QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended | ||||||||
OR | ||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period | from ________ to ________ |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
No Changes | |||||||||||
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding at April 26, 2022 | ||||||||||
Common Stock, $0.01 par value per share | shares |
Page | ||||||||
Part I. FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Default funds and margin deposits (including restricted cash and cash equivalents of $ | |||||||||||
Financial investments | |||||||||||
Receivables, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease assets | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Section 31 fees payable to SEC | |||||||||||
Accrued personnel costs | |||||||||||
Deferred revenue | |||||||||||
Other current liabilities | |||||||||||
Default funds and margin deposits | |||||||||||
Short-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred tax liabilities, net | |||||||||||
Operating lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity | |||||||||||
Nasdaq stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Common stock in treasury, at cost: | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total Nasdaq stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenues: | |||||||||||
Market Technology | $ | $ | |||||||||
Investment Intelligence | |||||||||||
Corporate Platforms | |||||||||||
Market Services | |||||||||||
Other revenues | |||||||||||
Total revenues | |||||||||||
Transaction-based expenses: | |||||||||||
Transaction rebates | ( | ( | |||||||||
Brokerage, clearance and exchange fees | ( | ( | |||||||||
Revenues less transaction-based expenses | |||||||||||
Operating expenses: | |||||||||||
Compensation and benefits | |||||||||||
Professional and contract services | |||||||||||
Computer operations and data communications | |||||||||||
Occupancy | |||||||||||
General, administrative and other | |||||||||||
Marketing and advertising | |||||||||||
Depreciation and amortization | |||||||||||
Regulatory | |||||||||||
Merger and strategic initiatives | |||||||||||
Restructuring charges | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Other (loss) income | ( | ||||||||||
Net income from unconsolidated investees | |||||||||||
Income before income taxes | |||||||||||
Income tax provision | |||||||||||
Net income | |||||||||||
Net loss attributable to noncontrolling interests | |||||||||||
Net income attributable to Nasdaq | $ | $ | |||||||||
Per share information: | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
Cash dividends declared per common share | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation losses | ( | ( | |||||||||
Income tax expense(1) | ( | ( | |||||||||
Foreign currency translation, net | ( | ( | |||||||||
Comprehensive income | |||||||||||
Comprehensive loss attributable to noncontrolling interests | |||||||||||
Comprehensive income attributable to Nasdaq | $ | $ |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Shares | $ | Shares | $ | ||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Share repurchase program | ( | ( | ( | ( | |||||||||||||||||||
ASR agreement(1) | ( | ( | — | — | |||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||
Stock option exercises, net | — | — | — | ||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Common stock in treasury, at cost | |||||||||||||||||||||||
Beginning balance | ( | ( | |||||||||||||||||||||
Other employee stock activity | — | ( | ( | ( | |||||||||||||||||||
Ending balance | ( | ( | |||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||
Beginning balance | ( | ( | |||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||
Ending balance | ( | ( | |||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Net income attributable to Nasdaq | |||||||||||||||||||||||
Cash dividends declared per common share | ( | ( | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Total Nasdaq stockholders’ equity | |||||||||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Net activity related to noncontrolling interests | ( | ( | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Total Equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | |||||||||||
Net income from unconsolidated investees | ( | ( | |||||||||
Other reconciling items included in net income | |||||||||||
Net change in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Receivables, net | ( | ||||||||||
Other assets | ( | ||||||||||
Accounts payable and accrued expenses | |||||||||||
Section 31 fees payable to SEC | ( | ( | |||||||||
Accrued personnel costs | ( | ( | |||||||||
Deferred revenue | |||||||||||
Other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of securities | ( | ( | |||||||||
Proceeds from sales and redemptions of securities | |||||||||||
Acquisition of businesses, net of cash and cash equivalents acquired | ( | ||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Investments related to default funds and margin deposits, net (1) | ( | ( | |||||||||
Other investing activities | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from (repayments of) commercial paper, net | ( | ||||||||||
Repayments of borrowings under our credit commitment | ( | ||||||||||
Proceeds from issuances of debt, net of issuance costs and utilization of credit commitment | |||||||||||
Repurchases of common stock | ( | ( | |||||||||
ASR agreement | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Payments related to employee shares withheld for taxes | ( | ( | |||||||||
Default funds and margin deposits | |||||||||||
Other financing activities | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | $ | |||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | |||||||||||
Total | $ | $ | |||||||||
Supplemental Disclosure Cash Flow Information | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refund | $ | $ |
Three Months Ended March 31, 2021 | |||||||||||
As Reported | Adjustment | Adjusted | |||||||||
(in millions) | |||||||||||
Net cash provided by operating activities | $ | $ | $ | ||||||||
Net cash used in investing activities | ( | ( | ( | ||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | ( | ( | ( | ||||||||
Net decrease in cash, cash equivalents, restricted cash and cash equivalents | ( | ( | ( | ||||||||
Cash, cash equivalents, restricted cash and cash equivalents at beginning of period | |||||||||||
Cash, cash equivalents, restricted cash and cash equivalents at end of period | $ | $ | $ | ||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||
Restricted cash and cash equivalents | |||||||||||
Restricted cash and cash equivalents (Default funds and margin deposits) | |||||||||||
Total | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Market Technology | |||||||||||
Anti Financial Crime Technology | $ | $ | |||||||||
Marketplace Infrastructure Technology | |||||||||||
Investment Intelligence | |||||||||||
Market data | |||||||||||
Index | |||||||||||
Analytics | |||||||||||
Corporate Platforms | |||||||||||
Listing services | |||||||||||
IR & ESG Services | |||||||||||
Market Services | |||||||||||
Transaction-based trading and clearing, net | |||||||||||
Trade management services | |||||||||||
Other revenues | |||||||||||
Revenues less transaction-based expenses | $ | $ |
Market Technology | Analytics | IR & ESG Services | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Remainder of 2022 | $ | $ | $ | $ | |||||||||||||||||||
2023 | |||||||||||||||||||||||
2024 | |||||||||||||||||||||||
2025 | |||||||||||||||||||||||
2026 | |||||||||||||||||||||||
2027+ | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in millions) | |||||
Goodwill | $ | ||||
Acquired Intangible Assets | |||||
Total Net Liabilities Acquired | ( | ||||
Purchase Consideration | $ |
Customer Relationships | Technology | Trade Name | Total Acquired Intangible Assets | |||||||||||
Intangible asset value (in millions) | $ | $ | $ | $ | ||||||||||
Discount rate used | % | % | % | |||||||||||
Estimated average useful life |
(in millions) | |||||
Market Technology | |||||
Balance at December 31, 2021 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2022 | $ | ||||
Investment Intelligence | |||||
Balance at December 31, 2021 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2022 | $ | ||||
Corporate Platforms | |||||
Balance at December 31, 2021 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2022 | $ | ||||
Market Services | |||||
Balance at December 31, 2021 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2022 | $ | ||||
Total | |||||
Balance at December 31, 2021 | $ | ||||
Foreign currency translation adjustments | ( | ||||
Balance at March 31, 2022 | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Finite-Lived Intangible Assets | (in millions) | ||||||||||
Gross Amount | |||||||||||
Technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade names and other | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total gross amount | $ | $ | |||||||||
Accumulated Amortization | |||||||||||
Technology | $ | ( | $ | ( | |||||||
Customer relationships | ( | ( | |||||||||
Trade names and other | ( | ( | |||||||||
Foreign currency translation adjustment | |||||||||||
Total accumulated amortization | $ | ( | $ | ( | |||||||
Net Amount | |||||||||||
Technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade names and other | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total finite-lived intangible assets | $ | $ | |||||||||
Indefinite-Lived Intangible Assets | |||||||||||
Exchange and clearing registrations | $ | $ | |||||||||
Trade names | |||||||||||
Licenses | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total indefinite-lived intangible assets | $ | $ | |||||||||
Total intangible assets, net | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Amortization expense | $ | $ | |||||||||
(in millions) | |||||
Remainder of 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027+ | |||||
Total | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
(in millions) | |||||||||||
Financial investments | $ | $ | |||||||||
Equity method investments | $ | $ | |||||||||
Equity securities | $ | $ |
Balance at December 31, 2021 | Additions | Revenue Recognized | Adjustments | Balance at March 31, 2022 | |||||||||||||
(in millions) | |||||||||||||||||
Market Technology | $ | $ | $ | ( | $ | ( | $ | ||||||||||
Investment Intelligence | ( | ||||||||||||||||
Corporate Platforms: | |||||||||||||||||
Initial Listing | ( | ( | |||||||||||||||
Annual Listings | |||||||||||||||||
IR & ESG Services | ( | ||||||||||||||||
Other | ( | ( | |||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ | ||||||||||
Fiscal year ended: | 2022 | 2023 | 2024 | 2025 | 2026 | 2027+ | Total | ||||||||||||||||
(in millions) | |||||||||||||||||||||||
Market Technology | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Investment Intelligence | |||||||||||||||||||||||
Corporate Platforms: | |||||||||||||||||||||||
Initial Listings | |||||||||||||||||||||||
Annual Listings | |||||||||||||||||||||||
IR & ESG Services | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
December 31, 2021 | Additions | Payments, Foreign Currency Translation and Accretion | March 31, 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Short-term debt - commercial paper | $ | $ | $ | ( | $ | ||||||||||||||||||
2022 Notes | |||||||||||||||||||||||
2024 Notes | |||||||||||||||||||||||
Total short-term debt | $ | $ | $ | ( | $ | ||||||||||||||||||
Long-term debt - senior unsecured notes: | |||||||||||||||||||||||
2026 Notes | |||||||||||||||||||||||
2029 Notes | ( | ||||||||||||||||||||||
2030 Notes | ( | ||||||||||||||||||||||
2050 Notes | |||||||||||||||||||||||
2031 Notes | |||||||||||||||||||||||
2040 Notes | |||||||||||||||||||||||
2033 Notes | ( | ||||||||||||||||||||||
2052 Notes | |||||||||||||||||||||||
2020 Credit Facility | ( | ( | |||||||||||||||||||||
Total long-term debt | $ | $ | $ | ( | $ | ||||||||||||||||||
Total debt obligations | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Share-based compensation expense before income taxes | $ | $ | |||||||||
Income tax benefit | ( | ( | |||||||||
Share-based compensation expense after income taxes | $ | $ |
Restricted Stock | |||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at January 1, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at March 31, 2022 | $ |
PSUs | |||||||||||||||||||||||
One-Year Program | Three-Year Program | ||||||||||||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Unvested at January 1, 2022 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Unvested at March 31, 2022 | $ | $ |
Number of Stock Options | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||
Outstanding at December 31, 2021 | $ | $ | ||||||||||||
Granted | ||||||||||||||
Outstanding at March 31, 2022 | $ | $ | ||||||||||||
Exercisable at March 31, 2022 | $ | $ |
Three Months Ended March 31, 2022 | ||||||||
Number of shares of common stock repurchased | ||||||||
Average price paid per share | $ | |||||||
Total purchase price (in millions) | $ |
Declaration Date | Dividend Per Common Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
January 26, 2022 | $ | March 11, 2022 | $ | March 25, 2022 | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Numerator: | (in millions, except share and per share amounts) | ||||||||||
Net income attributable to common shareholders | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding for basic earnings per share | |||||||||||
Weighted-average effect of dilutive securities: | |||||||||||
Employee equity awards | |||||||||||
Weighted-average common shares outstanding for diluted earnings per share | |||||||||||
Basic and diluted earnings per share: | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ |
March 31, 2022 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
State owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
State owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2022 | |||||||||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||||||||
(in millions) | |||||||||||||||||
Default fund contributions | $ | $ | $ | ||||||||||||||
Margin deposits | |||||||||||||||||
Total | $ | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
(in millions) | |||||||||||
Demand deposits | $ | $ | |||||||||
Central bank certificates | |||||||||||
Restricted cash and cash equivalents | $ | $ | |||||||||
European government debt securities | |||||||||||
Reverse repurchase agreements | |||||||||||
Multilateral development bank debt securities | |||||||||||
Investments | $ | $ | |||||||||
Total | $ | $ |
March 31, 2022 | |||||
(in millions) | |||||
Commodity and seafood options, futures and forwards | $ | ||||
Fixed-income options and futures | |||||
Stock options and futures | |||||
Index options and futures | |||||
Total | $ |
March 31, 2022 | March 31, 2021 | ||||||||||
Commodity and seafood options, futures and forwards | |||||||||||
Fixed-income options and futures | |||||||||||
Stock options and futures | |||||||||||
Index options and futures | |||||||||||
Total |
Leases | Balance Sheet Classification | March 31, 2022 | December 31, 2021 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Current lease liabilities | $ | $ | ||||||||||||||||||
Non-current lease liabilities | Operating lease liabilities | |||||||||||||||||||
Total lease liabilities | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Operating lease cost | $ | $ | ||||||||||||
Variable lease cost | ||||||||||||||
Sublease income | ( | ( | ||||||||||||
Total lease cost | $ | $ |
March 31, 2022 | ||||||||
(in millions) | ||||||||
Remainder of 2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027+ | ||||||||
Total lease payments | ||||||||
Less: interest | ( | |||||||
Present value of lease liabilities | $ |
March 31, 2022 | ||||||||
Weighted-average remaining lease term (in years) | ||||||||
Weighted-average discount rate | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Lease assets obtained in exchange for operating lease liabilities | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Income tax provision | $ | $ | |||||||||
Effective tax rate | % | % | |||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Market Technology | (in millions) | ||||||||||
Total revenues | $ | $ | |||||||||
Operating income | ( | ||||||||||
Investment Intelligence | |||||||||||
Total revenues | |||||||||||
Operating income | |||||||||||
Corporate Platforms | |||||||||||
Total revenues | |||||||||||
Operating income | |||||||||||
Market Services | |||||||||||
Total revenues | |||||||||||
Transaction-based expenses | ( | ( | |||||||||
Revenues less transaction-based expenses | |||||||||||
Operating income | |||||||||||
Corporate Items | |||||||||||
Total revenues | |||||||||||
Operating income (loss) | ( | ( | |||||||||
Consolidated | |||||||||||
Total revenues | $ | $ | |||||||||
Transaction-based expenses | ( | ( | |||||||||
Revenues less transaction-based expenses | $ | $ | |||||||||
Operating income | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Revenues - divested/contributed businesses | $ | $ | |||||||||
Expenses: | |||||||||||
Amortization expense of acquired intangible assets | $ | $ | |||||||||
Merger and strategic initiatives expense | |||||||||||
Restructuring charges | |||||||||||
Expenses - divested/contributed businesses | |||||||||||
Other | |||||||||||
Total expenses | |||||||||||
Operating loss | $ | ( | $ | ( | |||||||
Three Months Ended March 31, 2021 | |||||
(in millions) | |||||
Asset impairment charges and accelerated depreciation expense | $ | ||||
Consulting services | |||||
Other | |||||
Total restructuring charges | $ | ||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||
Revenues less transaction-based expenses | $ | 892 | $ | 851 | 4.8 | % | ||||||||
Operating expenses | 487 | 486 | 0.2 | % | ||||||||||
Operating income | 405 | 365 | 11.0 | % | ||||||||||
Net income attributable to Nasdaq | $ | 284 | $ | 298 | (4.7) | % | ||||||||
Diluted earnings per share | $ | 1.70 | $ | 1.78 | (4.5) | % | ||||||||
Cash dividends declared per common share | $ | 0.54 | $ | 0.49 | 10.2 | % | ||||||||
▪ | Active Market Technology support and SaaS subscription contracts. | |||||||
▪ | Proprietary market data and index data subscriptions as well as subscription contracts for eVestment, Solovis, NDW Research Platform, Nasdaq Fund Network and Nasdaq Data Link. It also includes guaranteed minimum on futures contracts within the Index business. | |||||||
▪ | U.S. and Nordic annual listing fees, IR and ESG products, including subscription contracts for IR Insight, board portals and OneReport, as well as IR advisory services. | |||||||
▪ | Trade Management Services business, excluding one-time service requests. |
Three Months Ended March 31, | Percentage Change | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
Market Technology | $ | 124 | $ | 100 | 24.0 | % | |||||||||||
Investment Intelligence | 284 | 256 | 10.9 | % | |||||||||||||
Corporate Platforms | 168 | 146 | 15.1 | % | |||||||||||||
Market Services | 958 | 1,134 | (15.5) | % | |||||||||||||
Other revenues | 1 | 15 | (93.3) | % | |||||||||||||
Total revenues | $ | 1,535 | $ | 1,651 | (7.0) | % | |||||||||||
Transaction rebates | (581) | (654) | (11.2) | % | |||||||||||||
Brokerage, clearance and exchange fees | (62) | (146) | (57.5) | % | |||||||||||||
Total revenues less transaction-based expenses | $ | 892 | $ | 851 | 4.8 | % | |||||||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Anti Financial Crime Technology | $ | 72 | $ | 42 | 71.4 | % | ||||||||
Marketplace Infrastructure Technology | 52 | 58 | (10.3) | % | ||||||||||
Total Market Technology | $ | 124 | $ | 100 | 24.0 | % | ||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Order intake | $ | 48 | $ | 41 | ||||||||||
ARR | 435 | 416 | ||||||||||||
Quarterly annualized SaaS revenues | 298 | 260 |
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Market Data | $ | 108 | $ | 106 | 1.9 | % | ||||||||
Index | 122 | 102 | 19.6 | % | ||||||||||
Analytics | 54 | 48 | 12.5 | % | ||||||||||
Total Investment Intelligence | $ | 284 | $ | 256 | 10.9 | % |
As of or Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Number of licensed ETPs | 368 | 349 | ||||||||||||
ETP AUM tracking Nasdaq indexes (in billions) | $ | 401 | $ | 385 | ||||||||||
TTM Net appreciation (in billions) | $ | 33 | $ | 127 | ||||||||||
Net impact of ETP sponsor switches (in billions) | $ | (92) | $ | — | ||||||||||
TTM Net inflows in ETP AUM tracking Nasdaq indexes (in billions) | $ | 75 | $ | 52 | ||||||||||
ARR (in millions) | $ | 570 | $ | 542 | ||||||||||
Quarterly annualized SaaS revenues (in millions) | $ | 209 | $ | 184 |
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Listing Services | $ | 107 | $ | 89 | 20.2 | % | ||||||||
IR & ESG Services | 61 | 57 | 7.0 | % | ||||||||||
Total Corporate Platforms | $ | 168 | $ | 146 | 15.1 | % | ||||||||
As of or Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
IPOs | |||||||||||
The Nasdaq Stock Market | 70 | 275 | |||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 13 | 24 | |||||||||
Total new listings | |||||||||||
The Nasdaq Stock Market | 110 | 319 | |||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 19 | 32 | |||||||||
Number of listed companies | |||||||||||
The Nasdaq Stock Market | 4,242 | 3,667 | |||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 1,244 | 1,090 | |||||||||
ARR (in millions) | $ | 576 | $ | 487 | |||||||
Quarterly annualized SaaS revenues (in millions) | $ | 148 | $ | 140 |
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Equity Derivative Trading and Clearing Revenues | $ | 351 | $ | 422 | (16.8) | % | ||||||||
Transaction-based expenses: | ||||||||||||||
Transaction rebates | (232) | (296) | (21.6) | % | ||||||||||
Brokerage, clearance and exchange fees | (7) | (20) | (65.0) | % | ||||||||||
Equity derivative trading and clearing revenues less transaction-based expenses | $ | 112 | $ | 106 | 5.7 | % | ||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
U.S. equity options | |||||||||||
Total industry average daily volume (in millions) | 40.0 | 40.1 | |||||||||
Nasdaq PHLX matched market share | 11.4 | % | 12.9 | % | |||||||
The Nasdaq Options Market matched market share | 8.4 | % | 7.9 | % | |||||||
Nasdaq BX Options matched market share | 2.1 | % | 0.7 | % | |||||||
Nasdaq ISE Options matched market share | 5.9 | % | 7.7 | % | |||||||
Nasdaq GEMX Options matched market share | 2.4 | % | 5.9 | % | |||||||
Nasdaq MRX Options matched market share | 1.8 | % | 1.4 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 32.0 | % | 36.5 | % | |||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||
Total average daily volume of options and futures contracts | 365,611 | 358,365 | |||||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Cash Equity Trading Revenues | $ | 510 | $ | 617 | (17.3) | % | ||||||||
Transaction-based expenses: | ||||||||||||||
Transaction rebates | (349) | (358) | (2.5) | % | ||||||||||
Brokerage, clearance and exchange fees | (55) | (126) | (56.3) | % | ||||||||||
Cash equity trading revenues less transaction-based expenses | $ | 106 | $ | 133 | (20.3) | % | ||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Total U.S.-listed securities | |||||||||||
Total industry average daily share volume (in billions) | 12.9 | 14.7 | |||||||||
Matched share volume (in billions) | 142.2 | 152.6 | |||||||||
The Nasdaq Stock Market matched market share | 16.4 | % | 15.7 | % | |||||||
Nasdaq BX matched market share | 0.5 | % | 0.7 | % | |||||||
Nasdaq PSX matched market share | 0.9 | % | 0.7 | % | |||||||
Total matched market share executed on Nasdaq’s exchanges | 17.8 | % | 17.1 | % | |||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 33.4 | % | 35.2 | % | |||||||
Total market share | 51.2 | % | 52.3 | % | |||||||
Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 1,133,543 | 1,093,684 | |||||||||
Total average daily value of shares traded (in billions) | $ | 7.1 | $ | 7.0 | |||||||
Total market share executed on Nasdaq’s exchanges | 73.0 | % | 78.5 | % | |||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
FICC Revenues | $ | 13 | $ | 16 | (18.8) | % | ||||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Trade Management Services Revenues | $ | 84 | $ | 79 | 6.3 | % | ||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
ARR | $ | 333 | $ | 315 |
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Compensation and benefits | $ | 254 | $ | 239 | 6.3 | % | ||||||||
Professional and contract services | 35 | 27 | 29.6 | % | ||||||||||
Computer operations and data communications | 50 | 44 | 13.6 | % | ||||||||||
Occupancy | 27 | 28 | (3.6) | % | ||||||||||
General, administrative and other | 21 | 13 | 61.5 | % | ||||||||||
Marketing and advertising | 10 | 10 | — | % | ||||||||||
Depreciation and amortization | 67 | 63 | 6.3 | % | ||||||||||
Regulatory | 8 | 7 | 14.3 | % | ||||||||||
Merger and strategic initiatives | 15 | 45 | (66.7) | % | ||||||||||
Restructuring charges | — | 10 | (100.0) | % | ||||||||||
Total operating expenses | $ | 487 | $ | 486 | 0.2 | % | ||||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Interest income | $ | — | $ | 1 | (100.0) | % | ||||||||
Interest expense | (32) | (29) | 10.3 | % | ||||||||||
Net interest expense | (32) | (28) | 14.3 | % | ||||||||||
Other (loss) income | (6) | 1 | (700.0) | % | ||||||||||
Net income from unconsolidated investees | 7 | 57 | (87.7) | % | ||||||||||
Total non-operating income (expenses) | $ | (31) | $ | 30 | (203.3) | % | ||||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
(in millions) | ||||||||||||||
Interest expense on debt | $ | 29 | $ | 26 | 11.5 | % | ||||||||
Accretion of debt issuance costs and debt discount | 2 | 2 | — | % | ||||||||||
Other fees | 1 | 1 | — | % | ||||||||||
Interest expense | $ | 32 | $ | 29 | 10.3 | % | ||||||||
Three Months Ended March 31, | Percentage Change | |||||||||||||
2022 | 2021 | |||||||||||||
($ in millions) | ||||||||||||||
Income tax provision | $ | 91 | $ | 97 | (6.2) | % | ||||||||
Effective tax rate | 24.3 | % | 24.6 | % | ||||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
(in millions, except per share amounts) | ||||||||
U.S. GAAP net income attributable to Nasdaq | $ | 284 | $ | 298 | ||||
Non-GAAP adjustments: | ||||||||
Amortization expense of acquired intangible assets | 40 | 36 | ||||||
Merger and strategic initiatives expense | 15 | 45 | ||||||
Restructuring charges | — | 10 | ||||||
Net income from unconsolidated investee | (6) | (57) | ||||||
Other | 9 | 2 | ||||||
Total non-GAAP adjustments | 58 | 36 | ||||||
Total non-GAAP tax adjustments | (13) | (7) | ||||||
Total non-GAAP adjustments, net of tax | 45 | 29 | ||||||
Non-GAAP net income attributable to Nasdaq | $ | 329 | $ | 327 | ||||
U.S. GAAP effective tax rate | 24.3 | % | 24.6 | % | ||||
Total adjustments from non-GAAP tax rate | (0.2) | % | (0.5) | % | ||||
Non-GAAP effective tax rate | 24.1 | % | 24.1 | % | ||||
Weighted-average common shares outstanding for diluted earnings per share | 167.2 | 167.1 | ||||||
U.S. GAAP diluted earnings per share | $ | 1.70 | $ | 1.78 | ||||
Total adjustments from non-GAAP net income | 0.27 | 0.18 | ||||||
Non-GAAP diluted earnings per share | $ | 1.97 | $ | 1.96 |
March 31, 2022 | December 31, 2021 | |||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | 486 | $ | 393 | ||||||||||
Financial investments | 225 | 208 | ||||||||||||
Total financial assets | $ | 711 | $ | 601 |
Three Months Ended March 31, | Percentage Change | ||||||||||
2022 | 2021 | ||||||||||
Net cash provided by (used in): | (in millions) | ||||||||||
Operating activities | $ | 605 | $ | 394 | 53.6 | % | |||||
Investing activities | (390) | (2,700) | (85.6) | % | |||||||
Financing activities | 368 | 164 | 124.4 | % | |||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (164) | (177) | (7.3) | % | |||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 419 | (2,319) | (118.1) | % | |||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | 5,496 | 5,979 | (8.1) | % | |||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | 5,915 | $ | 3,660 | 61.6 | % | |||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | 486 | $ | 774 | (37.2) | % | |||||
Restricted cash and cash equivalents | 31 | 38 | (18.4) | % | |||||||
Restricted cash and cash equivalents (default funds and margin deposits) | 5,398 | 2,848 | 89.5 | % | |||||||
Total | $ | 5,915 | $ | 3,660 | 61.6 | % |
2022 | 2021 | ||||||||||
First quarter | $ | 0.54 | $ | 0.49 | |||||||
Maturity Date | March 31, 2022 | December 31, 2021 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Short-term debt - commercial paper | $ | — | $ | 420 | ||||||||||||||||
2022 Notes | December 2022 | 599 | 598 | |||||||||||||||||
2024 Notes | June 2024 | 499 | 499 | |||||||||||||||||
Total short-term debt | $ | 1,098 | $ | 1,517 | ||||||||||||||||
Long-term debt - senior unsecured notes: | ||||||||||||||||||||
2020 Credit Facility | December 2025 | (3) | (4) | |||||||||||||||||
2026 Notes | June 2026 | 498 | 498 | |||||||||||||||||
2029 Notes | March 2029 | 658 | 676 | |||||||||||||||||
2030 Notes | February 2030 | 658 | 676 | |||||||||||||||||
2031 Notes | January 2031 | 643 | 643 | |||||||||||||||||
2033 Notes | July 2033 | 675 | 694 | |||||||||||||||||
2040 Notes | December 2040 | 644 | 644 | |||||||||||||||||
2050 Notes | April 2050 | 486 | 486 | |||||||||||||||||
2052 Notes | March 2052 | 541 | — | |||||||||||||||||
Total long-term debt | $ | 4,800 | $ | 4,313 | ||||||||||||||||
Total debt obligations | $ | 5,898 | $ | 5,830 |
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | ||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.122 | 0.107 | # | N/A | N/A | |||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 6.3 | % | 6.1 | % | 4.5 | % | 83.1 | % | 100.0 | % | ||||||||||||||||||||||
Percentage of operating income | 9.5 | % | (1.8) | % | (10.2) | % | 102.5 | % | 100.0 | % | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (6) | $ | (5) | $ | (4) | $ | — | $ | (15) | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $ | (4) | $ | (1) | $ | (4) | $ | — | $ | (9) | ||||||||||||||||||||||
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||||||||
(in millions) | ||||||||||||||
Swedish Krona | $ | 3,301 | $ | 330 | ||||||||||
British Pound | 177 | 18 | ||||||||||||
Norwegian Krone | 165 | 16 | ||||||||||||
Canadian Dollar | 120 | 12 | ||||||||||||
Australian Dollar | 125 | 13 | ||||||||||||
Euro | 49 | 5 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | ||||||||||||||||||||||
January 2022 | ||||||||||||||||||||||||||
Share repurchase program | 735,865 | $ | 191.91 | 735,865 | $ | 784 | ||||||||||||||||||||
ASR agreement | 1,533,923 | N/A | 1,533,923 | $ | 459 | |||||||||||||||||||||
Employee transactions | 2,177 | $ | 177.91 | N/A | N/A | |||||||||||||||||||||
February 2022 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 459 | ||||||||||||||||||||
Employee transactions | 253,833 | $ | 168.19 | N/A | N/A | |||||||||||||||||||||
March 2022 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 459 | ||||||||||||||||||||
ASR agreement | 342,464 | $ | 173.21 | 342,464 | 459 | |||||||||||||||||||||
Employee transactions | 51,658 | $ | 188.21 | N/A | N/A | |||||||||||||||||||||
Total Quarter Ended March 31, 2022 | ||||||||||||||||||||||||||
Share repurchase program | 735,865 | $ | 191.91 | 735,865 | $ | 459 | ||||||||||||||||||||
ASR agreement | 1,876,387 | $173.21 | 1,876,387 | $ | 459 | |||||||||||||||||||||
Employee transactions | 307,668 | $ | 171.62 | N/A | N/A |
Exhibit Number | ||||||||
Thirteenth Supplemental Indenture, dated as of March 7, 2022, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on March 7, 2022). | ||||||||
101 | The following materials from the Nasdaq, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021; (ii) Condensed Consolidated Statements of Income for the three months end March 31, 2022 and 2021; (iii) Condensed Consolidated Statements of Comprehensive Income for the three months end March 31, 2022 and 2021; (iv) Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months end March 31, 2022 and 2021; (v) Condensed Consolidated Statements of Cash Flows for the three months end March 31, 2022 and 2021; and (vi) notes to condensed consolidated financial statements. | |||||||
104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
Nasdaq, Inc. | ||||||||
(Registrant) | ||||||||
By: | /s/ Adena T. Friedman | |||||||
Name: | Adena T. Friedman | |||||||
Title: | President and Chief Executive Officer | |||||||
Date: | May 4, 2022 | |||||||
By: | /s/ Ann M. Dennison | |||||||
Name: | Ann M. Dennison | |||||||
Title: | Executive Vice President and Chief Financial Officer | |||||||
Date: | May 4, 2022 |