Summary of Nasdaq Conference Call Company Overview - **Company**: Nasdaq - **Industry**: Financial Technology and Market Services - **CFO**: Sarah Youngwood Key Points Company Transition and Vision - Nasdaq is transitioning from being perceived solely as an equities exchange to a technology platform company, with approximately 80% of revenue now coming from solutions revenue [3][4] - The company has achieved a Rule of 60-plus business model, with revenue growth from $2.2 billion in 2017 to higher EBITDA levels today, indicating strong financial performance [3][4] Financial Performance - Nasdaq reported double-digit revenue growth for three consecutive quarters, with a 9% Annual Recurring Revenue (ARR) growth in each quarter [3][11] - The company has successfully deleveraged its financials to 3.2 times ahead of schedule, aiming for 3.0 by year-end [8] Strategic Pillars 1. **Architecting Modern Markets**: Operating 135 markets, with 19 owned by Nasdaq, and providing software solutions for market operations [4] 2. **Powering Innovation**: Managing $800 billion in Assets Under Management (AUM) through various indexes, significantly up from $100 billion in 2017 [5] 3. **Building Trust**: Investing in regulatory and compliance software to enhance trust in financial systems [5] Fintech Segment - The fintech segment, including acquisitions like Adenza and Verafin, has been a focus area, with strong performance in cross-selling initiatives [7][9] - Nasdaq aims for $100 million in cross-sells by year-end 2027, with 15% of the current pipeline attributed to cross-sell opportunities [9][10] Regulatory Environment - AxiomSL, a key regulatory software, is used by major banks for compliance, and the company is optimistic about regulatory simplifications rather than deregulation [15][16] - The Basel III Endgame is anticipated to impact the regulatory landscape positively for banks, which in turn benefits Nasdaq [16] Capital Markets and Trading - Nasdaq is positioned to benefit from trends in tokenization and blockchain, providing necessary infrastructure for these changes [21][22] - The trading business remains a significant revenue contributor, with a focus on maintaining high volumes despite fluctuations in market volatility [34][36] Listings and IPO Market - The IPO market is showing signs of improvement, with $6 billion in executed deals last quarter and a strong pipeline for future listings [24][26] - Nasdaq expects a gradual revenue impact from IPOs, as these typically amortize over three years [27] Workflow and Insights Business - The workflow and insights segment has been slower in growth, but investments are being made to enhance performance [28][30] Index Business - Nasdaq's index business has seen double-digit growth, with a significant portion attributed to new products developed in the last five years [31][32] Expense Management and Capital Allocation - Nasdaq maintains a balance between top-line growth and expense management, leveraging free cash flow for organic investments and shareholder returns [38][40] - The company has a history of M&A but is currently focused on organic growth, with $2 billion in free cash flow available for strategic initiatives [41][42] Conclusion - Nasdaq is well-positioned for future growth through its technology platform strategy, strong financial performance, and proactive engagement in regulatory and market trends. The company is focused on leveraging its strengths in fintech, capital markets, and listings to drive long-term value for shareholders [3][4][5][41]

Summary of Nasdaq Conference Call Company Overview - **Company**: Nasdaq (NasdaqGS:NDAQ) - **Date**: November 19, 2025 - **Speaker**: Sarah, CFO of Nasdaq Key Industry Insights Generative AI (Gen AI) Impact - Nasdaq has been preparing for Gen AI for over a decade, having invested in cloud and AI technologies since 2014 and 2015 respectively [6][10] - The company emphasizes the importance of contributory data, which is unique and not easily replicable, as a competitive advantage for Gen AI applications [6][7] - Examples of contributory data include: - **Verafin**: Over $10 trillion in total assets from 2,700 banks, developed over 15 years [7] - **eVestment**: Utilized by allocators for around 89,000 strategies [7] - Gen AI applications are expected to enhance efficiency in compliance and fraud detection for banks, potentially reducing the need for human intervention in 80% of sanctions processes [8][9] Financial Performance and Growth - Nasdaq has seen a significant increase in enterprise signings for Verafin, with three times the amount of signings in the current year compared to previous periods [13] - The average contract value (ACV) of signings has doubled, indicating strong demand [13] - The cross-sell pipeline remains steady at approximately 15%, with ongoing efforts to expand into new markets, including Europe [13][14] Capital Market Technology - Nasdaq reported a 13% growth in capital market technology in Q3, driven by advancements in Gen AI across various business segments [15] - The company operates about 20 exchanges across the Nordics and the U.S., benefiting from new entrants in the digital space [19] Regulatory Technology (Reg Tech) - Nasdaq anticipates the implementation of smart regulation, which will provide clarity for clients and enhance the adoption of regulatory solutions [22][23] - The company has a strong international presence with coverage in 55 countries and 110 regulators, making it difficult for competitors to replicate [23] Data Business - Nasdaq's data business is divided into regulated data and proprietary data, with significant growth in both areas [36][37] - The company is expanding its data offerings to include local stocks from the Nordics and alpha-generating datasets for hedge funds [37][38] Tokenized Securities - Nasdaq has proposed a framework for tokenized securities that aims to enhance liquidity while maintaining investor protections [39][40] - The proposal allows for settlement options in both traditional and tokenized forms, potentially improving efficiency in capital markets [40] Cost Synergies and Expense Management - Nasdaq has exceeded its synergy guidance, achieving approximately $150 million in cost efficiencies year-to-date [41] - The company is focused on maintaining a balance between expense growth and revenue growth, with a specific emphasis on leveraging Gen AI for operational efficiencies [42] Capital Allocation Strategy - Nasdaq is prioritizing organic growth and maintaining a progressive dividend policy while considering share repurchases and debt management [45][46] - The company remains open to potential bolt-on acquisitions but emphasizes organic investments as the primary focus [46] Additional Insights - Nasdaq's brand recognition as a top global brand enhances its listings franchise, contributing to its market position [28][29] - The index business has grown significantly, with an increase in assets under management (AUM) from $100 billion in 2017 to $800 billion [30][32] This summary encapsulates the key points discussed during the Nasdaq conference call, highlighting the company's strategic focus on technology, growth, and market positioning.

Summary of Nasdaq Conference Call Company Overview - **Company**: Nasdaq, Inc. (NasdaqGS:NDAQ) - **Date of Conference**: November 18, 2025 - **Participants**: Michael Cho (Equity Analyst, JPMorgan), Sarah Youngwood (CFO, Nasdaq) Key Points Industry and Market Dynamics - Nasdaq has observed a strong recovery in equity markets and listings following a shutdown, indicating a productive year in 2025 despite challenges [7][15] - The company has a robust pipeline for IPOs and capital raises, with a strong outlook for 2026 [12][7] - Nasdaq's capital access platforms have performed well, contributing positively to the overall business [8] Capital Markets and Listings - There is ongoing activity planned for the remainder of 2025, with a strong pipeline for 2026, although not all issuers are looking to list immediately [12] - The dual share class structure and E-ETFs are emerging trends, with Nasdaq well-positioned to benefit from potential approvals in the coming years [21][23] Data Business Performance - Nasdaq has increased its expectations for the full year due to strong performance in data and listings [30] - The company is leveraging its global franchise to attract investors interested in U.S. markets, which are viewed as the deepest and widest capital markets [30] - Nasdaq is recognized as a gold standard for data, benefiting from trends in retail trading and globalization [31] Private Markets and Strategic Divestments - Nasdaq has divested from Solovis due to a lack of synergies with its core investment business, focusing instead on areas with greater potential for innovation and shareholder value [43][44] - The company is expanding its private market data offerings, including partnerships to enhance its data ecosystem [52] Verafin and Fraud Detection - Verafin is experiencing growth driven by tier one and tier two clients, with a focus on integrating behavioral data from BioCatch to enhance fraud detection capabilities [60][81] - The partnership with BioCatch aims to combine transactional and behavioral data, providing significant value to clients [82] Financial Outlook and Capital Allocation - Nasdaq generates approximately $2 billion in cash flow annually, with a focus on organic growth and a balanced approach to capital allocation, including dividends and share repurchases [97][99] - The company aims to maintain a leverage ratio of around three times by the end of the year, indicating a strong financial position [99] Regulatory Environment - Nasdaq does not perceive significant regulatory threats in financial crime management, viewing regulatory developments as opportunities for growth [77][78] Conclusion - Nasdaq is well-positioned for future growth with a strong pipeline in listings, a robust data business, and strategic partnerships enhancing its offerings in fraud detection and private markets. The company maintains a balanced approach to capital allocation while focusing on organic growth opportunities.