Slide 1: Nasdaq 3Q24 Quarterly Update
Nasdaq 3Q24 Quarterly Update October 24, 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 Solutions revenue, non-GAAP net revenue, non-GAAP net income attributable to Nasdaq, non-G
Slide 3: Strategic Update
Strategic Update "Nasdaq delivered its fourth consecutive quarter of double-digit Solutions growth with strong overall quarterly performance. As we approach the one-year anniversary of the Adenza acquisition, I am proud of our progress to date and excited about driving even greater value for our cli
Slide 4: Pillars of Strategy
Pillars of Strategy Recent Accomplishments Liquidity ◦ Successfully migrated Nasdaq ISE to our next-generation derivatives platform, Fusion, with 4 of 6 Nasdaq U.S. options Enhance liquidity by modernizing markets markets now running on the platform. with innovative technology ◦ Calypso signed its 2
Slide 5: Strong Execution Delivering Double-Digit Solutions Growth in 3Q24
Strong Execution Delivering Double-Digit Solutions Growth in 3Q24 Year over year Year over year Year over year Total ($) pro forma change change (%) organic change (%) (%)1 Non-GAAP net revenue2 $1,180M +26% +10% +10% Non-GAAP Solutions revenue2 $906M +31% +10% +9% Non-GAAP operating margin2 54% +2
Slide 6: Capital Access Platforms - Operational Highlights
Capital Access Platforms - Operational Highlights +$62B 75% • Celebrated the 500th listing switch to Nasdaq from our primary listing competitor. In total, these 500 switches represent close to $3 trillion of market value. Index LTM ETP AUM Eligible U.S. net inflows operating company IPO win rate1 ye
Slide 7: Financial Technology - Operational Highlights
Financial Technology - Operational Highlights • Nasdaq rose to 5th in this year's Chartis RiskTech100® ranking, a New FinTech clients +39 year after standalone Nasdaq and Adenza ranked #18 and #10, respectively, in last year's ranking, highlighting the combined power of its technology offering. Nasd
Slide 8: Market Services - Operational Highlights
Market Services - Operational Highlights • Record third quarter revenue that benefited from record U.S. options and index options revenue. 72% #1 30% • Migrated Nasdaq ISE to Fusion, its next-generation derivatives platform. 4 of 6 Nasdaq U.S. options markets are now running on Fusion, enabling lowe
Slide 9: Financial Performance
Financial Performance "Nasdaq’s performance continues to reflect the quality and diversity of our platforms, driving strong growth across the business with particular strength in Index and Financial Technology. We are continuing to deliver ahead on deleveraging and synergies and are benefiting from
Slide 10: 3Q24 Consolidated Financial Performance
3Q24 Consolidated Financial Performance Driving Resilient Growth, Non-GAAP Financial Results Creating Sustainable Value %Δ %Δ (US$ millions, except per share) 3Q24 3Q23 %Δ pro forma organic Net revenue1 +10% $1,180 $940 26% 10% 10% Pro forma net revenue growth Solutions revenue1 $906 $694 31% 10% 9%
Slide 11: Net Revenue Bridge 3Q23 Pro Forma to 3Q24
Net Revenue Bridge 3Q23 Pro Forma to 3Q24 +10% YoY pro forma growth 1 $1.2B $1.1B +5% (2)% +4% +1% 0% +2.5% +7.5% Alpha growth 3Q23 pro Macro/Beta Existing clients Churn New clients, Market share & FX & other 3Q24 forma increases cross-sell, & capture other innovation Nasdaq revenue Pro Forma Adenza
Slide 12: Recurring Revenue KPIs Reflect Solid Growth
Recurring Revenue KPIs Reflect Solid Growth Annualized Recurring Revenue (US$ millions) Annualized SaaS Revenue (US$ millions) +8% YoY pro forma growth 17% YoY pro forma growth $975 $1,011 $910 $932 $2,668 $2,736 $859 $123 $129 $2,518 $2,585 $2,612 $104 $98 $86 $852 $882 $486 $503 $828 $437 $458 $47
Slide 13: Capital Access Platforms - Financial Performance
Capital Access Platforms - Financial Performance Period ending and average ETP AUM %Δ %Δ (US$ in millions) 3Q24 3Q23 pro forma1 (organic) (US$ billions) Data and Listing Services $190 $188 1% 1% Period ending ETP AUM Average ETP AUM Index $182 $144 26% 26% $600 $569 Workflow and Insights $129 $124 3
Slide 14: Financial Technology - Non-GAAP Financial Performance
Financial Technology - Non-GAAP Financial Performance %Δ %Δ (US$ in millions) 3Q24 3Q23 pro forma1 (organic) +10% Pro forma YoY +14% Pro forma YoY Financial Crime Mgmt Technology Regulatory Technology1 $69 $102 $58 $35 20% 8% 20% 6% Capital Markets Technology $234 $145 8% 5% revenue growth ARR growt
Slide 15: Market Services - Financial Performance
Market Services - Financial Performance %Δ %Δ (US$ millions) 3Q24 3Q23 pro forma1 (organic) U.S. equity derivatives $107 $92 16% 16% U.S. index options volume growth 19% U.S. cash equities European cash equities $82 $25 $71 $22 15% 10% 15% 10% U.S. tape plans $35 $35 1% 1% Other revenue $17 $16 7% 7
Slide 16: Supporting Growth with Appropriate Resources
Supporting Growth with Appropriate Resources 3Q24 Pro Forma Non-GAAP Operating Expense +5% pro forma expense $543 2024 Non-GAAP Operating $514 growth year-over-year Expense Guidance1 vs. $2.150B-$2.180B +10% pro forma net revenue 3Q23 3Q24 growth 3Q24 Pro Forma Non-GAAP Operating Margin 52% 54% Non-
Slide 17: Committed to Deleveraging and at 3.8x Gross Leverage at End of 3Q24
Committed to Deleveraging and at 3.8x Gross Leverage at the End 1 of 3Q24 Gross Leverage Ratio Bridge 3.9x 0.0x 3.8x 0.0x (0.1)x – – 1 1 2Q24 leverage ratio Change in commercial paper Change in Euro rate and EBITDA Δ 3Q24 leverage ratio amortization (US$ millions) Beg-of-period End-of-period Gross d
Slide 18: Appendix
Appendix
Slide 19: Supplemental Outlook
Supplemental Outlook Medium-Term Adenza1Financial Information Medium-Term Growth Outlook2 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 3Q24 Variance
Total Non-GAAP Pro Forma 3Q24 Variance Non-GAAP Adenza Pro forma Reported Adenza Pro forma Total variance FX and Pro forma impact 1 ($s in millions) 3Q24 adjustment1 3Q24 3Q23 3Q23 3Q23 $ % other $ % Capital Access Platforms $501 $— $501 $456 $— 456 $45 10% $1 44 9% Financial Crime Management Techno
Slide 21: Non-GAAP Pro Forma Revenue Post AxiomSL Ratable Change
Non-GAAP Pro Forma Revenue Post AxiomSL Ratable Change Net revenue (US$ millions) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 2023 Data and Listing Services $190 $187 $186 $189 $188 $187 $185 $749 Workflow and Insights 129 127 125 126 124 122 120 493 Index 182 167 168 146 144 129 110 528 Capital Access Platf
Slide 22: Non-GAAP Pro Forma Operating Income/EBITDA and Margin
Non-GAAP Pro Forma Operating Income/EBITDA and Margin (US$ millions) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 2023 Capital Access Platforms Net revenue $501 $481 $479 $461 $456 $438 $415 $1,770 Expenses 211 210 200 210 202 197 190 799 Operating income 290 271 279 251 254 241 225 971 Operating margin 58% 5
Slide 23: Total Variance Impacts: 3Q24
Total Variance Impacts: 3Q24 Total Variance Acquisition impact FX Impact Organic Impact1 (US$ millions) 3Q24 3Q23 $M % $M % $M % $M % Data and Listing Services $190 $188 $2 1% $— —% $1 —% $1 1% Index 182 144 38 26% — —% — —% 38 26% Workflow and Insights 129 124 5 4% — —% — —% 5 3% Capital Access Pla
Slide 24: ARR Summary - Pro Forma
ARR Summary - Pro Forma ARR Trends 3Q24 2Q24 1Q24 4Q23 3Q231 Data and Listing Services $683 $668 $665 $682 $679 Workflow and Insights 497 484 481 481 471 Index 74 74 74 72 72 Capital Access Platforms 1,254 1,226 1,220 1,235 1,222 Financial Crime Technology Management 268 258 243 226 216 Regulatory T
Slide 25: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin mn (US$ in millions) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 1 2023 2022 2021 2020 2019 Capital Access Platforms Net revenue $501 $481 $479 $461 $456 $438 $415 $419 $1,770 $1,682 $1,566 $1,285 $1,122 Expenses 211 210 200 210 202 197 190 209 799 768 724 636 575 Op
Slide 26: Debt Overview
Debt Overview Well-Laddered Debt Maturities $9.6B Net Debt 1,300 (US$ millions) 9/30/2024 6/30/2024 Maturity Date 1,200 Commercial paper $— $50 NA 1,100 Revolver (SOFR + 119 bps)1 $(3) $(4) Dec 2027 1,000 3.85% notes $499 $499 Jun 2026 1.75% Euro notes $665 $639 Mar 2029 900 0.875% Euro notes $664 $
Slide 27: Historical Cash Flow / Uses of Cash Flow
Historical Cash Flow / Uses of Cash Flow Free Cash Flow Calculations 3Q24 2024 2021 - LTM 2023 2022 2021 (US$ in millions) QTD YTD 2024 YTD • 2024 YTD free cash flow excluding Cash flow from operations $1,651 $244 $1,234 $1,696 $1,706 $1,083 $5,719 Section 31 fees totaled $1,137M. Capital expenditur
Slide 28: Non-GAAP Solutions Organic Revenue Growth
Non-GAAP Solutions Organic Revenue Growth Solutions Current Prior-year Total variance Organic impact Other impact1 period period (US$ in Millions) $ % $ % $ % 3Q24 pro forma variance2 $904 $821 83 10 % 81 10 % 2 —% 3Q24 906 694 212 31 % 64 9% 148 21 % 2Q24 901 673 228 34 % 62 9% 166 25 % 1Q24 871 64
Slide 29: Market Services Additional Detail
Market Services Additional Detail (US$ in millions) 3Q24 2Q24 1Q24 4Q23 3Q23 U.S. Equity Derivatives Trading $107 $90 $91 $91 $92 U.S. Cash Equity Trading 82 86 74 74 71 European Cash Equity Trading 25 26 26 24 22 U.S. Tape Plans 35 31 28 34 35 Other1 17 17 18 24 16 Market Services net revenue $266
Slide 30: Market Services Organic Revenue Growth
Market Services Organic Revenue Growth Market Services Segment Total variance Organic impact Other impact1 Current Prior-year (US$ in millions) $ % $ % $ % period period 3Q24 $266 $236 30 13 % 30 13 % — —% 2Q24 250 242 8 3% 8 3% — —% 1Q24 237 260 (23) (9)% (23) (9)% — —% 4Q23 247 245 2 1% 1 —% 1 —%
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