The Nasdaq Firm, one of the most influential trading firms worldwide, has released their financial results for Q1 2020. It was noted that profit margins exceeded anticipated valuations, earning more than the previous amount in 2019. These increased profits follow after an international pandemic broke-out, affecting multiple financial markets. This didn’t stop Nasdaq from obtaining $701 million in net revenues for Q1. Revenue valuations jumped by 11%, or $67 Million.
Analysts working with Nasdaq revealed that $51 million of the $67 earned was prompted from organic growth. This follows after Nasdaq prompted an international campaign, increasing their revenue streams through organic growth. Representatives with this firm appropriated their surprise towards these increased revenue streams, with financial institutions worldwide losing millions daily. Conventional markets have failed amidst the COVID-19 pandemic, with blockchain exchanges rising to dominance. Wall Street Firms are losing funds and cryptocurrency firms are seeing increased valuations.
Analysts aren’t considering the substantial cost associated with operating the Nasdaq Firm. Offices are maintained worldwide, prompting high administrative costs. These expenses cost hundreds of millions when accounting for the countless management under this brand. It should be noted that regulatory costs were higher throughout March and April, with Nasdaq employees being entitled to full wages amidst the coronavirus. Total expenses throughout Q1 2020 was $335 Million, which is $23x higher than the previous 4th quarter in 2019.
The Executive CEO & Vice President of Nasdaq provided insight into their 1st quarter result. He mentioned that strategic plans were implemented to guarantee that safety of Nasdaq trading throughout this pandemic. However, details iterated that short-term funding won’t be supplied. Investors confident in their strategy cannot receive loans throughout the COVID-19 epidemic. Funds for trading through Nasdaq will need to be individuals own. That limits the availability to wealthy philanthropists.
“These prudent steps, combined with Nasdaq’s highly cash-generative business, enabled the company to continue executing on our capital deployment plan, including investing for the future, and returning capital to shareholders. The COVID-19 pandemic’s human, health, societal, and economic costs have been severe and will have lasting implications on our global community.”
Those statements concluded with: “At the same time, the crisis has highlighted how humanity manifests itself in inspirational, powerful responses. The unflinching resolve of healthcare and other essential workers, meal delivery efforts and support of small businesses, coupled with the overarching creativity of the human spirit in identifying new ways of working, supporting, and caring for each other has been truly awe-inspiring.”
Support Healthcare Workers
The Nasdaq Exchange has provided an influx of their financial wealth over to medical communities throughout Europe and North America. Six million was donated towards the COVID-19 Response & Relief Aid. Nasa executives also provided the Philanthropic Commitment Plan with six million, with those funds going towards small businesses in need of immediate assistance. It should be noted that Nasdaq thanks healthcare and front-line works in America, knowing that their efforts keep communities alive.