Nasdaq Reports Record Quarterly Non-GAAP Diluted Earnings Per Share; Company Delivers Non-GAAP EPS Growth of 14% Year-Over-Year
- Achieved record non-GAAP: operating and net income, as well as diluted EPS for the first quarter of 2016.
- Non-GAAP diluted EPS of
$0.91 for the first quarter of 2016, an increase of 14% compared to the first quarter of 2015. First quarter 2016 GAAP diluted EPS was$0.78 . - Net revenues1 were
$534 million in the first quarter of 2016, up 5% year-over-year. On an organic basis, excluding the impact of foreign exchange and acquisitions, net revenues increased 4% year-over-year. - Non-GAAP operating margin was 48% in the first quarter of 2016, versus 46% in the prior year period.
- In the first quarter of 2016, Nasdaq announced a 28% dividend increase and repurchased
$29 million of common stock. Through dividends and buybacks, Nasdaq returned$70 million to shareholders in the period. - Nasdaq's Board of Directors authorized an additional
$370 million in share repurchases, bringing the total remaining value authorized to$500 million .
"Our relentless focus on applied technology, innovation, and resiliency continues to strengthen our competitive position, deliver value to our clients, and produce record results for shareholders," said
On a non-GAAP basis, first quarter 2016 operating expenses were
1 Represents revenues less transaction-based expenses.
2 Please refer to our reconciliation of GAAP to non-GAAP net income, diluted earnings per share, operating income and operating expenses included in the attached schedules.
"The first quarter of 2016 was very strong in terms of cash flow generation, and we continued to apply our return on invested capital based discipline to direct capital deployment, while also furthering our strong capital return track record with our recent announcement of a 28% increase in the quarterly dividend," said
On a non-GAAP basis, net income attributable to Nasdaq for the first quarter of 2016 was
Please refer to our reconciliation of GAAP to non-GAAP net income, diluted earnings per share, operating income and operating expenses included in the attached schedules.
The company repurchased 490,032 shares for
At
BUSINESS HIGHLIGHTS
Market Services (38% of total
net revenues) - Net revenues were
Equity Derivatives (9% of total net revenues) - Net equity derivative trading and clearing revenues were
$48 million in the first quarter of 2016, up$2 million compared to the first quarter of 2015. The increase in equity derivatives revenues was primarily driven by higherU.S. industry trading volumes and higherU.S. average net capture, partially offset by lower U.S. market share.
Cash Equities (13% of total net revenues) - Net cash equity trading revenues were$70 million in the first quarter of 2016, up$11 million compared to the first quarter of 2015. The increase in cash equity revenues resulted primarily from higher industry trading volumes as well as higher average net capture, partially offset by lower market share and the negative impact of changes in foreign exchange rates. In addition, the increase reflects the inclusion of revenues associated with our acquisition of Chi-X Canada.Fixed Income, Currency and Commodities (4% of total net revenues) - Net FICC trading and clearing revenues were
$20 million in the first quarter of 2016, down$4 million from the first quarter of 2015, due to the negative impact of NFX trading incentives and a decline inU.S. fixed income revenues, partially offset by higher European fixed income and commodities revenues.Access and Broker Services (12% of total net revenues) - Access and broker services revenues were
$63 million in the first quarter of 2016, up$4 million compared to the first quarter of 2015, driven by an increase in customer demand for network connectivity.
Information Services (25% of total net revenues) - Revenues were
Data Products (20% of total net revenues) - Data products revenues were
$105 million in the first quarter of 2016, up$5 million compared to the first quarter of 2015, as increased revenues from index and proprietary data products as well as the inclusion of revenues associated with the DWA and Chi-X Canada acquisitions were partially offset by the negative impact of changes in foreign exchange rates.
Index Licensing and Services (5% of total net revenues) - Index licensing and services revenues were$28 million in the first quarter of 2016, up$3 million from the first quarter of 2015. The revenue growth was primarily driven by organic growth in DWA.
Technology Solutions (25% of total net revenues) - Revenues were
Corporate Solutions (14% of total net revenues) - Corporate solutions revenues were
$77 million in the first quarter of 2016, up$2 million from the first quarter of 2015. The corporate solutions revenue increase reflects a contribution from the Marketwired acquisition and growth in Directors Desk, partially offset by the negative impact of changes in foreign exchange rates and lower multimedia related revenues. Directors Desk delivered record revenue.Market Technology (11% of total net revenues) - Market technology revenues were
$57 million in the first quarter of 2016, up$2 million from the first quarter of 2015. The increase was driven primarily by organic growth in surveillance products. New order intake was$22 million for the first quarter of 2016, and the total order value atMarch 31, 2016 was$783 million , up 8% from the prior year period and near the all-time record of$788 million atDecember 31, 2015 .
Listing Services (12% of total net revenues) - Revenues were
UPDATING 2016 NON-GAAP EXPENSE GUIDANCE - The company has revised 2016 non-GAAP operating expense guidance to
CORPORATE HIGHLIGHTS
- Nasdaq Futures Market shows consistent growth. Nasdaq Futures, or NFX, a
U.S. -based futures and options market for key energy benchmarks, has seen consistent growth and marketplace traction since launch in lateJuly 2015 . NFX has gained support from multiple sectors of the energy trading community, including 17 prominent global Futures Commission Merchants, with open interest rising to over 800,000 contracts last week. Over ten million contracts have traded since launch and NFX has registered greater than 20% daily market share in natural gas options on several occasions. - Nasdaq launches a new innovative Investor Relations platform known as Nasdaq IR Insight. Nasdaq officially launched its next generation Investor Relations platform known as Nasdaq IR Insight, a platform specifically designed for financial executives, especially Investor Relations officers. Nasdaq IR Insight was designed with extensive client collaboration to capture the Investor Relations work stream, improve data intelligence, and enhance decision making through a single product.
The Nasdaq Stock Market (Nasdaq) LedU.S. Exchanges for IPOs and ETPs listings in 1Q16. Nasdaq welcomed 47 new listings in the first quarter of 2016, including 10 IPOs. 100% of allU.S. IPOs listed with Nasdaq in the first quarter of 2016. AmongU.S. ETPs, Nasdaq ledU.S. listing exchanges with 42% of new ETP listings and switches in the first quarter of 2016.- First Trust AlphaDEX smart beta ETFs switch index provider and listing venue to Nasdaq.
First Trust announced the switch of the index provider and listing venue for 12 smart beta AlphaDEX ETFs effectiveFriday, April 8, 2016 , which contain approximately$6 billion in assets under management. Last year, Nasdaq partnered withFirst Trust to switch 17First Trust global, regional and country AlphaDEX ETF benchmarks to track Nasdaq branded AlphaDEX indexes. - Nasdaq and Digital Reasoning establish exclusive alliance to deliver holistic next generation surveillance and compliance technology. Nasdaq and Digital Reasoning, a leader in cognitive computing, announced a strategic alliance to offer surveillance technology to global capital markets participants, including the buy-side, brokers, regulators, and exchanges. The combination of Digital Reasoning's eComms compliance and Nasdaq's SMARTS surveillance solutions will offer a unified interface to take a holistic approach to surveillance and compliance across structured and unstructured data.
- Nasdaq completes acquisitions of Chi-X Canada and Marketwired. On
February 1 st, 2016, Nasdaq completed the acquisition of Chi-X Canada, a leading alternative market in Canada. The deal expands Nasdaq's equities trading business beyond the Nordics and theU.S. , and enhances the trading experience for customers by promoting greater uniformity in technology and functionality across these trading venues. OnFebruary 25 th, 2016, Nasdaq announced the completion of its acquisition of Marketwired, a leading global provider of news distribution services and analytics for communications professionals. Nasdaq customers will benefit from an enhanced offering including Marketwired's leading social media targeting tools and analytics. - Nasdaq announces agreements to acquire International Securities Exchange and
Boardvantage . InMarch 2016 , Nasdaq announced it will acquire International Securities Exchange, or ISE, an operator of three electronicU.S. options exchanges, from Deutsche Börse Group. Nasdaq will build on its robust offerings by providing greater breadth and depth of products and services to participants, and the acquisition is expected to allow Nasdaq to offer efficiencies for clients. InMarch 2016 , Nasdaq announced that it will acquireBoardvantage, Inc. , a leading board portal solution provider which also specializes in leadership collaboration and meeting productivity.
ABOUT
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, net income attributable to Nasdaq, diluted earnings per share, operating income, and operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Management believes that this non-GAAP information provides investors with additional information to assess Nasdaq's operating performance and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.
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, growth, trading volumes, products and services, order backlog, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions and other strategic, restructuring, technology, de-leveraging and capital return 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, government and industry regulation, interest rate risk,
NDAQF
| | |||||||||||
| Condensed Consolidated Statements of Income | |||||||||||
| (in millions, except per share amounts) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| 2016 | 2015 | 2015 | |||||||||
| Revenues: | |||||||||||
| Market Services | $ | 572 | $ | 524 | $ | 539 | |||||
| Transaction-based expenses: | |||||||||||
| Transaction rebates | (283 | ) | (249 | ) | (261 | ) | |||||
| Brokerage, clearance and exchange fees | (88 | ) | (80 | ) | (90 | ) | |||||
| Total Market Services revenues less transaction-based expenses | 201 | 195 | 188 | ||||||||
| Listing Services | 66 | 68 | 64 | ||||||||
| Information Services | 133 | 127 | 125 | ||||||||
| Technology Solutions | 134 | 146 | 130 | ||||||||
| Revenues less transaction-based expenses | 534 | 536 | 507 | ||||||||
| Operating Expenses: | |||||||||||
| Compensation and benefits | 152 | 149 | 147 | ||||||||
| Marketing and advertising | 6 | 9 | 7 | ||||||||
| Depreciation and amortization | 38 | 35 | 34 | ||||||||
| Professional and contract services | 35 | 39 | 33 | ||||||||
| Computer operations and data communications | 25 | 26 | 35 | ||||||||
| Occupancy | 20 | 22 | 21 | ||||||||
| Regulatory | 7 | 6 | 7 | ||||||||
| Merger and strategic initiatives | 9 | 4 | - | ||||||||
| General, administrative and other | 14 | (12 | ) | 46 | |||||||
| Restructuring charges | 9 | 12 | 150 | ||||||||
| Total operating expenses | 315 | 290 | 480 | ||||||||
| Operating income | 219 | 246 | 27 | ||||||||
| Interest income | 1 | 1 | 1 | ||||||||
| Interest expense | (28 | ) | (28 | ) | (28 | ) | |||||
| Other investment income | 1 | - | - | ||||||||
| Net income from unconsolidated investees | 2 | - | 14 | ||||||||
| Income before income taxes | 195 | 219 | 14 | ||||||||
| Income tax provision | 63 | 71 | 5 | ||||||||
| Net income attributable to Nasdaq | $ | 132 | $ | 148 | $ | 9 | |||||
| Per share information: | |||||||||||
| Basic earnings per share | $ | 0.80 | $ | 0.90 | $ | 0.05 | |||||
| Diluted earnings per share | $ | 0.78 | $ | 0.88 | $ | 0.05 | |||||
| Cash dividends declared per common share | $ | 0.57 | $ | 0.25 | $ | 0.15 | |||||
| Weighted-average common shares outstanding for earnings per share: | |||||||||||
| Basic | 164.3 | 164.6 | 169.0 | ||||||||
| Diluted | 168.4 | 168.9 | 172.7 | ||||||||
| Revenue Detail | |||||||||||
| (in millions) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| 2016 | 2015 | 2015 | |||||||||
| MARKET SERVICES REVENUES | |||||||||||
| Equity Derivative Trading and Clearing Revenues | $ | 101 | $ | 109 | $ | 116 | |||||
| Transaction-based expenses: | |||||||||||
| Transaction rebates | (48 | ) | (56 | ) | (64 | ) | |||||
| Brokerage, clearance and exchange fees | (5 | ) | (5 | ) | (6 | ) | |||||
| Total net equity derivative trading and clearing revenues | 48 | 48 | 46 | ||||||||
| Cash Equity Trading Revenues | 382 | 331 | 339 | ||||||||
| Transaction-based expenses: | |||||||||||
| Transaction rebates | (230 | ) | (191 | ) | (197 | ) | |||||
| Brokerage, clearance and exchange fees | (82 | ) | (74 | ) | (83 | ) | |||||
| Total net cash equity trading revenues | 70 | 66 | 59 | ||||||||
| Fixed Income, Currency and Commodities Trading and Clearing Revenues | 26 | 23 | 25 | ||||||||
| Transaction-based expenses: | |||||||||||
| Transaction rebates | (5 | ) | (2 | ) | - | ||||||
| Brokerage, clearance and exchange fees | (1 | ) | (1 | ) | (1 | ) | |||||
| Total net fixed income, currency and commodities trading and clearing revenues | 20 | 20 | 24 | ||||||||
| Access and Broker Services Revenues | 63 | 61 | 59 | ||||||||
| Total Net Market Services revenues | 201 | 195 | 188 | ||||||||
| LISTING SERVICES REVENUES | 66 | 68 | 64 | ||||||||
| INFORMATION SERVICES REVENUES | |||||||||||
| Data Products revenues | 105 | 98 | 100 | ||||||||
| 28 | 29 | 25 | |||||||||
| Total Information Services revenues | 133 | 127 | 125 | ||||||||
| TECHNOLOGY SOLUTIONS REVENUES | |||||||||||
| Corporate Solutions revenues | 77 | 75 | 75 | ||||||||
| Market Technology revenues | 57 | 71 | 55 | ||||||||
| Total Technology Solutions revenues | 134 | 146 | 130 | ||||||||
| Revenues less transaction-based expenses | $ | 534 | $ | 536 | $ | 507 | |||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in millions) | ||||||||
| 2016 | 2015 | |||||||
| Assets | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 331 | $ | 301 | ||||
| Restricted cash | 21 | 56 | ||||||
| Financial investments, at fair value | 259 | 201 | ||||||
| Receivables, net | 333 | 316 | ||||||
| Default funds and margin deposits | 3,614 | 2,228 | ||||||
| Other current assets | 164 | 158 | ||||||
| Total current assets | 4,722 | 3,260 | ||||||
| Property and equipment, net | 326 | 323 | ||||||
| Deferred tax assets | 604 | 643 | ||||||
| 5,663 | 5,395 | |||||||
| Intangible assets, net | 2,085 | 1,959 | ||||||
| Other non-current assets | 317 | 281 | ||||||
| Total assets | $ | 13,717 | $ | 11,861 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 175 | $ | 158 | ||||
| Section 31 fees payable to | 80 | 98 | ||||||
| Accrued personnel costs | 87 | 171 | ||||||
| Deferred revenue | 304 | 127 | ||||||
| Other current liabilities | 169 | 138 | ||||||
| Default funds and margin deposits | 3,614 | 2,228 | ||||||
| Total current liabilities | 4,429 | 2,920 | ||||||
| Debt obligations | 2,565 | 2,364 | ||||||
| Deferred tax liabilities | 678 | 626 | ||||||
| Non-current deferred revenue | 188 | 200 | ||||||
| Other non-current liabilities | 160 | 142 | ||||||
| Total liabilities | 8,020 | 6,252 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Nasdaq stockholders' equity: | ||||||||
| Common stock | 2 | 2 | ||||||
| Additional paid-in capital | 3,001 | 3,011 | ||||||
| Common stock in treasury, at cost | (145 | ) | (111 | ) | ||||
| Accumulated other comprehensive loss | (770 | ) | (864 | ) | ||||
| Retained earnings | 3,609 | 3,571 | ||||||
| Total equity | 5,697 | 5,609 | ||||||
| Total liabilities and equity | $ | 13,717 | $ | 11,861 | ||||
| Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income and | ||||||||||||
| Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and Operating Expenses | ||||||||||||
| (in millions, except per share amounts) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| GAAP net income attributable to Nasdaq | $ | 132 | $ | 148 | $ | 9 | ||||||
| Non-GAAP adjustments: | ||||||||||||
| Amortization expense of acquired intangible assets (1) | 17 | 15 | 15 | |||||||||
| Restructuring charges (2) | 9 | 12 | 150 | |||||||||
| Merger and strategic initiatives (3) | 9 | 4 | - | |||||||||
| Loss reserve and insurance recovery (4) | - | (26 | ) | 31 | ||||||||
| Income from OCC equity investment (5) | - | - | (13 | ) | ||||||||
| Reversal of value added tax refund (6) | - | - | 12 | |||||||||
| Total non-GAAP adjustments | 35 | 5 | 195 | |||||||||
| Non-GAAP adjustment to the income tax provision | (14 | ) | (3 | ) | (66 | ) | ||||||
| Total non-GAAP adjustments, net of tax | 21 | 2 | 129 | |||||||||
| Non-GAAP net income attributable to Nasdaq | $ | 153 | $ | 150 | $ | 138 | ||||||
| GAAP diluted earnings per share | $ | 0.78 | $ | 0.88 | $ | 0.05 | ||||||
| Total adjustments from non-GAAP net income above | 0.13 | 0.01 | 0.75 | |||||||||
| Non-GAAP diluted earnings per share | $ | 0.91 | $ | 0.89 | $ | 0.80 | ||||||
| (1) Amortization expense of acquired intangible assets results primarily from business combinations. These non-cash expenses are fixed and amortized over the estimated useful life of the intangible asset acquired. These expenses generally cannot be changed or influenced by management after the acquisition. Management does not consider these expenses for the purpose of evaluating the performance of the business, its managers or when making decisions to allocate resources. Therefore, such expenses are shown as a non-GAAP adjustment. | ||||||||||||
| (2) During the first quarter of 2015 as part of our 2015 restructuring plan, we performed a comprehensive review of our processes, businesses and systems in a company-wide effort to improve performance, cut costs, and reduce spending. In the first quarter of 2015, we also decided to change our company name from | ||||||||||||
| (3) For the three months ended | ||||||||||||
| (4) In | ||||||||||||
| (5) We record our investment in | ||||||||||||
| (6) We previously recorded receivables for expected value added tax, or VAT, refunds based on an approach that had been accepted by the tax authorities in prior years. The tax authorities have since challenged our approach, and the revised position of the tax authorities was upheld in court during the first quarter of 2015. As a result, in the
first quarter of 2015, we recorded a charge of | ||||||||||||
| Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income and | ||||||||||||
| Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and Operating Expenses | ||||||||||||
| (in millions) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| GAAP operating income | $ | 219 | $ | 246 | $ | 27 | ||||||
| Non-GAAP adjustments: | ||||||||||||
| Amortization expense of acquired intangible assets (1) | 17 | 15 | 15 | |||||||||
| Restructuring charges (2) | 9 | 12 | 150 | |||||||||
| Merger and strategic initiatives (3) | 9 | 4 | - | |||||||||
| Loss reserve and insurance recovery (4) | - | (26 | ) | 31 | ||||||||
| Reversal of value added tax refund (5) | - | - | 12 | |||||||||
| Total non-GAAP adjustments | 35 | 5 | 208 | |||||||||
| Non-GAAP operating income | $ | 254 | $ | 251 | $ | 235 | ||||||
| Revenues less transaction-based expenses | $ | 534 | $ | 536 | $ | 507 | ||||||
| Non-GAAP operating margin (6) | 48 | % | 47 | % | 46 | % | ||||||
| (1) Amortization expense of acquired intangible assets results primarily from business combinations. These non-cash expenses are fixed and amortized over the estimated useful life of the intangible asset acquired. These expenses generally cannot be changed or influenced by management after the acquisition. Management does not consider these expenses for the purpose of evaluating the performance of the business, its managers or when making decisions to allocate resources. Therefore, such expenses are shown as a non-GAAP adjustment. | ||||||||||||
| (2) During the first quarter of 2015 as part of our 2015 restructuring plan, we performed a comprehensive review of our processes, businesses and systems in a company-wide effort to improve performance, cut costs, and reduce spending. In the first quarter of 2015, we also decided to change our company name from | ||||||||||||
| (3) For the three months ended | ||||||||||||
| (4) In | ||||||||||||
| (5) We previously recorded receivables for expected VAT refunds based on an approach that had been accepted by the tax authorities in prior years. The tax authorities have since challenged our approach, and the revised position of the tax authorities was upheld in court during the first quarter of 2015. As a result, in the first quarter of 2015, we recorded a charge of | ||||||||||||
| (6) Non-GAAP operating margin equals non-GAAP operating income divided by total revenues less transaction-based expenses. | ||||||||||||
| Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income and | ||||||||||||
| Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and Operating Expenses | ||||||||||||
| (in millions) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| GAAP operating expenses | $ | 315 | $ | 290 | $ | 480 | ||||||
| Non-GAAP adjustments: | ||||||||||||
| Amortization expense of acquired intangible assets (1) | (17 | ) | (15 | ) | (15 | ) | ||||||
| Restructuring charges (2) | (9 | ) | (12 | ) | (150 | ) | ||||||
| Merger and strategic initiatives (3) | (9 | ) | (4 | ) | - | |||||||
| Loss reserve and insurance recovery (4) | - | 26 | (31 | ) | ||||||||
| Reversal of value added tax refund (5) | - | - | (12 | ) | ||||||||
| Total non-GAAP adjustments | (35 | ) | (5 | ) | (208 | ) | ||||||
| Non-GAAP operating expenses | $ | 280 | $ | 285 | $ | 272 | ||||||
| (1) Amortization expense of acquired intangible assets results primarily from business combinations. These non-cash expenses are fixed and amortized over the estimated useful life of the intangible asset acquired. These expenses generally cannot be changed or influenced by management after the acquisition. Management does not consider these expenses for the purpose of evaluating the performance of the business, its managers or when making decisions to allocate resources. Therefore, such expenses are shown as a non-GAAP adjustment. | ||||||||||||
| (2) During the first quarter of 2015 as part of our 2015 restructuring plan, we performed a comprehensive review of our processes, businesses and systems in a company-wide effort to improve performance, cut costs, and reduce spending. In the first quarter of 2015, we also decided to change our company name from | ||||||||||||
| (3)
For the three months ended | ||||||||||||
| (4) In | ||||||||||||
| (5) We previously recorded receivables for expected VAT refunds based on an approach that had been accepted by the tax authorities in prior years. The tax authorities have since challenged our approach, and the revised position of the tax authorities was upheld in court during the first quarter of 2015. As a result, in the first quarter of 2015, we recorded a charge of | ||||||||||||
| Quarterly Key Drivers Detail | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| 2016 | 2015 | 2015 | |||||||||
| Market Services | |||||||||||
| Equity Derivative Trading and Clearing | |||||||||||
| Total industry average daily volume (in millions) | 15.3 | 14.4 | 14.8 | ||||||||
| Nasdaq PHLX matched market share | 16.1 | % | 17.0 | % | 17.6 | % | |||||
| The NASDAQ Options Market matched market share | 7.1 | % | 7.8 | % | 9.5 | % | |||||
| Nasdaq BX Options Market matched market share | 0.9 | % | 1.0 | % | 0.7 | % | |||||
| Total matched market share executed on Nasdaq's exchanges | 24.1 | % | 25.8 | % | 27.8 | % | |||||
| Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||
| Total average daily volume options and futures contracts(1) | 452,178 | 445,660 | 402,421 | ||||||||
| Cash Equity Trading | |||||||||||
| Total | |||||||||||
| Total industry average daily share volume (in billions) | 8.56 | 7.05 | 6.92 | ||||||||
| Matched share volume (in billions) | 93.7 | 82.2 | 83.1 | ||||||||
| Matched market share executed on | 14.9 | % | 15.2 | % | 16.9 | % | |||||
| Matched market share executed on Nasdaq BX | 2.0 | % | 2.1 | % | 1.8 | % | |||||
| Matched market share executed on Nasdaq PSX | 1.0 | % | 0.9 | % | 1.0 | % | |||||
| Total matched market share executed on Nasdaq's exchanges | 17.9 | % | 18.2 | % | 19.7 | % | |||||
| Market share reported to the | 31.9 | % | 32.0 | % | 31.4 | % | |||||
| Total market share(2) | 49.8 | % | 50.2 | % | 51.1 | % | |||||
| Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||
| Average daily number of equity trades | 506,790 | 388,433 | 439,938 | ||||||||
| Total average daily value of shares traded (in billions) | $ | 5.7 | $ | 5.0 | $ | 5.5 | |||||
| Total market share executed on Nasdaq's exchanges | 62.5 | % | 67.7 | % | 68.8 | % | |||||
| Fixed Income, Currency and Commodities Trading and Clearing | |||||||||||
| Total | |||||||||||
| $ | 5,968 | $ | 5,191 | $ | 8,365 | ||||||
| Nasdaq Nordic and Nasdaq Baltic fixed income | |||||||||||
| Total average daily volume fixed income contracts | 101,470 | 105,248 | 107,031 | ||||||||
| Power contracts cleared (TWh)(3) | 420 | 419 | 363 | ||||||||
| Listing Services | |||||||||||
| Initial public offerings | |||||||||||
| 10 | 32 | 27 | |||||||||
| Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 8 | 22 | 17 | ||||||||
| New listings | |||||||||||
| 47 | 72 | 43 | |||||||||
| Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(5) | 14 | 26 | 18 | ||||||||
| Number of listed companies | |||||||||||
| 2,852 | 2,859 | 2,779 | |||||||||
| Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(7) | 847 | 852 | 804 | ||||||||
| Information Services | |||||||||||
| Number of licensed exchange traded products | 226 | 222 | 187 | ||||||||
| ETP assets under management (AUM) tracking Nasdaq indexes (in billions)(8) | $ | 105 | $ | 114 | $ | 105 | |||||
| Technology Solutions | |||||||||||
| Market Technology | |||||||||||
| Order intake (in millions)(9) | $ | 22 | $ | 116 | $ | 40 | |||||
| Total order value (in millions)(10) | $ | 783 | $ | 788 | $ | 728 | |||||
| (1) Includes Finnish option contracts traded on | |||||||||||
| (2) Includes transactions executed on | |||||||||||
| (3) Transactions executed on | |||||||||||
| (4) New listings include IPOs, including those completed on a best efforts basis, issuers that switched from other listing venues, closed-end funds and separately listed exchange traded products, or ETPs. | |||||||||||
| (5) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North. | |||||||||||
| (6) Number of listed companies for | |||||||||||
| (7) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North at period end. | |||||||||||
| (8) Represents assets under management in licensed ETPs. | |||||||||||
| (9) Total contract value of orders signed during the period. | |||||||||||
| (10) Represents total contract value of orders signed that are yet to be recognized as revenue. | |||||||||||
MEDIA RELATIONS CONTACT:Joseph Christinat +1.646.441.5121 joseph.christinat@nasdaq.com INVESTOR RELATIONS CONTACT:Ed Ditmire , CFA +1.212.401.8737 ed.ditmire@nasdaq.com
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