(Reuters) -Nasdaq beat first-quarter profit expectations on Thursday as the exchange operator benefited from higher market volatility and strong demand for its fintech and solutions products, sending its shares up 1% before the bell.
Total average daily volume of options and futures contracts rose to 256.01 thousand compared to 241.67 thousand from the same quarter last year.
To diversify its revenue streams, the company has been expanding outside its market-sensitive core activities of trading and listing to products that help financial institutions navigate compliance requirements and safeguard against financial crimes.
With markets remaining volatile in the first quarter amid economic uncertainty and the trade war between the United States and China, companies have been spending on products that help safeguard them from market volatility.
Revenue from Nasdaq’s financial technology business climbed 10% from a year ago to $432 million, while revenue at the company’s solutions business rose nearly 9% to $947 million.
Net revenue in the quarter came in at $1.24 billion, above analysts’ expectation of $1.23 billion, according to data compiled by LSEG.
“Nasdaq delivered one of its strongest quarters yet, with all three divisions achieving robust revenue growth and contributing to stellar EPS growth,” Nasdaq Executive Vice President and CFO Sarah Youngwood said.
Net profit attributable to the company on an adjusted basis came in at $456 million, or 79 cents per share, in the first quarter ended March 31, compared with $367 million, or 63 cents per share, a year earlier.
Analysts on average had expected a profit of 77 cents.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Pooja Desai)
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