Massimo Giachetti
At its investor day on Tuesday, Nasdaq (NASDAQ:NDAQ) will reaffirm its medium-term financial outlook and say it expects to reach its deleveraging goals ahead of plan. It also expects to take actions to achieve 70% of its targeted $80M run-rate in net expense synergies ahead of schedule, by the end of 2024.
Its investor day comes after Nasdaq (NDAQ) acquired Adenza, a financial software provider, for $5.75B in cash and 85.6M shares of NDAQ stock. Earlier this year, Bloomberg reported that the company would cut hundreds of jobs after the acquisition.
"We are confident this will unlock a new chapter of scalable, durable, and profitable growth that delivers significant value for our clients and shareholders," said Nasdaq Chair and CEO Adena Friedman.
The company is accelerating its deleveraging plan and now targets an estimated leverage ratio of 4.0x, nine to 12 months before its previously stated goal. It expects to reach 3.3x at least six months before its earlier goal.
Actions taken in 2024 will achieve 70% of the $80M run-rate of expenses syngergies, with the full amount realized in 2025, the company said.
The company also expects that its Financial Technology division will achieve at least $100M in incremental revenue through cross-sell opportunities by year-end 2027.
Nasdaq (NDAQ) said it plans to increase its annualized payout ratio of 35% to 38% by 2027, including boosting is 2024 quarterly dividend by $0.02 per share to $0.24, to take effect with the June 2024 payment.
Nasdaq (NDAQ) stock edged down 0.2% in Tuesday premarket trading.
It reaffirms its medium-term financial outlook, including:
- Capital Access Platforms revenue growth of 5%-8%;
- Financial Technology revenue growth of 10%-14%;
- Total Solutions revenue growth of 8%-11%; and
- Non-GAAP operating expense growth of 5%-8%.