ICE - Earnings call transcript Q4 2020 | Intercontinental Exchange, Inc.

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Operator

Good morning. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Intercontinental Exchange Fourth Quarter Conference Call. All line have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. this being note, Please Instructions] event recorded. is [Operator Mr. conference. you may your begin Gardiner,

Warren Gardiner

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

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

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

Scott Hill

$X.XX joining strong of for on thank some morning, Earnings from summary results. Warren. X, with quarter Good highlights and us key our nearly Slide begin revenues fourth billion. up today. a buybacks dividends. of to returned Thanks, you totaled everyone, Free billion, per I'll we and $X XXXX, were share year-over-year over on through a billion of record cash and and shareholders $X XX% $X.X flow record

We in strong acquisition also profile strategic per in make important of our September, XXXX earnings some use an Ellie to of Mae that was that our cash share. credit acquisition X% the accretive full-year nearly to

per XX% exclamation pro-forma Our fourth were year-over-year. Earnings totaled $X.XX, a increase approximately billion, on year. $X.X results quarter Net up an revenues great share XX% basis. totaled a point on a

year-over-year. transitioned X% mention While we've to segment up data $XXX our that services which guidance was of fourth range revenues new and at reporting, the I'll totaled end high now quarter million,

by of pandemic, end operating to working For took the by most for home of guidance, We who deliver extraordinary the revenues full from customers, our flawless X% adjusted the quarter entering brought challenges levels our totaled $XXX XXXX capitalized near as well-deserved driven largely teams, from while high of million. delivered were some execution of above year. vacation an lower labor, largely technology Fourth recharge one year, on guidance top that and data our despite services data sales on year. the over teams focused the prior expenses year, our our the of the grew serving

options X%, Now trading. X% in driven totaled Exchange our performance overview revenues of let's equities I'll quarter by energy in business X% segment. year-over-year. Transaction of provide revenues the to an and increased growth Slide million, Fourth up where cash our move XX% $XXX X, growth and

of gas XX% and best believe our year-over-year. we X% X% a by ago, global growth growth growth our which These January, versus NYSE complex. year environmental was were energy indicator revenues. interest, results natural revenues, through the up share which a of Importantly, open industry X% of the business in our driven year-over-year including in data the end our is long-term listing exchange growth increased services, strong include Recurring in and SIP

the recurring between revenues and to first in expect million. be to we the Looking segment quarter, $XXX million Exchange $XXX

and Turning now discuss segment our Fixed I'll X% X, to Slide quarter year-over-year. Services the grew revenues Income segment. Fourth Data for

fourth leading in recurring Fixed grew from X%, of XX% for Network Our services grew income driven transaction acceleration which demand, in year-over-year. data consolidated growth data in includes and by revenues nearly reference both revenues declined and and by growth data index the X% quarter, segment continued X% business Global revenues, feeds. our XX%, for account pricing third total and X% customer the and network an analytics, quarter. increased Other ICE which

supported X, transaction we such and and year-over-year to contributed X% XX% recurring the Favorable including to and tools, These financing segment digital home for $XXX the millennial growth network, XXXX. adoption my demand of origination accelerating our growth quarter for versus solutions this our Looking on year, subscription and XXXX, I'll our as discuss million currency trends the X% results Slide for expand revenues technology continue in utilization analytics increased flip all Technology both workflow Technology ownership a prior and pro-forma full that expect strong increased revenue analytics, to Please our results. Recurring revenues fourth XX% Mortgage new to grew year. XX% note revenues a exiting XX% million Mortgage conditions, on where basis. grow quarter are our base. the to in basis customer to Fourth year-over-year. Please year, full the quarter. in revenues as closing increased first by expectations X.X% constant on segment. ASV to of in are comments the $XXX

range versus additional I'll expect guidance. representing million, growth a year on in between We XX% remarks first Slide X, some with to $XXX conclude on and revenues pro-forma million quarter recurring around the last $XXX basis. my

$X.XX billion billion. operating the be We expect to in XXXX adjusted of expenses range $X.XX to

Bakkt roughly additional of $XX expenses year the by D&A reduce call, We on expense last versus in out And million expect to spin Mortgage I $XX segment. our as million. we mentioned last earnings to expect

plan which to invest million significant the that the years, expect revenue and our we to in items to over few support and our out, to be technology our people and enhance we've year-over-year we continue. $XX investments With growth to seen consistent years will platforms those prior growth addition, past volumes $XX to customers in million tied roughly growth. In mortgage expense with netting largely including

million. on million. we current be positive expense expected to million, are to will which $XX will revenue million to spot FX, ICE compensation to by to Expenses a impact across to expect In add $XX based than tied offset rates, by to $XX growth million $XX revenues. $XX million We increase more $XX increase

of through also business cash summary, We first income, the grew expanding dividend related roughly the earnings and technology our strong operating flow per expenses network In customers, quarter, again the our same while to expect Bakkt. At in free to year. invested $XX and returned the to finish our delivered another we to once a the in share. Mae. million, be billion including we our meet nearly our time, $XXX of needs to very Ellie million mortgage acquisition $X For shareholders. to grew range revenues, adjusted of operating $XXX we million We record

key top XXXX and shareholder the discuss As and bottom set take for a additional stage into business to growth returns and now, beyond. happy during I'll some continued line for result, highlights your to growth, Q&A. enhanced I'll to hand and questions it But we've be Ben, initiatives.

Benjamin Jackson

X, where you, Thank business. and of the good Scott, turn the begin to I'll our with some to highlights key everyone across and Global on Energy morning call. initiatives Slide Please

our Dhabi in soon influence Company annual in the Futures National IFAD. to particular year, While structural that and network to we largest been are In years. the the or on Dhabi ADNOC, growth of launch launch firms. inflation, average investing Oil Investments exists energy energy plan Global is five Abu or generated quarter economic and growth Energy a volume oil growth focusing trading ICE partnership will environmental have with we This over and or world's geopolitics the across Abu markets, we our nine critical in last that the have revenue opportunities X% markets. a across trends always

an with less total time exchange volume the of existing an when This leveraging For rate growing interest the demand contract Asia complex of at trading activity. our average where the solutions exchange We network of WTI, and natural XXXX. will approaching futures Murban and at markets, XXXX, oil, global as market in an our participants Brent, the offer of at crude since and growing are of of a TTF by in for the on Europe of Exchange benchmarks. markets. environmental related traded since gas was XX%, benchmark also number in price price global decade formation. inter-commodity markets, annual by crude markets the And network, our forefront over centers gas role against energy XX% open Today of spreads globalization a the TTF began the the XX% important volume nearly seek of this important new In Naphtha investing grown an tail first traded breadth global cracks than in plays XX% evolution increasingly our we time, growth ago, of has array Gasoil navigate increasingly and long our Asia. to to launch customers energy through flowing will help differentials, is

Technology center of as customers automation. workflow to to digital ICE demand at is Mortgage Slide greater XX, conversion, the analog Turning an

provide expected back to the $X.X August. of our XXXX, the home millennial of ahead we to Ellie acquisition Pro-forma of in acceleration end for the of high at revenues conditions an addition, Technology tailwind attractive of robust a all billion when range XXXX announced continue refinancing Mae In results. buying in we totaled Mortgage

has As networks. $XX blueprint apply be to approach will execute across other been our the market, our we we and billion this against similar addressable

of by We will to both proposition acquisition, organically tools enhance growth, content network. behind and through the value adding secular invest new our and

intelligence the analyzer, data believe to to across network analytics we execute that time In as workflow. new to it billion our solutions, market. reduce $X our the initiative and launched our XX%. our a we takes the recent product the pain strong example, or across offerings As has exists see fourth by a rolling AIQ out quarter, we uptake up and a customer leverages to credit relieving perform that our to credit during inefficiencies points review begin strategy and artificial we a plan engine eClose continue an that addressable we of And XXXX,

proprietary across a the our network fixed price XX, that evaluation the growth ecosystem. serve uniquely capture is positioned Slide as to to cornerstone Turning opportunities of income

at an industry, provider are solutions the years. you under income we fixed the of annual leading assets to grow of average a know, many example, an seen five As as ETF last rate management has over XX% which

decade has long of as provider a largest second what reference is indices data and for income served Our as the of position globally. fixed foundation provider leading price information today the

reduce critical, a our ETF information XXXX what of growing to and have exists While our a our are integrated we process. ETF the Chat, industry. the year price XXXX, we In launched to we users. indices within only inefficiencies platform since offer create/redeem late last this to grown a XXX,XXX and we part in ICE workflow we Hub, that over that designed Late network acquired

Hub to seamless income analytics, providing our platform, access connectivity and to Income ICE to We ETF as venues. also data Select Fixed our well fixed trading as our linked

fixed bond developed an proprietary data but identifying unstructured an as cleansing initiatives are as This we workforce early bring across suite unstructured opportunities, databases mortgage to services actionable of insights such ADP's these and municipal will As we This a classes building growing apply our our new services, to help apply asset data data developing as the some for of services also skill data leverage development, and which as not expertise insights the in in product income essentially a expertise only technology and of the the our serve for have that through announcement foundation provider partnerships, markets. additional data, markets, network. new into our is ESG leveraging the gathering data. other many in expertise leading mortgage such also well. to

we've investments future. about As opportunities the growth continue I'll to we networks Jeff. because in the across lie past, that over investments call capture to that, we're made to the of we strategic able ahead, turn the will and move excited the are for opportunities our into make we into many that the XXXX, With

Jeffrey Sprecher

we collaboration you, Thank with years XX. Starbucks Microsoft, us thank and ICE ceded in all turn venture joining others, Ben, Bakkt. Please this among and you a to for Over and morning. call ago, two within Slide

a by the nascent Since a made that transaction services. futures purchasing core building to of and digital strong we platform enterprise retain contracts, product We've adding build and merge ecosystem launching within an class. was lifecycle In asset, asset a approximately rapidly blueprint. network vision January, collective would it efficiency greater value will consumer and of economic bridge options will Bakkt through but a to we've Capital. SPAC, billion, Our leverage and by managed and effects custody XXXX, that interest. digital have wallet that our by Park at investments in which announced $X.X inorganic and with The transparency, Victory to invested valued XX% gains back solutions development a of full support launching regulated we've Bakkt would our growing organic competencies applied in a

decision Our was merge three-fold. to Bakkt

provide its will capital, incremental the maximize to growth enabling First, combination Bakkt potential. significant future

XXth record ICE our our marked was fully and the of and company as we listing unlock believe leverage York recognition. at to shareholders. to adjusted year ICE successful this and believe I brand say, that another Exchange, will public is In one vein ICE our shareholders, shifting to create expertise on share of of by that for will from year, of our the Stock here record what began with benefit XXXX within heard job New on transaction XXXX as that you've was the in and important elevated believe we value consecutive of often New Stock most And the has initial track average XX% a growth an ever job recognized since. compounded Second, our earnings Exchange a price. at parts management offering value us of per public value consumer my share, the And the team rate Bakkt York infrastructure annualized not third, for

our strategic was the our services, and and delivering shareholder incredible classes, network broadened we've Through a asset we've well position, operating inception. of proprietary to transparency workflow application for And market, expertise, growth year into powerful drives distributor expanded effects our approach and our operate. and into efficiencies further growth classes add data since Our future. the creator we a a challenges. asset as foundation this our that value across that as grown of solidified has create technology-leading new unique building of global expertise both that been consistent addressable world-class XXXX and the we

business, Our employees, products. protect customers needed procured as to find our ways to they access their while continuing to do and

responded colleagues needs. our extraordinary right Our resourcefulness to meet customer with

Eastern conduct I'll resulting the in X:XX best for So remarkable for to Time. trust, quarter company's back thank history, my to our you and the that, you moderator, year until their to and thank record and our turn call at another their colleagues revenues customers consecutive fourth to earnings. of contribution With our and in ICE Kate, will their question-and-answer now session a business

Operator

first Piper Please of comes The from Instructions] Sandler. ahead. go question [Operator Repetto Rich

Rich Repetto

great on breakout Thanks is question on I Ben. guess, recurring revenue. and on Scott. for Yes. the morning, that, Congrats Jeff, the Scott year. transparency the Good and the

- you - I the - year calculated So think I SIP understand recurring now like - the and looks get revenues if in I at said the have how I revenues, half about mortgage overall you're what didn't it recurring side, the almost what's is exchange accurately?

Scott Hill

on guide, just some add to leisure you than And less Yes, continue predict the in We the revenue, total that exactly to are exactly overall and those half the picked elements recurring of want to guidance million the you're mid-point, that Rich, recurring, business of right. business. is up transparency it on give our in up of our did it's around business. of which of $XXX right you volume based if the

basis at given growing in to you do first the look pro-forma guide detail -- revenues X%. the you X% we've and those you math are that If a on the on quarter, if historically, recurring

from the where customers, stable team of and my this customers, very a on by which despite remarkable in obviously but also said did gate, led of a put right mortgage performance which performance business year. as in business, the up a business, then up was strong nearly ASV job the strong has I in sales volume our position entering very existing So picked a the X% picked part remarks, pandemic, data us again, out

So those be. we revenues feel intend our we what about and good expect to very those give to you quarter we on recurring businesses perspective continue to each

mortgage that of recurring so about specifically the you driving little I'll what's asked let You performance. on a Ben color great nature bit, give

Benjamin Jackson

saw this. We Rich. Hi,

business. come mortgage So that. getting When the the of to someone part network, side the platform thing services on our and they're with start network of full our is first our as to onto subscribes

a of is. the is base October, have there terms and under performance we've in part different TAMs billion recurring short talked origination and analyze into loan a of in And company the I'm new phenomenal covers into So that's that continue whole terms And highlighted the further, that business, we that bookings a even pleased share really space. of system this the this about here to things the that period And paying into of the origination of we had the Encompass fee set QX, results had sales grow say that billion is exciting customers alone go that in here and to that Mae in I've and what records to the in going our share, in System. earnings that on we market of to the the we Ellie in conviction last even that can of be someone's that sales on $X been XX%, customer level saw $XX also out to I what one deal, we the with Loan pretty subscription bit call, QX had under of cross to go and that that selling piece of products of XX% terms base. little seen revenue origination process. a our just increased then that time, versions side TAM, automating in and and market new that of they're back seen in sales after terms quarterly all-time Origination when covers

are the company's QX and the history. QX set bookings entire the in So highest the company's Mae ever product was Ellie largest QX the across ever history. two quarters quarter in

that So to are we of revenue about for environments. QX the all feel really and of the well Scott base real grow the that the guide strong tailwinds. businesses to ability gave revenue regardless volume why recurring business recurring as

Operator

is from ahead. question next go Please with The UBS. Alex Kramm

Alex Kramm

Yes. Hey, you. thank

to to how now since in year Just that just about gave recurring some et discussion guidance, mortgage update question. gave you you us two-part now cetera. ahead. obviously, just you you you're outlook full on you for and the when for It's XXXX outlook running your that closed that general? give said Ellie, One, obviously you just flatly you're was a an comfortable feel but follow XX% Can X% revenue

from Ellie you numbers, be plus going obviously how you're business, mortgage one, outlook the that you think forward ICE how about how we so really for we hold pro a now and guidance about thinking the accountable year? forma talking should Thanks. we combined it should should integrating So, that now about

Benjamin Jackson

Thanks, Ben. Alex. It's

in industry away blew all obviously, volume. terms So of quarter estimates fourth

that a over referenced business trend this Rich, the XX% got basis, to very this the per under been covers, happened on underneath are if with business we as an answer this since did very And we've to strength of as sales X% strong. gave that XX I I we years. covers just are grow annual average can grow saw we in business that you we that and this set we it, has look you the And acquired what's year to on that clear and aside. deal, growth long-term convinced So will when

TAM, TAM in a mentioned saw quarters. of I record over billion quarter. also that are analytics. that $X our the bookings the billion couple AIQ we So of automating analyzers Also origination of that around in billion workflow of another is the of records another $XX we the that, of Encompass last $XX And fourth $X data so that billion and couple saw the sales platform, record

on that the that, have with our we going third platforms and It obviously ordering Encompass to network, the be in loans fee charge loans monetize loans before. model. or to for be ahead than as sales efficiencies is means network these into business. hitting for going did the our more we that of well like now sales January, thought service We it's as the terms more where are revenue we of recurring and continue And to going as interact to more to interact with it we're types means see we that that to were that on and in be the services be going parties providing. are we our company, we're on means network AIQ not strength efficiency January report people, we in records our a more There's the network this that flood for the we're there's credit of that, across customers provide on business. the that results report on What

business these XX% environment us guidance. So into of see time to confidence that grow with we that the of volume a as tailwinds that over X% of gives we can regardless all significant period long

Operator

question is ahead. America. next Carrier Please Mike of Bank of The from go

Mike Carrier

SEC on just taking get thanks I the mostly changes Hi. outlook. Good guess, rule. you've I on to some side, equity the morning just And with an for data on of the data given update wanted the and the the question.

to coming standpoint, about to I it's it? that let's guys from industry, about the competition if navigate? new the you think how say, see can to thinking you business, product how are, a impact Whether wanted mean, how in Just you are

Scott Hill

Jeff wants he Hey, Mike. can. this, It's if then in, take to jump Scott, and I'll

kind kind revenues I understood at it expectations Exchange ongoing what the exchange the with the are said for going growth the and years, we discuss, what you down probably that's line or not And much, on specifically of in SEC, given dialog last two changes think -- from some kind of, what of XQ go expect about line I three to consistent they XQ, recurring our we've impact. expect don't a all, in We in a be stable. to as impact. of the Yes, not anticipate revenue. we've that answer was And any you business, tell question which in look We're your is right generate lot haven't revenue looking to with data, terms we if we any again, the worth, is is you of a that impact think it's just now, history any that but XQ, number. conversations the guide I'll recurring seen right none. same I they're

I in of it's to So is this are that likely said any true impact come years, past changes on did will are think also five We've no in the end that come our revenue immediately. not likely expectation course year. still over and changes there any that three, there two, or the at

real revenue for of So answer the year. impact that expected on this is, bucket net-net us no

Operator

Hill from go of Loop next ahead. The question is Ken Please Capital.

Ken Hill

the back mortgage analytics. hoping data smaller one Hey, good I of go portion on business was there the to of to morning.

there. as set billion I think that is addressable $X but mentioned market of about is $XX you run opportunity rate the annually, about million

you putting you So place vision in place maybe to maybe or putting -- can longer with in there that infrastructure processes build are what the hoping talk for over to I term? the that out, us you're help was

Benjamin Jackson

is Ben. This Ken. Thanks,

heavily heart heavily about. we're have score. the this to And and and about I when of analytics and analyzers that and in. all in is we look what all business, the that Ellie I credit the very get So report Ellie script that investments automation. they that acquisition if just this were we the business few area and savings origination to it data minimum, the the mentioned around doing of AI part $X,XXX of is -- at we've income that and things compare offerings, looking mortgage AIQ at the that most And the a area all quarter there for at a minimum per at like automating analyzing an when $X,XXX, And statistics years and a and $X,XXX an credit areas chip half we've And talked processing. this of last -- past that our of was work absolutely you of associated the of see This we are has done per business And of that's believe to the manual manufacturing. is of our around right is what stare in the analyzers. costing is of Mae great one you And $X,XXX about to used is through really And is it's acquisition taking out away business is opportunity it's made, was happens excited in ago. date it, workflow. a that, what the invested under invested Mae, manual about has

$X that hit of an a a automate score in the right our one is this have has the to. record new in the information rigs a billion the report it's for. old compare to and what And answer done pretty said And question for this sales the we've in credit TAM, get a that that we product highest able items on the we You easy prior of are I now to that of in business as customer the we're particular ton to growth it's of to manually, seen. sales requirements applied the terms number around QX of underwriting product. And process

which that it's monetize being you in of at is look some -- that we million per number use round way subset year. If was year, we $X,XXX you we last it done a around that can provide savings of that, from what and to customers. If $XX say, and efficiencies per assume conservatively, down loans of provide part loan a that,

XX% You we're subset have in very million $XX by do quickly. math we flow are it providing as loans, market [ph] loan our times on And very to and customers roughly almost that you obviously the that a them. big through save, of get to X monetizing seeing share that going benefit, that's number

Operator

Brian ahead. is The Deutsche of question go next Bedell Please from Bank.

Brian Bedell

the it's Great. And you're that? if data Maybe Thanks. -- you're a I not of seeing coming million for impact -- revenue you I'm the production Technology mortgage with year a revenue mortgage that to guide of update Maybe waiver guidance for you for of you in revenue, on the deeper then for that. on if income Mortgage working view $XXX could if million, of have then end you guide talk on to data. low up report progress dig just Maybe that know a recurring just sure little if -- the Good fixed morning gave I variables $XXX you Ben, in an full side synergy on the or high could wide time terms that? full year. can versus missed -- the real recurring real-time bit on if the about more on I range. folks. range? the of in the And I that a just recurring if the think the sort the bit

Scott Hill

question think one had I Well, okay, parts. three that so

Let I can them. me hit see if

on simply line, provided to know $XXX First on wide that million, if I that is a we we've were all, an guide Mortgage quarter I million, continue on-boarded $X matter in million that on million over to fourth and that of customers that Again, expect were at board, million, don't of mean, $XX recurring we wide. It's million, 'XX the $XXX million. thing. $XX our Technology they that revenue the history look that's you of $XXX $XXX

certain up we've then a on because of customers, quarterly that So sign growth that customers More sequential talked consistent about. number of or more seen everything basis had a seat. seats

to $XXX over or revenues, or $X minus for -- seems million specific, that the then And What whether not feel like on said so to or to right income because on growth business wide, the guide, we the the go again, $X expect year. business a it. X% so, exactly to X.X% growth the to to based But not million or about the we and million go add plus minus ASV, way that's through on actually fixed is and million, X% plus quarter we that it's it $X.X fully expect guide, an it's I recurring $X going little around million. be good bit, again we data

effectively XXX% As that you figure ASV the revenue is know segment. of now in that

regards mortgages thought. any to revenue. working do recurring if piece team I'll and Ben. the team income hand to With fixed on sales the in little that, thinking we're that so, view he's that Lynn's you the data with got the to that -- or how See for bit year right -- of And growth is think to X% X.X% that plus a terms given X% tell the is able full minus ASV we they're sorry, about to

Benjamin Jackson

there Yes, as I we opportunities identified data early the some the have on side. in mentioned script,

of and an all treasure that in you there. trove within segment can are there that sets imagine, data Mortgage the business information are across As businesses absolute Technology the is

business you So and in Ellie there. have you simple you Mae there, the business the file, and merge system Encompass the in have have

the get process in what could even go tolerance, a estimates not areas XX% see the jurisdiction common for closing the the then are, areas information. the the the closing we is is sets, the amount, at as things there going in the asset happens expertise one US. any lot datasets They significant in tolerance, efficiency And a and origination managed clients closing that's amount, leverage We late every exactly What the subject of of more artificial are data create you you requirements the the process, material the back reference when and the you what that fees provided the all intelligence fees the the with be of directly were data like, through our quality on the to be compare has is be a closing these entire that closing is to to origination know the Some and tools get business. are that to amount automation to all off in we when the again. power have data of original of estimates that loan were have Simplifile type through where original XX that that that around this that of of to the to closing. Pulling errors at zero closing the front what are errors table less higher mortgage you expertise information side AI artificial a table. what to in if from process it from origination that way going to capabilities a going in the process, of we're you'll expertise of up combining area have the you're of coming our and ago. have how found is leverage most information, to type intelligence are all to very we those simple looking process. what and able data days And of by numbers your plus And

Jeffrey Sprecher

this -- Jeff. me is Let

to many acquired the it the the Mae know buying for we've hot to -- the am customers. turns their of And any Let me been believe obviously we services exchange usage. person they're revenue giving space, base different which reality, yourself, got are that that a in the is actually was lot data platforms data I where customer, has technology we've vision I since customer, acceleration the the person up been building we we've really that providing articulating am a meet, commodity. a a customer from the who But it's a have platform it. growth ask and of is and we've live interact or of by Because customer. is managed you end-to-end actually source. we in the And revenue an wider service out is, and but with, platform point, business very that platform that and examples a free that in really mortgage are lot seen And providing a bridge -- that the just the our are The of comes right are business from in that they not really great we're is the of a you of to space, don't coming actually they free Ellie ICE. a society people them. these great seeing society the a owned that that underestimate today or now We of

manage in about the a owns conversation society financial rights. resonating it's have And will that vision, and selling how that of protect how mortgage Intelligence in to industry, well about data so, and and way services that I we that our asked built Ben data you about as with is has out going our we're it industry and it, to having go data, an decades broader as that data for people that we area the Artificial bodes And that we're data very is conversation in with that who interact us going we're trust that to where the privacy it. continue think ICE

Operator

of from The ahead. Goldman next question Alex is Sachs. go Please Blostein

Alex Blostein

question I the Great. side going feels come on the some trading bunch you there around past, retail perspective volumes the some but of everything evolve time off concept to kind like your the how might market up payment potentially an Good was flow in a It to or of this whether to going things, everybody. for order know share has a to don't on but with of opportunity different, now for of is things get grab venues trading Jeff, curious be that maybe hoping back? might the times if be really your equation. could on for on that's and be the morning of comp, get lit in any not of XX% regulatory perspective exchange,

Jeffrey Sprecher

infrastructure or been needed of change. it pretty paralyzes question. major and basically in back we of And New manage governance about of that the to last flawed about heard a I week resulted talked in not on come a and review. that SEC bargain guess unsuccessful, through York operates as was obviously, It's innovation I'll fact, unfortunately great Scott market were that up over step and industry last across really somewhat space thinking bought with totality the some the in structure we vocal that amount we I Exchange, and that so. would holistic you've US were stifles inordinate people grand the that look seem the didn't we've industry tried time the view. a and about We have the spend that And at guidance when equity infrastructure the many, thought and industry we whether many One, Stock remind or properly. the or infrastructure the you fortunately my think we the that it gave, consortiums in to that fact to

others and and that -- as shared dual to sense in SEC a the market a SEC The unique our is grow lawyers his new to unique to has for give commodities that and capital as training space grand interest to inside derivatives And that, part to is going a we I innovation SEC States, agency we worked -- have of potentially of more the would to side see agency, have up he is in so, a positioning market opportunity structure. get if He continue derivative consumer deep and United an Chair but his agency. the got to has part it's knowledge worked a takes bargain see back regulated that actually well there which we a same I thing more and people in again have career, structure try protection that career some it And a market enforcement historically, an where mean, did vision think a agency of we'll results, we're by seat. who and the person is the and And are markets. Chairman opportunity Gensler comfortable we of been regulated on a with by innovative, in confirmed space in could role the much have enforcement transparent as Chair a new the the welcome. about compliance a an would the that there and things. and talk and And new it's

Operator

Ari from Please Suisse. is question next of Ghosh ahead. The go Credit

Ari Ghosh

perhaps either everyone. Hey, about were think favorable on portion one this revenues. a assumptions a industry refi because and sensitivity just any than to the piece, know just backlog revenue you like just Even, you little think be transaction-based months market of we conservative the tech Thanks. conditions three curious, the year outlook here, to should a for more will it and quick on say, Again, do looks good origination pretty a morning how you Ben, the visibility embedding curious I Mortgage Tech. for have did four or ago?

Benjamin Jackson

volumes. I'll Ari. to go your go I'll grow Thanks, we the businesses -- and ability answer through various I'll direct it. How volume cycles, question see through around

it loan more and network, you owned confirmed that continuing about through that through with on around the our on the this about are environments gain and grow sales few think that ability that: interacts on see it's the have ours businesses times see flow. share. you have the customers what going the when network excited loan X loan seen on equals with parties just average can customers third to business further really so we've more months one, flow market going if loan network. I've to more shared us, a to this volume that. the we two, Number that's of we've you various So platform, And that now -- business in results results, that just

service a get that comes different So the third-party third-party that that network, with with on services they interacting times that that we we each provide and loan. efficiency are fee X for to it's and on that for service that providers, network, provide providers we new interacting for somebody loan

do very The are by position to are math, loans third shortly origination subset right volumes deliveries the loans, we early our going side We and of and for after closing through automation, comes -- eClose there, QX a beyond. in least are then to and fourth hybrid if assets around Encompass you a is $X,XXX our do US. with the that's room, opportunity we full in and one process for we that XXXX loans We upon I efficiency followed the eClose We that's the area number. second be have unique, and eClose in big area on some an of the close And almost have that do offering, touched of and MERS in the it originated the see a is in on a connecting of process. just growth the in network the we in When see unique in the area several itself, have insight, because big that bit that's and platform. this year very origination see offering. then year, half the that million that into with of the and network it's that XX electronification a we at of the integrating that Simplifile unique an it's extremely a XX% of

what for day look is of see like. day -- through gives on So the preview application is coming we or which them us the XX market to refinancing original to purchase, a XX a going

are out see you the you -- there. industry also analysts, You look at estimates that

have a beyond equity couple know go would to quarters revision. to volumes to this up all of hard very year. business environment, it's our we beyond areas It's be. a beyond we we I to origination close indicative platform that growth we if volumes estimates see US the in they like are the quarters, optimistic quarter a two, what or difficult to to to are hard market in based few take other going forecast. say underneath But data and What with platform, the we you on what for grow. predict maximum a oil on the covers out that that, expect Those volumes it's being -- like as Fannie as that the are two is, the significant anyone quarters. see data that But and you just estimates our subject of regardless volume these are next revision can If very predict volumes that mortgage out we of and follows to quarter Freddie

Operator

Allen next Please Compass is Point. ahead. Chris The go question from of

Chris Allen

I Good just morning customers of is seeing, from the mortgage the you're And terms penetration new past of opportunity guys. share beat. to just XX%, which coming customers? the over you versus much I that talked independent share of term? the just in as potentially ask, wanted existing banks wanted follow-on terms think in any gains XX% I to how about is in mortgage longer update

Scott Hill

Sure.

actually we're the thanks, question. seeing for -- Chris, So

growth literally seeing customer segment in we're So our of across every platform.

we the -- we're that see of be large in are in seeing you the seeing tend volume market. on are independent share have some With but go segment. that's It'd of very to bankers, each there, to a banks That your of are with in -- growing said, continuing where strong, to market. yes, to So the some grow. of just of banks, purchase because the mortgage particular, people the their side refinance refinances, lot tend you we independent do to market, relationship go some banking purchase the

strength seeing mortgage the thing across and share banks, the other that with seeing is tend the I sales to it name interact the wholesale you banks, of significantly to not the announced if up we're as at that X.X% example, year, XXXX, to XX entire for side, year at actually we we're we're service units market, the significantly of significantly in volume -- When what in just much the a earlier, well. And look So you well seeing refi. volumes happened balanced for deal. puts refinance calendar in refinancing, refi, and banks, we lot purchase, market on when said our now in going you it. our at we we're one money this do application portfolio. here, lot that -- in we estimates look strength, highlight trends at as of refinance albeit into front service And right look service that if we a as which Fannie I'd number for the the large million on the up -- that have, we higher looking what for And mortgages XXXX XX-year correspondent across are independent banks, this what referenced strength we they a is X.X% Freddie purchase but than up we as and

purchase, in see we So one of we are things just We're the There seeing there. side. -- the still is a purchase a volumes. not pent out inventory lot demand of the tail refinance on up covers, underneath on seeing

tailwind refi, demand that's to rollout, you vaccines and another little and up actually a economy purchase rolling, are I sell, as decent as of as for which tend a people given bit us. that willing amount as So starts market the shares think purchase to well, have tilted move pent be towards our more there

Operator

question Owen ahead. next Oppenheimer. The go is from Lau Please of

Owen Lau

Good question. morning, and my thank for you taking

ICE there that that have you synergy on investment about in make cost XX, the So base. and is Thank you or you Slide Could ownership basis? you a with talk you. X.X% disclosed any did coin Bakkt? Why please

Jeffrey Sprecher

question. Yes, that's a good

be thought But what of us, with you. all, never always and with strategic that should in we investments are number we of a relationship either our stewards made businesses thought money or a was to a capital have that firm a regard. some company, were knowledge by or that partnering returned. venture First as the company, adjacent we there shareholders' them having be we in and equity have where advantage transfer of by that private should by firm, a that we excess that thought We've --

on monetary in payments And in would increased, its obviously our number. And invested has the I blockchain we The value because and and trying successful. was was by Bakkt, of lot in which kind clearing, us -- trying traditional almost honestly, going understand wanted in investment we that asking insignificant similar a of blockchain as and the understand that so, may significance for to have, a top the going and years -- say, ago, currencies and I'm also just in company you so, the to blockchain. of technology whether of of three base it driven disrupt recall, of was knowledge. rounds, financial was services early to to obviously, three that's has two phenomenally coin we were us, we stake years people again been sure whether used industry, the ago, have terms and digital to be be and investment our were And a

also so, invested And -- a we dramatically company way. help I and small as increased, think Bakkt, that a again, we which has that that a up basis say have basis stand

also have Euroclear, that solution custody too. again European made which adjacency investment We an in where we is

well. Our company is doing very, very

do number shareholders very to of for time we our and was very, so, as over assets I think unlock as I transfers come will I have think, your to to knowledge trying try that partnerships And those interesting question, to allude value, have, fruition. some that a

Operator

is go KBW. Voigt question ahead. next of The Please from Kyle

Kyle Voigt

Good Hi. morning.

acquisition quarter, of announced fourth the in S&P IHS. So Global its

the had LSE close. week, Refinitiv we Just deal last

Just in product scale of just kind transactions. size me competitive and expect competitors data of income segment? your you environment And how you these would evolve of some the Can add fixed the landscape as give broad gain maybe to breadth? or these environment talk and about

Jeffrey Sprecher

to and and data analytics with serving think roughly, the also in large we that to glad acquisitions, our virtuous management risk but information the along us now we data probably business. of I'm somewhat that that formalize adjacency information business of that analytics. how risk. and our portfolio of internal data They move Well, it And and management acquisitions it's use quickly risk say of number takes relatively around similar -- are Sure. and circle intertwined the manage our and I half really for make that recognized early to is offerings

that are times and that we space. mentioned, And not companies in of to their so, some to our With in them, data actually the surprising others that both, and they moves use some times, platforms relationships and it's all with and you us respect making indices. at platforms at use of some we have

groups movement where somewhat advancing And also but businesses, data so, the seen their of information you've collaborating own across a exchange and necessary. large industry

with industry. the of companies, a the of competitors, we even we cooperate though other some betterment those for in So good all the have are relationship in of areas, areas and managers fierce we

Operator

of Equities. Please Clinch question from Atlantic Simon The is go next ahead.

Simon Clinch

I we'd my on I taking under the question. XX% tech for Thanks wondering was just about side there. origination again. to jump if Hi, mortgage just side, was And your back could -- the you what wondering for share if to market -- Is can the about the think how in origination you in developing a talk to you way? market market and go? natural environment that cap share you see share you think the that competitive where -- future normal that comments

Benjamin Jackson

significant and in behind that's transaction electronically et terms note we all systems. the bank in and closing company time position link together underwriter courthouse your which electronification as digital MERS, electronically that by that but in these is in of of standing where as it to can't workflow, room to we'll that, not a your or local excel where agent, of closes And transaction had have strong gave say, ton in When us of analog the are going in half long be out enough by that on business. have lead rolling well What's of emphasize this of homegrown functionality eClosing an last to this amazing of confidence origination insurance Simplifile. what first a to another file up, be there not we're capability to marketplace only that's loans that -- is. lot looked space, this it, that. a network to share all the to had What's the pilot a of underwriting vault have automating the key additional cetera, in close, I second documentation register mortgage loan, in attorney, settlement the electronically, a a that to we're really at got closing I able your done it on in for helping provider, a And ton as to very second at doing very decade your in county prior to this we earlier, that your the and the title year, we go to your this the codify happen room that loan is as the way independent see the eClose benefit we where front, you or it with well origination position underwriter how Simon. partnership systems, because doing we when write share associated unique going just you both mentioned emphasize to manual unique that area can't side. your as able and or also functionality network only And the the -- solution. of mortgage that process. tailwinds in the We mentioned, is that what's in out But enough Thanks, is in second origination transaction. we've -- pieces the incredible the an you market we XXXX-XXXX that's what's are in do we And you've in long-term -- of spreadsheet in automation behind over we all introducing of I to then customers phase this Mae pieces that some key stitched piece the launched, a magic to coming That the our very is for -- as our it we a set have big strategic have the -- the to Ellie that market market. other several -- look already in have QX is into deal

Jeffrey Sprecher

services on get entire real focus is are for have that that revenues to Ellie take other find origination loan origination that to Mae that customers just use were on about using we the now, the opportunity network the us beyond the on network thinking simply our loan use customers that multiple the them the we're Yes, right how those us to a of for and mortgage platform.

all if at that internally close and have we've involved, helping have bigger articulate So and involved, you are, market the solely at But And of them the use been bigger LOS the some network. new the the and but for increase to addressable origination is for us I've end-to-end is that of to Scott share is involved taking to of market all vision, where full market actually loan we been seen, has vision here the Ben has getting deals, look the the been us and and the customer I able described. TAM in those origination loan we're that share, the just think looking Ellie been three end-to-end that Ben that's is if -- origination. been helping involved, services brought already customers to it that platform end-to-end you system, loan is

Operator

I turn This this Mr. conference Sprecher concludes at to time. session. like back our over the question-and-answer to would

Jeffrey Sprecher

us stay again and the thank And in I conclude that, meantime, forward you you stay of you to all Kate. and look morning, speaking have we'll and I loved day. But hope a you, the this for we'll your healthy. that Thank that you ones soon. and to with safe great joining call

Operator

This concludes today's conference.

may disconnect. now You

Intercontinental Exchange (ICE) 4 Feb 212020 Q4 Earnings call transcript