Nasdaq's (NDAQ) Q3 2024 earnings report highlights a strong performance with total revenues reaching $1,902 million, a significant increase from $1,451 million in Q3 2023. This represents a year-over-year growth of approximately 31%. The growth was driven by robust performance across all major segments, including Capital Access Platforms, Financial Technology, and Market Services.

The Capital Access Platforms segment generated $501 million in revenue for Q3 2024, up from $456 million in Q3 2023, reflecting a year-over-year increase of approximately 9.9%. Within this segment, the Index business showed notable growth, with revenues increasing to $182 million in Q3 2024 from $144 million in Q3 2023, driven by higher demand for index-related products.

The Financial Technology segment experienced remarkable growth, with revenues rising to $371 million in Q3 2024 from $238 million in Q3 2023, a year-over-year increase of approximately 55.9%. This growth was primarily fueled by the Capital Markets Technology and Regulatory Technology sub-segments, which saw significant revenue increases due to strong demand for their solutions.

The Market Services segment also performed strongly, with revenues increasing to $1,022 million in Q3 2024 from $747 million in Q3 2023, representing a year-over-year growth of approximately 36.8%. This growth was supported by higher trading volumes and improved market conditions.

Nasdaq's operating income for Q3 2024 was $448 million, up slightly from $431 million in Q3 2023. However, operating expenses also increased significantly to $698 million in Q3 2024 from $509 million in Q3 2023, driven by higher compensation and benefits, as well as increased depreciation and amortization expenses.

The company reported a net income attributable to Nasdaq of $306 million for Q3 2024, compared to $294 million in Q3 2023. Despite the increase in revenues, net income growth was modest due to higher operating expenses and interest expenses.

Nasdaq's basic and diluted earnings per share (EPS) for Q3 2024 were $0.53, down from $0.60 in Q3 2023. This decline reflects the impact of increased expenses and a higher number of weighted-average shares outstanding.

The company declared a cash dividend of $0.24 per share during Q3 2024, up from $0.22 per share in Q3 2023, reflecting its commitment to returning value to shareholders. The total dividend payout for the quarter amounted to $138 million.

A significant development during Q3 2024 was the accounting change related to AxiomSL's subscription-based revenues within the Regulatory Technology business. This change resulted in a one-time revenue reduction of $32 million, impacting the Financial Technology segment's reported revenues. The adjustment reflects the adoption of a ratable revenue recognition model to better align with the nature of the subscription contracts.

Nasdaq's liquidity position remains strong, supported by healthy cash flows from operations and access to external financing. The company continues to balance its capital deployment strategy across acquisitions, internal investments, debt repayments, and shareholder returns, including dividends and share repurchases.