Nasdaq (NASDAQ: NDAQ) reported $4.2 billion in whole revenues for the total yr 2019, declining by 0.4% (y-o-y) because of low volatility in money equities and fairness choices market. Nonetheless, web revenues remained comparatively secure, because of 10% (y-o-y) progress in recurring revenues from non-trading segments. Notably, Nasdaq’s expertise options enterprise noticed a 25%(y-o-y) progress, pushed by the corporate’s acquisition of Cinnober even because it continued to develop deal volumes. Trefis highlights the important thing sources of Nasdaq’s revenues in an interactive dashboard together with our projections for 2020. Whereas the Market Expertise section accounts for lower than 10% of Nasdaq’s high line as of now, the section can doubtlessly develop at an annual charge of as much as 10% over the approaching years to double in dimension by 2025.
A Fast Look At Nasdaq’ Revenues
Nasdaq reported $4.2 billion in Whole Revenues for full-year 2019. It consists of 4 segments:
- Market Providers: $2.6 billion in FY2019 (62% of Whole Revenues). It consists of revenue from money fairness buying and selling, fairness derivatives buying and selling, mounted revenue buying and selling, and commerce administration providers companies.
- Company Providers: $496 million in FY2019 (12% of Whole Revenues). It consists of revenue from itemizing service and company options companies. Investor relations administration instruments, company governance instruments, regulatory compliance instruments are key merchandise provided beneath this section.
- Info Providers: $779 million in FY2019 (18% of Whole Revenues). The corporate gives market knowledge, licensed Nasdaq indices, and funding evaluation providers to monetary establishments, asset managers, and brokers beneath this section.
- Market Expertise: $338 million in FY2019 (8% of Whole Revenues). The corporate gives buying and selling and settlement expertise options to exchanges, banks, brokers, and so forth., as a expertise supplier.
Non-trading segments are key drivers of Nasdaq’s high line
- Although Nasdaq is the second-largest inventory trade on the earth with a market capitalization of practically $11.1 billion, it generates 65% of its web revenues from non-trading segments resembling company providers, data providers, and market expertise.
- Since 2015, the market providers section (e-trading enterprise) has added $141 million, whereas the non-trading segments have added $304 million to the corporate’s web income progress.
- In 2019, Market Expertise and Info Providers segments noticed growths of 25% and 9% (y-o-y), respectively.
- Per current filings, Nasdaq’s non-trading segments are more likely to develop at a 5-7% charge within the medium time period.
Market Expertise’s order consumption surged throughout the fourth quarter
- After buying Quandl and RedQuarry, and increasing its data providers enterprise, Nasdaq acquired Cinnober in January 2019.
- The acquisition led to a 25% surge in Market Expertise revenues, which had remained comparatively secure when it comes to revenues over the previous couple of years.
- The Market Expertise section offers buying and selling expertise options to exchanges, regulators, brokers, banks, and so forth.
- The section order consumption elevated from $62 million in Q3’19 to $204 million in This autumn’19.
- Furthermore, Airbus’ wholly-owned subsidiary Skytra chosen Nasdaq as a expertise supplier for its upcoming derivatives buying and selling venue for the air journey business to hedge income danger.