NDAQ - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Nasdaq First Quarter 2021 Results. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please hand over Head to would Investor now speaker conference to like Ditmire, I your the today, Relations. of Ed Please go ahead.

Ed Ditmire

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

are website. presentation concerning reports with the forward-looking line We periodic remind Litigation a CEO; may the XXXX. FD. statements our call Adena. our statements to under prepared open release use we management Zecca, team. material, Friedman, as CFO; these Act Officer forward-looking projections. and and on future up in Ann and statements will turn relate such and The from to SEC. will and contained Securities Chief during within release After now Actual expectations Legal may factors like in materially Adena results you Regulatory our presentation Regulation website Q&A intend Private to means non-public the press actual are Information to to to I other Reform press as the this from and SEC certain the our with events would differ is differ constitute results John the I On of information meaning disclosure disclosing Dennison, our of the that of members and filed complying over obligations Q&A. of cause could that remarks, and

Adena Friedman

not as deeply business strategy. to and Nasdaq's has to has team's Nasdaq could well the quarter today. made our by passed My our since I'd today remotely more on full-year first remarks Good as first quarter our we our workforce now Thank acknowledging us. begin on have everyone of and clients team will pleased delivered financial I'm that A results and the continued morning, thank how began like commitment I working you be progress you, with this global joining proud for our period. executing during Ed. to XXXX the focus performance stakeholders

Nasdaq's focus for and XXXX. client the of to relentless generate Our financial allowed nimbleness first results strong quarter us

quarter also our of to February, We our agreement business of to completion during acquisition our and the against progress U.S. in the Fixed Verafin the corporate with strategy Tradeweb made announced important sell Markets. Income

address Our performance product changing Nasdaq's resilience clients offering rapidly the well continues business of a our as period underscore model to to diversified during the this in and as our of needs environment. ability

$XXX the positioning, record changes of financial segment and by quarter. capital Now exchange driven Across acquisition Nasdaq in businesses growth dynamic strong U.S. results for our period, of Services of secular competitive ARR our with environment marketplaces the from crime. workflow options reduce the period. for helps annualized we've during prior-year key The the This Verafin I clientele our continued Market from delivered We're FX progress business. XXXX. strong solutions the from Solutions are our markets quarter the business that segments. the net opportunities and our volumes in for growth businesses, incredibly $XXX ESG organic also combined XX% financial analytics the powering first resulted compared and corporate for and record from growth listings. technology remainder rates solutions, drove our or new revenues and increase in institutions to demand will seeing to equity tools, including in continue in driven that quarter the to institutional IR revenue to our of financial for clients our investors period, turn and the prior-year organic across our our rising and growth million, of grow million, XX% XX% Solutions I'm extremely an proud focus made recurring a for on or was XX% of by is our up which for the and

model Our operating ARR in growth our strong evident results. the was also boosted by was of Verafin. the of acquisition leverage The

operating compared to points Our to margins prior-year. up XX% two increased non-GAAP percentage the

experienced As earnings a a share increase in result, period. our income the in we XX% our in operating non-GAAP increase non-GAAP XX% diluted and per

Turning our now and begin the to with quarter, businesses. marketplace the specific I'll highlights from foundational corporate

net for seeing for the Our increase a prior-year total cash million, Market segments of and XX% record This from new primarily U.S. quarterly solutions, traded Services options led was during as in equities connectivity capacity period demand range increase set XXX volumes. We're market the by Trade XX%. this $XXX Services a increase quarterly of also Nasdaq and a U.S. of contracts business. their clients revenues an higher revenue trading wider period, Options adjust for of a million an Management record scenarios. volume

of While record million of quarterly U.S. our markets a equities XX% an XXX set shares year-over-year. traded increase

agreement an The as Income sell capital to U.S. with to NFI global Additionally, aligns Fixed to of potential strategy to entered NFI our we definitive a major maximize markets. analytics technology Tradeweb and the affiliate during our to business sell the our period, a Markets. decision into provider

the later to close closing transaction in expect XXXX, customary We to subject conditions.

been that products, robust measure, and and Nasdaq in product Platform Investor of contribution Relations, listing by boosted revenues consistent a company to our segment their The our which actions positive contributions of material transactions Next, private areas Relations, and governance, collaborate designed new and IR analyze, for quarter is In across record first we're private business, from Corporate Intelligence solutions. demand seeing and $XXX for take increased our has the XX% our delivered following suite regarding each business. with activity, for our and Investor programs. services sustainability levels business million, growing record clients' market demand increase carefully ESG of ESG respective help expanded of a

solution and engagement XXX sales XX% XX as increase meet consultative Nasdaq in continued leadership a including sales that Listing XX% and seek exchanges in from Listing engagement rate has combined in-depth our our executive our IPOs. momentum more we from strategies. segment, our institutional lengthened saw insight this total greater six Qualtrics, new advisory client the IR stock win company ESG our IPOs a to XX% during period IPOs service U.S. and quarter. the clarity investors $XX.X on demand market companies, IPOs that seeing quarter win offering, For the Intelligence and led deeper led including solutions, raised saw XXX XX% Nasdaq The during stakeholders unit, results In advisory operating they deepened our ESG workflow a include teams Petco. for the new the which from Bumble, with a for IPOs example, expanded IR billion, wins we're for Playtika and among their other And Nasdaq client IR Exchanges and and first win U.S. SPAC a operating on rate Affirm, of amongst SPACs. highlights IPOs, rate welcoming with

top are IPO to During and see the quarter, capital Times to experience again responded listed that virtual our Qualtrics seven going IPOs across Highlights for the markets excited and Companies forward the Remote ceremony celebrations XX milestone day to the our in Square, Bell to road We welcoming and market period quarter to our partners Bumble clients as look in the during on we for a these Utah. to safely period. include ceremony. post-pandemic Nasdaq for capital unique to country Texas start site prepare IPO our positively largest Nasdaq and during in life experienced in cities and the of to Bell raised. come and we encouraged iconic pandemic by the

particular Of Nasdaq also was listing technology for with the noting of largest on second course, listing I want history, Coinbase, successful the Nasdaq. largest listings acknowledge listing The direct represents direct strong the the in economy. leader a infrastructure global in cross opening start to Public to ever crypto listing in Initial and the quarter in Coinbase and

Technology Market Now let me businesses. Intelligence turn and Investment to our

delivered Market revenues in including a in the Verafin $XXX Technology partial segment contribution from we completed acquisition, period Our which February. million

was of operating and and impact revenues have the from Verafin's year-over-year, progressing two from and XX% Our million of transparency the groups. annualized are the increase quarter this including quarter the additional deferred our existing closing report the XX% $XXX representing revenue a $XXX irrespective annualized business million, of first To or of revenues a total segment to more an Technology parts we started business different date, a recurring you subscription increase our of temporary give how write-down forward, in going Market of revenues. our for

market brokers comprise trade providing is detection infrastructure risk operators, Technology, Financial the The called laundering solutions first management, and market operators. Infrastructure Verafin's solutions. and is fraud anti-money to lifecycle Technology, And which surveillance, called our offerings and banks the Marketplace for will our Crime second and non-financial Anti full

Market the our continues in stated by Infrastructure in certain related there the the have we Technology adversely characterized that largely to to those cycles, calls, environment be of by previous impacted been pandemic business. Technology investor profitability. business revenue last areas in in the And while growth factors are Marketplace the actions to respond implementations are logistical and lengthened albeit but segment to near-term, short-term challenges we dynamics stabilize the moderated to year took resulting with sales impact As

by Technology Anti the Solutions. Market products in and our from Financial demonstrated been revenues in Technology particular, track, new remains sales More Crime and vision our as progress longer-term importantly, services, we've on for SaaS delivering

increased all Excluding SaaS revenues of XX% the within impact of Verafin, Technology year-over-year. Market

million or of delivered we $XXX indexes quarterly the XX% of under $XXX an the record. Overall prior-year net at segment, billion $XX Intelligence prior-year assets the from a Investment totaled our from benchmark of the period, to quarter, in new increase up revenues XX% and management million, Turning to Nasdaq's ETPs period. end

AUM strong at five launches after billion innovations. on the just increasing recent some launch, XX% built and Additionally, indexes, tracking the in also year-over-year. see of in adoption quarter most options particular, new in fourth product trading Invesco this pleased Nasdaq successful months at our now Nasdaq's debut Index their I'm In of the futures of in business. stands of approximately suite one and contracts for increased innovation XXXX, AUM making futures on to $X

improvement revenues quarter. experienced Led trades. XX new institutional and to prior-year in between from by increase users the quarter, in increased a rebound quarter the new combination from in strong and $X XX% help eVestment sequential drive post-commitment in investment tracking following our as portfolio some to pre-commitment to realizations and first institutional diligence increased the sales million, Solovis These up due for prior-year to in period. demand solutions were create secondary Solovis fourth XXXX, first both analytics XXXX, this of basis, managers for the from strategy Our comprehensive compared of investment and eVestment delivered our growth to workflow underscore asset XX% results retention as an contraction $XX On reflecting as or the temporary well the of growth business accounts owners of business Solovis, the and million, new synergies period. industry

revenues demand Lastly, within expanding market driven XX%, for data proprietary our Investment products. our international by data rose Intelligence, primarily

reiterate At opportunities I that that our a on unique our up, variety I’d of needs us. articulated of remains with As designed on strategic resiliency Nasdaq we capitalize ahead mission business Day model the diligently in disciplined diversified like the serving that clients, to backdrops. our provide wrap the us our to across to was while drive Investor advance to we of lie November, focused growth

growth success, underpinning clients, higher franchise Nasdaq platform highlights recent as the power quarter, opportunities, core. marketplace the of major solve maintaining be has to many first help our our while underscores our clients bringing especially businesses innovations to Our dynamic solutions new leadership we strategy advanced focus is with resonating that resulted new continue of in or capital in the the across challenges. repositioned instances reallocate product to a industry our it collaboration technology This in also and

very in client to the new in solutions potential global relationships together build our the Verafin system. For example, our confidence opportunities financial X the we're we segment, Crime out excited can with X as This Technology strong Verafin. given banks, Anti team their that with work Tier includes increase Financial do the about Tier and to for continues

has client. Verafin landed Additionally, just expansion, we're into international their support its especially where pleased to first Europe

years, example of businesses. IPOs recent and next-generation development the our Listing Index of synergies index with drive great is including create in listings product Another of the have the innovators, to business. the strong to that come collaboration many Nasdaq our new largest intersection in

Suite, launched and our strength of Invesco, launch including our of to companies groundwork for Flagship XXX Innovation recent the Next growing on with Etsy the as and XXXst non-financial with the market. of Gen ETFs fastest and as the listed partnership been the Invesco of companies of example, healthcare Nasdaq we've the the ETF XXX a XXX that Generation one many largest on and partner as laid Nasdaq, Index, XXX companies a Invesco comprised Nasdaq the For the enterprise technology success listed Index Nasdaq such fastest has well Next and Roku, ever growing our includes

back I XXth anniversary I I right as Ann quarter, for could not with our look are the Nasdaq's direction come. pioneer, remain in many to officially and Nasdaq history be over prouder performance a As given to confident technology turn detail. we I'll celebrated And in review in the rich greater business. across this results at to financial that, that our of We the moving February it years

Ann Dennison

as non-GAAP Thank on prior-year growth in our of can comparisons and everyone. Solutions non-GAAP XX. period results revenue on net reported of revenue $XX $XXX impact the reviewing you, segments, be which well will of GAAP found and changes acquisitions, located otherwise website will result market million from million prior-year margin $XX primarily percentage including was XX%, increased $XXX growth Market period. of start Intelligence of licensed Reconciliations Services an increase as impact ir.nasdaq.com. increased XX performance revenue to from quarter Relations morning, the growth impact. within find million first and in segments. million in I'll to our XX% reflects be in focus XX% file disclosure Page in The XX%. including year-over-year or Adena, presentation changes compared at ETPs increase entities rose revenue in business, period. million million quarterly Verafin very increased from of presentation Investor FX million positive My unless or and to the on Page change in X of revenue you'll as recurring XX% organic increase release strong financial our noted. revenue million press our inflows new increase in a with the I good contributions the segment Annualized from of $X organic and strong start net rates. to to period our a flow Pages million X%, a $X contribution and impact Net highlights reporting in one analytics and Index $XXX or increase will from in by changes growth our shown now a is as $XX the $XXX to the million of from Investment the X The to as on commentary net Organic ARR compared $XX the and results XX% businesses. of section each data growth the reflecting FX the all will which billion, organic I $XX U.S. $XXX review increased million The organic On Nasdaq XX% during both Market XX%. and well XX% of revenue and AUM was market both point or acquisition closed mid-quarter, operating revenue year-over-year prior-year rates. from and AUM. Technology our a

price a $X from February runoff Excluding the revenue close. purchase million XXX, the $XX closing period Verafin deferred Verafin On of remaining Trade Tech a XXXX, price in to XX% $XXX revenues the increase partial with acquisition. purchase we higher on compared Verafin in would our showed Technology million period, Technology the associated adjustment adjustments revenue. temporary Surveillance million Market the largely based the Financial Market was SaaS Verafin's XX, for $X following prior-year for revenues, the transaction, products. have driven to of primarily million $XX totaled organic The XXXX in the quarter due an by first quarter deferred million of and was Anti increase of on Crime ARR Market particular

Market Verafin, Technology XX% increased the ARR in Excluding period.

SaaS a revenue supplementing with this would Verafin X% a non-recurring investors was believe non-cash to Infrastructure of services our In reflects beyond. new The a but been progress both ambition a well as our across to Market support to our that supports business the being Crime excluding and for earlier, the revenues, breakdown, we're Market about Technology we the recurring X%, margin adjustment deferred expand optimistic not businesses. revenue. as purchase segment addition business licensing analysts Technology the reporting potential Adena subscription negative as to positive have professional of we continue X% XXXX the the in continue and operating Anti contributions disclosing we contributions SaaS margin another XX feel Rule that and the level help related is mentioned to and Financial Technology and margin Technology when Market track price The a

is on our purchase next deferred and revenue two the eliminated the of will over a coming over years. expansion drive While main be basis, margin the price adjustment on impact Verafin quarters, will the factors temporary, four core

revenues is our mix subscription SaaS within Market Technology increasing of significantly. First,

to This it approximately continue SaaS expect three we strategy. have the critical on-premise ahead, to businesses as two execute margin to times average contribution our grow our Looking of we solutions. the because is

a work, recent relatively areas in margin on-premise low resources business Second, and hiring basis our temporary we clearing on solutions. most complex Market our in more accelerated installation allocated in in particular, to certain of of existing Technology quarters the

a and as to million compared increased the period. points the was compared changes volumes to XX% margin higher increase seven points reflecting increase an revenues together by in about U.S. strong FX the in derivatives increased there the segment XX%. $XXX $X higher period, $X primarily prior-year and higher unusually XX%. $X an margin bigger XX% trading last was advisory revenues operating expect IR $X FX Services driven increase segment's impact sequential in increased Nasdaq Nasdaq a million this driven over net and margin particularly was or on run and strong industry the $X increases of the there IPOs see in years, were impact listings gradually ESG XX% in Organic and the XX% million, least in percentage the equities private private and to million market rate Platform activity The bid. the three prior-year increase net XX% average by Corporate listed of substantial equity was than operating from increase $XX the period Services decline to percentage The XQ due the while the market, has rates. record coming increase impact revenue revenue of to Nasdaq million We an first revenues. both well revenues and trading was $XX in increased $XX reflects years. would or from million ARR from higher as organic to an Corporate in rates. increased Management from totaled private million at Platform's revenues. diminish The operating revenues from changes leverage or revenue million was in NTM's market XXXX. to revenues organic with The And primarily both quarterly during prior-year four revenues on business Trade $XX increase The over quarter. revenues. period, growth due million or issuer strong Market And averaged XX%. expect services we million, XXXX in cash organic

FX markets XX relatively the increase hiring reflecting the higher to a low-single-digit or organic the of one, variable consistent increase been compensation has from organic review outstanding Pages million and expenses. and of expenses and an related operating to impact million The to two, X% compensation the related inflation; reflects sum of and $XX linked percentage backdrop. wage The X from expense changes as million $XXX impact Turning performance acquisition, incredibly million. an increase, expenses growth; rates. increase increase growth a company's to active three, increased $XX $XX $XX and capital costs what million reflects Non-GAAP in to increase

of as well IPO increasing For trading the commitments wins recent example, as to costs supporting our in periods. capacity, marketing extraordinary related number

Slide a the guidance growth organic performance-based Turning non-GAAP strong to billion revenue reflect in and $X.XX on first we're our the had marketing of quarter narrowing XX, expense impact operating and $X.XX like to broad-based commitments. variable that XXXX to range growth compensation expenses to and billion

continues come guidance the performance forward the look we as high-end in to of be expense As we strong, of would remainder the overall year, to to at expect the range.

growth organic XXXX elevated In to well XQ other a and XXXX. in in travel performance-based had be XQ and XXXX and as particularly less activity due period lower onset to uncertain pandemic, new addition, we the as significant financial the expect the in-office to listing reduction as environment of to the in activity compared prior-year the year-over-year XQ compensation due expenses

margins, Moving operating increased XXXX. to the million non-GAAP $XX operating quarter first in profit of and income

Our $X an of vesting of Net first an acquisition. tax benefit non-GAAP quarter reporting interest margin XX% the certain The the to the two the related million expense with to quarter of XXXX, mid rate to excluded of first results that expense acquisition second to interest the $X the related our for XXXX, the incurred quarter related year-over-year. the of $X non-GAAP the related prior-year incremental expense a which interest was expense equity will due of to effective be of And $XX for million therefore, Verafin close financing awards. quarter. was interest quarter million XX% Verafin transaction increased was non-GAAP to from compared financing period incremental prior practice, operating to points reflected increase percentage Consistent this in million includes was results. in of

the per of $X.XX income the share to and quarter or range in the changes million, in bottom in Nasdaq net prior-year we For for tax diluted corporate share, $XXX period. year. the tax compared first to the of to landscape, for barring to XX% Non-GAAP expect per the near range $X.XX the come or in million, of the XXXX XX% we diluted attributable any $XXX was full-year non-GAAP to our XXXX, end rate effective be expect still

portion by due issuances million the book debt commercial fund XX, Eurobonds Slide versus an decrease in partially a net XQ million changes the to FX $XXX of values of XXXX, by offset Turning our increased $XX by of caused acquisition, to used $XXX of rates. to Verafin in primarily million paper

to period ended times, from the X.X a in fourth decrease XXXX. ratio at EBITDA debt X.X times quarter the of total Our

During the first the the company of million, quarter dividend in stock paid amount and Today, the a quarterly $XXX XXXX, common in common of million. of share. we're dividends announcing aggregate repurchased the $XX stock per in $X.XX regular XX% to increase

the quarter, to repurchase authorized Income related of Fixed of the first of the sale. additional increase issuance of to program billion the sale Board dollars, an during stock Additionally, of the acceleration to Nasdaq the business, our closing of U.S. share the Directors common an an subject

As the to EPS sale to in other tax repurchase capital and benefits, previously from well intend of proceeds order as we shares as working offset to communicated, available dilution. the use sources business the clearing and

actions sale accelerated for your Q&A. the the Nasdaq's concentrate time, X% period opportunities. resources I'll over on company for ESG Thank be immaterial expect support the to in temporarily operator non-GAAP during analytics dilution thereafter. quarter the the we close turn and to in evolution see the the further to it continue back and Overall, technology, following and its to you allow We XX-month EPS first to taken dilutive periods and

Operator

Thank you. [Operator Instructions].

Our Repetto first Piper from question Sandler. comes Rich with

open. line Your is

Rich Repetto

congrats guess, quarter I unique And operating the Ann. strong morning, Good Adena. on morning, conditions. Good Yes.

growth do that is has we're the experiencing. question with has rates broad, to do it my So to

comparisons. you you two comparisons the Platforms of If probably got guidance quarter Intelligence, the look growth another three stable you're And running you if were at and look still at the Investment XX overall that rate. to or Corporate rate, relatively given

I a lot and So this you adjusting, revenues, is of when highlighted. do as recurring you look guess, at

you or do conservatism when organic So growth look the guidance? at the rate adjusting of

Adena Friedman

Well, thank changed to ago. quarters are revenue I would two what would our say our about growth for medium say growth that we we -- long-term outlook rates or Well, I rates you. only

a -- that performing I five are ahead said the rates, are that we and having with we're we're kind that, those do time agree well growth say that we horizon. on least year Rich, pleased the outlook based believe still obviously to way, But that, extremely of still appropriate I'd So with at a our of you performance. appropriate three

we but at certainly platforms, make we're think continue and to more sticking with this across can adjustments, as to gain in outlook Solutions point. we particularly the I that the traction look those our segment,

Rich Repetto

to by --? Okay. Verafin And as they're going well be increased

Adena Friedman

And we'll make adjustments so when make did to And as the Verafin announcement. some adjustments that. announced that those we of we part acquisition,

Rich Repetto

Okay, congrats quarter. on the Thank you. strong

Adena Friedman

appreciate really it. Yes,

Operator

Thank you.

next Our Dan comes Fannon with Jefferies. from question

open. line Your is

Dan Fannon

us Market for margin, quarter? you in then, question morning. My could you contribution this, plus Thank you. and from as of Ann, revenues have based on the outlook margins see progression segment. is backdrop Verafin costs you sit of as without the Good ahead, business? kind the this Is the and might increased the look what we Are mentioned environment? looking as things help short-term the was on the a forward are talk long-term the the to the the about it Tech what and plus kind margin other normalization you just could expand expenses march said but see we or in at, And margin we normal revenue the revenue the the higher? ARR of looking portions reiterating where we of the of of

Ann Dennison

Sure.

included and deferred So million numbers the to worth that Verafin Verafin's revenues and of -- on million $X so contribution, had $XX your write-down. quarter, first for the partial related question we revenue of so within about

in margins, on way closed So the On primary $XX gross overall growth, board. our at offerings. to; talked our ambitions through can forward SaaS your was our contribution to Tech margins. it our on which the of that million should to, Tech. Rule to think part a we're to XX. that question in your of growth Verafin come Market businesses going the Feb And about going the -- and other basis, for look on revenue we we continue get achieving XX are will look SaaS We we there fact things the for the Related We be deal the of and higher bringing the quarter, expand is SaaS partial business, XXXX then Market to as we two

as thing decline expect deliver to them the just we incremental some have larger, the an complex have more So some then to of costs there, that, and time. now mentioned margins. I've added our we gradually we -- we costs to continue is do on projects. that see impact And We've last we'll on expand over

Rule we XXXX. So when together, this successful note you our brings important And think it and things it that we're achieve to I to of three just of confident ability the be in expect XX to is business here. put prospects those that back, in

Operator

Thank you.

Kramm question from next with comes UBS. Our Alex

line open. is Your

Alex Kramm

Yes, good everyone. hi, morning,

On Listings was impact, think little more just I you in $X describe a bit a the I you what first market still happened million quarter? Can business. it but know without even dimensionalize private that, But amortize very, the very initial strong in years. listing And I quarter. I over quarter SPAC know SPACs the was particular very on a strong many a fees usually sequential and it could you basis. know highlighted the

of sustainable be bridge that to difference is the given Thanks. could you anything wondering bit? SPAC little forward just should gap out point how listings that some kind be accounting to enthusiasm that on and going that the or of a SPAC So seems waning the

Adena Friedman

XXX had business; had the a We us listings, XXX annualized XXXX, strong we've back already, rate when you gets course this the recurring Alex. which IPOs. think of XXX look of I we then new Listing three over year, is Well, had at the XXXX, on a I to in IPOs. we think of performance In revenue had guess IPOs. new years I And over Thanks, revenue. it that in really of Listings very

with it's though, right are want You the fees. little to the They, come they all, different. Listings, in first lowest SPAC the market, because a of they to pay possible at capital tend

at SPAC of from only listing X% SPAC our contributions total revenue overall about if look is So revenues. an we listing annual

company. And companies, that fee to a it's we when the an of to as a is it course, bring So higher a that company -- opportunity with do contributor. tends to operating they combine rate. accrue Nasdaq And not to then huge have

it's this But lot from is companies risk the revenue I combine SPACs it's find make this are in IPOs. a of just companies able able of as a frankly, been a we've Alex, a But favorable IPOs and with. generally it just the operating be to think of of pretty they environment bring increase company new want been there's our speaking, opportunity not we've terms market. effect us been SPACs compounding operating And if majority it's also of of for to where contribution. to to the lot winning limited they kind of multiple vast to majority years to combination So --

I mention think quarter I those as we in And also, XX listings it's had all So the Nordics things. of well. the first should combination in new a

-- And -- and strength that lot our so that a continue Nordics as of the that's trend see in Europe bucking in well. business really to we

Operator

Thank you.

Suisse. from next Ghosh Our comes with question Credit Ari

open. is line Your

Ari Ghosh

Tech. or Ann, on back Market So Adena

Crime for you that Fin is you what bucket during looks Anti the out, of be Market factors see of result or pressure hasn't about the bit the continue little thinking contribution to year. noted we at than Tech should million within the that pandemic that rest called that looking seasonal bucket, Could talk you've at stronger anything we even think just just gone expected to as it either the a the that of Verafin including that quarter. entirely lumpiness quarter, away. the we or that, looking about And bucket the as a you related about $XX that So driving four

So about still is I X if you XX% on Legacy XXXX, a think feasible thinking of know reasonable medium Again, to the of growth rate. kind just organic growth think term it's X% color business about rate, about a more to and Verafin, that the any of as rate? if I

in is the Thanks rate still pressures we business? about some about if and the that legacy seeing XX% the achievable think a headwinds that lot. when X% XXXX, think we to So you're given business, an of

Adena Friedman

-- Crimes Sub Great. put so largely oriented it There to are Yes, surveillance Sure. market. are solutions is the what business. we Anti about on we a into Financial think Financial the Segment Anti side, SaaS Crime

you the and to with of business all and there both and low our broker SaaS. the lot on-prem lastly, a licensed a And fees. you have markets then the it's have not professional related firms dealers, management solutions very has you And entirely surveillance to is on-prem, costs, then both risk Then Some combination they're of and that SaaS trading solutions. that's revenues, Verafin SaaS have long-term service. more because SaaS of or licensed those standardized for a a project-related are pretty business but still the which

potential the is recurring So the of generally in quarters what speaking you're relatively of element kind the what -- is. of business it's seeing a

As we Verafin. business, our Financial growth did in Anti XX% before, mentioned I have Crime absent

So those demand all to we see of solutions. continue for really strong

absent for pandemic. of the mentioned, we're I part Infrastructure of the in Verafin, overall more business terms still Technologies we think as pandemic, the has in Tech by been Market rate impacted the growth Market a that and materially

for these to them build still with core have us their we're technologies. are they're and making, are These able partner to So, visit clients. in particularly clients, new business them, go not decisions and generally that oftentimes scale support large to

So they and if harder that resulting relationships establish cycles our sales be tend can't clients. we it's manage relationships those to to and visit from

that still case, the So of pandemic. because the is

very our pretty that existing clients, as really they volume last environment managing However, a spent focusing in markets the capital having year dynamic on environment high said well.

want how thinking are with about advance they having their around continue they constructive to again, technology. conversations As thinking XXXX, into come we longer-term more them to

of on the medium moderated. as said we're our the will of signs because on outlook be we time, So my comments, in growth would -- we're long-term short-term encouraging will have clients. that I certainly part to recover. working that confidence And not our business would be with that seeing changing over we overall rates but business But the expect

Operator

Thank you.

Our next question comes Bank from of America. Carrier Mike with

is line Your open.

Mike Carrier

have you for a and the backdrop eventually get at Listing. and be Hi, for the organic offset to been COVID, the and you is areas of of level financial and by highlight about those growth you upside Index in But there of good quarters the may mentioned areas some over benefited question. normalize negatively some could has as past Do maybe like the couple areas Adena, normal favorable COVID. you market that taking great from morning, have thanks that moderate when more that Thanks. some talking areas because some know Tech that point? last impacted

Adena Friedman

Yes, Mike. sure. Thanks

areas sure And eVestment, there two of eVestment had is XXXX the should The were Solovis, eVestment highlighting would Investment and certainly trend. owners an I weren't be change, to lot So in you're starting already sustainable the market of think say think going more I and that a we've recovery I see together. environment; say a also more community in a they are to I Management asset this impact. but of a been whether dynamic with dealing that very

really so pulled decisions buying And sort around on they tools. were, of back they analytical any

therefore, we I it very ways So, are that quarter really, but of in is now clients mentioned frankly a investment conversations model going manage find are And in we to we the retain what XXXX. all-in owners first maintain our think really shifted helped and that relationships, XXXX, pricing in as we're lot that to these dynamic we've we've the seeing, seeing actually XXXX, back portfolios. these and to definitely, us in through market asset managers into

and also all-in more for a we've particularly solution, create owners asset and done So more to eVestment. across Solovis

the of impacted coming into a off lot of So nice now back XXXX. a seeing pretty upswing we're XXXX

platform Market been would we're particularly of it's do that's think of downturns; actually harder; would we're mentioned, is challenges. it, with other say I governance I with lot I lot dealing the a we've the the in -- governance the work solutions. Tech, think corporates that But again, the rest as dealing across And we it's impacted. and on area, area a We infrastructure of market a somewhat I say then there. technology lot of

as And was we're would in there we so sales but a team for XXXX year it have more be and area we another to hope as beyond. environment that pickup would recovery well, that that starting where and harder see well, last some

Operator

Thank you.

Harris Chris Fargo. Our Wells comes question next with from

open. line Your is

Chris Harris

growing us I is Great, forward? on the that prior that good going is thank feeling that now about about And be the bogey XX% believe thinking how acquisition update kind around outlook you. this Can to a like of acquisition, and closed? you're Verafin's a was to and backlog you business was

Adena Friedman

XXXX very that ended on started we plan. and XXXX I can much very on say plan much on

also but they're that forward. on they're So I business think great it's And focused. a I path we're very team. great that business, just pleased the mean it's a right the And extremely focused

acquisition. when with plan they're what So about on talked the announced much we very we

Operator

you. Thank

question next Deutsche Bank. Brian Our Bedell comes with from

line Your is open.

Brian Bedell

Verafin. folks. All on right. morning, also Maybe just Great, thanks. Good

recognition. that $XX you one, just of run rate, Ann, I revenue million Another in the pro contribution terms forma think said, with revenue

revenue the million given of the for thoughts And Adena, mid-February, early revenue over about around will some the progress just volatility I we and introduce core add quarter or a Verafin timeframe banks, be you area to Verafin X talk $XX So should and evolve that that thinking to able if know maybe and being that about of base? with synergies around thoughts that might time, revenue trying sort closed to that's about you stream. then, gauge think a stability number the but how second revenue product X the maybe Tier teams to Tier long to that

Adena Friedman

go Sure, ahead, Ann.

Ann Dennison

Sure.

question, Brian. I'll So start on first your

Verafin revenues as If think transaction, in -- about the closing as adjustment. shared we part a about of the million purchase and estimated gross before and announcing you in revenues price $XXX transaction

So purchase we've year. going details the on to play adjustment the provided price over how the is out

what back That's at close can purchase apply a and that this XX take how $XXX the price -- you adjustment, million think date. you point about and then are on our proration expectations based out If February

Adena Friedman

XXXX. For

Ann Dennison

sorry. For XXXX,

Brian Bedell

For okay. yes, XXXX,

Adena Friedman

banks. and to on great to invest start introductions smallest With largest to really they are banks activities. all Okay. of to the to Financial invest the them continuing can want really, become really, Anti R&D, really preeminent with where we regard them business working gotten so the collaborating sizes, focus a also the sales off that they right, in really we've their understanding longer-term, Crime on banks and to already focused so on the have in with I Technology that say provider client in But and

X certain the their announced be support things that will we think -- and can As that at working do we we certain and we to that mentioned, that we them technology be to on additive investments with deal, have capabilities closing, their when mentioned we capabilities a just that to that as But that really Tier can make -- and you into as solution fantastic multiyear we the have we for a Tier we go X -- have strategy. X banks just is, it banks Tier them.

we've the some first and that think we a we to their sign then so European and X say expand. We're in to particularly help how Tier works. and it Verafin lend our with solution X relevant going had And are us them I for up into from is gotten banks with Tier or client had And inbound and that be Bank. allow able point to some detection to in go actually what demand solution Tier sales understand a of lot banks X to Fraud should

pretty heels seeing about we're just opportunities we're excited of fact the So on that even there. already the acquisition, the right

them rate the will with over their growth of good us support lot a to opportunities that see for term. we longer So collaborate

Brian Bedell

great. sounds thank Really Yes, good you. progress. It

Operator

you. Thank

comes Our with Simon Equities. Atlantic Clinch next from question

open. line Your is

Simon Clinch

the product that right first wasn't for market. just where just of interested particular because you're Tier growth case right. but to be with getting here, before I Verafin long I some signed market. understood for that the that their penetrate you it as right ago, accelerate revenue you to fully expect Bank, All the that at And for question. have taking to I mentioned trying point tweak that was Verafin mentioned X, it I'm Thanks European you able think X my of a wanted carry you've the a on product to topic still to And

the X as X Tier and So could for are readiness where a us terms product of of Tier stands you today? give it sense in you

Adena Friedman

Yes.

really penetrate think they platform I continue And of successfully. in kind banks. seen banks plus assets, solution those that what quite that have pickup kind really an that certainly nice that that they $XX billion full to demand for the sector they supports all-in have in full say a would I of

billion $XXX a of to are in come As to the of And offering. banks, with they've finding specific part the opportunities in do needs been that banks type really plus call offerings large of going of approach. that engage their solutions very have they of they relevant those a banks, like are starting and and and quite their solution large, the like in terms what of more to with point part would I a

what over we that So want do be to all-in to time. those banks able partner become to is platform

some out at. we come become really partner. opportunity holistic of term But we So very, platform if we're a that have specific shorter a real revenue nice sale then the capability that at more opportunities there will be may specific to of build like have a now company the can overtime think very to good European I that

the enthusiasm, wanted of the it'll just know, I obviously it there's open for And of to want platform a So that ability lot time for will can industry. that the us become take to a in sense be we make the preeminent and partnership. to early days, we us great get doors it's solution to but very that solution to entire so investment business across the get

Simon Clinch

predominantly need you disclose? legacy with systems actually and it financial Are me. banks? Okay. what us very that providers how And to the kind of there on detection to through the I'm walk seems sort are inefficient that, of of environment really sort from competitive you could internal just following space, that you like just fragmented at in sort fraud looks curious, competing crime But of

Adena Friedman

It's It's actually market a of a it huge It is quite right. is also things. fragmented quite, combination opportunity, market. a

billion about to that we're be potential serve able of TAM. So to you're $X at TAM, of talking I $XX billion think to that positioned $X least billion

growing a market it's So problem. opportunity. and huge It's huge a

ones And be in acquire kind work. of certain be there So of to partner banks continue that for respects, can it equated in or as we innovations in their of that all the well, of integrate or that to top should be rely will of on kind that make think point with emerge core all, our that, a needs to that we solutions other the manage the I upon that either of platforms I dynamic and first come some then position so there'll clients.

smallest is I of providers recent that that lot particularly builds. some So larger successfully integrate in or competes then on-prem for as the working they've internal of think the are nimble of more But very done there what job successful they to I end, that. so And a displacing core benefit providers lot the core of are is flexible, internal think small very been banking into point And which at of Verafin with as nearly also platforms, lot Verafin taking platform the as banking against. client I are there a of build, would these years, this the solutions, that a and platform, are platforms, incumbents the know Verafin that case. not that one as say very part a well banks, have our many is the they as Verafin has solutions nice of

Operator

Thank you.

from with Our comes next JP Morgan. Ken Worthington question

Your open. line is

Ken Worthington

priorities in in most when the new a in the for markets for Hi, from at moving do the moving steady leadership dark top what exchange. them? make so trading Does consider off in regulators sense good should communicating And SEC? lid trading on increase approaches emerged think seen the back We've markets if as the priority tools to dark your to you equity rank volume morning. with a exchange and

Adena Friedman

excited the and it's I market that think structure. within really of have that We're markets to the role Gary a have Chairman, leader to Great. understands Gensler SEC to coming great

So he expert. is certainly structure a market

it's In from happened of the I and for focus of trends U.S., of of Washington, majority discussion working a that on terms in piece trading comes of vast of a that the is of of get the and on a it believe it, this I the they're the to you and the to trading, comments some dark, around paper, like retail because when the that to the say like look markets in priorities, area dark trading back part almost a white be today go the so is do done already the XX% or the retail. it's think input the SEC, kind I is, at hearings is of in would thought When XX% and composition and industry. will a out XX%

at exposed are look bit obligations. the that continue on, this think, margin that me and about means It's focused they're for the one fascinating areas keeps best you that exchanges, to well, lid more of from two-plus-one some reflection will therefore -- that us are do have contributing calculation if and two-plus-two the that being structure is it's And clarity we we things just continue others at Ken, it go we interested. the make process I to So we displayed? markets great things improvements. the the of think focus cycles of and and us. things markets, as evolve. SEC -- little business. as to at we be several will focused that area important can people as how Ken, an as market Honestly, if margin look price an the I I eternal It's learning think to And we how the to a to So to to be giving half you of one sit the that of think orders look is have only and one those discovery to market retail not know, see the getting as as see so it's well to not evolve exposed discovery. and curve. then like there price But to to settlement It's say therefore,

are those off are positions way want The sale not like second and positions sizes trade but unnatural, just minimum that's to in be disclosure. to several that all consider. allows size like we market then unfortunate players, seems We it a that that the And have is would but things would that one believe successfully. short sizes and minimum third the exchanges just exchange that's compete on field And, or level of things us of one trying between tick is the and an not playing do -- structure tick But way that. to a on SEC long and and asymmetry. in examples disclosed

Operator

Thank you.

Owen Our question next from comes Lau with Oppenheimer.

open. is line Your

Owen Lau

should taking to and how want Good to and question. you please after then NPM about for sustainable private you. crypto thank about activity morning my in how we role of you Could NPM think is in the I back Nasdaq directly Coinbase talk market. whole go the the space? staying, Thank

Adena Friedman

hey, Great, Owen.

in And suddenly second -- a NPM the quarter. into in it first particularly the and quarter a became really an too. did fourth outstanding really picked great quarter. half, a great of coming and frankly, slow. and It year, picked really like second half, strong So as pandemic half, whole really we we had And programs now up have NPM year up in the activity range had really, a then gave got out, we us first the last

as more bringing seeing manage very for well some we kind them to of listing good walk of where base more liquidity their that them seeing public direct was needs as gave investor of to in that liquidity or and should and a Coinbase without into ahead are ahead and think they sustainable companies companies having themselves having bring position themselves their done the to that more could and that private mentioned, time, markets employees investors really NPM recognize public with, in are for the them to you way an that strong. markets private of more with listing -- a the markets, their of I long-term and way

into have so that encouraging a as increasingly we companies a as And business and of listing. think a of I a the we are lead relationships be good sign the kind our really using direct our would I And that markets for at private a see example how think for in companies.

I way also Coinbase. think if private the Private be question, would path. think And it's Nasdaq not to markets back they Market will IPO. the natural liquidity a that's ahead for good a into manage that choose coming then public space; case, that And more crypto the to is of the whether of companies whether Owen, or an on as their them I crypto-oriented

Operator

Thank you.

Kyle Our next question comes from with KBW. Voigt

Your line open. is

Kyle Voigt

think I seeing an institutional there's hear my first increase significant and crypto, more to financial into traditional in a just But Hi, time. opportunity directly that players thanks powering related eventually adoption curious stepping a follow-up is know, question. technology crypto you some large I whether we're the for think the to space Maybe just taking today. participate your some space? in exchanges to for

Adena Friedman

have the into in Great, a because the markets is of and it's this cryptocurrency economy we've come But that applications overall of the look thanks. crypto it, a very in construct way commerce. do that that is early interesting been recently with mainstream stage. up the ecosystem what institutional it's really to can The very could I see at become I that you're and tangible you're you And this in really towards until part some -- what terms an it seeing now geared and that's players seen retail. still Blockchain starting great, recognizing of now elegant think more really construct

that to into early product lifecycle and more proliferation really very early emerging. the early I classic of experimentations now early, concentrated seeing say but you're turned starting very, it's still businesses turning are businesses would So companies all into, turn lifecycle that's type where of develop to

with our crypto you path involvement so as been to initial out great. for us has really -- give in it our And figure mentioned, right time does for been the us that's our technology. And us

bit one that's on of several technology the their partners making for their with all concerns crypto fair has with around We big participants. markets surveillance the are markets crypto and and sure been are that

frankly, our technology highly had is so scalability and managing And trading trading of deal that relevant, the they've with. to they're

designed are scale. for systems Our

gives into investable launched the hopefully of hoping we've with Crypto then turned that products into we're with us a U.S. think I the outside that we real partner in also and really actually kind and advantage. partner, some And that have coming Index, So bring to that months. U.S. second a

should the the long-term how will for to some role great, us participate have do the in there winners, we ways interesting obviously, space. And markets of in evolve? And course, crypto evaluating marketplaces really terms So the of future. some including still what are But we're be? our great Coinbase, of developing

Operator

you. Thank

Our from with Ken question Capital. Hill next Loop comes

is line open. Your

Ken Hill

as had overshadowed good now, by for above here, a morning. I there, it. piece ESG. X% good that's to that's maybe geography put corporate of be Great, how what an of on Listing the I know you and Within But about Thanks. here growth by in kind platforms. that that how here and outlook within maybe ESG maybe the expect over up Nasdaq your U.S. could then developing services question would give your complex you targeted and rate seems time? well, varies

Adena Friedman

that encouraged would develop At that these a over And services it our least we're the gave ESG that we launched we years. Day, and generate to ESG is would by at Investor really what again, million view early $XX launched solutions. days. we've Yes, that products hope we've five of types we've at new doing been Sure.

years the think had you're companies. year, $XX that that ESG later, we encouraged solutions by of are And a great fact obviously our some sure, if adoption million quite really so clear. five we've I by But

actually have ESG incorporated into now. package our solutions our also IPO We

revenue we So And a of companies will we'll well. and more is this believe lot we that something is opportunity here get us as drive obviously more and that longer-term adopting that that today. think with a are and offer navigate do partner corporates that It's them future, business that the in making gives them help services decision corporate landscape. in want to the are to Europe. the the The we them they as U.S. to we this be and launched popular in have we as trend

good But products So we we've adoption really had say U.S. we've have, I more of had, in the already mature. would the Europe the it's in

and and other more. Europe, also And standard support cetera. et had bond our reporting, clients addition helping We've there's through to sustainable capital in in we so setting listings that listings more

dynamic quite one And I think So it's it's an by. space. that encouraged interesting we're

Operator

And Thank it for closing questions. that's we you. I'd back remarks. to all the Adena like time turn to have for

Adena Friedman

your very strong Great. you. quarter. delivering businesses Thank time pleased organic growth very And the revenue see to today. you in our much for We're thank

direction. strategic our by guided You're

have realize great you for potential on tomorrow. remainder updating progress a the XXXX, look day. as come clear of a to in thank all I and have reimagine We focus forward markets we the to you of of the to our and months

Nasdaq (NDAQ) 21 Apr 212021 Q1 Earnings call transcript