FinkAvenue
- Nasdaq (NASDAQ:NDAQ) will record a net $32M on-time non-cash GAAP revenue reduction related to the final purchasing accounting of its Adenza acquisition, the company said on Friday.
- The accounting change of the revenue is associated with AxiomSL on-premises subscription contracts. The revenue reduction applies to Nov. 1, 2023 through June 30, 2024, but will be applied to Nasdaq’s (NDAQ) Q3 2024 results. The charge will be excluded from Q3 non-GAAP results.
- The company reaffirmed its medium-term growth outlook for all divisions, sub-divisions, and AxiomSL and Calypso combined. It also reaffirmed all 2024 expectations disclosed in its Q2 earnings call and expects the Regulatory Technology sub-division to grow within its medium-term revenue growth outlook range for full-year 2024.
- Going forward, Nasdaq (NDAQ) will recognize 100% of AxiomSL on-premises subscription revenue ratably over the contract term, whereas Adenza previously recognized ~50% of AxiomSL’s total contract revenue upfront and the remainder over the contract term.
- Conference call on Sept. 6 at 8:00 AM ET.
- Nasdaq (NDAQ) acquired Adenza in 2023 for ~$10.5B in cash and stock.
