Nasdaq Inc reported a solid jump in third-quarter revenue, driven by demand for anti-financial crime products, and a marked improvement in free cash flow.
The financial services company said third-quarter net revenues increased 6% to $940 million from the year prior. Solutions Businesses revenue climbed 9%, with organic growth of 8%.
Adena Friedman, chair and chief executive, said: “Our third quarter 2023 results reflect Nasdaq’s solid execution amid a continued dynamic economic and capital markets backdrop.
“We experienced some improvement in the IPO environment by welcoming marquee IPOs, we continued to broaden our anti-financial crime clientele, and we introduced new innovations to our products and services.”
Annualized recurring revenue (ARR) increased 6% from the year before with annualized Software-as-a-Service (SaaS) revenues up 11%, representing 37% of ARR.
Anti-financial crime revenue increased 21%, reflecting continued Verafin adoption by small and medium banks, an expansion with an existing Tier 2 financial institution, and surveillance solutions customer growth including Tier 3 banks and retail brokers.
Third-quarter 2023 GAAP diluted earnings per share increased 2% to $0.60, and the company generated more than $1.6 billion of free cash flow over the trailing 12-month period.