Nasdaq Outlines Strategy to Deliver Next Phase of Resilient and Scalable Growth - Seite 2

Innovate: Leverage Technology Infrastructure to Drive Innovation

Nasdaq’s longstanding focus on embracing cloud workflows throughout its market infrastructure and software solutions, coupled with years of investment in AI, positions the company to benefit from the next wave of technology innovation. Nasdaq’s modern, cloud-native applications and its unique, proprietary data, create a strong foundation to introduce generative AI capabilities that will enhance the value that the company can provide to its clients and can further Nasdaq’s competitive position.

Accelerate: Unlock the Value of the Divisional Structure to Drive Incremental Revenue

The company will continue to accelerate the impact of its divisional structure and leverage its One Nasdaq strategy to create and deliver on new growth and revenue opportunities. Within its Financial Technology division, Nasdaq expects to achieve at least $100 million in incremental revenue through cross-sell opportunities by year-end 2027.

Enhancing Shareholder Value via a Disciplined Capital Allocation Strategy

Nasdaq will also provide details on its financial framework and capital allocation strategy. This strategy, which is fueled by strong free cash flow generation and capital discipline, will focus on four key actions:

• Utilizing a disciplined ROIC-based framework to allocate investment capital​ to drive organic growth.
• Accelerating its deleveraging plan, now targeting an estimated leverage ratio of 4.0x, nine to twelve months before Nasdaq’s previously stated goal. Nasdaq expects to reach 3.3x, at least six months ahead of its previously stated goal.
• Growing the dividend and progressing towards an annualized payout ratio of 35% to 38% by 2027. This includes raising the 2024 quarterly dividend by $0.02 per share, to $0.24 per share, which will be reflected in the June 2024 dividend payment.
• Offsetting dilution from employee vesting and mitigating dilution from the Adenza acquisition equity issuance over time, both through the company’s previously announced Board authorized share repurchase program.

Reiterating Medium-Term Financial Outlook

Nasdaq will reaffirm its previously stated medium-term financial outlook:

• Capital Access Platforms Revenue growth of 5% to 8%.
• Financial Technology Revenue growth of 10% to 14%.
• Total Solutions Revenue growth of 8% to 11%.
• Non-GAAP Operating Expense growth of 5% to 8%.

This outlook reflects a three-to-five-year period and assumes a stable market backdrop. The company will also reaffirm its 2024 non-GAAP operating expense guidance with a range of $2,105 million to $2,185 million and its 2024 non-GAAP tax rate guidance with a range of 24.5% to 26.5%.