Intercontinental Exchange (ICE) 3 Aug 232023 Q2 Earnings call transcript

Hello, and welcome to today's ICE Second Quarter 2023 Earnings Conference Call and Webcast. My name is Bailey, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

I would now like to pass the conference over to our host, Katia Gonzalez, Manager of Investor Relations. ahead. go please Katia,

be second in earnings the the be call items ICE's can ice.com. and be will will our and found Investors archived for quarter morning. replay. release XXXX presentation These available Good section of

statements. may judgment we current undertake statements call subject are to to Today's and These represent uncertainties. obligation update, which forward-looking contain our and no risks, assumptions

refer to to risks the differ of XXXX other For the that forward-looking could statements, our and in a second please from materially SEC. XX-K, results our those Form XX-Q quarter described description cause Form with filings

In registration issued of Form statement transaction addition, registration transaction. to announced on with is this a for with the Form the year. common also the that ICE. ICE in ICE we ICE S-X prospectus year, The The regulatory regarding to information pending additional close has and stock filing includes of constitutes to In filed a of the approval connection agreed Please as SEC connection we transaction, with in Black shares Knight the statement still expect statement proposed Knight. see a S-X half acquire be register has second Black to last transaction. the of proxy the

we operations core and business In measures. We certain our cash more supplement, to our believe earnings are non-GAAP performance. refer of our non-GAAP reflective measures

the basis. to Throughout the used explanatory adjusted on earnings growth for to definition this details earnings to regarding certain and You'll the find are second presentation, revenue per Please unless earnings constant expenses revenue When a references transaction-based of currency revenue the notes items. earnings share. indicated, reconciliation supplement of of the adjusted materials. to additional page on diluted in the this see otherwise a terms net call, GAAP on equivalent net refers refers

Martin, President call Officer; on Jackson, of Sprecher, Lynn today Chair Financial NYSE. Chief are Ben CEO; President; Warren us Gardiner, and Jeff the With and

I'll to Warren. call over the now turn

Thanks, joining thank everyone, you Katia. morning, for Good and us today.

some highlights of results. begin Slide I'll the with our second quarter from X key on

$X.XX, company's by Second marked net XX% top it our the totaled of share quarter adjusted history revenues in earnings adjusted X% billion. EPS per on second and $X.X quarter total on This was of second year-over-year, of growth the quarter up best driven XXXX.

and footprint in expenses handful well of increase XX% adjusted was uptick and the we by an our on consolidate end million, top offset up X% both quarter in write-offs of estate real in as year. an lower Second versus prior second XXXX. below quarter capitalized as This late of low adjusted to fees. XX% were operating the billion, drive to related adjusted D&A operating of of second the totaled the labor spend was margin guidance strong higher operating income which and an as performance higher our in and to helped growth lease by increase $X.X professional a which million range, IPO quarter, $XXX SG&A, X% rent, Higher $X including driven in activity of

of million Looking technology and quarter, additional to third as the to in be million as expense, $XXX adjusted to expect well the by FX. compensation increase range $XXX the roughly we driven year-over-year expenses $XX operating with million of

billion, expect range. our between and be As billion of operating guidance expenses towards a $X.XX now will end adjusted the result, full-year lower we the $X.XX and

balances. our build non-operating consideration line, balances million for as quarter, expense those Moving acquisition higher we adjusted Knight, in sequentially below rates the as well the on Black higher of to due as $XX improving interest cash totaled cash

rate. tax the to Shifting

XX%. second of tax tax rate a make rate quarter confirmed elections, which led in certain effective As this of became we April primarily the U.S. to to increase year, our adjusted UK in tax the ability

to As both end full-year. our the we around half second XX% range guidance a and low for now be to result, expect XX% of the

X, provide to of Now where performance the I'll Slide an let's segment. of overview turn our Exchange

Second Transaction in revenues. $XXX of environmental $X.X X% driven were as growth This quarter XX%, XX% driven gas TTF in up revenues, for included a energy record up growth well and net by revenues global by billion, million X% revenues. strong revenues XX% our year-over-year. both totaled performance natural quarter participation, as in volumes growth

Brent, addition, Murban, robust WTI, as of ADV XX% year-over-year July, our year-over-year. the of global in and particularly Midland the crude oil trends we see across oil continue with up Dubai, open quarter, to end In XX% business, our up interest WTI, second and benchmarks,

business, open Importantly, XX% drive in and of by of which growth increased was this again complex, global including global revenues double-digit in X% by Listings in Recurring our in growth and services, including by consuming year-over-year, customers options futures to commodity muted. once growth X% is where growth data activity much our the energy markets offset exchange half the Ags. was capital environmental driven relatively global strong helping data. interest through across our This number trends XX% was partially and first energy

towards markets the quarter the acting the second the XX% with for end However, IPO in NYSE total started to raised the open as quarter. the capital of up of backdrop

combined billion. companies total so roughly lead market operating continues a far a NYSE the of industry this addition, to year, of representing from the transferring $XXX cap exchanges XX In other with

Turning and Slide I'll to now Data our discuss Services X, Income segment. Fixed

versus XX%, bonds, quarter ICE revenues year-ago. including up X% in growth XX% Second totaled increased $XXX our in CDS Transaction business. Clearing XX% revenues growth by and a million,

strong X%, offerings. and desktop and ASV of Excluding feeds by driven recurring analytics, the impact the both Euronext our migration, by growth across revenues grew

XX% well users over end demand within environmental the across ICE at a offering years the robust reduce a ICE XXX,XXX these Chat energy a enhancements, Within workflow, driven as growth And continued increase friction our we in of we of of to XX% to nearly has and the through Chat. five year, at this volume including from result ICE in and of made as strong a growth focused model have XQ. see the nearly been through CAGR energy last the to large Chat the grown our executed we refinement customers, first have half with number platform. continue of language Desktops, development investments This as has by the seen proprietary

X%, within half double-digit our incumbents. of in of Euronext. impact is consolidated and second to of both feeds a the the key by multi-asset increased by displacement made larger Lastly, continues other number Services which excluding our business, and of have growth business, in our collective elevate and investments a enhance by we This and Network quarter driver Data wins dividends, X% the first and driven offering evidenced performance to pay revenue class quarter

quarters, Fixed Income End we similar an cycle our to within our last experienced the business, Analytics Day In few extended of Pricing business. sales Data and

record Somewhat by offsetting management XQ. driven growth assets was to Index a business, ETF return to growth billion of in in of the under year-over-year end as $XXX our

Technology Let's go next to Slide our X, segment. where discuss I Mortgage will

revenues, Second XX% helped revenues account $XXX $XXX revenues of million. nearly segment XX% an volumes. nearly outperformance that in Recurring quarter Technology for experienced which Mortgage industry versus decline and to origination totaled totaled drive million

customers up was higher analytics those for and at growth nearly of Encompass and quarter minimums, so renewal grew the offset two-thirds recurring data by year-over-year, While customers double digits our did revenue during more which ancillary electing such products focused. spend are tend and to at utilized levels solutions, by be as lower well marketing our to that renew as as on refi CRM reduced

Mortgage vast customers majority on the ICE renewals. only signed but of these Encompass the also not have remain Importantly, platform, and contract Technology multi-year

compared volumes pressures forward-looking stabilizing to While and growth nearly year-over-year macro appear mid-teen likely application our the drive a to decline a by full-year. a evidenced on the cyclical July XX% in and to range now be applications in appears low for XX% in recurring pressure current single-digit are into revenue decline nearly quarter, the be moderating, conditions to first XQ decline

to attract that reexamine these cyclical Mortgage have cost utilized Technology not conditions legacy the and continues structures However, ICE to customers same the traditionally platform. need

an bank as retail customer for an correspondent system in-house has five their with of their as Encompass quarter now their As also for to the example, replace Encompass that solution on record signed elected last channel the channel. top

our analytics our largest addition, of suite Analyzer CrossCountry lender top Mortgage, to user, in and adoption year. one a history, and following our JPMorgan's and was the last signed utilize analyzers on of In data deals XX Encompass what

will time a into it's to revenues, wins implement example expect the recurring there clear momentum of XXXX. therefore XXXX year our these impact and and need While this take to for are continued to increasing through not And balance of we expected the be efficiencies. workflow

summary, income, per earnings to and it revenue, delivered free flow growth. X. first operating In Slide was We half. record cash Moving share a

create positioned evolving value And to across our business and needs to our profitable our customers of and make are investments continue we shareholders. growth the meet well We strategic for opportunities. future

for it I'll happy Q&A, over to questions be your hand during take but I'll Ben. to now,

supplies. turn morning. and Amidst you with a leading customers Warren, and XX% including and the given to transparent of quarter to you, Thank Please daily weather the half mission-critical up El our environment their continue conditions commodities patterns macro to this energy quarter accessible of markets, average all Slide volumes a in data our the second respond and risk. Nino joining and the thank increased agricultural X% first impact technology, customers when on growth as markets X. half our to commodity manage the on in our growth witnessed and XXXX, compared XX% XX% for were first its in in we've XXXX, portfolio dynamic changing rely us in Across the

close double gas decade we sources, ago. content over are growth is strong our and natural understanding growth management towards their of an risk on energy, This energy five over contributed up natural past in average of the period, evolving globalization energy needs we offer gas that performance X% to In annual energy over grown average energy across and environmentals, the cleaner cleaner direct the and investing revenues result platform network. the rate And began over have our customers, that a years. XX% in evolution a including of has and breadth global expanding to that our staying today, the make our of of trends digits energy that

this undergone in our volumes market dynamic, evolution Midland oil and new the the world, with addition reached open Midland ICE's interest Midland the benchmark, for the into largest Reflecting manage. basket, Brent the record futures a during the creating ICE of a to oil with markets, series In its crude quarter, market options has WTI July. latest oil along exposure WTI records Brent of in

in XX% benchmark that commercial is the and to crude second correlation demand more first to as line, illustrated provide, continued their and are other the we a given trend addition, such by more precise our and In best in hedging XX% our in tools products quarter. growth customers Brent. up additional, refined continue the up contracts half unique to position This of

In TTF gas our by XX% including half, XX% driven in our second natural up the gas markets, benchmark, first growth were quarter. in record-setting in quarter a the revenues

addition, increase and a trends July, through a In our open gas TTF XX% interest our increase complex American our global complex XX% in gas including year-over-year, remained business. in strong up XX% North in

participants, longer markets. remain continued built to to In continue illustrated and up because North both these carbon growth global spans Europe reduce platform to volatility market our committed across are near-term term, have Asia, year-over-year. as Importantly, the in we across active a the to over positioned we growth out trends the is participants policy market America, X% by benefit corporates environmental long-term This we secular occurring and emissions. environmental from markets, look that and benchmarks well

they Importantly, our because carbon journey about excited to to for the we of the cleaner navigate cycle, and one serve position broadest suite the the of products pricing as in across carbon we as remain offer demand grows. transparent customers energy environmental

futures Some recent with futures is carbon on the Alberta's go which program, customer-led in State's launch along launched carbon include program, on innovation expected the examples quarter. to third of Washington of soon-to-be live

transparency evolution navigate evolution. and In our power markets, global to the gas global this and that to provide alongside our summary, and continues to as risk the oil, enable participants critical management introduce energy will markets tools volatility markets energy environmental new price uncertainties complexities,

to Data Moving and our Income Services business. Fixed

Our underpinned business of comprehensive growth, growth growth, our compounding macroeconomic all-weather X% recurring revenue the transaction platform our both deliver revenue in through strategic generate was the of testament up and to continues environments. This a growth and ability array first by diversification to an to half.

connectivity half in institutional as volatility increase rate to platform our to a well Interest year. bonds contributed as continued build efforts across versus in business last ICE the XX% our first

X% and growth data analytics, our we offerings. investments across and is see addition, in on by business, In strong up to which other continue the first past network driven feeds made desktop our returns services in half

a analog technology of their business. of intentionally once Part business. of result during In to outperformance that the and to digital that mission-critical customers conversion to analytics This origination strategy accelerate again volumes. in our strategy Encompass our the industry. quarter, nearly revenue, technology business leveraging and experienced is And business in second happening to the our XX% shifting XX% came for up the Mortgage more our continued industry particularly executing over and quarter, within recurring now outperformed a expertise origination data that increased the second decline Mortgage Turning subscriptions. a against renewal, of our base is broader data

transaction uplift trade-off a returns. when subscriptions, in Importantly, loan where market customers in is an which per-close higher the the fee, provide will volumes decline

greater have with conversations to continue workflow constructive seek efficiencies. we addition, customers they as In

their the system of signing their the offering. for correspondent of as relationship implement for an retail to customer on five analyzer one CrossCountry our of has example, in the as last had data elected channel. and For the that deals the with quarter Mortgage their analytics banks Encompass with And Encompass record channel top history to signing quarter, expanded us, our we largest implement during

early billion is increased the mortgage will business gives only that an variety believe origination of is through through conversion. the continued of we in market continue secular a we of trend us can today digital a fraction Importantly, analog a days to that This grow workflow that confidence environments. efficiency is a $XX trend addressable electronification

illustrated Our is ability Slide XX on to appendix. this secular of trend capture the

a the While in Encompass increased on with pro XX% half seen volumes at the revenues rate. not recurring comparable the half of origination growth annual platform IMT first those if compounded revenues in XXXX, growing slightly were first over forma below XX% have

over Jeff. call With that, the I'll now to turn

Slide everyone. on and you, Thank I'll acquisition XX. Ben, by Knight. Thank Black good to for begin us. joining touching you pending morning, of Please turn our

with While to call of relating to unable questions to this announcement Optimal Blue. Federal Commission, we our Trade the litigation discuss are pending on answer any I'll briefly divest the

of Constellation XX, close $XXX that into acquire contingent on On agreement the we our entered whereby Knight, for of consideration committed transaction of a and finance close. we market consideration $XXX million months the will of million. in the an July announced Optimal of to the includes six note, million Software cash acquisition $XXX which total upfront within we Blue seller form Black have place into This following

it's performance additional but five. of upon Black and million by the synergies expense provide to intend details million we We closing of continue noting that revenue $XXX $XXX worth target year to of Knight, synergies

about dialogue commercial and origination our Software loan to sell A Empower The rescheduled our expand FTC the As together Optimal continue Blue made network. owner. our on are agreeing of a and the with our Optimal will August Blue ICE's Blue, trial being And XX. keep agreement open to fully single, result Optimal was to a in a to federal Constellation with potential we system transaction customers relationship available highly resolution. related under credible will facilitate

distributor as via to As stakeholders of network, well the entities remain value consumer that across combined our the the ICE about mortgage Blue and ecosystem. we efficiencies very largest the to bring as excited Black the and will end other Knight Optimal

half Slide adjusted we first second company's to a We've per XX. of the mix grew of operating best the turn company upside and the please strategy. in history. subscription that quarter, results, strong the earnings best half transaction ICE's exposure These compounding hedging strategy while results investors we revenues. share, grew deliberately adjusted downside the quarter We on our more giving to revenues, have second delivering on grew Shifting In and reflect the our our of and to and first execution positioned record-setting quality importantly, risk. income,

We've is on these or conversion. placed of growth. intentionally generates undergoing geographies macroeconomic growth not largest an digital asset some combination that analog cyclical the tied trend markets the We environment. ICE to any factors at what believe and of we name across all-weather an of We've classes the that top diversified center so that company makes one are the of to

are on Looking occurring year and capitalize remain us, on cyclical we and of are to many the track beyond, asset the we on second the across positioned executing secular opportunities of that classes. And of trends half front the to focused extending our growth. growth in record

for first this continued to to our their their our and our And for Before thank unsurpassed I prepared record an like their remarks, like making trust. for business I'd at my half company. my for to second end contribution quarter, I'd colleagues thank ICE result customers

With conduct Time. until X:XX back to our a call the Eastern question-and-answer we'll that, turn And now moderator, I'll Bailey. session

[Operator line question Thank go from Fannon Instructions] from ahead, Please Dan. Dan Jefferies. of the comes you. Our first today

Your now line is open.

My Good mortgage first morning. side. Thanks. the question on is

So gone curious have renewal Encompass customers as to what percentage through of the process.

some updates forward full are about and the looking You've then renewal process. curious that where But of is been bottomed on terms on kind doing. outlook that of we've there an activity. kind side, people And have what in you mortgage of given the in broadly

Looking to but remainder still implies about second some we're this here anticipating the to recover? in pressures volumes that for macro going you backdrop, as overall the you half your are at year, of to think start have the guidance

Hi, this Dan, questions. great Thank Ben. And is you.

this talking ago. a are Mae couple in years five first four In are duration. Ellie that ago. a have process percentage agreements business now of for so terms three on of years, around part customers started the and your Most just customers had couple we years about what to this We've question of of of the really years renewed, started of the we

roughly through halfway transition. So we're that

we've that we our trade-off at great business on so as long-term XX% The longer subscription of are how that is higher success customers how Mortgage we've covers, feel we've that. of from term the a on growth lot about or really each than perspective, fees, we've And renewing those. of is several evidence towards last unlock these underneath And fee see over been less many seen getting there that been of or XX% a ICE the higher had mentioned company when talking renewing do that doing more the effect we're loan we've is repositioning quarters, the of terms lower calls, subscriptions. that we to Technology to that a at per-close even In the potential. success

So transaction be our tailwind when the market normalizes, will towards that a revenues.

The to second thing out is some been quarter the of relatively see have in continued going second it's from business, we M&A although consolidation small. headwinds and

I more prepared refi some that seen that remarks ancillary half targeted that not up are our are in are think opportunities towards there thing very that marketing-oriented are that the the platforms products line with lenders CRM roll Encompass we've our and first helping some that of into our other in were that were item origination clients. identify

continues the the feel that's year, about significant headwinds pretty some They're duration. one be we to half Those seeing the obviously, saw coming good to year very signs environment the And in it with small be environment when normalizes, user-based. tough, And market that, area revenue. first where already where subscription rate is. tend But of turning. contracts is we're some that this refi back. an that And we towards

on great back we the was the QX, offsets, terms best mentioned continue in was success of ever. sales of we of which strong. this have QX In quarter to our year second

Second last six second in quarter years. was our the quarter best

platform. onto XX clients the Encompass have We come new

those a recognizing large come clients clients come are away are those midsized clients. There's such that of also we of as large mentioned with We of right start that on, five global revenue clients that percentage had many in bank top them Now right D&A the significant subscription on on as space. as the that Mortgage the win well those clients CrossCountry away.

kinds those platform getting those as on network per-close revenue the subscription onto interacted impact those well that that to open we of transaction will on implemented, then never to And time we've our all services is with loans loan our get XXXX. are that think start off about and once These those that system clients have our there's new And start take of fees consume and we'll fees third-party way to from as loans interact from come clients additional as before coming implement. are well. to an they and

feel So great from the a long-term we positioning. about perspective,

Benjamin, Thank please you. The from line the go of comes Benjamin next ahead. today Barclays. question Budish from

now Your line open. is

so There's wanted up and a there. the products contract segment. much lot sort Hi AIQ the in and some digitization on bit little to the renegotiation follow question around I like Good of Mortgage terms question. ongoing sort of the a of I dialogue for to taking about maybe in kind of morning thanks the cycle. wanted the your of to similar ask of particular. cross-sell existing

curious penetration you Just think you are where the the customer go? current of can far in that how of terms base and

This is Ben. Ben. Thanks,

name way. by the great So

across to the that customers them wins a have spectrum that all that our across of utilizing that cross-sell on ICE that we of bringing that's of you X,XXX So have across when platform. that offerings across and almost Encompass of our all lender with other have we've continue with on – of business platform. And services from getting every success the we one we Technology Mortgage network, of our service. look are have new new our on our great services we segments Encompass perspective, we our we network touch beauty are some that And in this of the the established

think nonbank broker, credit have of bank, union, originator, it's each to across a a those a So a success we segments. continue of whether

brings that that enterprise that been positioned overall wouldn't to been win. with some to We've also able have ICE well the replacing leverage historically, legacy wins to have business we've and And reposition infrastructure banks to bear. the leveraging large

they on we're very ones. with seen. they've that they've focused feel rightfully customers rightsizing platforms on we the been that the So business. about headwinds their have the so that great part the in, that Encompass And seen environment core one focused organizations we of is key run, very of and In the

we So there. to that's continue why see strength great

entrepreneurs to time, chase thinking will it volumes that of the at by want ahead point, armies – turn to Again, automate areas going the as to ICE that's are market want data to we've people. companies processing. they and great in And to and in At to to don't which have want some try hiring we don't rebranded as to is as become and same possible platform. as our efficient continue such turn, have have AIQ, now to innovative why their success and document automation

of talked we on JPMorgan live And in just remarks year. us year. that about some prepared the selected examples significant They've this gone the obviously, last bank the Chase, platform were

So and And back performance. us. that CrossCountry top of Mortgage we're the some selected lender come our on a of see to starting has now into that, XX to

So we into invest going see innovative the companies out there in future. looking and to automation efficiency

Thank you.

Kramm, go Alex. line comes the today ahead, Please UBS. question Alex of next from Our

open. now is line Your

Yes. Hey, good everyone. morning

obviously one a Just you It nicely. on made price came pretty looked trading that the Last some moves quick like through on actually. side. quarter, pricing, energy

that pricing there the more in previously experience data versus here? through gone there, businesses. and around having touch Maybe energy learned lessons side, for market other is I on particular, can any data on the mean, you any wondering that now you just in extend So some the this success see really are you didn't broadly opportunities other areas since and question? pricing of Futures from Exchange you're into you've

great It's question. it's Alex, a Warren. Yes.

oil the in those quarter, energy as we changes made And last of terms of so the pricing we contracts. handful within were a said complex,

moment in to value the brought touch we of energy, it decades, asset the number So over good class last to didn't time, a some everything moment capture of was but within that time decided the we in certainly at frankly.

were it And benefit would front $X.XX, – we I mentioned in few spoke be benefit we you that say a there terms to from the of all to else probably on of about with what was pennies would in if to price you it's so line RPC. so will, $X.XX quarter, the changes, expecting those last about equal.

to philosophy apply across ICE rest look same and going here the futures is that rest we beginning. capture the that the that same it And platform, and our platform and customers opportunity selective approach frankly, we about the of that's has frankly, people when spots. doing see and the about and be and operate, pick the and been value since the we'll created classes the be we've we our the As we for of asset as think to

And same approach. you're as into that think future as year that be so I we well, we'll years next taking move thinking and as about

with see season this strong and it continue. the And Again, business recognition interest into because I think budget so we us ICE year we of, see the of value this as we again, did open have some strong about created on future. think approach very move volumes And success you'll think side. just our into energy I similar it's certainly the take a and we a the across the rest very

what a opportunity I'm from So year hearing more is next of you.

Sorry for the quick follow-up.

year. this changes pricing expect wouldn't I So

and So yes, it be will beyond. next year

Atlantic Equities. Please from go The you. question Clinch the Simon today from Simon. ahead, of next line Thank comes

now Your is line open.

if just taking bit more my for question. could about the was environmental how Thanks Hi. business, products wondering you now. I that's a and talk progressing just right

or And in resume attractive of expect start really prior should pace we so that the last what growth to kind see it's the to going years when take previous to we year. rates to saw

Simon. is Ben. Thanks, This

be business one a thinking we to that the significant a it. As we futures decade the unique us to energy positioning dynamic bumpy. because is able road very great and And our than continue have on That most in complete across areas the to that – to can a place And journey way have this be more is space that. our to fact clients our and that power customers going that of in know, of to investing moving we cleaner all of been have we've that and of continue feel suite of across in positions about you this we're for well going here, a help investment enable to environmentals, do we environment. about gas, world one towards products see just continuing be oil,

of – we itself, the feel the it. performance the On how business good about

You energy both to sector the unfortunate headwinds, obviously, some year, with Europe, the in in were in war environmentals there Ukraine. got and remember, last in in particular,

our watch have data at market to those health continue as a to our interest record. environmental very of within markets trends back markets. as we monitor And Obviously, the energy both is strong. continue subscriptions open We complex, come well which

we to look – at grow environmentals. continue That in continues at to looking our active participants. We're market

So very underneath the strong it's market. covers, a

XX% space of share of traded market and have We what's North the XX% in America. EUA at market

So are to underneath coming really well XX good. such are for the tailwinds Fit little mentioned by XXXX, to economy within XX% the a European in less of be required emissions. basically itself, price European there's that buildings. in to place, covers going And market all another XX% with maritime close the roads, sectors quarter captured the last as is than that natural where some There's as I

European is secular So business. drivers our this growth all towards

later program, we of just mentioned North and trading my to market I remarks, quarter carbon business in we'll new participants. launching recently this grow prepared an launched a continues be Alberta Washington program. American carbon Our in terms

of investment. area So another it's

renewable We've when each blended standards, And in words, putting environmentally and high Another been futures. we're fuels jet sustainable area RIN about ahead demand into so that oil can called ahead basically every is our we've of into contracts fuels. low-carbon up fuels fuel this, what you cars, for actually are And of and for business, year year, but it's thinking of create oriented. unleaded the we've these fuel, sets been the launched been in also other that's have amount really renewable to our clean that that filling vehicles. the our up diesel need be guidelines EPA transportation shows

that on crude highest as one launched continue efficient much today, to ADV roughly and market. as renewable mature, the opaque more futures. very as produced, We reporting To in last sold growth months, in a certain open refined other we fuels interest saw and what those rapidly. but XX we amount this the to in as in our to a meet remarks. very of areas prepared our oftentimes that historically way It's do mandate are get of a of that of well traded and futures mentioned physical of the this under this see market we they a EPA line numbers. futures renewable target, trading via there's grow this the markets trade physical identification production bought, and XX% the These multiple in And XX% market is. And are

our portfolio on environmental We're across focused seeing growth. So it's we're nice the ahead, and space. where area we're looking some another

Thank the you. question next The Please today Kyle. comes of from KBW. Voigt line ahead, from go Kyle

now line Your open. is

morning. Hi. Good

competitive cycle quarter, experienced think in also some you're slower can that as could you that we're is the elongated we better then the see, but environment the also, driven one share environment may cycle whether inflections a if dynamic, you data whether you again elongated including their sales the that in guess from any have regarding head sales or commentary business. similar at getting whether to you're in morning, a they're the mentioned this seeing light macro business growth that that really as other cycle end be tunnel that shifts reported terms that into to there competitors, there entirely seeing Just we clients any of give not just in. And by we're of that competitors XXXX. hearing occurring that enterprise are want noted seeing some you Fits sales hear are including I that I one this

Lynn Hi, for is Martin. Kyle, this question. the Thanks

the data So when elongated you the Services at look seeing and you cycle, Data abate Income we're business, the Fixed definitely it look other services at sales on if line.

stack As associated Warren the investment larger in that business. incumbents with significant of over to prepared that delivery, been amount the mentioned remarks, tech in years his past a we've actually modernizing some of result take as we've share the few the the in made of from able

definitely the you're share So there, we're the seeing abate given sales taking. cycle elongated

of business, some benchmarked we line including We're some that trend cycle. business. good the Warren see AUM of you're seeing Index still as $XXX which, in the it the see said that smaller that share automation. prepared to is billion in and We're analytics line items about On now against item, But growth Day of take the products with overall the the make in remarks, there. business, his to End of up is the Pricing the our of of some go are really continuing in of elongated importantly, and continuing data taking fixed income share side effects we what sales along

just a So let little me that unpack bit.

year demand large remarks, and word the seeing of you're and at other been line just good look including buzz that models. the language industry, big Warren services of our attributed our to our prepared not mentioned but We're the come models. our parts you other to trading data of it's of the development adoption the large that you're in the If language seeing segments, also in around of the revenue implementation proprietary starting his side as in in through And really see line, of that the effects energy and segment. for,

Additionally, language feeds be to we on. a automation, to fixed models things is what that asset different those continue class are trend in income positioned uniquely which capitalize large a around

item other line continues like pricing, continuous of income evaluated of see the products but So relative fixed growth analytics it to and portions outsized business. smaller the side data the to

REITs, in bond side seeing the And the the that as ICE part our outpaced importantly, services our the due bleed muni products spite our institutional of provided muted gains just in in our volatility well the strength execution transparency core into because products. money these of you're and to products as muni because the adoption of markets for see of to the across it industry our but data credit that in which market automation, customers our of also starting that by business, of not share business,

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in seeing we are core Pricing still causing cycle but in sales contrary, share Day business, gains continuing to we're which the On of End our slower the really is see slightly elongated growth. the effects business, the of

of Thank Craig. America. Bank ahead, line The Please question of from from go comes next Siegenthaler Craig the you.

is Your now up. line

Hey, the on business. Fixed is good Income morning everyone. My question

the the over bond rate given many backdrop, reallocations interest are higher large years. So next predicting few

Fixed provide to if inside and see this the verticals through growth Income Data your could trajectories could your the walk perspective Services wanted business on and So you us of impact business. I how reallocation this

again. This Hi. a is question. great Lynn That's

treasuries where market the income treasury is to to So outsized the and Obviously, driven has is business, we yields execution the seen you recently areas for contrary what where money about tends profile products the the of The previous side some the really lead. that mentioned that business lower fixed on the continues talked in attractive on as yield I about capture we execution rate, the a gains think on more as business on couple be of our of have. business. you've index to calls, the that some index our treasury just of

the It's relationship. a revenue continues doesn't not it AUM one-to-one have but grow, growth. So to correlation direct to a

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think this So be a variety to set Data the segment, trends. particular, Income an But again, of positive benefit the Fixed a of name line our on you'll up see we've business a impact why macro all-weather in variety from Services and items. I to is in

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of comes today question go next from The from ahead, Brian. the Brian line Bank. you. Thank Deutsche Bedell Please

is now open. line Your

so much that, little about mentioned how a ICE stimulating volumes future? driving question. makers? Great. Thanks it do are offering such more add if And relatively It you I more already energy, proprietary my year. this offering large far sounds the journey? come there's you on but where talk come Maybe very think bit And customers back language just volume. was think for volumes Chat helpful you you to in new, Chat it lot bringing what's particularly a and would you've the think Maybe to into market taking just models. the as does Is this the with to then it's in this sort of actually in new the mix or like enhanced the could you

Yes. a we a about. That's talking It's This actually again. question. Lynn great is topic love

it models stages in to if trade our I'd of is decade oil, call – had that of across we've starting platforms. Chat say clearinghouses impact across across though now. early ago. trading automation. the I It's seamless classes, the a today time over last, allows idea if existence are knows our and years. our We It it does is models. or about for trade probably detects we're with to and through the started it energy language the knows But talking talking it of large it's refined allow So about the the quite utilities it, contributor If ICE offering asset fact as a for those you idea, to will a across it really trade transmission become it, gas been five a for the some Thursday what markets well. that about Effectively, and

additional you're analytics getting price. confidence to that it Additionally, and good metrics that with it trade to fair a you you will around give value allow some perform

this. stages popularity, particularly really in still of It's improved, why last it's to we're the the as smarter models it's over I the It's gotten honestly. the automate helping think early still as So the those trader Income income couple workflow. the have fixed we're technology has about quite markets Services it's But of but about think automation. for of years if the contributor to in desperately for our energy, are where Fixed excited small the incredibly a but and something fixed requiring not volumes, just you income segment potential rest Data gained

his has – operate, this but all the remarks. think early-stage markets, the concept we mentioned markets across that benefits prepared the as we applicability seeing in the of energy pretty in Warren So much we're

you. Thank

go ahead. next Our Sandler. of Patrick from from Piper Moley the today Please comes question line

now is Your line open.

morning. Thanks Good Yes. for question. taking my

So just wanted I to energy. to back go

earlier, strong growth. interest mentioned you open volumes, you're strong As seeing

strongest comps, was still I some easier your think even you've though the history. it in XQ I think had

we my back on that asked but last us in could energy? now maybe eye out on you're strong just was the your landscape, could give when of I this the anything keeping energy. hoping seeing right derail there call, look you're you half that predecessor maybe Thanks. I an macro And think year outlook So this at for the momentum in there is the

Ben. This Patrick. is Thanks,

you industry. us it's So underlying to on clear got going several that in the trends

continue have that can shocks. legacy cause energy supply underinvestment You to in infrastructure well-publicized

to The take launch adopting energy markets becoming But hold. they of energy innovations electronification. how at global. that more markets we are to the and overall are of the energy and and electronification, got various continue ends spectrum each broadly, are You've of in new the continues mature markets

change, around gas of markets freely is chains terms those world the now are and and natural LNG. continue global, transported supply to in As evolve becoming

all to You they we've very just long a the questionably, be the of consumption our are there's and of trend move also risk big of And management. to our – parallel production business these. last those markets helping benchmark risk product. built want And lens about towards have that a in and with actually would but through customers and to buy no liquid the don't a concerned contracts, to energy. they're trend deep greener around point at have precision trade trade Customers where manage want towards

deep of of around the hundreds set have We world. a them liquid contracts,

We markets, customers' of our different and commodities, you name each it. cleaner diversification lot fuels, whether in business of We have those energy, across environmental our points with needs it's a built gas, that pricing sectors, mind. power, with

for great us. see we the And setup is

continue participation revenue And just gas in adding North to in we've market or share to had. that high daily in the near near We're interest in average and global open oil gas. We've space. an all-time subscribers of You volume such high markets at our or had crude our across market rapidly high active We're complex. to June as TTF market American on environmental share and at across at our products in share market look an records gas multiple We're oil results record energy. continuing the and platform. futures in grow data set terms global

against delivered we've known has The contract into TI oil that grow And well. coming we as complex are And oil that with fact we then we And off, Midland changes benchmark futures grow this great TI about in Midland from that a been our continues complementary products and Midland the some to that ICE trends. had feel world. Midland WTI been are that was going significant seen And contract overall, standpoint have those A of Brent to So happening Brent, introduced options into being contract over our and coming all our of summer, look what's WTI, Brent, the were rapidly. XX the saw HOU, on contract. very contract underlying since cap dated we've continue million it that lot barrels now oil has launched with that now you that the of the that it. to very that. at largest to

prospects about the the of balance and great positioned, we're feel where we of future. for both So into this the year

today Goldman Sachs. Thank you. next Alexander the ahead, from The question Alexander. line go of Blostein comes Please from

open. Your now line is

in filling for morning. This question. taking Alex. Hi. Good is the actually Aditya for Thanks

continued seen in income although from fixed fixed base. execution, small on within question Another execution a We've the income side. progress

And incumbent KPIs Protocol. for in and Can it Thanks. IG adding the compare months? you yield? lastly, What compete high markets that over XX capabilities more launch like going the price protocols your in? and here see the this recent business? electronic next You've Sweeps platforms provide to does are been of do you you with how Where

Thanks This the is Yes. for question. Lynn.

side, So been traditionally, in on execution muni we've really operated market. core our the the – the market's

users, saw think distribution really and last And the out getting Now institutional what's building our muni couple strong of muted had growth even framework activity and but in that spent fact us about to have distribution access share encouraging also been focusing quarter I the building this and to retail is markets attributable our that's volatility, from the though really the continuing framework we to muted quarter. think have you this really wealth. gain on years I

continue the that in been wealth markets able over fact to were gain the the we and than last retail share despite in of have side to business. QX share, quieter the the So gain muni year,

to Now importantly, the the we able efforts profile, were segments, done of which of in the into business. growth development had a integration treasury wealth the more business, which and the because markets, side retail you institutional this efforts coming yield the not side the from just which had results, much attractive and have drove outsized but that institutional the quarter, saw also

to business, this in earlier few bit we've been we last U.S. particular, a to corporate announced technology wealth investment-grade been of noted, made the the When have has the retail And distribution the side investments on week, side sweeps over share of there start to traditional and as the our the side into business. the you upgraded in to the in because technology corporates as business months. the of institutional particularly perform significant we gain the able we of addition

we're have distribution side, on the but of of also Now we months and basis. but couple very market-by-market just technology the it not because that days, doing last the that's on made in early optimistic still the investments platform the over a building

Thank this additional There no at waiting were questions you. time.

So back closing over remarks. go I'd to for the Jeff ahead. call pass Please Sprecher any like to

trust. customers we you this And continue updating And continued look for this in have on thank hope model you generates thank innovate build their We our a joining their business and our Bailey. my you, again great soon to forward the for morning. also thank us I that and I'd I'd first Well, of like to to all-weather for for Thank you to half also growth all like as history. on that, company's with delivering all again And day. business colleagues top best growth.

Thank all for concludes today's call. This conference you participation. your

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