Nasdaq, Inc. (NDAQ) Earnings Call Transcript & Summary

Good morning. I'm Ato Garrett, Senior Vice President, Investor Relations, here at Nasdaq. And thank you for joining us today for our 2024 Investor Day at Nasdaq's headquarters in our New York City market site. We appreciate your time and focus. Before we begin, I want to read a few disclaimers. And as a reminder, please take a moment to check your cellphone and your laptop to put them to silent or do not disturb. I'd like to remind you that certain statements in this presentation and during Q&A may relate to future events and expectations and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from these projections. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our periodic reports filed with the SEC. The presentation also includes non-GAAP financial measures, and you will find the appropriate reconciliations included in the presentation slides from today that are posted on our website. Please take a quick minute to review the safe harbor language on the screen now. Also, I'd like to share two notes on how we're presenting our financial information today. First, where noted, certain of our 2023 financial results are shown as pro forma, which means that we are showing the results as if they've included the full year 2023 results for Calypso and AxiomSL. As a reminder, our fourth quarter and full year 2023 results disclosed in our earnings call on January 31 only reflected 2 months of Calypso and AxiomSL following the completion of the acquisition. Second, we will start to include those results in organic growth beginning in the first quarter of 2025. Now I'll share a few logistics items for the day. First, our program is scheduled to run from about 8:00 until about noon today. Second, we have a lunch served on-site. And within that, you see within the lunch area, we have a product showcase, so you can see some of our products in action later on after the Q&A session today. And we have WiFi here available. And the WiFi network is investorday2024, all one word, and the password is Rewritetomorrow with a capital R -- I'm sorry. Rewritetomorrow2024, one word with the capital R. That information is also on the screens around the room. Looking at our agenda for today. We'll start off with a strategic overview of Nasdaq provided by our Chair and CEO, Adena Friedman, with presentations around our business divisions from the leadership team. And we'll also have two panels today. The first will focus on technology foundations of Nasdaq, and the second will show how we bring our team together across our divisions to serve our customers. Our EVP and CFO, Sarah Youngwood, will close today with the financial presentation and overview of Nasdaq's profile and priorities. Between the prepared presentations, you'll see video testimonials from our customers that we'll also include in the webcast. At the end of the prepared program, we'll have a Q&A session. And with that, we'll kick things off with a short video. After which, you will hear from Chair and CEO, Adena Friedman. Thank you. [Presentation]

Well, I guess this says everything we have to talk about today. But seriously, welcome, welcome, welcome to Nasdaq, and thank you very much for joining us this morning. I'm Adena Friedman, I'm the CEO and Chair of Nasdaq, and we are going to spend the morning with you providing you a deeper dive into Nasdaq, an updated look at the business and our journey ahead. Today's message is all about growth: Scalable, profitable and durable growth. And we achieve that growth by being a trusted technology partner to the financial industry providing mission-critical capabilities to help serve our clients all over the world. We are tied to four key industry-defining megatrends that we'll talk about which provides us a very large total market opportunity for us to be able to achieve our growth and continue to expand our capabilities to serve our clients. And as we execute on our strategy, we provide you, the shareholders, with a very exceptional financial profile and the ability for us to continue to expand our business successfully to serve you and to provide value to our shareholders. So let's start by grounding ourselves in our strategic framework. First, our purpose is to advance economic progress for all. And we do that by achieving our vision of being the trusted fabric to the world's financial system. There are two keywords in our vision: Trust and fabric. The trust has been gained over 50 years of serving a critical market infrastructure provider in the U.S. and Europe and really serving our clients very successfully, and serving a broad range of clients across corporates, investors, market participants and other exchanges around the world with our technology. And then we've been able to transfer that trust over into becoming a very scaled technology partner to them and someone who they feel that we're here to solve their biggest challenges. And fabric comes from the level of service we provide, what kind of solutions do we provide that really bind the financial system together. And that comes to our value proposition. We provide world-leading platforms that enhance the liquidity, transparency and integrity of the world's economy. And we're going to spend a lot of time on those themes, of liquidity, transparency and integrity, because they underpin everything we do. So today, as a scaled provider and as a scaled business, we have three key divisions. We have our Capital Access Platforms division, our Financial Technology division and our Market Services division. We'll spend time with you on each of these areas of our business. Because we've made some big changes in the Financial Technology division and really broadened back the capabilities there, we're actually going to spend more time today on the Financial Technology division than on the others just because there's a lot to educate you on and we want to make sure you have a deep look into that business and the leaders who are leading it. When we bring -- when we serve our clients, we have five key strategic differentiators that we think really define us and give us the right to win. The first is our technology leadership. We have been a disruptor in our industry and now an innovator in our industry now for decades, and we are continuing to bring that technology leadership and innovation across all of our solutions. We've been a deep investor in cloud over the last 10 years, really driving and transforming our business into cloud-enabled services. We have a deep history in AI, and we'll talk about how we're leveraging next-gen AI to continue to power our products and power our business. And we think that, that continues to provide us with a scalable and very important differentiator. We couple that with our gold source data. We call it gold source data because it's generated, it's proprietary to us and it's unique to us. It's generated off of our engines, whether those are our market engines, our analytics engines, our financial crime management engines. We have incredible data across our platform that we can then transform into actionable intelligence for our clients to create value. Speaking about our clients, we have amazing clients. We have the largest corporates in the world, the largest asset managers, the largest banks and brokers. And many of the largest exchanges turn to us for certain elements of their technology to power the markets. And we bring to them expertise across regulatory expertise, market expertise. And because we're highly regulated ourselves, we have a lot of credibility when we're going out and talking to our clients about helping them manage their regulatory compliance, financial crime management, risk management, areas that we know deeply and we bring a lot of expertise to. And then lastly, we kind of envelop ourselves in this amazing brand of Nasdaq. Nasdaq today denotes independence, meaning we provide them independent and neutral capabilities really help serve them as they're managing their lives in the capital markets and the financial markets. Innovation. We are extremely fortunate to have the most amazing innovators in the world who are listed on Nasdaq. And that then kind of brings it over to our brand as an innovator in our own industry. And integrity. Integrity, we bring integrity to every element of our business, and we now can help our clients make sure that they drive integrity across the financial system. And we've grown a lot. So as we -- actually, we started on the strategic pivot to become a scale technology provider back in 2017, the time we were making $2.4 billion in revenue. Today, on a pro forma basis, we make $4.3 billion of revenue. We've been able to generate 8% CAGR in revenue growth. And at a 53% margin, we've been able to expand our margin by 600 basis points over the period, showing that we have scalable growth capabilities. We also have very steady and growing cash flow. So we've been able to generate approximately 100% or greater cash flow conversion every single year during our journey. And so we've been investing in our platform while we're invested shareholder value and driving results for everyone, both for ourselves, for the shareholders, for our clients. And one thing that I think does kind of -- one point that I think is kind of a good way to show how much we've grown is, in 2017, we generated $2.4 billion of revenue. And in 2023, we generated $2.4 billion in EBITDA. And we do that by being a leader in every element of our business. I'm not going to go through all of the points on this slide, but it really does show the scale, the marquee clients we serve, with the leadership position that we have. And we do believe that, in every element of what we do, we are a leader, we want to make sure that we maintain that leadership; we're an innovator; and we're a partner. And while we've been developing and deploying all of these great capabilities across our clients, we've also been investing inside of Nasdaq. So with the scalability of our platform, we have to continue to drive investment into our own operations and modernizing every element of our business. So the first thing is we are three divisions but one NASDAQ. We have a one Nasdaq approach to defining our operations, managing our business and trying to create a very consistent experience for our clients. So the first thing is we've gone through a process of implementing agile product development across every element of our business. We then have taken that and like really focused on driving a go-to-market approach that's modern and that really addresses our clients' needs. So we're bringing a product, marketing, sales together; bringing really modern tooling to seek out new customers, drive them into our products and make sure we're managing them successfully. That then drives to client listening and client success. So as we are delivering for our clients and driving success, we have been modernizing all of our internal capabilities to listen to our clients. We call it institutionalizing client listening, making sure that we're able to bring the voice of the client into every element of our business, our operations, but then also drives the feedback loop back into the agile development life cycle. And that results in being able to provide a very strong return on invested capital for our clients. Like the solutions we provide give them a lot of value. Then of course, it accrues to our value as well. And we're then able to measure ourselves as a modern technology company. We've been starting to provide you more KPIs that are designed to give you leading indicators, but also just metrics that underpin the operations of our business and the success of our platform. So as we've been doing all of this, we've created a really interesting flywheel across Nasdaq. So I'm going to start by saying, we start with us as a market operator. And as I mentioned, these three key themes of liquidity, transparency and integrity. Those are three themes that really underpin the role of a market. So we provide liquidity. We make sure engines are really the engine of liquidity, we make sure we have transparency out to our investors and integrity across the market system. And we've been able to parlay that into a whole suite of capabilities for our clients. So the -- we have all three within our markets. And then as we go and provide workflow and insights tools and index products, we're really driving transparency out to support corporates as they're managing their lives with their investors; to support investors as they're making asset allocation decisions; and providing transparent, investable products that have this great innovation, underpinning with the Nasdaq brand, out to the broader investor base. And then as we go into our Financial Technology division, we then focus in on integrity with our anti-financial crime solutions and our regulatory compliance, really driving integrity across the entire financial system. And the reason that they see us as a great partner to do that is because we started with our surveillance. So across the capital markets, we have the most scaled solution that allows broker-dealers to manage their lives in the markets and bring integrity to that experience. That then allowed us to go and expand into the broader financial crime management. And then of course with regulatory compliance, it's a natural for us to be a partner to them in that area. That then drives right back to liquidity. So the capital markets technology, whether it's providing market technology to other exchanges, or risk management and trade analytics capital management capabilities to the broker-dealer community through Calypso, all of that is designed to drive more liquidity back into the system. So free up capital by being really strong at risk management, having really modern technology to support the markets themselves, but then maximize the liquidity back into the system. So this is the flywheel that we see as underpinning how we've grown and expanded our company. And we're driving ourselves towards these four key megatrends that underpin the industry. Hopefully, most of these will look pretty consistent to you. We've been pretty consistent in talking about them. So the first is modernizing markets. We now are a hyper-resilient, scaled, hyper-low latency, cloud-native trade life cycle technology provider. And we provide that to our own markets, and we've been rolling our next-gen trading platform out to our derivatives markets across the U.S. and Europe while we've been providing that next-gen platform to our Market Technology clients across trading, clearing and settlement. And we are really proud of the fact that we are driving that innovation across the industry. And we're seeing great pickup across the world because they know that we can be -- we can make them more scalable, more nimble and more responsible to their investors and their clients. With the transformation of the investment landscape is -- means, as you all know -- I mean, there's an ever-increasing amount of investable assets out in the world. But the way that those assets are being deployed is new and different over time. So the rise of passive, this unstoppable rise of passive investing, has clearly benefited us as a scaled index provider. But we also provide solutions that help active managers become more sophisticated in driving their investment strategies, making sure they're allocating their assets successfully across what is growing, what is expanding, what is going to meet their specific investment strategies. And then the drive towards sustainability. This is an area where corporates, banks and investors continue to have a need for strong data, consistent data and new abilities to be able to measure and report on that data across all these various taxonomies, regulatory agencies in different ways; as well as out to their clients, their employees and others, so that they understand what they're doing to drive towards sustainability. And we can -- we are a very unique partner in helping them do that. And then lastly, with increasing investment in resilience and risk management, that is an area where we've been focusing on anti-financial crime. We now have, with Calypso, the ability to really modernize the way that people manage risk, and with regulatory reporting, bring resilience into the banks. Being resilient as a bank operator is the #1 -- a core element of enabling them to grow. And so if we can provide great solutions to help them be more resilient and make sure that we're bringing more advanced technology with that capability, it gives them great value, it gives them the right to win and it gives us the right to win as well by providing -- being a partner to them. And then underpinning all of this is this unstoppable force of technology. The cloud and AI is defining every element, every industry, every element of the capabilities that our clients are moving towards, and we are able to provide to them. And it's a huge area of focus for us as well. And because we're aligned to these megatrends, we now have a very large total addressable market and serviceable addressable market. Just want to take a minute to define those two. So our total addressable market is defined by looking at all the solutions we have in the market today available for our clients, and looking at how much the clients are spending both on internal build and vended spend to be able to meet those obligations. So essentially, it is tied to what we have in market. This serviceable addressable market is only the vended spend. So we believe that this is a very good way to look at what our true market opportunity is. Because in some cases, we are in fact replacing internal build. In other cases, we might be replacing vended spend. But in every case, we have a growing TAM and a growing SAM. So we have tailwinds across our total market opportunity, tailwinds across the serviceable addressable market. And in most cases -- actually in every case, the serviceable addressable market is growing faster. So what we're finding is clients want to have fewer partners, deeper partners. And they are relying on external partners more and more to provide bespoke, purpose-built solutions for them. So I'm going to take a moment and take a step back to 2017 when we started on our journey and say, what have we been able to achieve for our clients? How have we grown our platform? And today, what can we provide to them? So back in 2017, we started this strategic pivot. We asked ourselves, what are we great at? What are we not so good at? We get asked that, too. What do our clients expect us to be great at? And where do they see us as a natural partner? And the last question is a really important one: And what are the biggest challenges our clients are facing? And where do we have the right to win in serving them? And so we went out and started talking to customers. And I spent time -- a lot of time with bank CEOs, COOs, and really tried to understand more deeply how can we become a bigger and better partner. And what we found was that they did see us as a partner. They see -- because of our role as a market operator, we provide a critical service, but it was a very specific niche service to them on helping them establish trading capabilities and making sure that they have a great trading experience. And that included the integrity of trading across trade surveillance. But when I asked them what their biggest problems were, one CEO spent the entire meeting on anti-financial crime. All of it was about how they are managing that issue, how challenging the issue is, why the technology was not fit for purpose to help solve that problem for them. And it was, "Thank you very much for helping us solve this one area within surveillance. But we have this much bigger issue, and this is where I'm spending a lot of my time." Another CEO -- or COO spent the time talking to me about post-trade processing, post-trade infrastructure, post-trade risk management, and collateral management clearing. All the things that helped them navigate the public markets, as well as OTC markets, successfully. And how challenging it was to bring all of that together, to use modern technology to drive data management and capabilities to make it so they could ultimately report to regulators successfully. And it was really interesting. It was a great learning opportunity for me, and this was several years ago. But we heard these messages consistently from clients. So while we were a partner, they saw us being a partner across liquidity, transparency and integrity. We were in a pretty niche field and they were looking for someone who could be a bigger partner to them. And so as we then came back, did very deep dives across all of the areas of risk management, financial crime management, regulatory compliance, and looked at also across banks, brokers, investment managers, looking also at how these apply to market operators. And then of course in general, there's a corporate need for a lot of these capabilities as well. But I think that our view right now is that the corporate issuers primarily look to us to help hem navigate the public markets. And we do a very complete job with that across IR, governance and ESG. So today, on the back of the investments we've made and the way that we've expanded our business to be a modern provider, we are a complete solution provider to our clients across all the areas of liquidity, transparency and integrity, that really denote who Nasdaq is as a brand and where we have a right to win as a partner. And so we have a huge opportunity in front of us to continue to drive our solutions across the industry to have a bigger impact on them and a bigger impact on our shareholders. So as we move forward, we have three key themes that you'll hear throughout the morning. We're going to focus on integration, innovation and acceleration. When we talk about integration, we're bringing Adenza into Nasdaq, but we're also making sure we have a divisional structure that really is integrated in providing a full suite of capabilities to our clients within each division and then across Nasdaq. So again, we call that three divisions, one Nasdaq. That integration also of Adenza is critically important. We started on day 1, and we're well underway. But I do want to mention one thing, which is that we have chosen to retire the Adenza brand. We're going to maintain the Calypso and AxiomSL brands. They're industry-leading solutions with decades of history. And we believe that they're tremendous brands out there. But we are going to leverage the Nasdaq brand with the solutions brands of Calypso and AxiomSL. So we might be saying Adenza a few times today, but over time, we're going to be really focusing on the Calypso and AxiomSL brands. On innovation, we're, as we mentioned, continuing our cloud journey and really focusing now on all the benefits that our investments over the last 10 years have made, that all the -- because we now have an amazing ability to leverage AI and bring more actionable intelligence and more capabilities across to our clients today. And then all of that then results in acceleration because we have the ability to have a single operating model, single team, evaluating our clients and opening up cross-sell opportunities. So let me go through each of these in a little more detail. With integration, these metrics really apply to the Adenza integration. And we expect to be able to action 70% of our synergies in 2024 for full year effect in 2025 and then complete the remaining 30% in 2025. So the net synergies of $80 million, we are well underway, and we expect to have majority of them actioned this year. The second is that we're accelerating our deleveraging. So we expect to be at 4x debt-to-EBITDA ratio 9 to 12 months ahead of our original plan and then down to 3.3x at least 6 months ahead of plan. And that's really a focus on making sure that we are -- obviously, the power of the platform, but then coupled with deleveraging activities. And Sarah will spend more time with you on that later this morning. When it comes to innovation, at this point, we want to get the AI tools in the hands of all of our employees. We looked at 2023 as the year of experimentation with next -- Gen AI or generative AI. We've been a provider of AI capabilities now for many years. In fact, the Verafin platform, our financial crime management platform, was really born on the back of leveraging AI to solve that problem more successfully. We also have been leveraging algorithmic AI across our organization for several years now, and you'll hear some examples of that in the technology panel. But with generative AI, it's a whole new opportunity for us. We have put all of our data into a cloud framework that allows -- with modern data management, and it allows us to tap in data sources, that gold source data, and bring out new value for our clients. And we're doing it both on the business, kind of how do we make ourselves more efficient and effective, and into the products in how to make our products more efficient and effective. And we have five key themes that underpin our AI efforts. The first is coding companions. So as a software provider, how do we become more effective and efficient in delivering software as well as providing even higher quality by having these coding assistants working with our engineering teams. The second is content creation. Whether it's marketing content, legal content, whether it's also just looking at how we kind of bring our content into these large language models to make it so it's more discoverable to our clients, to our -- and even to our teams. So one example that Brendan will talk about is how we're actually bringing all of the content associated with our documentation on our products and make that just at the fingertips of our software engineers. The third is data discoverability. So how do we make sure that the data within our own organization is more discoverable? But also, how do we go out and be able to bring data together? So one of the areas we've been focusing on that is in our ESG products, making our ESG products even more valuable to our clients by bringing data from all over the world together and making it -- putting it at their fingertips. Workflow automation. You'll definitely hear more about this during with -- from Tal and Brendan in the Financial Technology area, where we're automating workloads within our tools. A lot of our tools have user workflows. And so we've been leveraging generative AI to make that a lot more efficient for our clients, which generates a higher value to them, which of course accrues to our benefit as well. And then lastly, algorithmic intelligence. This is an area where we've been focused for many years, as I mentioned, in our anti-financial crime suite in our markets. And as we bring out new capabilities into our markets, it's an area of focus for us, and you'll hear about -- more about that in the Market Services section. And then lastly, accelerate. So the One Nasdaq panel today later will bring together the sales and client leaders across the organization. And you're going to hear about how we're all helping each other open doors and create opportunity for ourselves. And as we've gotten in, we now -- and as we've been able to own Adenza, understand the power of AxiomSL and Calypso, understand we've had several voice of client tours and surveys and other things to really understand how we can unlock opportunity within Nasdaq. We feel very confident in our ability to generate $100 million or more in cross-sell revenue by the end of 2027 for full year effect in 2028. And you'll hear more about that today. And hopefully, you'll get a lot of confidence in how we're looking at bringing our solution suite to our clients across the world. So all of this underpins our medium-term outlook. We provided this medium-term outlook back in June, and we're continuing to reinforce that this is the medium-term outlook for the business. So we expect to be able to achieve 8% to 11% growth in our solutions businesses over the medium term. And as we execute on our strategy on innovate -- sorry, integrate and innovate and accelerate, we should be able to move towards the higher end of that growth curve because -- within the range that we're providing as we continue to drive more capabilities and more value to our clients. And we're going to do that all while continuing to invest in the business, but by also generating operating leverage. As we execute on the Adenza integration, we should provide you even a little bit more short-term benefit on managing our expenses. And then we want to continue to invest while also providing our shareholders a great return and leverageable -- kind of operating leverage across the platform so that we can continue to grow and scale the business and the margin. So to wrap up. As you are going to hear from our team today, and we have a nice big team with us today, these are the messages that I'm hoping that you will take away as you leave here later today. First is that we are a trusted partner to our clients and to the industry. We provide mission-critical capabilities that enhance the liquidity, transparency and integrity of the world's economy. We are a modern technology provider, so we really take a tech-first, client-first approach to developing technology and delivering that technology in modern ways. We have decades of experience across regulatory expertise, market expertise. We are a true partner to our clients as they're managing the complexities that they're having to handle across the various regulatory regimes and market regimes around the world. We have a strong track record of success in integrating acquisitions, and we're going to be applying that playbook to making sure we have a very successful integration of Adenza, or AxiomSL and Calypso. And then we have scaled revenue and recurring revenue that drives an exceptional financial profile and shareholder value to all of you. So with that, we're going to watch a short video about one of our clients and how they see us as a technology partner in our markets, and then we're going to invite the technology panel up to join us. So thank you very much. [Presentation]

Thank you, Ato and Adena, and welcome to the technology panel discussion today. My name is Brad Peterson, and over the last 11 years, I've been leading the technology organization at Nasdaq. I'm joined on the panel today by Brenda Hoffman and Hazel Dalton. Brenda is the CTO of Market Services and the Financial Technology division, which now includes Calypso, AxiomSL, our surveillance business and our Marketplace Technology organization. Brenda has been with Nasdaq for over 8 years. And prior to that, she was the CIO and CTO of the TMX Group in Canada. And I'm joined on stage by another Canadian, Hazel Dalton, hails from St. John's, Newfoundland, is the CTO of Verafin, which is our financial crime and management technology business. Hazel was with Verafin for 12 years and then joined us 3 years ago as part of the acquisition. So to get us started this morning, I want to talk about two strategic capabilities and advantages that aren't really that obvious from the outside. And the first one is we're very fortunate as a technology company to be in the same business as our customers. And if you think about it, it's very rare to have that. And we're fortunate that, as we became a tech -- when we entered the technology business, we did so in capital markets, which is geographically segmented. So we were able to refine our technology platform in the most demanding, the most active and the most competitive markets in the world. So our customers, now that we have over 130 of them, that gave them great confidence. And the heads of technology, who are oftentimes the key influencers or even the ultimate decision makers, they know that our system is resilient, it's global, it's scalable and it's secure. And we also built the capability over the last 10 years of having -- of running critical infrastructure globally. So we have colleagues around the world that are working their normal hours, fully caffeinated. We don't have to worry about shift work. And they are helping us open and close the markets and do so for our customers as well. And I mention this because many software companies, when they're delivering releases on-prem, their engineering organizations are not tuned to this always-on capability and culture. But by running critical systems like we do, as we transition into SaaS-based, cloud-based services, that is something that is a unique capability we have. So I wanted to point that one out. The second one is we have a strategic advantage in that we have unique access and relationships with the best technology companies in the world. We get to work with AWS, Intel, AMD, Microsoft and of course NVIDIA now, on going deep with them, on finding strategic projects that are meaningful to both of us, and there's very little competitive overlap. And those companies love to work with us. And they love to work with us because we're willing to go first, and we're leaders, and we take the leadership position in our industry. So as I sit here, I can't think of a company in the world that has the relationships that we have at Nasdaq with those firms. And it's one of the things that makes working at Nasdaq special for all of us here. So I'd like to turn to my panelists and ask Brenda, maybe if you could talk a little bit about what the culture at Nasdaq and why it's so special for us.

So it's pretty exciting. Our culture at Nasdaq, we embrace innovation and excellence at our very core. And so it's very fundamental with all of the talent here. We invent, we build, we innovate, and we are constantly improving what we're doing. We are early adopters, as Brad said. We are super early adopters of technology. And we lead in the industry. And so the teams -- were constantly challenging our teams and ourselves to stay at that leadership position. So we aggressively challenge ourselves to be there. So with all of that, what the beauty of it is, is we are able to attract and retain global talent, and that's pretty important for our organization. So it's a lot of fun.

Yes. And we got you from the TMX. So Hazel, so you've been here. Maybe some observations since you've joined.

Absolutely. Yes. We were really excited to join Nasdaq. We saw that as an opportunity to really grow and to really elevate our business. There's an innovator mentality here that drives us to take a leadership position and in everything that we're doing. We understand how important it is to our clients. And we understand that problem solving and building technology to solve those problems is how we partner with those clients. We are willing to be early adopters, we understand that AI, the cloud, and we understand that the importance of data in driving both. We are willing to take the leading edge in order to improve our product and better serve our clients.

Yes. And so we now have a couple of additions, as you know, with Calypso and Adenza. And you've been -- excuse me, Calypso and AxiomSL. We're retiring the Adenza name. So I'm halfway there. So it's a work in progress. But yes, so Brenda, you've been traveling around all the offices. So what did you learn? What did you learn about their culture?

Yes. So it's been great. I've had an opportunity to travel globally, meet the engineers and the product teams from both AxiomSL and Calypso, and it's been great. And there's some -- there's lots of really good things to talk about, but two big things I want to share is, first of all, the product discipline that we have for the two products is really very mature. It's allowed us to create a single integrated code stack, modular design. And what that allows us to do is, when we install to our customers, we can install in a modular way. So it supports the land and expand approach to what we do. So that's really cool. And the other thing is, for that, we ensure that we only ever have two releases of the product available to the client. And you might wonder, well, why is that so important? It's important because it allows us to continually drive innovation and modernization and focus that into the leading product. So really, really good piece of how they've set up their teams to do that. And then the second thing that's really important is the domain expertise of the engineers is incredibly deep and very intricate in the industry. And what that has enabled us to do is the engineers and the product teams are following the regulation and the changes in the regulatory frameworks. And they follow those intimately. And as those new regulations are being published, we already have the modules for that new regulation. So it's pretty powerful to have the engineers following that intricately. And then when that thing comes, when that regulation is published, boom, we have that module ready for our clients to take it out. So really super powerful. So it's excellent.

Excellent. Well, let's switch topics to our foundational technology. And we've -- as Adena mentioned, we have built core technology. So let's talk a little bit about that. I'll start with you, Brenda.

Okay. Great. Love to talk about this. So we have built and perfected our core message-based architecture and technology here at Nasdaq. And what that means is, for many of our businesses, we are required to have technology that can perform at extreme levels. So throughput levels, latency levels that are all ultra-low latent, extreme throughput, very tight determinism, mission criticality, security. And all of that embodied in resiliency. So all of those things that we require to run our markets, we have in our foundational structure over our messaging. And what many people do not know is that, that underlying technology is used across many of our businesses. So it is used in the 25 markets that we own and operate. So that's in the Markets Platforms division, Tal Cohen's division. So the equity markets in both North America and Europe are using it. The options markets also in North America and Europe are using it. And then in Nelson's business in Capital Access Platforms, we're using it in three major places. We're using it in the IPO experience and processing, and that's among best in the world. We're using it in our global index platform that's processing in excess of 4,000 indicies. And we're also using it in our real-time data plant. So that's the -- leading in the industry, it's powering the industry, and we have billions of eyeballs looking at that every day. So it's really cool because we built it, we own it, we control it. And it's powering underneath all of those businesses. So it's...

And there's really very little third-party licensing in that. So that truly is our platform, and it drives great economics as well for us.

Right. And we're planning on and we're working now to take that expertise and that talent forward to our fintech clients and to AxiomSL and Calypso.

Yes. So Hazel, we've been talking a lot about builders. And why is that important to us and also to our customers?

Our customers aren't looking for a vendor. They're looking for a strategic partner who can work with them to solve problems. And our clients, our customers, understand what problems they're trying to solve. So it's critical that we listen to our clients. In our industry with our technology and our team, we have the track record that allows us to really step into that position and be that strategic partner. We have -- as Brenda mentioned, we have the core -- we have built the core technology of the markets at Nasdaq. And as we acquire new companies, like Verafin, like Adenza, we are bringing in more builders who have their own domain expertise, who are bringing that culture of innovation and of building technology into the company. We have a long tenure. People come here and they stay here. And that development expertise, that domain expertise, allows us to learn from each other and allows us to be a full strategic partner to our clients.

And there's -- maybe give a couple of examples where it's gone both ways, that we've shared some of that expertise.

Absolutely. I have two great examples. Verafin is moving into the Tier 1 and Tier 2 space. And as we work with financial institutions in that area, there's a requirement that we are able to do hot-hot disaster recovery in the cloud. Now Nasdaq, I mean, Nasdaq is known for your resiliency. We've been able to pair our developers, our engineers, with Nasdaq engineers to really give us, again, that domain expertise to tell us how you have done it and the approaches you have taken. And that's allowed us to mature very rapidly in that area. On the other direction, Verafin has a deep expertise in algorithmic AI. We've been working in AI for 20 years. We've been able to partner with the developers in the Trade Surveillance organization and bring that expertise into that product, again, in the cloud.

Yes. And another thing that I think when we were doing due diligence that I was very impressed with was your data consortium. And it was built on the cloud. So tell us a little bit more about how foundational that is to the success for you and the customers?

Verafin started with smaller FIs in North America. So small banks, community credit unions. When you work with a community credit Union, you learn very rapidly that the disparate systems are a barrier to an institution being able to do investigation, even within a single institution. So as Verafin worked with our 2,500 customers, as we brought them on board, we did deep dives into how their data is stored within a single FI. There are more than 70 banking cores in North America and a large number of ancillary systems. Think wire, ACH, check, point-of-sale, teller systems. What Verafin is able to do, through a deep understanding of the data, is bring all of that data into a normalized model. And truly, we saw the power of being able to have a single view of one of our clients' customers from an investigative and a crime detection perspective. We look at our data consortium now, both within a single FI, but also across our cloud. And that is -- that allows our AI analytics to take a big data approach and gain cross-consortium insights that truly power our financial crime detection engine.

So that's made you look like one of the biggest financial institutions on the planet, so by looking at it and putting all those pieces together. So Brenda, you've done some similar work as well to position us for the next wave of innovation with the data platform. So let's talk about that.

Yes. So at Nasdaq, back in 2008, we had all of our data from all of our markets and all of our platforms on-premise. And it was becoming increasingly more difficult to manage and maintain and scale that data. So back then, we started and we created our data infrastructure and our data lake. And much like what Hazel said, what they did at Verafin back then, we adopted the approach of everything that goes into that data lake has to be standardized and normalized. And so if you roll forward to today, that data lake today is -- we are pumping over 200 billion messages a day into that data lake. And so if you think about that, that's 4x what it was just 4 years ago in 2020, and we've been able to scale on that. And with the standardization of all of that data, we've also been able to ensure that as we build a common modern APIs to access that data, that's allowed us to build products quickly. It has allowed us to get to that data quickly. And there's a lot that we can do as we continue to modernize and standardize there.

And you've also driven the cost down 80%, of storing those messages, with that growth as well. So we've gotten scale out of it that way.

Yes. So one of our themes is always optimization, optimization. So as technology and innovation progresses, we're watching that very intimately, and we're always looking to optimize on our -- on all of our technology. But in particular in this large data lake, it's very important.

Yes. And one of the things, pointing out that we're in the sense as our customers. So while we're using this technology, we're able to leverage that investment across ourselves and our customers. So it really is a true -- a very unique situation for us. And so also, let's talk about cloud advancements. So for our markets, and I believe a couple of years ago, we were up here talking about that. So let's check in on that progress.

Yes, we were. So yes, last Investor Day, we were 1 day of a launch. We had our first day behind us. We are the first global exchange operator to take a major regulated market to cloud technology. And we did that back in 2022. And of course, in doing that...

We announced it in '21, right? We said -- yes.

Yes. Yes. So we built the teams. Everybody back then said it can't be done. Our 130 market operator clients, they wanted us to go first. And so we assembled a team of engineers, of our business people, of our lawyers to work with the regulator and with AWS, our preferred cloud partner, and we set out on a journey. And in just under 11 months, we were launching that market on cloud infrastructure. And what's very important about that journey is we created a blueprint. And the blueprint has been core to what we've done going forward. That blueprint, we can use it to continue to progress our markets, the 25 we own and operate, which we have done. And we have also -- that blueprint then, we're taking it to our fintech clients. And we're also taking it to AxiomSL and Calypso, looking at that blueprint because we want to accelerate the cloud adoption with those products. So the...

Maybe talk about the results. So what did you do? People said it couldn't be done, you couldn't run things that fast or -- how did you do it?

Yes. So we had better performance metrics running on cloud technology than we did on-prem. So we had 10% improvement on our latency and we also had tighter determinism. So there were some improvements made and it's been a great journey.

And we continue to roll our markets, as Adena mentioned, our modernization program and rolling to this platform. So Hazel, let's talk about you, you were very early adopters of the cloud as well. So how did you make that decision?

We had a vision. We believed that we could help financial institutions fight crime. And coming back to our data consortium, we saw the power we had within a single financial institution and believed and understood that the cloud could really take us to that next level and allow us to leverage big data analytics to analyze across our cloud and across multiple institutions. We had a goal of being a market leader and the cloud enabled us to scale quickly. It enabled us to implement a continuous release cycle so that we could provide value on a continuous basis to our clients. And we were able to do that from St. John's, Newfoundland, which is a small corner of North America. So it really showed that we had an ability, using the cloud, to go into any area of the world globally because now we have the blueprint, we have the infrastructure, and the cloud exists across the globe.

Yes. So you have a consistent delivery mechanism globally and have some early opportunities in -- going across the pond to Europe right now. So let's shift. I think everyone is waiting for AI. So let's shift the topic to AI. Yesterday was the 7th anniversary of the formation of our AI organization and team at Nasdaq. And we now have -- in every one of our businesses, we have, in our products, we have an AI capability in market. So we have made a lot of progress. We think about AI two ways. One is in our products and on our business. And really, in our products is an incredible opportunity for automation for our customers. A lot of the benefits of AI, you'll hear, are going to accrue to our customers who have a lot of workflow that is human-based. We also think it's quite attractive from a revenue growth standpoint. So that is on the -- in the product side. And then on the business, and Adena mentioned this, is across almost every function of our organization. So we think about that as mainly a productivity improvement opportunity. And we first found success, Nelson's group in Capital Access Platforms was the early adopter of that. And we got motivated by machine learning, really having human equivalency with computer vision and then natural language processing capabilities. So we found early in-product success with our sentiment -- investor sentiment studies, also automating our advisory services reports and then in organizing and collecting ESG data. And things started to really take off in 2008 when there were open source language models. And we saw the capabilities of those. They were producing good results. And we knew that this technology was advancing exponentially. And so when ChatGPT and Anthropic launched Claude, we weren't surprised. We weren't surprised that those incredible capabilities were delivered. But our view is that as open source continues to follow those advancements, we see the open source models continuing to offer a very attractive alternative and an attractive way of putting anything that's going to be high volume into a product. We think open source is going to be the way to go. And we also are therefore designing because there's just so many entrants and so many models that we're designing, so we can swap out models as new ones come up. So that's our strategy there. I know Hazel, from the beginning, you've been using AI in your product. So some of the use cases you guys are excited about.

That's right. So Verafin's roots are an algorithmic AI. That's where we started 20 years ago. We moved through -- we still use machine learning heavily today. We offer the ability for our customers to use Champion Challenger models to tune our -- to tune using their own data. And of course, the data that we have available to us in our data consortium truly allows us to -- allows our machine learning models to shine. Because -- I mean, training data of course, you feed your machine learning models, you give them a broader scope of data to look at, and you will get better results. We are learning -- leaning into generative AI today. We're using large language models to reduce time spent on research in our alert workflows, time spent on documentation, alert reviews. We believe that we'll have an attractive ROI, and you're going to hear more about here today from Brendan Brothers when he talks about financial crime management technology.

Excellent. And you have something in the product as well coming. Do you want to talk about that?

Yes. We are launching our first AI-powered order type in our equity market, and we'll be launching that in the first half of this year. It's called Dynamic M-ELO, and Kevin will be talking about it later today. So we're excited to get that organized and in.

Yes. And with the foundation you laid with cloud and the data, it's just taken a handful of folks to get that up and running.

That's correct. Yes. So everything we talk about in terms of the cloud, organizing all of the data there in those data lakes, yes, some of these AI capabilities that we're building can quickly be brought to market because of the way we've got our infrastructure set up.

So let's finish off on the business. So where are you most excited obviously, in technology? You can talk about that function.

Yes. So we certainly believe and feel that the biggest benefits are going to be within our tech teams. The technologists globally, even after -- as well as when I was out talking to the AxiomSL and Calypso people, were already using all of the tools. And the engineers are very excited. So we have three main categories. As Adena mentioned, we're using code companion tools. And in the different areas of technology, we're looking at different tools. In test automation, we're looking deeply there. Test automation, including creating test scripts, running those huge regression beds and also looking at the results of those and using AI to do that. So there's a lot happening there. And then also large language models. So we are -- for products, Adena mentioned it as well, we are taking, for example, with our products, and we are pushing all of our product documentation. So all of the big technical specs that we have for docs, all the message API specs, all of those specifications, we're putting them up into large language models. And again, putting all that right to the fingertips of the engineers, and they're just loving it. So we are seeing that it's going to have some big efficiencies for the engineering team. So we're very excited about that.

And about half the company.

Yes.

Yes. Well, as you can clearly see, we have progressed as a technology company. We have core fundamental technology. We built data platforms and strategic data lakes. And we possess these incredible value-added high-value data sets that are key ingredients for AI. So we will continue to challenge ourselves to innovate and to lead the industry. So thank you, and thank you to my panelists.

Thank you. [Presentation]

Wow. That really exciting. I'm Nelson Griggs, I'm Nasdaq's Co-President as well as Head of our Capital Access Platforms division. Now this division came together about 1.5 years ago with the purpose of providing our investor clients and corporate clients more transparency. And although the capital markets backdrop has been a little bit more challenging than we had anticipated during that last 1.5 years, we are as enthusiastic as ever about this division's ability to deliver scale and long-term durable growth for our shareholders. So taking look at our division, I'm going to begin with the power of this -- taking to our agenda, I'm going to begin with the power of this division. Now we have a strong track record of delivering solid revenue growth that's made up of significant amounts of annual recurring revenue, coupled with high-quality index AUM. This is backed by a very attractive and growing operating margin. Now looking at how we serve our clients. We have a broad portfolio of scale businesses where our success is derived from trust, best-in-class platforms, as well as a very strong flywheel effect. We report to you on three subsegments with the first being our foundational and leading Data and Listing franchise. We have the world's fastest-growing scaled Index franchise as well as our Workflow and Insights platforms that help both corporates and investors make more informed decisions through a series of software and data tools. And when we think about our client base and the penetration we have, it all begins with having one of the world's 100 top brands. This brand gives us access. It gives us credibility. And as we think about doing more with our clients, launching new products, expanding to new geographies, it starts with the brand. With Listings, we now represent 21% of the world's global market equities capitalization. This is up 290% over the last 10 years. And that compares to just 60% growth from our closest U.S. competitor, which I think you may know. We also have billions, billions of eyeballs on our data each and every day. Now that is derived from a very strong core client base, but also delivered through the likes of your Apple iPhone, Microsoft Excel, Yahoo! Finance. Throughout the world, our data is being leveraged more and more each and every day. And looking at our Index business, we finished 2023 with assets under management of $473 billion. This compares to $396 billion of an average for 2023. So the growth in that business has been phenomenal. And looking at our Workflow and Insights businesses, both on the corporates and the analytics side, we have very strong penetration, which allows us more access, more credibility with clients. But there's also a significant room to run in both of these businesses, which we'll talk more about that as we go through the presentation. So we are fortunate to be capitalized on three of the megatrends that Adena highlighted in her presentation. So I'm going to give you a bit more context on each one. With passive investing, there has been a significant increase in total investable assets throughout the world with passive being a major beneficiary of that. Now we're in a very fortunate position inside this business to have the world's leading growth index and also the fastest-growing index franchise. Looking at how companies are looking to modernize and digitize their solutions, there's five key themes here that we address. There's still a big trend for clients to move from offline to online. There's a focus from clients when they think about how they're moving to more consolidation of their partners. And they're looking for nimble solutions in the cloud with modern delivery capabilities, such as APIs, and really a company that has the vision around AI. And on sustainability, we still see tremendous growth in all of our product lines for sustainable ESG products and services. There was a recent study by Teneo that indicated 92% of corporate CEOs are sticking with their ESG agenda. And our solutions are being used by more and more clients each and every day. And when we look at the SAMs and TAMs for this division. We have a SAM of $10 billion with a TAM of $32 billion. Adena described in more detail the makeup of how we look at the SAMs and TAMs. But our division spent a very significant simple amount of time thinking about the SAMs and how our product-market fit and what geographies we're going after to recognize this is really how we're going to drive our product road maps and how we think about our go-to-market engine. So within Workflow and Insights, we have a $6 billion TAM. The index franchise has a $4 billion TAM. With each of those, there's a component of sustainable ESG TAMs which represents $3 billion. So these are fast-growing in each case. The SAMs are larger than the TAMs. So we believe we're in the right markets, the right areas, with the right products today to grow our revenue on a stable basis. And as Adena mentioned, and you'll hear from some of my other colleagues, we are focused on integration, innovation and acceleration. So for the last 1.5 years, this division has spent a lot of time thinking about our scale and how we're going to operationalize the business to be more effective and also drive more margin into the business. That is going to -- that's on a continuing basis as we think about role alignment, location strategies and how we're getting on to optimize the ability of these two product lines coming together as one division. When we look at our go-to-market engine, there's a heightened focus at Nasdaq on our client understanding, our voice of clients, really the revenue operations engine that we have that goes along with our marketing teams, our sales teams, client success. So when we think about that large client base we have, how do we do more with those clients, expand new geographies and attack -- or bring on new logos to the platform? Now obviously, it's been a more challenging buying environment in the corporate sector, where you've seen extended life cycles of the buying life cycle. But that's starting to kind of more normalize in our world. So we think the combination of our division alignment as well as our go-to-market engine gives us a lot of power in this division. Lastly, I want to highlight that we sit on a tremendous amount of gold source proprietary data inside this division. We had a feeling of this opportunity when we brought the group together, but we're seeing more and more opportunities to leverage this data to bring more opportunities to our clients and grow our product lines. So I'll talk more about that as we go through this presentation, but it all really starts with this expansive client base. And when you look at our client base and our ability to do more with our clients, we have today 15,000 global clients. They make up -- they're made up of 10,000 corporates and 5,000 investor clients. But as importantly, we have over 300,000 users that are going into our systems each and every day that build up another data set for us to leverage. On top of that, we have over 200,000 corporate, investor and investment strategy -- or really coverage on those client bases, corporates, investors and investor strategies, that give us millions and millions of data points. So when we think about scale in this division, it's a combination of two things. It's how we think of the go-to-market engine to do more with our current clients and bring on new logos, as well being able to leverage this massive data set to do more with our clients and gain additional insights. Let me take a moment to describe that on this next slide. There's a lot here, so I'll move to the side here. Brad highlighted that our division was a very early adopter of both natural language processing as well as predictive AI capabilities inside our products. So when we think about the gold source data, this is on the left-hand side of this chart. This is just a sampling of all the data that we capture with inside our platforms. Now the overwhelming majority of my products today, our product, are really on a modern cloud architecture where we have very sophisticated API delivery capabilities. The advancements in generative AI are allowing us to go into the data sets and bring new insights, not only to our clients, but also to our -- form our own business decisions. This is very important in the Index business when we think about trends and the new products that we're bringing to market. But in addition to that, really our goal here is how we think about new data sets inside of our products to make them stickier and more attractive to our client base as well as developing new modules and new products for our clients. So moving now to our strategic priorities and how they really aligned with these really mega industry trends. I'm going to begin by taking -- talking you through the top three areas we're focused on for 2024 and beyond. We want to continue to build on tremendous Data and Listing leadership that we've had. Looking at how we're going to grow our Workflow and Insights portfolio through this go-to-market execution and the engine we've created as well as bringing more innovation into our products. And lastly, as mentioned, we have this amazing growth Index franchise that we think we have a significant amount of room to run to grow our market penetration. I also want to highlight on this slide that, in 2022 when we're talking to you, we mentioned we have a $250 million ESG opportunity with inside Nasdaq. And we're well on our way to tracking towards that and our product line is growing. The ways I'll highlight that is our corporate and investor clients are leveraging a series of workflow tools and modules from us to help them on their sustainability journey. But we also are finding new data opportunities with -- inside that client base as you think about all that we're capturing and the ability to create new data sets through generative AI. We have an aligned group of our corporate clients -- or our corporate business and the Puro asset, which is our carbon removal platform and how we help clients think about where they are in their sustainable journey leveraging carbon removals. We also have the opportunity inside the Index business, as there's been more definition bringing to what an ESG index is, both for our clients as well as for us. So that's a very -- a growing part of the business for us. And lastly, when you think about AxiomSL, they also have an ESG module inside of their platform. So all in all, we have a tremendous opportunity still with inside the ESG growth vector, and we're seeing ourselves tracking towards that long-term goal of $250 million. I'm going to take a quick look now at the workflow -- or sorry, the Data and Listing business. We've had significant market share gains on both product lines. Over the last 5 years, we've had a 74 average win rate for IPOs and we've had $1.3 trillion in market cap transfer from our largest competitor. On the Data business, we've been very focused on several themes, but one of which is the -- moving our clients to more enterprise licenses. Over the last 5 years, we've had a 100% increase in our clientele using enterprise licenses. This is going from 30 to 60 and now represents about $75 million of that revenue line. We've also been very focused on how we expand to international markets. So this revenue has increased 55% over the last 5 years and now stands at roughly 43% of the Data business line revenue. So think about how we're going to execute in 2024. On the listing side, I'll pause for a moment and talk about the environment. I have been in the listing business now for 22 years. And you go through cycles of ups and downs. We've certainly been in a more challenging listing environment in the last 2 years, but we do see activity picking up quite a bit. We are returning to not 10 pitches a day, or at least 10 a week now. So the pipeline is building up. We are seeing a diverse group of clients thinking about going public. We have a combination of sectors on the retail side. We have a strong pipeline in health care biotech, which plays to our strength, semiconductor companies. It's a pretty diverse portfolio. I think key to this market kind of getting that light switch turned on again and the momentum building, we have a handful -- a good handful of companies going public in March and April. And the more success they have, we do believe the back half of the year starts to pick up a lot of momentum in the listing business. When that does happen, we're certainly ready for it. Our strong brand associated with our clients of growth and innovation, my tenured team and the ecosystem we have, with the various influencers for listings, as well as what we believe our best-in-class marketing and our unique corporate service assets gives us a very unique advantage to win, to continue to drive momentum. One quick highlight here I wanted to bring up was I hope you noticed that the last fall, we had a company named Linde switch to Nasdaq. Almost a $200 billion market cap company. They were originally listed on Frankfurt and the New York Stock Exchange. And as they're moving their listing to solely in the U.S. in 2023, they also opened up an evaluation of who their listing partners should be in the U.S. They have been a long-term corporate service client of ours going back almost 7 years. And when they looked at the ability to leverage our Index franchise, the growth assets we have in terms of the branding and marketing team's innovation, they made the move to Nasdaq. And that was our largest market cap transfer in history, almost $200 billion. On the Data side of the business, there's a lot of discussion with data vendors about moving to the cloud. We've been in the cloud for many years. This business all starts with leveraging our brand, but also creating a frictionless data experience for our clients with multiple delivery capabilities that allowed us to go into new geographies and offer new products. We've been talking to you for several years about our success in APAC, to grow this business, and we continue to see that as an opportunity. But I wanted to highlight, in 2023, we signed our first-ever basic enterprise license in the Middle East. Out of Saudi Arabia, a retail broker, Awad -- or a retail financial provider, Awad, signed a Nasdaq basic client. And that's generated a lot of interest in that region. And we have many pockets like this in the world, we're able to lead in with the brand and talk about the ability to grow and partner with their businesses. So turning to Workflow and Insights. This business is made up of a significant amount of SaaS revenue, over 85%. We have very high client satisfaction with a Net Promoter Score of 59 over the entire solution set. Very large client base. We also have a lot of data that we capture. This is one of the key areas where we think to enhance our products through the use of AI. As an example -- two examples. We capture, on a yearly basis, over 235 investor meetings in our CRM tool. This provides us very rich, unique data that we can then provide to our clients on an anonymized basis about market trends and buying patterns. Inside our analytics business, we have over 30,000 investment strategies that we capture. And this allows us to think about how we can leverage that data on an anonymized basis in other products. So the quick example of this is that we have the ability now to -- with our data lake to use eVestment data to inform our Investor Relations tools on the corporate side. Again, patterns of where market trends are going, ESG trends. So again, this idea of bringing more unique data sets to this product set is pretty important to us and exciting. Now when we think about our success in 2024 and beyond here, this is where we're really focused on, this go-to-market engine as we see more normal buying power -- or patterns return, new logos, cross-sell opportunities, global expansion. These are -- all these tools are built on a modern architecture of cloud, enhanced data insights, AI acceleration. And I want to give three quick examples of new products and modules that we launched in 2023. The Nasdaq Metrio platform is the world's leading ESG service to allow companies to capture, measure and then report out to multiple stakeholders their ESG metrics. We launched a tool called Sustainable Lens, which is an AI -- generative-AI-powered tool to help companies benchmark their ESG metrics and report out, again, to shareholders. And with inside analytics, we have a module -- a new module in there called ESG Lens that allows our clients inside the analytics tool look at their -- monitor their ESG characteristics of their portfolio. So a quick highlight on this slide is as we think about growing and expanding inside our client base, we have a very large global investment manager that has been a client since 2006 for our eVestment assets, but they also use other providers as well as some homegrown services. And as we have launched these new modern API capabilities, it really caught their attention. So they did a full view of their services at -- in 2023. And at the end of the year, they had really moved all of their homegrown as well as their other vendors on to the eVestment platform, where now they're taking all of our services, all of our modules. And this is now a top 10 client. So as we look at it to modernize our go-to-market engine across both the corporates and investors, we have a lot of opportunities like this to grow our client base and grow the work we do with them. Now turning to Index. We want to provide a little bit more detail on the pie chart about how the revenue is derived. But over the last 5 years, we've had very strong revenue growth, 21%. We've had $198 billion of net inflows into our Index business with $86 billion of that coming from non-Nasdaq 100 products. We take a very client -- or a customer-centric approach to the partners we work with. Today, we work with over 75% of the top 200 EFT sponsors. And today, even with the tremendous growth of the NDX, 70% of the revenue comes from Nasdaq 100 products, but still 30% coming from non-Nasdaq, non-Nasdaq 100 offerings. And in addition to that, we have significant interest in the volume-based products, the futures product. So this is a real, real strong franchise, that we have many different vectors to continue our growth profile here to kind of find that next leg. We look at global expansion opportunities. It always starts with the Nasdaq 100, but then we'd find more ways to work with ETF providers. Inside the new clients, we have unique opportunities here, and I'm going to highlight the insurance annuity space, also the retail broker partnerships, and then there's an enormous amount of emerging ETF providers. But coming back to the insurance annuity space, this is a very fast-growing market. There's over $2.5 trillion of investments inside the insurance annuity space with $700 billion tied to index benchmarking and index products. Today, the Nasdaq 100, really without much of an effort, has $40 billion of that. We have started a program to go after this market, and we believe, be a meaningful player and really get our fair share, hopefully more than our fair share. But there's a lot of room to run in the insurance annuity space. And lastly, when we think about new products, we're a leader in quantitative, income, thematics and then also Nasdaq extensions that we focus on. So a quick example here is with the Betashares complex out of Australia. We were, about 5 years ago, tip of the spear, came with the Nasdaq 100. They launched that product and now has $3 billion in AUM attached to it. We also work with them on 17 other ETFs. This has now grown to about a $7.5 billion AUM opportunity, half of which is tied to ESG indices. So our ability here to do this throughout the world, we think, is significant. And we have a lot of opportunity to go ahead and find new partners, the right partners, and we get paid for the value that we bring to them. So I'm going to wrap up with the thought here that our division is very well positioned for future growth. We have a history of delivering strong annual recurring revenue, strong revenue growth, as well as expanding operating margin. When we think about back to the peak of the capital markets for us in 2021 and then the softness we've experienced the last 2 years. In those last 2 years, we've been able to maintain our revenue growth with inside our medium-term outlook as well as expand the margin over that time. So our confidence comes from this unique product set we have and the opportunities around this combined corporate and investor franchise to really be more and more to our clients. We're making investments in really the key mega trends we think are driving our client success. The team is myopically focused on this revenue engine that we've created and how we bring scale and more margin opportunities to the business. So with that, we're going to take a short 10-minute break and come back with a video with another client, M&T Bank, and that's followed up by a presentation by my colleague, Tal Cohen. So thank you. [Break] [Presentation]

Good morning. Good morning. I absolutely love that video. Before I started, just a housekeeping announcement. We're running about 10 to 15 minutes late today. So as you look at the agenda, please account for that. I'm Tal Cohen, I'm Co-President of Nasdaq, and I lead our Market Services and Financial Technology divisions. And it's my absolute pleasure to talk to you about our newly established Financial Technology division. What I'm going to cover today are as follows: How we'll deliver strong and consistent growth by solving our clients' toughest operational challenges, how we're well-positioned to lean into powerful structural trends that are growing our addressable market, how we'll catalyze cross-sell efforts and implement a One Nasdaq way of working together. Let's get started. On the left, you'll see that we've established 3 subdivisions under Financial Technology: Financial crime management technology, regulatory technology and capital markets technology. On the right side, you'll note the exceptional financial profile of the new division. It's highly scaled, generates strong recurring revenue and impressive margins. The high average annual contract value underscores the mission-critical solutions we provide to our clients. And the strong gross and net retention figures highlight the scalable growth potential of this business. Now I'm going to show you and talk to you about some of the solutions that allow us to deliver value at scale. Each of these subdivisions are comprised of highly complementary and differentiated solutions that, when we bring them together, strengthen the overall value proposition of the Financial Technology division. Our financial client management solution, Verafin, takes advantage of its AI capabilities and cloud deployment to detect emerging patterns in financial crime across its vast network of clients to continuously improve the product and enhance the customer experience. Our regulatory solutions play a critical role in protecting our customers' integrity and reputation. Nasdaq Surveillance is the standard for the asset classes that it serves. No other solution is as comprehensive or serves a diverse client base across exchanges, brokers and regulators. AxiomSL is the only true global and comprehensive reg reporting and compliance platform covering over 55 countries and 110 regulators. And our capital market solutions are deeply embedded into our client workflows and are the backbone for the capital market operations that they serve. Calypso is a true front-to-back trade management platform that's global and multi-asset class with particular strength in OTC products, and it can be deployed on a componentized and modular manner that allows it to attract a broader set of clients in its main competitors. And marketplace technology, well, it offers best-in-class solutions across the full trade life cycle. And you heard on our technology panel earlier, the performance and the resiliency of these solutions are truly unrivaled, just as impressive are the institutions that make use of these world-class products. We bring to life what it means to be the trusted fabric through the global community of clients that we serve. Our 3,500 plus institutions we have the privilege of serving, we have over 95% of the globally systemic important banks, more than half of the world's largest exchanges. We're a leader in helping medium and small-sized banks across North America fight financial crime, and we have an impressive collection of 17 central banks and 18 government and regulatory agencies that we serve. And that's a real growth area for us. And we do all of that across 70 countries and 6 continents. And after analyzing the overlap between Nasdaq and AxiomSL and Calypso's client base, what we discovered is that a majority of Nasdaq's clients do not have an existing relationship with either Calypso or AxiomSL. And only about 1/4 of AxiomSL clients and Calypso clients have an existing relationship with Nasdaq. That presents us with a significant cross-sell opportunity that we're focused on unlocking. And we'll do so by deepening relationships across common customer personas, within and across the subdivisions. A great example of this is market tech and Calypso often talk to the same economic buyer when dealing with market operators, COO or Head of Markets. We'll also leverage Nasdaq's brand to elevate above individual customer personas when we believe a C-suite relationship can help unlock growth. And of course, we're going to capitalize on the complementary nature of the solutions, both capability-wise and geography. If I bring us back to that common customer persona example, market tech has a fantastic presence across Asia Pacific with market operators for exchange traded products. That gives us a great opportunity to introduce Calypso's OTC and collateral management products into those same economic buyers. You're going to hear a lot more about that in later presentations in terms of how we go about executing against that. So what I'd like to do is now turn to the powerful structural trends we're well-positioned to capitalize on. A few consistent themes emerged throughout the course of extensive client conversations, surveys we've conducted and a recent voice-of-customer tour with AxiomSL and Calypso clients. And they tie back to the megatrends that Adena mentioned. They really underpin, if you will, the megatrends that Adena spoke about, in particular, modernization and risk management. And so for our clients, it starts with streamlining and complying. And what that involves is better managing the explosion of regulatory costs and obligations while simultaneously complying with heightened liquidity and capital requirements. They're looking for solutions that help them reduce the burden of operationalizing new and evolving regulations while optimizing liquidity and capital. Our front-to-back trade management solutions allows them to streamline workflows. And our comprehensive regulatory and financial crime solutions allow them to comply with confidence. And they talked to us about simplifying and standardizing. And what this involves is better managing the increasing complexity of their businesses while breaking down the internal silos and introduce financial and operational risk. They're looking for partners that match their footprint across geography and capabilities, because that allows them to scale and grow cost effectively. And that plays right into our clients, given the reach and the depth of our platforms. And last, but not least, it's about modernizing and digitizing. We heard this over and over again, a real consistent theme. And this talks to the struggle that our clients have in keeping pace with forces of disruption, whether it be increased competitive pressure or advancements in technology. They talk to us about needing partners that are technologically advanced and that have a deep understanding of their challenges and needs. Our expertise in workflow automation and the experience we have in adopting and integrating cloud and now AI into our products truly set us apart. Now these translate into a large and attractive market opportunity for us. As you can see here, each of our subdivisions serve massive TAMs. And these massive TAMs are growing because of the structural forces I just shared with you. And then these structural forces are combining with evolving client needs to act as a catalyst for those same clients to convert operational spend into technology spend. And that's why the SAM is growing faster than the TAM. And that presents a unique and attractive opportunity for us. Because, not only will we grow by displacing competitors, but we'll grow through the conversion of in-house to vended solutions, which are typically Excel spreadsheet, legacy technology based. And we have the platforms to capitalize on this outsourcing trend. And then when you layer in our relatively low penetration of the SAM across the broad and comprehensive client base that we have, well, then we have an exciting land-and-expand opportunity that's a capitally efficient and profitable way to grow the business. AxiomSL, Calypso and Verafin have all had great success in implementing the strategy. But just as exciting as what this growing market means for our cross-sell opportunity, there are a confluence of macro drivers that have strengthened our conviction in the $100 million-plus target we're providing today. And those confluence of drivers you see on the left-hand side, I talked about them but it's worth repeating, we are leaning into the growing available market. These powerful secular trends are growing the demand for the solutions we provide. And there's a growing desire to partner with trusted brands. In many of the client conversations I had, this became really apparent to me. Clients would often phrase it as a question around cybersecurity, information security and our mature posture is a real differentiator. And then, of course, the enablers or the actions we will take to successfully execute against this opportunity set, whether it's aligning incentives and goals to power that cross-sell, harmonizing the tools and processes and institutionalize client listening and really power that go-to-market engine and really deepen client relationships or take advantage of the client data management initiative that's enterprise-wide, that will unlock additional cross-sell opportunities longer term. And it is early days, but we've launched 3 cross-sell campaigns to date and you'll hear more about that later. But what they're focused on is introducing AxiomSL and Calypso into the Nasdaq client base. And the One Nasdaq panel will cover that. Speaking of One Nasdaq, key to our long-term success is establishing an operating model with enterprise-wide functions across the division including sales, client success and technology, because that will facilitate cross-selling, drive deeper alignment throughout the entire division and help us cross-pollinate best practices. And as important as having the right operating model is our unrivaled and deep industry expertise. When we talk to clients, they want to partner with firms and brands that they trust, given how highly regulated they are, and in many cases, systemically important. Key to establishing that trust and differentiating ourselves is our deep expertise across market structure, regulation and a full trade life cycle. And that's both on a local and global basis. This is another one that stood out to me during customer conversations where they shared with me, during my voice-of-customer tour, how our subject matter expertise is as valuable as the leading products that we offer. And we're unique, as a technology provider, and you heard this earlier, because we're a highly regulated institution ourselves that consumes many of the solutions we offer our clients. That's instant credibility for us. And so ultimately, what One Nasdaq means to us, it's about establishing the culture and the mindset that's going to fuel our future success. Now I'd like to turn to 3 areas of continued investments that we're excited about. Underpinning these investments is our commitment to modernizing data management as that's foundational to unlocking our full potential of cloud and AI ambitions. On cloud, we're integrating AxiomSL and Calypso's operational and technical teams into the Nasdaq global operating model. That's going to take advantage of scale and more importantly, the operational excellence that our teams have. That's going to increase the quality of service and accelerate the adoption of their cloud solutions. On AI, we have, both in the product and on the business initiatives, on the go. I'll just highlight just a few for you. We have a GenAI-enabled copilot for Verafin and Surveillance that's designed to truncate analyst investigations. We do so by summarizing and contextualizing the extensive amount of information an analyst needs to gather once a system alert is generated that they would otherwise need to manually gather. During the surveillance proof of concept, what we noted is we took down investigation times from 6 hours to 4 hours, 33% reduction, really powerful. And that allows our customers to scale their surveillance operations and allows the analyst to focus on higher-value activities. Like I said, really powerful and it's only the start. And then with respect to -- on the business, we have a number of POCs or proof of concepts, that we're running with technology. Brendan mentioned a few of those, so I won't go into detail other than to say that the focus on modernizing code and expanding our automated testing capabilities. And we're focused on accelerating the modernization of our products. We're streamlining market technologies, product portfolio by having teams focus on accelerating the adoption of our next-generation trade and post trade solutions, which will improve margins. And we're making targeted investments in AxiomSL and Calypso that we identified and accounted for at the time of the transaction that are meant to capitalize on the growing demand for real-time analytics and improve the user experience. And that's going to help us win more new logos. And Verafin is investing in its fraud capabilities in real-time payments to take advantage of the growth in instant payments across the globe. Brendan will talk about that exciting opportunity for us. So with all the ways that we can catalyze growth and differentiate ourselves, we're establishing a sustainable and winning formula for this new technology division. And that's because whether we're powering an exchange's critical market infrastructure or ensuring regulators can uphold the integrity of the largest and most important markets of the world or helping global banks comply with ever-changing regulations or, more broadly, helping banks fight financial crime or even providing the critical tools to central banks so that they can better manage liquidity and capital across the financial system with a trusted partner that solves their most pressing operational challenges. And we do with leading and differentiated solutions that are complementary and comprehensive. And we do it for a global client base. And we know what it means to service and support mission-critical applications given who we are. And our clients truly appreciate our deep expertise. And as a result, I'm really confident about the midterm growth outlook you see behind you of 10% to 14%. And as we execute on our synergies and our cross-sell efforts, we will drive that towards the higher end. And so with that, I'm going to -- we're going to see a short video and then welcome subdivision leaders to talk more about the products. Thank you. [Presentation]

Hi, everyone. Can you hear me okay? Last minute panic about the microphone. I'm Brendan Brothers, and I head up the Financial Crime Management Technology Group. And the first time I saw that video, I was super pumped about our relationship with Citibank. They are going to be a strong partner for us as we think about trying to solve these really important problems around financial crime. I want to talk today and give you a sense about that problem that we see. When we think about our vision of protecting all the world's financial interactions, the problem of financial crime is large. It's a $3 trillion problem. We put out a paper at the end of last year that talks about this. And specifically around the challenges that Citibank identified in that video, $500 billion in loss from a fraud perspective when we think about people falling victims to scams. These are huge, huge important problems that we try very hard to solve every day. And those are the kinds of problems that motivate our team as we continue to look at these challenges. We have a comprehensive solution to the problem of financial crime. We look across both the money laundering and the fraud landscape, and we have components within our application, which try to help identify different kinds of fraud, whether it's wire fraud, as we highlighted within the video, ACH fraud, check fraud, real-time payments fraud. When we think about money laundering and the illicit flow of funds that go through the financial institution, being able to stop those kinds of transactions, allow financial institutions to investigate, report those to their regulators and their financial intelligence units. In our SMB space, so in our smaller financial institutions, those clients will generally buy the entire platform, and they will use Verafin start to finish. As you heard within the video as we move into the enterprise space, this platform can be modular as well. And it helps us with our land-and-expand in terms of our movement into these Tier 1 and Tier 2 financial institutions, which we'll talk about in just a second. A couple of times today, we also talked about the data that our platform sits on top of. And that's been a truly differentiator for us, particularly as we've had these conversations with the Tier 1 financial institutions. Being able to use our platform to give them visibility into activity that they do not see within their own financial institutions, being able to see that risk, it's a very, very important component of our value proposition as we continue to move up market. We've had a strong financial profile over the past 3 years as we've been part of Nasdaq, showing 23% CAGR here on this slide. And our revenue is nearly all recurring. Financial institutions subscribe to our application and they stay with us. We've got very strong retention across the entire business. And I want to talk about the 2 components of our offering -- of our market, I should say. First, we'll talk about the small and the medium financial institutions, and then we'll talk about the enterprise clients. The small and medium institutions is the bedrock of our business. We've heard this number earlier today, 25 financial institutions that use Verafin today. Last year, a strong growth year for us as we added 230 clients into this segment. And this, for us, is an area where we continue to see expansion in our client base. It's going to continue to be a strong growth area for us as we continue to move forward. But it's also an area that we're continuing to grow, because as I mentioned, these clients, once we sign them up, they're customers for life. And as we continue to add value into the platform, we continue to be able to get access to a greater share of wallet in these financial institutions. So through continuously adding components, new modules, we're continuing to drive up prices on renewal and continue to create that flywheel of growth within this segment. We also see this as a strong area for us to be able to add new capabilities into the application when we think about some of these kinds of areas like real-time payments, for example. These can be new growth opportunities as we think about adding new modules into the application and actually selling those back into that existing client base. This is a very efficient area for us as well as we think about an engine that we've built within the business from a sales, marketing, customer success perspective. It's a strong flywheel within our business, and that drives 112% renewal here. These customers, as I said, when they sign up, they sign up for life. We've also had very strong performance in the Tier 1 and Tier 2 space. 18 months or so, I was asked, when will we sign our first Tier 1 financial institution. And I said in 2023, last year, we signed 3 Tier 1s and we signed 4 Tier 2s. So we've broken into this market, and We're really, really proud about that. In fact, as we think about this idea of landing in these financial institutions with our fraud capabilities, for example, one of these Tier 2 institutions has actually gone ahead and expanded their relationship and brought a second component of Verafin on board already. So we see this as a very powerful growth engine within the business, driven, as a starting point, on the fraud side of the house, but certainly not limited to that. We've been able to execute proof of concepts with institutions like Citibank, for example, where we can show them tangible results in terms of increasing the amount of fraud that we're helping them catch, but also allowing them to be more efficient, reducing the number of alerts that they actually have to look at in order to actually catch that fraud. And by being able to show both of those to financial institutions, it creates a really, really compelling case, a really, really compelling return on investment case during that proof of concept, which simplifies our sales process in there. As I mentioned, we're excited about the land-and-expand opportunity that we have here. Starting with payments fraud. As we heard in that video, when we think about business e-mail compromise and the kinds of scams that our clients' customers are seeing every day and then being able to expand that out into other areas of the application as well. And that movement from proof of concept into signed clients and production customers is really powerful because, not only can we show value during that proof-of-concept phase, we can also show value once those customers go into production. This is an example from one of those Tier 2 clients. We executed a successful proof of concept with them, show them the value that we could bring in terms of fraud detection, show them the reduction in alerts that we could give them. And in the very first week that this Tier 2 financial institution was in production, we caught all their fraud, $8 million in that first week that they could not catch in their legacy system. So it shows for us the power of this data set that we've built the application on. This unique capability that we have to be able to show them risk, not only within their own financial institution, but thinking about where their payments are coming from and going to and being able to reduce the risk of those as well. We've heard already about AI and how we're strong believers in the use of advanced technology to try and solve these problems. In that financial crime report that I talked about earlier, one of the stats that I had on the slide was 70% of financial institutions are looking at AI to become more efficient and more effective as they think about their anti-financial crime programs in their financial institutions. One of the areas where we're leaning in on that is obviously within the generative AI space. When a user gets an alert in Verafin, all of our algorithmic AI has brought it to that point in time, right? So we've generated the alert and we've used amazing technology to be able to get to that alert. But then we want to think about how we can make that user actually much more effective getting to an answer. Is this actually fraud, is this money laundering, is this something that I actually need to report to my financial intelligence unit. And in combination with all the tools that we've built over the years, whether it's visual storytelling components where we have geographic map showing transactions and where they've occurred, balanced history charts where we're able to see a customer's balance over time, adding in elements of generative AI, which can help the investigator go out and do open source research, bringing information about counterparties that their customer is transacting with, bringing negative news, bringing all of these kinds of things that a user would typically have to go out and do manually, automating that process and combining that with the tools that we have in the application, we have seen, on our customers, a 90% reduction in investigation time compared to the first-generation systems that they're typically coming to us from. Just to put that in context, we've seen users that told us of 2-hour average investigation times that have been shrunk to 10 minutes in Verafin. And these financial institutions have thousands of alerts every month that they need to look at. So it's a strong and compelling case for automation and efficiency when we think about the anti-money laundering side of the house. And for us, when we think about how we're going to try and solve this financial client problem, it actually allows us to work with our customers to focus on the actual harder problems that we have over here on the right-hand side. Things like terrorist financing, drug trafficking, human trafficking, advanced types of fraud that we're seeing. We're continuing to innovate and continuing to drive our investment in algorithmic AI to be able to help our customers solve these very, very hard problems. And again, uniquely sitting on top of that consortium data that we have, $8 trillion in collective assets, visibility across thousands of financial institutions, which allow us to uniquely think about how to try and solve these problems differently than any other player out there in the market today. So I want to wrap up and talk about the ways that we're excited about growth for the future. Our SMB space, we've talked about. There's tremendous opportunity still remaining within the U.S. small and medium segment. And there's tremendous opportunity for us to continue to think about expanding that share of wallet into those small financial institutions. Our upmarket expansion, we're just getting started. We've just seen kind of the fruits of our labor over the past years with that growth that we saw in 2023, and we're excited to see that continue, both in adding new logos in that Tier 1, Tier 2 segment, but also expanding our relationship with the financial situations that are there. The problem with payments fraud, the problem of money laundering, these are not unique to the United States. These are global problems. And we're already in conversation with financial institutions from a global perspective. Canada, which is a bit funny because we're Canadian, but we treat that as an international market. The U.K., other jurisdictions around the world where they have these same kinds of problems and we see the same kind of value that we can bring to these financial institutions. And then last, but certainly not least, the exciting partnership now that we have with our new friends within Calypso and AxiomSL. And the opportunity, not only to help introduce those products into our customer base in North America, but also for us to be able to work and think about how do we continue to bring our products internationally as well. It's an exciting time within the financial crime management division. We think we've got great growth ahead of us, and we're very excited to share more with you on that today. So with that, I'm going to hand it over to my colleague, Ed, and we're going to learn a little bit more about regulatory technology. Thank you.

Hi. Good morning, everyone. So my name is Ed Probst, and I look after regulatory technology here at Nasdaq. No coincidence, I joined Nasdaq on November 1, 2023, the same day that Nasdaq completed the acquisition of Adenza. So I'm going to take you the 2 businesses that comprise our regulatory technology or Reg Tech, for short, division. Firstly, AxiomSL. AxiomSL is a global leader in risk and regulatory reporting. One technology stack, which is we call One Product, 6 solutions, servicing the needs of risk, finance, treasury, compliance, operations across 55 countries with over -- which creates a portfolio of over 5,000 regulatory reports, giving us ample opportunities to land and expand with our customers. And secondly, we have Nasdaq Surveillance who is the market leader, servicing both trade surveillance and market surveillance, which creates a tremendous network effect of working with both regulators and market participants. And we do this across over 200 markets and data feeds and over 300 industry standardized alerts. Now the common denominator of both of these platforms is both of them have grown organically with our customers' needs. They are both mission critical to our customers' workflows. And they're both promoting that same trend, which Adena had mentioned earlier, of promoting safe, fair and transparent markets. Now a little bit about the numbers. Let me walk over to this side. So $389 million in revenue in 2023. Within that, we experienced 11% growth of our ARR, which means we're walking into 2024 with $325 million in annual recurring revenues. Now the distribution is really important. Regulation is very local. There are global themes, which, of course, are common around the world, but regulators around the world take that and adapt it into their markets. So being present, having scale, having that knowledge of local markets is super critical. Now we have that scale today. And together, being part of Nasdaq, we have a global footprint, which is only going to accelerate that growth. Whether it's expanding into Europe or Asia, leveraging the expertise and the experience of Calypso or market tech or as Brenda mentioned, helping to push down market with the expertise and experience of Verafin, we have a great opportunity to take the products we already have and to deploy them further across the world. So I'd like to set the stage a little bit with a couple of key achievements in 2023, which I think tell the story, not only about what we've been doing, but how our customers are viewing us. Firstly and most importantly, we deployed thousands of regulatory updates around the world in 2023 to our customers. It was a tumultuous year in regulation. And this is both for new regulations, which are up and coming or updates to existing regulations that our customers have and are constantly changing. Now this creates a credibility factor, which is super important. These brands, AxiomSL and Nasdaq Surveillance are rock solid. Our customers trust us to be able to enable them to grow their businesses safely. We are a critical partner. And a proof point to that is our customers are serious about our cloud as well. 97% of customers joining us in 2023 joined on our cloud. So they're not only relying on us for that software and for the capabilities, but they entrust us to operate these systems as well. So as mentioned, we're growing our footprint within this space. And we're also growing with our new customers on the cloud. We've seen our customers who began with us as an on-premise relationship shift to our cloud as well. One example of that is ABN AMRO is one of the oldest AxiomSL customers with a significant on-premise deployment shifted to our cloud in 2023. So we're, not only growing with our customers. We're also growing with new customers. We expanded 30 new -- 30 new logos in 2023, and we cross-sell and upsell 126 new extensions of this product family as well as customers are continuing to gain value from what we can deliver. And as we've experienced over the years, the best and most predictable way to grow the business as well as the most capital efficient way to grow the business is to extend the offerings within our existing base to offer value and help our customers do more with us. They have a tremendous wealth of information that is sitting in our platforms. They've built operating models that are wired to how we operate. And we delivered, in 2023, more than 10 significant product extensions which are helping them do just that. I think Nelson had hinted earlier the fact that AxiomSL now has an ESG regulatory reporting offering. And I'm proud to tell you that in Q1 of 2024 alone, 3 global systemically important banks in Europe have adopted our ESG regulatory reporting solution. So we sit in the middle of -- how do I get out of the way, okay. We sit in the middle of a $4 billion serviceable addressable market with 2 market-leading platforms, and we're only 9% penetrated. So we're going to focus on a couple of key things to really grow this business. Firstly, we're going to do what we do best, which is we're going to tap into evolving market and regulatory trends. We have a rich product roadmap, which is going to help our customers' most critical and time-sensitive needs. Secondly, we're going to lean into technology and innovation, help our customers modernize, become more efficient, more agile and streamlined and in doing so, we're going to convert their operational spend into technology spend. And thirdly, we're going to further accelerate that cross-sell within creating that One Nasdaq, which we're going to hear about later today. Now a little bit about our rich product roadmaps. Firstly, on the AxiomSL side, we are in the early innings of a global regulatory reporting modernization wave. Regulators around the world are trying to get more frequent and granular information, and they're evolving their regulatory framework to do that. That's requiring significant investment in the industry. One great example of that is in the EU. There's a program which has been launched called the integrated reporting framework, where between 2024 and 2027, there's a complete holistic rework of regulatory reporting. And we're in the forefront of working with our customers and regulators in that initiative. Capital and liquidity was touched on a few times today. I think folks are familiar with Basel Endgame, Basel IV. In 2023, we went live with Basel IV in Canada and Australia. One of the only vendors in the world, perhaps the only vendor in the world to take a global systemically important bank live through production successfully with Basel IV. In 2024, we're going to be going live in Singapore, Hong Kong and Japan with our customers. In 2025, we're going to be going live in the EU, Switzerland and the U.K. and the United States. So there's a significant amount of in the coming years in that realm. As mentioned, we're going to be going down market, leveraging our cloud. And it's good to note that we learned a lot about how to operate a cloud from our partners in surveillance who build a true SaaS business across all their customers. We've accelerated our journey to helping our customers get on to our cloud through that experience. And we're also selectively going into new markets. As mentioned, we are in 55 countries, 110 regulators, and that didn't happen overnight. That happened through a thoughtful, methodical acceleration of product where it makes sense. And we have a couple of really good markets where we feel the markets are modernizing. The regulators there are looking to bring industrial enterprise strength capabilities to their markets. One great example of that is the modernization happening in India. Now from a surveillance perspective, you have to think about what the surveillance product does. We're deployed in over 200 markets, and we are analyzing in the milli or nanoseconds, what's happening in these markets exchanges for both regulators and for market participants. And as we do a better job of rooting out market manipulators, market abuse, the manipulators themselves become more sophisticated, very similar to what Citibank mentioned on their video. And in response to that, they are trading in more complex trading modalities across multiple instruments to achieve their results. And we are at the forefront of helping our customers combat that. So we're releasing new capabilities for our customers. They can detect fraud across related instruments to help their surveillance programs. We're expanding our coverage into over-the-counter derivatives, learning from our experience at Calypso, which is going to again increase our upsell and broaden the capabilities and the value we can offer our customers as well as expanding into fixed income. We've optimized our alert calibration engine and introduced AI into the product, as Tal mentioned, to help that momentous problem of surveillance compliance. Our customers can typically have tens of thousands of surveillance alerts that they have to investigate on a regular basis. So reducing the time for them to go through that is hugely critical for them. And we touched upon the technology and innovation work that we're doing. I'll just add one additional point there, which is that we're working across the FinTech division to find our opportunities to gel the products where it makes sense. One example of that is we built an adapter, which takes the market risk analytics from Calypso and brings them into the regulatory reporting framework for AxiomSL, which is hugely beneficial, especially when we think about Basel IV. So we have a great market, market-leading products. What are we doing to accelerate the growth? Well, firstly, we're laser-focused on our operating model, which is really all about integrate, innovate and accelerate, as mentioned a few times today. We're creating a cohesive team across product and sales. We're making sure that we're listening to our customers. So our customers are super engaged. Super engaged customers are going to be the ones that flourish and help us grow, which is going to be a critical part of our go-to-market. We have an institutionalized and industrialized sales team, which is being educated across products. We're bringing together the best of our capabilities across what we learned from AxiomSL and Calypso as well as Nasdaq across digital marketing, thought leadership to create cohesive campaigns, super smart product investments and elevating our win rate. And lastly, we're very excited about the cross-sell, as you heard today. We have 3 cross-sell initiatives already underway, as Tal mentioned, which are helping bring AxiomSL products into the Nasdaq family of customers as well as Calypso's. And we're working on cross training all of our salespeople, making sure they have the full understanding of the full client relationships so they can further that journey and help us achieve that $100 million plus number. I'm super excited about the opportunities ahead. And I look forward to providing more information in the years to come. On that note, I will turn over to my colleague, Gil Guillaumey, who's going to walk us through -- tech technology.

Thanks a lot, Ed, and good morning, everyone. My name is Gil Guillaumey, and I have the pleasure to walk you through our capital markets technology solutions today. Our mission is very simple: We want to help all financial institutions navigate and actually take advantage from the market conditions and regulatory complexities of today. So let's see how we achieved that. First, we combined 2 leading solutions. And as Adena and Tal mentioned, we provide -- we are industry-leading providers of mission-critical solutions to the financial industry. So our 2 main solution lines, marketplace technology that also includes trade management services, as well as Calypso that came through the acquisition of Adenza, combined together, a unique functional, technical and operational expertise. Together, our solutions can cover the entire trading life cycle across asset classes. And I want to take a minute to really walk you through what it means. It means that we can power market operators with solutions that are at the very heart of their activity, such as the matching engines for exchanges, the clearing and margining solutions for CCPs and their members, the settlement and custody activities that are core to the CSD mission as well as low latency connectivity to banks and brokers. But it also means we can service banks of all sizes as well as buy sides, central banks and even large corporates to price and book transactions, whether they are exchange traded or OTC; manage the corresponding risk; and process does trades down to settlement, accounting and regulatory reporting. So when you look at that, we can literally service any financial institution in any geography for the bulk of their trading life cycle. So let's see what it means in terms of numbers. In 2023, we delivered $921 million revenues. And as you can see, we have a sizable footprint in all regions with a relatively higher weight in Americas due to our fantastic connectivity business. If you look at the right of this slide, we walk into 2024 with $799 million of recurring revenue. This number, growing at 8% year-on-year. And we are extremely confident we will continue to grow all those numbers for mainly 3 reasons. Reason number one, upselling. On a given year, we deliver 75% of our growth with existing clients in the fintech division. And that ratio has been extremely stable over time. Reason number two, we face a very large greenfield market of new clients, and I will elaborate further on that in a minute. Reason number three, we've mentioned that already, there's a huge opportunity to cross-sell, because as you could understand from the previous slide, we service the entire trading life cycle. We service the same client segments and still, we have very little client overlap, so there's a fantastic opportunity to cross-sell. And I want to elaborate on some of the first initiatives we've taken within the subdivision, for instance, 2 weeks ago, we were gathering our extended CCP client community and promoting our Calypso collateral management solution to them. But we also do that across subdivisions. For instance, we started promoting our Calypso treasury solution into the Verafin client base or promoting our broker risk solution coming from marketplace technology into the surveillance client base that Ed was presenting a second ago. So beyond the numbers we achieved in 2023, just like Ed did a minute ago, I want to walk you through some of the key accomplishments we've delivered with clients in 2023. Starting with market technology. We secured 7 new clients for market technology, which means that 7 market operators trusted our technology for their mission-critical activities, and that's a big number. We also deepened our presence in APAC and Latin America, expanding with existing clients who were already, for instance, using our exchange technology, who are now using our clearing technology. On the Calypso front, 2023 was also a fantastic year, actually the second best year ever in the history of Calypso. We secured 15 new clients in all geographies and we sold 126 new modules to existing clients. And this is the direct result of our release management model that enables all clients to be on recent version of the solution. So of course, we can provide them with our latest functionalities. 2023 was also a pivotal year for cloud as many clients move beyond consideration into action. So we've secured a total of 13 new clients directly tapping our solutions in the cloud, and this happened in every single geography. The reason I want to mention this momentum that we've reached in 2023 is because our 2024 pipeline is full of similar opportunities. So the reasons why we won last year was every -- very confident about why we will win in 2024. But that's not enough. We want to accelerate, as Adena mentioned. And so I want to walk you through now some of the market dynamics we see and how our product roadmap actually services that market dynamic. And before getting into the details, I want to double-click on one number you've seen before. As you can see with the breadth and depth of capabilities that we can provide, we estimate that we can service about 2,200-plus new clients. And this is what actually makes the bulk of the $11 billion serviceable addressable market. And as you can see, we have 8% penetration rate in that serviceable addressable market, which tells us about the potential to expand. So how we are going to expand. First, in trade management services, 2024 is a very important year as we're going live with the physical extension of our Carteret data center. And this is an initiative we took last year to answer client demand for more space and power in connectivity services. Coupled with that physical extension, we are also extending the breadth of solutions that can be directly deployed in the colocated environment with partnerships. And last, but not least, in trade management services, we are excited because we are rolling out, this year, a solution for data access analytics that will change the way clients and market dynamics are understood by the exchange. And this is a solution we've rolled out with our own exchanges a couple of years ago, and I'm very excited to see that we are now making that available to our technology clients. On market technology, the market dynamic is extremely simple. Clients are coming for modernization. They need to modernize because they face increased volatility, they face higher volumes, they need to roll out new instruments and they need to digitize the overall experience and their overall infrastructure. This is exactly what our roadmap brings to them. We bring to them new asset classes such as digital assets or carbon assets. We enable them to tap our next-gen technological architecture, including cloud-native capabilities. So they literally transform the way they operate their markets and service their clients. On the Calypso front, our roadmap really services new needs around inflation and high interest rates and volatile interest rates environment as well as enabling clients to roll out ESG instruments, such as carbon emission trading or sustainability-linked bonds and derivatives. The Calypso roadmap also brings AI-powered capabilities to accelerate risk analytics or make the post-trade operation teams more efficient. Last, but not least, the Calypso roadmap will bring digital portals. So our clients can actually digitize their own client interactions. And this is, of course, in addition to our flagship treasury and balance sheet management segments as well as a very high demand for regulatory and marketplace transformation changes. I'm going to mention a few of them. I'm sure they will resonate. This year, we're going to move to T+1 settlement and there are implications on the client platforms. Clients also need to tap Basel III, Basel IV. They need to cope with the transformation due to the LIBOR transition. They need to adopt new SWIFT methodologies. And so SWIFT is, for instance, a very active transformation agent at the moment. For that, they will need deliveries from our roadmap, okay? So what I want you to take away from this slide is that we face a very large market, and there are strong forces that are pushing clients to adopt our solutions, so it's very exciting. I'm going to finish this presentation with the last slide, wrapping up our strategy. So it's very simple, take away number one, leadership. We are the partner of choice for trading and post-trade consolidation across asset classes. And as a leader, we fuel our roadmap with functional and technical innovation, so our clients can really transform the way they operate their solutions. In addition to that, we want to drive client transformation. And it's no surprise, clients are at the center of this slide because they are at the center of our strategy. As Adena was mentioning, we want to solve our clients' biggest challenges, be it to adopt a new technological paradigm, to adapt to market transformation, to tap a new regulation, to offer new services. This is exactly what we provide to them today and that we will keep providing, because there will be new challenges hitting the agenda. In trading, for instance, with the rise of retail investors or the creation of AI orders; in risk, Basel III and Basel IV will transform the market; or in post-trade and clearing, we see already a lot of conversations around the potential mandatory clearing of U.S. treasuries. You have to understand also that SaaS is central to our client transformation strategy. We've been operating our client platforms on their behalf for more than 15 years. So they can release their energy and put their energy on growing their own business while we take care of their platforms. And of course, mechanically, this deepened our relationship and increased the stickiness of our solution. Last item and let take away for today, you've heard that already a number of times, but we've created a single team, a single sales team to accelerate on the cross-selling opportunity. And so we've trained ourselves so they can promote the extended range of solutions in every single client conversation they have. And beyond the sales team, we also integrated our strategy and marketing and communication teams, taking the best of Nasdaq and Adenza practices, so this organization is actually much more than the sum of its initial parts. So with that, I want to thank you for your attention, and I'm going to hand over back to Tal Cohen for Market Services division. Thank you.

All right. Hello, again. For our Market Services presentation, I'm going to be joined by Roland Chai, EVP of European Market Services; and Kevin Kennedy, EVP of North American Market Services. Market Services encompasses our foundational transaction businesses that are central to our liquidity pillar that you heard about. So what we're going to talk about today is how the 2 subdivisions, European market services and North American markets, are leading and differentiated businesses, how we're focused on client-driven innovation to catalyze incremental growth and how we're allocating capital in a disciplined manner against exciting initiatives where we have a strong right to win. I'm going to get us started. Our impressive operating margins underscore the high-quality transaction revenues that we generate. And by running these businesses the right way, we've capitalized on our scale, and we deliver strong and consistent growth. And we love these businesses. All of us, everybody who runs it, everybody in Nasdaq, we absolutely love these businesses. And we have the privilege of running the best markets in the world, and that's translated into sustained leadership for us. And as you can see across all of our key markets, we hold leadership positions. In part because of our continued investment in technology and innovation, our commitment to driving market modernization and the deep market and industry expertise we bring to our clients. In fact, Market services benefits from empowers a flywheel with other leading Nasdaq businesses. Our markets provide the blueprint for many of the innovations we commercialize, package and offer our financial technology clients. And so to talk a little bit more about our flywheel, I'm going to invite Roland Chai up.

Thank you, Tal. I'm Roland Chai, I'm VP and Heads the European Market Services division. So as Tal mentioned, I'd like to talk to you a bit about the flywheel effect within Market Services and how we benefit from that. So you've heard about the instant credibility that we have owning and operating and running 25 of the world's leading markets in 10 countries. That enables, in my experience, running market technology, I've seen the power of that, being able to open doors because our customers around the world want to know how does Nasdaq operate, what do we do? And can they share and benefit from that platform and that technology? That's extremely powerful. At the same time, working with 130 of world's most critical infrastructures allows ideation and innovation of ideas, and it gives us an incredible source of knowledge where we can also take some of those products and services that happen around the world and be able to bring those to our market -- our own domestic markets. At the same time, with the product engineering capabilities and the technology capabilities that Brenda and Brad outlines, we build our own tech. We're able to quickly absorb and generate those products and deliver those to our liquidity venues, which also increases the amount of spend that our clients spend on those liquidity venues. Equally, as Nelson talked about from capital access platforms, primary liquidity is extremely important in driving secondary trading. The incredible growth in IPOs, whether it's in America or Northern Europe is extremely powerful in generating more secondary trading. Not least, the data, the ability to have proprietary data products and the analytics that is in the capital markets platform also allows us to create more data products and also proprietary index products, and Kevin will talk a bit about that in a second. So if we move on, I'd like to talk about what makes European markets unique. European markets in Europe, we operate in the Nordics in an exceptional ecosystem. Retail household investment in public markets is exceptional. It is more than twice the average of other EU markets. That creates a very deep liquidity and sticky liquidity pool and one of the strongest small and medium enterprise financing markets in Europe. What that does is creates an extremely high market share, 71% market share, which significantly outperforms other EU exchanges. At the same time, we have a diversified revenue base in our European markets. We derive revenue from both equities, fixed income, OTC and also on led exchanges. But as well, we're able to generate revenue in times of rising interest rates from our fixed income derivatives. And now I'll hand over to Kevin to talk about North American markets.

Thank you, Roland. And by process of elimination, I am Kevin. So as Tal introduced to you. Our long-standing and foundational asset class is U.S. Equities. And what we are seeing is continued growth, you can see that there's a 13% compounded growth rate since 2017. What we're also continuing to see is a fundamental shift in the way trading is being conducted. We are now seeing 46% of all trading being driven by Nasdaq listed companies. 46%. So where does that fit in? Well, 2017, '18, '19 and '20, that number was 31%. So what's driving this? What's driving this is investors are attracted to those innovative Nasdaq listed companies. But combine that with the great work of our top team and our listings on our high win rate, and it's a perfect cocktail, perfect example of how the Nasdaq flywheel works. We are leaning into that. We benefit from that in various places. Our opening cross, our closing cross and our innovative price discovery functionality, Brenda mentioned it earlier, but midpoint extended life order is one example. So we're able to realize the value of those assets we've invested in the resiliency of them, and then we tie it all together. And what happens is you're left with the leading pool of liquidity in the U.S. stock market of 15% on our NASDAQ Classic Market. Options. When it comes to options, we see an incredibly dynamic and complementary asset class to U.S. equities. What we're focused on here is leadership. We've led for many years during this exceptional period of growth. We've led in market share. We've led in capture, and we actually take a very strong leadership position partnering with a very trusted position with our regulator, the SEC, industry advisory groups, we maintain that position because that leadership position is really important to us as it's growing the TAM. We do operate 6 markets, and that puts us in a very unique good position to cater to all various investors and clients. From institutional, to retail to those professionals that seek liquidity on days like today when there's high volatility and days when there's low volatility through auctions. But we're there. We serve them, and we use tailored allocation models. We use bespoke pricing models to meet all of their needs, and we are uniquely positioned really, really well positioned to continue to lead this industry in the years ahead. Disrupt, lead, innovate. We've been doing this since 1971. We've demonstrated this, and that journey continues. From our investments in cloud to our continued investments in new asset classes, Roland will talk about the Carbon Asset Class in a minute, and we have innovations in AI that we're focused on, as you heard a bit about today. This is aligned with our heritage, and it really is important to us, and we will continue that journey and allow us to continue to outperform and grow the total addressable market, which is very important to us in market services. So let me touch on just a few things early in the cloud journey, how that benefits us and help benefits the market and our shareholders. We have seen, in this time of ballooning message traffic at Nasdaq alone in the last 5 years, we are processing 4x the message traffic than we used to. Again, 5 years, 4x the message traffic. And we are uniquely positioned because of our cloud infrastructure. We have reduced our cost per message by 80%, 80%. So that is an incredible asset to have for someone that's running market services and for our shareholders. Another factor that's benefited us in the cloud journey as competitive advantages as we're in the cloud infrastructure, we're able to adopt and adapt to emerging technologies like AI. Really important to us is to maintain a high level of credibility with our clients during this journey. We are extremely disciplined. We meet deadlines. We meet a high standard of quality assurance. And because of that, we've been able to modernize 4 markets on Fusion, our next-gen derivatives platform, two of which are already in cloud infrastructure. Lastly, let me just share some, lastly for me, not Roland, let me share some early returns on innovation and show that like in growth in index options, we are seeing tremendous growth great opportunity, and we're seeing growth in trading contracts and revenue generated. AI has played a small part because we have something called a Strike Optimization Program where we select short-term series, short-term think weekly is 2 to 3 weeks out, maybe a month out, but especially in the Nasdaq product, we're able to tailor those strikes to meet client demand where we think it's going to be needed, whether the market is going to be down or up or where there's actually interest and create the optimal supply to meet that demand. Lastly, we are extremely encouraged after a long period of time working closely with our regulator that we're going to roll out a dynamic artificial intelligence order type, the first one approved in the U.S. by the SEC, and it's a spin-off of what we have as the midpoint extended life order. This is much more dynamic on holding periods. It's called Dynamic MELO, but it's Dynamic, Midpoint Extended Life Order and it will roll out in the first half of this year, we are tremendously excited. With that, I will hand it back to my colleague.

Thanks, Kevin. So Carbon Market is a great example of how we're using our expertise as a market operator and our technology capabilities to really accelerate market maturity for an asset class of the future. We do this in 3 ways. One is we have Puro.earth, which is firmly at the heart of setting engineered carbon removal standards to build trust for the trading of carbon products. Secondly, we are leveraging our capital markets platform technology and our mission-critical infrastructure to produce trading and registry platforms that we're selling to our financial technology clients. And thirdly, we're leveraging our data capabilities in our capital access market platform to pioneer data services and products that are essential for a carbon market to grow both transparency and liquidity. So in summary, you've heard Tal, Kevin and myself talk about the Market Services division and what sets it apart. So there are three things that are at the core of it. One is we operate and we continue to scale a very robust franchise in equities and derivatives. Secondly, we use our capabilities and product engineering capabilities to rapidly bring to market products to grow revenue potential through indexed derivative products as well as asset classes such as carbon markets. And thirdly, and not leastly, we're true to our core DNA as innovators because we're using our technological expertise to harness cloud and AI to generate operating leverage in the business. So when you look at all of those together, I think it's completely unique in Nasdaq Market Services to be able to not only own and operate some of the world's leading markets but be able to transform and reinvent those markets, and have the capability and the ambition to do so. Thank you very much.

Thank you. And we're going to take a short 10-minute break. And after which, we will come back and resume our program. Thank you. [Break]

Excellent. So welcome back. I hope you had a refreshing break and you have enjoyed what you have learned from the Nasdaq leaders so far. My name is Valerie Bannert-Thurner, and I'm the Chief Revenue Officer of our newly founded Fintech business. So as you have heard both from Tal and Nelson before, we are hugely excited about the growth opportunities within each of our divisions. But in this panel now, we're going to talk about something that Adena mentioned very much in the beginning of our presentation. We're going to talk about the One Nasdaq approach. So we're going to focus on and how we can accelerate growth for Nasdaq, specifically through cross-selling. With me here today are Stephanie Champion from the Verafin Sales Team, Don Marigliano from our Markets Team, we have Ben Fisbein from the Fintech Sales Team in America and Jeff Thomas, EVP from our Capital Access platforms. So as we build the Fintech business and as we integrate the Fintech business into the overall Nasdaq context, we're really building a technology and a services business of a whole new size and scale. Within the Fintech business, we have around 3,500 clients, as you have heard from Tal before, 650 of those are banks and brokers, 250 are asset managers, and we have 130 marketplaces that we service. Within the Market Access platform and division, we are servicing 625 clients. These are all members of our exchanges, both in North America as well as in Europe. And our Capital Access Platforms division has over 15,000 clients as you've heard from Nelson before, and 5,000 of those, again, are banks and brokers. They're part of the investment community, they are Fintechs and their asset managers. So when we step back and we looked at our entire client universe, and we looked at all the individual segments we service, but we also looked at the client personas that we work with. We looked at the people we have relationships with, the people we sell to. And we looked at our entire product portfolio that you've just heard about. We have identified a number of really exciting cross-sell opportunities that can drive growth for NASDAQ. We're going to focus initially on 3 areas. The first area is in the banking space. 280 banks in the U.S. are listed on Nasdaq. They all work with us so they can access capital. Through the Verafin platform, we also help them fight financial crime. And now news through the inclusion of the Calypso treasury platform, we can also help them with the funding and their investment decisions. The second area we're going to focus on is the broker-dealer community. Broker-dealers are members of our exchanges, so we know them very well. They consume our data. But over many years already and on a global basis, we have been servicing them with [indiscernible] solutions and risk management solutions. So we already have technology touch points with them. Now again, with the addition of the Calypso platform and AxiomSL platforms, we can also offer them regulatory reporting solutions and we can offer them ETD and OTC trading and collateral and derivative trading and post-trade solutions addressing more of their needs. And then thirdly, and Tal mentioned that before, we also service 130 market operators today, and we already have a quite wide and comprehensive suite of solutions today. But we were always missing OTC and Collateral Management Solutions to service them with. So now with the addition of the Calypso platform, we actually have a pretty much comprehensive suite to address all of their technology needs. So when we look at all of these opportunities together, we're excited about the growth we can deliver towards Nasdaq, and we are committing to delivering at least $100 million in revenue from cross-selling within fintech by end of 2027. Now we believe there is more opportunity to grow when we look at the entire Nasdaq franchise and how we can cross-sell between the different and across the different divisions, and we'll start to measure and track that over time. So the first thing we had to do was to make sure that we knew from our clients that they actually wanted to buy more solutions from us and that they wanted to interact with us in a new way, that they wanted to interact with us as One Nasdaq. So Tal and I just had the opportunity to visit our biggest and most strategic clients in Asia. Adena is regularly meeting with the senior executives of our client base, and we've also done a client survey. And this is what we have learned. First of all, our clients are very pleased with the formation of the fintech business and especially happy that the Mission-critical Solutions that we provide them with on a daily basis are now in the hands of strategic firm, a firm who is committed to the liquidity and the transparency and the integrity of the financial ecosystem in the long run. The second thing we learned from our clients was that they very much appreciate working with people they know, they like and especially that they trust. And they want to work with firms who know what it means to be a regulated entity. And thirdly, they actually wanted to build bigger and more strategic partnerships with us. And the reason they want to do that is so they can actually influence our product road maps. So if they can influence how we invest and how we innovate, that make sure that we can align what we do with their current needs and our future needs. So for us, that was a really good validation to understand that our clients want to do more with us, that our products are well aligned with our clients' needs today and in the future and that we can truly unlock that cross-sell potential. So my panelists and I are now going to talk about how we're going to go about that. And we're also going to talk to you about initial proof points and really good examples to show you how we can unlock that incremental value.

Ben, let's start with you. We are implementing a whole cross-sell framework. What does that mean for our clients? And especially how -- what are we doing in terms of organization, but also in terms of tooling.

So good morning, everyone. My name is Ben Fisbein, and I'm heading sales for the Americas within the Fintech division, focusing specifically on the regulatory and capital market solutions. So to answer your question, Val, cross-sell is really a core priority today. and achieve our goal unlocking this potential that we have. We are focusing on the sales organization and the tooling. On the sales organization front, we have established a centralized sales team, enterprise function to basically allow the organization to be more efficient at reaching out to customers given we are -- there is a strong overlap basically in the buying persona that we address, it makes sense to leverage those relationship within one single enterprise sales function. The other theme also within this sales organization that we work on is to, is on aligning basically our incentive plan to really boost the cross-sell efforts. So it becomes priority #1 for sales exec. The other aspect of the sales organization that we worked on is the training program that we have started. We basically are training our sales team to identify and also qualify further those cross-sell opportunities all across the organization. To support the sales organization, we're also working on the tooling. And there are two initiatives that I'd like to mention that we're going to launch next month that's going to really help us on the data and system front. The first one is we are going to provide to our enterprise sales team within the Fintech organization, a single customer relationship management application to really help log and track all customer interaction, including sales opportunities. So talking about institutionalizing the listening of clients, this will really help doing so. The other initiative I wanted to mention is we are going to launch a customer advanced dashboard reporting tool within Nasdaq that's going to help us get a 360 view of our customer relationships. So this will really help us unlock multiple cross-selling opportunities and track them better over time.

And as you have heard from Adena before, we've invested in the go-to process as a key driver for us to fuel growth. So how do we adjust go-to-market process to support cross-selling?

So what we've done is we worked a lot on this go-to-market process. And the goal for us is really to make sure that we're aligning the different teams that are part of that effort. So the sales team, the marketing team, the business development and the strategy teams are relying on one single process basically to come up with timely campaign, leveraging strong compelling events to really leverage -- to get the client attention and make sure that we're going to be reaching out on time to talk about relevant topics. So as an example, we discussed three cross-selling go-to-market campaigns that we have already initiated. Two of them are focusing on selling basically Calypso onto the Nasdaq customers. So we're selling the Calypso Treasury Solution to the Verafin customers. And we're also leveraging the broker dealer, sorry, the market operator clients to sell the Calypso Collateral Management Solutions. So those two campaigns rely on a very powerful company event, which is basically the higher, the high interest rate environment we are living in. So this is going to be really helping us to push those solutions to our customers. The third go-to-market processing campaign that we discussed also is about selling AxiomSL to the U.S. broker-dealer ecosystem. And what we are leveraging here is the change in the regulation, which will force the broker-dealer to calculate their capital reserve on a daily basis. So this is a strong compelling event that we're going to leverage as well.

Maybe as a third point, like what gives us the confidence that this will be successful?

So I think our success will rely on our people, our products and the client ecosystem we're selling into. So when we look at our people, let's look at, for example, the ex Adenza sales team, which accounts for a big portion of the Fintech sales organization. The Adenza sales team has been cross-selling for many years already, the Axiom solution to the Calypso client base and vice versa. So it's something that we have been already doing for quite a few years. Same thing when we look at the Verafin sales team, it's been 3 years now that Verafin is part of Nasdaq, and there was already great success in cross-selling into the Nasdaq client base, and I'm sure Stephanie will touch on that later today.

Excellent. Thank you. Are we also building an integration advantage? Are we integrating products?

Sure. We are also building an integration advantage, right? So there is some solutions that we use are leveraging data from other solutions. An example is last week, we signed with a large U.S. regional bank on the Basel end game solution that U.S. bank was already leveraging Calypso for OTC derivative and the data we're already here in Calypso, and we're going to be tapping into those data through data connector that we built, to implement Axiom faster. So it's going to really help accelerate the momentum and the project itself.

So, so let's talk about another proof point. Many of you have heard about the exciting sale of the Verafin platform into Citi Group. Obviously, Citi Group has been a long-standing client of Nasdaq. So Stephanie, can you share how being part of Nasdaq helped accelerate that deal?

Absolutely. I'm Stephanie Champion. I head up sales for Verafin, and we are super excited to welcome Citi as our latest Tier 1 customer who joined us for our Wire Fraud Solution towards the end of 2023. And when we first met with their fraud teams, they were clear on what was keeping them up at night. And that was business e-mail compromise and other scans that were really impacting their client base. So we performed a proof of concept, and we're in a position to really prove a solid return on investment. And we were able to reduce their fraud losses and also reduce their false positives. So the team was confident that our technology could really help solve that business need and specifically our use of consortium data. So, the only issue that we had was we were really new at navigating such a large institution. Brandon mentioned earlier, it was a breakout year for Verafin in that Tier 1 and Tier 2 space. And this is where being a part of Nasdaq really helped the team. So we could lean in on the Nasdaq brand, a brand that was already really trusted within the customer. We could leverage the existing relationships that already existed at an executive level. And also, we could really lean in on the processes that already existed from a contract legal, InfoSec and due diligence perspective. And that really allowed us to remove any obstacles and shorten our sales cycle and as sales leaders, we love that. So what's next? You heard from Citi themselves expansion. We're already talking to the broader team on our next opportunity to provide an extension of our partnership. So I think this is a great example of the One Nasdaq approach. We had a customer who knew that our technology could solve a business need. And being a part of Nasdaq, allowed us to get the deal done faster and with confidence. And when we think about bringing our solution to these larger financial institutions and to global markets, being a part of Nasdaq is going to be really important for our future growth potential and cross-selling into strategic partners like Citi.

Excellent. So Don, we have more with it than one such large relationship. So we have a good example of one particular client where we've been growing partnership over many years, and it's a great proof point of all the things we can do. Do you want to share?

Yes, it really is. I'm Don Marigliano, and I run Client Success and Sales for North American market. Today I'm going to talk a little bit about Bank of America Securities. As many of you know, they're the second largest bank in the world by market cap and there is a significant consumer of many of our products and services. This is a client that we talk to multiple times a day across many different businesses. We highlight BofA because they're a good example of a long-term client relationship that has truly grown into a partnership. BofA is a notable equity and options client across our exchanges, and that's really how our relationship started many years ago. Today, they're a client of our Investment Intelligence Group, our Risk and Surveillance platforms, AxiomSL, our Investor Relations group and our Matching Engine Technology to name a few. These products help support that notable equity and options business that I mentioned, providing market data, providing oversight to risk and regulatory, giving them insight into how their own stock is trading and giving them access to an exchange caliber matching engine to help support their ATS. As deep and as strong as this relationship is, we believe we have many opportunities to continue to grow with BofA, both by expanding the footprint of the existing products and services that they're using, but also by talking to them about products that they might not be using, like Calypso and Verafin. We love talking about these long, deep relationships that we have with clients, and there are certainly many of them. We're also very excited to be talking to hundreds of broker-dealer clients about the products and services that I mentioned today. Those conversations are ongoing and feedback that we received so far from clients have been very positive.

Excellent. So as we mentioned, the go-to-market process is in a key important driver for us to fuel growth. So we actually have a good example, want to dive a bit deeper into one of these go-to-market processes, especially on the banking side, where we bring a Calypso solution into Verafin clients with the help of listing. So true collaboration across the different divisions. Jeff and Stephanie?

So I'm Jeff Thomas, I'm EVP in the Corporate Platforms -- leading the Corporate Platforms business within the Capital Access Platforms division. We serviced 15,000 claims across 10,000 corporates and 5,000 investor clients, across our Listings franchise, our Corporate Solutions portfolio, our Data business, our Index Franchise and our Analytics Solutions for Asset Managers. So within that, we have some really interesting cross sections for the banking sector. We have hundreds of clients that rely on this for our market data business. We also have over 80% of the listed banks in the U.S. And so when I and my team are in talking to the CFO of some of these listed banks, it's very natural for us to talk to them about who's buying and selling their shares and who they should be targeting as the next great investor. But now it's equally as impactful for us to go and talk to them about the Calypso Treasury Management Solutions, and now we can help them to optimize their investment portfolios, especially given that high interest rate environment that Ben mentioned before. And so as we're out there talking to our listed banks, we have this opportunity to elevate the conversation and really deepen the partnership with them. And this is something we've been doing for years with Verafin.

Yes, absolutely. So we've already seen the teams actively working together on ways that our One Nasdaq approach can bring real value to our clients. And we've seen the team just really drive towards collaboration in ways that they can bring more value to our shared customer base. So we've actually collaborated on a market campaign, promoting our wire fraud solution into the listed client base. And we've collaborated on thought leadership as well from an AFC perspective, promoting our state of financial crimes report, again, through the listings customer base. And Ben mentioned earlier, we are in a position where we are collaborating on a go-to-market, making sure that we are able to leverage our thousand customers that Verafin has, thousands of customers that Verafin has and using our great relationships there for warm intros as we look at cross-selling the Calypso product into our customer base as well. And what's really exciting is as we think about Verafin's global expansion and our opportunity to leverage the 100 customers that Calypso has in Europe, as we start to look at our go-to-market approach there. So we are well positioned to leverage our broad customer base for a ONE Nasdaq approach and really leveraging our operational excellence that we've really leaned in on over the past couple of years.

And of course, we don't just off to our listed companies, but the listing team is always talking to private fintechs and banks that are considering a public listing. And so as we're out connecting with those companies that are considering the benefits that a Nasdaq listing could have in terms of raising capital, providing liquidity or creating an acquisition currency, we found numerous examples where those companies are already customers of either Verafin or Calypso. And so that deepens that conversation we can have with them beyond just the traditional benefits of listing, but really helping to elevate their global brand through a deeper understanding about all the different ways that we're supporting their business. And I'm pleased to say we've actually had a couple of these fintechs and private banks commit to list on Nasdaq, thanks at the strength of that partnership.

It's great to collaborate on key successes. And obviously, we all already excited to kind of see Verafin go international and cross selling will help. So that's an exciting development. Now on the broker-dealer community side, we also have another cross-sell campaign running there. Do you want to share about how we go about that?

We do. Yes. Thanks, Val. So we have a go-to-market campaign for AxiomSL for our broker-dealer community for our investment intelligent clients, many of them being retail brokers and for our connectivity clients. This plays very well into our One Nasdaq approach. It's something we've done with our risk and surveillance clients over the past couple of years. And talking to the clients gives us great insight into their business, into their technology and also allows us to kind of prioritize the opportunities. The timing of these AxiomSL conversations could not be better with some pending changes in the broker-dealer community. And our clients are telling us more and more that they're looking to their partners to help them navigate this environment. And Ben maybe you can expand a little bit more on that.

Yes. And to regulation in general, is always a great way for us to really initiate conversations. Regulation is mandatory. It comes with a deadline to comply. So we have basically budget and timing that is secure and that really improve our odds basically of selling in the end or solutions. And not only I would say this will create a very strong qualified cross sell opportunities, but it also give us some good reason to expand the conversations on other theme like trading and how to best take advantage of regulatory changes to make better informed trading decisions, which we have also tools for.

Excellent. So in summary, we're building a large-scale software and technology business with many, many touch points across our different client bases. We have identified key strategic growth opportunities where cross-sell can actually help to drive growth. And we have early proof points and good examples that really show that we can actually drive that growth forward. And already since the acquisition, very quickly, we have started to implement our cross-sell framework. So we have one team to drive sales within the fintech business. We have one commission plan, we have one set of incentives, all of the key plumbing. We have put that in place. We have started with our go-to-market campaigns, very focused, and we have many more to come this year. And we see already earlier responses of that. So we have about 100 opportunities in our pipeline, early stage but actual cross-sell opportunities. And for deals, we actually signed -- cross-sell deals we signed since the acquisition. So with the opportunities we have, with the investment in the cross-sell framework and implementation of that. And with this team, we're committed and we're convinced we can actually drive that incremental growth and achieve our $100 million-plus target by end of 2027. So you'll now hear from another client, Texas Capital Bank, and then Sarah Youngwood, our CFO, will give you the financial overview. Thank you very much. [Presentation]

Good morning, everyone. You've heard today from Adena, the business and our tech leaders. How Nasdaq is ideally positioned to deliver and integrate, innovate and accelerate. Across all of our divisions, whether it is Capital Access platforms, Fintech or Market Services, we have made the investments in growth and in resiliency that are enabling us to accelerate our journey as a tech company. I'm going to use my time with you today to showcase how our business strategy translates into financial excellence and shareholder value. I am extremely proud to be part of Nasdaq. We are a trusted financial powerhouse with scale to power growth and resiliency across economic backdrops, we have the right to win. Our strategic evolution, whether it is M&A or organic investments, combined with our strong execution, has enhanced our financial profile and has generated higher revenue growth and greater solutions revenue. We are driving value creation through a disciplined framework for expense, free cash flow and capital allocation. The result is that Nasdaq has achieved an exceptional financial profile, exceptional. I usually don't use that word, but I will here. Most software investors are focused on the Rule of 40. We meet and exceed that. In fact, we are 1 of 15 companies in the S&P 500 that meet the Rule of 60 with 5% growth and at scale, define scale as $4 billion in revenue growth and free cash flow at or above $1.6 billion. So you see it here, 6% revenue growth ,56% EBITDA margin, that's 53% in operating margin, $4.3 billion pro forma net revenue and $1.6 billion free cash flow. We have achieved these financial results through profitable growth and diversification. So here, the profitable growth, we have brought EPS and free cash flow at a CAGR of 13% and 14%, respectively, since our pivot in 2017. And on the right, that consistency in performance comes from business and geographic diversification. Let me show you that consistency through a range of economic backdrops. The dotted line behind me, are the environment in which we have operated since 2017. We have seen a global pandemic, several wars, geopolitical conflicts. We've seen the inflation touch 9% in the U.S., over 10% in Europe. And with that, the global economy came close to a recession. And you've seen that in the stock performance. The FED Fund that's the purple line has gone from 1.5% down to 0% up to 5.5%. And on the back of active monetary policies and a strong consumer as soft landing is expected. But to all this in blue, that's us. You have an 8% CAGR ex Adenza revenue. And then we have had solid to stellar organic growth every single year. We believe firmly that value creation stands from consistent revenue growth. Nasdaq's performance speaks for itself. Let me show you how AxiomSL and Calypso accelerate our growth story as a financial technology powerhouse. Given the recent acquisition of Adenza and its significance to our financial results, I'm going to spend some time on both the broader financial impact as well as specific revenue characteristics and nuances. Let me dive into the acceleration. Adenza brings AxiomSL and Calypso that adds tremendous value to the Nasdaq platform. And the impact is shown here in the middle in the column acceleration. You are seeing plus 1 percentage point of revenue and solutions revenue to 6% and 8%, respectively. Our solutions revenue is up by 2 percentage points to a total of 76% of total revenue. And our operating and EBITDA margins at the bottom are also up by 1 percentage point to 53% and 56%, respectively. Now let's look at the combined company's drivers of growth for 2023, and it is alpha that is driving growth. In fact, Beta, which is in the first column here, is minus 0.5%. With a tougher volume environment, particularly in Europe as well as the impact of delistings partially offset by macro components of index. All the other factors are alpha. We are expanding relationships with our existing client base. That is plus 6%, mostly in recurring subscription revenue, including the full year impact in 2023 of 2022 sales pricing and upsells. We have a high retention and that's a low churn of 1.5%. Our new clients, cross-sell and other innovation at 2% in Europe, and that also fuels 2024 and the medium-term outlook. This is led by our new clients, index inflows, new products, and that also includes the new IPOs with a high win rate. For Market Services, we see 0.5% growth also, and that is despite the high competition that we have seen as well as a very strong position that we have. So in total, a solid story for 2023, and it is alpha that is driving growth. As we think about the drivers of revenue growth going forward, the cloud adoption by AxiomSL and Calypso is a positive in the medium term. Today, we have clouds there at 15% of revenue and 23% of ARR, and it is 50% of new ACV. Brad and Brenda and several have explained to you how we can accelerate. Nasdaq, you have seen us, have a strong progress in SaaS as a percentage of our ARR. And we talked about 38% last year. As we integrate, we thought on a pro forma basis at 35%, and then we have this opportunity to continue to accelerate from there. We are delighted with this progress on the cloud because it is a positive for Nasdaq economics. Specifically, the ARR and that's at the bottom and very important, is full cloud 1.5x more than on-prem. And what's happening here is that we are capturing some of the time that is otherwise done by our clients. In on-prem deals, and it is coming into our revenue as part of now our serviceable revenue, in fact, our own revenue. And it is a win-win for our clients and for us. And cloud contracts also enhance the opportunities to upsell and cross-sell. As more clients adopt the cloud, we are enthusiastic about the destination and the economic benefits that accrue to us as a result. On this page, I would like to show you what happens for GAAP now and as the clients transition. Many of you have talked to have noticed the strong contribution of AxiomSL and Calypso in the fourth quarter earnings. At Nasdaq, for solutions, revenue and ARR are very consistent in terms of both because the majority of the contracts are subscriptions. At Adenza, the revenue and ARR can be consistent like in 2023 can be quite different, like in Q4, 2023. So that's the 47% that attracted your attention. And I'm going to explain to you what happened. It could have been, but it was not particularly for the fourth quarter, the customer delivery and support because that represents 20% for Adenza. What it was, was a lot of on-prem contracts that came up for renewal that generated higher upfront revenue. So I'm going to now walk through the mechanics of what happens, and I'm going to take the example of a total contract value that is $12 million over 3 years. The first line is the most important line, ARR and cash flow. They are the same for cloud and for on-prem, $4 million per year, for 3 years, 4-4-4. The second line is still easy as the cloud still,4-4-4. Now on the third line, on-prem contracts, there is value that is attributed to the software license. And that value makes us record true half of the revenue upon delivery. In contracts in Market Tech, there's no value to the license due to the highly customized nature of the tech and related dependency on Nasdaq. So in that third line, what we do is we take half of the 12-6 and then the rest, the other 6 is divided by 3. So that's 2-2-2, so 6 plus 2, 8 and 2 and 2. So now that's the 8, which would have in the 47% just so. And you can see how it could be very strong or not so strong without the economic reality having changed at all. Hence, we tell you guys to focus on ARR because that is the consistency and on cash flow and tech companies do that, too. So that's important as the cloud increased because you're going to have the transition of lower on-prem in your recognition. And during that transition, we are going to help you with your models with additional color on expectations. So for 2024 for the combined AxiomSL and Calypso, when we put it at the bottom here, we are going to give you some help here. So you remember that at the time of announcement, we had said that the medium-term revenue growth outlook for Adenza would be in the low to mid-teens. And then we said that the fourth quarter earnings to expect ARR in the mid-teens. So we expect to stand by this outlook. And in fact, we expect to stand by this outlook also in 2024 despite the higher renewal cycle that we had in 2023, especially for AxiomSL. So I'm going to wrap up the section on revenue growth and its acceleration with the solutions outlook. So let's start here with $31 billion SAM, hopefully by now you know this number, it is growing at 8%. In the middle is $3.3 billion, our solutions revenue, just about 10% penetration of that SAM. That's low. We have a diversified client base and strong opportunities. I'm going to give you just a few examples because the business has really given you tons of examples here. So just say, for example, 11% of that revenue, very low and very, very low penetration. We've quoted about Verafin moving upmarket. In the other financial institutions, for example, we are seeing the sale of the Calypso product to the Verafin customers. So that's another cross-sell. So together -- when we take it together, we feel really good about the 8% to 11%. And I'm going to give you 5 reasons that give me confidence in this medium-term outlook on an organic basis. So first of all, has a strong foundation. This year 2023, as we reported it, we had a year that had, I just showed you, a macro environment that was not particularly supportive, and yet we delivered the 8% for solutions. We have a large SAM. We have a growth of our SAM, which is at the low end of the outlook. We have a low penetration of that SAM. And fifth, we have $100 million plus in fintech cross-sales as well as the $250 million in sustainability revenues, which generate upside within our medium-term outlook. Now let's continue our journey with the financial discipline that we have, and I'm going to cover expense, free cash flows and capital allocation. One thing that is rare that is true here at Nasdaq is that we are continuing to operate a transformation while delivering operating leverage. As you know, in 2023, we kept our strong operating margin flat while supporting our investments. In the chart, you're seeing the structural and other inflation pieces up 3%, not surprising given what you know about the environment, offset by efficiencies of 1% partially. And then the 3% is very strong, and that enables us to support the volume-related growth as well as the investments. As you think about the efficiencies, there are 2 programs to drive those operational efficiencies. First, the divisional realignment program. When we noted it, we said we would have $30 million of expense savings in addition to the revenue benefits, and that's by the end of 2024. And we are ahead of schedule with approximately 75% action so far in 2023, of which we saw $15 million benefiting the expense story in 2023. Second, at the bottom, the $80 million Adenza net cost synergies targeted to be actioned by year-end 2025. And we are actioning this year, as you've heard already, 70% by year-end, and that will be realized in P&L, partly in 2024 and fully in 2025. The in-year benefits of these 2 programs provide operational leverage that are included in our 2024 expense guidance, and we've put it back in the outlook in the back of the presentation. So now moving to the medium-term outlook, you see ongoing efficiencies, including the benefit of our divisional efficiencies continuing, our location strategy, the benefits of scaling in the cloud and AI efficiencies related to on the business that we have. We also, at the bottom, continue to invest and support our growth. And here, we focus on unit economics as well as a rigorous framework to invest. All of this leads to the 5% to 8%, which is 300 basis points better than the solutions revenue growth and with the Adenza synergies, providing additional operating leverage in the short term. This expense outlook and our CapEx also reflect the fact that both Nasdaq and Calypso and Axiom have both been well invested. And as such, we don't need to catch up either in expense or in CapEx. So now we've spoken about revenue, expense, CapEx and that leads to free cash flow. As we consider our capital plan, we have the benefit of $1.6 billion of free cash flow. That free cash flow has compounded at 14% since 2017. We have 114% conversion ratio. That is higher than any peer group you can find for us, give your choice. We also like the consistency of that conversion rate because it is at or above 100% every single year since 2017. So with the benefit of our strong free cash flow, here are our capital priorities: focus on organic growth and deleveraging. We invest to support growth with a focus on our investment opportunities on a rigorous framework. So what we're going to do is -- first of all, we have a complete set of solutions. We have the right to win. We have a tech platform that enables us to be viewed as a strategic partner by our clients. And with that, we have clear objectives and disciplined execution, and that gives us runway. We're going to execute in that runway to deliver organically the medium-term outlook that we have discussed today. We have line of sight towards that. If at some point in the longer term we considered M&A., we would evaluate each transaction for value add to shareholders on a deal-by-deal basis versus other uses of capital. Moving to the second box with deleveraging. We're going to hit the 4x about 9 to 12 months ahead of goal and the 3.3x at least 6 months ahead of schedule. Third, we remain committed to a progressive dividend. And lastly, share repurchase remain part of our framework to offset dilutions for employee vesting and as we consider when to also offset the dilution from the acquisition. For now, we conclude that deleveraging is the way to go with debt paydown and acquisition dilution being fairly consistent in terms of acquisition and the debt being accretive to free cash flow. So I'm going to come back to the different pieces that I have. So in the first column, we talked about the organic investments. Nasdaq has a very strong history of being a hallmark of trust and innovation. And that doesn't happen without consistent investments in technology across horizons. Many of you listening today are portfolio managers, and we consider ourselves, here on the right, to be portfolio managers, too. We allocate our resources across products and horizons with a focus on ROIC. In the Horizon 0, this is the base. This is the foundation. This is stable stake. This is what it takes to operate an exchange at the speed we talked about to remain modern, to have cyber, to have trust. This is cloud data infrastructure. Horizon 1 and 2, representing investments that have a very strong ROI, for example, 2x over 3 years in Horizon 1 or over 5 years for Horizon 2. Those are growth accelerators and they drive also expense efficiencies. And for example, if we talked about AI, you heard actually Brad on the panel give the example of the very few resources that it took on an incremental basis to drive the ability to generate some of those AI outcomes, and that's what we're talking about here. The Horizon 3 is the future. It contributes to the long term. As an innovator, we need to stay ahead. When we tried AI 7 years ago, when Adenza tried big compute 5 years ago, we actually didn't have a path to profitability and yet we did it. And today, those have moved into Horizon 1 and 2. And that drives the future profitability that we can have. So similarly, we're going to continue to invest in the future to power leadership for years to come. So second, on the focus on deleveraging, what you've seen is that we have put in place $1.9 billion in maturities that was short term when we did the deal, and that was no coincidence. We wanted to make sure that we had the optionality to facilitate deleveraging. And in fact, you saw us in the fourth quarter, we paid $260 million of the term loan, and therefore, you see that we have $1.6 billion near-term maturities that are left. In the longer term, you are seeing that we go all the way to 35 years with some very attractive rates. And we also have a 4.1% pretax weighted average cost, and we are focused on balance sheet management. Whether it's fixed versus floating across currencies, we consider all of that as very important to be well and conservatively managed. Third, on the dividend, you see the 11% CAGR, and that's over the past 3 years, we continue to ramp towards our 35% to 38% payout ratio outlook by 2027. As such, we are increasing our dividend to $0.24 per share. That's an increase of $0.02. And from there, you can expect us to continue to be progressive as we continue to grow our free cash flow and our net income. So before we wrap up, I'd like to bring all of this together. Over the past 7 years, we have delivered 16% CAGR in total shareholder return, and we are positioned to continue to deliver sustained shareholder value add. We are integrating AxiomSL and Calypso, which will result in accelerated growth and margin expansion, and you've seen the 70% of net expense action this year. We are operating our business with capital discipline, free cash flow conversion, focus on organic investments and deleveraging. And we are positioned to deliver profitable growth and to reaffirm our medium-term outlook with a sum of $31 billion, growing at 8% for solutions, a model that is diversified and focused on alpha generation and our cross-sell opportunities as well as our sustainability opportunities. So we have a page in the appendix, which has all of the color that we have provided today across all of their presentations and all of the outlook. In summary, we couldn't be more energized about Nasdaq's future. Since our strategic pivot in 2017, we have made deliberate investments to create a financial technology powerhouse that now stands amongst the most trusted global brands and 1 in 15 in terms of financial excellence. We have evolved from an exchange and market operator to a scalable platform company. We have an incredible track record of executing on integrations and organic growth. And we are well positioned to deliver on integrate, innovate and accelerate. We're well ahead as we integrate. We constantly innovate. Our early adopter culture drives us to stay ahead. We've got data cloud AI that generates scalability, speed, trust and profitable growth. We are ready to accelerate. And as always, we are relentlessly focused on delivering shareholder value. I am thrilled to have joined Nasdaq at this important moment in time in our journey, and we are just getting started. Before we move to Q&A, I just want to thank all of you for coming here. It's really nice to meet the ones that I had not met in person before and to re-meet those that I already know. And I'm going to invite to the stage Adena, Brad, Nelson, Tal and Brendan, and we're going to take Q&A. We are going to have Ato moderating. So raise your hand, wait for the speaker, and we're going to go through that.

Yes, we are. So we only have 5 of these tools, so I'm going to stand over here. And all I'm seeing -- the Q&A. We figured this out before. And Ato will make sure that he calls on everyone and you want to go through kind of the...

Yes. So thank you for that. So a couple of housekeeping items for the Q&A session. Just please have your hand up. We will get a micro runner over to you. And then when the mic is there, please introduce yourself, the company you represent, and then feel free to ask your question. And with that, we'll start here in the front.

Alex Kramm, UBS. I want to start where you ended, which was capital discipline. A lot of information. I think the one thing I missed a little bit is more stringency, if that's a word, on future M&A. I know you got your hands full in the near term. But I think the commentary around future deals are going to be, I guess, evaluated on a case-by-case basis. Still sounds a little bit wobbly. So I remember a pre-2020 Investor Day, you had very stringent ROIC IRR targets. And then obviously, you've got rid of those before Verafin. But now that you've done all these deals, why not come back and say, look, we're going to do some small deals, trust us on those, but on bigger things we're going to put ourselves in a very tight box that you can evaluate and trust us, I guess, for the next few years as you have delivered?

So I'll take that. So first of all, we are focused on organic growth. We have a lot of runway in front of us from a capital management perspective and from an execution perspective to deliver for our clients while we deliver to shareholders without considering M&A. If we consider any M&A as we're going through this process, and our goal would be on an ongoing basis to get below 3x leverage. As we have done in the past, we've delevered down below 3x on prior deals. We have a long runway now to be able to execute organically. If we do small deals, they'll be very small. And they're not going to have an impact on our capital plan around deleveraging and buying back shares. So I just want to make it very clear. Our focus is on organic growth and organic future. So later on in the future, if we consider larger M&A, we will have -- we all have future opportunities to talk about what specifically we mean in terms of value creation, but we said value creation for shareholders on a deal-by-deal basis. And that means each one of the deals, we'll have to look at that in terms of the incremental value we provide to our shareholders as compared, as Sarah said, to other uses of capital deal by deal. And I think that's as far as we're going to go right now because we're really not focused on it. We're really focused on delivering organically.

We got into this area on the left.

Owen Lau, Oppenheimer. So first of all, thank you for putting all this information together. This is very helpful. I have a question about comps. Looking ahead, how would you benchmark Nasdaq against -- like what kind of companies do you think you would compare Nasdaq against? Would that be information services company or exchanges or enterprise software? And how should investors think about your comp going forward?

Yes, I'll let Sarah start with that answer. .

Yes. So I put on the page specifically, the peer group that traditional people might have wanted to compare us to like exchanges but also the ones that we would compare ourselves to, which is info services in particular. And it's really important to think about why I focus on those. I focus on it because when you look at the strong growth and strong margins and strong free cash flow, you've got to look towards those type of companies to deliver that. And the other commonality is having a foundation and translating that data that comes from the foundation into all of the opportunities that we have described today.

Yes. So we would definitely align ourselves around information services businesses. But we do obviously have elements of our business that are aligned to exchange, elements of our business aligned to enterprise tech. So I think that, really, as you're starting to see more of our peers but also the broader peer set in the information services business, kind of broaden out the scope of their capabilities across software, data analytics and some regulated businesses, I think that you're going to find that there are more of us that you can kind of compare us to over time. .

We go in the back.

Mike Cyprys, Morgan Stanley, and thanks again for all the information today. Maybe just on the solutions businesses, 8% to 11% that you're targeting, you're suggesting you could perhaps achieve towards the high end of that range. So maybe you could speak to your confidence, the time frame around that. What parts of the business do you think would be the biggest contributor in terms of getting to that higher end of the range? What are the levers that could be most meaningful? And maybe just on the Adenza synergies contributing probably part of that there, maybe you could speak to where you're most optimistic.

Yes. So I'll start, but I can have one of my peers here help me out. So generally speaking, as you can see actually from our past, like in any given year, we could have a year where we exceed our outlook. And I think that that's going to be helped with a helpful market backdrop, a helpful economic backdrop. We have had, in the last couple of years, a more challenging economic backdrop, and we still stay within the range but at the lower end. With a helpful market backdrop that can kind of move up in the range and we do have good leverage ability there. . But as we look at our own alpha execution, and we just kind of assume that we have a consistent market backdrop and we can kind of continue to accelerate the business, I think that the opportunities within fintech are very significant. And you could have years where we really accelerate across whether it's growing upmarket with Verafin plus growing internationally. with AxiomSL into Asia, let's say, because we have a lot of really strong presence in market tech there. And then actually, really, the Calypso platform is showing an enormous amount of opportunity because of the fact that it's very modular. It's addressing a lot of capital markets versus management needs. So I would have to say within just the FinTech division, there's just a lot of engines there that could have these breakout years that I think could help get us to the higher end and then, of course, more structurally cross-selling. If we land and expand and land and expand across our cross-sell clients, that obviously gives us acceleration. And then the last thing is index. Index is an amazing business. We've given it a medium to high single-digit growth rate despite a pretty high SAM growth because the last couple of years, the market backdrop has been less constructive. And we want to make sure we're always able to operate within the band that we provide you. But that in any given year can have a breakout year as well. So I don't know if there's anything else to add there.

I think you covered it. But I mean, one is the operating model also. What we're designing inside of Nasdaq will help catalyze all these opportunities, drive them faster into the organization and allow them not only to identify but action them faster than we otherwise would on the operating model. And then like you said, there's just a number of levers that I feel really good about, whether it's regulatory folks trying to take advantage of risk management and the global opportunity that we have in front of us. I'm seeing lots of opportunity in different geographies, emerging economies that give me hope that we can actually broaden out the FinTech division in terms of where we can sell and who we're selling to.

With that, let's go to the middle here with Craig.

Since we have Brendan on stage, I had a Verafin question. And I want to kind of cross what you said about Citi versus BofA. But at Verafin, you have dominant market share with smaller banks, and the opportunity is sort of larger banks. But larger banks already have a huge network data, so maybe there's a little bit of desire not to let smaller banks free route on them. So I wanted to hear what is the sales pitch to large banks? And what kind of made you successful at Citi?

Right. So if you think about what keeps any compliance or fraud -- person who's in charge of fraud at these financial institutions about -- it's the things that they don't know about. And the power of the network that we can deliver to our clients, particularly in the Tier 1s and Tier 2s, we can give them visibility into things that they don't have visibility on today. So the network that we built out across our small and medium clients, you have to think about not just the clients of those banks but who they're actually interacting with. So we have this network of over 500 million counterparties where some of those are in our SMB clients, but a lot of those are at financial institutions across the U.S. and globally that don't use our product today. And when we can leverage that at these Tier 1s, so we can go to a Tier 1 and we can say, okay, we can help you detect fraud based upon your own data. But when we add in the ability to see risk outside your walls, that's a strong and compelling pitch to these financial institutions because they know what they can do today. What they're looking for is they're looking for additional insight that they can't get out of their own data holdings, and we're actually able to provide them that because we've been able to create that data lake across 2,500 financial institutions.

Craig, I would add a couple of things. So what I'm hearing is that there's a competitive issue that you're thinking that the larger banks are concerned about competing with smaller banks, vice versa. I've seen a structural shift in the approach that banks are taking around financial crime. So in a lot of areas, I agree, there's a lot of areas of competition. In the more recent years, and it really has been really in the last 5 years, I would say, there's been a shift in attitude of we all have to solve this problem. This is an industry problem. This is not an area where we want to compete with each other. We just want to increase integrity because it's costing us all a lot of money and it's undermining confidence in the system. . And so it really is a shift. I mean it's been really interesting. I'm talking about it at the CEO level, the COO level. They're really coming together and saying, this is a problem we have to solve together. And what I really think about when I look at Verafin, like for instance, we were able to go in and provide to 1 bank kind of a 30% reduction in false positive just by the fact they're able to tap into our consortia data as opposed to adjusting it their own data, and that's at a large-scale bank. So that means within their four walls, they see a lot of things, but they don't see everything. We have a chance to help them see everything, and that really makes a difference. And I have to say, really, it's interesting to see how the industry is evolving in that area.

And the most important thing then is that's a flywheel. Every institution that joins adds more power to the network, allows us to be able to tech from better. It allows us to be able to do that more effectively.

That's right. Yes.

Towards the back with Dan.

Dan Fannon, Jefferies. Last year, I think in multiple quarters, you talked about elongated sales cycles in workflow and I think, insights. I'm just curious if there's any update in terms of the business trends within those units.

Yes. I think the start of Q4 was where we started to see, particularly on the asset manager, asset owner side, those abate to a degree as well as it started to pick up again to the end of the quarter on the corporate landscape. So we're seeing that flow through again into Q1. I don't say it's a full light switch where they're dramatically shrinking, but they certainly have -- we condense the time frame the sales cycles. The budgetary process has gotten less stringent. And I think both corporates and investors are starting to look at what they missed out on the last few years and starting to be more of a productive buy opportunity for us or selling opportunity.

Go ahead, Alex.

Alex Blostein, Goldman Sachs. I had a question around pricing when it comes to Axiom and Calypso historically. How much of the growth has pricing increases contributed? And I guess as you look forward, what is the opportunity that you see on price across those platforms. And I guess, importantly, when it comes to cost/benefit analysis at the customer, can you talk a little bit about your pricing and how that compares to them, either doing that internally or going with somebody else?

Why don't you start.

Yes, absolutely. So I'll take it by product by product. So we always want to deliver value when we're increasing pricing. So we're providing new versions of either Calypso or AxiomSL, we're always trying to add more value. You might have heard Ed talk about it. We have over 5,000 reports in the Axiom library. We're constantly investing there. We're constantly improving our [ fin way ], capital and liquidity capabilities. So we're trying to educate the customer on that. And so when a renewal comes up, we're having a great conversation with the customer about the value that we're adding as part of the price increase that comes with any renewal. And then as they take individual modules, and that's the beauty of both Axiom and Calypso, they can take it on a module-by-module basis. They can figure out what they need. And then if I just switch to Calypso for a second as I talk about modules, one of the things we noticed in due diligence and now through our client conversations is our biggest competitors in the Calypso space, you generally have to take almost all of the solution or much of the solution, where we can go in there and be very exacting about providing treasury or capability -- sorry, collateral management or post trade. So that allows us to get in. So we have a number of points that we can get into a bank pretty quickly without having a big spend to start with. So I think we have an advantage in the way that we get in. And then obviously, on pricing, we're going to try to demonstrate value. And a big part of that also is cloud. As we invest in the cloud and we take on more services for our clients, we manage more and become a bigger partner of theirs, there will be a pricing increase for that, but clients will see real value. And again, the example is for Calypso, a bank might have 5, 10, 15 people just there to manage implementations, upgrades because it's across the entire organization. Our ability to reduce their key man risk, the total cost of operations over time is significant. So our pricing increase is just a small piece of the benefit that we can deliver.

And I think when we announced the Adenza transaction, we said that about half the revenue comes from upselling clients on new modules and capabilities, and half of it comes from both pricing cross-sells and new sales, new logos. So we are really still getting the majority of our revenue from upselling new clients and cross-sells, right? So I just want to make sure that that's clear.

Brian Bedell in the back.

Brian Bedell, Deutsche Bank. A question for Sarah and Adena. The nature -- just if you can talk about the nature of on-prem versus SaaS and what you see as the future direction of your new wins in those 2 areas. And maybe talk about large. As you break into Tier 1 and Tier 2 even more, are they more likely on-prem? And also as you get market share within your SAMs and TAMs, is that more of a replacing other vendors or actually going from an in-sourced solution to your outsourced solutions.

I'm actually going to hand that to Tal. Yes. Yes. So basically, you had a lot of questions. I'll write it down. So it has to do a lot with, number one, when we're going into the largest banks, are they more like the on-prem or cloud. And number two, as we're thinking about that cloud conversion, how are we -- what's the sales cycle like kind of how -- what's the value proposition? But also even with the midsized banks, is it more that they're moving towards cloud? Naturally, are we kind of making sure that they are going with a very specific value proposition? It's not quite what you said, and we'll start there.

Yes. And to start with on both AxiomSL and Calypso, we're always going in with choice. So we're providing that customer a choice, and we're showing the value proposition of our cloud offering versus our on-prem offering, make sure that, that client has a decision. And what you saw up there is on the Axiom side, we're having great success with new logos. And those new logos for a large extent to them are in the midsized category. So we're actually having success, number one, moving downstream and two, implementing cloud for those clients. . And the reason is these clients are struggling to keep pace with the changes in regulation. So there's a change in regulation, which if you're a $200 billion bank, there's a lot coming your way. So cloud really offers you the ability to scale in a way that you couldn't do it on your own. You just don't have the resources. You don't have the attention that you could do it on yourself. So that, on Axiom side, we're seeing success. On the Tier 1 side for Axiom, we're starting to engage the larger institutions in these conversations. It is part of a bigger infrastructure play for the banks. The key with banks on the Tier 1 side is have they made the investment to modernize their financial data warehouse? Because you really can't take advantage of our cloud unless you made the modernizations internally. So if they've modernized and have control over their data and they have a great financial warehouse and they know their data, we can have a great cloud conversation with Tier 1s. You'd be surprised. There's some work that they need to do there. Just going to Calypso. Calypso is different because, as we said before, right now, Calypso on-prem is an integrated code base. The version management is really top notch. It's only 2 versions that are out there today, and it's componentized and modular. So while the uplift is significant, it is not as significant as some others. So when I think about then the time line question of like on-prem for Calypso versus cloud for Calypso, generally the same, and the reason they're the same is because there's a lot of integration points for Calypso into these banks. So that's the #1 conversation that we have with Calypso. It's not really us. Again, it's the banks and saying how many systems are we integrating with? And it could be 20, 30, 40 systems that we're integrating with, right? And so that will drive the time line more than cloud versus on-prem and obviously, their willingness to invest, but once they're in cloud, the one thing about Calypso that's really, really powerful is their upgrade's almost painless. We take that on. And if you know any of the larger competitors, the biggest complaint they have with their competitors are the upgrades. And so our ability to go in there and say, all right, we understand there's going to be a project here to integrate, but once we integrate, key man risk, total cost of ownership, all these upgrades and if you take more modules, look how easy it is for you take this more modules. So a really, really powerful argument for us. And again, we can upsell as we go where others don't have that flexibility.

And I wouldn't mind asking Brendan. So as you're going into the Tier 1s and Tier 2s, so you are cloud-only. And I know you've been actually contemplating getting into the Tier 1s and Tier 2s over time. And in fact, in the past, you've had some desire from clients to say can we just take something on-prem. Talk to us about like that journey and now the conversations you're having with Tier 1s and Tier 2s versus maybe 10 years ago.

Yes, I think there's been a marked shift particularly over the past several years, in fact, in terms of the openness to cloud. And I think part of the reason is because of the unique value that can be delivered as they look at cloud-based solutions. So what we do in terms of our payments risk scoring can't be done unless it's in the cloud. And it's a combination of not only being in the cloud, but it's also an architecture where the banks have to contribute in order to be able to use the system as well. So they need to contribute their frauds back into the system, which we can then use for machine learning, we can use for feedback within the system. So it's 2 conversations, which we've actually been walking along the banks with: one is the comfort with the cloud, which, as Stephanie mentioned earlier today, I think a big bonus for us as being part of Nasdaq is that trust, right? Okay? Verafin's Nasdaq company. We're more comfortable with the idea of moving towards the cloud. And then also the ability of saying, okay, not only are we going to go to the cloud, but we're also going to share our fraud data into the system, which then makes it better for everybody.

There was another piece of that was whether it's internal or competitors. That was -- yes, so if you want to...

Yes. With Axiom, it's really internal. I mean, there is no true competitor Axiom on a global basis. So often, the conversation is, and I was just at a client the other day, and they're trying to figure out how to marry an internal solution with Axiom. And the beautiful thing about Axiom is we can do that. So we can do last-mile reporting for a client. They can do a calculation. So we can work with clients. And over time, what I've seen in the short time we've been together is it's not hard to convince them over time to say, well, actually, if there's regulation, that means it becomes standardized. And if it's standardized, I should just outsource that to you. Why am I doing that? Why do I have people doing that for me? So that's on the Axiom side. On the Calypso side, like I said, it's a bit more competitive on the Calypso side, but we've done a really, really great job on the Tier 2s and Tier 3s globally on the front-to-back side. So we can power, if you will, Tier 2s and 2, 3s, especially on the OTC side, starting with pro trade and moving our way up. That's where we've got really great success. But it's slightly more competitive on the Calypso side.

For our next question, let's go to the back and then middle.

It's Michael Cho from JPMorgan. Adena, I just wanted to follow up on the capital allocation point that we discussed. I mean we frequently talk about Nasdaq being the trusted fabric to financial institutions. And we realize a lot can go in there when we talk about that framework. So I think you had a slide that you showed a grid in terms of Nasdaq's capability focus and where you're headed in the future. I guess, one, is that the right grid to think about Nasdaq's capability focus both organic and inorganic companies look forward over the next 5 to 10 years? And then two, just a near-term question, as we think about faster deleveraging and faster efficiencies post Adenza, are there some areas that take higher priority in terms of allocation as we go forward?

Well, first and foremost, as I said before, we're extremely focused in organic growth. So I have to say that we're really focusing on how we can maximize what we have today and continue to expand what we do today organically. So we have these engines of development now. We have a modern development methodology. We have a very modular technology across every element of our business, whether it's in capital access platforms, fintech or markets. So we do really feel like we have an ability to kind of grow and expand. In terms -- I think you mean in terms of like all of the different elements, capabilities we offer to different client sets, that, we feel, is a very complete suite of solutions. And you can see we're pretty early. I mean we -- for instance, within -- we were actually just talking about this earlier today. There are certain sophisticated corporates that have very sophisticated treasury operations that could really benefit from close to the treasury platform. But that wasn't on the grid. We didn't show that yet because we're just starting to figure out how do we maybe go after that market, but that's not in the cross-sell campaign that we talked about so far. So we have runway within our capabilities to continue to grow and expand the impact. Another example is investment managers. When -- and this is just an interesting fact. I think 5 years ago, AxiomSL and Calypso had almost no revenue coming from the investment management space. Today, it's about 10%. So they have a really nice growth vector inside of investment managers because they're facing a lot more regulation and they're having to be much more sophisticated in their internal trading operations. So we do feel like we have good growth runways on an organic basis. And then lastly, in -- across whether it's index, we have really a great way for us to expand our clientele globally, be more -- getting more into institutional clients, especially capturing everything we have within investment intelligence to help serve those clients. And then I think with anti-fin crime we have just an enormous runway growth around the world. So we feel really good about complete suite of solutions, lots of growth opportunities for us. And it does cut across liquidity, transparency and integrity. Those are the themes that we're going to stick with as we continue to expand our business. Hopefully, that answers your question.

We still have 1 more question in the back, it looks like, we have.

Christian Bolu, Autonomous Research. Maybe for Tal. Just provide more color on Adenza's margin profile, over 50% margins, which is well above other businesses you have in that segment and I think compares to Google. So it seems like a pretty robust margin profile. What is Adenza doing that's different from other enterprise software businesses? Is there any deferred CapEx that will bring that down over time? And then as you kind of look at Adenza versus, again, your other business, is there something you can transplant into those businesses to make other businesses get that kind of margin profile?

Yes, that's a great question. And maybe I'll tag team with Sarah on this one. It's really interesting because when we first met Adenza and talked to AxiomSL and Calypso, I said -- I turned to Adena and said they're doing exactly what we want to do. This is where we want to take our business. And that was in the first meeting, where we saw they had an enterprise-wide operating model that allowed them to catalyze their pipeline really, really effectively. They were leaning into like a location strategy and understanding how to service their clients globally from different locations in, really, a cost-effective manner with high value. And so those are the 2 things we noticed right away. And then the third was the fact that they have these great products but the way that they actually sell these products and the way that they educate the customers, the way that they actually cultivate and nurture that pipeline was really, really strong as well. So those are things that we're bringing to the new division in the Financial Technology division. So the operating model I talked about, takes a lot of the great attributes that Adenza had, and we're going to apply them here. And it's the enterprise functions. It's how we think about cross-selling. It's the tools that we use, all of that really kind of building off a position of strength. And then when we looked at them, we said, well, the first 2 things you have to ask yourself is are we the right owners and can we accelerate their growth? And we felt very, very strongly that we are the right owners, and we can accelerate their growth for a couple of reasons: one is AI and cloud. They were leaning into that. That's a business they've gone into over the last couple of years, and we've shared our expertise and our experience there that we think we can help them with cloud and AI. The second thing we thought about is just the operational expertise that we have in Nasdaq that we can apply over these great products. So we're in exchange. We're highly regulated. We understand incident management. We understand how to service these kinds of clients on a global scale. And so taking our operating model, pieces of it, applying parts of their operating model, fusing those together really, really powerful for us. And then lastly, the -- one of the first questions you always ask yourself, is there a cultural fit? Can you work with these people in 5 years? Do you feel really good about the asset you own and the people you're working with? And we ask ourselves that question over and over again. And the answer is resoundingly yes. And that's why you see the management team that we've established, it's a real true combination of AxiomSL, Calypso and Nasdaq so well coming together. And we're integrating on day 1. Before we even got out of November 1, we already had plans. We were advancing them, and we understood exactly how we wanted to work as a team, which is, I think, pretty unique.

Anything else.

The only thing I would add is 58% is that EBITDA margin. And I also mentioned that neither at Nasdaq nor at Adenza do we see a need for a catch-up. So that's really important because it's not like a moment in time. It is a sustainable 58% EBITDA margin.

Other questions?

Any other questions?

Do we have any coming from online? I don't know if that -- no.

No. A couple in the center. Maybe in the back, Kyle?

Maybe just a couple of follow-ups on the cloud conversation that we had before on Adenza. Just wanted to clarify, how much cloud migration do you expect over that 3- to 5-year period embedded in your targets versus the 15% that you kind of laid out for 2023 for the Adenza businesses. And just also a clarification point. It sounds like there could be some variability on an annual basis as you kind of embark on this cloud migration, although that's not going to be the case for 2024 specifically. So for reported revenue growth, that low to mid-teens, is that still a good way to think about both ARR and reported revenues over that 3- to 5-year time horizon as well?

Yes. So -- in 2024, we do see an impact because there was a very high cycle of on-prem renewals in 2023, but not enough of an impact, not to be confirming that we will be within the medium-term outlook that we have given. And when you look at the evolution, you see that 23% of the ARR is today on on-prem -- sorry, on cloud, which means that when you -- it's going to evolve because you have 50% of the new ACV that is actually on cloud. So like that's how it's going to grow from that base of 23%.

Yes. I think it's going to take several years. We're not going to give you specific targets year-by-year, but I would just say, as Sarah said, about 40% to 50% of new bookings is coming in cloud against a 23% base on ARR and 15% base on total revenue. So it's going to be one of those moving trains that moves up over time and it allows us, therefore, to have -- we do have variability between, as we said, the total revenue versus ARR growth of low to mid-teens versus mid-teens, partly because of the fact that you've got these kind of renewal cycles and elements of that on-prem part and also the migration to cloud but partly also because of the implementation revenue, which is about 20% of the revenue can have a -- can have a big year and can have a little bit more variability. So we just have that delta just to make sure that we're showing that there's both the migration to cloud, and there are some other revenue streams that come in that can have different characteristics to it. But hopefully, that helps. Okay. I think there was some one right in front of you. You want to...

There we go. A couple...

[indiscernible] from BofA. I was hoping you could go a little bit into more detail on the annual contract values for the Tier 1 banks versus some of the older Tier 2 and Tier 3 customers and kind of where those contracts could expand into? Like where do you view the ceiling for those partnerships? And then lastly, unlike the recognition element, I think you've said in the past that there is going to be some time until that actually starts to flow into revenue, an update on like the status of those contracts actually come flowing through into the...

Yes, and that was specific to financial crime management. So I'm going to start with Brendan, if you want to talk about the ACV delta and the timing.

Yes. So within the Tier 1s and Tier 2s, from time of contract signing to revenue recognition, we see that around 9 months, sometimes to 12 months, which is the implementation time on that first contract to be able to get the data flows up and running, to go through training, onboarding and to get them into production. With the Tier 2s, where we've already started to expand, that can be shorter depending on the product that they're buying and whether or not we already have the data or whether or not we need to go and source more data. So it does depend. But in general, it can be quicker to get to recognition of revenue on a second or a third opportunity as opposed to the first one. What was the other question?

So just ACV, ACV delta, yes.

ACV, yes. So within the Tier 1s, again, as the idea of land and expand where they're not buying the entire platform, as we're walking to these financial institutions and selling, for example, our payments fraud or our ACH fraud, those can be contracts that might be $1 million ACV, for example, compared to 6 figures or lower within the smaller institutions when we think about the entire platform. But then we see every subsequent product that we're able to sell into those Tier 1s and Tier 2s around the same kind of ACV. So as we look at the overall total share of wallet, that land portion is only scratching the surface of the total wallet that we see as being available to us.

Yes. I think there's one great fact, which is when you look at just Tier 1 banks, they comprise about 50% of the financial crime management spend versus every other bank in the United States. So -- and yet, the vast majority of Verafin's revenue today is coming from the small to medium banks, and we're just starting to get land and expand into the Tier 1s. I think there was a stat up there that the average ACV for Verafin is around $100,000, a little over $100,000, whereas the Tier 1, Tier 2s, as you're saying, we're landing at around $1 million, I would just say, as we're going into that sector. So hopefully, that helps. I think that with Adenza, it's much more scaled. I mean, we're talking about large and medium banks and brokers all over the world, and it's a little bit more consistent. And I think we put up there, it's a $1.1 million ACV per client across Adenza -- I mean, across fintech, ex Verafin. So we actually took Verafin out and listed separately just because it has such a big group of clients at that lower end. We wanted you to see all of fintech. That includes market technology as well as all of the Axiom and Calypso capabilities as one ACV number and then we showed Verafin as a separate one.

Patrick?

Patrick Moley, Piper Sandler. I was hoping you could talk a little bit about how you're managing the overhang with the Thoma Bravo ownership now. Is there any potential for an organized secondary offering? Can you just speak a little bit about that?

Well, so Thoma Bravo has come into our stock as a 15% holder. Holden Spaht is on our Board. So they are coming in as a strategic investor. We -- they do have certain lockups. We do not have any conversations with them regarding their plans around that. And I think that, for us, it's a matter of bringing them in, making sure they understand our business really, really well. Holden has been a great contributor to the board already. And in fact, they've been working with us on thinking about the metrics, internal metrics on how we drive to monitor software metrics across all of Nasdaq and really helping us think that through and also showing why they matter, why they work. What's that -- that's part of their playbook. And so they've been really engaged with us. But we don't have any specific comments on any sort of organized sectors.

I think we have 1 more question in the back in the middle.

Michael Cho from JPMorgan. I just wanted to follow up on Verafin, Brendan. Clearly, there's plenty of opportunity ahead as you move upmarket and land and expand there as well. But the proprietary data is clearly a core value proposition or that data network is the core -- one of the core value propositions of Verafin. So I guess in the context of -- and I think -- Adena, you mentioned the comp set as info services, right? And so in the context of that core value proposition from Verafin, are there thoughts or are there considerations in terms of looking further ahead to be able to monetize that proprietary data set that Verafin captures today?

I would just say that we are focused on trying to solve the problem of financial crime. So as we see use cases within that realm of trying to protect all the world's financial interactions, that's the places where we think that, that value -- that data is most valuable. We've only used today as an example of payments fraud, using that data to be able to risk rate where money is going to or coming from outside of the financial institution. But we know, for example, in the check fraud problem here in the U.S., we've also seen great utility in that shared data set in terms of being able to identify check fraud, which is a growing problem here within the U.S. There are use cases within the AML landscape as well when we think about pure-profiling across institutions. So we've only illustrated today kind of in our story that land and expand from a payments fraud perspective, but across financial crime, there's a number of use cases where that data is very powerful in allowing us to build out a unique solution to those things that we showed on that grid.

Any more questions in the room?

Okay. Well, thank you all very much. We really appreciate the time that you spend with us. We now have the ability for you to see some of our products. And then we have product demos, which will be fun. We call it [ Innovation Alley ]. So you can kind of touch and feel some of the other products that we have, while we also enjoy lunch together. You should have your table number...

We're leaving open, right?

No.

Yes. So you have a table number. I would just say, though, we have table numbers. Just come and make sure that you settle yourselves, but then also take -- feel free to walk around and talk to people. Thank you very much. Thanks so much for coming.