Nasdaq has launched a new cloud-based portal for the C-Suite, and it points to a broader shake-up within the company.
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Nasdaq is shaking up one of its legacy units (NDAQ)
The company is shifting.
On Monday, Nasdaq's Corporate Solutions unit unveiled Nasdaq Boardvantage, a cloud-based platform to support broader collaboration between corporate executives and board members.
Corporate Solutions, a legacy business for the exchange-operator, is Nasdaq's weakest source of profit with estimated margins of 11% to 12%, according to Richard Repetto, an analyst at Sandler O'Neill. Margins across the entire Nasdaq business were 41%, in contrast.
The Corporate Solutions business falls under the umbrella of the company's larger Corporate Services branch, which also includes its better known US equities listings venue. Nasdaq Boardvantage seeks to build on the capabilities of previous products by Nasdaq and Boardvantage, which Nasdaq acquired in 2016, by addressing corporate executives' need to collaborate and share confidential information between teams via modern day platforms like iPads.
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Corporate Solutions covers an array of businesses for Nasdaq, ranging from newswire services to investor relations tools, but the company appears to be shifting its focus to products like Nasdaq Boardvantage, which targets corporate executives.
"Our board portal and team collaboration solutions are a critical foundation of the Nasdaq Corporate Solutions product offering as well as any company’s governance framework."
Nasdaq's strategy in its Corporate Solutions unit represents a broader company-wide shift.
Nasdaq is focusing its resources on those businesses that present the greatest profit opportunity for the firm. As such, it is putting more capital behind non-traditional businesses in data and analytics to drive growth, according to a recently released presentation on its updated strategy.
"[Nasdaq] has stated its objective to allocate more capital and human resources to faster growing, higher margin strategic businesses (Market Technology & Information Services and other businesses within the remaining segments)," Repetto said of the strategy.
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