ICE - Earnings call transcript Q3 2020 | Intercontinental Exchange, Inc.

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Operator

Good morning. My name is Andrea and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Intercontinental Exchange Third Quarter Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. Mr. Instructions] [Operator begin may Gardiner, your you conference.

Warren Gardiner

and judgment and Good earnings obligation update XXXX you. of Today's ice.com. be call current third for forward-looking represent be the which quarter and presentation the we archived uncertainties. subject will to items These ICE's may release These call can replay. to are risks, and section will available Thank assumptions Investors morning. our statements. be statements, contain in found no undertake our

adjusted For forward-looking description that XXXX cause refer a In FormXX-Q the of could expenses, believe SEC. of earnings operating income, from EPS, supplement, business our refer the quarter our more measures and we operating our core effective risks materially differ and EBITDA. We those results rate performance. with other Form to statements, including margin, and to our debt-to-adjusted non-GAAP cash operations reflective XX-K, third described are filings in please to certain our measures, tax income, non-GAAP

find Jackson, supplement currency additional call on items. to Chief is Scott page Chairman constant When Sprecher, growth equivalent and revenue to now Form basis. diluted Scott. and Jeff used these turn call, see our refers share. Financial this Throughout to the definition are earnings revenue our to the per earnings to XX-Q. CEO; over the in today how earnings refers in revenue of call otherwise uses unless net meaningful, details net the I'll we why as on notes for term the references this second expenses the Officer; be transaction-based Ben and adjusted deem Please management President. indicated GAAP of reconciliation the of explanation regarding certain on of materials us adjusted to Hill, our well this an measures earnings as the With You'll a explanatory information on presentation, and

Scott Hill

in return million today. XXXX, performance, months the from And operating record record of $XX and of I'll joining everyone. grown shareholders, revenues, highlights. nine business with enabled adjusted record capital thank our XXXX. $X.X prior importantly, financial adjusted begin of This extend on generated than XX% you quarter network morning, in X us us through to our us invest per year position of some to year-to-date allowed we've for mortgage our Ellie have double-digit a and to Slide which earnings first over year and Mae. million share, all third Good Warren. income record Thanks, the to solid the acquisition more Through

For in quarter, third services Trading mortgage an totaled forma year-over-year. versus increase quarter we grew Of $XXX ago, net revenue and revenue pro revenues of quarter the note, Ellie X% a a Data revenue revenues of million. on the forma share basis total per to billion. prior XX% the third revenues while third our total a grew net ICE's Mae for year pro record on $XXX grew generated Clearing of versus $X.X year. million $X.XX X% earnings

Total Third don’t we expenses some have operating to Ellie quarter to related roughly in expect been million million $XXX repeat million for credits if Mae. expenses adjusted subsequent totaled not higher $XX quarters. including $X would

million. we with back expect will IPO Ellie, to expect we of app. quarter fourth accelerate the robust into $XXX move the million million Combined a in expenses operating we and to finance expect around $XXX a $XXX pipeline mobile As quarter, million quarter the consumer fourth full adjusted to expenses of range we related $XXX to marketing contribute launch of which

markets result the I'll oil Saudi attack market, where a third the In field. across of Trading lower energy were quarter move the to our provide Now which last related performance our September an resin our of revenues year, X, commodity segment. largely of the overview of and on in elevated let's to volatility Slide Clearing

uncertainty. equity interest, trade open is rate up ago global in comp, indicator reflecting nearly our revenue, mitigated index which year financial all-time in our believe revenue or and global versus is our energy interest were a Within X% lows. however, lower of active due which is futures near was by at the year-over-year. This long we Importantly year-over-year business best currently term lower-levels to remaining half revenue of increased strength rates metal financial, the interest of strength also continued activity

third $XXX our digital Ice Technology the Moving mortgage attributable and credit including for were versus totaled continues by strong mentioned buyer quarter. Revenues trend quarter the Mortgage a $XX in basis, million which quarter as Technology builder business, the to forma On Technology, to year. to I fixed Mortgage pro third led income demonstrate Ellie last segment. refinancing third Mae. revenue XX% $XXX previously, increased of million solutions, the Mortgage Results in from of million totaled revenues and adoption

we new guidance integrate to information As intentions from helpful and early Technology investors February and forma in understand to will most evaluating to new metrics Mortgage our We we're in our discussing continue pro segment. the sharing our Ellie December. forward to colleagues segment Mae, be with that look

be rates XX% we of of trading that million, on representing a Ellie roughly midpoint For weigh pro on the business, advance basis. range expect retail million at quarter, currently continue Mae mini $XXX interest the to $XXX and to low activity. forma In heavily [ph] the in fourth I'll to our growth year-over-year not revenue

still institutional effort while days our though, early progress. showing is Importantly

with our portfolio two During largest to the the offering. interest sponsors continue EPS trading utilizing in now we third quarter, of our see service institutional

to greater of now EPS ETFO institutional best bonds across our continue will Of network product believe to be platform new we [indiscernible] income. who our income the We data ICE lead trading business also with and serve protocol has ICE add services led responsibility will ICE on have integration business. better network fixed our initiative. and participants by Lynn which fixed our the innovation of to to will of next completed note, integration Martin addition, position that unmatched additional leads income phase bond the execution of In our taking franchise

Turning Slide our to X, and next discuss data listing segment. I'll

data quarter from has analytics and in a was totaled in revenues $XXX Third quarter. again X% for assets driven and million business, strong services $XXX the as Growth And the fees, revenues of our as our pricing continued offset the was X% data reference our continued ETF which and customer products in and strong Desktops once our indices. was over increased data data industry of connectivity in as our pricing futures of ship growth ICE well our billion consolidated tracking X% record the and now suite by exchange year-over-year growth increased network by index demand growth share and contribution revenue X% documented in the NYSE trends at year-over-year quarter NYSE. global in business by reflecting grew exchange and feeds revenues. slower

sequentially Looking million. pricing continued $XXX includes to and quarter, we decline This a the exchange analytics. $XXX again expect in data sequential fourth to data in acceleration between to by revenues and million accelerate services offset

ago. up quarter which ASV ago reported the and two Our quarters exceeded quarter, fourth accelerating entering by X.X% the from X% growth in expectation X% is

a guidance the billion our X% result, of to total full-year above revenues midpoint now in $X.XX original roughly higher As are data XXXX. and expected services than

established have customers. drivers products it our of focus offering their Their of team. the significant and has are our to the to serving resilient possible performance not in success been of the on challenges commitment but million of The this $XX proceeds. our not in sales our team entering importantly the momentum our native breadth our of quality and XXXX. Shifting million $XXX XXXX, Despite global productivity million. critical, performance, total pandemic, third listings strong would the important capital revenues without quarter, in been business, more and IPO While the the maintained $XX only of third rates has quarter our NYSE perhaps including totaled

During the on the the closing compounding enabled our related technology Q&A, growth in beyond. we've IPO bottom Stock value of us expanding since that [indiscernible] first quarter, Mae, extended business. in nearly XXXX. in but XX% strength to the top the which line New our to all customer I'll questions first adjusted raised happy value our the was sector through Jeff. resilient mortgage proceeds add strategy in also shareholders. again diverse and is the our in data to income, our once Exchange as to growth our and revenues, I'll remains business, and of acquisition decline business now, and to of accretive in and quarter This model our delivered Ellie operating accretion technology has invest note technology returns where EPS we've serving network capital and focus across our of success hand NYSE continued The take your reflected business interest open offering It of I'll month during and commodities and XXXX. in continued it the delivering months be of York with mortgage our nine for record fourth its XXXX in and the

Jeff Sprecher

Thank to on morning you, call. everyone Scott and good the

ICE As I begin, I'd earnings Mae Ellie to the call. their team welcome first like to

a the our I by off value Ellie that integration Technology since Mae between less thrives to during talent into been aligns early we as very fixed short our our am been bring to believe to of is efficiency by cultures. time the of testament collaboration with a Ice and proposition we income Similar strong the impressed a customers. this September, entrepreneurial that respected exchanges to our gains two that acquisition I I've this it's Mae integrated and months start. in population closed growth teams than While a on network the share Ellie our businesses, in the is Mortgage offering confident a that employee of network,

admission these information information, seen our data of this often equity unstructured through security. of best are it's print we've efficiency technology harnessing that businesses digital are a applied futures, and As in highest linking over all proposition for execution participants the income, and and that blue network the industry value to create across two of ensuring It and underpinnings is decades. propels to quality we've to gains fixed across analog seamlessly our critical that of and the achieved that conversion an network

of with Brent energy further average X% average annual our September, result Slide of growth volume In close over X% our direct up and to continues up XX%. to Brent revenues our network. were X, continued and the are energy growth natural oil across of daily a in up their of expanding in nine by business through is customers, X% markets, our through flagship our to and currently as our essential emerge global the in XXXX, to understand now of growth the first since evolving months contracts content in crude growth natural year-over-year gas particular, revenues breath open gas. TTF needs, This up we natural which of energy LNG offer XX% total benchmark, is our that led growth revenue Turning interest contributed XXXX European staying the of gas

environmental network, the In Brent not continued environmental energy trading a in on markets solution, up we contract disposition capital global our cornerstone markets up crude expanded trends investments, energy are have addition, comprehensive gas that content XX% investing or one evolution of With and of and globalization third delivers product any growing The natural region. markets. year-to-date grow to we grow our the an over our that with ago. the our tied we and our to began as organic of continue one and provider a X% efficiencies and of decade the customers as network quarter. that Instead, today offer result of serving in oil we've to revenues to range is inorganic management to network alongside adoption of risk any

million volume. like what workflow digital distancing of in the year constraint rates XX are themselves origination order social income ability our address ago, pain our Technology the estimate we is points automating guidelines lenders US leading are equities Critical comprehensive tools, to to through in from residential Amid market. and market work levels From applications, is capacity some curtail an to and a commodity data that X, to artificially these the inefficiency robust on across analytics uniquely Network of way sets, with the $XX in mortgage solving futures, occurring is constraints that there pain this requires that workflow combination Ellie origination customer any mortgage Slide and revealed conversion and Mae positioned US even cases addressable to many points. offering execute interest technology. acquisition Mortgage residential analog now saw market. these network, efficiency the the to mortgage ICE and in industry. one year all We richer this is a has and finding opportunity many exists stands flow in capacity to record fixed secondary Turning years high across mortgage for

packaging early bring services product. example, unstructured mortgage track services to Mortgage mortgage ICE on our cleansing mortgage By to wealth sets Technology combining in be level. with soon able a of expertise database, an data more in collaborating will our to granular sits ICE first and and teams emerge data our are that As data data a market our customers production and data analyze our trends ICE

a our such become quarter, our data, ICE, data, for creating, that seeing example plan the all efficient. expertise The consistent has Coupling of XX technology at Through force, servicing quality and and straight understandably analytics, competency are our and acceleration its guided revenue at registered conditions, data, indices helps as our array more of our high nearly data manage types from compounding Turning now this record that business. we're business and classes, the raw our unstructured when resilient transact, proven and information which we an productivity erosion, platform across through peers the our across XXrd these economic analytics competency be growth. having risk consecutive our X and of year-over-year growth. data of of ranges a building customers been to cornered time is our asset of core to sales please, to and years connectivity database challenging revenue of with organizing track to have of MERKS some Slide a Deck solutions an has

growth. XXXX, months Turning to delivered per nine adjusted of growth, Slide revenue XX, double-digit double-digit earnings we through income share and the operating first double-digit growth

a I growth As deliver mentioned we environments. in to last have for ICE all economic vision quarter,

It's asset distinguishes that has far, our our industries. class been that. of financial us this XXXX also So vision other numerous Each but from example peers that companies from operate individual services an excellent not outside only our the applied we service, can mortgage digital responses offer whether each to help of it's stages in more asset mature classes. across our conversion businesses, unique or fixed of and be early income like that insights improve our that

the continuously the applying us over enabled we It's a become XX has we're expanded our to to as proposition knowledge we've our And two As in more this decades, that company. to approach networks customers. each last value knowledgeable. public of enhance that grow to years our

stakeholders. these about continue record the navigate and growth of XXXX, to excited participants year, growth customers of for opportunities ahead earnings for times, closely help we're track work of lie we excited creating industry So as them all this that value key balance to extend our our with in and our to while the

our at customers this for thank like like results. And the turn also their strong ICE our our quarter now to colleagues to moderator, call quarter. to Ellie I'd contributions our trust thank like third question-and-answer in back for conduct Mae. new their session to So my colleagues until to Eastern I'd the to again, I'd X.XX their business from Time. and welcome Andrea, I'll

Operator

Sandler. Piper from Instructions] of comes Repetto Rich the our of question [Operator And line first

is line Your now open.

Rich Repetto

And But at guess the to the chosen you you're diversity fixed how guess Good the Ellie looks break I thinking you good more are, more some Ellie to of sort the And anyway, business morning, here just haven't your And my inexpensive know, report importantly, I of a guess of your are so I versus results. you’ve guess given why Mae, the about valuation still looking how now? basis, morning, address, concerned I of how are segment the it much patient but you I you on as to over acquired time? be Scott. Scott diverse given some over out? stock will did parts you Jeff Mae, and questions income. parts to parts? got the acquisition you some us grown

Jeff Sprecher

Rich. Thanks for the question,

So now our Scott visibility we're investors a to, and thinking you a where on revenue we're our you've and the the better for continues thinking network how you or the have us network mentioned, across run since next network covered and the you we business. we we're of many Basically, job and as next years, running that first thing compound look for do additive so businesses presentation opportunities alluded into about to that as think, product and as to I network going everyone to and and that result. becomes earnings customer businesses, growth run know on

right business, is are open or that's interest really growth you we're when markets so futures at a in the commodity our And signal now, to contango, feeling X% good year-over-year, the future. revenue volume up business, and if a look in precursor normally

very, way very is the performing. business that with we're happy So

look in fixed subscriptions is revenue double-digit If those and you our income we're business growth us new combining you as network, for look which accelerating future in which other indicated businesses. at and at if is and data compounding it's that we’ve of you, business, growth our with and both still transactions, our in ASP, earnings you see indicator and mortgage assets, the

have our that stock quarter you will deliver found that as And of growth the like oriented have remarks growth. find environment. people space the that world two that and many is catch for rate we're this that that's including in to of acquired that Many accelerate normally up are growth in that appreciate many don't the competitors that prepared job gain, in mortgage to global that we that to that and all due positioned Ellie gains we've mentality, it interest mentality result don't So a a the team since where end company people the and is the we competitors going shows EPS and continued we're to has the graph XXXX. we've and futures running months, the to well that beginning my have of of just management how rate earnings we business. around long-term the that, financial the to growth to space able share has struggling segments in And that the they're I be this data interest fourth are the reason been footprint market on the are showing the to that

So those well networks relative that time all And we're apparent positioned as peer very will delivers bottom I over are this management team their results. become line think group.

Scott Hill

XX% just catch later a ever as been in program, And every two back worth our to XX% has eventually repurchase more value demonstrated later more. been years its up worth interesting bought that has year price share we've XX% and

And will back catch those you history up. segments I early remarks, the December so from how will all to that segments XXXX regards help. we look prepared give XXXX, with in it year-to-date. do does in intend as some new and to I And my think mentioned and

you'll So information Jeff as that said, And company we'll in the fourth quarter. that December. the way have early that present

Operator

of from UBS. Alex the Your line question next Kramm comes of

Your line is open.

Alex Kramm

Hey, morning, good everyone.

one mortgage side. quick on guess the I Just

also It First know pretty small robust. in but Ellie month was it's a of I initial better all, XQ looks think number. your a expectations. than came only I

I related So What that? forecasts think the Bankers activity Association about Mortgage revised for to are their year. the seeing but recently just curious you for near-term next outlook.

for curious I just on more starting or just your early if you've out? year but thoughts? you're it's to latest outlook about laid curious bullish get know next So the that comfortable days,

Ben Jackson

Ben. I'll take it's Alex, that. Hey

progress only we've the group But assets. the a a our share It's interesting been we've mortgage a front, number of I'll on together So since business. share months the I'll with you. closed to couple on on couple pulling of things a made things one, of couple are ton share of just integration with

we what able with we So very one been the very business, well, with pull doing do business Simplifile. knew operate quickly. to enabled And that them as a us Mae Simplifile the we've the Ellie Ellie together partnership to to businesses business, prior merge and long-term very, this Mae those to because transaction, as had

evidence we're do, on those needed had boys to the view in have currently, quickly buying, business transitioning get so new volumes vision we you're single to low, suburbs, made are single a to executing more be give seeing cities other decisions all into what homes seeing to a were out room all So kind are able Rates organized that September, strong. purchasing that make good going got I'll all of we and Two Millennials made are the people the get a that we well is to you pool to of publicized, strategy. announce mix. were against to get we're now the we them space to points decisions and

see way the in when a applying earlier process the of home, that somebody rest that things appreciate for people view forward that interesting And on market. the all not around days of the refinance, the also XX-plus we what's have purchase upfront many space. in because origination is new of One Ellie see for a of we we're than bit space, a application we the a is happening or Mae original in the

is say So this continues that the be we we that view platform, that with could going this the volumetric opportunity what business. firms business our see trends, just we what aspect transaction, from so had see It I those strong. on to of the into

I'd an on thing and most to he answer touched Jeff important third The that had. and the just and just point thing, it

at results. I think subscription is to look thing the our sales most important

our And artificial engine would AIQ, their view in The the has would space, analytics year. those already of a important the that identified seats reason we're is they say So numbers we sales that it we in be, that subscription the sales as sales hit, TAM where intelligence business called the where as a the end we going have helps after to Encompass share if thought that's the had year. you hitting modeled view of to would results, that can sales end be. what sales weeks, new this last I firm assumed would where of market view growth we we couple on that's subscription of

market a continuing of more gain and It's users, So the network platform. this they're pulls volume. all They're more onto stronger gain through share. to continuing more revenue there's to recurring customers, additional coming

So net-net original seen of two is owning everything in that business the really the our we've has firmed views. months

Operator

Your comes line of Carrier America. Bank of of next Mike question from the

Your line open. is

Mike Carrier

Good obviously Ellie apply more an for the morning, do area, more you're in importantly, you given taking as of on given and think and area opportunities. more meaning that the kind close the you it's doing then revenue the the of provide still Mae, factors when thanks opportunities component, different question. any in ladder, also a At work can And terms that growth, components the the you you of on get growth just adoption that valuation volume other seeing, update And least one but more and maybe the over bit the time, about market? work more of or more credit, have important. in you little

Ben Jackson

$X Hi, that TAM and bunch billion through really closed of Mike, And the environment business, any closing different ability There's announced in capture grow one for business that can when well. our we the we that deal you space. what touched, we see. this to a post take Thank us your on volume growth this as question. Ben. which conviction for I'll it’s opportunities gave in is whole this

any So that's to together the that where for the digitally connect have creating mortgage. on we're closing tying room network agents and to we settlement the underwriter across

last on go we more couple figured one. I detail I into into under that because others into So a go I capturing a are went of that lot lot a we’re I But won't that time, think appreciated.

just in in identified $X processing. results front just we’ve of billion And market view are that we've businesses ability that the process, very and that And our I gain obviously U.S. that is of mentioned, the and there, to almost sales a just positioned us there's TAM through as has we're space. the to just origination in purchases. XX% seen touching mortgages refi continue on first coming share So firmed the well

The U.S. is the know network. second appreciate our really the that that business, the don't that thing largest business here the I people and really TAM our mortgage And processing that about network has that fact in that is in origination

interconnect XXXs lenders. all those connectivity exists. utilizing XXXs and and the there's receive is this service can from underutilized. benefits it's And well network we over lenders services that very third-party our of from to providers And yet, network, themselves providers So significant buying established, that

off of ordering that network types lenders the it's from benefits So very get efficient services process. of our that is a

And it, comes things can that is digitally that to you so the order you're content is If you, report, that workflow can third-party analyze order you move consume and we sent the services, because can all you to is of going process from system, Encompass all that the you automated, easily can flood using in to it around, when do you of going credit a you're more importantly, ordering know automated. third-party that order actually with a report, it. you're it, when

anything of procure select The and documents, network with vendors, of manually have that of the going other do have you steps you the you'd is with, services back really the information. ordering way go outside to scanned to manually extra have get can't PDFs, out you information, rekeying have to data to manually you're

and benefit we're providing of today, starting for network. seeing as And that this we're part, And vendors really benefits third-party lenders the us the off that this that. that the to revenue our the for as a data accelerating see we're well front starting substantially. we services receive to opportunity are we're ordering is of part these of that benefit share So providers, capture in providing all it

a is data what few on since against questions billion $X and one a The against analytics executing is we're on deal as really announced that what today we other and had analytics, to And focus this we've here we've the I'll And piece touch another want identified side. TAM. on this. I

$X,XXX. is lot So manual origination we've we've processing be fee technology that least technology and studies $XXXX year more. done that processing and reverse a of time the XXXX, that at that around an In less that be $X,XXX less than that would costs almost that would estimate well somewhat average manual $XXX. are costs identified Of you'd think the that just

call we're applying on compare that report have products credit actually credit capturing had loan, a score is a of qualification be we of simple was when the that report studies could the a about This those date consumer approve be analyzers through that is on in Ellie processing that go away talked accomplishing to for the is that you're report what least the to report of it showed Well, to process, documents, just work lender that be time within and lot security this most the for analyze birth the the extracted. AIQ at dream, that importantly, and recognizes business that data isn't numbers on years, today happens. automate to credit for. documents individual looking apply goes matches. executing we're should automated that that at the Mae analyzers The through make for expecting half that the and date to captures and of social the tools And manual business lenders the that to TAM able so take data, the credit customers of our Our window that that can stare matches with it criteria today sure the match, the acquired this last a and this. Capsilon couple that called we $X,XXX and

sales we're And happening in seeing space. AIQ that happened is of this up data significant picked platform And that this and business, through months in analytics just existing have on of And capturing, two customer it we of year from our it's coming a we're opportunity. today. the owning growth the these base. last getting the that capturing analyzers this opportunity and in All see terms already we're

growth that for I'd focus going business. to other two areas forward those So areas new say this are on as of

Operator

Ken of of line Worthington JPMorgan, line question is next your Your from open. comes the

Ken Worthington

my I the Hi, terms seeing service if morning, much. should away LIBOR? first, away to remind there's you in grow can about transition just to SONIA, looks revenue, either of we're expect to data? on your this And can good Or from be there's revenue? from don't But like LIBOR in thanks talk swap this migrate and this you in LIBOR or any we in grow further terms transition to really pressure a data impact Maybe question. Europe? us think from the really, if for there's U.S. It opportunities transition benchmark of any in Thanks. trading trading taking

Jeff Sprecher

Yes, it's in a good question. We're right, middle transition. a the we're of

timing this bit will, So the business issues a the obviously, dealt transition fog, there regulators in that you have there's underlying of lot as are to to with a of pushing. of transition. if are But get

And a So business there it's to The than to that after date trend as to there. legacy does hard pick us a other couldn't is up be that to de revenue. index transitioned of is order in as long an SONIA minimis final the is move survive industry LIBOR question the a how know, may for over. sale just LIBOR

share market with time which trading futures. what And feel this And because And, based where is are very, other provide So, where LIBORs way, LIBOR make so comfortable trading so around the there beneficiary by simultaneously many, that very we’ve probably there is, be the and LIBOR time. to be hard it's our bridge pervasive trading The for getting futures north the lot being of it's activities SONIA all we're based positioned of by share know some the to is comfortable LIBOR SONIA has for SONIA are so a world. some but which side we and is have a dollar other LIBORs of transition all market very our strong, there XX% were in of are the and same if we'll as net agent actually they confident well. calculation LIBOR trading survive the issues. to accelerated made, with a that able time, and side two market

Ken Worthington

-- a anything swap ultimately, this grow way transition? to the this really of There's But one straight to it's other. grow any from from not

Jeff Sprecher

are with necessarily banks mid-sized a not is or the really discussion that area small swaps. and Well, that that of and covered is the under products hedged range is the whole one by regional swaps

year in worked the seeing and that agreements have it. set there widely business having a see on in can is swaps got, institutional what rule go how they're game to the with so up that that word market, you you're they've are with have market and industry LIBOR that people the many not transition come common of plans, the XX small in the And sort that up and coming but with dispersed

LIBOR there if a certainly have see work for be based doing points, so, to at viable on the happens. broad we been on that and weekly, have academics analysis. is been going from away alternative publishing of that of that a be publishing white regulators, on, we not possible for And is least and working or create good transition the have we're should SONIA to published, a it's Index, environment. or very try a the it adoption which it, been a daily people arise. more now data the so a that'll very, credit called if how industry Yield that have And alternative, that been papers accelerated LIBOR there it needs to credit part benchmark that we've underneath could by to tracks But to up an industry need way we and in to developing Bank doing, on space, And lot have the very of we've

Scott Hill

decline new. in And not transition transition of you as impact definition interest old a make seen as be the moved one, and of everyone's see into trading similar contract from that is to a about quite revenue. the news different near And to Ken our you’ve up the the you us point, for X% historically, one tends rates but only good you the

regardless. So impact small it's a relatively

Operator

line Jeremy Campbell comes of next your Barclays, of the from question Your line is open.

Jeremy Campbell

to TAM Hey, Ellie's the that Mike's mortgage really the and question the fold. of good opportunity little solutions from growth. around thanks. suite Maybe gave now just TAM Ben, around the in to some end-to-end earlier your color you a follow-up capture

whom at you with either holistic to like are properties now, be right solutions any inorganically, there augment make available, out to a that you any a build your you'd bolt-on that land or could as look additional ideally if be have there the the or within guys for to of sure don't the data and mortgage not wondering, to just but whitespaces, analytics There currently solution originator some sell. fill product compelling organically might to Just additional that to LinkedIn seems fits vision? in little your partnership more

Ben Jackson

helping process, about of with, assets the and doing Thanks, Jeremy. with interconnecting from say all And part the do we are agent, is have, aspect that good consumer loan the feel and your electronifying out single customer of lender and the chosen going it, the originator the I now at, close. touches way we're a and our we about and there settlement literally the as individual that the digitization to between mean I that all to research every documents, systems that and the we to the what thinking you're they've that point you origination alone can position touching sale that to network engagement automate that

the we So all right pieces. have

and making as thing team the we Mae these point of got quickly had on bought, when did also businesses the mentioned, And other creating very the that with out work integration we're room, I'd Simplifile all pulling to executing that forged of get that predated we operating I we didn't very, As start is the talking sure one. that very together, that back closing focused we them started early a that. we of and that. very, lot mailed And on relationships Simplifile partnership the just the now. about digital the a of networks It in Ellie with just

think lot a that already I network the network an underway. little in work origination So as we the is that have, U.S., of having this earlier, All in mortgage a I is had mentioned that largest how underappreciated bit about strong space. answer said, it's

what doing, bolt-on third-party we our opportunities growth of with more is directly them we business for the And a by evaluate quality would position well for services entities that So we're our us in accelerate part a we position, if vendors the there opportunity we having see unique they are what that also that the that bolt-on can of as think those. provide.

Operator

from of of Please comes Fannon Dan ahead. the question line Jefferies. go Your next

Dan Fannon

came data your on it the Hey, guidance. good is question in My business, morning. above

Scott, you expand about but talked about longer upon talked of on and is was the dated some prepared your in you've strength the remarks, hoping kind You of trends time terms outlook. the periods historically of where from could I in coming it

look So maybe year, that give if a could next you is us how into business trending?

Scott Hill

the question, for thanks Yes. Sure, Dan.

like be it's that's held meet their been or limited X% face, still said productivity prior-year, X%, I versus travel I've you'll grow revenues again X% which the really fourth is likely the and else, XX% it's the ability been to world was fourth So terms each happy the one has just accelerated things face XX% year, even like quarter. grow achieve of growth is And on objective. I track is level quarter. And knew in in before prepared grow they're of coming what to they're in our activity sales going markets growth to just into has look, retail a it, a with what SIP of this signings the business, in think they've year, in I and COVID the going the the X% that. around will to to beat quarter, that was year significant in February, this cash mentioned the contributed remember analytics the will equities But the crushing has that remarks, and I where everyone been team the to couple to quarter related in pricing clearly, as my in to

or feeds is people data need, to business it's whether of phenomenally or shop factors, our if can more be network vendors or can that consume people a all we continue lot to day consolidation So their And of one of of stop that, we a in it's sell. for our doing happens, prices, as well.

$XXX billion largely our index I now Our track fixed prepared income in worth remarks, business, we're of to assets indices. my that mentioned up

then and is ASV that it's point business ask ago above XXXX. I you X%, so within. So about quarters dollar while quarter. to you you And happy I will an and the that in and higher trend And give analytics guide, will that two fourth pricing I'm was now X% won't

I into again, that's be tactically as that's And know, we new future of so mean the ASV revenue. roll today our forward that as segment the XXX% me, you of revenue view will to XX% or

growth deliver ASV X%. number so between and up set to sitting very of says if an That got next well type revenue today, you're that X% year. that's you've And

added lot this new to And year the move office, So I an of join where we folks. news, business, productivity of had we into the been feel mentioned aren't hiring up from very team getting without part good a team means were growth speed people hiring. though performed. opportunities that really they'll the in The about the fact the that a think us of has us we a world boost. good that we year, also that about into the higher has saw productivity at the good as the can execution coming of into good year and those a next sales levels, done we've and very year we've in more the how that give is challenge. But I

right is good very not business but And the that So now cylinders. just all quarter hitting XXXX. about on we fourth feel about

Dan Fannon

you. Thank

Operator

next from Your the of line Credit Ari Suisse. comes Ghosh question of

Your line open. is

Ari Ghosh

Ben, thus the color (inaudible) business everyone. just morning, tech good another Hey, on mortgage I guess far. one

But the to that the of from in tailwinds structural space the contributions of capabilities network and already So the really larger one. it seen day of some nice talking growth sense clearly digital of as competitors profile, a been makes as deal the the well. lot effects basically also strength about and have from

most hoping you your else versus some where structured talk flow differentiate? book looking from or digitization most areas just it more areas differentiated effects, just Your a you see the you’re is data side? network larger specific the something of such about effort we're So players, could to little on bit is the which

Ben Jackson

way ecosystem you the the reflect where you get say of of market through shares a I consummate the the need the all I'd far between market have, assessments the have, stretches just filed to largest network shares, we're all we the to at is and strength by industry that inception for areas through Sure, way I transaction businesses from all have a network thank of the about enough mean the at a the county different think your origination, from if to to you those closing. look you that but entire major that. that documents and And about that seller. thinking way inception the stress can't the buyer of loan, courthouse that

network, foremost, the lead that have a market we big used so only underneath strength of the terms by we side very differentiators on do have that and major not the first in the of it's of that is far origination network So phrase one U.S. post the they we paved the out that up also the trending, and but Simplifile to that and with Simplifile road. MERS. the space we've and closing close like assets to in in went loans touch a getting closed XX%,

Attorneys with such the ago acknowledged that Ellie transactions that is the and and out of to hard network, So did and electronically of thousands strong went close that transactions. Mae thousands that entity a in the agents and years closing middle really settlement reason network thousands are Ellie real they partnership of literally piece had was they the only highway, Simplifile, Mae of counties The and realized few a network not a digitally and the digitizing digital that did of a the work that to connecting a was have, in digital estate did and of middle came Simplifile. the flash U.S. thousands around are

under is appreciated very underneath unique of sets business. that that So that's other are I'd that's we within differentiator, lot the data the have the say that network, a the piece, real

requires, what it repository knows just what So can all fees is are network every the use the exactly that settlement information, in for U.S. the very also that that speaking package into digitally getting including that loans versus every of agents together in forward about and county digitizing about by of and one these the counties, process of the things it. the in real early And with the that has it real to a are earlier, that on and consummated with particular pull errors are, I settlement what Simplifile be sharing that able these only origination type requirements estate, transaction, settlement to analyzers that origination closing what pulled compare, processing all substantial on settlement U.S., information has then the of of transaction loan. requirements that the the information, what's a amount the estate sharing that happened it this you reduce of in the real by was

highlight those areas substantial we just differentiators difficult to others two starts very So are main that of as that replicate. have in for the would head I are

Jeff Sprecher

join competitors our and co-op that network and open, business, will, and others parts along growth many network in opened our Jeff one in so network about from use a you it's the can view network, our the putting because to network you the as all of when because the the think beginning Ellie chain is partners, petition, we together many really the the and our This to certain with network services Mae to was of And that of that at about we've degree their that if you order comprehensive. things industry, so or of existing very offer these can entire network, benefit the industry. we you as is tick-off, that we companies liked may started

is very share said as is completely slide So compelling on per land final earnings that I’ve goal grow crush and on our we competitor. not that really, to just every to really the model our is that necessarily

Operator

Bedell Your Bank. next question Deutsche comes of from Brian

open. is line Your

Brian Bedell

Great, thanks. my Good questions. morning for folks. Thanks taking

question know another on one But is bigger on So one. missed that outlook I on just don't rate the if the of for one business tax mortgage XQ, quick course. the cleanup I

importantly X% thinking even for just large of TAMs if the on And I growth XXXX next I elements the you as you the but existing using processing XX% refi think you've out and the carve the business organic it headwinds. first I year, using all, be side, contributing, obviously the be of that organic Just reiterate growth Ellie different from Mae also that devaluation. from those two past Scott we into more think then guess, can sort the should something would that about the business, growth do with for data, how in the guess And to that about stated you growth network? of customers definitely would helpful segment, that this about organic that in talk and or

base the that. isolate And we scale then cost outlined to So on you've that XQ. that could ability for that

scaling the about growth the business XXXX. give think on of now right on So guidance but What you to think base? specifically cost how of we not mortgage should that expense that existing

Scott Hill

so and think three Right, I questions. that was

to tax So be rate guide. XX% the the in will XX%

been that's revert third for the the XX%. to than other consistent we So had the to year as U.K. back quarter

subject we Ellie in started now back the XX%. But on similar expect sense do from margins of that'll to to the fourth where and I is see put businesses, a a the whatever upward based don't quarter incremental think where this first, number our year. to that move to the kind Election. XX% away we’re and business, the other it to a of would about in Obviously, mortgage reason the will making good So things I in I'm we happens expense right to we place the modeling, we notwithstanding, the of that, a that's going go generate think be even scalable as roll the I investments. we’re pressure you're like tax rate, dollars incremental is one business of U.S.

answers As example. room an to his on building regards be with Ben closing as one alluded in good really to

couple looking at we the you you're if as and account, rebuild take want you the to Number quarter, to think need use I purchase if rate. one, And things to that labor. cap have for of accounting, CapEx a run into fourth so

next making run of to And said another that the should that. top months the X% but we year, And we could the deal throw of be I with then XX it was to importantly, business per probably on XX would more that ago rate, to not grow so only XX% grow XX on investments, two to thought call, a going you business we're decade.

it And that notwithstanding make X% the do line, that that very math, the it's you'll be going I to you investments fourth will to be so again, think accretive. we'll and still bottom accretive see quarter some in alone,

that's in bit still back were, side. We of on forward. day our to improving know X% just So revenue mentioned industry someone a but to, alluded good Ben I we'd say XX%, move we a assessments pessimistic. line. in terms refi earlier closer of the said we improving, feel that expense to the expected kind in today little do that already on that they're to where were all those for the we the questions go whole estimates lot the be more don't reasons is to I going about really the tend the as an we guide that

a color months why was investment. of right the it again, call Ben the we're only you has with this the and from on deal. given love So, absolutely we we all, having lot two why And closing business away believe

months as grow the two here I still confident way talked so today, about. we've that absolutely later, it And I'm sit can XXX%

Operator

Blostein next from of Alex Sachs. Goldman Your Instructions] question [Operator comes

Your open. line is

Alex Blostein

some hoping I of guys's credit little you we revenue So evolving maybe the integration or Great, gears end you thanks. a sort full made was there Good about months of that bit towards today? XX next the training a talked what's think think morning, over do business. kind I believe on contribution trading about over so talk months? Hub, some from those of venues ETF year, last XX guys touch can the a you've businesses overall and bit. I about everybody. little of because the investments maybe the Maybe acquired? your you guys How the some between shifting

Ben Jackson

the Thanks, the that's to re-segmentation And Alex. Scott business giving It's color mentioned question as on we're of of earlier the comment more in had the first going the half in will Ben. that that when around December, continued the start making space, has really this. three of institutional to on flavor aspect we're you to revenue One give it, of of legs the question, part side it. of just your strides on strategy the some other

So automation lot, redemption, project. a which extremely primary crazy, that's which trading first, ETFs that like is ETF in space the that's talked complicated of about we've growing area manual workflows Hub creation of a our is

I created second strategy and of ICE was ICE of to pull it's an Select what aggregation of launch about we've last protocols. call is, earnings leg Select The on the together talked the engine our all that our

also has (inaudible). ETF to we've and together piece our call The call last last connected such we earnings progress also, made also Select that the the today execution our that content importantly, closely since understanding that data they're that utilize ICE the pulling analytics pricing mentioned now third-party earnings business to to we've systems, is auction the fixed our of been connected what also trade of we're and protocols, our as So buy this. OMS click the side, had on income, instruments this and the more And venues fixed in it really that part fair protocols, we've very are, and last our aligned to ICE sell customers Hub into that all added side Select institutional for RFQ The realignment, on as protocols income significant. I evaluation trading. all under all one of mentioned Scott

they're the them portfolio give that Hub AP be able couple requirements just So are advisory in significant have we of we makers four market negotiate market announced last part a had last Select. our network. some that to and market baskets, of added added ICE of We've the secondary our there another procure trading ICE bonds, bonds Select have swap And that auctions in In they bonds executed now ETF Hub going of that basket makers, issuers menu not on market go of Citigroup our space in We more and to largest the that ETF two are then of but the have add we've that the addition number in two via onto is the we've in multiple we on bit issuers out of in the our ETF weeks. Hence into past platform of weeks, would of platforms we've the had executing, the ETF. to couple need that makers, we days. makers we've onto market issuers, now managers procure being seven now total for six and to to of largest so ETF secondary only committee couple using of share procure our last are their going cover expanding Hub, by makers testing, and an to primary asset to had progress us that just helping BlackRock. Hub market the made in

calls, the all rails the to see groundwork some been that a starting green a to the are heard starting we're to be develop of these in lot here. is place, lot of infrastructure number together talk to So all and signs together earnings done laying you've this pull a me of of putting it's on and lot that last shoots a needed

Operator

There this are further to Mr. turn you. the no over at time. questions Sprecher, call back I

Jeff Sprecher

Thank I stay And you, you Andrea, for to you. safe that, hope look that loved have and for you this I all your guess the morning. moderating one you and healthy. I a And Thank hope to with forward We again joining and meantime, in us great of soon. to stay thank speaking day.

Operator

today’s conference call. concludes This

You may now disconnect.

Intercontinental Exchange (ICE) 29 Oct 202020 Q3 Earnings call transcript