Nasdaq Reports Third-Quarter Profit

(Reuters) – Nasdaq reported a rise in third-quarter profit on Thursday, thanks to strong demand in its solutions business that houses the exchange operator's financial technology products.

The company's shares rose 1.5% in trading before the bell.

To generate steady revenue growth, Nasdaq has been branching out from its core operations of trading and listing to products that assist traders and investors in navigating the capital markets.

Revenue from the company's financial technology business climbed nearly 56% in the third quarter, while revenue at the solutions business rose 31% to $906 million on an adjusted basis.

Nasdaq's total revenue increased to $1.90 billion from $1.45 billion.

Hopes for interest rate cuts, which began late in September, and a potential "soft landing" for the economy—where inflation decreases without a recession or significant job losses—encouraged companies to explore fresh listings in the third quarter of 2024.

Total listings on Nasdaq rose to 138 in the third quarter from 87 a year earlier, leading to a 1% increase in the company's data and listing services revenue.

Prominent names such as KKR-backed financial software maker OneStream and cold storage REIT Lineage made their debut on Nasdaq during the reported quarter.

Net profit attributable to Nasdaq, on an adjusted basis, reached $429 million, or 74 cents per share, in the third quarter ended Sept. 30, compared to $349 million, or 71 cents per share, a year earlier.

The exchange operator's shares have gained nearly 27% so far this year.