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Financial Services

Nasdaq reports 2Q earnings beat on rising demand for anti-financial crime solutions

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) has reported second-quarter earnings that beat expectations as rising demand for software to tackle financial crime compensated for a flat performance from trading services.

The stock exchange operator reported a 4% year-over-year increase in net revenues to $925 million for the three months to June 30, 2023.

Anti-Financial Crime revenue jumped 19% from a year earlier as large financial institutions accelerated their adoption of Verafin’s fraud detection and anti-money laundering solution, it noted.

Adjusted earnings per share for the period came in 3% higher at $0.71, beating the $0.65 consensus estimate of eight analysts, according to Zacks Investment Research.

“Nasdaq achieved another quarter of solid financial results in an uncertain environment as we took a significant step to expand our ability to serve our financial clients in solving their most complex operational challenges,” chair and CEO Adena Friedman commented in a statement.

The exchange noted that its planned acquisition of software firm Adenza represents another critical step in its multi-year transformation to become a leading technology partner to the financial system, with a specific focus on managing liquidity and capital risk, reducing financial crime, and meeting regulatory obligations.

“Our goal is to deliver mission-critical platforms that enhance liquidity, transparency, and integrity of the global financial system,” Friedman added.

Contact the author at stephen.gunnion@proactiveinvestors.com

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