Nasdaq Inc at JPMorgan Ultimate Services Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Cho - JPMorgan - Analyst : So Adena, yeah, I'll just kick off, big picture. You've been with Nasdaq 30-plus years, and I think you're entering your ninth year of CEO tenure. And so again, you've seen a lot. You've been through a lot, multiple cycles, multiple administrations. Clearly, Nasdaq is on this strategic journey over the last number of years and kind of a business mix shift and really changing the way you deliver value to clients. And I think you've highlighted a few key pillars that kind of ground your strategic guidance or trajectory ahead, right? And so I think it's liquidity, transparency, and integrity. So I guess if you think about those pillars and where the most opportunity lies for Nasdaq, again, been on a shift for a number of years and you're guided by these pillars. Like can you kind of talk through the Nasdaq story in the eyes of these pillars and where you see the most opportunity ahead?

Question: Michael Cho - JPMorgan - Analyst : Wonderful. Okay. And I'm going to -- I promise to dig into each of the businesses and segments. But before we even go there, I mean, look, we had the election last week. We were just talking about this. And so look, there's a lot of conjecture around -- I'm not going to ask you how many IPOs or how much M&A. But from a regulatory or policy perspective, with the new administration, Republican-led Congress and a number of kind of other factors at play, clearly, there's a -- I don't want to call it, maybe an expectation or some perspective less -- or changes in regulation and policy ahead. And so I guess as you look at your businesses that you kind of just talked through now, I mean, are there any areas or potential areas that you're just kind of keeping an eye on that could have some development as it relates to Nasdaq? And again, your business kind of touches a lot of different areas. So I'm just kind of curious if there are areas that you are just keeping an eye on as potential changes.

Question: Michael Cho - JPMorgan - Analyst : Great. You talked about this maybe growth flywheel. I don't think you said that, but this kind of growth flywheel that may -- or that occurs as capital markets activity picks up. And so maybe you could kind of flesh that out a little bit more in terms of how that actually happens from an operational perspective, what you've seen over the number of years you've been at Nasdaq? And maybe talk about any lags in time or kind of timing of how and the magnitude of how much that flywheel kind of effect as it happens.

Question: Michael Cho - JPMorgan - Analyst : Okay. Wonderful. Before I move on, just on capital access. I mean, as you said, over the last maybe year or two, in a depressed capital markets activity environment, I mean, Nasdaq has cited some elongated sales cycles in some of its products, as you just mentioned now. I mean, do you think -- again, this is kind of the moment where everything kind of comes back into -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 7:30PM, NDAQ.OQ - Nasdaq Inc at JPMorgan Ultimate Services Investor Conference

Question: Michael Cho - JPMorgan - Analyst : Okay. Great. Let's go to everybody's other favorite topic, Axiom and Calypso. So you owned or closed the transaction, I guess, a little over a year now, year into integration, ARR continues at solid double-digit levels. As you progress through this integration period, I mean, even over the last year and prospectively ahead, I mean, what are you hearing from clients in terms of what they like, what they don't like and areas maybe where you think there's more opportunity across that set of clients?

Question: Michael Cho - JPMorgan - Analyst : Wonderful. I'm going to -- I'll touch on Verafin anti-financial crime in a second. But you kind of talked about bringing a number of teams together, particularly within fintech to ultimately drive kind of greater value, greater products into clients. And so One Nasdaq is something you've frequently talked about, and this is kind of part of when you gave some examples here. But I mean, can you kind of flesh out in day-to-day practice, what does One Nasdaq look like as you execute go-to-market with some of these newer initiatives to ultimately increase market share in the market?

Question: Michael Cho - JPMorgan - Analyst : Okay. Great. I was going to go to Verafin. You mentioned AI. Let me just do that while we're on the topic. So you mentioned GenAI. You have a number of products out there, and I assume plenty more behind it. Like you said, Nasdaq operates in kind of three key segments, but a lot of businesses even within those segments, right? And so when you think about Nasdaq's approach to GenAI and REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 7:30PM, NDAQ.OQ - Nasdaq Inc at JPMorgan Ultimate Services Investor Conference product development and areas of focus, I mean, is there a guiding principle or strategy behind how you approach and allocate resources across these different businesses for potential behind this?

Question: Michael Cho - JPMorgan - Analyst : Wonderful. And you said you kind of approached from a financial perspective, there's an ROI attached to the investments that you make. I mean, do you think there's a real kind of monetization opportunity for AI products?

Question: Michael Cho - JPMorgan - Analyst : Okay. If I just take a step back just on this topic, I mean -- and it's really not Nasdaq-specific, but just kind of your Nasdaq's place in the world and Nasdaq's place in serving large financial institutions and financial services companies around the world. When you think about GenAI and adoption of AI, what are you kind of hearing from clients? Or what do you think in terms of the kind of the largest hurdles for more adoption of this from other financial services companies?

Question: Michael Cho - JPMorgan - Analyst : Okay. We have a little bit more than 5 minutes left. I want to make sure there's question time. So if there's -- please just wait for a mic. Unidentified Participant Adena, what are the incremental costs of going from being a private company to a public company in terms of regulatory, incremental D&O cost, compliance. Is that $20 million for a company annually? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 7:30PM, NDAQ.OQ - Nasdaq Inc at JPMorgan Ultimate Services Investor Conference

Question: Michael Cho - JPMorgan - Analyst : Verafin adds something around 50 to 100 new clients every single quarter, and it's been doing that for a while now. And so the natural question we get a lot, at least from our seat, and I assume you get it too is if you think about the SMB market, there's probably a saturation point at some point, and it doesn't seem that we're anywhere near that yet. I'm just curious on your take in terms of the penetration left ahead in the SMB market. And even if we get there, like will that even matter for Verafin at that point? And maybe the answer is no, we have Tier 1s in international. But I'm just kind of curious from your seat, if you think about the SMB market that Verafin is penetrating, like how do you think about saturation?

Question: Michael Cho - JPMorgan - Analyst : Wonderful. Back to the audience, any final Q&A before we wrap up here? Okay. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 7:30PM, NDAQ.OQ - Nasdaq Inc at JPMorgan Ultimate Services Investor Conference

Question: Michael Cho - JPMorgan - Analyst : Thank you so much.