Nasdaq (NDAQ) 31 Jan 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Nasdaq Fourth Quarter 2023 Results Conference Call. [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 to Ato Garrett, SVP, Investor Relations. Please go ahead.

you and us results. full thank Nasdaq's to and quarter fourth year morning, for today joining discuss Good XXXX financial

the the Chief the Friedman, Officer; Adena and will Regulatory our line open and other Risk After On Executive members prepared and Chief we of Chief our Legal Q&A. Sarah team. Officer; line Financial Chair our for Officer; John management Zecca, Youngwood, are remarks,

the certain as Actual events statements intend and and disclosure release within materially constitute on presentation means to may nonpublic use material, during earnings website Q&A FD. this obligations I of Reform with and statements We differ press The projections. and Securities of would remind Act our may Private relate results information from the like are Litigation a Regulation XXXX. expectations complying presentation to these disclosing of to website. and that forward-looking you future meaning in the under

the results this forward-looking rates substantially any impact references that growth and with Further, could SEC. Information our contained exclude the will periodic reports differ release statements divestitures, to changes and cause to concerning impact press all in is performance filed which in of months factors the of quarter of related acquisitions the actual and and... [Audio Gap] Adenza from FX in to included X fourth quarter the organic

business improving for Nasdaq an environment XXXX. for in

to have a public have We filed Nasdaq. go pipeline that companies of on healthy

solutions new a signs in sales quarter, we owner which Additionally, In lastly, volumes remains cycles very market fourth for for a technology saw comprehensive interest are point the in inflows early strong XXXX. off client XXXX, net into our throughout And benefited solid to represents of index solutions. and of products, from our we in billion IR strong. and $XX suite asset the normalization our also start year starting and

in compared mark increase $X on an during prior This the flat. time quarter, solutions increase is the period while achieving across XX% delivered net and in Nasdaq first our to crossed year businesses quarter, a Turning the a billion. billion financial fourth was Services organic In results. $X.X Market our We organic single revenues X% to the basis. the for of a quarter, X% revenues

For year, the basis. revenues billion net XXXX X% $X.X X% on full from organic of or an increased

dynamic organic -- X% generated organic Solutions is growth, overall which our Solutions a consistent revenue market annual revenue outlook with environment. despite

of Our year-over-year, muted to in performance were XXXX. Market in strong flat due primarily continued the on volumes revenue back Services Europe

ARR, increase more or $X.X ended as year-over-year. year the an lower slower contributed modest ARR solutions, revenue, recurring XXXX. in activity growth to environment, a billion, our annualized in corporates organic well The at by Our IPO buying for of as X%

fourth in quarter $XXX the revenues Annualized million XXXX. to SaaS increased of

rate XX% Adenza. for Excluding excluding full growth AdenzA, revenue while of XX% accomplished XX% and the we the Across at total maintaining growth a and year expansion operating this margin company company, our and basis, ARR. represented quarter both the business

to deliver ability Our our this an environment. did and evolution. the unpredictable against in important diversified step an We in strong taking illustrates objectives of XXXX our longer-term strategic strength performance Nasdaq's business in while

proud team the to are the regulatory and extremely past as accomplishments. goals Adenza we working reporting team's risk now our complete and pleased X, of November excellence. acquisition, year, management one clients' on Nasdaq's I'm On are we further for to Reflecting

financial be achieved of the the and year, was Adenza world's we trusted our the divisional With vision the several business. system. Throughout transformational to XXXX establishment a advance of deepen fabric our year our relationships milestones major our for client the and structure acquisition, to

highlights by starting Platforms. division, successes operational with client Now Capital of Access our let's and review the accomplishments

billion premier raised the are our exchanges of listing operating position both IPOs than In and XXX U.S. U.S. as you IPOs number an operating we at company with that of more marking our As terms XXXX. rate for the consecutive Nasdaq, IPOs total, win We our in U.S. company know, proceeds $XX exchange foundation. XX% proceeds, in Nasdaq's fifth raised. in as exchange welcomed year leading maintained

listings In companies inflows including of XX market had value switched representing fourth billion in $XX addition, $XXX the year. quarter. we $XX the Nasdaq billion year, in In during the billion their net to Index, for

indices bringing want with investor market clients launched products to solutions XX during -- Our Nasdaq year, robust demand. new in linked our line clients to the

side to intelligence our ESG. Beyond eVestment institutional leadership, our index continued the and into leading buy through of source and offering to expand Exchange and have a we are alternatives

continue broaden an navigate to XXXX, eVestment solutions Nasdaq including investors help corporates ESG ESG multiple our in evolving and analytics. offerings launching and We to ecosystem, Metrio ESG new

introduced including excellence to a lens also suite new solutions accelerate governance ESG corporate strategies, sustainable We help IR drive their of designed and insight. clients through

Turning to division. the fintech

and financial technology global With market and reporting we key acquisition, of that crime, system. technology management the surveillance, the powerhouse completion as anti-financial to solutions positions our partner us a financial of have regulatory risk created a Adenza risk

financial navigate a support proprietary risk risk of analytics of client Our detailed across helps range view solution and real-time a institutions portfolios to trading live Calypso providing management decision-making. market with conditions,

clients system shorter infrastructure global the global world-class regulatory helping market through level, financial them by managers in integrity be fragmented their solutions. suite partner to risk investment enables our the anti-financial through Similarly, to in as reporting maximize and crime an of brokers, management comprehensive worldwide managed liquidity providers AxiomSL our risks as markets be by environment, benefit and technology now well scale can and capital across banks, banking to Nasdaq's enhancing our increasingly solution at expertise. complex a regulatory timelines from granular where and and a need We

is new Tal closing With of are a and division, lot of part our there and and with to Adenza we're NAS and been the with the speaking and opportunities Co-President I potential engaging Nasdaq. on have the of months, clients past fully leader the excitement of successful Adenza, over Fintech a personally ensure around transition now that smooth our integration. focused Cohen, few clients employees and

upsells year Adenza the strong finished with sales solutions. across and

including months, last signed X banks. we X the Specifically, X new clients, in central

relationships We also with expanded existing XX clients. our

For with year, the XXX relationships clients X sells. including cross and new existing clients, XX added expanded Adenza full our

Adenza Nasdaq, We new XXXX the in are very to with and and we're heights to part thrilled ahead. drive to of excited solutions as enter the business the years

Turning clients, of [indiscernible] fourth footprint to Technology. in XXXX, addition the including client In our with Market bolstered X quarter. global X

X the with relationships our the more XX expanded and year. also clients full in fourth quarter than clients for We

LatAm and Importantly, we had APAC in regions. signings technology the key in client

of and Colombia. is Peru, partnership Chile forge We marketplaces across are technology Exchange, new proud consolidation to which with nuam the

with in our securities digitized with Mexico Brazil central to modernize expanded Chile's this new with technology platform. solution, capabilities BM in with also post-trade We BX relationship clearing a managed depository assets and entire to and develop

Our power growing of which resilient crime In customer with world. growing we the we're X,XXX relationships from consortium highlight the to data global crime solutions, coupled suite the liquid provide, financial fight threat banks importance set our markets financial our technology, system. around bringing the the financial and of technology in anti-financial world-leading of

embrace financial of sector, that the public It's estimates partnership which was flows financial that of the system billion collective Our the challenge fraud. advanced global sector funds action and $X an and to with experts, outside in lost technology. illicit report, $XXX is crime the enormous inaugural banking requires over through trillion conducted global across

financial sector. in in of finding to crime we're are strategy. capabilities continue banking anti-financial growth a across our We opportunity role expand milestone proud and XXXX, we to very fighting our reached crime, our tremendous the In significant

Tier fraud AML our in the Verafin, as Tier X first and year, banks X the During X signed X solutions, X fourth X client X banks, and X including Tier as quarter. Tier well its client

for total year a medium-sized and fourth of XXX financial growing small for quarter institutions We alone. partnered XXX a this new of also with the and number clients

with Additionally, now we copilot, proprietary customers. fourth is our beta AI Gen our which Verafin developed in

and resources clients tasks at Our Gen tools processes invest alert as resilient increasing to in and ROI. By on such enables their and Verafin efficiency, reduce AI our an reviews, manual research operational documentation. growth spent attractive time

We capabilities These in give clients signed surveillance and in more effectively. significant by a calibrate surveillance efficiently the XX fourth architecture interfaces. Surveillance, quarter. the within solutions In XXXX, in innovations their our including launching new our cloud-based setup new strides to clients ability and X user made we modernizing

XX% surveillance of our XXX cloud alerts more across globally. our solutions, sophisticated XXX clients to trade leverage Nasdaq than access Today, deployed which markets support

As user our of and we enhance adoption the surveillance continue to capabilities, encouraged early we're architecture our cloud interfaces. by next-gen new

strong quarter, position Moving environment equities Nordics Services. XX% market cash the in In in European markets. on our challenging continued our and leading to U.S. volume for share demonstrate equities options the also markets. We've a a across maintained against we the markets market the Market fourth

to product. volumes cross Nasdaq closing of the events, our quarter, growing experience rebound we S&P, we and robust from benefited MSCI In the NDX our continue and Index options own fourth adoption from

advance markets quarter type continue the second to launch called Additionally, in to M-ELO, the approval of our AI-powered infrastructure successful migration the of U.S. order market Dynamic we first first and cloud the to we with AWS options which of expect the with of modernization SEC the XXXX.

margin value. with will and an drive while profile Altogether, we're growth that speed delivering shareholder attractive revenue moving

our the year like With focus, now enterprise in for priorities to share ahead I'd XXXX.

we in to on to and of great successful deliver the ability the laid at out the integration that initial the priority made first phase integration is in progress Our the deal. We've Adenza. continue of time confident goals of the remain our

Second, new and that we're opportunities will divisional accelerating drive future. structure into unlock our the to impact of activate the our business

year, to our benefits structure the across continue Over we've we of in past realize divisions delivered of each progress and XXXX. the will significant business this

the CRM our gain growth Third, the XXXX, of understanding with to systems, the revenue enhance we going we and clients In across company to processes a approach our partnerships across client and data, cross-selling client opportunities a goal our our and client program to enterprise have Nasdaq institutionalizing related focused unlock forward. to One engagements. are other organize our to holistic advance listening drive through

the the in ahead. in extend confident relations ensure focus investment in products. in and analytics, that Nasdaq AI on created fairly. with several we we're advantage and we over crime, fourth, can data securely our we've will sets vast business further AI, coupled decades our AI anti-financial investor implemented competitive is to and that solutions on years the critical is Nasdaq's our proprietary through impact leveraging And safely, the and that our And markets amplify has components covering

on Investor Day We another operational and execution. by to wrap quarters To strong significant you on look at year updating priorities the in and was come. up, XXXX our milestones forward to strategic progress and these defined

our become we And system. financial financial details. the As with well clients as review call better to turn to to we our the I the holistically that, trusted positioned more now world's look on we're Sarah serve ahead XXXX, over fabric to will

everyone. my Thank you, Day. morning, first be call firm to be at more at earnings to the a to many at Nasdaq. look Adena, good time, here and you not for am I transformational such and forward Investor join I excited could thrilled seeing of I

be a Adenza year-on-year at Now on basis. I margins My results. on growth will an operating comparability the provided end rate turn I our results discussed the on Normally, for commentary fintech focused organic section. to ex-Adenza discuss the will [indiscernible] of financial be results non-GAAP be purposes. will will will

EPS billion the move performance the Revenue solid In X%, like an reflecting which XX environment, in This cash the to for organic we the revenue delivered of uncertain up financial line X%. prior billion, an $X.X billion, XXXX, X%. year. of would Slide was resulted generation. presentation. with $X.X growth to starting and XX% X%, with flat flow a the year highlights on $X.X of of up Solutions strong guidance Before margin, full give expense was increase diluted versus operating I quarter, we you of $X.XX, in was Non-GAAP for of earnings

a billion XX%. of $X.X rate ex-Adenza, of had flow We growth free cash

percentage up Non-GAAP Moving quarter revenue the was We increase operating with million, reported with revenue on X%, of points. Slide billion, fourth on of margin and of X% $XXX X to expense of up Solutions X%. up XX%, an $XXX $X.X XX. an million,

EPS $X.XX, growth of this in resulted reflecting Overall, of XX%. diluted organic

$X.X XX. X% annualized ARR of million, up totaled totaled revenue XX%. growth billion, The Turning SaaS $XXX representing to organic Slide organically.

of revenue of cloud Excluding Including X XX%, ARR, Adenza, Adenza, the their SaaS points. an that number will as improvement was XX% which percentage increases. portion improve is of

reminder, to we consider revenue their of the portion a cloud As be soft. only

results division review Slide starting XX. on the for Let's quarter,

driven we by XX%, driven and platforms, For In in data largely demand. million revenue we performance Listing capital access of revenues, Index. Services, increased continued higher international $XXX saw have growth. a increase X% by In excellent seen proprietary in Data Data,

reflecting pricing of prior revenue. partially roll-off impact with Analytics of and initial offset and asset revenue year's of and monetize Workflow to was high the environment single-digit Listings, of delivered a across growth, data X%. the increased muted our new and impact side by delistings, the alternative Insights ability listings business In positive the pricing our traditional buy managers. the to value combined IPO increased

strength revenue weaker and The AUM by a XX%. increased by capital in overall Index was raising analytics cycle grew of partially elongated the offset impact Solutions. in and Corporate sales XX%, market

net Over last the $XX inflows during which the million months, XX quarter. $XX occurred our were fourth of million,

as to Licensing volumes. a partially for well, linked the increased revenues driven by capture, futures trading offset XXX higher contracts by decline Nasdaq index in

we the each our cross resets beginning increases of capture reminder, volume at a once year. As then a and threshold

largely $X.X data to extent, Data X%. muted was ARR IPO was billion, revenue impacted The ARR environment and smaller by revenue Listings. Analytics lesser Capital While Platforms size, in up Index benefited from growth Access growth. driven ARR and growth. a for Index also

we However, in cautiously cycles we optimistic recovery a progress we combined more see are normalized as XXXX. IPOs, with that could through sales

substantially to higher of for XX% was the revenue is quarter, percentage a operating due ARR. The all of division's increase revenues. As excluded X margin points Index from an reminder,

basis the and by in offset across points. was full year, revenue-related XX partially XX%, inflation, For and it expense higher by increase driven investments, roughly Index. was up revenues, Data The particular,

new The XX%. third including million of X%. XXX Regulatory grew Moving to this division Tier quarter, for XX% Verafin quarter, with delivered on Financial at the X clients Slide added our technologies Technology bank. revenue up Verafin XX. $XXX

excited institutions we as [indiscernible] contracting discussed, and complex additions, implementation these previously with the While are have about longer. this we is

will we expand in with accelerate We Tech but recognizing only start will subscription XXXX, revenue believe we relationships clients. as Reg these that

The Technology. the in X% with Regulatory strong performance XX% growth to surveillance, of of led Verafin, growth along

fourth versus in remain by new in For XXXX XX Surveillance, clients the impacted timing the quarter was But XXXX. bookings the year. for the growth fourth X and fundamentals for full the with strong of year, quarter

also We with our leadership cohort, broker progress client large made X beyond with inroads Tier the reflects which banks. position

Cloud driver client as provide. an it important to enables well stickiness and deployed, through the XX% now efficiency is above of is speed Surveillance us as which

growth, X Moving of signings driven on center tech to Capital Technology. Markets market Latin with demand. one X% our data We U.S. contract and by new had in saw Tier clients. We connectivity America

XXXX. contracts to expect these start We to in accrue

market growth Latin XX% a totaled fourth region. leading an in mentioned, we as Technology. As have Verafin fees. America X $X.XX The percentage billion, line the modernization expense margin well offset professional expansion lower technology in to up and with at was Market in control growth operating in by costs, and Adena and division's services in organic the solid XX%, reflects of continue The management quarter of overall increase to to in our role presence revenue-related and margin increase continued efficiencies trade top customer increase points. markets the wins due FinTech ARR an as for

Technology of continuing progressing to the to are surveillance. on Verafin and improve Market our support growth in are journey efficiencies the We

year, the quarter, of operating with up the percentage X including and investments. full operating mirrors a points leverage story XX%, was For that strong which the margin

closing on Before Adenza. words few a on additional FinTech,

margin finish a For November contributed million the a year full had month our in non-GAAP and year initial expense. to and outlook margin million XX% of XX%, On SaaS; year. $XXX adjusted A our was drove XX% $XX strong Adenza ARR, revenue; of X of operating Adenza for EBITDA basis, operating December, ahead which an of [indiscernible]. for million in million $XX in $XXX the

revenue Adenza's Let me now year and ARR. about full talk

a and on it. XX%, year ACV efficiencies. cloud net our during grew constant XX% $XXX million in had The of growth our nearly year. the We basis. supports significant ARR XX% clients this are Revenue or XX%. metrics cloud new excluding strong up XXXX, of occurred Both bankruptcy that take-up from coming $XXX was million currency of a by

ARR and of portion large year. the a the for from in renewal benefited growth Revenue in up quarter

with the Adenza's announced be we growth Going expect to forward, to outlook provided the when acquisition. low long-term to we we the mid-teens in revenue medium- consistent

on being quarter delivery on cloud focused renewal timing an The as contracts revenue have our revenue ARR at not of is will in mix method. of any on This year. impact by growth, and provide delivery of between renewable which on-premise given We'll are why more the is in division details we and the up revenue growth dynamics impacted FinTech and Investor Day. on for our

lower options. with U.S. equities cash decreases overview up Net Services. was growth flat by attractive the revenue a our U.S. U.S. by in our driven $XXX wrapping capture, roughly U.S. in options divisional environment, our offset strong cash And defending million Market with was equity's for and growth quarter, by lead competitive higher we In very share are offset partially share. capture. market

nonrecurring European exchange has of benefits in market execution increase. helps X help were we with generate investments to has equity. been data our and AF. offset to transparency made volumes our by share, Meanwhile, Europe, clients key The provide CapEx a their This to in XX% our million and the fixed market improve reclaim payment quality clients us our to positively them point technology our by a percentage leveraging to diversification enabled and $X have income between and ability

in migrating with related margin U.S. as division drivers The to due the history. the XX% capacity the costs market cloud. higher compensation margin operating in XX% invest people to fourth continue we result division's the was year XX% as a The the our quarter and quarter quarter totaled ongoing to as higher costs in same operating to compared XXXX and technology prior the for investments both year to of full

XX. Turning to Slide

a and good was the $X XX% X%. growth or timing story an point This businesses, professional in organic this million increase Overall, it reflects I of versus margin, expense X percentage X% the up marketing our quarter's revenue of non-GAAP points. a as million, as operating well operating discipline organic want fees. of reflects and $XXX expense

For XX%. the growth The increase full in expense. $X.XX revenue revenue-related line a with up at consistent growth is year, margin flat billion, areas, for and investments our non-GAAP We guidance. operating higher X%, due key inflation expense with were was to in operating

continue year divisions our realignment. and efficiencies part location as achieved of divisional our together the to we also as bring footprint during We optimize

Adenza full If you totaled billion. operating the for expense include year, $X.XX

guidance. to on Now

of X%. $X.XXX operating year year pro the growth We and synergies. method guidance full which includes a This are expense of of billion, $X.XXX Adenza initiating XXXX billion to midpoint forma reflects net non-GAAP of expense of in

On an just organic will under basis, be growth excluding Adenza, tax expense X.X%.

will more the the the by on cost in time net to $XX just $XX we Investor initiated. we spend restructuring We end synergies and million are target today, at set XXXX of program synergy forth but reiterate million achieve

Additionally, tax rate of the are XXXX, equity to on XX.X% basis, year non-GAAP full expected than benefit to slightly tax we XX.X% awards. due lower on guiding higher a

Turning be to Slide continues to of the flow Strong Nasdaq. XX. hallmark free cash

of For cash million unlevered ex-Adenza, we cash in had the free year, free had pretax flow. $XXX and $X.X billion flow Adenza

expected are deal we headwind of Our gross euro pleased to close. the are despite X.X we at at from But was at at be time X.X leverage strength. ratio to X.X share year-end, that

from chart. quarter, term end and through share repurchases $XXX was loans. Let's The repaid million the At incremental of the the leverage we EBITDA our posted full ratio growth. Adenza's year details acquire ratio leverage of We Adenza. net At and benefited to from beginning the on the X.X. go tax added adjusted of December, third the the

first XXXX. continue to of expect deleveraging We quarter in the

of ratio. share fourth stock And And utilization, million repurchased paid in we on quarterly of cash for a annualized to $XXX the a have common this XX% $X.XX payout wrap including flow year, $XXX free dividend per quarter. we our million up

consistent today, margin Nasdaq's and deliver flow and range performance this growth, closing year's In ability this shows free cash environments. in a quarter to of

will park Q&A. with our committed us and power the our turn reach to technology for we the disciplined Thank resilience, our to I and in back and We our invest The position innovation. as and you record, continued are sustainable success. execution client's growth your time, for data years, have for we made over helped operator our

Instructions] from Oppenheimer. the I comes show line [Operator our from first question Owen And Lau of

color I that know that initial Sarah please during progress Day, on integrating and cost mentioned more achieving of about could the you may talk synergies? Adenza you and revenue add Investor but

we the model a X. November on said, so as we go-forward closed on Yes, combined -- basis, Sure. We created you operating meaning we teams. immediately the

to structure the of a client and make that sales under we combination that technology as teams the success, the Tal. organizations the delivery together, Adenza have operating working well We as been leader Nasdaq a we've hard teams now And together. is personnel bring sure very

think only as operating but we And X so definitely it's couple a months I of in, team. are

-- been We plan. specific defined a synergy we very and have have

We we're plan. of how have a as very that to sight clear line to going achieve

more provide will on We that. details

the in But but across that allows have ourselves a I has centers as a make some we that combination would to us create our to of of the that that all critical efforts just integration forward with the of locational Nasdaq, we and say, around to sure team Adenza within a leverage acquisition then Owen, very occur, clients efficiencies align world. excellence also going strengths strategy normal

have, So we I a do good plan. think,

They the management. us across more now want to and I sign to it new it's conversations those the on say very days, that us. and risk provide had Valerie, But had, largest develop that to early been tech, solve will takes takes People partner early that's and help Day. relationships. And thing anti-fincrime officer revenue their time then and That's see Investor to obviously Tal with reg I've partner as has time them deals. across who's revenue details last We synergies, really extremely the at a It encouraging. would problems.

them. that understand we they think I understand

We are regulated.

great with capabilities advanced and bring in within we have of regulators. can advanced then also lot a they Adenza. And cloud relationships understand technology We

in Day. we'll at color And those we've actually again, provide tell you So that more said time that for you to as are the take on conversations early synergies great. But Investor I revenue really up financials. all along, show the will have to it

it. Got

of the Verafin? you on on the in you fraud you talked side about the report, payment more think clients? and more and So other amount published a you for opportunity. Can Tier you in area X Tier about Is Verafin, or win potential strategy Which also talk can you XXXX areas? X it for

sure. we're study Yes, X did a working outside that create We Owen. pointing with parties. Yes, out, that thanks for

through So it was big to interviewed banks outside how the us. both system, the problem. number the is trillion parties and money of within then how actually to are $X.X personnel that $X is for of laundered the are trillion crime We having left to big the it? key terms a fraud. what in challenges? solve of understand, responsible anti-fin And And one, lot problem

that different criminal One act actors is differently.

have to just Number typologies you a always try root to we've So bank behaviors, X in really two, out one. criminals, bank. obviously, said number different to different of don't criminal they analytics have

single their problem. a solve bank So cannot look transaction at and all actually data

of banks X,XXX unique Verafin represent that have $X consortium topologies do really we trillion allow find root lake because within behavior. all solution to truly really defined out and a So that criminal assets more data us very is a

Where we're more So in been false prove we're up quarter. we've fourth to Xs a positives, with been out, signed focusing, more say, fraud to found, another I X couple sign and would the Tier and we've able found, that's that the Tier Xs Owen. seeing of fewer AML things, why and Tier able

AFC easiest flywheel around In medium their payments that moving real-time a show banks us the focused that for growth sure is in real-time we're have been big that One And particular ROI to fraud. have payments. that's SMBs. the making and we've And small 'XX. larger into in definitely world-class is on banks, the area kind the on to of continuing case, to really on

like finding very fraud, check ACH payments wire benefit ROI. clear payment fraud, fraud we're all the of a So huge fraud, is and

we AML solve, the is signed focused the of large harder large but Xs, on And I Tier Xs think problem have X actually we really Tier as actually go X what large show these is AML. fraud to a of soon is we also finding into already solve AML. benefit our we talk banks, as They're as on the we're fraud. them to problem,

definitely the you've that have. in already that's signed. we with expand banks land opportunities So expansion the see and And opportunity we 'XX

last U.K. capabilities The more And so our a in in we our meeting pooling so now really are that fraud laws thing say supporting really much to And making that fact, sharing, that to and provide effective -- data make and and the look banks U.K. Brendan then is their can that will solution also understand particularly the changing it for allow the I focused our at with is this problem there. is week are payments in more we it in would

So that's we leg through our next of 'XX 'XX. go into growth as

And of question show comes next our Cho I JPMorgan. from the line from Michael

color you And growth be Calypso about was maybe the and targets? your helpful. long-term between kind your cycle hoping this somewhat on of any touch here. there. just My bit then medium-term the year the provide But of in for wanted to Axiom question, discussed clearly any a ARR I would mean, sales context lengthy can talked you given little just talk revenue expectations We Adenza could about I growth Adenza there. consoling as you've I ambitions mid-teens, also and

on ARR growth we to the Sure. an and dynamics I did of supporting of that continue just kind would perspective, Yes. mid-teens we provide that. see say ARR just business view growth,

for to medium-term mid-teens would And outlook so support continue expect that will that, Adenza growth. that we

know, it's as of timing renewals there cloud. not or timing we whether growth is bookings, or think I impacted on-prem and of that by revenue

there you unpack into more Day and actually do Investor going ARR you change turn help dynamics be quarterly would how to at shift revenue, to we're So in that revenue understand recognizing how revenues. do

at The to deals, the definitely revenue the the is And growth is we understand ARR in do terms the And the we half you become upfront more contract. signing. recognize dynamics how of on-prem license in sign how want in to the time, you at upon we more work. Calypso the contracts evaluate cloud, fees But whereas that view general over or the fundamental thing the the of ratable Axiom. and Adenza life look progress work same of

the But drivers. So lot demand there's to about we unpack there. feel great a overall

good The But from also that, we think on we're impact and of little timing revenue with in and in other Axiom one revenue so be of again, that Axiom Calypso, given renewals a timing thing hit to recognition. based both seeing can about different feel renewal about have the year. to demand Calypso when for strong cycles a an another is whereas just very really cycles might

strong consistent through go So that's again, and it. foundation with is remains we'll what would definitely, I say we very the expected.

our show from Fannon question line Jefferies. next comes the I of Dan from And

pricing expand hoping incorporate Was in revenue terms that how and/or little and bit dense upon of to about ARR growth for to prospectively. growth contributed the what pricing that in think you and a business maybe XXXX

Yes.

And upsold new clients, bookings. other XXX clients, half of XXXX. almost I upsells, not growth, basically specific mean, pricing when combination clients comes we we're a number. attribute particular ARR And the increases XXX pass a think over on lot in that growth of to general year. actually. actually, But get the about and we very going then dynamic, XXX, But upsold we So that I from to and at ARR the look we [indiscernible]

both. year. that We through would of of path. products is, a as it way works value that don't we of add the combination obviously, And I lot But terms is go say break a the just in the across we that out it

an an both to But and also show value increase that also increases part are of providing we're larger them -- cycles annualized are across their are the increasing, with into business this warrants consistent. definitely dynamic renewal that and/or that increase. their assets as And they're those we stated, we what therefore, of contractually is so and go but a using corresponds

that dynamics this some full a think a of Understood. listings of in we XXXX? about think, roll-off new how the as I with based just the from prior here of fourth think half follow-up, listings, as mentioned revenue in And then fees year, for hopeful on, the recovery and/or first revenue the plus factors you about year in should were the quarter, years initial the

the upsells, XXX very way, be in to selss the just out X we just Yes, precise, sure. make in including want cross had get sure just Adenza Well, -- XXXX. facts to there. I we by

depending of as within base in is terms listings point It out, listings. initial of important And really strong the following all revenues. been fees means on when the the year amortized in recognize initial to of those it of we listings in a a But dynamics, the XXXX, lift gives and don't like size environment It that in listings X listing you It an benefits. know, the has of as we are kind had a year. definitely years challenging the fees dynamic we you listing. the years, listing over more X us because amortization have XXXX

for more that it challenging we But through. then years, have it Xto time takes filter to means when that also

reduction net kind in roll impact of as these as higher have we of we XXXX. don't you've a years initial will and have, -- of the from so And listing residual we listings XXXX lower kind off XXXX years in and noticed, have the in fees

challenging expect for that be would listings. a we XXXX So will year

Within expect that and the we that listing mid-single-digit a in data listings even and that that business, would XXXX. can it's grower, anticipate we we low basically would though, we revenue to with muted still are saying more the achieve

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

cycles. question mean I maybe first on sales

X% means noted should for speak Can of terms solutions. owner You early for sales cycles your asset we some bit growth, a and means and in signs and that give that and of early examples? from gradually IR growth about quarter those provide in signs here? around what you timing terms organic normalization potentially organic being you about type the at and other saw of sales the the could fourth more And Or any revenue that Workflow improving the commentary cycles? in improvement you what level think floor Insights near just of

Sure.

So solutions are of SaaS solutions. the Workflow within Insights and all

the the So determines year how you really lot a year. about end following

muted, they but improved we fourth challenging more across backdrop. . more year. as a investing not in also were just The That definitely market in a And so corporates IR listing was saw more quarter. the last environment on focused challenging environment with

a fourth of to environment and our solutions And for the I of we against normalized in backdrop but IR was signings a so corporate did overall. quarter, a for say, more, have harder clients the it would more conversations year start

up actual flow take will because of it in build see So improved revenues show obviously that, time for will to it to continue the SaaS and through environment we kind have actually that and to on itself.

I analytics, But from interesting. With a what's actually, will XXXX 'XX environment. to expect continue the weaker sales would that kind with have even of more overhang some normalized environment

the to owner an But uptick solutions did an strong and fourth quite overall serve fourth and a buy solutions, we specific that think really others, our pensions in software demand the the at data year. that asset signing quarter, but And is overall growth demand analytics very X%. actually offer have have was buy side. the reflects quarter endowments that, in and in capability side and that was analytics Our we it the across that I our difficult this for

some headwind with I we again, can a will start the to hope think we that, that show year. go as the So XXXX create pickup go through as we through

And Understood. on follow-up a Adenza. maybe

how margins strong mentioned trying the of the respect seeing might uptake cloud remind as term, of these timeframe directionally. and run years? level what the a And you're given not the to Day, guess happen adoption migration to given EBITDA is mean cloud I the will with that I'm us least long cloud renewals, contracts there few you length over to can the quickly but next that You front at cloud just uptake. Investor rough in the over on

overall on of about provide Sarah, revenue. But That's least we say at will think if Day. color it's at that it, would more Investor -- like I I think, XX% we

new cloud of is and XX% XX% revenue ACV bookings. currently of

then And XX%? ARR, it's in

XX%.

Yes, XX% is ARR of cloud.

lot a runway have we of here. So

clients, Calypso it new renew they're new for as modules, that on moving functionality, flexible be putting new just for new that just cloud. recognizing we they're modules, So the how a them That's client at cloud them we is. that platform but adding have sign can cloud. doesn't module new and signing to a into we sign in Like functionality we as deliver the can clients,

how whole cloud with clients on have But we that They don't going capabilities they cloud. platform as and work different timelines implementation that the renewals bringing that of want also to in. to for on kind redo changes, have to means they're

cloud, huge quite that Some towards marching and very a cloud. into banks are have for it. like are they move fast catalyst obviously marching actually us. banks can But top-down slowly And to other mandates to be

flexible. we So be to want

as from multiyear this very growing. will train. it said, XX% be, slow-moving expect a of to have going I We a ARR, growing transition and much say, we to But be

with nice be us service the terms In managed and economics, also us us. a revenue opportunity provider, more of it very for and opportunity which it both them to true an is gives both a for margin provide

that's for So again, train. opportunity slow-moving an uplift, but a

we So that on want you sure at to that make Day. little Investor color we'll give more

And I show question line comes Allen of next Chris . Citi. from our from the

of much there new you increase, help I contract contract new with terms any clients, helpful. increase? for a think wondering Any at Maybe perspective. wins XX% client are this would And would us translate relationships a we that you value quarter was if be XX% talking you could the had in client from when Adenza. how from about just about color expand existing a color

actually specific that. don't provide client value per anything contract or like we Well,

think If into Xs we take it's to ASC, I expand. want would always you as and Xs Tier it's we transparency and move And think actually, provide up mind, more But land how and Tier about that I and don't we'll one expand. say land back this, there. and

even, or have some So And figures client time. then to as can mid- cases, or expand, for, we we in over X can double high amount Xx we and a say, might land. X let's figures sign low to we go or triple

we first signed But the examples were think do time. we've not contracts quarter back our deal the expanded when providing of new we clients have that on contract new the gave some examples results, we values on what of I we're like and specifics And now. right some how over for third

question next of line Moley from our comes from Patrick Piper the And Sandler.

in retention the full looked the Adenza. the net bit announced -- and I you lower -- for a deal year, those impact of initially include after you like even basis It they X came had that little just you the ratios than when on both the bankruptcies. expecting were what gross for

targeted I more ratios be then there? what underperformance retention just provide you you color color on retention your or going could And would on think was the any So ratios some led maybe hoping forward? that to what

Yes.

I net that sort the us mentioned, declines and really think I of that in we So really lot come think see did the did -- in retention and some latter new of the in from impacting part first And of quarter. it year. that gross we the did a bankruptcy

banking that during of And that in some well encapsulation it's as the kind lot challenge I would call, there of then we There the was at -- of more had that retention. nothing way occurred that say concern. was of was was what system acquisitions we the nothing of say But of terms events the as in levels the -- a a events did I systemic occurred. not just the specific I would couple year, areas some very about of was the, looking XXXX that the It saw more create the both trend would across whatsoever. in any of of retention a

very, nothing are very want these don't I again, and specific trend-wise. you anything But that? Sarah, add to if But to know,

gross at you retention The basis bankruptcy. Yes. that on was XX% exclude actually flat a if

when it like feel So at we trend, it's that in Yes. look long-term solid. of terms we very

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

Adenza that allocating to wanted And of on still reinstate paused to in deal you're buybacks? paydown ask well allocation, thinking as you you thought that buybacks? Is you're just about pause How now heard you pace has the place? as how mention about would the on I debt what capital that I closed. thinking capital I lead buybacks.

to Mike, is nice This Sarah. continue.

the have what that So is is have we maintained. outlined we strategy

to have a repurchase capital deal reiterate the view to balanced how we So the of share and the allocation across with dividend, the just deleveraing.

in I pause going maintained first as pause, mentioned, and the quarter. that to the seen be is You've

short-term and as deleverage to strategy to continue a that of us hasn't It's is changed. but part for overall -- important very that tactical a

dividend, and So progress to there. be committed you've we continue seen progressive to the the

it's over offset as repurchase. share time, dilution continue to well important with As to

we'll also to course, topic at that's a So back that this And is come the context. Day. of Investor

X.Xx we're One Sarah as mentioned, yes, leaving pleased with thing we're at just XXXX, leverage. is that,

deal. So had that's we ahead the what anticipated closing of at the of

started focus, made very And that's as the of be on solid kind But as we're will over term so to pay of both deleveraging. getting XXXX of well on actually we some very the the as plan strength approach also, decisions though, kind into down that to business the time. balanced a tactical kind specific of loan with launch

follow-up on And a I'm sorry. the just outlook, expense Great.

elaborate outlook, end the on? elaborate was expense you higher on Just expenses this in towards versus just what of forma range drive I year the on pieces the 'XX, pro for might end lower hoping able any could you you would the moving to growth X% the in be and

Sure. Yes.

that are rate business are really also, driving growth products though, Adenza our automation we at but more in company, into automation time beginning focused our forward, say efficient sure over, would and possible a run that investments also I the on that, bringing the we the all, achievement basis. being deal. been the So on as make synergy making same first of to we've the continuing -- just the on on across making as

would all that reflects really that. be the midpoint higher expenses would above growth. the of drive And What

that and So with that we're can that more growth mid- able might faster how of accelerate I and year. to you our the that's in, grow to And expenses the has of understand continue that being to if there solutions we also business it revenue-related kind we of But higher kind achieve on we we're terms do able long-term so to growth it. revenue. some you come outlook think a range revenue to always give actually seeing more, we're grow calibrate in to of revenue why able can if investments be expense growth, growth our just throughout

business. been like midpoint, discipline, Adenza's a it's in our good also the but But expense investments we at do synergies, combination feel targeted

our comes show I from Securities. Bond question from next And the Rosenblatt of Andrew line

offering, digital the becoming in with us boarded a update active any the plans or in the you more you've familiar Could you're since Nasdaq that institutional lot approvals of new is space. on obvious large players and tailwinds assets strategies custody ETF spot new following exploring

So how seeing was itself now? Nasdaq

Sure. Thanks, Andrew. Yes.

marketplace really So we to investors Bitcoins [indiscernible] and regulated Nasdaq, a really and and points. an opportunity of brought BlackRock it without trend highly give with partner without to actually the proud and as to does a they their are having on ETF big express buy to view go

investors accessibility creates So do more it to have think for at a retail we position Bitcoin.

you I broader think know, as though, to tech asset the the of that digital space, in industry. are provider we terms a

technology We they we've continue exchanges, they're future-proofed. cryptocurrency sure traditional make working with of to clearing surveillance. to as provide that kind to trading, some exchanges, been And both as and want actually, well as

things CSD sure of clients system. move the we their with instance, settlement assets for digital the one one towards that sold make could that they in is So key the of to share, to

traditional terms And and trading, so settlement, a gives our changes. the we of all assets -- technology exchanges in us are chance of with clearing, work to that surveillance, digital crypto and support can

our dicotomy In it. of we have terms specific built solution,

ready to custodians around to exchanges We and are provide the world. that and providers

around we the clients now is [indiscernible] that for So that can a world. offering

ourselves. have conscious We being a custodian launch a custody made choice solution not to a

that, that they're technology that a ETFs several of the view as are And very there to that being as served is instruments and being operating better capital operator feel also are business. well well, we provider a intensive that but other we market it's industry. think our I out there for

from question next of from our line show Goldman Alexander Blostein I Sachs. the And comes

So just a quick follow-up again Adenza. on

last it of CapEx through stack, sounded a like years, pretty of their in Over it. technology improvement bit there's the they a went meaningful probably and couple around

be Nasdaq? for talk implemented do CapEx still forward, part move Are side not that the might you maybe to you expectations that done? as So to your there largely things of XXXX? lifting kind get needs just of they're heavier And they're that on overall think

Sure.

ago. Calypso significant AxiomSL would that their we'll So technology few did and do AxiomSL a take of I say years rewrite a a little separately.

-- and feel how the very they're super So we are one, modular. and very Calypso then flexible kind But positioned. about of actually good they

both Calypso. just of on kind this investment are actually -- more been continuum focused -- have very because in technology. them or they've new of in able And been quickly that, on they've of they modules So bringing iterating much new able to to and

we So about good really foundation. feel tech the

said of And signing. at we time I think that the

based. under very and the modular platform great we looked closed it on kind and and is we've that hood, of it's technology, Now the a deal

on area and we efficient so really to for implementation cloud think it's we can I make really optimize help it that focus clients. that them as how as do their is the possible them the

And expertise so a there. have of lot we

long history a deployed have We solutions. of cloud

where we delivered. we investment that, capital it be as them so can and efficiently that to even significant more And an actually help much But make can invest area do continuing effectively not that's as think that's innovation. so just a not

R&D. have They been investing in

has pleased continual as will something a right been we're a not hallmark but that so that. So continue do business, requirement that, we that's see big innovation. really where a and it see their And to really CapEx We now. of there's

specific our that year, things I have In know across any CapEx there. we I I think mentioned if have of don't the -- terms

don't we No, like particular like have any transfer.

we have a Investor give we'll We're of returns on investments or of the and the of and are in business. acceleration that a a You're very investments. cash-on-cash it the back and invest you gives to in not much particular us of continuing like like and addition going to view to, the our of course, what in of to lot color Day type breakdowns type at as the see something note. And business, come foundational

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

just Most but couple on a more. asked, the have been One, Verafin.

mentioned, of missed said I of heard regulatory XX%. you I Sarah, think, then correctly, part quarter in about Verafin legacy segment you tax growth XX% did the And the something of surveillance against if I I year-over-year -- the that.

at at business see as going just that And forward, look there and as type of Verafin the I at clarify core [indiscernible]? you legacy a was with Verafin do So you then -- business. of surveillance sort still you XX% some to do offset wanted that XX%-ish

So what end surveillance, is XX% together indeed up for growth I And Verafin. said at that with the you XX%. the is

in timing that of So an quarter. X% surveillance. due has That been for bookings that's or impact a a the for year-on-year to fourth on XXXX the is

really it's the So just year period. timing prior in

For surveillance.

For surveillance.

you of of think, to Brian, have FDA. XX% XX% I the across an a as know, yes, kind kind Brian, we expectation

a tech, that move we integrated with the and all that we Surveillance XX% incorporate Verafin Market reg look told. and of products. to along AxiomSL, it's with fintech, across a -- to be as Now Tech And and to kind will we're I going always view. I at And Adenza XX% think providing

Great. guidance. then just leverage, operating last X Great. Right. And expense your given on X

Adenza XX revenue dynamics X But Just, leverage, the of ARR it points or percentage Adenza how guide. revenue at I below confidence that? guess, versus a really, operating level the like looks you on X good of the it's more your do think to influencing Solutions

I here Or as guess punchline you managing the for look against revenue? ARR a is, operating the that operating guide you leverage reported question would dynamic? are still better leverage at

view our we better are invest basis, is we the the we on give operating orbiting So what of ARR which leverage margin we to always focus on to doing. economic having details on a as focus basis, continue on the but really and GAAP you will

our closing to would and now Q&A Chair for Friedman, Adena like CEO, to conference back the session today. concludes That remarks. I for turn

at focused the that new drive unlocking enter on opportunities as you. business year remain Thank we Great. And we Nasdaq, future. the another exciting will into activating and

all want if scheduled X, either in didn't have see and we March joining for everyone, or look a I remember virtually, us, to with close, and Day Investor hope there, sharing we on vision I already, have to day. to our great Before Thank XXXX our person remind that Tuesday, we you and you. you forward you

This concludes today's call. conference you. Thank