Nasdaq Implements AxiomSL Revenue Recognition Change
06 Septiembre 2024 - 6:00AM
Nasdaq, Inc. (Nasdaq: NDAQ) today announced that it has implemented
a change to the accounting treatment of the revenues associated
with AxiomSL on-premises subscription contracts. This change was
previously referenced during Nasdaq’s second quarter earnings and
is related to the finalization of the U.S. GAAP purchase accounting
in connection with the Adenza acquisition.
The accounting change reflects the frequent and ongoing
mandatory updates to AxiomSL’s regulatory reporting software, which
are critical to the utility and value of the product for its
clients. Going forward, Nasdaq will recognize 100% of AxiomSL
on-premises subscription revenue ratably over the contract term,
whereas Adenza previously recognized approximately 50% of AxiomSL’s
total contract revenue upfront and the remainder over the contract
term.
Beginning in the third quarter of 2024, Nasdaq's financial and
operational results will reflect the new accounting treatment. In
its third quarter 2024 results, Nasdaq will record a net $32
million one-time, non-cash GAAP revenue reduction for the period
November 1, 2023 through June 30, 2024, reflecting the net impact
of the accounting change on AxiomSL subscription revenue since the
close of the acquisition. This $32 million net reduction consists
of a decrease of $34 million related to the November and December
2023 periods, which will be excluded from our non-GAAP third
quarter 2024 results, partially offset by a net increase of $2
million related to the January through June 2024 period.
This change enhances Nasdaq’s financial reporting, as AxiomSL’s
revenues will more closely align with the annualized recurring
revenue (ARR) and cash economics of its on-premises subscription
contracts. There are no changes to professional services revenues
or to AxiomSL’s cloud-delivered license revenues, which are already
recognized as ratable over the life of the contract. This change
also does not impact AxiomSL’s historical ARR or cash flows.
2024 Expectations and Medium-Term Growth
OutlookNasdaq reaffirms its medium-term growth outlook for
all divisions, sub-divisions, and AxiomSL and Calypso combined.
Nasdaq also reaffirms all 2024 expectations shared in its second
quarter 2024 earnings call and expects the Regulatory Technology
sub-division to grow within its medium-term revenue growth outlook
range for full-year 2024. Nasdaq will provide additional details in
the accompanying presentation and publicly announced conference
call on this topic.
Conference CallAs previously announced, Nasdaq
will host a conference call today, September 6, 2024, at 8:00 AM ET
to discuss this announcement in more detail. All participants can
access the conference via webcast and related materials through the
Nasdaq Investor Relations website at http://ir.nasdaq.com/.
About NasdaqNasdaq (Nasdaq: NDAQ) is a leading
global technology company serving corporate clients, investment
managers, banks, brokers, and exchange operators as they navigate
and interact with the global capital markets and the broader
financial system. We aspire to deliver world-leading platforms that
improve the liquidity, transparency, and integrity of the global
economy. Our diverse offering of data, analytics, software,
exchange capabilities, and client-centric services enables clients
to optimize and execute their business vision with confidence. To
learn more about the company, technology solutions, and career
opportunities, visit us on LinkedIn, on X @Nasdaq, or
at www.nasdaq.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTSInformation set forth in this press release
contains forward-looking statements that involve a number of risks
and uncertainties. Nasdaq cautions readers that any forward-looking
information is not a guarantee of future performance and that
actual results could differ materially from those contained in the
forward-looking information. When used in this communication, words
such as “believe,” “expects,” “enables,” “will,” “plans,” “pro
forma,” “target,” “outlook,” “estimates,” and similar expressions
and any other statements that are not historical facts are intended
to identify forward-looking statements. Such forward-looking
statements include, but are not limited to (i) projections relating
to our future financial results, growth, products and services, s
and achievement of synergy targets, (ii) statements about the
accounting treatment of future events, including the accounting
treatment of revenues associated with AxiomSL on-premises
subscription contracts, and (iii) other statements that are not
historical facts. Forward-looking statements involve a number of
risks, uncertainties or other factors beyond Nasdaq’s control.
These factors include, but are not limited to, Nasdaq’s ability to
implement its strategic initiatives, economic, political and market
conditions and fluctuations, geopolitical instability, government
and industry regulation, interest rate risk, U.S. and global
competition. Further information on these and other factors are
detailed in Nasdaq’s filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 10-K and quarterly
reports on Form 10-Q which are available on Nasdaq’s investor
relations website at http://ir.nasdaq.com and the SEC’s website at
www.sec.gov. Nasdaq undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Website Disclosure Nasdaq intends to use its
website, ir.nasdaq.com, as a means for disclosing material
non-public information and for complying with SEC Regulation FD and
other disclosure obligations.
Nasdaq Media Relations ContactNick Jannuzzi+1
973.760.1741Nicholas.Jannuzzi@Nasdaq.com
Nasdaq Investor Relations ContactAto Garrett+1
212.401.8737Ato.Garrett@nasdaq.com
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