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The company brought in about $34 million in revenue this quarter, a 7 percent increase over the same time last year. While it earned more per share than expected, its profit margin, the portion of each dollar it keeps after costs, dipped slightly to about 33 percent. This was mainly due to higher spending on its trading technology and data platforms.
This business makes money by providing the infrastructure for stocks to trade outside of major exchanges like the Nasdaq. Most of its growth came from its data and listing services, which are steady sources of income. The company also returned $3.7 million to shareholders through dividends and buying back its own stock, showing it remains a reliable generator of cash even as it invests in new trading features.
Source: Company earnings report
The company hired a veteran from Cboe Global Markets to lead its data sales strategy across Europe, the Middle East, and Africa. This role focuses on selling the company's real-time trading data to distributors and other exchanges in those regions. Selling data is a high-margin part of the business because the information is generated automatically by the trading on its platform. Expanding this reach internationally is a key part of the company's plan to grow beyond its core U.S. market.
Source: GlobeNewsWire
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Management has delivered four straight results that topped analyst expectations. The business is outrunning forecasts as it brings in more revenue from its data feeds and market listings.
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