Abstract Tech

Nasdaq Third Quarter Earnings Recap: Innovation Continues to Drive Growth

On October 24, Nasdaq reported its third quarter 2024 earnings, delivering its fourth consecutive quarter of double-digit solutions growth. Nasdaq's strong quarterly performance reflects the progress the company has made toward achieving its strategic priorities: Integrate, Innovate, and Accelerate.  

 

Built on its history of innovation and industry leadership, Nasdaq continues to leverages technology as a critical enabler of the business and a core driver of success helping to unlock value for clients and partners. One area where this is particularly evident is through the strong performance of the Financial Technology division heading into the one-year anniversary of the Adenza acquisition.  

 

Speaking on the acquisition, Adena Friedman, Nasdaq Chair and CEO, said, “Investors are really appreciating what we can do to deliver for our customers in new ways. How can we take Calypso, which is a risk management tool, and AxiomSL, which is a regulatory reporting tool to make sure that we are innovating in those? We have new AI capabilities that we are introducing, but also we are delivering as a platform and as a strategic partner for our customers."  

 

For example, in October, Calypso announced a new methodology to conduct investment portfolio risk calculations and produce predictive analytics using an AI-based machine learning capability. This technology allows financial institutions to improve the efficiency of conducting the most complex trading and regulatory risk calculations with up to 100 times faster processing speeds. 

 

Nasdaq achieved several other key innovation milestones to drive further growth across the company in the third quarter.  

 

Leveraging AI to Drive Productivity and Advance Product Roadmaps 

 

Nasdaq's approach for AI is within two areas – “on the business” and “in the product.” These strategies focus on how Nasdaq can leverage AI across the suite of solutions to make the biggest impact for clients and get AI tools in the hands of team members to enable them to be more efficient and effective. Nasdaq launched new AI-enabled products, focused on helping clients better solve their most pressing challenges.  

 

Nasdaq Verafin launched an expansion of its Targeted Typology Analytics, which provides new detection capabilities for identifying potential instances of terrorist financing and drug trafficking activity. This innovative approach to fighting financial crime applies advanced AI techniques to more effectively detect suspicious activity based on the unique characteristics and red flags of specific underlying crimes. After an extensive Beta program, the terrorist financing analytic is expected to be released later this year.  

 

Nasdaq also continued to focus on equipping employees with AI tools to help their work processes become more efficient and effective. Nasdaq achieved a major milestone with the rollout of AI Copilot tools to 100% of the company's developers. The utilization of these tools is designed to help developers increase productivity, while driving Nasdaq's product roadmap. 
 

In addition, Nasdaq launched an internal Gen AI platform that features custom-built skills designed to enhance efficiency. Nearly 50% of employees are engaging with the platform, and less than two months since the launch, roughly 400 unique skills have been deployed across the platform. 

 

Powering Innovation Through our Products and Solutions  

 

Nasdaq continues to drive innovation by expanding its suite of new products and capabilities. 

 

The Index business was recently named Best Index Provider by Structured Retail Products. In partnership with Nasdaq's clients, the company brought to market 35 new investment products in the third quarter, with a focus on insurance annuity vehicles, options overlay products, and products launched outside of the U.S. This brings the total number of new products launched in 2024 to 82 total, through the end of the third quarter. 

 

The Market Services division migrated Nasdaq International Securities Exchange (ISE) to its next-generation derivatives platform, Fusion. Four of Nasdaq’s U.S. markets and one European equity derivatives market are operating on this platform which provides enhanced performance, including lower latency, higher throughput, and increased productivity.  

 

A Look Ahead  

 

Nasdaq's ability to advance innovation across its business remains a key strategic priority heading into the final months of 2024, as the company continues to look at ways to improve processes, enhance productivity, and leverage technology to better serve its global client base.  

 

“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 significant operating leverage. Looking ahead, we remain well positioned to execute on our next phase of sustainable growth,” said Sarah Youngwood, Executive Vice President and CFO.  

 

Please visit Nasdaq's Investor Relations website for further information on Nasdaq’s quarterly results. 

 

 

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 that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, dividend program, trading volumes, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, environmental, de-leveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. 

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