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Nasdaq earnings top Wall Street views as software services surge

The Nasdaq logo is displayed at the Nasdaq market site in New York, U.S., May 2, 2019. REUTERS/Brendan McDermid/

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July 20 (Reuters) – Nasdaq Inc (NDAQ.O) on Wednesday reported quarterly earnings that beat Wall Street expectations as traders turned to the stock trader’s investment-related products to weather the storm. market volatility, helping to increase revenue.

After stripping out one-time items, including a gain from the sale of the company’s bond business in the year-ago quarter, the Nasdaq gained $2.07 per share, well above the l analysts’ average estimate of $1.91 per share, according to IBES data from Refinitiv.

Net revenue jumped 6% to $893 million, driven primarily by a 10% increase in revenue from the company’s solutions segment, which includes indexing and analytics, fight technology against financial crime and environmental, social and governance (ESG) advisory products.

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Shares of the New York-based Nasdaq rose 5.8% shortly after the market opened, their highest level since April 22.

“The company is on its way to becoming more of a SaaS technology provider than a traditional exchange,” Oppenheimer analyst Owen Lau said in a note to clients, referring to Nasdaq’s software-as-a-service push. .

Under Chief Executive Adena Friedman, the exchange operator has sought to diversify its offerings and reposition itself as a leading fintech company with a growing footprint in the software industry, offering analytics , data and cloud.

Last month, Nasdaq also announced plans to acquire ESG software provider Metrio for an undisclosed amount.

The Nasdaq stock market hosted 38 IPOs in the quarter, down from 135 IPOs in the year-ago quarter, as companies steered clear of markets during the recent downturn.

Earlier this month, the Nasdaq was also among major stock exchange groups that won a ruling against the Securities and Exchange Commission when a US appeals court overturned the regulator’s order that would have allowed certain financial firms to have a say in the pricing of essential stock market data. and broadcast. Read more

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Reporting by Mehnaz Yasmin in Bengaluru and John McCrank in New York; Editing by Shailesh Kuber, Bernadette Baum and Jonathan Oatis

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