Nasdaq, America’s second largest stock exchange on Wednesday revealed its first-quarter earnings results, displaying healthy growth of profit during the quarter and also beating analysts estimates. For the quarter, the exchange reported a top line of $666 million which is 9 percent higher compared to $611.0 million in Q4 2017 and 15 percent higher year-over-year from $581.0 million in Q1 2017.
The net income during the quarter came in at $177 million, and an EPS of $1.05 compared to $168 million, with an EPS of $0.99 cents in the last year’s first quarter. The adjusted income reported at $209 million or $1.24 per share during the quarter beating the analyst expectation of $1.18 per share.
According to Adena Friedman, President and CEO of Nasdaq, said in a statement on the earnings: “We achieved strong results in the first quarter of 2018 through a combination of solid organic growth in our recurring revenues, as well as by maximizing the benefits of higher industry volumes with strong market share. In addition, we continue to expand our pipeline of opportunities in our ‘markets economy’ technology strategy, and build momentum around our competitive position across several core businesses.”
The major highlight of the event was the exchange announcing its willingness to get into the crypto space and is contemplating to launch a cryptocurrency exchange soon. Post the announcement of quarterly results, Friedman said in an interview that the present structure of the cryptocurrency space is very lightly regulated that attracted early adopters. But have to change the status quo in order to Nasdaq operate a cryptocurrency exchange. She said:
“Over time, if it ultimately does morph into a regulated environment, it does give us an opportunity to participate as a marketplace, but I think that is a longer road and it doesn’t have a certain path right now.”
The exchange also announced that it has tied up with Gemini Trust Company, operator of Gemini cryptocurrency exchange that is owned by Winklevoss Brothers for a surveillance deal. The deal will allow Nasdaq to monitor cryptocurrency trading on its exchange for detection of potential market manipulation and fraud.