Intercontinental Exchange, Inc. (ICE) Earnings Call Transcript & Summary

Looks like we're going, anyway. So next up here, we have Intercontinental Exchange. First of all, thanks for joining us. I'm Alex Kramm. For those of you who don't know me, I'm senior analyst at UBS, covering exchanges and business services. And as I said, next up is ICE and very excited to have Lynn Martin here, who is the President of the NYSE Group, but also Chair of Fixed Income and Data Services. Hopefully, I got that right. It's like you've worn a lot of hats at firm. So given -- I know there's clearly a lot of things going on in ICE, which is the -- we're just kind of par for the course the firm over the last, I don't know, 15 years or so that I've covered the stock, but given Lynn's position, I'm going to try to keep it to the data and fixed income businesses and obviously, the NYSE Group. I know there's a lot of focus on mortgage. Maybe we'll get there. Maybe we'll have time for some follow-ups. And I'm sure she'll be happy to tackle those 2. Why don't we start with the data business side here.

Sure.

So again, thanks for being here. So a few years ago at the Investor Day, I think the only Investor Day you ever had, you laid out targets for your data business to grow mid to, I think, high single digits. You've resegmented the business since then. So I think it's a little bit of apples and oranges, but like you still -- do you think those targets still apply to that fixed business today? Can you talk about the growth on your [indiscernible]?

Yes. I absolutely -- first, thanks for joining us. It's always great to be with you, Alex. I think the growth algorithm is still, right, very relevant, and I think we've proven that growth algorithm, particularly on the mid-single digits. That's where we really landed. They probably should have included M&A when we -- and wound up talking about organic growth. In retrospect, that's probably something we should have done at the Investor Day. But yes, we're very confident in the mid-single-digit growth algorithm. We've been executing on that now for, gosh, since 2015 when we [ founded ] ICE Data Services. So can't believe it's been 8 years since we formed that business, and we've shown continuous execution there. But as you rightly point out, Alex, the Data Services business in 2015 looked a little different from the Data Services business today because we resegmented the business. I think the key component there is we don't see a demand for data abating. I'd say data is really the common thread if you look at all of our segments. It applies to all of our segments, and the opportunity applies to all of our segments, our 3 segments. Our Exchange segment, where we've continued to do really well and execute on data growth. This year, the Fixed Income and Data Services segment, which is probably the highest proportion of data services come out of that segment. And then the opportunity in mortgage, even though we're not going to spend a tremendous amount of time talking about mortgage. We just see a tremendous amount of opportunity given the assets we've acquired, both on Ellie Mae and now Black Knight, which we closed on just last week. We've taken the deliberate approach as we think about data to be focused on [indiscernible] first strategy. Observable data, high-quality data, data that can be measured and maintained. And we've developed an amazing ability to take unstructured data in market, the data that's in the Ether. Distill that to the most useful pieces of data, the most true pieces of data and then harness that, package that with better known data sets in the market, data sets that the market is used to consuming. And I think that's where we see the biggest tailwind, that ability to distill that really high-quality data, tie it back to data the market is used to consuming and leverage that, expose it to the market to add transparency to each of our -- continue to add transparency to each of our marketplaces or our segments.

Very good start. Now I will have to obviously point out that the growth more recently has been a little bit lower.

Yes.

So maybe again, what's weighed on this business? And what are the potential things that could actually change that?

Yes. So the area that has slowed is the fixed income data and analytics portion. So that would be if the data applies across all the segments, that would be a portion of the fixed income and data services vertical. You rightly point out that it has slowed. A couple of things there. It's been a really challenging environment. I don't have to tell anyone in this room. It's been a really challenging environment for fixed income over the last 18 years. We're starting -- or 18 months. We're starting to come out of that. We're seeing -- the way we're seeing the market start to reemerge is twofold already. Number one, the amount of fixed income funds that are being created. We're starting to see upticks in the amount of funds. We started to see that trend with new funds created at the end of Q2, and that trend has continued a bit into Q3. And then secondly, a recalibration and continued growth in the amount of AUM and the benchmark against our fixed income indices. Right now, we're at record levels of the amount of AUM that benchmarks against our fixed income indices. Amount of AUM against all of our indices is $526 billion, which is tremendous considering 5 years ago, when we acquired the Bank of America Index, we had less than $100 billion benchmarking against those. But importantly, you've seen the recalibration there away from the lower capture indices into the higher capture indices. They have different capture rates based on the indices that we put out with equities, munis and even high yield being our higher capture products as opposed to treasuries, which is where last year, you saw the flight to quality, everyone running to the treasury indices. So we're really excited about that. That's the area that's going to probably normalize the fastest. So you're going to see the growth in that portion of the business start to manifest itself to the bottom line quicker than you will start to see the rest of the business. The one area that we have called out, and understandably in this environment, is the elongated sales cycle, which we've been subject to over the last 18 months. And that really has impacted our new logo capture in the fixed income data and analytics side of the business, given the various levels of approvals that a contract needed to go through. When I was running the business, head of a desk or a procurement person could sign off on the contract. And since last year, that -- and many times now has to go up to a CFO or someone along those lines for approval. So there's a [ variety of ] steps that have had to undergo. We're trying to see that pressure abate just a little bit, but I think that's because of some of the macro factors I just mentioned in the market like the amount of fixed income funds starting to grow. Hopefully, we'll start to see debt issuance come back. So the demand is continuing to increase. The demand is what's going to really start to tighten that segment.

Great. Then maybe just digging a little bit more to parts of that business, in particular, the core pricing business, the legacy business. You don't break out how much that is, but maybe you can talk to it a little bit. But you made a comment on the earnings call recently that -- you mentioned they're picking up market share, right? And again, in the numbers, you don't really see that. So maybe you can talk about that a little bit more. In particular, as you compare yourself to some of the other firms out there, so to call out Bloomberg, for example. And I've had some conversations with folks who said like, hey, the Bloomberg data is becoming more relevant because their indices are still the predominant indices. And as the longer benchmark or measurement periods move over time, the less legacy data is needed. And with all the new stuff, Bloomberg just continues to be very, very relevant. So that was a mouthful of a question, but I guess it speaks to competition a little bit. So maybe talk about how you're gaining market share while it seems like we'll have this thing also [indiscernible].

Yes. If we look at -- some will say available data, which is the form N-PORT filings for the -- it's non -- sorry, the mutual funds -- not [indiscernible] funds, the mutual funds in the market, we are continuing to gain share. The challenge that you're seeing is part of pricing and reference data is -- even a few very large portion of fixed income and data and analytics. And that's really where the growth rate has been -- that's the elongated sales cycle, that's the macro factors. If you don't see a growth in the amount of funds, if the amount of funds decrease and you see not a lot of new issuance, there's only a finite amount of securities that are being consumed by an amount of funds. So even if you pick up share, that gets offset by the fact of the amount of funds either stay stagnant or decreases and/or the amount of securities in the market stays pretty flat. So that's where you see that a bit washing out at the moment. And unless you've got the sales cycle opening up, you're not -- you're giving back your price increases, things of that nature.

Have you felt good about your [ position there ]?

I feel -- yes, we feel really good about our position there.

I will ask one more on competition here just because some of those fixed income platforms in the marketplace that you're all very aware of, they're also making noise on end-of-day pricing and wanting to enter that market, which really is a good market. So again, how will you position growth against those entrants considering that more and more trade happens there?

Yes. Well, as on what asset class you're talking about, I would say you that more and more trading is happening on us, given the growth. We've had on some of our execution platforms, particularly in munis and have always had fantastic growth given our penetration into the institutional side of the business. The thing with end-of-day pricing is in order to switch end-of-day pricing providers, you have to restate your history. You have to have a full historical [ backstop ]. That means you have to evidence how the fund would have performed during various shocks in the system. I mean, basically, we do have some shocks in the system. We have had -- which caused volatility in the markets. We have had everything that just happened in '22 in terms of interest rate cycle moving up, moving down, all sorts of volatility. So in order for one of those other platforms to gain share, they would have to restate the entirety of a fund's history in order to place us. We tend to feel really good about the fact that we're very sticky, and the opportunity there is -- continues to be very sticky. We've been able to translate that though into gaining share on the execution side of the business quite honestly, because given the fact that our real-time data just gets right around very near tremendous amount of enhancements to that real-time data as a result of the activity that we've seen, the pickup of activity that we've seen in our execution platform.

Maybe that's a great segue to put my happy face on and that we ask about [indiscernible]. I mean what are you excited about? And maybe talk to some -- I mean you just alluded to real-time data, but maybe some of the other things that you're doing. And most importantly, given that you just say how big the pricing and reference data business still is, like when can this stuff actually move the needle so you can see those growth [indiscernible]?

Yes. Hopefully, we're starting to see the -- we're seeing the green shoots of that with the normalization of the money coming into various fixed income indices and then around the new [indiscernible]. And hopefully, when that debt issuance [ gets published ], I think it will at some point, we'll be back to the more normal growth rates there. But one of the big macro trends that we're executing on and really excited to talk about in the data services business and the data component that hits each of our different verticals is this concept of AI. Everyone's [indiscernible] the year. And how we've been executing on that for and how well we're positioned to continue to execute on that for the next medium -- for the medium to long term. If we take 2 steps back, we have 2 businesses that are uniquely positioned to benefit from a subscription basis. In the trend of further automation, adoption of large language models, adoption of AI, specifically our connectivity business, which you see our connectivity revenues hit both the Exchange segment as well as Fixed Income and Data Services segment. They wind up in both. The reason for that is the compute power required for these models continues to increase. That translates to demand for more power [ in our data centers ] and access more connectivity. Our demand for our power in our data centers is at a record high. We've had filed waitlist, things of that nature because we're bringing more and more power online. And I don't see that demand abating as people continue to adopt these models. So we -- long term, we're really excited about that opportunity. And then one thing we've started talking a bit more about is what's driving the growth in our desktop and tools portion of other data services. So our desktop and tools business is a visualization platform, small part of the business, but we do have that, very focused on the energy segment. Additionally, we've got a [indiscernible] which the number of users in that chat performance had a 15% cumulative annual growth rate over the last 5 years. We're now approaching 125,000 users connected to that chat platform. Within that chat platform, you have the ability -- you've got 2 tools. You've got one that's a compliance tool, which is these things continue to [ become ] regulated, price discovery continues to be more and more regulated. Your client base do want a log of that. So that's one monetization opportunity. The other monetization opportunity is this recognition software that we're already talking about. The recognition software has been in production for 10 years. It's a long language model, proprietary large model. We developed -- we -- it's only open to our ecosystem. And it is smart enough to detect, if I'm talking to you, about the fact that I keep coughing. Or I'm talking to you about a [ trade ]. If I'm talking to -- it detects if I'm talking to you about a trade idea. It pops in the fair value and it underlines the trade. What that means is it's underlined. It gives you the fair value really the second [indiscernible] and the data that we're seeing in the market thinks is fair value in that trade. And if it's an options product, it will throw in some [indiscernible] as well. And if you're happy with the price you've just agreed with your counterparty, the underlining functionality will allow you to submit it to our execution platforms and clearing houses. We started to see the effect of this in our energy market, people starting to meaningfully use this about 2 years ago. We've spent a lot of time investing in this area so had -- and production for a decade, took a while for the technology to be boomed enough where it was used as an efficiency tool. So 2021, we started to see about the effects of that in our energy market, very small. But the amount of share that is coming from that tool has increased over the last 2 years since we first saw folks using it. More recently, it's moved into utilities. So we think they are now -- because the model, the large language model has gotten smarter, we think there's a lot of applicability across different asset classes. So there's a bunch of room to run there, and it is still a very, very small portion of our energy market. So you'll see that pop up in terms of revenue in our other data subscription standpoint. But then, of course, anything that adds to energy volume in the exchange segment. I think given our expertise in data, given the fact that we've been such a trusted source for data, I think the AI trend positions us incredibly well, not just for these 2 products, right? Large language model needs good data in order to achieve the efficiencies that better promises to or that aspires to. So I think we're incredibly well positioned. It's why I'm still so bullish on the data, business and the prospects for the future, going back to a question you asked just a bit ago.

Just super quickly, as a [ colo ]. That 125,000 users, that's all the users. I mean those are -- you've been at this, I think, for a decade or so in the energy business that -- is that applicable to other asset class? Or there's...

Yes. Not just in the energy market, the 125,000 users is energy mainly, but then also equities, too.

And I mean...

Equity options, equity derivatives.

So there's other asset classes...

Absolutely.

So think -- if I remember, still on the growth side that a few years ago when you first acquired IDC international, the big focus area -- I don't -- probably 80% U.S. something, I may be wrong here. But I think the international market was super fragmented, and I think you were very excited about almost like rolling up that space or really becoming the one-stop shop for everything. I mean where are we on that? Is that still something that you spend a lot of time on? Is that [ still ] there?

Yes, I'd say that -- yes, that definitely is still there, between [indiscernible] and Asia, the APAC region. Those are 2 [ retails ] where there's still opportunity. That's been an area where we've been slowed at because we had COVID hit us. So the one thing that COVID was really challenging for -- it was fine for existing relationships that we had. It was fine for these types of meetings. It's really tough customer acquisition, true new logo acquisition, not new buying centers within an existing logo. And that was one of the areas we had identified in Europe, in particular, true new customer acquisition as an opportunity. And now the world's open back up and folks are back traveling as evidenced by the fact that you're all sitting in the room today, we continue to see that as a big opportunity.

Shifting gears to pricing and pricing power a bit more. Now, obviously, I cover a lot of data services companies. Many of them are here today. And it seems like when they talk about pricing, which is they do, like 3% plus pricing is kind of the norm. Over the last years of higher inflation, those numbers have even moved higher. It seems like when I look at you guys, you don't seem to play that card as much. You seem more careful. So first of all, is that right? We've seen on the Futures side, you've changed pricing a little bit for the first time in a while, but more on your data business. Is it something you're a little bit cautious on or -- and maybe an opportunity to do a little bit more in the future? Or how should we think about pricing?

It's always served as well the approach that we had to pricing, which is we price for value and we don't go to our customers and have an immediate hype up in pricing, whereas some of our competitors tend to do that on the exchange data side. The exchange data side is there are steps more than anything where you won't see pricing changes for a while and then you will see a pricing change and then you won't see it for a while and you will see a change. But on the exchange data side, we're always looking. I'm always pointing back to liquidity in market and new product and product innovation. So we hold ourselves a bit [ accountable ] to defending why we raise prices on the exchange data side of the business. I think the same thing applies on the fixed income side of the business is -- and data services side of the business. It has served us well to not be the most aggressive in price, but for the long term. It's why we're able to gain share. It's why we're able to win takeaway opportunities because we just have a different philosophy.

Shifting to the trading side of the business, but still within the Fixed Income and Data Solutions segment. Yes, can you talk about your -- the [ trend set wholesalers ] work? The trends have been great. It's actually been a nice offset to the -- recurring revenues have been a little bit slower over the last couple of years, but you're clearly [indiscernible] there when you think about Tradeweb and Market Access mainly from others out there. So it doesn't make sense. Subscale usually -- you try not to be subscale in any of the businesses you're in. So why -- I guess, why are you in these businesses? How do they help the data side? And maybe what are the opportunities that I may not be thinking about to scale them or be [ subscale ] for?

Yes. I mean there's been -- as with any acquisition we do, the first thing we do is upgrade the technology because sometimes we find businesses that have poor technology. I mean great thing about our playbook is we know how to take poor technology, upgrade it and then take it to the next -- take and market it to the next level. The TMC acquisition -- BondPoint and TMC acquisitions are pretty good examples of that. I think we only resegmented the business and we finally had just -- I changed our go-to-market and the way we were thinking about that team previously have been very focused on doing that hard work of the technology upgrade. So they were really well on the path there. So it's easy to change the go-to-market. And it's really resulted in us being able to gain share in munis. We got into that business really [indiscernible]. Given the strength of our assets in the market, if I think about fixed income, that is the portion of fixed income that has the longest room in terms of electrification. We've -- a lot of what's driven the growth that we've seen over the last year and it happened, the execution side [indiscernible] and our penetration into institutional and really driven by the muni mark. The nice thing about going to hardest market, the muni market, is munis are frequently traded as a spread to treasuries. I'm sure you all know that, so forgive me. But that's enabled us to gain some share in the treasury markets more recently as those are now the products that are starting to gain traction. So I think it's still early days, probably mid-cycle of what the electronification of fixed income really looks like. It's going to be a data-driven trend now. And given the data assets that we have, I think we're extraordinarily well positioned to continue to take share, to continue to evolve our platforms.

Speaking to the trends that you just -- electronification, et cetera, I guess, it would be a good segue to talk about regulation for a second. I remember when you said on the FIMSAC committee at the SEC. I think that thing is basically [indiscernible] to call it. But nevertheless, there are certain [indiscernible], kind of fixed income regulation, U.S. in particular. They were watching clearing of treasury market, treasuries. Some folks are talking about credit. Trade reporting needing to be sped up and what that could mean. So yes, I mean, when you -- and there's probably more that you're paying attention to. So how do you think about the regulation? What are you watching? And again, how drive [indiscernible] platforms, generate demand for data? Yes. What are you seeing? And how could it [indiscernible] you?

Yes. FIMSAC was a great use of time. It was 3 years long. It was a useful time. And the thing that I was really -- there's -- one of the subcommittees they shared was muni transparency because I really like the muni markets, which is why I talk about them so much because I find muni to be just such an interesting market structure and such an interesting market that's ripe for innovation. So I found a lot of time thinking about that market in particular. There are some recommendations that came out of FIMSAC that are still winging their way through, the [ ATN ] registration. That was a FIMSAC recommendation. TRACE reporting actually was one of the others that we recommended in terms of the time. I think the SEC went a little bit further than what we had recommended at FIMSAC. But yes, I think we tend to have been able to use regulation as a tailwind. If you look at things that are systemic regulation, like the implementation of Dodd-Frank. We saw that as an opportunity early on to be a tailwind for us, have Dodd-Frank forcing the central clearing of CDS. We created ICE Clear Credit, which I think has 95-plus percent market share of EPS clearing, which is tremendous, a decent size chunk of our fixed income and data services revenue. So any time there is additional regulation, particularly regulation that's adding transparency, it's something that we're highly interested in because the infrastructure we have in place, the networks we have in place, the various assets we have in place, we think we're incredibly well positioned to capitalize on that.

Okay. And then maybe just lastly, and then we'll -- just for NYSE, but this is a fintech conference. So data is the topic. But how -- I guess, how does M&A fit into your mindset in those businesses, right? Like clearly, ICE have -- you guys have your hands full at the moment. But clearly, this is an area of innovation or areas -- your data businesses. So really there's got to be some inorganic opportunity. So what are you seeing? What are you excited about? I know your hands are full, but clearly, there's got to be some hope for tuck-ins. So maybe just summarize how M&A fits into your thinking.

Yes, we always look for bolt-ons. I mean, I think, our majority of our acquisitions at ICE are these smaller bolt-ons. The bigger we get, bigger the smaller bolt-ons get. I think a good example of that is we brought the risQ, R-I-S-Q, business at the end of '21. And we -- this is after about a year after we had bought Ellie Mae, which was our largest acquisition at the time because it was -- it identified -- we identified a gap with that business, which was good geospatial data and how that would evolve to climate data. But then importantly, how having good geospatial data could really fit into our mortgage vertical too, because what that business does is it provides the U.S. into a grid and it goes down to the parcel piece of information. So that's got applicability on the climate side, but that's also -- which is where we got to know those guys through, but it also has clear applicability in our mortgage business. And we have already had our sights set on continuing to build out on mortgage vertical. So I don't think we'll shy away from the smaller bolt-ons and tuck-ins, but we're highly cognizant of executing the opportunities we have in front of us, having just completed the Black Knight acquisition, given the size of the Black Knight acquisition and the opportunity we see with Black Knight to really provide an end-to-end solution to our mortgage tech customers.

Great. Well, with the few minutes we have left, why don't we switch over to the NYSE Group part of your job. A more visible job, I think, for you often. I see you on TV plenty. But -- and usually, we see you on TV because of IPOs happening then. So maybe I think everybody in this room is curious about markets reopening, IPO coming to market. So seen a few things here, but why should we be excited and what are the private companies saying?

I think in Q2, you saw soft reopening -- the start of a soft reopening of the IPO markets. You saw some large deals get done and you saw all sorts of type deals get done. I'm just going to rattle a few of. You saw Kenvue, which was a Johnson & Johnson spinoff, that they raised $3.8 billion at their IPO. There's [indiscernible], which was a real traditional IPO. You saw Savers, you saw Fidelis, Kodiak. The reason I just rattled those off is that's a mix of spin-offs. It's a mix of traditional IPOs. It's domestic, international. It's across different sectors. Energy, consumer and financials are the 3 sectors that we saw. The deals got done and a lot of those had topped at their IPO, stuff went up on when it opened, and we found the right value. And deals got done, a lot of times at the high end of the range, which is a really good time. It's really good times for the companies in our pipeline, and it was good time in the private companies in our pipeline that, yes, there is demand in the market. Because that was the big question. Is there investor demand in the market for good companies. This quarter, you're continuing to see that. You can -- now you're starting to see some tech deals go out, again, all different types of tech deals, different types of structures, too, that's all on. So we'll see how the next 6 weeks go. We've got a large backlog that looks like it's going to go in October, too. I just think it could go well. I think this sets us up for good reopening in '24. Can't say when in '24. I don't know if it's going to be January 1 in '24. I don't know if it's going to be April in '24. But it is getting the companies in our pipeline the confidence that they can raise capital, the volatility has abated, the thing that I always talk about at conferences a bit, looking at the volatility indicator in the market. When you've got the mix above 20, you're not going to have a lot of IPOs. Last year, you saw 30, 35. You saw -- our market's moving all over because private companies knows are not necessarily worried about IPO day, they're worried about the weeks that follow, the months that follow, the years that follow. Having to explain that stock chart to you all about what's going on with your IPO price and then the stock that's currently trading. There's less volatility in the market. That's up nicely. And now you've seen a mix below that 20 well, which is optimal time for the companies to start now. So assuming the next 6 weeks go well, assuming that volatility stays kind of where it is, I think we're setting up markets reopening in '24.

And then on the trading side, I think there's been a view that in Equities and Options there's a lot of growth during COVID and that can only fall off from these elevated levels. I mean anything you would point to that gives you confidence that these businesses can continue to grow? Or do you share the sentiment that maybe [ we're living a ] peak? And then any other things like market share that you're watching to make sure those business, which are well composed, still very relevant and drive a lot of other things, that they continue to be [ positive ]?

Yes. I mean we spent a lot of time thinking about those businesses and controlling what we can. Obviously, the volatility, the counter to the -- you don't have a lot of listings. New listings at least in volatile markets. You do have a lot of trading. Last year, we saw continued high levels of trading. This year, with volatility abating, trading volumes have abated a bit. So the area that -- consumer sector is a little fortuitous is all happening is we're completing our final migration to our state-of-the-art trading platform, the most deterministic platform performance -- platform in the market that competes with our [indiscernible] going live at the end of October, which is our Amex Options platform. We're really excited about that because it's been heavily invested in and the early signs that we're seeing, all being on that platform is very positive in terms of ways we can optimize to gain further share in the market. So we're -- the transactions team is very focused on continuing to hone that platform, make it the most optimal platform, optimal whereas a lot of times we can possibly have, while continuing to manage the load on the platform. The amount of messages that we've seen go through it is really off the charts, 0.5 trillion messages, incoming order messages on a good day. And really looking [indiscernible]. So really happy with the performance of it so far. And I'll be happy when it's -- when we're done. And we can then work on the next stage of it, which is pruning the platform.

I'm watching the time. And I think we have maybe room for 1 or 2 if anything is in the audience? Not. Great. Just -- and maybe just one, since we are still on the NYSE here, just a question on anything else that are not listing on trading that we should be paying attention to? Talking about data a lot. I don't know if there's anything else in kind of the data side or the other side on the exchange business, NYSE business that you think...

Yes. I mean the data side of the business companies do really well. It's been a good contributor to the growth that we've seen in the subscription portion of the Exchanges business. So when you think about our 3 vertical, that's where you see that. Demand for connectivity, demand for our exchange data continue to be quite strong, and we've been able to capitalize on those trends in the market.

And then maybe, since nobody wants to ask it, maybe we'll just finish away from your business for a second because, clearly, everybody has been focused on the Black Knight acquisition. Nobody from the management team has talked publicly yet about that deal post-close. And I hear more in a few weeks, but anything from your perspective that you would point out, that you had to make some concessions relative to the original deal, but maybe just a quick reminder why we all should be excited, what you guys are excited about, what you actually took over and what we should be watching over the next 18, 24 months?

Yes. I mean the investment thesis from a strategic perspective was very focused on providing an end-to-end solution. We like to provide end-to-end solutions to our clients. It's a theme that we run in multiple verticals. We do that through technology. So if there is an opportunity to take a market using technology, transform it from analog to digital. As you've heard Jeff say, we can't think of the market with more analog, the paper-intense market of buying homes in the U.S. and do it on a bolt-on basis providing an end-to-end solution to [ IN ], we're going to go do those types of deals. And that is the strategic with doing Black Knight. The assets we got are the ones that actually complete that thesis because the one bit that was missing from our mortgage vertical or mortgage segment was the servicing component. We had the origination, the reporting, the closing. We didn't have the servicing. So what happened to your mortgage when you have to pay it monthly, prepayment, refinance, all those types of things, all the things that happen within that life cycle. That was a bit that's missing and that we now have that as a result of the acquisition. And we just see a tremendous opportunity to apply our expertise at taking analog markets, turning them into digital and applying really good technology, and this is going to be one of those forays that we're going to be able to upgrade investment and the technology to make it state-of-the-art from an offering perspective. Obviously, a side effect of all this, any time we're doing analog to digital conversion is really the data that comes out of it, which is a tremendous opportunity that we're excited about. Again, when we think about what really ties all of our segments together, where the opportunity continues to be, is that data component. The data on [indiscernible] very electronic. The data extends to mean data services is it's providing [indiscernible], but also is an opportunity to tie those markets that are in the process of digitizing. And the data that provides the opportunity in mortgage, to drive down cost to the end consumer, add efficiency and add transparency to a pretty opaque market that affects the end consumer, I think that's tremendous opportunity for us.

Couldn't have stopped on a better note. So fantastic. Thanks, Lynn, for being here today and excited to watch what's -- how this plays out over the next few years. Thank you.

Thank you.

Thanks, guys.