Intercontinental Exchange (ICE) 2 May 242024 Q1 Earnings call transcript

Hello, everyone, and welcome to the ICE's First Quarter 2024 Earnings Conference Call and Webcast. My name is Emily, and I'll be facilitating your call today. [Operator Instructions]

I will now hand over to Katia Gonzalez, Manager of ICE's Investor Relations. Please go ahead.

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

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

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

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

revenue reconciliation refers earnings the on net earnings used adjusted net find GAAP terms expenses to diluted call, to and adjusted of materials. a to per transaction-based earnings When in our share. this You'll refers prevailing revenue

to the otherwise constant page notes unless of presentation, currency this of the for certain items. Please definition indicated, on see basis. a Throughout growth explanatory earnings details additional the references are regarding on second supplement the revenue

and With Chair are and Martin, of Edmonds, Data & NYSE; the today Fixed Gardiner, Services. Ben of Warren President; Income Jeff President call President the Financial Sprecher, Lynn Chris on Jackson, Chief us Officer; CEO;

over Warren. I'll now turn the call to

Thanks, I'll quarter first results. Katia. for begin you a Good today. of morning, our strong everyone, joining on with us and thank summary Slide X

for the year. Black First quarter of forma net revenues $X.X acquisition pro totaled a increased and versus by record Knight, X% last billion.

expense a onetime costs. the driven an our range, compensation adjusted operating by and low million, expenses few planned end of quarter totaled of within at First $XXX benefits acceleration guidance synergies

of balance year. Moving to the the

$XXX investments live. quarter modernization higher the $XXX operating be merit data in the center million recent full increases with D&A in the a sequential part of go quarter expenses a of investments MSP second planned and as range adjusted expect revenue-related driven increase to across organization, We by million, to of and

In than expense to are synergies being $X.XX addition sooner full due year to and guidance billion realized we to expected, our previously $X.XX in part lowering billion.

to of income up quarter This share and pro earnings helped record per a X% strong a forma performance record $X.X first $X.XX. of basis adjusted year-over-year billion, drive on operating

the reduced quarter with cash approximately debt debt quarter totaled by billion. in EBITDA, we've Knight by as $X roughly quarter forma $XXX X.Xx million, first our to down ended a roughly interest Black the enabling of First million Since us in adjusted the first result, flow we free outstanding reduce $XXX quarter. acquisition And September, fourth pro quarter. million from expense leverage $XX first completed

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

driven XX% XX% growth performance business. TTF, strong driven grew oil included increase global XX% another for quarter interest a This XX% in our XX%, revenues up year-over-year. and revenues gas growth which our a in by part net totaled transaction business rate were Record a by billion, year-over-year. record in in million up $XXX of First quarter record increase XX% XX% environmental natural our and revenues record-setting $X.X in revenues, energy complex,

open in growth the and commodities our In energy April, our in end of addition, interest growth global XX% as XX% up including XX% of markets. year-over-year, is

initial IPOs improvement X of last was has gold nearly so that listing in NYSE energy data environmental XXXX, year-to-date, global our noting of the related total Exchange recurring our data welcoming XX% business, off the quarter, of number which strong million market standard new the totaled of to revenue in Listings top raised offset customers qualification than meeting by revenues, $XXX shown quarter. our the of data despite NYSE. growth our exchange not the criteria. lower first the more capturing in fees proceeds to signs of consuming X Shifting with include services revenue listings IPO and and at to market and in rolling worth NYC far XX% XXXX partially It's IPO Similar of the the and

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

quarter First This $XXX by corporate well institutional income within and levels year-over-year. as record Transaction X%. trading, by of offset In by $XXX and lower revenues X% our revenues lower in a is totaled was which revenues recurring by analytics million volumes of million clearing totaled $XXX driven strong data growth business, $XXX as growth grew were Record of CDS driven activity. increased in million. first treasury million by our bond part CD quarter revenues fixed and channel. record

PRD Growth by our business our growth another improving and in driven again double-digit of was business. in index trends quarter once

investment Importantly, exiting improved income through fixed customer fixed analytics first or ASV, annual data of experienced to the X% the subscription from ecosystem. across as range XXXX the and and income value, much we see continue X% reengagement to quarter

of grew by in Services first Network our quarter, digits & gas both oil Data feeds in driven double grew desktop X% year-over-year. strength continued which and solutions, business Other and the our

strong early Importantly, backlog and build-out for of Global both revenue and come to with capacity. following ICE to demand ASV data offering Network our signatures July into related our online additional in center connectivity the of expected solutions remains the

with and second to expect be acceleration recurring income in revenue in second data analytics, first services to year-over-year an by improving network growth across quarter fixed growth driven As trends other half, strong data a our quarter, and in continued the in we overall and year-over-year result, similar growth the businesses.

first our billion that discuss comments forma basis. a the totaled on pro X, Slide the where are my $XXX ICE revenues segment. Mortgage [$XXX Technology $XXX quarter. million Mortgage Technology in Please note Please flip million]. will revenues totaled in results to Recurring I (sic)

on our our customers were within overwhelmingly at noting platform. continued As pressure and revenues, business. renewals origination minimums putting remaining macro we noted and on quarter, current on conditions are impacted thus, by that technology industry It's revenues are both recurring pressure last our renewal, consolidation worth while recurring

when will in Said to yet an provide upon while average minimums price with differently, on upon And increasing dynamic in total renewal. transaction, renewal results, incremental paired is lower are value a contract volumes manifest normalize. industry that market a normal a tailwind higher per our

revenues Transaction million in quarter. first totaled the $XXX

this by loans increased services servicing lower and slightly, within business. closed was fees professional management offset While default lower our revenues

originally line I drive in helped indicated, expense X% relatively top segment has we previously a as an Importantly, a basis, income. have than synergies faster to realized increase coupled stable which, year-over-year with operating when on anticipated,

interest of to dramatic months down Looking Technology in to materially XXXX. with the full now total or low industry in shift rate more for the XXXX relative revenue growth high end the Mortgage single-digit the we until half. year lower improvement to factoring in the be mid- origination in first range conservative range expect in is from just flat revenues high the X flat-to-modest anticipates The of end levels a a improve business volumes second range decline our expectations underpinned after range, relative in unlikely quarter ago, to and to the the single-digit by to to the

we product Despite continue macro development enhancement. pressures, in and invest to these

to targets, our network and market on normalize. when all existing realize platform conditions continue we position accelerating synergy expand our We of our growth executing which further to are

invest into both across needs the growth. customers position the our our compounding our we once flow cash We operating we share deliver revenue, to again to income, of and delivered summary, to free earnings strong business In continue and business another to delivered year. per to very adjusted future. strong And the consistent stockholders and our to meet for continue growth start

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

you, X. us morning. Please Warren, you for all Thank this thank and to turn Slide joining

including from rely energy X.X leading technology, record average energy growing million remains and across drove that while XX% double Options digits year. average commodities, on oil, mission-critical increased This volumes revenues, markets Our options. time records options customers tripling quarter, across risk. to to benefit nearly April, total And over gas and transparent same and and in in energy first uncertainty our managing data open record performance of the total frame. accessible since global daily continue strong respectively, XXXX commodities unfolding futures business, Futures global period and navigate with natural at our last to markets lots a Across trends and through and tail across all-time secular direct versus markets. growth environmental interest XX%, highs, up and our XX% global revenues long the the and A on

any inorganic an recognized the base. commercial importance the of evolving organic we in global, grow to Today, the network is investing truly diversified platform capital management product delivering investments, any energy of solutions, we of tied one better years serves built one that Instead, risk customer to number result growing alongside evolution limited and not a and that have an markets. is network, and energy trading efficiencies on region. A or a positioned needs global to of as of comprehensive single ago, providing continued our

end increasingly oil this global for is major seek on through in not dynamics open become refined alone, evolve products portfolio growing continue precision. of X other the with provide and In to in average dynamic, hedging quarter years. trade records greater the first over interest double crude digits complex, year-over-year products increased also our set -- ADV and but April. XX% liquidity customers our benchmarks, Reflecting the as only markets, global XX% past in This that the while up

global than In collaboration of been precise have ICE created driven customers. years hedging its XX energy has instruments, that building by hundreds we with our the more platform,

IFAD. as liquidity Oil as we participants In price the underpinned benchmark instruments in deep by together of National Futures March of and the a X Futures exchange Company Murban traders All largest XXXX, Abu to or in contract, important This ICE world's partners, of such innovation, formation partnership energy an time, are enabled oil flowing the first these Asia. Abu our the for launched with and to the benchmarks to Dhabi, the for Brent. market contribute founding new new come Dhabi

new a million year-over-year. Murban its XX% in over of volumes, of series first IFAD Similarly, open Platts April. along X increasing the quarter, highs, as In interest our another traded record marked Futures with contracts contract quarter anniversary, surpassing records had third our Dubai reached

oil is new market record is that grade based by Midland representation with accurate record launched XX% crude years Another by another evidenced drove performance most ago, supporting this of new Midland to HOU of HOU, growth contract. the we risk is manage clients up oil the the in innovation revenues, opportunities quarter this This Brent this reaching contract basket, for the WTI Houston of fast Houston. X volumes during contract deliverable known Further as becoming quarter. as a the of the risk into added oil strong hedging ICE this that has been innovation which Collectively, management creates year-over-year. oil

global JKM our the buyer our formation. LNG, In reaching decade Today, the in In first gas grew gas investment, began both gas of relationship of global a drives an LNG market largest of in with year, over our volumes. trends natural in as trading. record leader the markets, the double beginning ago, that between last price of globalization investing and established a benchmarks investment TTF number market has as digits the index quarter, are secular us Asia versus with with we Asian European participants European each rise the and

This first quarter. gas revenues, up XX% year-over-year in record the strong drove natural performance

The XX% a trends a the most Exchange critical focus decarbonization our Importantly, liquid respectively. gas markets, for of world's TTF decade and is strong operate largest open April, we the and up to JKM environmental than XX% of Climate markets. more alongside year-over-year, off built global interest remained through on ago, of environmental globalization and acquisition natural

of over have seen record participation active quarter. grow in on the X we digits participants the years, double Here, the past number first market including average

our environmental their interest energy year-over-year, At positioned reduce this portfolio, Price through environmental global portfolio transparency cost-effective spectrum platform open with greenhouse navigate the April. is transition XX% of across across network XX% as companies the look the same and By to increased are energy time, manner. well help of across a global markets. gas up the ADV end our customers to with in our emissions liquidity we critical energy leading combining our

value asset evolution solutions develop creation. approach summary, markets taken our we've one our In as drive and infrastructure, to across creative example well leverage of and expertise as we technology invest how is energy the customer-driven the continuously classes, of to

product Our innovation. record more an to these organization, decade effective efficient drive to of some performance we've is commitment to permeates a helping and investments, and a ago, made product approach than that staying our our this that close customers,

our This and new leverage uniquely infrastructure are to data and breadth of approach business, is also expand important our to distribution the where content to to create our we our positioned offering.

foundation a data to we've the is today leading of globally. annual income what approach acquired as fixed and increase providers the growth the position growth provider to since business served Merrill in price accelerating efforts indices construction, reference and the Our in have of has America flexibility offering, of for index the as breadth of of passive of and to made of we our largest the our one index the investing double-digit XXXX. average contributed Lynch franchise Bank our The

XXXX. quarter assets record in benchmarked less our key passive driver of the A growth growing end the $XXX billion is the first this than under management ETF $XXX through billion the of increase a to in from to indices, of

of and growing we While critical, data pricing only businesses to offer are this our components what index industry.

provider services, other the skills many foundation deep in we only the cleansing serves data across classes. unstructured expertise markets, the that actionable opportunities developed asset income building leading have not in gathering fixed a in proprietary such and but as and insights of for database As identifying developing data,

an number a to of mortgage initiatives. data expertise across leverage we're This is starting

of climate April, XXX more This facilitates climate example, transparency our For visibility loans, finance our and entire in risk the metrics customers than the in each. inherent integration improves million homes. the insurance risk sets ICE's U.S. and management we allowing covering to metrics climate to property-level data integration sector, mortgage throughout loan-level apply risks and announced the to property with improving housing property and portfolios, individual properties

products. insights existing we risk In to securities these modeling municipal climate leveraging are addition, asset-level enhance and for bonds mortgage-backed

opportunity forward, expand there within significant continue and business. we to our Data the to Services & services As Income move Fixed products evolve is and

now Turning business. mortgage to our

build businesses, fixed our connectivity improve are of that With in network playbook across our income nearly customer a market and workflow that efficiencies. to provide. our the technology, a have participant, digital we've innovative we solutions mortgages, applied in expertise Following market-leading proven automation global we leveraging energy the to and base data mission-critical point touch need solutions every to

and in pleased to top both Fifth that to announcement MSP the Building on Chase JPMorgan we're year regard, year last year, Third this quarter. this that now of and new we announce we banks Encompass share M&T In adding Bank clients, XX first pleased as on closed the to to announced Bank earlier wins moving announced last clients late of the with Encompass. Encompass Webster their Citizens are we are move and Bank, existing MSP such to

many complete clients that recent other front-to-back can the value are the implementing, offering. these wins our of we that significant like Just see provide through we

of For Credit wins Texas Lennar, the closed MSP, client. the call, mortgage Union on solutions long-time mentioned building and capital on CapEd Encompass last we a

their platform. clients as serve and customers experience front-to-back customer our a a one validation through relationships growing vision, our Our complete bringing for together of trusted

life the time a starting a that origination, loan the servicing workflows at consumer our supports product long-term and right markets. directly on matching seek with capital provider in home-ownership on. with clients been throughout vision the line the digital to have the the cycle, This we in journey right solution lending Our is closing,

while workflow, mortgage of investing across Importantly, inefficiencies of the executing our we enhancing and secular on the pain behind relieving our proposition and the points focused that to committed strategy network. exist on remain value remain growth

ways continue extend evolution investment parallel, to needs. market-leading have new advance and to automation example, servicing customers' the partner platform. user we're with our of web serve For MSP tools platform Encompass our to we completed on commitments a executing In our and business experience, to new to the more

Digital this the training A completed interface, servicing of language of service workflows, recently perfect our integration Encompass to we've new system example rollout This the of servicing our is lines, intuitive new is announced an or first execution Along MSP expedite and Experience, leveraging efficiencies conversational for our streamline of processing personnel. DX. MSP MSP. designed increase same to natural and

language integration the neural to and reducing Encompass data document and for to platform, from our and to from solution for automate providers leverages documents loan automation and MSP, straight extraction large closing This these classification tax, our network onboarding model our and data fees of flood have efficiencies service integrating Simultaneously, in assets. providing front-to-back Encompass, significant our we've clients providing set. choice that lenders data been important underwriting into more errors

excited we to we ahead. the past that about growth the networks opportunities we've for as continue summary, In lie and will we made that are investments and our through future. XXXX the beyond, make into the because able we're to the Opportunities in strategic move of capture investments across many

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

Good to you, us. and everyone, morning, Slide turn for X. Thank joining Ben. Please thank you

business. We are how incorporating increasingly is into being our ICE artificial intelligence asked

So I'd while investments of financial across some impact, thought here I'm ICE. the to not discuss I touch on the AI

on created Like or proprietary and we we're calling better build cases governance developers card productivity. that and many to and have the integrate R&D our Center internal novel guardrails we those appropriate use contract to sets how AI eliminate an improve risks large models we're AI on our we corporations, of data our products, Along how our Excellence, working AI. lines, to inherent into testing on group monetize we for reduce where own how to working

a We and are our on enhancements right, while to bringing AI-enabled goal getting focused customers. of new products it working towards

our actionable formerly also we an mortgage Ellie our and insights automation in extension data is commodity platform and We've spoke the with lesser-known, to just further product, of of upon document for Chat, to chat Mae. Ben I'd called, product activities. investing that on And called to in mentioned artificial growth acquired about investing some the using our which our improve market ICE market's AIQ on like focus that energetic impacts of second-order Today, AI intelligence speak we've regulatory ICE. feeding pattern compliance commented in we the models work current recognition data. see to

think of prevalent venues, human intermediaries. you ICE, financial both over-the-counter If start involvement back of significant trading open and listed the to outcry and exchanges were the largely involve

the network interconnecting built data venues, connecting out thesis pushed managed centers trading to ICE Our we've data our management manage players own we major networks to operate centers, global across of and risk Cloud, to access people XX centers and our Today, using services many create and connect and us data financial network, and to industry. third-party digital and a from broaden data the channels. global

determination it One the making while our ability made ICE and own equipment utilize through across Cloud code data ICE ICE global service transmit revenue to customers the property connectivity cloud requests Center the customers Data and This for offer the avenue strategy we ICE-managed We've incorporate infrastructure protection that directly our and and ICE-managed managing us providing growth. AI intellectual for IT network, to their available a resulted competitive access. an an output to is our and creating our within better that and offers and demand and the for increasing their has driving cloud. inside it's models customers from ICE in digital network our advantage

to data working much This our XXXX plan customer We've vendors for and connectivity to network and a and in customer artificial multiyear we've in been year business. continued of revenue XXXX provide its should year already interest expansion. modeling with for growth tailwind deposits intelligence build-outs, received planned our our

attention for renewable is our of Another the and they offset markets tradable world's growth, emissions that ICE second-order receiving data that and the in plan host is listed major from center from their emission given impact our companies third-party revenue markets markets. renewable future AI energy the and energy a listed as are developers interest power current

service X corporate in to benchmarks, provides United Administration, regulated more XXX targets, said markets of of offset companies towards count by market Science-based Target Initiative, than voluntary manages information Benchmark targets. emissions data ICE the is our will credits seeking last permit firms. evidenced these subsidiary, which against Scope Nations Interest validated administers surging month, to data carbon And about the to emission over than emissions doubling the for markets Our reducing that carbon credits. as the main that the past X world's months more it verifier involvement use

XXXX, to in AI reductions sectors EU's attributable Coupled environmental European ICE's with bright. revenue the aim in inclusion subject believe will beginning to be to the these targets, Commission's and its increase demand of markets that emissions model plus we renewable backdrop new growth remains industrial the for

income yet Shifting now share, earnings strong company's first In revenues, our adjusted history. best our quarter to quarter, once again we grew and delivering results. operating the the grew again adjusted in grew per

results curated that is to of and the business mission-critical are leading strength through testament has a a our value and ICE data, consistent grown entrepreneurship. our the market strategic company deliberately technology Our model. of acquisition

customers of of to manage We have collection help acts due risk and of targeted an interrelated to markets both man. nature our acts

reporting as we as purposely financially quarter. targeted of results, company think have businesses facilitate somewhere in affect to we supply businesses for cross-border such a We to of growth being is commodity-oriented levered conditions. mix provide we our global acts that Central underlying have businesses of issues acts we our as our the these oriented think are such and And risk levered such in of being to of management to this man, policies. customer Typically, trade find those varying all-weather record solutions positioned nature, to Bank intentionally world And flows. global chain providing as

I'd my results. thank to and to And by our like like their at colleagues remarks continued best-ever prepared I'd ICE for thanking our contributions for business to trust. quarterly their end my their customers for

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

JPMorgan. question [Operator of Worthington Instructions] Our the from first Ken line with comes today

into bit of a gas. dig to more the wanted globalization I

pause something the of could extent really Biden It And couple rapid period this remains globalization is speed bump administration this the growth by of gas? it else you Volume like is questions the licenses does then most is export How gas? globalization can here. along growth driving far is impact equation? in the driven strong. very recent surging address of TTF? for LNG a OI of there way, a which being Republican TTF. change Or feels along And president but a of the the to surge? So

it's part question then first the And question. second I'll Ben. the first, of Ken, Thanks the I'll and for your hit take part.

we form runway long, no LNG. In And that regasification that world commodity, And in global to flows, what natural to LNG hedge TTF wedded been really long believe as around that that in a and the the it go. of liberalized. is risk. really there changed into to terms have emerged can and a gas, have move pipeline longer now been massive natural fundamentally the and terminals has has gas and is freely around changed world evolved of the It's investments way global just terminals TTF gas

gas in you as some to right that locations have if have manage flowing products like the you the that products, look right now And to Europe. have also and but now, at U.S. risk have people hedging recovered world benchmark at U.S., European all precise into LNG only more the the dynamics, and at not mean, to the look across products well with I to you degree, around enable you Europe risks markets we believe now to need parallel TTF.

going winter Europe. in the online Storage levels Germany high winter. Netherlands But a geopolitical terminals the continue that are have risk have chains ongoing mild in that to and of to that supply at has We You've helped. market. and still been backdrop to come tail energy got risk risks around this introduced a evolve had have regasification gas past that natural you supply

And those risks, has to clients think opportunities now out, had of as those of confluence and to risks you and the we a pointed change that amount use a there's tremendous be here. as our all products to runway gas And tremendous can TTF for move those going evolve. hedge of things freely,

and XX% XX%. volumes are up interest open Our is up year-over-year

used It to bump, pausing from we In to permits another as terms look introduce you for what that word, White years have along that market an U.S., are risk new just way, at see this this this of LNG take place come speed the takes in the participants the the right me. House on for does online. and determine have to years Permits impact. now, to exporters

a to of have longer-term market absorb. you on same more terminal Canada soon. the online for a new But it's in token, So implication coming LNG the

as see to it's liberalized been risk is to place TTF it's going you're around That managed, world. needs the So be the move continue LNG and to fundamental that done.

comes Benjamin Barclays. Our next question with from Budish

the I demand if outlook environment IMT pieces How interest versus the affordable? could on the rates touch dependent on you for course your two the interest transaction-based is the over is supply impacting in rate -- those extent changes forecast? that Warren, the year. based making sort what on To are less and or the could of of was -- much that what MBA wondering the on Or business view opportunity house look like I the mentioned in you change guidance. revised think

It And the low, health contract bit revenue in like are tougher a churn be little negotiations but levels. the then recurring other side, it there sounds base? quite helpful. on is overall customer like Any commentary any color minimum the on of sounds of terms would

Sure, Ben.

transaction. that on I'm front. going to customer going it give more you on to start turn the some me with to Let on Ben color what's

gave outlook. So to a was we when thought of conservative range forecasters last look more mean giving we the you And of that really quarter end wanted we what the to going bit like. of towards little thought the terms and the you year in build of lower in in end about some that what they were yes, taking was you're of that a range, guidance, I guidance correct. high

quarter and this they the of we about actually end now mortgage least a we sort seen little those same look bit framework of on we've to more sitting -- that where through around the You've range that it lower uncertainty guidance of this the we rates of put going it as of down wanted the as the -- the revised moment as were a interest that move that was and, at what because so like forward. therefore, move that of at we balance taken well, towards are obviously and similar thinking There's trajectory now brought how to down they're bent conservative end a as at we lot high towards year. bonds

that an things how the thinking we that, were and and so base from standpoint as the of about think macro that was it And making that customer just they has decisions impact about on nature. origination

question second your part Ben, on of I'll follow there. the up

XXX% conviction grow board. this and more with that business give just over the wins to on And more fact the have the term. are we We to coming evidence for customer continued quarter-over-quarter on just to long ability

we now in happened in in So this from seems great that maybe of ecosystem cut couple our almost the rapidly. platform is an seen a in and that XXXX, what area. A volume environment, to customers X, a and to environment past in X hasn't X into generation been this since like continuing things. quarter, that that we're is feel to continuing gain onto this cuts Obviously, expectation to X, of industry bring XXXX that even shifted our rate

renewing with our that. watching we're and happening The levels. at are I'd monitoring out. point a of result and of clients very couple So what's Customers things renewing high as

renewals, are several And these we're our achieving, higher in value subscriptions. customers the the that of that is about with front, we're lower which there regardless renewal the and we're on into innovation But based higher all the is seen which that levels. new loan at percentage of what in and customers a renew with fee. that that we're provide are renewing some objective way these repeat we total consistently the minimums, subscription what we've are, lower I've value now continuing contract the of customers to on a minimums, of higher to those they're are the choosing to seeing talked trade-off negotiation On all increase marketplace. quarters that foreclosed go introducing our renewing majority of that seeing But almost

of not seeing terms in So renewals, really change. significant a we're

several mentioned announced sales continue Bank new great Bank. top wins and on to we success. the wins with just On Citizens of sales have other I that recently front, Webster we've

lot when want a and good feel fast as get expectations market our and how watching is stability funnel. to investments. to they're a market closely What's we're on that going just we return given about So participants unknown the changed, view want rate what of just

see tide we're to the seeing back customers potentially are this in this going closely to them. to while when capitalize So to they're critical comes the well-positioned to watching on our so invest But is continuing out time infrastructure, most that for in, take sales we the cycles part, tide lengthen.

Our next with Sandler. Patrick comes from Piper question Moley

Data an I was & business. provide that institutional organic you Income an us hoping out strategy standpoint? the in institutional a And from connectivity on the overview understand secondly, or could help you efforts Services just and just there progress Fixed your opportunity inorganic build to can update then and your

Lynn Thanks for so is the This question. much Martin.

& Income connectivity So we Data our are incredibly across segment. continue Services out the build institutional at to Fixed excited to opportunity the

continued still we're to so way because there think our muni we excited in on particular, the our with Now with And data assets, part deliberately why years. index we've seen room adoption, given execution curated the grow in over grow had institutional business. X institutional a success of continue is adoption particularly reason have the to in to we we is our have CAGR of the the because business, last side the

earlier our against Our a now in roughly benchmarks $XXX index business. mentioned billion his business, is Ben prepared as in index that remarks, record AUM at

turn made it some role. he's color my into to Going stepped to the the give more since Chris, progress you to on he colleague,

the thanks those street values as And January clients. bringing Lynn to step the what is to uniquely desire opportunity SMA execution closer unique to across us us development the of us Yes. since on we're accounts in there. to been the seen role our side to for closer the mentioned, that way for solution being has X, get provide going the to on that's X that important transaction we're so Thanks, for that Patrick, at draw everyone plate liquidity, data, and seeing for and of deep valuations from this pools positioned and I've the And in exactly institutional question. an opportunity. is same What the that is available or managed a to those marks up the and separate and looking trading provide street across There's the Lynn.

comes question Jefferies. next with Our from Dan Fannon

mortgage. follow to on wanted I up

And of contribution having also You of and do How the wanted legacy Knight that's some some a servicing the is are and there also guys a the side, And year-over-year financial quarter-over-quarter. large declines of firms? quarters. obviously I lot business in understand is and why think about portion larger of of to on-ramp pressure. recurring some bit was signing Black up several that both success on of -- these under separately the the institutions over we revenue last

Thanks, Dan. Ben. It's

terms we've compliance to a it them. amount managed are These their does of core that's operations. to There's large applications. these clients through high take of signed, these In implement that time systems

in it So down to takes companies. time highly bed regulated them

is many as them, to those. we've as seeing year, year. is And you'll through. wins they start out to year, next these to latter going playing into been last of going it start announcing contribution towards those So this of of take -- But flow through part time a for the of lot

side, On the it bit we on is there very little QX. and From in that doing been call, perspective, a -- servicing business mentioned impact did last has well. consolidation industry servicing our we some the

that effect MSP And nets but on mortgage that is basically it saw the times servicing not on rights, some net some that do MSRs, out. have do switch MSP. in of QX, and between are at subservicers, again are that You we some

one sell been they see public their was channel. that we was to in from past did their of change did saw through very that's large acceleration -- MSRs about what correspondent some see quarter the we of this an nonstrategic depositories wanting One came as

implementation. clients clients. since pick on these that and of overall, Many XX with ability an We these and of clients, a we see MSP a Knight So they are that on on thing. have of number we temporary we really are as to we've accelerated lot record of that are acceleration we that ones up clients MSP, that. closed going have a the But saw announced through have Black XX

execution second been I'm thing DX, already. side, remarks, servicing stack. I I'd that the and The overhauled pleased prepared out that mentioned my so interface system the on platform point interface in use the MSP the that terms that in processing-based servicing to with clients our technology with whole new of is has the modernizing really natural language

Simplifile call, unique the the mentioned with are the automate that automate As we've we I platform embedded MSP prior end back releasing liens, that of platform into the our Simplifile. on position process really have in we to of to so in

helping wins. of MSP. Webster and perfect We've we lot and leveraging the we've wins efficiency -- going document see and integrated MSP, that are remarks, I'd Encompass us And my of in and through that I data is the where -- platform. the on thing as MSP we're last on really the keep the prepared is point Bank vision they're clients X that mentioned our these to examples, provide automation vision Citizens clients mentioning Encompass are where out the efficiency and Encompass are a pull

positioning the feel we great So of it. about

comes with Our next Citi. from Allen question Chris

the I the remarks a wanted prepared dig on business. Income the business. I Fixed investments you clients in in bit more in to by noted little believe

efforts leadership you the maybe So kind sales were with there. to And color -- in the some business, new the I of process. taking reinvigorate believe you

and fully sales speed you wondering you're kind improved of that Do are the the with and you've before? focus where retention spoken Just up to think have to that. you

on I to and taking that into role to really It's looking there Chris. the that's most two service us. in since also -- we base there's things, provide macro around or vendors seen is how I what to single January. a set Certainly, client find the related to they're one for that. made since we few and And available, tie I the solution say, on would clients I've one, think, a very opportunities comprehensive change have to focus

days. different team the the moved client these we the so from that and they of results within team to very and to And they're I'm structure the itself, proud because closer a much produced

seen two have we those a together, cycle much things on historically client robust And we've discussion We've the had on with. seen strategic a base. some future products on sales plans also that success come more shortened the great of

bear. going into the think of rest we're to well that bring the I So positioned year to

then to that this follow Lynn. And up, is just

strong the makes fund by having business on the funds income referenced the the tools the comments. of assets of And day data, and history there, that where modern plus the years continued market, we a I On both the that macro side, about versus we've the adoption business increased that X% end seen in incredibly again, pricing, like the the the CEP, fixed suite out income earlier given the income my reengagement we year, amount demand. index see strong well with fixed of prior which reference side of have, have fixed obviously, on more on us rolled positioned of continued we to then

with Craig comes America. Siegenthaler from next Bank of Our question

the growth? translate upside this business. on will changes any Has noticeable are future ASV income channels curious in into attrition? revenue there And fixed in driving in is wins? We're to question how Our the acceleration which been

Warren. it's Craig,

covered think business. seeing pickup I were Lynn So customer and Chris what seeing why ASV that in the front, of and Income of we kind in Fixed Analytics just that's the Data you're and a & on part big

seen We're a improvement customer So -- the and sales reengagement so the seeing, really business. from those cycle. the the we've the stable in it's of seeing remarks, We're in retention of I the trends. prepared my pretty there. said an as that's income or why products, And seeing we're and pricing reason improvement data around within ecosystem reference fixed a index big whether base business more

some the you of on were There move a sitting last -- pressures if in to was we interest mentioned a sort sort kinds business throughout was really you're rates. of really somewhat on income their spoke that of having stabilization hands the becomes of licking ago. seen there that a where of time their that's We wounds, reengagement, period a I you trying things seeing here class. seeing we've pick interest that's a help index of a growth, some guys really of to had will, at business. -- that in versus lot higher you're on customers course we that that that as of it's up now to sharp seeing because we starting were year, And was And couple reason fixed rates, attractive way. quarters purchases, asset it And these fairly a you're nature, of think where it

with Kyle KBW. from next Voigt question comes The

Maybe the on just Exchange segment.

data environment so, is that low think And I half dependent on data fees that connectivity in up on and drive recurring there guess you growth the then I expecting think full-year the of opening the that the year would IPO the in growth growth full range? are and Or recurring could X% still for in were segment. if only connectivity the still acceleration year into the further? single-digit and expect I into side. back line single-digit that some and revenues low flat, you

Warren. It's

on in to in -- the where happened the bit data of Stock a prepared kind expect of that with and New remarks prior my So little was little overbilled takes our people we Exchange allocation and the yes, higher, the to mentioned in we this a first the some so range. had side, administrator still York be bit had quarter. single-digit year we in reverse that Really, what I quarter, low more

of in pick case no see back kind revenue as the quarter for that up the second You'll is longer us.

think see as of there because last same the the the been we as to within And balance are little that start of the segment growth couple year quarters. still underlying you in what we've to I bit a seeing of trends the so kind move better

listings time, stack weighing there bit. a the sure. are side, the of is for positive. delisting on at M&A. still in on little an side seeing exchange that's things Certainly, the same But momentum is There We're some data element

single-digit, continue be of are that And see I So I are certainly, the to to some But the big think Exchange need you we'll I to get that year. trends the front. I particularly on that positive don't data side, low on Futures strong balance things think listings. on the a to encouraging think side, think in seeing necessarily the acceleration through we

Brian from Deutsche comes Bedell question next with Bank. The

recurring Maybe guidance of just on the progress view year throughout Warren on just as the we Ben, for the segment. the on Maybe quarter. two-parter revenue trend your and sequentially mortgage a each for just

synergy And this trend, probably, on in some the making wins. contrasted new renewals, then the you're with, but pullback and the business into really generally contrasted given Just you Black $XXX if were number on could I update us could at Ben, headwinds, out million of at goal update if links the quarter, of the progress the the servicing the Knight revenue good you with million basis. the a that you -- think run end $XX rate on of fourth

That sounds will like X. three X, and Ben take then questions, Brian. X take I'll

be down will revenues get continue be expect under under pressure. nature. to a bit bit you'd come little a of pushed recurring I little little out -- bit, of that little of for bit a mean for will in single-digit year-over-year. a to XXXX, a years, also, would I of down talking the -- that revenue, So in was which where we're in high mid- single-digit, total originations about more think decisions imagine total of the by range the I range probably I towards to about versus worst the way, year think XX end the originations of higher renewals the little be bit pressure, things higher

flat if same Towards there a see in single-digit that to magnitude year's and bit on higher for will probably softer the potentially that reasons, same the last to is really front. versus I would not think but you the little range, really the end, higher maybe

really think that asset what's Futures seen April. in We've better well. our business a bonds. in some of just and I We've through across driving look, importantly, trends other helping is this asset better both this, uncertainty class CDS in And growth of propel doing So kind a across lot of of areas and business. trends of all certainly uncertainty seen Obviously, of to number is in is this our some classes.

we really despite to of mortgage for that I origination continue business And moment. bigger kind make revenue case different environments. industry just this generational lot compound progress of a the is broader -- has will think be of so part proven to that to the synergies, a a continue continue is and And on what low a to on there. in market volumes Quickly mortgage the the at through

As so of or we're $XX last million around we range quarter. said, sort that

more on we to you of guys an kind front. closer that as into though. make to year -- give of progress update continue next move We We'll

earlier pick the some I'll of on comments that up around sales. made I And

the start and position in can technology that to environment, automation we're volumes that to sales the grow. way when to happy we're making with bodies that the with be right tide better and when continue now at able our I very them inefficient out, when just that clients We're investments we're use providing time point tides to are success even having really leverage comes that to success. business we the the to So in they see are they this in and this analogy, return to throw don't that a actually have have that to the pleased great and clients so help fact

So seeing we're there. what in we're very pleased

also, it Brian, as as help using an our We're to opportunity actually clients.

of with noise this originated cases, our on the clients that terms they of the Encompass to, data that to platform the in DDA were where our they that them the were flow get line because can this combined platform automation having as have loans some restructure some DDA clients then on wedded and and it I'll some We document example. struggling quarter, an opportunity directly solution straight in their so Encompass through, that, that by past we onto to get agreement value into capabilities Encompass coupled took automation platform. full you we So were give had had legacy environment. we in business, D&A an volumes In that our Encompass, D&A and in not and provides

a is they implemented. MSP to grow that a as have So situation going much provide forward. with they're with using strategic Citizens complete have front-to-back perspective, specifically time better we're client for to And that example take now and on even and in now implement though them. client, as have that set continue get platform Encompass, client to DDA as to we're Bank, going it them value an solution that to we them a they opportunity, that From to it's the

using an we're clients as it So well. opportunity as for

with question Blostein Sachs. next from Goldman The comes Alex

I in focus just energy couple wanted oil. little the zoning for on to maybe a specifically markets on a pivot of minutes. And bit,

of volatility XX% been has or conducive nicely a Now been like little here. so open it to bit growing interest year-over-year. more the environment But really looks the has north

So think guess, growth how accelerated I little but driving, just for the of what the it a in broader. WTI, here. And oil not a and expand can board? guys out sort brand It's you the questions guess, bit couple you of I is then versus across do in sort so, we of cyclical of about just the the a rate from And maybe growth run growth if in here? And sources market? of you there. that Are structural benefits kind higher why? seems

there by it view, Ben. It's And because long-term in oil within tail asked as The of the the trends specifically, well markets as electronification. us, market end electronifying. Alex. been a within are in see you growth broadly efficiency be still to are still infrastructure. we there's that for for energy the underinvestment energy the us, provided that Thanks, wants as that trend legacy question can that our answer The

chains consumption. to more at Clients world more evolve. more that production are the Supply continuing markets the precision in manage are global. moving and risk ability to energy green. want And have You of their point is

of So confluence you have that issues.

solve And a managing problems. our across we've all helps as of to energy been that portfolio those portfolio

benchmark our environmental same our deep of products and built products we've thing We've hundreds our within gas we've thing liquid business. business. the locations oil done in gas business, business, exact same across done So the and our within

risk So relationship those thing that that's growing complex can't all because place. there's overall in want all strong as between of and is that underlying our we customers this to think one manage discount a you an

positioned. to very continue So we be well

cornerstone introduced to this clients for through talked these contract in and which that into our across of You have Houston the oil went contract I need has flowing to that complex now this my lot market that prepared grow of it's the fantastic as business. we've growing WTI X tools well we over with Brent HOU innovation contract, significantly, our last of Murban risk the our the as we've about precision a with are Midland basis, so Brent management positioned years us. the remarks,

into RINs out And contracts, and renewable blended of much environmental for growing been, fuels market. even to perspective, be nicely in gasoline. And numbers, oil, opaque new introduced number I'd that investing we've been it's contracts the a that in point us continues an be And that needs our identification EPA amount from as an very to futures into that, to used raise -- well. of as we've renewable the very OTC the like

at only energy space, broader this innovate continue of to look So our the in oil, but it within to business. important we context think not it's I in

Jeff so questions, CEO, We no for remarks. have Sprecher, back further hand to I closing

again first Have to we continued a And this business Emily. innovate and model. trust. good to this to continue joining quarter our updating as try record forward Well, again build all-weather Thanks their customers for want I thank and for and out us you, we morning, my and to you a thank all for look day. soon colleagues business

us for our Thank lines. you, joining disconnect you concludes your This now call, everyone, and today. may