NASDAQ (NASDAQ: NDAQ) reported Q4 EPS of $1.60, $0.15 better than the analyst estimate of $1.45. Revenue for the quarter came in at $788 million versus the consensus estimate of $748.98 million.

• 2020 net revenues1 were $2,903 million, an increase of 15% over 2019. Revenues in the Solutions segments2 increased 11%, while Market Services revenues increased 21% due to elevated trading volumes.
• Fourth quarter 2020 net revenues were $788 million, an increase of 22% over the fourth quarter of 2019. Compared to the prior year period, Solutions segments revenues increased 18% while Market Services revenues increased 29%.
• Annualized Recurring Revenue (ARR)3 was $1,577 million in the fourth quarter of 2020, an increase of 9% from the prior year period, and the Solutions segments SaaS revenue increased 11% compared to the prior year period.
• 2020 GAAP diluted earnings per share was $5.59, an increase of 21% compared to $4.63 in 2019, while fourth quarter 2020 GAAP earnings per share was $1.34, an increase of 11% compared to $1.21 in the fourth quarter of 2019.
• 2020 non-GAAP4 diluted earnings per share was $6.18, an increase of 24% compared to $5.00 in 2019, while fourth quarter 2020 non-GAAP diluted earnings per share of $1.60 increased 24% from $1.29 in the fourth quarter of 2019.
• At Nasdaq's 2020 Investor Day, the company provided updates to its strategy, operations, and objectives.
• Nasdaq announced the pending acquisition of Verafin in the fourth quarter of 2020, which is expected to expand the company's anti-financial crime franchise while increasing growth potential.

“Our record fourth quarter and full year results attest to Nasdaq’s continuing ability to address the needs of our clients in a capital markets environment characterized by elevated trading, strong IPO activity and rising index valuations, made possible by both our resilient, scalable technology and the flexibility our team exhibited in effectively delivering for clients against a pandemic-impacted backdrop," said Adena Friedman, President and CEO, Nasdaq. "Despite meeting many near-term challenges in 2020, I am incredibly pleased that Nasdaq was also able to accelerate our progress as an advanced technology and analytics provider to the financial industry with our announced acquisition of Verafin, a SaaS technology provider specializing in combating fraud and money laundering. Together with Verafin, we believe that Nasdaq will become a leading provider of anti-financial crime technology, while also raising our long-term organic growth potential.”

"As we look back on 2020, Nasdaq continued to demonstrate the resiliency of the business and our balance sheet," said Michael Ptasznik, Executive Vice President and Chief Financial Officer, Nasdaq. "The company generated over $1 billion of free cash flow, allowing us to continue to reinvest in our business and our people, increase the dividend and execute on our share repurchase plan. During the year, we also refinanced a portion of our debt at favorable interest rates and completed the majority of the funding for the upcoming closing of the acquisition of Verafin, which we expect to occur in the first quarter of 2021. From a personal standpoint, it has been a privilege to serve this iconic organization over the last five years and work with this outstanding team. As previously announced, Ann Dennison will become the CFO upon my retirement at the end of February, and I know Nasdaq and its stakeholders will be well-served by her considerable capabilities and dedication to the company's mission."

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