Slide 1: Nasdaq 4Q23 Quarterly Update
Nasdaq 4Q23 Quarterly Update January 31, 2024
Slide 2: Disclaimers: Non-GAAP Information
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: Disclaimers: Forward-Looking Statements
Disclaimers Cautionary Note Regarding Forward-Looking Statements Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and
Slide 4: Strategic Update
Strategic Update “We delivered another strong year of operating performance in a dynamic economic and capital markets backdrop. We executed well across our business in 2023, maintaining our listings leadership in the U.S., achieving a breakthrough year for Verafin in our strategy to move upmarket, a
Slide 5: Pillars of Strategy
Pillars of Strategy Recent Accomplishments ◦ Nasdaq continued cloud progress migrating U.S. options exchange, Nasdaq GEMX, to Amazon Web Services (AWS). Liquidity ◦ Market technology continued progress in Latin America including a partnership with nuam exchange, formed by the Enhance liquidity by mo
Slide 6: Solid execution resulting in resilient growth in 2023
Solid execution resulting in resilient growth in 2023 Total ($) Year over year Year over year change (%)* organic change (%) 4Q23 Net Revenues $1,117M +23% +7% 4Q23 Solutions Revenue $860M +32% +9% 2023 Net Revenues $3,895M +9% +5% 2023 Solutions Revenue $2,869M +13% +7% Annualized Recurring Revenue
Slide 7: Capital Access Platforms - Operational Highlights
Capital Access Platforms - Operational Highlights 81% +$31B • Maintained listings leadership for the fifth straight year with 103 operating company IPOs that raised Operating Index LTM more than $11 billion in proceeds, as well as 18 company IPO ETP AUM net companies with $377 billion in market valu
Slide 8: Financial Technology - Operational Highlights
Financial Technology - Operational Highlights • Completed the acquisition of Adenza, bolstering Nasdaq's 4Q23 2023 position as a key provider of risk management solutions to the global financial system. New Adenza Clients +6 +23 • Since closing the acquisition on November 1, Adenza has added 6 new c
Slide 9: Market Services - Operational Highlights
Market Services - Operational Highlights • Realized record 4Q closing cross volume in 4Q23 for U.S. cash equities trading. 72% #1 31% • Completed the migration of a second Nasdaq options exchange to the cloud. #1 market share in single venue of #1 market share in Euro cash equities liquidity for tra
Slide 10: 2024 Strategic Priorities
2024 Strategic Priorities Successfully • Continue the successful integration of Adenza, as we have made great progress on the initial phase of the integrate Adenza integration and have a clear path to completion. • Accelerate the impact of our divisional structure to Accelerate the impact of activat
Slide 11: Financial Performance
Financial Performance “I am excited to join Nasdaq at such a transformational time for the firm. Despite an uncertain environment, we delivered solid financial performance and strong cash flow generation. With our acquisition of Adenza now closed, we are focused on achieving our deal-related financi
Slide 12: 2023 Consolidated Financial Performance
2023 Consolidated Financial Performance Driving Resilient Growth, Non-GAAP Financial Results Creating Sustainable Value (US$ millions, except per share) 2023 2022 %Δ of which Adenza $149 +5% Net Revenues $3,895 $3,582 9% Organic net revenue growth Organic 5% Solutions Revenues $2,869 $2,546 13% $149
Slide 13: 4Q23 Consolidated Financial Performance
4Q23 Consolidated Financial Performance Driving Resilient Growth, Non-GAAP Financial Results Creating Sustainable Value of which (US$ millions, except per share) 4Q23 4Q22 %Δ Adenza +7% Organic net Net Revenues $1,117 $906 23% $149 revenue growth Organic 7% Solutions Revenues $860 $650 32% $149 Orga
Slide 14: Recurring Revenue KPIs Reflect Solid Growth
Recurring Revenue KPIs Reflect Solid Growth Annualized Recurring Revenue ($Ms) Annualized SaaS Revenues ($Ms) Nasdaq ARR ex. Adenza Adenza ARR Organic ARR growth (YoY) Nasdaq SaaS Annualized Revenue Adenza SaaS Annualized Revenue Total SaaS as a % of ARR ex. Adenza $2,585 $910 $98 $458 $755 $773 $2,
Slide 15: Capital Access Platforms - Financial Performance
Capital Access Platforms - Financial Performance Period ending and average ETP AUM ($B)* (US$ millions) 4Q23 4Q22 $Δ %Δ (organic) Period ending ETP AUM ($B) Average ETP AUM ($B) Data and Listing Services $189 $182 $7 3% $473 $418 Index $146 $116 $30 26% $366 $423 $436 Workflow and Insights $126 $121
Slide 16: Financial Technology - Financial Performance
Financial Technology - Financial Performance %Δ of which (US$ millions) 4Q23 4Q22 $Δ Adenza (organic) +8% +10% Regulatory Technology $170 $82 $88 17% $74 Capital Markets Technology $229 $149 $80 3% $75 Organic YoY Organic YoY revenue growth ARR growth Total Revenues $399 $231 $168 8% $149 Operating
Slide 17: Supplemental Adenza Financial Information
Supplemental Adenza Financial Information The notes below provide additional information regarding Adenza’s performance for the full year 2023 and Nasdaq’s ownership period of November and December. 17 *Please see Appendix for non-GAAP reconciliations.
Slide 18: Market Services - Financial Performance
Market Services - Financial Performance %Δ (US$ millions) 4Q23 4Q22 $Δ Despite challenging market volume (organic) growth across most asset classes, U.S. equity derivatives $91 $96 $(5) (5)% we delivered: U.S. cash equities $74 $72 $2 3% European cash equities1 $24 $24 $0 (4)% +3% U.S. cash equities
Slide 19: Supporting Growth with Appropriate Resources
Supporting Growth with Appropriate Resources 2024 Non-GAAP Operating 4Q23 Non-GAAP Operating Expense +2% Expense Guidance1 $504 Organic growth $460 $35 Year-over-Year $2.105B-$2.185B vs. • The midpoint of our guidance reflects pro forma growth of 5%. This includes a full year of Adenza and the in-ye
Slide 20: With $1.6 billion of free cash flow, we have started to de-lever
With $1.6 billion of free cash flow, we have started to de-lever and 1 finished 2023 at 4.3x gross leverage Gross Leverage Ratio Bridge 2.8x (0.1)x 0.1x 4.3x (0.8)x (0.1)x 2.4x 3Q23 adj. Adenza Debt Adenza Nasdaq Change 4Q23 adj. leverage debt repayment 2023 LTM EBITDA in Euro rate and leverage rati
Slide 21: Appendix
Appendix
Slide 22: Organizational Structure to Deliver for Nasdaq's Clients and Shareholders
Organizational Structure to Deliver for Nasdaq's Clients and Shareholders 22
Slide 23: Net Revenues
Reclassified Net Revenues (U.S.$ millions) 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 2023 2022 2021 2020 2019 Data and Listing Services $ 189 $ 188 $ 187 $ 185 $ 182 $ 179 $ 182 $ 181 $ 749 $ 727 $ 678 $ 572 $ 541 Index 146 144 129 110 116 125 124 122 528 486 459 324 223 Workflow and Insights 126 124
Slide 24: Non-GAAP Operating Income and Margin
Reclassified Non-GAAP Operating Income and Margin mn (U.S.$ millions) 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 1 2023 2022 2021 2020 2019 Capital Access Platforms Net revenues 461 456 438 415 419 422 421 418 1,770 1,682 1,566 1,285 1,122 Expenses 210 202 197 190 209 189 181 187 799 768 724 636 575 Op
Slide 25: Debt Overview
Debt Overview Well Laddered Debt Maturities $10.0B Net Debt (US$ millions) 12/31/2023 9/30/2023 Maturity Date 1,300 Commercial Paper $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 $— Nov 2026 900 1.75% Eu
Slide 26: Historical Cash Flow / Uses of Cash Flow
Historical Cash Flow / Uses of Cash Flow Free Cash Flow Calculation 2023 2022 2021 2020 2020 - 2023 (US$ millions) • 2023 free cash flow excluding Section Cash flow from operations $1,696 $1,706 $1,083 $1,252 $5,737 31 fees totaled $1,630 million. Capital expenditure (158) (152) (163) (188) (661) •
Slide 27: Total Variance Net Impacts: 4Q23
Total Variance Net Impacts: 4Q23 Total Variance Organic Impact Acq. & Div. Impact1 FX Impact All figures in US$ Millions 4Q23 4Q22 $M % $M % $M % $M % Data and Listing Services $189 $182 $7 4 % $6 3 % $— — % $1 1 % Index 146 116 30 26 % 30 26 % — — % — — % Workflow and Insights 126 121 5 4 % 4 3 % —
Slide 28: Total Variance Net Impacts: 2023
Total Variance Net Impacts: 2023 Total Variance Organic Impact Acq. & Div. Impact1 FX Impact All figures in US$ Millions 2023 2022 $M % $M % $M % $M % Data and Listing Services $749 $727 $22 3 % $22 3 % $— — % $— — % Index 528 486 42 9 % 42 9 % — — % — — % Workflow and Insights 493 469 24 5 % 22 5 %
Slide 29: Solutions Organic Revenue Growth
Solutions Organic Revenue Growth Solutions Total Variance Organic Impact Other Impact (1) Current Prior-year All figures in US$ Millions $ % $ % $ % Period Period 4Q23 $860 $650 210 32 % 58 9% 152 23 % 3Q23 694 639 55 9% 52 8% 3 —% 2Q23⁽²⁾ 674 637 37 6% 36 6% 1 —% 1Q23⁽²⁾ 646 623 23 4% 29 5% (6) (1)
Slide 30: Market Services Organic Revenue Growth
Market Services Organic Revenue Growth Market Services Division Total Variance Organic Impact Other Impact (1) Current Prior-year All figures in US$ Millions $ % $ % $ % Period Period 4Q23 $247 $245 2 1% 1 —% 1 —% 3Q23 236 239 (3) (1)% (4) (2)% 1 —% 2Q23⁽²⁾ 250 252 (2) (1)% — —% (2) (1)% 1Q23⁽²⁾ 267
Slide 31: Market Services Additional Detail
Market Services Additional Detail (US$ in Millions) 4Q23 3Q23 2Q23 1Q23 4Q22 U.S. Equity Derivatives Trading $91 $92 $89 $102 $96 U.S. Cash Equity Trading 74 71 79 77 72 European Cash Equity Trading 24 22 24 26 24 U.S. Tape Plans 34 35 35 36 36 Other1 24 16 15 19 17 Market Services Net Revenues $247
Slide 32: Summary of Historical Financial Results
Summary of Historical Financial Results Non-GAAP Results 2023 YoY % 2022 YoY % 2021 YoY % 2020 YoY % (US$ Millions, except EPS) Chg Chg Chg Chg Solutions Revenues $2,869 13% $2,546 9% $2,338 22% $1,922 11% Market Services Net Revenues 987 —% 988 (2)% 1,005 11% 902 27% Other Revenues 39 (19)% 48 (38)
Slide 33: Adenza Non-GAAP Reconciliations
Adenza Non-GAAP Reconciliations (all $ figures in millions) 3Q23 YTD FY23 3Q23 YTD FY23 Revenues $393 $583 Cash flow from operations $(39) $78 Adjusted EBITDA $207 $342 Capital expenditure (20) (26) Adjusted EBITDA Margin 53% 59% Free cash flow $(59) $52 Interest paid 163 182 Net (Loss) $(69) $(151)
Slide 34: Our ESG Strategy
Our ESG Strategy 2023 Highlights External Impact • Nasdaq Capital Access Platforms division launched three new offerings – Nasdaq Metrio, Nasdaq ESG Analytics, and AI-powered Nasdaq Sustainable Lens – to help corporates better streamline their sustainability impact journeys. • Hosted Nasdaq’s inaugu
Slide 35: 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 36: 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 36