Nasdaq profit beats estimates as fintech sales soar

By Jaiveer Shekhawat

(Reuters) -Nasdaq beat estimates for second-quarter profit on Thursday, driven mainly by strong demand for its products that help traders navigate compliance requirements and safeguard against financial crimes, sending its shares up about 4% in early trading.

To create a more steady and sustainable source of revenue, the transatlantic exchange operator has expanded beyond trading and listings and bolstered its financial technology unit.

Revenue from the unit soared nearly 79% to $420 million in the second quarter, while that from its index business jumped 29% to $167 million.

Net revenue climbed 25% to $1.16 billion, compared with analysts' average estimate of $1.13 billion, according to LSEG data.

The company's adjusted profit of 69 cents per share also beat analysts' expectations of 64 cents.

A resilient economy has also prompted a surge in new listings on U.S. exchanges after a slowdown that lasted nearly two years.

A total of 84 companies listed its shares on Nasdaq in the second quarter ended June 30 compared with 62 from a year ago.

Our current U.S. IPO pipeline indicates a stronger momentum is likely to manifest starting in the first half of 2025, Adena Friedman, Nasdaq chair and CEO, said on an analyst call.

U.S. equity matched shares volumes jumped to 119.3 billion in the second quarter from 113.7 billion a year earlier. U.S. equity options volumes also rose to 42.1 million contracts from 39.2 million contracts.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shinjini Ganguli and Saumyadeb Chakrabarty)