NEW YORK: Nasdaq, Inc. has net revenues of $2.535 billion for the full year 2019, an increase of $9 million from $2,526 million in the prior year.

The full year increase in net revenues included a $112 million positive impact from organic growth in the non-trading segments, partially offset by a $29 million organic decrease in Market Services, a $39 million negative net impact from acquisitions and divestitures and a $35 million unfavorable impact from changes in foreign exchange rates.

Fourth quarter 2019 net revenues were $646 million, up $1 million from $645 million in the prior year period. Net revenues reflected a $22 million positive impact from organic growth in the non-trading segments, a $15 million increase from the inclusion of revenues from acquisitions, partially offset by a $21 million organic decrease in Market Services revenues, a $10 million negative impact from divestitures and a $5 million unfavorable impact from changes in exchange rates.

“We are pleased with our progress in 2019 through the combination of our clear strategic direction, our unwavering commitment to clients and our disciplined execution,” said Adena Friedman, President and CEO, Nasdaq.

“Specifically, we continued to adapt and broaden our offerings and deepen our client relationships, while delivering consistently on the organic growth, scalability, and return objectives we established at the onset of our strategic pivot. While still in the early stages of repositioning Nasdaq as a technology and analytics provider, we enter 2020 with clear momentum carried over from our strong finish in 2019, and will continue working to open additional areas of opportunity as the year progresses.”

GAAP operating expenses were $386 million in the fourth quarter of 2019, a decrease of $18 million from $404 million in the fourth quarter of 2018.

The decrease primarily reflects lower general, administrative and other expense, lower professional and contract services expense, lower merger and strategic initiatives expense and lower depreciation and amortization expense, partially offset by higher compensation expense and restructuring charges in the fourth quarter of 2019.

Non-GAAP operating expenses were $335 million in the fourth quarter of 2019, an increase of $5 million, or 2%, compared to the fourth quarter of 2018. This reflects an $8 million organic expense increase and a $1 million increase from the net impact of acquisitions and divestitures, partially offset by a $4 million favorable impact from changes in foreign exchange rates.

“In 2019, we continued to reallocate capital and resources strategically to support our most significant growth opportunities while also demonstrating how a more scalable business can drive higher operating leverage and efficiency,” said Michael Ptasznik, Executive Vice President and Chief Financial Officer, Nasdaq. “With our strong cash flow generation, we also completed a multi-year deleveraging program, while also increasing our quarterly dividend and continuing to execute our share repurchase program.”

On a GAAP basis, net income in the fourth quarter of 2019 was $202 million, or diluted earnings per share of $1.21, compared to a net loss of $44 million, or $0.27 per diluted share, in the fourth quarter of 2018. Net income in 2019 was $774 million, or diluted earnings per share of $4.63, compared to net income of $458 million, or $2.73 per diluted share in 2018.

On a non-GAAP basis, net income in the fourth quarter of 2019 was $215 million, or $1.29 per diluted share, compared to $207 million, or $1.24 per diluted share, in the fourth quarter of 2018. Non-GAAP net income in 2019 was $835 million, or $5.00 per diluted share, compared to $797 million, or $4.75 per diluted share in 2018.

At December 31, 2019, the company had cash and cash equivalents of $332 million and total debt of $3,387 million, resulting in net debt of $3,055 million. This compares to total debt of $3,831 million and net debt of $3,286 million at December 31, 2018. As of December 31, 2019, there was $632 million remaining under the board authorized share repurchase program.

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