Oct 20 (Reuters) - Nasdaq Inc on Wednesday reported
third-quarter profits above Wall Street estimates, helped by
strong demand for its technology and investment-related
products, along with a jump in initial public offerings on its
Nasdaq reported adjusted profit of $1.78 per share for the
quarter, 6 cents above analysts' consensus estimate, according
to IBES data from Refinitiv.
While the trans-Atlantic exchange operator is best known for
its bourses, Nasdaq has made a big push into the anti-financial
crimes software sector, having completed its $2.75 billion
acquisition of Verafin in February.
Nasdaq counts around 2,000 U.S. and Canadian banks as
clients and sees demand in the anti-financial crimes space
growing along with new technologies like cryptocurrencies, Chief
Executive Officer Adena Friedman said on a call with analysts.
"As crypto becomes more integrated into the financial
system, we want to make sure that we can provide solutions that
meet the needs across all of our customers," she said.
Revenue from the company's solutions segment jumped 19% to
$541 million, helped by the Verafin deal and strong demand for
products tied to Nasdaq's financial indexes.
Nasdaq also offers a cloud-based market services platform
where it provides the technology and infrastructure for
marketplaces. Eight crypto exchanges are now using Nasdaq
trading technology and nine are using its surveillance
technology, Friedman said.
New York-based Nasdaq won 147 IPOs in the quarter, including
80 operating companies, like Robinhood Markets Inc and
Freshworks Inc, while the rest were special purpose
acquisition firms, representing $29 billion of capital raised.
Market services revenue rose 15% to $295 million.
Net revenues were up 17% to $838 million.
Nasdaq shares opened at a record high, but then pulled back,
and were last down 4.29% at $199.88.
Friedman said she expected compensation expenses to rise
into 2022 due to heightened competition for talent.
(Reporting by Niket Nishant in Bengaluru and John McCrank in
New York; Editing by Shailesh Kuber and Mark Heinrich)