY Pro forma YoY revenue growth ARR growth Capital Markets Technology $238 $145 $93 6%
Slide 15: Market Services - Financial Performance
Market Services - Financial Performance %Δ %Δ (US$ millions) 1Q24 1Q23 $Δ pro forma1 (organic) U.S. equity derivatives $91 $102 $(11) (11)% (11)% U.S. index options volume growth 83% U.S. cash equities European cash equities $74 $26 $77 $26 $(3) $0 (4)% —% (4)% —% U.S. tape plans $28 $36 $(8) (22)%
Slide 16: Supporting Growth with Appropriate Resources
Supporting Growth with Appropriate Resources 2024 Non-GAAP Operating 1Q24 Pro Forma Non-GAAP Operating Expense +5% Expense Guidance1 $524 Pro forma growth $499 Year-over-Year $2.125B-$2.185B vs. • The midpoint of our guidance reflects pro forma growth of just over 5%. This includes a full year of Ad
Slide 17: Committed to deleveraging: 4.1x gross leverage at end of 1Q24
We are committed to deleveraging and are at 4.1x gross leverage at 1 the end of 1Q24 Gross Leverage Ratio Bridge 4.3x 4.1x -0.1x –0.0x –0.0x -0.1x 4Q23 Term Loan Change in Commercial Change EBITDA Δ 1Q24 1 1 leverage ratio repayment Paper in Euro rate and leverage ratio Amortization of debt issue co
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: Supplemental Adenza Financial Information
Supplemental Adenza Adenza Financial 2023 Financial Information Results by Quarter (U.S. $ millions) 1Q23 2Q23 3Q23 4Q23 2023 AxiomSL $48 $47 $67 $89 $251 Calypso $78 $82 $71 $101 $332 Total revenues $126 $129 $138 $190 $583 GAAP operating expenses $104 $111 $107 $87 $409 GAAP operating income $22 $
Slide 21: Total Non-GAAP Pro Forma Variance 1Q24
Total Non-GAAP Pro Forma Variance 1Q24 Variance Reported Reported Adenza Pro Forma Total Variance Pro Forma impact ($s in millions) 1Q24 1Q23 1Q23 1Q23 $ % FX $ % Capital Access Platforms $479 $415 $— 415 $64 15% $— 64 15% Financial Crime Management Technology 64 52 — 52 12 23% — 12 23% Regulatory T
Slide 22: Total Variance Net Impacts: 1Q24
Total Variance Net Impacts: 1Q24 Total Variance1 Acq. & Div. Impact2 FX Impact Organic Impact3 All figures in US$ Millions 1Q24 1Q23 $M % $M % $M % $M % Data and Listing Services $186 $185 $1 1 % $— — % $— — % $1 1 % Index 168 110 58 53 % — — % — — % 58 53 % Workflow and Insights 125 120 5 4 % — — %
Slide 23: Pro Forma Trends
Pro Forma Trends Net Revenues (U.S.$ millions) 1Q24 4Q23 3Q23 2Q23 1Q23 2023 Data and Listing Services $ 186 $ 189 $ 188 $ 187 $ 185 $ 749 Workflow and Insights 125 126 124 122 120 493 Index 168 146 144 129 110 528 Capital Access Platforms 479 461 456 438 415 1,770 Financial Crime Technology Managem
Slide 24: Non-GAAP Pro Forma Operating Income and Margin
Non-GAAP Pro Forma Operating Income and Margin um (U.S.$ millions) 1Q24 4Q23 3Q23 2Q23 1Q23 n1 2023 Capital Access Platforms Net revenues $ 479 $ 461 $ 456 $ 438 $ 415 $ 1,770 Expenses 200 210 202 197 190 799 Operating income 279 251 254 241 225 971 Operating Margin 58 % 54 % 56 % 55 % 54 % 55 % Fin
Slide 25: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin mn (U.S.$ millions) 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1 2023 2022 2021 2020 2019 Capital Access Platforms Net revenues $ 479 $ 461 $ 456 $ 438 $ 415 $ 419 $ 422 $ 421 $ 1,770 $ 1,682 $1,566 $ 1,285 $ 1,122 Expenses 200 210 202 197 190 209 189 181 799 768 72
Slide 26: Debt Overview
Debt Overview Well Laddered Debt Maturities $9.6B Net Debt (US$ millions) 3/31/2024 12/31/2023 Maturity Date 1,300 Commercial Paper $224 $291 NA 1,200 Revolver (SOFR + 115 bps)1 $(4) $(4) Dec 2027 1,100 3.85% Notes $499 $499 Jun 2026 1,000 Acquisition term loan agreement $— $339 Nov 2026 900 1.75% E
Slide 27: Historical Cash Flow / Uses of Cash Flow
Historical Cash Flow / Uses of Cash Flow Free Cash Flow Calculation 2024 2021 - 2024 LTM 2023 2022 2021 (US$ millions) YTD YTD • 2024 YTD free cash flow excluding Cash flow from operations $1,661 $530 $1,696 $1,706 $1,083 $5,015 Section 31 fees totaled $504 million. Capital expenditure (157) (39) (1
Slide 28: Solutions Organic Revenue Growth
Solutions Organic Revenue Growth Solutions Current Prior-year Total Variance Organic Impact Other Impact (1) Period Period All figures in US$ Millions $ % $ % $ % 1Q24 Pro Forma Variance $871 $770 101 13 % 99 13 % 2 —% 1Q24 871 644 227 35 % 74 11 % 153 24 % 4Q23 860 650 210 32 % 58 9% 152 23 % 3Q23
Slide 29: Market Services Organic Revenue Growth
Market Services Organic Revenue Growth Market Services Division Total Variance Organic Impact Other Impact (1) Current Prior-year All figures in US$ Millions $ % $ % $ % Period Period 1Q24 $237 $260 (23) (9)% (23) (9)% — —% 4Q23 247 245 2 1% 1 —% 1 —% 3Q23 236 239 (3) (1)% (4) (2)% 1 —% 2Q23⁽²⁾ 250
Slide 30: Market Services Additional Detail
Market Services Additional Detail (US$ in Millions) 1Q24 4Q23 3Q23 2Q23 1Q23 U.S. Equity Derivatives Trading $91 $91 $92 $89 $102 U.S. Cash Equity Trading 74 74 71 79 77 European Cash Equity Trading 26 24 22 24 26 U.S. Tape Plans 28 34 35 35 36 Other1 18 24 16 15 19 Market Services Net Revenues $237
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