Investor Day 2024
Introduction
Ato Garrett, SVP Investor Relations
In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income, non-GAAP operating expenses, EBITDA and Free Cash Flow. These measures include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided in the appendix to this presentation.
Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations, and highlight trends more clearly that may not otherwise be apparent when relying solely on U.S. GAAP financial measures. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as certain items do not reflect, or have less bearing on, our ongoing operating performance. These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this presentation.
Refer to the appendix to this presentation for definitions of terms used throughout.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this presentation 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. When used in this presentation, words such as "expects," "enables," "will," "plans," "pro forma," "target," "outlook," "estimates," and similar expressions and any other statements that are not historical facts are intended to identify forward-looking statements.
Such forward-looking statements include, but are not limited to (i) management's vision for the future of Nasdaq, projections relating to our future financial results, growth, dividend program, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets related to the acquisition of Adenza, (ii) statements about the benefits of certain acquisitions and other strategic, restructuring, technology, de-leveraging, share repurchase and capital allocation commitments and initiatives, (iii) statements about the integration of our recent Adenza acquisition, (iv) our medium-term growth outlook, 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, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq's investor relations website at http://ir.nasdaq.com and the SEC's website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The forward-looking statements in this presentation do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
Website Disclosure
Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.
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Today's Agenda
Time (EST) | Session | Speaker(s) |
8:00 AM - 8:05 AM | Welcome, Agenda, and Presentation Kickoff | Ato Garrett, SVP Investor Relations |
8:05 AM - 8:25 AM | Strategic Overview | Adena T. Friedman, Chair & CEO |
8:25 AM - 8:50 AM | Round Table Discussion: The Technology | Brad Peterson, EVP & CTO/CIO, Brenda Hoffman, EVP & CTO of Financial Technology and |
Foundation for Nasdaq | Market Services, Hazel Dalton, SVP & CTO of Financial Crime Management Technology | |
8:50 AM - 9:10 AM | Capital Access Platforms | Nelson Griggs, President |
9:10 AM - 9:20 AM | Break | |
9:20 AM - 9:35 AM | Financial Technology Overview | Tal Cohen, President |
Financial Technology Deep Dives | ||
- Financial Crime Management Technology: Verafin | Brendan Brothers, EVP & Head of Financial Crime Management Technology | |
9:35 AM - 10:05 AM | - Regulatory Technology: AxiomSL & Surveillance | Ed Probst, SVP & Head of Regulatory Technology |
- Capital Markets Technology: Marketplace | Gil Guillaumey, SVP & Head of Capital Markets Technology | |
Technology & Calypso | ||
10:05 AM - 10:20 AM | Market Services | Tal Cohen, President, Kevin Kennedy EVP & Head of North American Market Services, and |
Roland Chai, EVP & Head of European Market Services | ||
10:20 AM - 10:30 AM | Break | |
Valerie Bannert-Thurner, EVP & Chief Revenue Officer Financial Technology, Stephanie | ||
10:30 AM - 11:00 AM | Panel: One Nasdaq | Champion, SVP Verafin Sales, Ben Fisbein, SVP Head of Financial Technology Sales for the |
Americas, Don Marigliano, SVP Head of North American Market Services Sales, Jeff Thomas | ||
EVP & Head of Corporate Platforms | ||
11:00 AM - 11:30 AM | Financial Overview | Sarah Youngwood, EVP & CFO |
11:30 AM - 12:00 PM | Q&A and Closing Remarks | All |
12:00 PM - 2:00 PM | Product Showcase and Networking Lunch |
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Nasdaq Kickoff Video
Delivering Resilient and Scalable Growth
Adena T. Friedman, Chair & CEO
Trusted & Scaled
Technology Partner
Dynamic & Durable
Growth Platforms
Built for Sustained
Value Creation
Accelerating our position as trusted partner with mission-critical capabilities serving the financial system
Delivering scalable, profitable, durable growth across our platforms
Maintaining laser focus on our exceptional financial profile, expense rigor, and shareholder value creation
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Nasdaq Is Aligned on a Common Strategic Framework
Core Purpose
We advance economic progress for all
Long-Term Vision
We will be the trusted fabric of the world's financial system
Value Proposition
We deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy
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Uniquely Diversified Business with Strong Right to Win
Strategic Differentiators
Technology | Data | |
Technology | Gold Source | |
Leadership | Data |
Clients | Expertise | Brand | ||
Scaled Marquee | Market & Regulatory | Valued Among | ||
Client Base | Expertise | the Top 100 | ||
Brands 1 |
- Interbrand study, August 2022
- Revenue chart does not include 1% of "other" revenue that primarily relates to Nasdaq's European power trading and clearing business, following our announcement in June 2023 to divest this business, subject to regulatory approval.
Transformed Business
35% | 41% |
Financial | Capital Access |
Technology | |
Platforms | |
$4.3B
2023
Pro Forma
Net Revenue
23%
Market | |
Services | 9 |
Strategic Pivot Has Delivered Higher
Growth and Exceptional Profitability
Exceptional Financial Profile
$2.4B
2017
Net Revenue
$4.3B
2023
Pro Forma
Net Revenue
8%
2017 - 2023 Revenue CAGR
~ 100%+
2017 - 2023 FCF Conversion
47%
Non-GAAP
Operating Margin
53%
Non-GAAP Pro Forma
Operating Margin
+600bps
2017 - 2023
Margin Improvement
$2.4B
2023 Pro Forma
EBITDA
2017 | 2023 |
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Disclaimer
Nasdaq Inc. published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 12:14:06 UTC.