Nasdaq misses quarterly profit estimates as subdued IPO market, expenses weigh

Exchange operator Nasdaq Inc missed Wall Street estimates for fourth-quarter profit on Wednesday, hit by a slowdown in initial public offerings and higher business expenses.

The U.S. market for IPOs has been ravaged over the past year as investor sentiment suffered from concerns around a looming recession, rising interest rates and stock volatility.

The Nasdaq stock exchange hosted only 18 IPOs in the fourth quarter, compared with 195 a year earlier.


Operating expenses in the quarter rose nearly 3% to $557 million from a year earlier, as the company spent more on employees and business-related expenses.

Excluding one-time items, Nasdaq earned 64 cents per share, missing analysts' average estimate of 65 cents per share, according to Refinitiv data.

Net revenue, excluding transaction-based expenses in the fourth quarter, increased 2% from a year earlier to $906 million.

The company said it repurchased $633 million in shares of its common stock last year. (Reporting by Anirban Chakroborti in Bengaluru and John McCrank in New York; Editing by Krishna Chandra Eluri)