ICE - Earnings call transcript Q4 2024 | Intercontinental Exchange, Inc.

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Operator

Hello, everyone, and welcome to the ICE Fourth Quarter 2024 Earnings Conference Call and Webcast. My name is Lydia, and I will be your operator today. [Operator Instructions]

I'll now hand you over to Katia Gonzalez, Manager of Investor Relations, to begin. Please go ahead.

Katia Gonzalez

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

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

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

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

and this You'll indicated, materials. presentation, definition earnings diluted notes the a adjusted regarding additional per growth the constant When to the revenue refers are the prevailing details basis. share. revenue earnings earnings this second earnings on to Throughout on explanatory Please in page expenses certain of items. call, see for on unless net our net currency find adjusted references a used revenue refers supplement of to otherwise GAAP the reconciliation to terms transaction-based of

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

the now turn call I'll over to Warren.

Warren Gardiner

XXXX in I'll Thanks, marking an Katia. record Good adjusted share Slide best history. the our year on begin today. with of company's for and X summary increase thank us morning, year-over-year, totaled our results. Full everyone, earnings joining X% a of year you $X.XX, per

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

our in now operating achieved an of a Knight, XX $XXX and roughly have adjusted expect Black we million $XXX reach just totaled year-over-year that XXXX. months synergy run end It's basis. increase million target by year synergies full rate of on of worth the following of to billion, the noting expenses close Full pro forma of X% $X.X expense

our million. drove expense of raising adjusted year-over-year. also are increase $XXX operating Black we strong target performance addition, an billion, to XX% synergy Knight of $X.X In record full income year This

performance of EBITDA Moving billion, year to full the of versus through operating upon which record $X.X generation. cash $X Black billion shareholders late flow to we XXXX. free X.Xx contributed to dividends leverage reducing Knight in also This X.Xx under returned cash close of to our while

are expect we EBITDA. on this leverage expect reach will now expect of Recall of deleveraging result to made quarter. we we will Xx this the occur target, levered, we levels with track balance achieve the begin first a that on share -- As we significant have to later that expect recall we continued shares repurchases year. in progress still approximately until repurchasing we And and which

$XXX Moving discuss $X.X of year. by to totaled share fourth $X.XX, performance. of X, increased driven up last revenues Slide adjusted $X.X quarter per transaction versus and quarter million, I'll costs totaled million driven net as end at as revenues lower range our recurring of $X and well guidance spend acquisition marketing expenses the quarter reduced adjusted the Fourth $X.X NYSE. our Fourth year-over-year, billion earnings revenues Fourth below billion. legal operating X% XX% billion customer of quarter low by

respectively. interest revenues $X.X Transaction year-over-year. segment. XX% overview move I'll by totaled of of billion, to X% up XX%, record and up global energy revenues our the were an provide in driven XX% Exchange X, across revenues Fourth quarter business, in where part $XXX million of net which rates let's Now performance Slide year-over-year, grew our

year. were and XX% increased increased and our the up represent by XX% the our energy year-over-year, global environmental full while which gas in within revenues, of quarter natural products, nearly XX% Revenues complex for oil half

XX% a In XX% volumes in XX% our year-over-year, energy is start XX% including year-over-year interest and rate open addition, in growth January up global off strong and XXXX to growth total increasing interest with business.

revenues, full we listings driven $XXX true-up totaled data NYSE, in which our services The by will sequential data was not decline include largely and services business, in a exchange revenues the year million. Recurring our our NYSE tape at anticipate exchange onetime to XXXX. do which repeat

and in result, that we a will the million to range first expect rebound to revenues quarter. As data $XXX exchange connectivity million $XXX services

global companies, of list the operating of NYSE In our XX the our listings welcoming XX on top of to in XX top new to than while IPOs proceeds, standards helped less raise XXXX, best-performing including business, exchange IPOs billion X X the the in new half met $XX and IPOs.

Exchange we XXXX, largely segment our single-digit growth grow recurring will in range, futures that data to low the expect by services. in driven our revenues continued in Looking

offset lower to now & totaled Within Fixed Fed towards muni of CDS offset relative tax levels while activity revenues in harvesting business quarter Fourth of including institutional I'll $XXX was revenues XXXX. Turning Services cuts segment. Slide discuss growth Bonds, $XXX our X strong million. our to X, following loss end Income Data transaction ICE lower activity interest XXXX corporates, clearing member by the million, of within

and reference driven Recurring revenues quarter and revenues increased quarter in of a million another by income and double-digit $XXX growth $XXX our by data X% record growth analytics by pricing grew year-over-year. business, X% record index business. In and our of in totaled million data fixed fourth

desktop Network continued in data Other for by quarter X% continued ICE network feeds by as fourth increased Global services offering growth both in as driven well our and consolidated the also and revenues our solutions. strength

growth quarter [ Fixed year-over-year, fourth Income and Services ASV we the mid-single-digit supported XXXX Data in Looking by recurring revenues. & anticipate X% our up ] an that exits to

discuss our quarter above Please totaled flip revenues end million. the where $XXX the results segment. slightly X I'll revenues our totaled Mortgage Slide range. to Fourth high Technology Recurring of in guidance $XXX million, Technology Mortgage

analytics our in our solutions improved growth and basis, quarter, down on While and a both revenues servicing year-over-year data third to the by relative driven business.

minimums, Encompass higher recurring was at the Similar reduced offset in revenues quarters, minimums customers the customers renewal. renewed majority somewhat at by improvement that of to prior while

according XXXX, to Mortgage each relative but, anticipated, noting purchase that due continue Technology, to impacts were year. typically that on to to home a as levels down we revenues the in rise, of annual of Transaction housing third worth the market. dynamic the year-over-year continues since seasonality ICE as in million, inventory It's a see fourth $XXX slightly to to appreciation both totaled quarter stabilization and up price the basis, up quarter first signs XX% market lowest XXXX. slowed and XX%

by The to MBA, that industry part range, where both the grow XXXX is and the will to the for end ends guidance which anticipate revenue with million achieved IMT of in portion flat in mid-single-digit due revenues levels. the assumes have anticipate the range the synergies of in high online. a recurring low a low of end teens volumes, we Mac, origination come beginning of conservative range XXXX. At Freddie range. total to Mae total growth expectations in to We revenues by in is growth that more underpinned backdrop we Moving $XX similar origination Fannie part to low the single-digit is set in

additional some Please I'll flip provide to Slide year full where X guidance.

years, billion, business, increase billion be our and our to these expect we our roughly by the to technology $X.XXX across We offset $X.XXX and investments X% adjusted people, of in operating Black XXXX between expect an expenses to initiatives somewhat synergies growth at midpoint. Knight. year-over-year to related invest with prior Similar

range XX%. Similar to in line. the finally, And the the XX% full CapEx $XXX currently of full $XXX below expect we rate will Moving to year, range to to year million. of in be million last the expect year be tax we

As acquired as invest asset. case in to is reposition typical the years in CapEx following expected an the is slightly be and the elevated we acquisition,

to investments, investments revenue-related growing capacity. footprint we make demand additional addition datacenter IMT-related In these customer our for in to also meet will

to finish summary, reducing free income a share. we revenues, adjusted We significantly flow our year also across of operating delivered leverage. business cash and In while per our another record very earnings and invested strong

and focused delivering XXXX, As we once off on, shareholder value. again, kick we're growth creating

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

Benjamin Jackson

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

we've our and and trading to Across the scope flexibility worked precision world for X over the to of both out our customers and for in allow wherever offering build ICE. markets, from multi-geography depth multi-asset on futures choose decades trade to

XXth over record and year This performance in XX%, strong billion X traded options in XXXX, contracts a and million futures the revenue to futures a commodity year billion in of ICE a highest contributed the which interest grew result, in a of contracts quarter. consecutive the record fourth including XXXX, $X.X on including ICE's As volume marking history, record rate XX% record contracts. $XXX

globally network customers, is energy and management demand. have global needed we in the meet evolution across to All Across markets. By this commercial the evolving saw transition of solutions, customer critical that needs interconnected platform serves alongside provides growing our to investing we price markets, capital comprehensive providing and and energy delivers while diverse of the positioned better efficiencies to enhance importance an closely working transparency a and forward-looking energy risk that the energy of with leading to continued grow our spectrum global continued navigate the the and our base. built energy

was billion, confidence hedging XXXX growth choice. averaged Over across markets with annually, continued customers' the revenue global record our venue strong the of in a as performance energy to years, up last is driven and ICE by year-over-year. volumes record a $X.X energy This has XX% growth X XX% reaching revenues testament energy

such offer benchmark our In we contracts oil Brent. business, key as

our by grew contracts roughly highest As year-over-year. in as complex drive and was revenues records the XXX evolution business, oil performance Brent enabled of on world's global us have prices XXXX, underpinned the to customers. our product internationally the to by across year contracts. Brent relied and cornerstone commercial crude gas customers for benchmark for continue traded This strong oil today which on total delivering the oil oil crude global our across serving includes This locational growth volume over spreads the global and record including and and X/X ICE, XX% of which benchmark oil, innovation traded serves

refined In Murban become volumes hedging liquidity greater also and customers that in across precision. trade not including other products addition, Platts complex, only with up provide dynamics This in and are major contracts. is records seeking evolve as and our by in our products XX% illustrated the activity dynamic XXXX benchmarks, crude trading Dubai global increasingly year-over-year, record but in

the global LNG. a underpinned alongside greater gas consumption. global LNG oil globalization of rise number motion natural or has with put from sits gas where commodity production is ongoing chain the gas natural value The over our of this of liberalization along the liquefied in touch natural of market Our the more distances markets offering longer by points to

source complexity gas complex versus grow relationships layer the to that gas are extra This in in XXXX, coal. In continues likely gas with natural an and which sustainably the the market for secular has for adds the for demand undeniable and suite. increased since and our time, fossil adoption increased same that demand move new fuel essence, goes fuels opportunities Trends future. demand, by XX% nearly participation it power product and energy to associated to in global evolution this trading record gas for was support a the as creates cleaner this to global develop illustrated At XXXX. foreseeable of datacenters growth that overall our

business record providing benchmarks As expansive last This of delivering gas range globalize, by and in our led gas, natural strong of of TTF, revenues Title gas our which and evolve XX% chains benchmark, plays the as a natural have year natural another is Transfer Facility price in in signals. XXXX, quality increasing versus Brent global the year. or revenues critical evident, with our was supply positioned record role of performance we

participants TTF result, digits average and setting the upon XXXX by participation highs new on market increasing in a an to number and continues each volumes past As both over relied market of double be growing years. with X

the over where reaching Japan-Korea year-over-year. the has grow half double and Marker, X market on a energy supply, coal of region's our XX% JKM, still seen increasing Asia, nearly accounts past digits for XXXX years, record in In average participation

the markets As highlighted once coal, a in the gas JKM This X/X JKM has caused volume dynamic to and North global via again to trends Europe across the cleaner to commodity America, management with risk needs Asia accelerated alternative increasingly of spread. natural related by volume quarter interconnected. the become was execution fourth the executed and JKM-TTF

XX% markets, year-over-year, demand America, gravitate as markets, hubs volumes participants supply regional in our ICE grew in America, ICE's North towards and our to spans across basis market customers manage longer-dated along basis allowing linkage to our including complex North contracts Henry with Hub In the continue offers regional tenors, across for the to dynamics. record exclusive liquidity volumes XX which

Trading provide first our the our markets, energy transparency X transition. spectrum were global nearly power customers clean which and alongside launched in price across critical environmental that oil, is leading gas markets, energy navigating decades ago, the

year. record-setting year over markets. XX% contributed seen the consecutive American over for prior the revenues environmental Here our the year-over-year, record the increase value XX% up grow market past These we've across another complex participation digits X were year. participation in $X in up represent in At notional XXXX fourth the record volumes environmental in XX% year of trillion including volumes prior North time, in to versus record the average years, double and on equivalent led by XXXX, versus same a

we of asset is markets value our and evolution continuously to energy how invest solutions drive the summary, classes creation. one develop of customer-driven example In across

is performance record some product investments, that more a decade we've these a Our than of made ago.

deliver our & revenue Slide to Services continues fixed data our business now comprehensive Fixed on to platform growth. compounding income XX. Income Data data, by technology investments both Turning in and multiyear Driven

rapidly-growing position America-Merrill reference our built and foundation the price of Lynch our both of investments, as Our data served including index and acquisitions provider Index for solutions organic such the many we has leading inorganic of business as Bank innovative through franchise, platform. and IDC a a as

XX% to income Collectively, In the drove growth analytics and X% XXXX, in indices, assets up performance key index in our business benchmarked driver management A ETF digits double fixed business and across growth PRD year-over-year. ICE increased our strong was under revenues our in index in business year-over-year. data XXXX.

prior enhance on functionality past In services returns across addition, versus made content investments business, year. in see to XXXX X% we continue other grew to which our network data and and

to enhance elevate commodity sources and to the contributor high-quality an of content our firms has in business, unique and displacements to feeds, sources XXX high from to our area consolidated investments This data, institutions, large financial within accelerating as range example, competitive and offering, key was data stands new single-digit our a class fees multi-asset our different benefit. revenue in a by comprehensive data this With energy larger As led we've on including including and content, over growth a seek manner XXXX. access in of adoption more offering made available from to cost-effective now incumbents.

on Finally, move insights but expertise add continuing data markets to in and forward, our as the we cleansing classes. to leverage gathering deep not focused remain across income we unstructured and actionable fixed to asset only develop transparency

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

datasets residential which ICE ICE than Mortality Data for and We daily went with Indicator, more pools. MBS live signals across produce MBS to leverages Mortgage our Services Technology agency XXX,XXX trading and also

mortgage our proposition we because will our business to create early for analog-to-digital offering income and classes efficiency Mortgage products now asset effects. target We on and that customers. network and are the XX. network ICE greater conversion automation exchanges believe Slide of Shifting an fixed stages from gains value benefit Technology's classes excel asset businesses, a by enables that in our these strong Like

gives leading that market the grow kind business in connects the today, an a of unparalleled $X that, addressable analog-to-digital our combined the us where mortgage different no of that stakeholders one fraction an a single and network business in a ecosystem. seamlessly is ICE key with connectivity a end-to-end hallmark model only industry that, we've confidence at That can we network solutions, that's billion days within of is of early This digital is in conversion. billion $XX constructed

workflow. In the inefficiencies Encompass. We with Black on make Starting our executing the and integration client on strategy of successful pain relieving XXXX, XX Knight we on and the points continued infrastructure across mortgage pleased closed the to in of wins year, Hanna fourth on have quarter And to on their and focused workflow our to Howard we're modernizing and off as announce Encompass as that signed customers efficiencies. clients. the Flagstar kick progress

on to this delivered the we enhancements innovation. are several pleased for manufacturing, parallel, In see and year, during Encompass clients support including last of adopting multichannel web-based launch loan are to

solutions into complete and marketing We and customer acquisition industry-leading automation sales retention also our suite. one unified

enabling customers Then platform, customer into directly, from lines, Knight to XXX more on Black customers the We leads over in right pleased offerings, Encompass on to This Encompass, early mobile application property products into data tax, and and clients at cross-sells drive service with are lenders efficiently over customers to our on with we lender the suite of closing. our choice embedded closing cross-sells workflows time providers to fees, these to also same right including Encompass we XXXX. the added to helped by providing and XXX acquisition the XXXX. support executing target platform. across flood Encompass through Along in integrated of clients their traction datasets our a into these our identify borrower-facing manage

throughout thousands Along our XXXX, showcasing to look upcoming with our Engine, the lines where we event, launch we annual our or of enhanced year gathering our ICE at of our of and Experience an consistent and ICE ahead investing clients. for and innovations forward enhanced secular and same dramatically approach of this growth, PPE, each new Pricing customers Product offering enhanced

to cross-sells were For MSP, clients. during roughly client wins new Encompass XX% the year of

loss MSP time, in the elevate MSP of interactions DX. capabilities. service We MSP within help or tools integrated only enhancing for same but At the customer mitigation, designed eventual streamline we digital our in increase and defaults experiences, clients not our enhanced and customer These and including foreclosures. and significant prepare rollout operations, to also strides collections continued embedded functionality experience to the make

Our to why functionality and the analyze the in to example, customer friction a improved as experience. prediction allowing reach decreased account provide an our And customer call service reduce homeowner. agent customer calling, a service customer intelligence the uses resolution is the timeframe the artificial of to and enhancements prediction

Intelligence, all through Intelligence and them being AIP, aspects marketing, Lastly, ICE wholesale planning and production, Business coordinate pipelines our to manage configurable the robust will have view enterprise. able including provides suites sophisticated reporting closing originators tools that of on and and rebranded compliance help for dashboards is of and or be better portfolios manage Platform, in servicers. across Originators sales, correspondent. retail, will will and analytical as capabilities channels, activities Actionable which all based to capacity including risk Servicers management, the process

stay delivering announce we in continually top agile to insights, help institutions opportunities can see continue financial a By competitive our pleased other this evolving systems it signed timely and depository and of In regard, engaged XXXX, to this we adoption. based Intelligence and will to while in help that market, Business X seamlessly clients onto efficiencies we on the integrating with in are ease platform all revenue service actionable enable existing uncover. solution and suite that a for

opportunity optimistic accelerate pleased In of and platform to analog about summary, is digital marketplace, the resonating the comprehensive conversion. in value to are to long-term we the remain we the our see

With that, to I'll hand Jeff. it over

Jeffrey Sprecher

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

IPO we track to exchange, in the the to serving energy handful and XXXX offering revenue. what we our ultimately million Over efficiencies customers. of drive to led Exchange, and of energy we and first pursuit of better reflect Stock an workflow where launched on vision at markets, our vision were for products transparency with this create execution mission New us purely only a a ago, to of markets, would Exchange, X name decades York time generate Intercontinental The a be $XXX total our global chose on

looking efficiently build products and breadth remained the innovation they was core In Our had strategy. technology it, seamlessly to countless refurbished and to to on flow operating distribution customer-driven platform new operated asset our technology, core built and growth the emerge success remains ahead has that world. opportunities old product new us on around to scale class opportunities. a to platform, efficiency which content along the today, chase leading and scratch, goal acquired then, enabling technology build of enable from our global it the through way, as our a since, all innovated global and to as while We've a us developing new and years quickly focus the businesses that on

global some on many business array built what and In marking XXth energy It's XXXX to ways, consecutive more a than and on year-over-year as as in growth. billion to annual XX tripling model, in is refer XXXX, year-over-year with years deliberate our a growth to Through HOU through increasing this years, flourish business investments political continues all-weather of contracts. and record leading that of we've revenues since XX% drives just increase how $X.X others growth decade prior with our revenues, XX% environments, than often record an that, contract, top an we $X inorganic organic our XXXX one such that year billion. of more than spans X,XXX of more heard, as regulatory later, I top economic, today our XX% recent made, of ago a network to Midland you've more

as bank we our energy a that trade central interrelated an such targeted to management both collection as affect supply cross-border markets helps issues business and customers to on risk risks acts foundation, chain associated of that the commodity manage flows, of nature, powerhouse policies. of man, create as acts our and such Building global

continue London to exchange of from at these all our broadened role it combining interest Exchange, play own subsequently record offering and through the rate resulting key for And as Financial Futures house, forces. commodity LIFFE, as XXXX, well XXXX, complex acquisition known clearing in of to traded commodity market levels. contracts the participants. as local that types with derivatives our our International our In global both highlighting the and manage the we risk markets

banks Across European, XX% diverging paths of Gilts. our in multicurrency These growth versus XX% was and Swiss our markets, XXXX, rate which consistent throughout fourth the the and central U.K. quarter. theme the key interest a interest benchmarks SONYA, record revenues, rate XXXX, contributing including by contract rate results strength to SARON including highlight portfolio, increased Euribor,

XXXX, markets In laid acquisition since move instrumental data passive grows. foundation to and for products, income a of these into one nearly our proved IDC investing to fixed development revenue and of our and institutional-grade the be evolved unique has the growth that into comprehensive deliver continues XXX markets platform as compounding that automate as

business, has the than timeframe. our our In XXXX, billion the end in growth of $XXX double-digit average annual over index $XXX to less benchmarked revenue key a billion AUM XXXX at to from of ETF driver grown indices that

position to income decisions success. strategic an to data ourselves Fixed continue and area for where its we is make related

complementing customers that of our and index business. network early community Mortgage ICE we U.S. in AFX acquisition launch securities natural fit focused lending exchange ICE's American our for intention network, and making same AFX, announced mortgage growing AFX repurchase regional, in to Financial service we expertise financial institutions. and both clearing. our serve the bank on or agreements, covering and for at For and all customers, infrastructure announced in through XXXX, many And and clearing example, an treasury midsized the for electronic our borrowing we our Exchange, of direct banks January, Technology a American has centralized leveraging and a

executing in manufacturing to the mortgage Across to expertise bring our as this efficiencies pointed like to we all collective mortgage make new relationships and leveraging business, against the our entire Ben In while customers. continue classes, long-standing other added also workflow. to to homebuyer many capital from asset identification network out, deepening our XXXX, the strategy the we much strides digitizing our data, mortgage we're with workflow the technology clients markets. And strategy, way through

world's the to in XXXX power U.S. could to to tools. demand U.S. beyond, need new global increases multi-decade in and pledged the Japan, that particularly exports pricing we and growth, managed. energy energy growing resultingly, energy of As believe dynamics administration Asia, the supply energy U.S. and, transition, has management market-based production, look trends commodity use all will of increase change We point that nonlinear the energy chain supply, and the to risk deregulation the in the which be risk

And with U.K. EU impact well inflation we policy the XXXX. as rate employment, the and will could Commission, new governments for risk decisions that in continued expect interest in as which in management U.S., demand novel drive and

particularly equity this these AI thinking investment demands uncertain U.S., potential continuing Also about the rate in when the current for need robust the markets. environment, and in further trends the for by commodity trading policies risk bank coupled interest with central could energy sector, while management stimulate to

to own and and by competitive underpin unlock customers the to be collaborating of our operating the and to advantage the fixed the we of placement, workflows network units. navigate that proving customers thinking our across business evolution long-tail providing technology infrastructure our leading opportunity and quality markets operate, income that our additional expertise, commodity the digitization automating of growth helping mortgage it's From forward

secular we're these on many opportunities believe and we executing are to better We us. that in asset and the capitalize trends of ever cyclical on positioned classes, on remain front growth investing than that across focused and

a quality ICE years, operating year has consistent and vein, marked provide stockholders. consecutive XXth the XX evolved of In industries than XXXX year to a value for share. revenues, the to record every reflects more and public position an on of for been record record the meet some record largest and drive that our business our is continually strategy adjusted company to has income business at since center our all-weather the diversify of to summary, per customers company. we've continue model it created of This that needs In for positioned as earnings of growth strategy our analog-to-digital the of well has growth that the undergoing conversions,

my another thank trust our for business that to contributed thank yet and colleagues and to for XXXX, ICE. their customers their like at year to want in record I'd the efforts I

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

Operator

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

Kenneth Worthington

the new back-end all think When closed. new as a when we new MSP to guidance cadence period XXXX? and a lot client there give wins after sort sense a in wins does between at of to Knight of mortgage, we gave about limbo the you that live seem and servicing wins and this at contribute big the for same customer business customer was how up time, for of look running both us announced side, going And and would the Encompass? on the origination loaded you year? front-end Can Black the of getting us new they loaded, of the be Are

Benjamin Jackson

is part Ben. last probably this start will that I'll then take Warren of and question. Ken, the

then number So that ago. recall, MSP. takes financial months roughly also then, it once we you as XX out And those division by from all we XX We've roll significant onto come come And for critical to XX is online, start through they'll absolutely to anywhere closed on have and Black highlighted This very Encompass they a well since testing. division. of their you closed, highlighted, clients months Knight get as know. onto large to infrastructure, online, both all institutions it

to time takes changes happen. it So make these

plays of in to I out. in live have that building going closed plays year window clients think months this as XX we're we the and number the about ago, right And a are as see where, that we coming in out. now those deal coming it XXXX, Because windows going to year in you're closed

Warren Gardiner

we to of see we the come that you That's are the too. start start see to of impact Yes, part we'd That's the some XXXX. talked stabilization the fourth these towards And Ken, just to too. about what year, add those. some guys revenue recurring right, these we'll because throughout to and is saw online quarter in I'd starting reason to

start And grow a so we're think we to point I where from at can here.

rate. Flagstar attrition that that the some to is online, that's are point of just from us Encompass an still is happen last There XXXX I you've all think growth to and as X.X vintage on expect while too little end year. some of renewals talk bit we out about probably of also X terms still have XXXX -- and impact good, heard should related headwinds the the particularly of towards then will year. throughout on we headwinds. our thing in that And call That's a coming that, there

A us, what little growth a rate last from saw to year. from That's improvement impact we bit of a more but percentage, that low probably single-digit an for probably, go.

of we're some from So wins year the in next this online, that help year absolutely, there as those then impact see parts but to there, come well. and will Ben are some and moving said, starting as into us

Operator

with question next from Sachs. Blostein Our comes Goldman Alex

Alexander Blostein

competitor you're couple versus complex. spend there. your your market a nice WTI back on of like of market could share trends primary the minutes hoping made ICE the oil we was progress It I looks gaining picked have a again seeing trend over course within markets on in trends last share up year.

and do what's So marketplace you ecosystem as durable that? and is? driving How 'XX How progress expect you evolve to that through 'XX? that that

Benjamin Jackson

one. few of We're what's our back. innovations very now. lot with last years a of has overall fed think years growth WTI And into It's we I'll pleased well very, take a this it's that done the entire several launched what oil made the I successful over Alex, Ben. is complex.

had XXX% was and in basis we've contract WTI to Midland about innovation particular, year year our one year-over-year contract a last that HOU a So well. That on year start phenomenal highlighted. is literally and talked as up this

it's point are saw our saw lot contract supported of that Midland of amount we double on truly physical what the that by a Another is HOU our deliveries oil that the on a that's big contract interesting companies. peer physically contract And delivered data on WTI WTI.

Europe [ Houston So Brent testament market are very Midland also also and is as underpinning flowing the WTI pricing the it's to the a well. fact And contract that and into this flowing off this ] of strong. based structural pieces now physical that's oil into

think for we all trading, WTI other of growth as basis those a trade the we given those contract, the contracts. package maximum all those when you a want contract. dynamics, fact amongst that Brent, that's of have our know, this efficiency So trade that HOU clients package. feeding as contract, and they're trade WTI have subset trade, we WTI into our And they'll can a of of we they'll or own in lot the And to lot what's have a traders,

Operator

from comes question next Our Patrick Moley Piper with Sandler.

Patrick Moley

I low the with end want to would in high pickup Warren, that that's of up forecasts imply that said projecting. origination the follow activity, this to So year. think and are just revenue you line mid-single teens industry on currently a in guide, the mortgage I low what the growth

though that growth in XX% think is number projecting refi growth around activity. I

thinking you refi So talk kind of the that how dynamic you provided? next mortgage you're about just guide through versus lens year could the about purchase activity of between

Warren Gardiner

Sure. Thanks, Patrick.

So terms could be think that but of to give kind that things obviously are particularly there. did you a that we predict, our a might on do into you impact that, and more end on the to what see look, little also conservative and in of the an low want look that's certainly optimistic, market rate to see of growth like. we based of what refi today, why the might where sort I view that difficult incorporate range guidance. rates And perspective interest It's refi

will, rates. more we're see know, improvement the that of appreciation trajectory depend of to noted nature. you on some as price on So side trend, how have of in market, things of some fundamentals. slowing on in We'll and terms refis how that sort the seeing and interest largely the look, to think my I of in purchase script some inventory, inventory coming terms I the that

year from I the importantly, coming will to look through. grow of as recurring within could good in band, perspective. wide start give like a revenues some And of got So we've too that kind -- to tried both the what those you But origination an that's growth well. band terms ends even think of I

out. an I got our that, through business, a we've industry know the all footing really think throughout year. as play that's the advance platform to we in to going invest exactly to But the better and how hard So put on move opportunity here continue to

Operator

comes with Barclays. Ben question Budish from Our next

Benjamin Budish

as of of in if for was if the this embedded think layered benefit. course year, we sort quantify the on 'XX synergies. should timing your the Warren, bigger bit the some how color more about guide? little what about kind expectation the of sort Curious I could of 'XX, achieved over I of expense year-over-year of you thinking give pacing year you're year-over-year -- of increased being towards full a the of million, we of think, in the what benefit the And OpEx given is wondering is you the $XXX could so a realizing now, sort that synergies or beginning your see expense

So if sort with just could help us you pacing the curious savings. of those

Warren Gardiner

Sure.

think of big the impact XXXX. had as in thinking well, obviously, I you're about this So year, a year -- we really

that'll So bit. back little go a

together, a And lot to XXXX course, more so synergies together bit XXXX. the the of at third we a were these of -- synergies quarter get to we the these then, a were in of of of And because groups little able lot well. groups as and and fourth the in quick in the deal realize very the close bring

of year also invest Part to the spot. in of throughout kind we've the you're move in what business starting organizations you is gotten as right once we're seeing the that sequentially the

will, that the lot rate, that spoken run we've you And of in is the already a synergies terms so to. of in there's if

little about And a rate think to a there. of basis, next help guided think so help. I million Obviously, you year, of about on there's we've run $XX bit as

end Some be of this year, won't so impact necessarily run that's of a going fully rate to this rate towards full run have the come it -- year.

will towards end why it X%. guidance in guidance It's at seeing of And so the the help. the as overall our you're of more organic you're synergies a constant lower been thinking about past has currency kind what be expense excluding that,

So bit there. it's helping us a little

of come those the related A savings that to and estate things added, going of the get just years. and infrastructure time a out. that to and nature. cost and real lot of XX that lot It we've systems terms go-forward position later and is that's of XXX, to In takes the extra in

certainly to the time total So the an increase, in no course, necessarily terms of change of in achieve. by frame we can XXXX, reaching amount but

Operator

go to We'll Dan Fannon Jefferies. with next

Daniel Fannon

year? kind pricing, see to customer wanted talk data on or We can again. up growth, about year. mid-single-digit the talk trends to we any this the there, outlook, ASV, new the it's of income growth some inputs I in Can versus new about the that's But you follow fixed whether good dynamics, products? think can you maybe shifting outlook changes last as I demand 'XX guess, ending

Christopher Edmonds

also engaging a hear of the can data needed when Chris, And where probably I the massive in seeing now they doing and clients business. side. trend with a is vendors for anything the and say What within that so the clients, buy question. there's that to run This right of looking on each the order more to available, number the we and focused services are side cost, that thanks most space every are would you're limit consume focus of catalog investment something they day for predictability very is on with they they need the amount related of robust of the than business on

a given of catalog, and a segments that, that generating that robust people, or the us we're connected our for of smaller a someone are forward. is data of given if most So looking has gives these seeing. to small that that X opportunities you we're provider X And headwind, as much that maybe wider opportunity looking fact versus is piece the probably

talk the can other numeric piece about to the who turn it. of Warren, over I'll

Warren Gardiner

Yes, Dan.

last both of several year. within the consistent think gave from we for I fourth think recurring look if pretty look, think, is I recurring within lines good the solid with revenue what at I that years that So certainly we a the revenues terms year another guidance we And exit sets business up have. And the have we expect. ASV in quarter, the as X.X%, we'll you --

And and business, I last the services but we thing talk always a X% don't network few think quarters. lot, whole particularly, other it's one around been about that data the

we you've for the throughout a bit next talking up of investments of of of can course part us little heard on certainly pickup because about the that set in datacenter I some think year, move as side. the

next data both setup side for other services and data income the and business analytics as very that on network happy ended has and So fixed where year, this with year the well. the and side

So -- another, in solid again, XXXX. year coming that think,

Operator

question next Our comes from Allen with Citi. Chris

Christopher Allen

customers create Will I new it the the impact energy markets administration markets. I'm wanted follow from new how energy on mentioned your there? maybe think your policies Ben, new maybe relationships maybe just trading headwinds? type any you kind -- looking perspective. potential then, or in color curious for any of to terms of opportunities you may up are at in what opportunities you business moving And of the on potential the forward,

Jeffrey Sprecher

of Jeff. A things. is couple This

markets we talked all, WTI we're which will think to we amplify using play already lot an this Houston risk contract, our of affect on contract. well export contract, want the about and is administration First which export they a U.S. call production, management hearing into really that say the and

on other countries. might beginning is sanctions energy. The used about hear to chain and that we supply the that again, affect the -- other a global And be administration for from tariffs how may lot we're thing

reorganize takeaways One changing the contract our able Murban we for the the of to the our then been a positive over we've last chains in the few the well. that chains. management dynamics are the and investing supply markets And energy around years the was energy Dhabi Exchange, risk European East, think from in have supply quickly which as how contract Abu Middle in can effect markets

Operator

with Voigt Kyle from comes question next Our KBW.

Kyle Voigt

on could up specifically question discussion maybe Dutch I and continue Actually, TTF. just prior on the follow

the years. alone. seen past few years doubled the has past growth TTF in You've in X OI over significant

Russia have has contemplated recent press Europe. There resolution war. that wondering headlines respect gas of or to and noted, changes anything post you this around TTF U.S. benchmark. supply impact by Dutch there's some of chains -- importance As EU as could some would growth it speak in to the to the if potentially just utilization imports just you I'm well some LNG driven a as if whether into been there changes the been was restarting with Russia-Ukraine, that of how

Benjamin Jackson

has Ukraine right they Europe. Yes, change. that Could the Continental into in And seized Ukraine a now, [ we're situation And of business as commodities in and cover that It's with going global how evolve the of if do change? this manage ] it chains through hundreds, customers Russian production point where all of gas at do that's the ourselves Kyle. at business, could. But incredibly their of that help consumption. when is customers for the look We've for trends businesses. and it's Thanks, us, risks partnering around of the contracts did our in healthy not supply thousands, our an alongside the look differentiated all we our with reason and TTF, Ben. interest part we interest incredibly built to And the in at contracts open we've healthy the we trends world, that open us. contract

contract you And when depressed market war If open held and reset. supply -- in, until a chains kind went to bit of our back for trading until the interest the reset volumes step that but little in because, it then window, once Ukraine chain the seen was supply how has that the knew supply reset, the during believe, continued we to and interest the and to is that held strong grow market explosive contract and demand growth. about because even that dynamics, open price started, think to

change via issues. supply these chains view it geopolitical positive So as we as a evolve and

Jeffrey Sprecher

one was [ that his trades remarks mentioned. with as real is their to increasingly other we're And in prepared basis global benchmark, these TTF a -- that, as gas now, Ben geographies, Ben between point contracts ] point other becoming natural and payers, alluded trade seeing Jeff. One that this

has And how the that the to around moves so robust we trades expect would relationships and continue partly world, as volume. potentially would chain supply these supply been market payer do away That's those differences. chain managing the

Operator

. UBS. The with next from question comes Alex Kramm

Alex Kramm

here. Maybe just one a quick

obviously, bit I talked just asset. clients it's know You bit the you give of on expect and a as the a rates. do with can to in I what maybe passing, some mortgage, But talked in about AFX that us little more color small. it's you little acquisition about mean you interest

rate you've talked you interest you're over not very about ambitions talk broadly more your this there. So maybe big U.S. because time, about

actually then and revenue for where is And show maybe Warren, contribution that will up?

Christopher Edmonds

it's Alex, Chris.

of other is those can along create other making that ICE, in wish there little us being the that And think the do the and to look of and how So mortgage that around done space our future. what we users that we tuck in it's with consistent that may and sure of for within services it current a use transparency there with and to those need. classes bit a at are to things asset history expand find those more customer we've used, you opportunities the time for use offerings the base overlap product whole as the customers

in product they be go Certainly, have another use or they do that in not have to out for that ecosystem it's to the have facing our where book manage the order the we inventory folks to they risk may leave manage there. and

have early look that into like the other we many company the pieces but they history and with have. process, So as the hand-and-glove it's we putting days of forward growing that that other we throughout fit products still to

Warren Gardiner

Warren. Alex, this is And

revenue of amount total So today. immaterial it's an

income will, which and analytics component be will in Data and & component And Exchange the data line. so be will It segment index more that know of would index Services business I it's in in much is the see a of then amounts. small And side. be be Fixed don't course, the you'll Bond an ICE impact. Income on the -- on of the business, fixed

Operator

question from next comes Ashish RBC. The Sabadra with

Ashish Sabadra

question full are another in the volumes much way spring Encompass get business. would for coil How a that levels to benefit Or how origination on the contract the improve from the XXXX? have had to compared to mortgage I average mortgage minimums transaction on of do mortgage be recovery?

Warren Gardiner

It's Warren.

amount minimum, from think the back sort that the are customers -- we up. percent of of now, say, the way we are through small years. to number year, the the the actually, quarters that's minority above been kind customers been and think vast our last this seen terms over so minimum move in that minimum. well, improving, several as would trending about let I of quarters, Right the that have some I best But a of the, relatively me or the last this So still of of above the above the loans we've of have sells quarters in few

right we're on So the direction in heading that.

market then has for part calls a you've gotten better. in little renewed. That's the us But and heard of on as also, bit because that note coming the customers have a as minimums they've -- the been down number

a impact of that's dual that So that's front. been on sort helping

billion point around incremental million we'd environment revenues to up million revenue of terms to close at $XX couple expect level, loan industry be to those an hundred of scenarios. million a back, to the to in a X $X.X in about are which how point of in we've think comments is, to a I ago, impact, $X I'd we quarters made that think few some I'd in to you back you terms if

flow the start market, as move you're so more for as we through normal toward as those million going XX contracts. worth, loans been million a X market, been to over average impacts move of so median XX a And the impact side loans, more last more we little that into and has a normal kind see the around it's the to that back on years. certainly what bit has transaction

Operator

with question Bill The comes next TD Katz Cowen. from

Robin Holby

or for This open Is and headwinds there on opportunities drive open here? is growth and interest We volumes you do that XXXX? Robin Bill the you're the rates Katz. interest to see where rate volume anything Holby your for potential on to have comments robust interest. done or structural get And doing business in wanted the

Benjamin Jackson

of in It's were the the our with fantastic they're complex Ben. pleased rate a off interest that growth we've and very year, into over this last couple We start. years, seen starting to even

multicurrency interest built a have up. complex rate that obviously we've we So

to to invest which and making also futures, create these invest best contracts. those we in market markets continue getting our the for that in in to tight development development our into We clients. around options the of has helped And sure of continue rate markets participants all of we're markets options liquid interest

done. things some that are the those So we've of

remarks the to his bunch that as I the around it to of think of that's we and had prepared has. administration changes have that world. rate interest and a volatility obviously, world, man impact Jeff in his relates acts going persistent on alluded the around around comments

that volatility happening, as interest policies policy settling all So of in, we we'll see into with markets rate see which trade the and changes administration think what of develop, well should for globally, central bank we're terms and means in it. they positioned the

Operator

further for questions. time of out We're you. Thank

So back to closing Jeff I'll comments. Chair Sprecher, CEO, for and pass you

Jeffrey Sprecher

Well, and the thank again call, you us model soon. and joining I you, We're business to drive continue been to forward to We day. Lydia, look to all-weather morning. hope for this building. innovate you a continue customers we've great that, have for moderating you'll thank for that all this updating very With going

Operator

you concludes joining. today's This for Thank call.

disconnect now your You may lines.

Intercontinental Exchange (ICE) 6 Feb 252024 Q4 Earnings call transcript