Nasdaq Inc. has managed to buffer the impact of an ongoing initial public offering (IPO) market slump by evolving into a full-scale data and analytics provider, according to CEO Adena Friedman. The company's move into this space has led to a 15% growth in index revenues and a 21% rise in its anti-financial-crime unit's revenue. The cumulative effect of these developments resulted in an adjusted profit of 71 cents per share, exceeding the average analyst prediction from LSEG IBES data.
Despite some signs of revival in the IPO market, Nasdaq's listings have been slow. This quarter saw only 87 companies listed, compared to 98 in the same period last year. High-profile IPOs such as Softbank-backed Arm and Instacart (NASDAQ:CART) pursued substantial valuations, but this did not prevent a year-to-date stock depreciation of 18.7% for Nasdaq.
While the company continues its efforts to diversify its revenue streams and mitigate the effects of the sluggish IPO market, it remains to be seen how these strategies will affect its long-term financial performance. The information was reported by Pritam Biswas and edited by Pooja Desai.
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