ICE - Earnings call transcript Q1 2021 | Intercontinental Exchange, Inc.

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Operator

Good morning, and welcome to the ICE First Quarter 2021 Earnings Conference Call and Webcast. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mary Caroline O'Neal, Director of Investor Relations. Please go ahead.

Mary Caroline O'Neal

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

filings our XX-Q Form in measures. the a please forward-looking to with and For cause refer of and XX-K, materially core earnings differ to refer business reflective non-GAAP operations risks the our to description XXXX of first We measures statements Form quarter from other could our our cash we In that results those our SEC. more believe described performance. are supplement, non-GAAP certain

call of With page call and Officer; on earnings the services. refers When second Chief Hill, are net the Please Throughout otherwise earnings per You'll explanatory regarding to to this call, Income this Data additional Warren CEO, revenue on to Jackson, refers incoming basis. over earnings earnings unless the materials. Financial a constant the Ben today and expenses find to Scott. to I'll term a reconciliation and and on Sprecher, revenue used share. notes currency Scott presentation, us see Jeff of Chairman the President the President; Fixed revenue certain on net transaction-based of equivalent of diluted adjusted growth are Officer; supplement the definition Financial references now adjusted Martin, details Gardiner, the in indicated, items. for Chief turn GAAP Lynn

Scott Hill

morning, on new joining you our with your key Slide us quarter highlights Congratulations Good today. Caroline. Mary role, thank truly begin on for results. well first some from X I'll and Thanks, everyone, deserved.

we of to revenues a company. $X.XX, quarter. versus and first were of record compared income total share Record increased $X.XX quarter transaction First year-over-year history our X% all in of which in earnings forma net a per unprecedented an revenues, on revenues operating income, ago. our slightly earnings achieved year pro Total were billion first Adjusted per $X.X the adjusted X% best adjusted of basis. last previous the backdrop year's up quarter declined share

recurring about the half our of total our which with by segments year-over-year to revenues, all though, X% Importantly growth. increased represent business business, contributing strong three

$XXX First would million, original we additional lower our related totaled including Bakkt. million the of toward quarter have to operating adjusted Without million $XX expenses end of Bakkt been $X the guidance. investments,

the Park We of Spac expect this end Victory toward quarter. completed will that merger Bakkt's be with

expenses offset be of to We than by quarter the of expense billion expect Bakkt year operating approximately which expenses second guidance adjusted revenues, range slightly of adjusted full FX, be additional now to $XX including to million, higher-than-expected full Bakkt. as will Incorporating million the more expect million additional billion. as to higher be into the year range $X.XX $X.XX our related in to we $XXX expenses well in $XXX

dividend this X.Xx $XXX leverage payout totaled as quarter's First cash quarter our million. end. to XX% free our grow even We to by flow generation used by over reduced we cash strong EBITDA

$XXX In in over gross stake of X.X% generated to $X.X addition, we million which and billion sell April, during Coinbase, proceeds elected in taxes. approximately our net

closer X.Xx to pro the proceeds reduce been first end to have compared X.Xx over just when of Mae at debt ago. our used have forma leverage X to months acquired Ellie we would those Assuming the been quarter,

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

driven This in by cash performance quarter second rate equities was strong our company's interest totaled $XXX First energy, $XXX businesses. the revenues including million, million, our revenues and quarter of history. transaction best

listings, XXXX, of and of is options services industry growth complex. is year-over-year, revenues, which across exchange SIP interest increased revenues. interest, our the believe in growth continued capital share including and futures include energy data which X% Recurring our the up financial our growth best indicator long-term open driven X% trends NYSE of XX% equity Importantly, and end by market we NYSE open versus and strong XX%

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

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

decline X.X% recurring revenues our nearly growth account segment offset quarter First of a totaled revenues. $XXX more Income XX% total data Fixed for which year-over-year in revenues, in than transaction revenues X%, and and pricing capacity. analytics, data for by leading and businesses, X%. services network continued includes grew driven customer and reference demand which network data both index additional by Other our million, increased

quarter, second in is X% million the quarter improve outlook expect $XXX revenues a This to $X.X range the and supported to recurring be billion, of entering million. second ASV over $XXX by year-over-year. sequentially to at Looking up we to

business revenues services consistent in and Looking X% provided income to our X% the fixed call, and fourth grow to the data earnings full with guidance XXXX balance continue we of to to for during the quarter recurring year. expect our

note pro segment. next Technology on to basis. go that Mortgage forma discuss I'll where Let's revenue Mortgage Slide revenues XX% grew growth first comments Please in my are our the year-over-year X, Technology quarter. on a

year. trends and and transaction First base. digital improved again prior technology, our our origination versus to subscription the once tools, analytics, sequentially our for and new conditions, both solutions all to expand such closing XX% revenues technology continued our and Recurring analytics quarter contributed millennial year-over-year. increased increased demand Favorable adoption in revenues Increased as of XX% accelerating origination results. strong financing workflow homeownership customers

range XX% sequentially around versus We between in representing the revenues prior growth expect $XXX and recurring million to increase year. the a quarter second again million, $XXX to

reporting These to reporting effort our targeted now and single revenues with our we merge improve markets, registrations. initiatives an business are in note, addressable better solutions eClosing a a revenues align transparency both as include As closing will our from and line.

represent market. closing already a Our addressable XX% over solutions today billion of $X

that is the per business Ellie same We billion share. today invest line. around we earnings of to represents In addition, business operating call. $X flow revenues, the our In This customers. strong our TAM revenues the during and of time, we've the deal once start. to and adjusted into moved technology to off we again our in highlighted processing Mae continue summary, At our business XXXX network meet XX% income, origination a cash grew needs free underwriting

As great I work help XX to a he started. new an that all Jeff enhance finally, to great to But handle colleagues. result, hand you the a years also the a we've today. business Warren privilege been set of you. the team. growth It's thank I for build congratulate returns will to and this XXXX and continued shareholder Warren gave opportunity. I and want He beyond. team stage ICE part to for on as and I Q&A And success. wish thank want him me role want line before it Ben, bottom and in his Ben, ICE and alongside the to over honor ago my to top

Ben Jackson

you, Congratulations to to turn you, Please and Thank call. on to X. good the morning Slide everyone Scott.

we from begin highly emerge COVID-XX in volatile to experienced As the environment XXXX. pandemic the we and

energy enables or on ago complexity together by Murban, has the energy of most Natural And Murban, the across benchmarks serves and an open Asia. expertise began Dhabi, the important the customers a XX,XXX of through oil they firms a it Gas month, quarter, into successful investment ICE Gasoil, European to gas our in transition. each technology in and digits and Murban market network innovative lots trends, network Abu us and provided participants the benchmarks. crude such with By of nearly now Futures traded contracts capture In history. double energy oil growing oil. cornerstone of XXX,XXX to acquisition number enabled grew we grow that first volumes. the markets to the WTI, through futures first price the Today, it's time the of growth our In Brent in risk. and Index. alongside JKM and to a network, related leveraging Asian of its and as recently, trend the year-over-year launches evolve continue for come decade to as of that our importantly, our for record to markets markets, continues global launch IFAD, global solutions along reach as investing formation milestones our XX gas first Our and deliver globalize, customer our making complexes TTF just TTF benchmark over gas to RBOB reached opportunities global participants industry's includes derivatives navigate interest over our one most with key to secular In growing manage important crude flowing contribute in futures global uncertainty such continue rely as has

environmental to the digits evolution growing energy strength In our gas. interest our Climate carbon drove over the underscore to years significance reach since. product offering, to up levels leading our trade the cost XX% every required positioned quarter. strong, goals first Market-based year JKM, a remained that XX emissions transparency European seen on our Index appreciation combining our in XXXX. help Global open cap and Exchange ICE exchange attribute market recognize complex for energy addition, the new such share the markets, price volumes nearly Futures the liquidity This in customers ago, our are network markets. in XX% interest We pollution customers open mechanisms, the and a By with in and our environmental grow are help natural navigate enabling and to is ultimately their emissions And our price global respectively. to properly continues we transparency manner. well TTF record complex Carbon global In this trends average formation and to critical have of the of we global as acquiring to across cost-effective and price contracts importance with year-over-year along price of of double environmental and development

Moving our income to business. fixed

revenue markets electronify income Income deliver and data fixed comprehensive investing to continues Fixed grows, growth. compounding As passive platform our

provide nearly and day. quality price mission-critical evaluated million real-time transparency for Our X per securities end-of-day prices

a consume enable are in Additionally, our which demanding solutions. efficient increasingly customers flexible data workflow they delivery ways, as solutions they more of variety seek to

and built acquisitions investment, we for price first solutions as as benchmark sponsors the our analytics index Europe, solutions business in America to and growth Fixed a suite growth of revenue their inorganic growing across indices, custom the in but value double-digit Bank drove data, the of again, franchise, offering. our efficiencies. provider expertise we innovative Pacific. and we Income saw multiple in including solutions the of quarter, both data Merrill playbook, index our our Lynch Our comprehensive testament evaluations, our that a once the business platform. organic drive broad build global U.S., workflow proprietary we along use is in across strength, broader energy data to such Index Asia leveraging technology, our only Fixed and with we our many of saw our data ICE of foundation are innovative not and Index also This businesses, operate IDC network reference Similar index and switch ETF through rapidly to Mortgages, and Income In to the serve the

every provide. to participant, With our in to a of solutions that nearly digital have market the need connectivity base customer the touch automation we point

network Combined to integrating is increasingly solutions provides the the services, loan. solutions processing our leading technology, of customers time were to market as loan and lead offering, the with addressable billion space proprietary process, positioned required has rapidly origination that moving of well our across leading our very in both seek As and Encompass, that reduce transformation $X are a our can origination known that cost we we origination these In originate unique product Encompass industry closing able an second and by think to quickly manual into efficiencies third-party market analog digital the opportunity to an digital, a quarter, launched we we an bring of platform. alone. valuable to the eClose Simplifile's origination

borrower U.S. for Our to true is provide that costs settlement experience. a the solution a leading-edge investors operational end-to-end overall of efficiencies offering agents, by additional electronic for for decreasing new lenders, greatly improving creating mortgages sale and closing eClose importantly, streamlining will the loan

market. are billion this early and encouraged focused the within addressable on by our solutions out remain demand We $X closing building

to manual intelligence and drive Another no we example our industry Analytics analytics significant are to networks AIQ income such technology document We tools the and reduce market. futures, learning that a our mortgage within $XXX And is mortgage and increasingly of is equities is our revenue, experience mortgage automation. offering, to fuels well across share and is the million as extraction from artificial in business. data machine the less delivering workflow the different. know efficiency at mortgage that can to our than that of positioned data our Through our And and believe analyzers exists business, compare income $X customers analytics innovation credit origination and today. work across leverage leverage in fixed what process data automated staring gains. analyzers, capture addressable recognition we billion data

to now that, of we seeing the can the of is billion result, our the grow is early as are analytics a analog the Jeff. digital And our a days call us And only confidence that I'll over Importantly, at to cycles. with grow solutions revenue demand billion in that business data eClose a in fraction for like $X.X an today and that $XX through market turn addressable we and business conversion. gives

Jeff Sprecher

delivering Ben, you, the Slide the for once grew onset quarter, joining in against turn year's we last which history. now our adjusted grew earnings volatility, and all you the In global us revenues, share, quarter did was operating again and record-breaking best X. income driven this per grew of morning. Please volumes largely And COVID-XX Thank we remarkably, by and the this thank first to adjusted pandemic. company's

testament through to model. transaction-based to asset or technology a subscription of compounding our one results to strategic that our one services, tied classes of not asset growth rate on means Our based it and world. to data, our strength geography are cycle is growth class. diverse of Rather, one of growth and environments, economic means the all value growth with the our combined around businesses the across top The our business

the Over has privilege I've as has of vision. value and of our of financial not growth to strategic by he's the continually has years, provide the had information unique in in company younger Scott championed metrics dozens completed for past and working our customers the the culture the our he's only vital needs XX meet deals our played decisions thousands ICE that and role our have quality provided rooted been XX the story alongside stockholders. And years, culture, a leadership but evolved in past ingrained made strategic of Hill generations for leaders. and Scott ICE unfolded. He were for mentored that Scott. providing of

our will the for so tackle I to contribution, his his on Scott as Texas. of he'll adviser And that's and over closely mentor of to I and our he many want an industry us to his also has life want our worked to next of help Relations analyst Gardner a Scott for branching years in transition for Scott, our the by And dedication continue and knowledge X thank want leadership. assumes of best Investor continue covered for a with our and remain as the record to MC to growth. will established ensure research Warren's build I senior wish and difficult new smooth moves been to as years last on a to officially sector transition a track him duties Warren welcome Warren's CFO. the Head. Scott month, this. prior foundation business and as

the in session, trust conduct until I for the our will best ICE turn over the Chad, to Let to company's the time. With moderator, I'll and my customers to contribution our want back Eastern our colleagues thank at run business that, quarter quarter. to X:XX their me call which their to in history. you say delivering for thank question-and-answer And now their

Operator

will the Repetto go And Sandler. question Piper Please first Rich Thank you. [Operator come with from ahead. Instructions]

Rich Repetto

are Jeff that. so looked what which Scott, like are And we trying But model which it's refi at can it so praise when four and morning, Scott, those we the segment. you then on the be question and dependent but look Good and or lines first ones mortgages? I'm outgrew that purchase on will are originations My and industry are all and lastly, understand transactional, will out. comments of explained well I you and be sort Mortgage how more which ones on spot line now recurring deserved, to been congratulations. reclassified you Dodd And guess the reclassified,

Ben Jackson

never in ago, thanks our observing This QX confirm, Rich. at we are we by saw fixed see, the special for closed have is we we investor do When And back the in seen to you encompass as through future what Ben. that an can in guide mortgage put And we revenue in guide, deal were to doubling through efficiencies. that's X% saw providing when look originally that new just XX-year digital and of QX in with closing grow that to commodities And are to marketplace a put that platform. the did summer what point mentioned getting is That the downturn you're network markets this can we as loans a revenue customer interacting – trend. cycles. income that's closed September, how when that. That's you over in the you're industry you a a said we sales before. Ellie we exceeded I'd we Thanks, conviction the at up, Last we something just implement And X for and last deal. on a together Those network the got transition. that done transaction subscription unique interactive you're of sales, digital increasing volume through the roughly we've get nothing when seen downturn last we've volumes as has model. roughly we've the that new like when grow here a significant but And the originator has we a than doubling revenue. in with analog can to combining then our going our quarter, we customers expectations of that we I in X look in services our that's and out long-term the knew terms you well period. loans like getting lot decades testament QX. loan conviction is in announced QX Mae seen you're able network. QX XX-year more customers with our XX% how versus you're really do And And our space it. and tactically, that what months that platform into ability to, we our continued a when ramp guide penetration what loans we what over in you results your I And is interacting get strengthen what markets And

I importantly, business. that to the choosing they're when services the So a other our cross-sell to their as with solution they fundamentally fundamentally in the as you choosing script, through the is what every those effect, But we benefits also adopt they're our eClose. is us in to get set, manual And digital automate. be They're from network. when as there. customer have compounding be offering, a player well I front-to-back heart is our to script, which us, being a I you And selecting choosing enables and their interconnecting of underwrite, was us AIQ flywheel have part mentioned change to as processing and they to that lungs it ways remove is effect. select our this trying think of more realize interact that's that from them automation such network that ecosystem, To our to

QX gives So as revenue grow terms subscription that's downturns just to sequentially, through to the growth volumes us conviction outperform and this ability versus of grow QX. or what we business to on on quarter-over-quarter did downturns in

Warren Gardiner

going I'll on pretty And to be color the bit revenue this Warren. balanced in Rich, origination transaction Most within and that, is of try a between transaction. subscription – you subscription breakdown. just And versus it’s to line. is that hey technology the give little subscription of

as subscription that, in data and that’s going you the pretty much other side The to to of pretty think closing part – of transaction be then analytics. well. is it’s XXX% closing going solutions, transaction about then when that’s others and And be transaction

of that terms a hopefully, so... helps in but those haven’t quite so we you out yet, bit little broken And color,

Rich Repetto

Got it. guys. It’s helpful. Thanks

Operator

Please go the next Carrier come with ahead. question America. And from Mike will Bank of

Mike Carrier

Good Maybe the taking Coinbase thanks on the XQ. gain in front, just for given you the expected capital morning and question.

Just the investment then on guys you expect leverage prioritizing get debt to in update areas any an are you And your to growth your how pay-down target other for if wanted faster? get business?

Warren Gardiner

it’s Yes. again. Mike, Warren

paying that, started before bit say than down yes, So a I schedule, deal. mean the we we faster debt when of we definitely though, are I were of ahead we the expected been doing would sort sale. Coinbase

You million we $XXX look of quarter, XXX in by also – a used then our invest XX%, and or business. down little that to generated – the close We dividend raised flow. million and cash $XXX debt, to at the of pay about

Scott think and buying – update give get we this as said back some of move is closer we when terms to year. we target I that again, to Coinbase the a this that’s again, as stock, additional a of about more giving will of really you about think will X.X the us said, down we – about proceeds, start kind as we where that think of can of as but flexibility, X.XX, So, bit rest Scott what are the but And buybacks. an to flexibility leverage, into kind you gives little bit do about is with of us in guys just we

Mike Carrier

a Thanks lot. Great.

Operator

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

Ken Hill

everyone. morning good Hi,

with ICE Murban you Abu start had the with know Futures Dhabi. really a wanted strong So, I guys I start crude contract. to

of whether the on maybe little the was you You the there. prepared one talked regions that there? land broader thinking could hoping how in Thanks. there, side? a we about or on kind that’s of you ICE in the most thinking How should of you regions expand and whether about outline success some be and data that there I trading think in on about opportunity the ambitions bit of type East might leveraging I products, remarks, about in Asia, being like launches other Ben, a it’s or the be side successful Middle talked records. those

Ben Jackson

also the or risk point production since the commercial world we any our futures question, the enables enabled And have but manage to are risk to of be you and the It’s where helps risk. consumption help for year, of manage the customer how base able not of our hundreds to that And they on versus of our peers, have that’s around of inception. developed deep we Thanks contracts them with Ken. real at Ben. hundreds a contract, risk. close it with our truly we benchmark the manage literally And moving. past them us point when global at in COVID of develop we look what’s markets stop of their markets platform to customers marketplaces And have oil been that stayed backdrop the because didn’t the in liquid the customers going only only very

most the utilizing led of to And world, to early days, in one growth, just to to few be it positions I like and to We major around launch commercial growth are the one that’s establishing that with ICE the XX are that partner Dhabi, that point fact at of Futures successful risk. look is manage looks business, is would our And only futures weeks importantly, compared customers across volume parts continued Abu what but the the – of also doing in that and the the board what the here. it the launches that history. in of with our last not other well. very open players the interest contracts, oil there there I in – to the And significant

interest oil right in overall quarter, If you now versus compare we open category. in major April are our fourth almost product the every up

versus compare You category. are April April interest open we in every oil almost up XXXX,

year-over-year tough under in If covers compares, the there some from you look is a at there. basis, while

product Dubai year-over-year. significant Refined in gas have as up are Asia We that products sets, oil our set, such

foundation. have we great So, believe we a

going We have more significant are products customer close Asia, that to stay there commercial in base already manage been hedge a And out opportunities to enabled and for risk. so. our do to have to to of very look number customers we

Jeff Sprecher

And this is Jeff.

I think embellishment, get have launched, we now a that to on more believe, we I dozen contracts – derivative exchange. a little

So users quickly, things of a there. suite that was to and if product inferred Asia commercial a you East. out moving broader build Ben your will, question presence one we are is of the And Middle is that to comfortably that operate in alluded large and it in there around in the

point, for additional will, launch derivative interesting an if contracts. us gives it you So

amazing will Dhabi a Abu you that this to vehicle. build out us have, see think suite we So, continue as including I

Ken Hill

for it. the additional Got Thanks color there.

Operator

And will go Blostein ahead. from come the question with Alex Please Goldman next Sachs.

Alex Blostein

MC, to business big for echo the everybody I wanted second. you. Great. to of and back mortgage congrats Warren, Thanks. everyone’s to morning all Good to go comments, a Scott,

would really market growth in that refi projections so the So organic quarter. speak, great be strong. which transaction sales first in hear the hit to clearly about market, be to clearly, Ben, overly above the revenue. remains concerned the cliff, continues your seems But to momentum the to

was could XX-XX, I current segment? much guess, hoping in assuming that to purchases? maybe revenues was we to And this So, us expense that LMA has interplay that revenues, think down. is maybe hit probably come refi see evolved come transaction how expectations Thanks. extent frame Is how versus of risk here. legacy And expense industry related any refinance downside can about I you unpack the the there but mix to could an $XXX secondly, new revenue is well we million you help bucket, I through? here on offset then as transaction the would

Ben Jackson

start, on is hand Alex. expense This Ben. side. I the it to and will then I Thanks Warren will

of different number are look I questions we will So, things to had try unpack at a when the couple seeing. different of that in you there, so – a you

question the had answer that first, So Rich’s go back for to to. I is important

that we customers are long-term have is interacting on, that XX getting well loans, a We have. we or and of quarter-over-quarter about we continue worry just So, a to the after the of those revenue, The business you network. a roughly to And getting a continue new are see at our at each look runway, XX% to are at go interacting with there transaction we We XX% are quarter over trailing have we more them. is we on looking where there that. of that towards as more each have, TAMs to change network sign loans substantial opportunity place only and if core customers, TAMs starting months, see are services TAM we volume, with very in really set that happening are growth as a new but little when subscription volumes in that out digitization. are each we because we positioned this those you we look not being lot afraid not and are for onboard as changing believe that’s that we we more of long presence Encompass a have that that those our

really two thing TAMs other opportunity. enough a are can’t I is the emphasize cross-sell The other

to our from to the point the already network. closing our systems touching that’s network we our have customer are that network that origination loan acquisition some interconnected now have and point-of-sale we We in at

touching are ecosystem. the every mortgage player in just We about

services So, is our a new to ability sell these cross-sell.

offering new we TAM, very closing positioned very TAM – a significant that. after closing in have we are the of a uniquely itself. actual our of to amount that’s very, good of roughly automation launched the we then the feel against XX% about position underwrite AIQ, that we eClose process to But grow with the the that today. which So, have more go on And the

is banking that’s when large have because about there nonbank that purchase customers. they around sales of look Encompass tend side, you a industry network. point of are one versus the little towards a originations at look seeing again, is slight our it to to purchase. the A we refis market – our their on tilt at you with We refi. benefit in that originators our edges mix more have banks services We And we their a nonbank with banks network, established from of utilizing people record a every see of continue a with. towards market one to just bit is cross-sell the relationships there. towards which, core lot platform, said, tilt to are When that on comes it’s if just that tend to player do our originators volumes But working they loan and more – of moving product, entire

Warren Gardiner

Warren. it’s Alex, And

the on quickly expenses. Just

particular this quarter. expenses that are there in isn’t about So, Ben a definitely XX-year or are some things this about a is from doubling as of But strategy about second would variable probably today. think there. spend, This revenues plan you or of comp, where nature. half we normally What about marketing isn’t said,

talked year. to of when should We guidance still going think I we And invest continue in that kind should million, the I to million gave to And expense, I business. $XX incremental so say. of at about start think, the $XX that are we

of And of think, quarter, second eClose like the into so to that expect, I as looking continue as quarter kind fourth investments kind of ramp things you be some things you pick up that kind that’s what quarter, expect are still and like nature, just and to third steam. of

Operator

will Bank. Please come And go Deutsche question Brian Thank ahead. the with Bedell from you. next

Brian Bedell

well. morning folks. my to MC Good Warren also Thanks. as And and congrats Scott, Great.

of Mortgage course. of two topic parter, the It’s on again today, Just Tech. a

you that on versus Just And origination, of that cross-sell revenue just – revenues then Ben, the network recurring can in the part in the if terms side, strength of into gains share is impact side. synergies of the the market on second base? revenue touch – closing

revenue the there run $X is you TAM. rate looks I of million. said $XXX XX% think billion like It

So, want just double to check.

be I using there. sure So am XX%, that I denominators would different but am

business? wanted to then and the check Mortgage on your Technology rest versus on closed growth in just So, optimism the that business I of the the

Ben Jackson

Thanks last part will Brian. first. that I hit

it’s rough am looking the gauge XX%, months, that at on and So XX on the last roughly piece. a I

you of The there? the what first part the core question, are repeat of for looking

Brian Bedell

the segment, basis? better you gains, so that of better – getting origination core more like – Mortgage from the being what’s Encompass The across recurring in actual banks and it’s network financial a into in Maybe penetration coming is of the Encompass from share synergy gains market network cross-sell on characterize versus can Tech especially mentioned have revenue technology. if that the from you

Ben Jackson

Yes. Sure.

adding seen of confidence are well Rich, the And new and platform, answer and subscription footprint that very mean to gave So to they quarter-over-quarter, will more sequentially are I go – to can next I that, footprint have us. falls what about the gives with sales they the recurring results and that on that that they with ahead continue fact in revenue we have And what so volume platform. their new expanding expanding mix way results guiding have the we – us And expand on that as cross-sell we quarter that, is seen is to a do recurring that line that that’s loan customers item there see with are as line revenue that us. officers, quickly. they us grow growth in their to that with revenue footprint first and and their when we pleased their the recurring that think

our we Mavent customer It our business, The have that could so we our base business, you be other services. see importantly, very that to second they AllRegs of and have. other that cross-sells our expand services thing is buy AIQ products

our customer are into as very cross-sell So, base. we that seeing a high

subscription require so a implementation the are Some acquisition. may it, that’s we customer a after new we of And those revenue services customers, element. lag seeing before timeframe, short sell new other then be there comes. the But

subscription signing QX onto sign a customers platform, customers as budget new As implemented. both a in platform, our do the expectations, QX terms they but it, those line. then when with that loans to that’s our building original when that long, And we there and It’s in implement some to start And the I and in on then then see then see and well QX transaction start the model it, customers. that. and interacting so the build ramp, network, new gathering cloud-based is platform. new customers the the we our then lag need be between we implementation loan last of to transaction of onto volume more those quarter, and volume then when isn’t exceeded drops terms record mentioned well sell as our And once we they to

Brian Bedell

color. you. Thanks. Thank Great. That’s great

Operator

with come will question Ghosh Please Ari next the go ahead. Credit from And Suisse.

Ari Ghosh

Hi, of Just just Maybe kind good of so expanding levels in leveraging billion about with you, the quick present? of Tech. $X footprint of Ben by not much just Thanks some or their of to usage and and that what’s at a data and so subscription a we about these so highlighted, their acquiring talked captive that much. maybe services footprint, you these follow-up, just get morning ease customer of utilized Mortgage about subscription customers analytics you talk the footprint? everyone. customers data you Maybe think analytics the TAM growing penetration products data at customer on can current penetration these that Are level a competitor base, sense workflows present? as a

Ben Jackson

It’s Thanks Ben again. that question, Ari. for

area versus when raw you TAM. look So, this the an the numbers at is just

very obviously stages are early here. We

executing manual our pickup it’s good the are offering That’s take That’s seeing quarter had really this some exceeded and QX area we record the we couple of really we have we what versus the look calls of why opportunity are in current highlighted cross-selling out see of it the if a $X into this base. in another AIQ is of core billion And a we the last sales base. X% as the is we you So, our fourth that TAM across where this this to at have it into here. why we well able TAM, our script. had quarter. against. have third is Encompass ton We revenues near-term really in And to have customer that X% you customer what processing. of of And a service is our enables where expectations this

on mortgage have compare set that, in manual $X,XXX know to customer a AllRegs we into are what of is we out And have it, qualifications documents, out okay, this our technology, estimates it data loan criteria the that by that $X,XXX what our that data have that it of extract we our are – processing. qualification a able take of of put business, product, We depending we automated and automate the document whole that it the our the database just to about recognition income and to because the manufacture entire that expertise that. for qualification are on are particular of reference and information, for, of, credit product extraction top applying but exactly to also set then putting today. mentioned first And a costs applying is say, we as as the we

work application are manual getting So, we in lot came the on that against coming we cross-reference as customer of versus that what’s verify are to able for and a of to our particular steering that the criteria original can in apply we compare take documents information what product. also are comparing

So, adopt starting feel great are of as about are seeing we but are we it. this really early, it. benefit It’s customers getting they the it, to

part, again, just the to strengthen are area. are into are peers, in their this We customers we most seeing a it’s and industry providing our funnel is seeing catching from continue our this other cross-sell the base. benefits for And in word-of-mouth from existing that real

Ari Ghosh

again Warren and so MC Thanks and it. Got as well. Scott, much congratulation

Operator

go Thank Fargo. you. Chris And with Harris the ahead. Wells Please question be next from will

Chris Harris

how bit about alternatives why ICE On be win distinctive are Murban Abu you Asia? talk little some that of might for targeting benchmark will guys. out other Thanks it a the there or Dhabi, can think you

Scott Hill

question. good Yes, it’s a

were located In need near that price grain And then of to hedger of roots the exchange fields. business a was elevators oil, at commodity buy the historical the to natural near where case price a as would commodity movement somewhere the of And words, priced One sort locationally been be source. from commodity of or it’s would the in to hedge. has the tend electricity grain at an hedge exchange of other it near a energy, produced. that top contract on add hedging on gas standpoint, they that a then hedge or it’s their transportation

commodities credit we so the that and futures clearing – the of And got on risk the these clearers have risk, their into price organizing we as exchanges houses, customers.

the And exchange, doesn’t the it. if it, it will, in have price so in risk and customer the you doesn’t the that credit have delivery commodity risk determined on is

near a it’s sense, pure where in it’s produced. commodity a So

Asia going so their in the growth delivery. one exchanges tensions forming of up point of and that’s the more on the And the all broadly, pricing of we China with is product Asia, that of market, particularly at and are

And commodities. so that’s if will, for a traditional different paradigm, you

at us fact Company recognition one Abu had of Dhabi, so And the that the risk strong point continue commodity the production. the And was to the work that of with pricing that to by Oil of they not began State of back producer reasons being transferred price actually the pricing control of the the desire to the – of market having its a to contract. a or control delivery delivery commodity of have the

the was And in of motivation, Middle East the continued and the that East. infrastructure really the Middle of the growth modernization with along so

will, And have of not between like place us the the East of just interplay seem reference. a Asia for and if geographic there good the and economies to Middle surprising. footprint really very you so Middle And just it’s location, growing because good it’s the a the and East a energy also

fully global that this world. that working done our can work And playing underneath of is to in lot footprint, us imagine. this commercial you not to surprising talk around as actually because of dynamic are because We launch, favor. really, able users was to we But historical a it’s have of the our

Operator

Thank to over would for like remarks. Jeff this closing the Ladies gentlemen, back our conference any question-and-answer turn and to you. I Sprecher session. concludes

Jeff Sprecher

have to this call updating to company as We contributions innovate. that again Chad. his success. you, day. want forward want we amazing I for here to you to Thank thank And And look with morning. the great close continue execute a for and we I everyone and thank us the Hill and to Scott joining the all will for

Operator

The sir. you, conference presentation. concluded. has Thank Thank you today’s now attending for

may disconnect. You now

Intercontinental Exchange (ICE) 29 Apr 212021 Q1 Earnings call transcript