Nasdaq (NDAQ) 18 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to Nasdaq Third Quarter 2023 Results Conference Call. [Operator Instructions] After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker, Ato Garrett, Senior Vice President and Investor Relations Officer. Please go ahead.

you. Thank and quarter joining XXXX everyone, discuss today you third Nasdaq's financial thank morning, us for to Good results.

John our On our the and Financial other Dennison, team. the Regulatory Chair Friedman, Chief Officer; Chief and Chief members Risk line Executive Officer; Officer; are and Zecca, our Adena management Legal of Ann

such, means website. press Securities earnings that statements presentation a are prepared the SEC. will and up that disclosing this open results differ website and concerning After Q&A of to filed presentation the line the from on meaning of could and Reform FD. in the Litigation materially remind release constitute information release with Information actual our reports forward-looking We would in our nonpublic Actual may remarks, we future from and, relate to to intend use you results the Private Q&A. within under like factors to with statements press and The disclosure cause periodic of events forward-looking contained the material, available Act XXXX. I SEC as and during certain projections. complying Regulation may statements is differ these as to expectations obligations

to now turn the I will call Adena. over

you, Thank us call. Ato, for for Thank you morning, everyone. Nasdaq's and joining good earnings third quarter

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operating turn call performance to my our current Ann strategy how over will context then for our a highlights. provide and unfolding Nasdaq's results. start of quarter. now covering detailed the of in will as the key remarks business environment well I review the is Turning by as I the about to financial

that global strategic make Nasdaq system. share strategic shaping capitalize I'm execute our the businesses vision, continues X% pleased on broad-based progress on become to delivering overall solid continues revenue the net of to its including to against Nasdaq to trusted the key across and financial X% megatrends organic our objectives system, revenue growth financial growth Solutions our fabric growth the year-over-year businesses. in

pleased in Platforms I'm business. the proud efforts third to our of division our Access to growth in to quarter, revenue our in I'm Capital clients, particularly our continue performance strong team's by serve improving the Index and see aided

In addition, customer our demonstrate Anti-Financial Crime X deliver an business expansion division as Verafin to and well new growth strong results the our Surveillance solid growth client. as continuing continued contract with to with Tier in strong

growing we reemergence Nasdaq on with currents the long-term IPO client momentum Nevertheless, conversations the interest outlook saw backdrop, improving pipeline, choosing upcoming the amid quarter, for to during of increasing our IPO markets volatility, Listings respect XX equity fluctuating the including companies rates. variety our U.S. remain in we business quarter. modestly a market operating cross of With on Based at market during and to a and gradual optimistic our rising experienced we year. cautiously activity, the list

Nasdaq the of diversified for well corporate cycles. through before, risk we're positioned compliance megatrends, that are management, modernization investor surveillance, including the business crime economic building succeed and sustainable unlocking positioned development discussed the the of across by key on we've as By sustainability; that's our capitalizing the solutions environmental regulatory the and financial aligning a technology. we're anti-financial key opportunities system: business with increasing megatrends integrity thrive X system, these attractive need to company, growth, ecosystem the and for Across is shaping well for markets; and to financial

In this illustrate on few like growth we're progress to to capitalize the opportunities. that regard, these a highlights from the I'd making quarter provide

market First, innovation across A and innovation intelligence to the cloud powers that AI-powered we first the our SEC in products. modernization deliver are adopt has driver been our or M-ELO. and we Life artificial In of call major our Dynamic focus type, pleased technologies, Order, that the our of Extended continues the world's that approval underlying to on including the the which Midpoint third enhances economies. to announce market Dynamic markets liquidity exchange infrastructure quarter, by order ability and leverage and

out fill clients the Extended our the For holding see creation the larger roll Midpoint last The to adjust several to at of trading Order period trade introduces type clients we basis other drive application improve for seeking the AI the to opportunity Dynamic to called coming fixed order Life midpoint. we've of of years, which and order AI sizes months, gather execution. order M-ELO, emerging enhanced excited offered rates to day very We're an trade in market to reduce we throughout execution before certain stock-by-stock could holding and the length and leverages across conditions friction. our technologies this determined to the extensive periods. order holding on led clients' ahead and a periods markets. by type significant under our the improved consultation, applying that Through This be adaptable interest a market testing

the of development environmental sustainable the ecosystem. regarding Next,

we X During streamline proud the offerings launch investors new and designed to help journeys. sustainability to were quarter, their corporates

is last corporates Nasdaq into Metrio's year, offerings OneReport end-to-end sustainability Following report sustainability integrated the measure better called officially and on reporting a which launched Nasdaq's single of platform. have collect, helps and Nasdaq we SaaS-based workflow data that Metrio single and solution a Metrio, was a quarter. the Metrio solution acquisition during

as the of demonstrate and market. and/or help In position including Investment corporates Intelligence environmental, our sustainability between impact showcase by sovereign reporting. bring eVestment help and rapidly which ESG a quantify pension that is funds, underscore business, of announced X portfolio's owners, wealth It asset social a we funds our bridge managers These to Analytics, investors governance launch demand-driven in the asset endowments. strategies solutions addition, creating evolving Nasdaq sustainability in for portfolio to environment to and asset our managers better designed their role enables clarity market-based, to solutions the

the integrity make anti-financial innovations need solutions, risk clients' technology. anti-money at laundering, our efficient. and We're for looking developing AML, Lastly, more increasing crime including that management or programs

look we our we our October, continue to to evolving version clients' in opportunities of of automate of have the AML that AML updating our forward progress quarters to in tool needs. come beta journey processes. co-pilot these to Specifically launched will to generative the you portions workflow advance on as AI leverage technology our clients' We leverage an

period increase our Nasdaq's quarter X% in the solid achieved I'm of report to results. prior from net increase million, to financial an next year the $XXX pleased in We period prior Turning an were performance to up revenues, an XXXX. continued on million X% year organic X% compared an the of of organic and businesses basis. X% Solutions on Revenues basis. $XXX our third and across

X% increased billion. quarter, which million $X.X totaled to ARR rate Annualized annual XX%. $XXX revenues SaaS represents in of growth total Our an the third

of total now Our ARR. XX% comprise SaaS company revenues

prior division, third million year quarter, Platforms Access the Capital in the X% in revenue our from increase period. an $XXX total delivered we In

over our capture, business The Our in performance $X offset Index the futures strong volumes. $XX XX the revenues strong year derivative in third by year-over-year XX% million reflects including prior period. from past Index grew net and lower quarter; performance; billion market the months, partially inflows in

to Our Insights managers. Analytics Workflow work steady reflecting period, grew X% the and project over asset and solutions demand year sales solutions in revenues ESG for prior sustained our

a continue material we cycles sales While certain to this elongated cycles or not improvement worsening of in see second from of products the we've sales seen quarter for business, XXXX.

and grew revenues Services Our Data Listing X%.

delistings, activity our strong muted data demand due revenue business delivered clients. to driven from Listings heightened international Our largely while was and revenues growth, unchanged data by continued IPO continued

the for maintained for company new of XX% with momentum year's track We Year-to-date, IPOs rate. XX proceeds some company welcomed by from ending new IPOs win raised. record operating the our an biggest strong quarter operating winning Nasdaq listings,

to And X we IPOs, the third several win an by As XX X XX% have year-to-date, quarter, representing in have end billion. switches also the Overall, a Roper companies Nasdaq including DoorDash of the quarter, total market third Arm and of This by we Technologies. in Holdings the listing rate bolstered of and to momentum the IPOs transferred marquee several Instacart. $XXX achieved was welcomed of capital notable top quarter, and raised. Nasdaq including of welcomed overall value

in September commitment The our global Nasdaq and increased first reflects our space our IPO to media trade create reimagined their and us through for success The elevating experience, establishing launch clients Nasdaq to further new and premier access showcasing of Square, Broadcast listing more Times outlets. visibility for at enables venue celebrations coincides to IPO as world's Center site the market listings. with the the

listings well ahead, positioned activity. new Looking remain we capture to

in have with contact companies as lines. strong committed that close these of time are have their companies a they IPO We pipeline evaluate NASDAQ to and

Turning period. X% year with partially Trading to during division. year our small to by In delivered revenue, revenues in our capture Trade business, offset and Services Solutions. $XXX revenue Marketplace a the prior -- Market business million growth equities third in compared In prior Market higher revenues next our the total revenue, Technology in grew revenue FX both due our We U.S. increase technology X% to a X% market Management Platforms with lower growth over and business, declined quarter, the modest Technology benefit. European

During signed in a we securities Latin next-gen of of system, Asia. extension, delivery and the major largest to Southeast stock CSD an one American exchanges our for a our central contract the depository with completed upgrade period, project including trading

the of expect to antitrust of We're Adenza. close Turning transaction. fourth remaining obtain the brief and Bravo regulators to a to become the Thoma to review, in next the track well We've and transaction approvals financial major on XXXX. the Baltic a the Adenza from towards is Nasdaq. update we Therefore, on quarter closing Nordic in shareholder progressing the completed

the As reported created our newly previously Marketplace this Technology businesses. will Crime business Anti-Financial be and alongside as division, Financial of Technology part disclosed,

the delivering growth quarter, added clients X and last Year-to-date XX total third currency clients which strong new Adenza the the new its quarter, over cross-sells, compares and same constant year. they continued X In in X period teens. high to the ARR performance, cross-sells through third

of net a been across have and and period XX.X% new XXXX, maintained respectively. at first cloud delivery retention existing XX% momentum solutions Through solutions of journey both XX% solid delivery with X Adenza's quarters same the of towards also cloud-based for of growth Adenza in versus year. pleased clients. revenue the XXX%, the over Additionally, bookings We're last

Since we planning integration opportunities was discussions team Adenza, announced with and ahead. about the and excited have we're extensive the at held the very leadership in transaction June,

close. post we for to path X clear execute we As very a a starting developed process result of intend and our that early have on successfully interactions together, integration day

our $XX and by turning the delivered Crime the adoption revenue quarter, a period. the existing wallet our of in Verafin an fraud Nasdaq small- during well Finally, expansion banks medium-sized growth Anti-Financial share anti-money and of division. increase in to primarily third year We XX% or grew total clients. solutions as laundering, FRAML, by as in million driven among prior XX%,

We continue small, financial adopting to XX institutions solutions. medium-sized new with relationships expand FRAML client our

in move-up to we Additionally, have market. our continue momentum

X This Tier client. existing quarter, signed we an expansion with an agreement bank

bank Specifically, to quarter a complex relationship this a of this solution include ability bank solution. their fraud to workflow strong relationships proof clients. to XXXX expanded client our that expand our has in as in our We view large and signed and with first detection us on with our investigation land point expansion is now the and

in to negotiations proof sign track and and on our engaged quarters. Tier Tier of additional banks, coming in plans concepts with X continue with the be to several remain banks and We contract large actively X

I'm announce X% delivered with Anti-Financial of brokers, customer Brendan banks Tier And business organic that officially Executive our lastly, growth, division. retail customers. as with we our to new Surveillance large leadership named we've Our continued and Crime Brothers including as expanded growth President revenue X Vice position pleased

continuing to you recall, thrilled as basis him me. to of the team, report to role our member we're this formally As may Brendan earlier welcome year, interim directly and to a was on an named leadership

To wrap up.

that, our reflect and position financial turn business Our I'll to to the results into our now year-end, review third strength over strong closing the of of Ann details. with going Adenza call with the diversified And the transaction quarter demonstrate our view.

good morning, you, Adena, and Thank everyone.

website section noted. at non-GAAP release this our quarter's commentary comparisons ir.nasdaq.com. year primarily U.S. in Relations results, be Investor GAAP results. prior can to found otherwise press as Turning results a non-GAAP all will the Financials unless our be on and as My located to the focus well of of will file in period, in Reconciliations our to

I will net start by result net including of beginning The in the performance reported million organic $XXX net of Services Solutions in X%, growth the from $X rates Trading Slide an and on in revenue X% the positive quarter XXXX reviewing is lower third increase increase of of XX revenue, presentation. divestitures. impact changes and and and X% acquisitions businesses, organic slightly FX million in

and XX prior to Non-GAAP profit of operating share the to basis per increased operating non-GAAP $X.XX $X.XX while or in million diluted diluted approximately operating to year margins. $XXX Moving attributable the period. share prior income margin was down year Nasdaq XX% or net period. was from the X%, income points compared Non-GAAP $XXX million per

Slide to XX. Turning

the and by XX%. billion, Anti-Financial period reflects SaaS earlier, led an prior Crime while booking mentioned totaled revenue quarter in million, annualized growth increase totaled ARR in division. $XXX of strength Adena of continued year ARR growth $X.X revenues As the increase from SaaS broad-based X% an our

delivering are similar and elongated recent sales of quarters. our ongoing despite business, cycles solid Insights certain areas We in performance to Workflow

working in the strategic are our with executing financial are pillars our and We current to markets. of and closely bringing macroeconomic transparency integrity on liquidity, customers uncertain well environment

review flat offset XX due now down in lower equity by on will or to driven million rates. better Platforms revenue division. increased Revenues was revenues. quarterly the X% Services' starting that lower Market Slides Trading European with capture changes $X XX organic driven despite revenues from I trading FX division X%, volumes, through by cash U.S. largely revenue impact positive results

which a volatility in lower is seen have steady. volume of share increase common trading, an available environment, remained Nasdaq's in off-exchange we has While

X% revenue growth business. delivered Technology revenue we Technology, our in Marketplace reflecting organic In growth, solid Market

benefited recur year. second and a the As of project testing growth year a reminder, the from the in to Marketplace in Technology half expect the revenue large that revenue we first delivery of half don't

upper at medium-term for We the continue to growth Technology full revenue of end be Marketplace year expect our outlook. to

the ARR market conditions. rate of quarter period. totaled Platforms' to slower increase growth, million, third in prior XXXX, $XXX prior growth an margin year the due to compared near-term compared was from periods well representing resulting U.S. of to lower services management from This X% trade opportunities the due in investment compensation to cloud lower is Marketplace a Market XX% point new revenue resulting basis lower period prior as and investments trading to higher migrating markets from year XXX growth Technology. in costs, as European the related decrease ongoing activity to operating

in impact $XX to delivered or We million reflecting of rates. Access changes X%, the third average compared Capital to increase driven and revenue in a Turning prior growth AUM Revenues growth third XX% strong increased XX% by quarter, broad-based million organic Platforms. in $XX a from year XXXX, increased $X driven quarter. quarter million organic in FX of primarily the the positive by revenue performance Index. Index over

futures Licensing partially Index per reflecting for the trading to volumes. XXX contract, revenues contracts pricing higher Nasdaq offset linked a increased in decline by XX%,

$XX in the including of trailing months saw XX $X billion, net quarter. the over Additionally, we inflows billion

AUM in of by has strong trending overall benefited months X quarter. a the last year-to-date saw from markets lower we impacted AUM performance, market While the

Data to Listing Moving and Services.

X%. grew revenue Our

Revenue Excluding was the organic from continued growth. and positive business of combined in revenue reflects a changes rates, listings impact the IPO growth more on growth our muted FX environment in data impact strength and X%. delistings,

and have seen However, mentioned, we several high-profile switches listings year-to-date. XX as initial Adena

to and reflecting asset of solutions, third compared with growth organically quarter. elongated Analytics our revenue and in Insights portfolio affecting 'XX, X% the for cycles our owner and revenue ongoing across corporates, growth sales for tools our management increased IR particularly ESG Workflow third despite quarter businesses the

an Capital prior year of increase period. $X.X to for billion, compared X% ARR the totaled Platforms Access

remain period. operating ARR impacted rate parts Corporate and basis the division XXXX, prior our cycles Capital sales margin impact continuing products XX% of growth data Solutions our the increase growth in solid, been slower Platforms' roughly The an has the to year on Analytics Access of points third While was quarter from ARR of by businesses. and XX growth the listings related of elongated

Anti-Money our as XXXX. solutions or revenue the to Laundering robust Crime solutions. for third compared as $XX increased well Detection million Growth Fraud quarter and Anti-Financial demand Surveillance XX% staff-based reflects of

Our and XXXX. Surveillance customer These and continued AML including banks grew drive the the new our fraud third with with XX% to quarter new X% customer beyond position leadership segments. customer wins Tier to growth, reflect retail banks third compared revenues compared expand solutions detection grew quarter of of into revenues X brokers. our to ability 'XX growth and large

of for XX% to signed year million, but of $XXX the increase totaled $XXX includes Crime million, the also not prior ARR increase an period. totaled contracts an ARR XX% ARR, yet for Signed versus new compared which prior division the from commenced, prior versus in of XX% was the margin XXXX quarter growth year of resulting incentive timing margin of operating year XX% compensation. period. third period, approximately with the The X/X Anti-Financial Crime recognition the of in Anti-Financial

compensation primarily to increased to technology increase guidance. and of expense. or million organic a The million. higher to continued The higher million G&A to investment spend reflects increased expenses year-over-year increase increased increase expense, and both reflects and impact the $XXX Turning X%. in $XX Page our benefits business merit XX to organic increases, attributable expenses Non-GAAP $XX due primarily headcount review and operating

of We $XX billion, $X.XXX the to range. $X.XXX which billion a non-GAAP guidance guidance are to million expense XXXX is the narrowing operating to reduction top our end

than As X.X% which is of range guidance, updated XXXX. the $X reflects prior midpoint a increase of an result, lower million approximately the expense guidance our expense annual for

middle expenses the range. we and performance to the rates, XXXX updated exchange guidance currently expect Assuming stable be of near

full our guidance Additionally, XX.X% to a to we XX% non-GAAP to range XX% narrowed of from rate tax year XX.X%. range

or at full around for in the come the this year. range We midpoint updated expect to of

XX. Slide to Turning

at EBITDA from debt X.Xx months second trailing of end XX to non-GAAP the quarter X.Xx, of period at ended the Excluding down debt, the XXXX. adjusted ratio Adenza-related total our

During share increase we aggregate And our authorization common the a million. September, the an in stock repurchase paid to our billion. dividends approved $XXX total quarter, in $X of to Board of

Our billion positioned the the solid,and on ratio over shares our free cash balance to We flow organic including our with repurchase $X.X basis. execute remain trailing well dividend plan acquisition, flow increase time Adenza announced a remains and to generation of cash sheet deleveraging we growth, on dilution. strong, is minimize XX-month support payout

the reflect well will Nasdaq's In to wide environments. operating today, your over to perform time, of I the for a company's quarter and third results across range turn it back continuation closing Adena. ability of Thank you consistently

been Ann to And steward in like Investor at the our take a has our her this Thank of end ESG enhancing our you, year. Ann. years Ann Nasdaq, reporting Dennison. moment role CFO most before as and we acquisition voice turn X leader to a After would Adenza. performance, the I be a to Relations Q&A, down acknowledge guiding to and from to financial market stepping at Ann efforts recently company's on a through transformation, of announced our will

for we'll with wish and and we to the to partner very her I best. departure transition. as and CFO and from ensure CFO. she join In us team the next pleased Nasdaq, served seamless our conjunction Sarah us Group with Ann's and company, want been where Ann upcoming Nasdaq. Board X, December to on Sarah a phenomenal She's to personally a Ann Group EVP the a as work closely Youngwood join to will many from member. Sarah we're me welcome and contributions her UBS officially thank will Executive

And turn call operator over to back the for now the I'll Q&A.

first from I And question Michael of line our show from comes the JPMorgan. Cho Instructions] [Operator

my for question. touch I just Adenza to wanted first on

talk that, was or of Adenza. opportunity you the I touch from hoping also for I opportunity talked you the growth on related revenue segments. to both going you And growth revenue the to of Axiom then as about you about year-to-date you can update and hoping can through the cloud ARR. clients think, just the Calypso, kind I on-prem -- solution for revenue the trends both and But Adena, you for think can mentioned think

we we're some we Well, you. and color Axiom I -- the don't or cross-sells. up should new in client XX -- sign Thank revenue Axiom, or new between had XX really XX terms up when year, good provide at Axiom. for I -- and Great. upsells, Calypso. And say split, bookings XXXX had XX the I between and so upsells and have had out But in can do X Calypso client you total. looking Calypso they differences we XX in And we provide and then X when that far XXXX give up clients the mentioned, financial, -- we in far that in sign break break X Sure. in new the and so new as new Calypso Axiom a it's X and even X And cross-sells. of cross-sell; clients

risk X clients about seeing sign this sales And terms momentum the the obligations up Europe because market. classes new really last that growth of U.S. there -- they a down driving of We're split also that United advanced out that think new great think regulatory into both And new reasons, the and I we do. are for that's in asset are When Basel obviously, it's States of year. is acceleration X of had coming the Axiom those about opportunity reporting across So nice all both just solutions, across demand things these are why the marketplace trends think solutions. solutions. -- really moving Calypso across as versus and as and in revenue game better but both a that solutions of well when case, the XX that the a well risk sales demand, driving that management management we regulatory coming as as more end are definitely for certain III then range year

really their bringing I and mean banks into in even a job I of nice brokers did think more solutions. Axiom

comes pleased to it's with we're very cloud, business. to continued generally, When it's interesting -- momentum So just the it see. in really the

cloud -- were really, XX%, bookings I'm the were is that's versus last the it think year. cloud XX% banks And mentioned, delivery combination more As One for sorry, I accept of for are ready a solutions. total to X I that was delivery of cloud think, bookings solutions things. new I fact

so been ready trying real of part seen cloud to trying just a all across out to Nasdaq. have our infrastructure. data solutions their -- that's centers. They're be they're that some to banks And And big across their are of we've more -- a purposely move

I terms think the has And we on that done a uplift able second provider and of is of opportunity. module the sell are away the we managed solution. in an that side that you're the And revenue right to from that revenue service team They're more solutions benefits a There modular, delivery managing flexible. on-prem takes is when the cloud are think selling for that. become cloud-based I they're their because modern. a really costs nice job of a

So are upcharge from able to we that.

We means haven't uplift. discussed revenue what in that of terms

ratably GAAP perspective, recognized But from on a thing that the recognized also to revenue one there's the Whereas the life cloud recognize revenue, is upfront. revenue -- is just over contract. on-prem more so of

So create in more this will well. revenue as forward going stability

could in bit get clients the gears mean, mean, or question. of types to budgets Verafin? these switch for revenue touch accelerating Nasdaq's little the had curious, that If my a of do I solutions SMB seems Great. tightening clients like that with types there. just growth are you sense there. expanding the I been it conversations I on Okay. I'm just I second want Verafin. just is for budgets

facing bank that more say challenges and would is and more of every I AML. fraud

just to is their clients are side a pure very in happened accounts. when fraud calculus losing investment on return they and good easy it's -- and that's make the -- their a something fraud they money because they So to have on

nice, a our really invested in clear So on return leverage and they come when it's capital solutions.

Additionally, a it cloud-based solution. is

an they're less investment infrastructure So an of having make perspective. from upfront to

frankly, a us. to cleaner And kind it's so of, commitment

then a clients. of is And really onboarding we lastly do job good

And to into small we very up the an to clients particularly them system have machine and medium quickly. onboard amazing bring those so banks,

have with year. expansion really the working well the you we of in we're these to banks, OFS implement ] large-scale beginning contract integrate solutions. or the [ just that them one with can did And integrate For client signed see, and the as that

our the more realizing to with of immediately took So wanted capabilities they complex they from been us it that implement solution. sort the investigations. We've and able

So to and side, frankly, true sure expand. really the going they of do having have through a the a money their good opportunity making of we interest matter In see systems. in just really banks regulatory pressure that lot of just a not AML laundering it's type

And complex. It's so again, it's an become increasing more threat.

of Our others. and We root to We're much lot just lot use algorithms in driving activity systems to found and advanced are the demand. than many than more AI criminals. positives able of many more false a show competitors, a conversations out -- good fewer and it's our

to have say really small had have I service is meetings banks So is the to They think banks, -- the they Verafin we're to and that -- I and I gone say they when clients. with me up And would -- really go conferences just provides I I their -- really and interesting to these really do find far think testament a also the partner. by thing as I come to last a the that team great use word that good is favorite partner, we're vendor. and opposed that's Verafin that to

KBW. And from of question next Kyle from line Voigt comes the I show our

a is framework kind think deal the trading, now you could closure after mix closure, should you help level deal for frame of of environment is revisit stock we closure? sight deal to where wanted provide a capital rate line bit you there? about and capital priorities, the and buybacks of there anticipated have And closure. have of specifically versus deleveraging any So How allocation for the that buyback, your interest post period, could more on post on clarity topic just to maybe that the deal specific

Ann?

Absolutely. Kyle, Sure.

we business we the to going about invest that think Adenza to the we But our beyond organically. closure, the years. will deleveraging to market X to of we in our our -- the XX% that, foremost, is first the evaluate to when and are priority X to And to to But the up post targets continue XX% So a obviously, increase acquisition. and priorities, ratio to deleverage our we from set out as be get payout priority deal over to then drive that, next will dividends our capital meet conditions next repurchase terms after perspective. announced we share ratio

beyond issuance share use ], both in our trailing $X.X Adenza we're up to had employee dilution, flows what's flow cash free the cash deal. to related issuances going the that, offset strong. we a then our And very basis. [ remain billion and from XX-month from mentioned I on the also October to And then

So priority of those the that we positioned to in all really I listed. well order feel things do

Okay. ARR. Adena, the mean, growth strong some Understood. of for the you And Adenza for kind high-teens drivers of mentioned I

since growth nature of medium for confident kind of feel -- on out length June, Adenza -- Just the for cycle of there that that given the more XXXX, specifically? as the announcement less look provide of Adenza low the to updates mid-teens do target term revenue and could in business, you deal seen the and any or sales you medium-term we the you've kind progress wondering if in just

Yes.

of customer revenue, ability as don't, the would Nasdaq. part of outlook in know, confidence Adenza So year. ARR to delivery that achieve mid-teens across Adenza revenue medium-term low our to anything to be you continue But once becomes plus we a our and specific to provide have that we business, the growth

generally mentioned, be there the a as I strong demand continues solutions. think really to for I nice

upsell been And I they've to then think also, to show the the able that really clients. ability

over accessibility signing just solutions these gives the [ last time. need-to-have from clients is they're more And more So the banks. us environment new this of year kind than -- are ] fact year

an particularly we're ,there's across the that, think asset across regulatory -- in that environment., and as in past, really also pretty more demand than are risk classes. They other I been for solution. managing through driving things and the has complex risk currents increasingly there system the

medium-term outlook, remains at medium-term growth. revenue to the overall same over low So that outlook mid-teens our the

Stanley. next show I question Michael the from line And our Cyprys from Morgan comes of

as to introduced big speak that could Understand I was about tech to the Google, AML Verafin, there's you evolving. Verafin. today competitive that wanted such environment companies, for how I ask solutions. some you hoping have see

could to expertise. have deep taking of stay ahead about competitors in big Talk of you're steps So differs. solution maybe pockets speak tech some you your AI to how that the the

Yes, what Sure. Google that I doing is what a think there and is between difference so doing. we're

Google internal with bank's that -- partnering an bank Google's but algorithms internal leveraging is support AI So of and essentially as like a specific it infrastructure. think to build providing

agents. bringing of for, is that that bank we specific the patterns algorithms very and they're call So to looking what relationship

is build of really capabilities. say, a I what benefit a that the infrastructure, but underpinning their you're right, so facilitated -- of would on bespoke facilitated -- Google AI of and with in kind more Google And the the

What of detection, the we purpose-built purpose-built is do for investigation needs fraud is a reporting. that software and solution AML complete and

And solutions. so transaction also banks, solution. The that a we we X,XXX cloud-based an across provide data we have end-to-end and fact we -- are

AWS. leverage we data that of transaction So And to bring we're together. able all

adding. including So AWS and engines, we're capabilities bedrock is we're their AI that We're AI cloud their gen our for that using leveraging solution the AI capabilities the provider.

from it benefit I great to allows think large us another technology that company.

But built we purpose-built scaled X,XXX that is banks. a have solution across

it the their bespoke makes have so bank own build. do doesn't it And to to

and We to thing we they're solutions. to to all And are and of the knowledge out say last build weekly releases. in the benefiting our across engines experience the would do these from banks is continue the seeing I what tune

seeing those bringing the client. X our system with of into And to just staying not on that so banks and we're benefits always the they're agents then all as touch what clients,

are we're what the with is we And nice share, builds totally because as internal compared to a -- that Google different have momentum. pleased one sale we we're a consortium say The in and data be I the benefit solution. also last really that it would winning with at terms to look so of and a it's really competitors -- taking the of than we out we're we're do bank. of taking different doing the think out So really thing it's winning would workflow -- is

But just might uptake institutions. launched follow-up on by concerns a payments around FedNow just rail. that real-time in And limit I question, if a the new could, fraud there's Great. July some Verafin. just

clearing set well. you there? just been service you So Verafin's evolving sort solution real-time the believe as I you in a to see the payment of some place real-time And that's payment solution? speak houses opportunity can time? How there from learned for any And lessons have

Yes, yes. Actually, we do. clearing the house. with We connect with FedNow. We connect

the So working big they contact the providers bank in able been provide in with context of the and -- core be real-time payment also We've we the are solution. infrastructure to banking FedNow because we've Fed banks rollout. rolling out system the to other a to real-time -- been they integrate payment solution. their And core with

So us detection. it we've fraud to banks solutions and been integrated we're to working sure easy into the onboard for with make for them make their

So we actually small with area specific -- speak. growth a SMB that our that to banks banks, it's as we're definitely engaged our is medium

Craig next I And Bank of Siegenthaler the line comes question from America. show of our from

activity. first wanted on to touch pickup I IPO the in

to Nasdaq IPOs. see big we've a then, it rise. But rates high seen back, quarter, at the including was nice since this So really win markets way several pull

Now you has near-term have the macro, mentioned the in how the robust a I pipeline? pipeline, but impacted you including conflict know Israel recent

a question, it. impacted it's has great Yes, It Craig.

which seems with characterize the a 'XX? the unpredictability environment, the the think 'XX understand earnings economy underwrite say slowing and to day, the rates, down future I and how call I significant creates an -- of unpredictability still been would free into a would what coming lot and what environment underwrite that an overall are So future; coming environment; you have lot we're It's a struggling end if very Because of of -- of that with. resilience would that they rising have interest of economic money to to hard I a and that it's environment is risk. they investors a at company, can't but of off

]. say rate went we would environment likes pretty a of is the We more a started green as it starts. through the see spring, [ But to [indiscernible] known. to shoots, that little with as kind bit say, I frost fits deep started light So interest became and fact some 'XX as the

more obviously, is starting to see geopolitical companies then course, how and really again, making unstable. interesting So And macro you're environment again become we'll risk. September. a the of come some And pause out the understanding investors on that, much we, had window that environment have open in change to take

really really do companies. team really, actually is good pipeline team. a just we I of have mean, our the proud of awesome. So We're

we're than clients, really majority the the working quarter But with next first not clients. -- And year. to all much this the so them, work but half conversations of with they're fourth year, the are of hard more the having majority so second the about of than of

Adena, And you on 'XX the and percentage a Can from accrued also is quantify data follow-up can my what period? from us your IPO revenue just listings strong and roll-offs and initial coming revenue headwinds and for remind you topic. of XXXX from similar from that listings?

I to again, -- business. know the listings in the Yes. understand a question of good kind dynamics

we initial and Because to fees. everyone, have from new then know listing I exact listing our percentage remind don't the have listings. just our revenue coming that's annual fees So we of

how period to Our listing think, X are fees depending a X-year listing I it big type is. X-year amortized to initial it and of the on X- period, -- is over

that will which in revenue So is through, you're somewhere and off come from around of in 'XX. right overall and the listing XXXX some is that so revenue of... the listing not revenues, -- but rolling range flows our off the is XX% listings, that's -- all, in initial there listing that amortization is answer The some as

Year-to-date, million. $XXX

million. $XXX Yes,

go So have that it's fluctuation into will XXXX. revenue as -- you some

fee that the fees. you've every We to do quarter, experiencing. annual January you in at provide think to data about as got listings and new an we what as well delistings listing revenue like annual combination the billing look we're so for is the And from cycle going of look that as the perspective, the

So to in consider 'XX. those are the big factors

our show Oppenheimer. Owen I the And of question line from Lau next comes from

So to has the your organic business long-term come of back Solutions medium- your to outlook. growth and accelerated

like the and IPO Verafin market remain muted, equity should talked few just remain stable crime Index other and in your next You the Adenza? over anti-fin the market, and about the think business. quarters, investors if growth wondering excluding strength organic in how about term I'm near business

-- Owen. -- been specific businesses But the don't really by growth Sure, quarter for a mean, that I in have Owen, really that think, to primary quarter that again listing specific see to you'll think into outlook 'XX, revenue outlook you of or starts Solutions that we IPO if on because will fees. benefit I I that have right really returning annual a give our all guidance pleased or to start And communicating actually environment, we're to and starts while we're now. we then it Well, you're year-over-year. medium-term think into engine that the I happen in healthy just to that flows see 'XX, we the turn

probably in loosens investors environment, new stable good environment invest it up they that flows, a more solutions And automate the their demand. index have also obviously, data that are healthy then, drives we have. processes and if that of help ready and drives and that, beyond listing corporates to it a lot it really trading so But makes manual

decisions could space. and, that unlock sales So interest to frankly, in it more continue could -- easier that

to our I When think it good of job the next-gen Those of a solution, comes crime nice there. anti-fin businesses we've so trading really are getting really -- technology risk across next-gen our CSD bringing state and into solution, done our and we clearing maturity solution demand solutions where on our to -- and management market though. future, a have tech are now their exchanges very, solid focused very

then -- anti-fin driver is need-to-have feel we technology, we generally. So stable we And more demand do as a crime the just think available. that it's technology you know, is like best and have

-- just feel is much very that demand, is like we So structural.

means that Solutions I growth. say, helps create environment healthy healthy opportunity business But exactly for for a certainly market what having So can't general more us. even Owen, --

any on things mean Adenza. Got you in the quarter. cycle Adenza could just it. that. like gone? sales just we the if mean, And elongated Adenza think, for third I'm sales I is there's I talked sales teens in on I'm it release -- wondering budget have cycle. quick no growth, -- the helpful. high I Adenza? about impact about on How cycle, or one a wondering, the like have That's sales been talking is cycle there high

of -- do Yes. I to have all lot the think that many are And gates. larger of of demand. are through more actually to we we're And the they're gates with there's more when a our the the to think Surveillance regulatory are kind past, larger institutions, except there gates -- walking I with business, gates. a these crime especially in the particularly through that. a that business, understand [indiscernible], gates through. have institutions experience that marching there But anti-fin get are that sale, to walk with great gates there our But

demand. sales -- for interesting. demand, mean, X when cycles I -- we're near-term yes, if super regionals months Axiom that's really like And sales we've there's regulatory some immediate there bit interesting a is within shorter cycle X a or up been what short sign the little regulatory really longer. had some really really a isn't months. really or some That's But

would 'XX. cycles than it of -- to experiencing time. a in generally sales that certainly we over think end macro environment 'XX speaking, they had they're in really environment, I more around if But and the I actually they us be healthy think experienced advantageous macro longer predictability

Brian from question comes And line from I Deutsche Bank. next the Bedell our show of

back Verafin. on just Maybe

in to fourth that of going last the say you type the I XX%-plus in you've the that in just that in been years seasonality quarter? around Do represent terms Crime of should over the we normal seen also into to the that achieve that XXXX? of or in then pattern rate last years sort confidence have able Anti-Financial Just couple of broadly. expect And past business, growth X

of generally, see our fourth that, we in that's quarter the the generally like I in seeing. Crime we what occurs business. it's for would say do bookings think Well, Anti-Financial somewhere the XX% we're Great. -- range And

the as now is do upsell don't experience we -- we have we though, little when largest if seasonal, banks, necessarily a of bit much that's So -- to we that not the there's difference, and there.

So we're not we're every something quarter, to that going not something seeing fourth -- single different. that's see

the which quarter for and core a business case the XX% the banks, so well, to small business quarter. But medium come of that's as big far, quarter. of sales of the in kind anti-fin And is bookings fourth fourth Adenza the to certainly crime tend actually with the XX% is

In we're terms characteristics with anti-fin the progress. of very the just business, of crime the general pleased growth

continue to We XX% growth XX% continue see in experiencing. rate good that to that opportunity to we've to been grow

progress the there. back see and industry of 'XX? update in least, XXXX? on, you just of debate And lot a structure implemented debate anything to there's the the of Or big forth on good do SEC status see and market the you linger into it's it's But proposals. the being sort that. I at will potentially do think Adena, note, Of in on then, if could know maybe us you a it's --

that that look X be XXXX. the the proposed, we'll what to that's we see get to going We to think to don't has I -- come go proposals I through know out on expect something start would yet. implemented like that as SEC

in the seem X quite that little feel that that a sizes -- had think think the I bit and lot X certain proposals. very general, of comments And feel certain. proposals on the tick they've I Those XXXs. a more the are

have more within that engendered on Competition Order I think ones industry. the debate that those Rule, the best and lot DECKS the are a

to So turn know that's out. going we exactly don't how

of Clinch our line from from And Simon comes the Atlantic. next I Redburn question show

you're preparation I large that, again it's about is wondering and transaction, ultimately, what business going to and Adenza was forward. be if the And of going toward the takes just what a jump existing the to in and you cloud this of the for this the your and your could to integrating an fully I about we one that of business. comments are give that -- think wondering expense infrastructure on, and your base plan. was integration. to what that update guess, Obviously, means really I if actually puts us to back margins how stack to technology integration Adenza

Tal them on we're to plan. the team kick going very built those them. feel a sure good been don't and we Great. with extremely We lot to regular several say integration the we Thanks. to I make off months, been plan. out with building own that the still, and integration has now team focused a that And and X. for engagement plans Adenza robust on We've Well, develop having day engaged can entire we're granularity how about really the more obviously,

and we're able more to of amount out great people own the operations, we detail. a meet able once understand that them, So really into we'll be flesh and to

integration delivered to at we committed But that we're announcement. extremely expectations the to all the achieving you

also the infrastructure We have. see benefit That's actually we cloud integration. our of that in definitely part

work detailed yet them. because We on don't have lot that own we not done a of

We my have proprietary opinion, cloud in IP a capabilities when to and our cloud our lot it team. of, comes

them technical So be benefit. we own will into with relationship we really, our want we think, before to make But sure that we a on go dives really AWS, deep the infrastructure.

think creating we I efficient infrastructure, very think it's perspective, in helpful. a ingress/egress from the very have expertise particularly I cloud going be to that data

How capital they multi-tenant in to want want with regtech, can we be to of have of years, X get to do partner as we And there, see in this really do to a them that -- we environment to have working to view much look own capabilities. we we It's What create so risk overarching -- single-tenant, a us anti-fin develop them. kind cloud do -- there's markets? clients want to so we I lot do there, a management, overall but delivered? continue great how our to forward these for crime, a have strategic capabilities? like we have across services

give We with the to so in have you we that of get really and months them that a engage better answer coming to kind can quarters.

That's guess little just bit. a just question changing second here, tack great. a and I

wondering your to the forward? this a rising if a management times going on I've more of could I have think And sort bit of substantially are of should was about has know while Just how on or that market when quite with sort strategy deliberate you down? a business, do on And expand been I cash Or mix, some but dynamics of smooth is little volumes noticed there. pricing equities we taking the the capture fallen. the revenue slow I guess, this has out sort part revenue what to, that by bit stagnated

manage one to said always share of we a to by Ann on been of capture. there that we've times available trading we've In do make volatility and that tends liquidity? occurs down, And think is been I pretty share is Well, sure is have we've to available one to that exchange. And mean that? we And share the our a like when we before, liquidity. of good the balance more between be goes mentioned of stable things what what able focused things off

percentage go trading off-exchange tends the to So up.

with competing say, So can we then other bring and actually look we and what are exchanges?" into and achieve at how it "Well, exchange the we

additive We we we what And of that, I we've "Hey, solution?" at kind liquidity. say, to look we there, then volumes our attract call a in And to available that pretty stable we trying want about within XX%. are And attract the think are then what to share platform. maintained overall-wise into volumes of

orders certain get in. one, into and to the orders, work hard So that going we're to other come feed those market orders

a mentioned, a lot as and specialized provide of for order they're because us to specialized us execution interesting, to charge types their higher capabilities, thing other that we capture. services that also rates allow we have different allows really is The

just thing share share on not that have the frankly, if not in. share, and we fleeting, that chase NBBO, that additive that's other you impact brings you negative significant one the really But that capture, volume don't can get do a to just share is chase get is

we're go fleeting in towards of moving we're So competitors very intentional volumes doing doing about share. seeing more our others very, our that, some capture of terms capabilities, up chasing of and not you're that's specialized why because and what the are

time. I'd closing Chair call I'm showing at turn further remarks. CEO, queue Instructions] this like back to and the Friedman, for questions Adena to the no [Operator in

Great. advance you of to Well, we we journey the become Thank closing system. the approach transaction, all the world's to excited along continue fabric the as continue in our to to of trusted the coming quarters and you. are of update financial Adenza we

you. great And very thank a so Thank you much, day. have and

Thank you. Thank you participating. concludes conference This for call. today's

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