Nasdaq Q1 2023 Earnings Call Transcript

Quartr
Provided by Quartr
April 19, 2023

There are 12 speakers on the call.

Operator

Good day and thank you for standing by. Welcome to the Nasdaq First Quarter 2023 Results Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. You will then hear an automated message advising your hand is raised.

Operator

Please be advised that today's conference is being recorded. I would now like to hand the conference over to Atul Garrett, Senior Vice President, Investor Relations. Please go ahead.

Speaker 1

Good morning, everyone, and thank you for joining us today to discuss Nasdaq's Q1 2023 financial results. On the line are Adena Friedman, Our Chair and Chief Executive Officer Ann Dennison, our Chief Financial Officer John Zekka, our Chief Legal, Risk and Regulatory Officer and other members of the management team. As the prepared remarks, we will open up the line to Q and A. The press release and presentation are on our website. We intend to use the website as a means of I would like to remind you that certain statements in this presentation and during Q and A may relate to future events and expectations and as such constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Speaker 1

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 press release and in periodic reports filed with the SEC. I will now turn the call over to Adena.

Speaker 2

Thank you, Ato, and good morning, everyone. Thanks for joining us. Before I start, I would like to welcome Arthur Garrett to the NASDAQ team as our new Investor Relations Officer. I know he's looking forward to meeting each of you very soon. I will now turn to my remarks today, which will focus on Nasdaq's Q1 performance and the solid progress we're making to deliver on our strategic objectives.

Speaker 2

I will then turn the call over to Ann for a review of our financial results. Let's begin with the current market landscape. NASDAQ continued to perform well in what was clearly a very dynamic operating environment with a shock to the banking sector happening amid an already uncertain macro backdrop. During this challenging period, we delivered solid financial performance, while demonstrating operating and strategic momentum across each of our divisions. We achieved a new milestone for our anti financial crime division with the signing in April of our 1st Tier 1 client with over $1,000,000,000,000 in assets For our fraud solutions, including the comprehensive fraud detection capabilities across wires, ACH and checks, as well as case management and reporting functionality.

Speaker 2

We maintained our leading position in U. S. Cash equities and equity derivatives trading, while seeing strong demand for both our ESG services and our SaaS based market technology solutions. Overall, the current uncertain financial backdrop highlights the value of our diverse platform of mission critical solutions. In the Q1, we also saw a generational technology breakthrough with the emergence of new artificial intelligence tools called generative AI.

Speaker 2

While the debate surrounding use cases for generative AI needs time to evolve, it is clear to us that companies that have invested in modern technologies, including cloud architecture and deployments, modern APIs and machine learning are poised to take advantage of this new era of technological advancement. At Nasdaq, we've been focused on investments to modernize our technology across our businesses, and therefore, we're well positioned to Against this evolving economic and technological backdrop, Our team remains hyper focused on delivering for our clients. Our results underscore our ability to navigate successfully amid a dynamic market environment and to deliver on our long term commitment to provide world leading platforms that improve the liquidity, transparency and integrity of the global economy. Now let's turn to our results. I'm very pleased to report Nasdaq's solid financial performance for the Q1 of 2023.

Speaker 2

We achieved $914,000,000 in net revenues, an increase of 2% compared to the prior year period and an increase of 4% on an organic basis, excluding the impacts of changes in FX and an acquisition divestiture. Revenues across our solutions businesses were $646,000,000 up 4% from the prior year period, driven by organic growth of 5%, partially offset by the impact of changes in FX. Excluding the index business, which declined by 10% due to a continued weak beta backdrop, revenues in our solutions businesses increased 8% organically Our total annualized recurring revenue or ARR increased 7% to $2,000,000,000 Annualized SaaS revenues totaled $729,000,000 for the Q1, which represents an annual growth rate of 11%. Our SaaS revenues now comprise 36% of total company ARR. Across each of our divisions, we delivered well for our clients during the quarter.

Speaker 2

In our Capital Access Platforms division, we delivered $416,000,000 in total revenue in the Q1. Despite growth In data as well as in workflow and insights, headwinds across our listings and Index businesses resulted in flat organic revenue for Capital Access platforms year over year. Index experienced a 10% revenue decline and listings was stable year over year. While our index businesses Our index business continues to show year over year declines due to higher market levels at the start of last year. During the Q1, we did a 5% improvement in average AUM from the Q4 of 2022.

Speaker 2

If the markets continue to demonstrate some level of recovery from last year, We should experience an improving year over year index performance as we continue through 2023. Data and Listing Services revenues grew 4% organically, driven largely by higher international demand for our proprietary data during the period. Our workflow and insights business Revenue grew 5% organically, which reflects continued demand for our IR, ESG and analytic solutions as clients navigate a dynamic and challenging market environment. Turning next to our Market Platforms division, We delivered $413,000,000 in total revenues during the Q1, a 6% organic increase from prior year period. Amid a volatile capital markets environment, our core trading services business experienced strong performance in North American markets where we saw double digit revenue growth, partially offset by a decline in our European markets revenues, primarily reflecting lower value traded and cash equities due to market declines and a softer volume environment.

Speaker 2

In the U. S, we continue to provide our clients with premier trading experience, while optimizing the revenue and capture mix for both In Marketplace Technology, we delivered 11% revenue growth, driven by strong results in both Trade Management Services and Market Technology. During the quarter, we signed a marketplace services platform agreement With an innovative carbon trading platform in sorry, carbon trading marketplace in Latin America as well as a new European risk modeling customer. We also signed a multi year extension and expansion with a Tier 1 bank for our trading platform. Finally, turning to our Anti Financial Crime division.

Speaker 2

We delivered $84,000,000 in total revenue in the Q1, an 18% organic increase from the prior year period and a 16% increase excluding the impact of the deferred revenue write down in the Q1 of 2022. Revenues in our fraud detection and anti money laundering or what we call our Framel solutions grew 30% compared to the Q1 of 2022 or 27% excluding the impact of the deferred revenue write down. The overall anti financial crime business saw continued growth with 42 new ASC clients during the period. Our first Financial performance also illustrates the progress we've made to capitalize on certain growth opportunities that are aligned with 3 key trends that we believe are shaping the financial system. First, the modernization of markets, where we can deliver innovation that powers the world's economies and enhances the underlying market infrastructure.

Speaker 2

2nd, the development of the ESG ecosystem, where we help companies and investors successfully navigate increasingly complex reporting frameworks, access more seamless routes to capital and achieve their net zero or sustainability objectives. And third, the increasing need for advanced anti financial crime technology, where we can enhance the integrity of the financial system through emerging technologies, including cloud and AI, coupled with end to end workflow solutions for our clients. In this regard, I'd like to provide 2 highlights for the quarter. First, our focus on markets continues to deliver innovation that enhances the liquidity and the underlying market infrastructure that powers the world's economies. From the successful migration of Nasdaq MRX, which is one of our 6 options markets to the cloud infrastructure in the Q4 of last year in partnership with AWS, We announced during the Q1 our plans to migrate our 2nd options market to the AWS Edge Cloud by the end of 2023.

Speaker 2

2nd, as financial institutions make investments in technologies to detect and fight financial crime, in early April, we are very pleased to sign our first Global Tier 1 client with over $1,000,000,000,000 in assets to our fraud solution, including comprehensive fraud detection capabilities across wires, ACH and checks, as well as case management and regulatory reporting functionality. Additionally, we signed another Tier 2 client to our enterprise anti money laundering solution during the period. These signings further demonstrate our ability to displace legacy providers and manual processes through our cloud based and market proven solutions. As we look ahead, I want to take a moment here to discuss in more detail the breakthrough developments in the field of artificial intelligence, which have captivated businesses across all industries concerning its applicability and impact. As a result of our years of investment in our cloud architected market solution And SaaS applications, coupled with our recent acquisitions of advanced cloud based investment analytics and anti financial crime solutions, I believe Nasdaq is uniquely positioned within our sector to play a leading role with this technology in the future through the responsible deployment of AI to drive meaningful impact to our business, products and clients.

Speaker 2

To date, we've been very intentional in migrating Critical workloads and capabilities into a cloud environment with modern APIs to support client connectivity and functionality. We've also built unique datasets across various areas of our business. Both are foundational to our ability to leverage this generational shift in the technology. While we're just beginning the process of evaluating specific ideas for the use of generative AI in our products and across our business operations, We see compelling opportunities to lever broader AI models, including deep reinforcement learning, predictive control and computer vision across our business divisions to support Our strategic efforts to enhance the liquidity, transparency and integrity of the financial ecosystem. This is already happening in various elements of our business today.

Speaker 2

For example, in our anti financial crime business, Verifin has integrated AI and machine learning into their solutions and capabilities since their founding 20 years ago. The combination of the advanced datasets combined with the self learning capabilities of the AI machine learning models is a key differentiator for the product. This improves the efficiency in the banking industry's daily compliance processes and achieves a step change in their ability to detect and stop money laundering, fraud and market abuse across their networks as well as to reduce false positives. In our Market Platforms division, we're in advanced stages of new product developments that incorporate AI, including new dynamic order types that improve our clients' fill rates while minimizing market impact. In fact, we have submitted for regulatory approval our 1st AI based market order type, which is context aware, meaning that it is designed to incorporate awareness of market conditions on a real time basis.

Speaker 2

As we seek out more ways to leverage AI across other parts of our business, We intend to take a principled approach to leveraging generative AI for the right purpose. Our data scientists and agile development teams will continue their research and development responsibly, so that our regulated and unregulated businesses can deploy this technology to create and maintain fairness across markets and develop more advanced solutions to fight crime. We look forward to updating you on our progress with these opportunities in the quarters to come as we continue our journey to become the trusted fabric of the global financial system. Before I turn the call over to Ann, I'd like to offer some final comments on the operating environment as we move further into 2023. When we gathered in January for our Q4 results call, we discussed some of the impacts and market driven headwinds that we were beginning to see related to the market environment and the uncertainty in the global economy.

Speaker 2

As we progress through the Q1, as we expected, we saw a decrease in the total number of operating company IPOs versus the prior year period as companies put their IPO plans on pause while investors closely monitored interest rates and correlated inflation figures. Despite the slower start to the year, we maintained our track record for winning new operating company listings across our U. S. And European markets in the Q1. In the U.

Speaker 2

S, we welcomed 30 new operating company IPOs during the period for a 91% win rate, bringing 7 of the top 10 IPOs by proceeds raised. In addition, there's a significant backlog of operating companies in the pipeline with 147 active operating companies on file with the SEC to go public and committed to Which is a 10% increase versus the Q4 of 2022 and a 25% increase versus the prior year period. Our team continues to be in close contact with these companies and we believe that we are well positioned to capture future listing activity once the IPO window reopens. Beyond listings, we're still seeing elongated sales cycles in our workflow and insights businesses. As we previously observed, while overall interest in client demand for our workflow and insight solutions remains healthy, the process for some clients is taking longer as they escalate buying decisions through more levels of approval.

Speaker 2

Demand for our strategic focus areas, including our Anti Financial Crime Solutions, our ESG Solutions for Corporates and our modern market solutions for established exchanges continues to be strong and largely unaffected by the market environment at this stage. Overall, we're very fortunate to have deep and trusted relationships with our clients, who rely on us even more during complex operating environments. For example, during periods of heightened volatility, pensions and endowments often need to make swift asset allocation decisions to manage their portfolios, which can increase their reliance on our analytics solutions. Similarly, for our public company clients, these cycles can drive demand for our Investor Relations solutions as company leaders As the global markets demonstrate sustained volatility, our market technology clients are focused on modernizing their market infrastructure to improve their agility in addressing client needs, while improving also improving the resiliency and scalability of their markets. And within our Fanta Financial Crime business, the disruption caused by the banking crisis has resulted in clients moving deposits at unprecedented rates.

Speaker 2

Because of our cloud based consortium data models, our fraud and AML solutions are instrumental in helping banks monitor payments and behavioral changes. These patterns underscore how our diverse platform of mission critical solutions allows us to maintain our competitive strength through dynamic periods of uncertainty like we've experienced during the quarter. With our continued client engagement, coupled with the long term investments we're making in our future, We remain confident in our medium term revenue growth outlook for our solutions businesses. And with that, I will now turn it over turn the call over to Ann to review the financial details.

Speaker 3

Thank you, Adena, and good morning, everyone. I also want to extend a warm welcome to Ado Garrett as Nasdaq's Investor Relations Officer. My commentary will primarily focus on our non GAAP results, and all comparisons will be to the prior year period unless otherwise noted. Reconciliations of U. S.

Speaker 3

GAAP to non GAAP results can be found in our press release as well as in a file located in the Financial section of our Investor Relations website at ir.nasdaq.com. I will start by reviewing Q1 2023 performance beginning on Slide 10 of Presentation. The 2% increase in reported net revenue of $914,000,000 is the net result of Organic growth of 4%, including a 5% organic increase in the Solutions businesses and a 3% organic increase in Trading Services, partially offset by a 2% net negative impact from changes in FX rates and acquisitions and divestitures. Moving to operating profit and margins. Non GAAP operating income increased 3%, while the non GAAP operating margin of 52% unchanged from the prior year period.

Speaker 3

Non GAAP net income attributable to Nasdaq was $339,000,000 or $0.69 per diluted share compared to $329,000,000 or $0.66 per diluted share in the prior year period. Turning to Slide 11. As Adena mentioned earlier, ARR totaled $2,000,000,000 an increase of 7% from the prior year period, while annualized SaaS revenues totaled $729,000,000 an increase of 11%. I will now review quarterly division results on Slides 12 through 14. Starting with the Market Platforms division, Revenues increased $17,000,000 or 4%, with an organic increase of 6%.

Speaker 3

Trading Services organic growth totaled 3% with the increase primarily due to higher U. S. Cash equity capture rate and higher U. S. Equity derivatives volumes and capture rates, partially offset by lower European cash equities revenues due to lower industry volumes and market share and lower U.

Speaker 3

S. Tape plan revenues due to lower collections from underreported usage. In Marketplace Technology, we delivered 11% revenue growth, driven by strong results in both Trade Management Services End Market Technology, which benefited from testing revenue and a large project delivery during the quarter. ARR totaled $510,000,000 an increase of 8% compared to the prior year period. The division operating margin of 55% in the Q1 2023 reflects a 1 percentage point increase from the prior year period.

Speaker 3

Capital Access Platforms revenues decreased $3,000,000 or 1%, primarily due to the negative impact from changes in FX rates, with organic revenue growth of $1,000,000 Growth in the division was mixed for the quarter with a decline in index revenues significantly impacting The overall growth of the division. Specifically, index revenue declined by 10% compared to the Q1 of 2022, primarily driven by an 11% decline in average AUM from near record levels last year. Transactional licensing revenues were flat As a 20% decline in trading volumes and futures contracts linked to the Nasdaq 100 Index was offset by Higher pricing per contract and favorable mix. Additionally, we saw net inflows over the trailing 12 months of $23,000,000,000 In listings, we maintained our leadership position with a 91% IPO win rate for U. S.

Speaker 3

Operating companies. The NASDAQ stock market welcomes 7 of the 10 largest U. S. Operating company IPOs by capital raised in the Q1 of 2023, including NEXTracker, which raised over $600,000,000 in proceeds as well as the spin switch of GE Healthcare. In data, we have seen an increase in proprietary data revenues driven largely by higher international demand.

Speaker 3

Workflow and Insights revenue increased 5% organically compared to the Q1 of 2022, reflecting growth in our ESG, IR and Analytics ARR for Capital Access Platforms totaled $1,200,000,000 an increase of 5% compared to the prior year period. The division operating margin was 54% in the Q1 of 2023, a decrease of 1 percentage point from the prior year period. Anti financial crime revenue increased $12,000,000 or 17% compared to the Q1 of 2022. Organic growth was 18% in the period or 16% when excluding the impact of the deferred revenue write down of $1,000,000 in the prior year period. The growth reflects healthy demand for fraud detection and anti money laundering solutions as well as our SaaS based surveillance solutions.

Speaker 3

Specifically, our fraud detection and AML solutions revenues grew 27% compared to the Q1 of 2022, excluding the impact of the deferred revenue write down. Surveillance revenues grew modestly compared to the Q1 of 2022 as growth in subscription revenues was partially offset by lower professional fees. ARR for anti financial crime totaled $321,000,000 an increase of 15% compared to the prior year period. Signed ARR, which also includes ARR for new contracts signed, and not yet commenced, totaled $354,000,000 an increase of 20% versus the prior year period. The Anti Financial Crime Division operating margin was 27% in the Q1 of 2023 versus 21% in the prior year period.

Speaker 3

Turning to Page 15 to review both expenses and guidance. Non GAAP operating expenses $8,000,000 to $436,000,000 The increase primarily reflects a $20,000,000 organic increase, partially offset by a $13,000,000 decrease from the impact of changes in FX expense increase is primarily driven by higher compensation and benefits expense and computer operations and data expense as we invest in our businesses. The higher compensation largely reflects our 2022 investment in new employees to drive long term growth. Compared to the Q4 of 2022, which which featured higher sales activity to finish the year. Expenses declined primarily due to lower marketing, travel and professional services expense.

Speaker 3

During the quarter, we completed the first phase of a review of our real estate and facility capacity requirements due to our new and evolving work models. We reduced our footprint and recorded an impairment charge of $17,000,000 related to our lease assets and related leasehold improvements. We are updating our 2023 non GAAP operating expense guidance to a range of $1,780,000,000 to $1,840,000,000 The midpoint of the expense guidance range is unchanged and still represents An increase of just over 5%, including 1% related to our digital asset strategy. The increase primarily reflects our continued investments to drive growth across ESG, anti financial crime and market modernization. The 2nd quarter We'll reflect our annual merit adjustments and equity grants, and therefore, we expect expenses to increase about $20,000,000 from the Q1 of 2023.

Speaker 3

Assuming stable performance and exchange rates, we currently expect 2023 expenses Turning to Slide 16. Debt decreased by $290,000,000 versus 4Q 2022, primarily due to a net pay down of $317,000,000 of commercial paper, partially offset by a $26,000,000 increase in Eurobond's book value caused by a stronger euro. Our total debt to trailing 12 months non GAAP EBITDA ratio ended the period at 2.6 times, down from 2 point 7 times in the Q4 of 2022 and there are no long term debt maturities until 2026. With our strong balance sheet and cash flow generation, Including $1,500,000,000 of free cash flow on a trailing 12 month basis, we continue to be well positioned to support growth and a variety of macroeconomic backdrops. During the Q1 of 2023, the company paid Common stock dividends in the aggregate of $98,000,000 and repurchased shares for $159,000,000 The repurchases complete our objective to offset employee share dilution for the year.

Speaker 3

As of March 31, 2023, There was an aggregate $491,000,000 remaining under the Board authorized share repurchase program. Additionally, We are announcing today a 10% increase in the quarterly dividend to $0.22 per share. In closing today, Nasdaq's 1st quarter results reflect a continuation of the company's ability to consistently perform well across a wide range of operating environments. Thank you for your time, and I will turn it back over to the operator for Q and A.

Operator

Thank you. We ask that you keep your questions to no more than one, but please feel free to go back into the queue And I share our first question comes from the line of Rich Repetto from Piper Sandler. Please go ahead.

Speaker 1

Yes. Good morning, Adena, and good morning, Anne. I guess, thank you, Adena, for giving us sort of A lot of info on the outlook of the business in the prepared remarks. But I guess, if I was to zone in on the outlook In sort of the sales cycle businesses, the anti financial crime and market infrastructure, You talked about the in AFC that there was a lot of deposit movement, But would that is that going to the deposit movement appeared to go to the large banks. How are you doing and what's the outlook for the Tier 2 Thanks.

Speaker 1

And just a little bit more color, I guess, on the sales cycle with market infrastructure. Has that been impacted at all, I guess, by market volatility?

Speaker 2

Sure. Thanks, Rich. So with regard to our ASC solutions, we generally are seeing a continuation of A normal sales cycle environment. As I said, we did sign 42 new clients into our AOC business in the Q1. And we do a lot of work across actually all of our solutions to look at, what is our normal time to close?

Speaker 2

How do we engage with the clients? What does our pipeline look like? And as we've been looking Across ASC, Market Tech, and as well as other parts of our solutions segments, I think that we're finding a relatively normalized environment. Where we are seeing more elongated sales cycles are in our workflow and insights businesses, which really cover kind of our IR governance and analytics businesses. But within AFC, we actually have a really healthy pipeline of opportunities in both Tier 2 and Tier 1 banks.

Speaker 2

We're really pleased to sign our 1st Tier 1 bank in April and we signed another Tier 2 bank, as we mentioned, in March. And I think that, what we're finding is that we can really prove the value of our solutions very easily when we do proofs of concepts with our clients. So in both cases with the Tier 2 client, we did a proof of concept in our AML capabilities and in the Tier 1 client, we did a proof of concept with our fraud capabilities. And in both cases, they saw very significant value improvement in terms of reducing false positives and improving their ability to find real Bad actors, whether it's fraud or AML. And so I think that because we have this really strong return on investment thesis that we can prove out, It makes it easier for the banks to make the buying decision in frankly any economic environment.

Speaker 2

And so therefore, we continue to see really strong demand there. And the same within our trade surveillance business as well. We did have certain revenues in the Q1 of last year that helped by the revenue, so the growth year over year wasn't as strong, but the overall demand for surveillance clients also continues to be quite healthy. And in fact, we've been actually focused on moving down market with our trade surveillance because we're learning from Barreford in that way. And we did sign our 1st Tier 3 bank to our 1st Tier 3 brokerage firm, I should say, to our surveillance solutions in the quarter.

Speaker 2

When it comes to Marketech, we actually see very healthy demand across established exchanges. I think we definitely have seen a change in that demand characteristic For new markets, and we've been reporting on that since the beginning of COVID really, where new markets have not been as much of a growth For us, as we had thought before COVID started, but honestly, the established exchanges, we're seeing really good demand, particularly in post trade. Our post trade infrastructure has been a real focus for market modernization as well as risk management tools for both exchanges and brokers. And that's where we've actually seen a really, really healthy pipeline of opportunity. And we've been able to demonstrate strong growth in Marketech in the Q1.

Speaker 2

Again, we did have some revenues. I think our overall ARR grew 8%, but the business itself grew 11% in the quarter. So We continue to see really healthy demand there.

Speaker 1

Thank you. Thanks.

Operator

Sure. Thank you. And I show our next question comes from the line of Michael Cho from JPMorgan. Please go ahead.

Speaker 4

Hi, good morning, Yatin and Ann. Thanks for taking my question. I just wanted to touch on the AFC I mean, you just talked about kind of still seeing a normal sales cycle in the AFC business, in the Verifin business. But Just curious longer term, again, just kind of given the banking situation in the U. S.

Speaker 4

And just given that most of VerFin's current clients are SMB Bank. I'm just Trying to get a better sense of if you're changing kind of the longer term focus from here. And then meaning, is there going to be an increased focus on Tier 1s and Tier 2s or is that still kind of normal course of business? And then just kind of related to that, just in the quarter, Revenues accelerated in the AFC business, but margins kind of took a step back quarter for quarter. I'm just curious if there's any And maybe you can remind us kind of the interplay margins between the surveillance and barafin businesses.

Speaker 4

Thanks.

Speaker 2

Sure. Well, I'll answer the first question and Anne will also focus on the second one. With regard to the Overall environment with the banks, I think first of all, I would just say we have about 2,500 banks and credit unions that rely on us today, But there are over 5,000 overall banks and credit unions across the U. S. And Canada.

Speaker 2

So we still have lots of opportunity for growth and to find and land new clients. And so even if there are some unfortunate situations with banks As they're managing through a very, really big change in the operating environment, we do feel like we have plenty of opportunity to continue to grow and expand the business. And so far, we have an amazing team that supports the small to medium banks and they're seeing a very normalized environment, both in terms of new sales and in terms of renewals. So, we're not seeing a disruption in the cadence of our business in that regard. And as I mentioned before, we did We had 39 new clients in the Q1 of last year and 42 this year.

Speaker 2

So we're continuing to show some good, some really strong demand characteristics there. But the focus on Tier 1s and Tier 2s, there's a whole team just focused on that. So we've kind of we've done a really nice job of segmenting the team. One team supports the small and medium banks, one team supports the enterprise banks, which are the larger banks. And then we have team obviously who supports surveillance, Etcetera.

Speaker 2

And on the Tier 1 and Tier 2s, as I mentioned, the pipeline is really strong. So we have kind of an equal focus, I would say, on continuing to grow the SMBs while we focus on moving up market. And in terms of the margin quarter over quarter, I don't know if you have any comments, Ann.

Speaker 3

Yes, sure. I mean, If you look at the margins quarter over quarter, there's the timing of how expenses come in. I think the better sort of way to look at it is look at the full year margins. If you look at Full year 2021, we were roughly 28% and full year 2022 is roughly 26%. And you can think about that as sort of how the margins will evolve over the full year for 2023 Consistent with 2022.

Speaker 2

Yes. And I think we've also said that we are really focused in this business on optimizing for growth. And so we want to make sure that we're as we're taking in more revenue, we're reinvesting that revenue to continue to really amplify the growth of the business. So The margin is wonderful, but it's also something where we're really we are focused on making sure that we're investing in our growth there.

Speaker 4

Okay, great. Thank you so much.

Operator

Thank you. And I show our next question comes from the line of Alex Kramm from UBS. Please go ahead.

Speaker 5

Hey, good morning, everyone. Just staying on the Verafin, surprise, surprise. But you mentioned that Tier 1 win, I think, Adena, you gave a lot of detail on the scope already, but maybe you can expand a little bit in terms of How much of the solution that you're providing is I mean, I guess, how much more upsell there potentially is? Like how much of the Potential capabilities, are you selling? Can you give us a little bit of this can you give us some color on the size of this deal?

Speaker 5

And again, how that could grow over time. And then you obviously didn't disclose the win, but what we've seen in the past is once Affirm like you guess like a big win like this, you're using it as a marketing opportunity. So just like, I guess, just how do you think or how have conversations already may be changed now that you finally have one of those big banks because obviously all of them talk to each other. So should that Potentially drive acceleration from here. Thanks.

Speaker 2

Great. Thanks, Alex. So actually, it is interesting to see the opportunity here. So We went in having conversations specifically on fraud detection and they did a POC with us on that. And once they Saw the quality of the outcomes.

Speaker 2

Then they started to say, well, let's look at the rest of the platform. And so they didn't just take the detection capabilities and plug it into their They actually had a collection or they have a collection of smaller platforms and they said, let's actually replace everything we do with fraud With the VeriPen solution, so that means that we have fraud detection across all of their payment types as well as their workloads our workflow solutions. So Our investigations tools, our case management tools, as well as our regulatory reporting tools. So it ended up being a bigger opportunity. But even with that, it was only for the U.

Speaker 2

S. Portion of the bank. So we do have an opportunity over time to move internationally. And they don't actually they're not using any of the AML capabilities that we have. So we also have an ability to continue to expand as they think more broadly about their anti fintime needs to take on more of our capabilities, as we continue to work with them.

Speaker 2

We always have to prove ourselves with them that we are really great, as great As we've been able to show so far, and that we have a smooth implementation and those will be the key proof points, but we're already having conversations about how they can think about A broader use case. And that's actually what's exciting about going into the larger banks, both Tier 1s and Tier 2s is that their needs are very expansive. We're going in with modules that really show like clear ROI. But as we engage with them and they start to see the broader platform, They start to think about how we can they can use us more. And so there is a really good land and expand approach that we can take here.

Speaker 2

And you're right about breaking through the barrier. Getting to that 1st Tier 1 win has been a very important milestone for us Because now that we can prove ourselves there, it will make it easier for other banks to say, okay, I'm not taking a risk here. I'm actually taking a proven solution. And as you said, they do talk to each other. So we do see it as a way to help accelerate other conversations.

Speaker 2

I would just say though that it is It's not something where we have we're going to have them lining up to have every single quarter we're going to have a great Big announcement, but I think that we are starting to have a really good pipeline that will give us more of a regular cadence as we go further. And lastly, in terms of size, We don't disclose that, but I would remind everyone that it is not included in the Q1 signed ARR because it was signed in April. So it will be included in Q2.

Speaker 5

Very good. Thank you.

Speaker 3

Thank you.

Operator

Thank you. And I show our next question comes from the line of Owen Lau from Oppenheimer. Please go ahead. Good morning and thank you for taking my question. I mean, I really want to ask about AFC, but there are lots of questions already.

Operator

But Maybe we can switch gears a little bit to AI. So Adena, you talked about there are many benefits of AI and NASDAQ Leveraging this technology in many different areas. Maybe can you talk please talk about any additional area other than AFC and Maybe modernization of the market, you can further leverage AI. And then I think more importantly, can you also talk about, do we meet

Speaker 2

Sure. It's been a big topic of conversation internally. We've had some fun with ChatCBT internally, by the way, with we said we've had a good time, Like learning about it, but at the same time, it is quite serious in terms of where we see opportunities to leverage the AI across the business. So As I mentioned, we already are leveraging AI and AFC and that's a very known use case for us. We have real opportunities also to bring more of that into our Surveillance capabilities and so that's been a really fun collaboration across Verifin and the surveillance team.

Speaker 2

We also have And I mentioned that we are starting to work with AI in our markets and I would point to a couple of things. First, actually on just managing our market infrastructure. We're using some of the predictive AI tools to be able to make sure that we're managing our doing capacity planning and managing our servers in a really, really dynamic way. And I think that's been really helpful to our infrastructure team, in thinking about just managing infrastructure in general. But also on the markets, and in the markets, we have our AI driven order type, which is called dynamic mellow, midpoint extended life order that we have on file with the SEC.

Speaker 2

So and then we also use machine learning for strike optimization in our options markets already. So that's already a known program in production that helps manage and manage the strikes across the options market because It's kind of a growing pile of strikes and you have to think about which ones are actually being used and optimized. But the other areas where we're just starting To leverage the technology and find use cases is in the what we call in the Capital Access Platforms business. We've been doing some intelligent data scraping for our ESG business to help bring more information to corporates and to provide them more insights into the ESG characteristics of them and their peers. We also have just an incredibly rich data set across all of our insights and workflow tools.

Speaker 2

And so we want to find new ways that we can provide insights to investors and corporates to help them manage their business. So We're just starting to figure out how we can use that there. And then we do already use natural language processing to help our analysts write reports for clients. So that's an area that we've been using it for quite some time. Lastly, on the point of regulation, I think this next generation of AI has as we know, AI is a technology, it's a tool.

Speaker 2

It doesn't have a personality, even though people like to say it does. It's really the people who use the tool that create the personality For good or bad. And we definitely see the opportunity for bad actors to use these tools and they don't have regulators. Criminals are not subject they don't subject themselves at least to regulation. So it's really important that the regulators Make sure that the good actors like NASDAQ and those who are trying to protect the system also have access to the same tools So that we can actually use the most advanced technology available to protect the markets and to protect the financial system.

Speaker 2

And we do think that smart regulation Is appropriate here, but also just, really thinking about it proactively and embracing the technology for the right purposes, I think, It's the right starting point for regulators to use and we're already engaging with regulators and legislators on this topic.

Operator

Got it. Thank you very much. Thank you. Thank you. And I show our next question comes from the line of Michael Cyprys Morgan Stanley, please go ahead.

Speaker 6

Hey, good morning. Thanks for taking the question. Maybe just on the cloud migration and your AWS partnership, I was hoping maybe you can Update us on the progress there moving the markets to the cloud. It sounded like you're looking to move another options market by year end. So if you could just elaborate a bit on that, some of the milestones you're looking at over the next 12 months, 24 months.

Speaker 6

Maybe you could talk about some of the lessons Learn from the journey so far and what sort of benefits you're seeing to revenues and expenses? And if not much so far, what do you anticipate in the coming years?

Speaker 2

Sure. Great. Thanks, Michael. The partnership with AWS is going extremely well and we've been really pleased with Our first market, which is MRx going to the cloud. So what we did experience is a 10% improvement in latency as we moved, MRx to the cloud.

Speaker 2

And so and we can do we can look at that as a direct comparison because we have one of our options markets already on our next gen

Operator

trading platform, which we call Fusion. And then but it's

Speaker 2

on prem. And then we have Which we call Fusion and then but it's on prem. And then we have a second options market in Fusion, but on AWS. And we can see that there's a 10% improvement in latency on the AWS implementation. So really pleased with that.

Speaker 2

But both of those markets as we've moved them onto Fusion and with one of them and into AWS, we are actually seeing Better market share, because of the fact that we have a more deterministic trading experience, and across both of those platforms. And then we so we have seen a growth in market share across those exchanges. And I think that that is highly related to the fact that the technology is as good as it is. And so we are really, really encouraged. So now we're moving our 2nd market, our 3rd market on to Fusion and then And then moving it into the cloud.

Speaker 2

And then we also have a plan over the next several years to continue that progress. It's giving us confidence that We're moving in the right direction and our clients are highly engaged with us. So we feel very good about it. We're not kind of trying to ascribe specific revenue to it, but rather knowing that this market modernization opens up opportunities for as we pointed out, like new order types, new capabilities, as well as a more scalable infrastructure. And over time, we will not have to do server refreshes, right?

Speaker 2

So that will start to show some real cost savings

Operator

Thank you. And our next question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead.

Speaker 7

Great. Thanks for taking my question. Maybe just to zoom in a little bit on the recurring revenue growth Outlooks as we sort of move through the rest of this year into next year in 3 businesses, it sounds like the workflow and Obviously, with the slower sales cycles, it's going to remain well below the medium term target, I think, of high single digit to low double digit. But at the same time, Marketplace Tech is well above that at least year over year in 1Q of that sort of low to mid single digit pace. So Question there is, are we going to or is it your view that we'll be tracking well ahead of that medium target in marketplace tech, Given the momentum you had in 1Q and then similarly for Verifin or anti financial crime, Right now, you're sort of at the lower end of that medium term target.

Speaker 7

But with the Tier 1 and Tier 1 Tier 1 and Tier 2 Implementations, maybe if you could talk about, how that might work its way into the revenue stream this year and including all All the other new business that you're getting in that segment and whether we'll move back into that medium term 18% to 23% target growth rate this year.

Speaker 2

Thank you, Brian. Well, as you know, we don't give specific in year guidance. So, but I can give you some color commentary. I think that when it comes to the Workflow and Insights business, I think that we definitely are seeing, as we've said before, kind of a mixed environment there and There in a longer sales cycle. We are very engaged with clients, but the fact is that they have to go through more gates to get approvals.

Speaker 2

And of course, particularly in our governance area where we do find really good sales opportunities with IPOs, we don't have So that also is hindering some of the growth across governance. But I would also say, we are continuing to manage the pipeline. We're That gives us more opportunity and the sales cycle start to improve there. So we have some hope, but we also have to recognize the fact It is a different environment right now and we're calibrating to that. With regard to the market infrastructure or marketplace tech, We are very happy with the growth that we are demonstrating in the Q1.

Speaker 2

I would mention that there are 2 things that are happening in that business that are creating some opportunities. So I mentioned that 8% overall AR growth in Market Platforms, which really reflects Marketplace Tech, Whereas we had 11% growth in the business. And the 11% that delta really comes from some testing revenue we got in our Trade Management Solutions business And a delivery fee that we got in our Marketech business. So I would kind of calibrate a little bit, on that as you think about the rest of the year. And then the last on AFC, we were every single quarter is going to be a little bit of a different answer, but I think that we feel very good about our overall growth prospects.

Speaker 2

Clearly, as we do move up market, it gives us higher TAM, right? There's a bigger TAM that we're going after as well as the fact that the contract values are higher. So It does give us an chance to continue to demonstrate really strong growth there going forward.

Speaker 7

That's great color. Thank you.

Speaker 2

Sure.

Operator

Thank you. And our next question comes from the line of Kyle Voigt from KBW. Please go ahead.

Speaker 8

Hi, good morning. You delevered significantly, now have a fair amount of balance sheet flexibility. And just given that, I'm just wondering You could provide an update on M and A. I guess broadly speaking, it seems to be challenging to get deals announced still given the macro volatility. But I guess, are you starting to see seller expectations come in or normalize at all?

Speaker 8

Or do you feel the environment is turning more to getting deals done versus where we were in the second half of last year? And then just any color you can provide on certain segments of the business where you're seeing the most interesting

Speaker 2

I'll actually start with the last question. I think generally speaking, the way that we're thinking about the world well, first As you know, we spend the vast majority of our time on organic growth. And I think that, I think because of that focus, we've been able to show continued stronger performance across the business. But as we do consider ways to expand our business, we have those 3 key themes that we're really focused on market modernization and how can we bring More advanced technology to exchanges, banks and brokers to support their activity in the capital markets. I think the second is, is in ESG as we continue to grow and expand the capabilities we offer to corporates and investors in helping them manage the ESG landscape.

Speaker 2

And then the third is in anti financial crime, and that's an area that we're always looking to expand. It's such A wonderful area of the business and it's a high growth area. But with regard to just overall environment around M and A, I would always say this, great assets will always command a premium. I think we should just recognize that. I mean, in good times and bad, great assets will always do well in the M and A market.

Speaker 2

But I also think that as the market calibrates to a world where money costs money and the Cost of capital has gone up. Obviously, we are calibrating our thinking on how we look at financial profiles of acquisition targets to reflect Our higher cost of capital and we also want to make sure we're calibrating our expectations for the businesses that we would evaluate on that basis. I mean, that can create some tempering of expectations. But I also would we have a great balance sheet. We have done a lot to manage Our debt, we've got really good really great cash flows.

Speaker 2

So we are in a strong position, to consider M and A

Operator

Thank you. And I show our next question comes from the line of Craig Siegenthaler from Bank of America. Please go ahead.

Speaker 9

Hey, guys. Adena, congrats on the Tier 1 bank signing. But actually, all my questions have been asked. So I think I'm good right now.

Speaker 2

Okay, great. Thanks, Craig.

Operator

Thank you. And our next question comes from the line of Alexander Blostein from Goldman Sachs. Please go ahead.

Speaker 10

Hi, good morning everybody. I was hoping we could talk maybe a little bit about pricing. We've seen obviously inflation for a persistent period of time now, expenses arising across the board and A number of your peers on the Exchange side, but also on the data side have been trying to flex the pricing muscle where they can. So What are the opportunities on price that you see across the enterprise? Are there areas where you feel you're sort of below the market relative to the value proposition that you provided to your clients where you could increase pricing over the next call it 12 to 18 months?

Speaker 2

Sure. So first of all, we do take a long term view as How we manage the prices of our capabilities and solutions. And so we do think that way. But at the same time, we also have within our contracts, Particularly with our non regulated businesses, we do have the ability to increase price to reflect the overall inflationary environment around us. And we do leverage that.

Speaker 2

So we have but we also tend to if it's a service where there's kind of an annual Type of cadence, we tend to look at those price increases, at the end of the year that then got effective at the beginning of the year. And so you're going to you're seeing that already flowing through the financials 2023. I think that as in the regulated businesses, it's a little bit of a different environment just because It's not only that we do want to make sure we get paid for our value, but we also have to go through a regulatory process to do that. And so that's just, a little bit of a different dynamic. I would say, Alex, that we're doing the making the right decisions there, where we feel that we have the ability To price up to reflect the value we're serving, we're doing it, but we're not overdoing it.

Speaker 2

We're not being as aggressive as we possibly can because we want to make sure that we're thinking about it

Operator

over the long term and

Speaker 2

not the short term. About it over the long term and not the short term.

Speaker 1

I got you. Thanks.

Operator

Thank you. And I show our next question comes from the line of Simon Quinn from Atlantic Equities. Please go ahead.

Speaker 1

Hi, Dina. Hi, Anne. Thanks for taking my question. I was wondering if we could just explore the index business this quarter and just how to think about it going forward. And maybe you could give us a sense then of, I guess, what you're seeing in terms of flows across the different product lines, where the real opportunities lie.

Speaker 1

And I'm particularly interested in the franchise outside of the straight triple Qs as well.

Speaker 2

Sure. Great. Thank you. Well, we do provide information on flows at an aggregate level. So we did have $6,000,000,000 bin flows in the quarter versus last from the end of the year through the end of the Q1.

Speaker 2

We also had $23,000,000,000 of inflows year over year. So we definitely are seeing good strong demand from investors for our index products and that's not just the QQs, but also other thematic indexes, our smart beta injects Franchise. So we feel really good about overall client interest, investor interest. But obviously, the market dynamics have been what's really driven The downward trend in the revenues. I think also, we're still out there creating product, launching product.

Speaker 2

We're primarily focused on thematic indexes, which really mean things that could be leaning into innovative technologies, leaning into specific trends in the industry. And so we tend to kind of put a lot of our new product development focus on those areas. And then we also have a smart beta environment like our momentum index franchise and some of the other smart beta indexes where We definitely put time and attention there too, but I would say the thematic indexes have been more an area of new product focus for us right now.

Speaker 1

Okay, great. Thank you.

Speaker 5

Sure.

Operator

Thank you. And I show our next question comes from the line of Andrew Bond from Rosenblatt Securities. Please go ahead.

Speaker 1

Hey, good morning. Just in regards to the crypto business, did you see any impact from the recent banking crisis in terms of interest from potential customers? And thinking about the broader space, there are a number of players currently there and it seems to be some commoditization in terms of pricing. How does NASDAQ differentiate in terms of its offering in custody? And finally, is the launch still planned for this quarter?

Speaker 1

Thanks.

Speaker 2

Great. Thanks, Andrew. So starting with the last question first again on timing. I think that the way that we're positioning our is that we want to get regulatory approval and we're having constructive conversations with the New York Department of Finance and so We're hopeful we'll get that approval this quarter and we want to get product ready by the end of the quarter. And with that, we're moving I think by May, we'll be moving into user on our platform.

Speaker 2

I mean, we'll be able to show kind of an end to end demo in production, which I think is going to be really helpful to curating our client prospects. And so but whether or not we launch, it's going to be more dependent on definitely whether or not we have regulatory approval and whether or not the product Is a go. And also, just making sure that we engage the clients so that we feel really good about, how we're going to grow the business over time. And so that launch is not set in stone. It's more a matter of making sure the other parts are ready first.

Speaker 2

In terms of the client engagement and the institutional interest, I do think Nasdaq has an interesting right to win here, in terms of just getting engaged more generally in the crypto space. As regulation starts They come into the market and certainly as the regulators get a lot more engaged in crypto, I think we do have an ability to come in with A fair, resilient and a very scalable solution. Our crypto custody is actually, we would Say a real improvement in the technology, we are using MPC, but we're also using some really interesting techniques to make it so that We don't have this kind of hard, hot, cold wallet construct, but rather a continuous wallet that's available, but hyper secure. And I think that we feel like that will be more attractive to institutional users, to make it so they don't have a lot of their value stored somewhere that's really inaccessible

Operator

for, let's say, a 24 hour period.

Speaker 2

And so we do accessible for, let's say, 24 hour period. And so we do think that we have kind of a unique value proposition to offer And we are having really great engagement with clients, but it is dynamic. I mean, it is a very dynamic environment. So, we're calibrating our Expectations to that, we're making sure that we're being very prudent in how we're managing our expenses in this environment. But we are quite excited about what we have to offer.

Speaker 2

So we're excited to be able to launch it.

Speaker 5

Great. Thanks.

Operator

Thank you. And I show our next question comes from the line of Dan Salmon from Jefferies. Please go ahead. Hi.

Speaker 11

This is June on behalf of Dan. Thanks for taking my question. I just wanted to quickly ask about ESG. Just given some of the slowdown The ESG investment strategies, are you seeing any impact from that on the demand for ESG service at all?

Speaker 2

No. So most of our services that we offer in the ESG area right now are really offered to corporates. And there we're seeing very continued Engagement from corporates. We have both an advisory practice, which helps advise companies on how to make sure that they're thinking about Their overall HD program, how they're reporting on their program and communicating it to investors, how they're making sure that they're being compliant with different taxonomies so that they can get Credit for the work they're doing. And that's the demand for that is very healthy.

Speaker 2

And then we also have our reporting tools that allow them to Put all of that information to one container and then we go and we map it out to all the taxonomies and all the rating agencies, etcetera. And that also continues to have really nice growth in client engagement. So the corporates are wanting to make sure That they are there to engage with the investors the right way. I would say that overall though, while ESG is going to have Ebbs and flows in terms of kind of the environment that it sits in. It is, I think, a lasting change in how companies think about Engaging with investors and how investors are making investment decisions.

Speaker 2

I mean, the next generation of investors do care not only what returns they're getting, but how those companies are And I think that we're going to find that that's a lasting trend. So we continue to be very, very optimistic about how we can engage clients on this area.

Speaker 4

Helpful. Thank you.

Speaker 3

Sure.

Operator

Thank you. And I show our next question comes from the line of Alex Kramm from UBS. Please go ahead. Okay.

Speaker 5

Thanks. Yes, just wanted to squeeze a couple of follow ups here since we're in overtime. So thanks So two things. One is a quick one and I think this is for Anne. Back on Financial Crime, I mean, you've been giving The signed ARR metric and we only have limited history, but obviously, I think you can use that to back into net sales, which I think were $16,000,000 this quarter.

Speaker 5

It was $6,000,000 a year ago, so almost triple. So I'm not sure how meaningful those numbers are, but Sounds like you signed less tariff and clients, maybe it's a Tier 2, it's bigger. But like just maybe foot How that why the number was so big, because I think the Q1 is actually a seasonally slow quarter. So maybe help us a little bit understand the numbers. And then Bigger picture, you have answered some questions around the operating environment and what's out there.

Speaker 5

But The one thing you didn't touch upon is that clearly there's a sizable bulge bracket firm looking to go away. So just wondering how you think about that exposure there, because clearly they are clients, Credit Suisse across a ton of different businesses of yours. So just wondering how we should be thinking about that? Thanks.

Speaker 2

Okay. So on the ASC side, we actually did have I remember the Q1 of last year was particularly, I would say, a Slower quarter than normal for ASC, but we did have 39 new clients then. This year, we have 42. So we do have more new clients signing up this year than last year. And as you said, the ARR associated with larger clients is going to be higher.

Speaker 2

So I think that that helps also. I can't give you a complete bridge from the 6 16, we're going to have to go back and look at that. But generally speaking, we have I think that, we are seeing some strong Revenue tailwinds as we continue to engage with clients and upsell and sell new customers. So I think that's really Also recognize that when we do renew contracts with clients, we don't charge we don't do annual increases, but we actually charge On renewal, and that also gives us an opportunity to upsell the clients. So, that's been a pretty active environment on that as well this year.

Speaker 2

So I think that gives you hopefully, Alex, some more color there. On Credit Suisse, the impact of Credit Suisse, First of all, it's going to take a while for us to fully understand how the 2 organizations are going to come together and how that what kind of impact that has on our Capital Markets business. But I would say that if Credit Suisse, if we see trading moving away from Credit Suisse, it's going somewhere. And so we are we're Continue to see healthy volumes, healthy liquidity. It's just that volume will probably move to other players and then it's a matter of us making sure we're engaging with those players to get the flow.

Speaker 2

With regard to other solutions like our anti financial crime solutions, namely our surveillance solutions, that it will be up to how they organize themselves to understand So how we will continue to manage that contract going forward, we don't have a line of sight into that at this point. And I think those are probably our bigger areas of exposure

Operator

Thank you. And I show our last question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead.

Speaker 7

Great. Thanks for taking my follow-up and appreciate you going over on time here. And also, Great, great comments on the AI strategy. It really sounds compelling longer term. Just want to understand on AI, How do you view that from an economic perspective?

Speaker 7

Is it are the innovations something that you can actually charge for Across the businesses or is it more of the fact that it really enhances the product and therefore improves the sales cycle and capability. And similarly on the expense side, do you view AI as creating better internally

Speaker 2

Yes. I would say kind of all of the above. So it just kind of depends on the solution. So there are going to be areas where we might be able to offer Specific bespoke solution at a premium price, there might be some areas where we like with AFC where it just creates a better product and that gives us better And we do we are very focused with our ASC solutions on being a premium provider of that. So we see that because of the fact that our value proposition is So we've tried to embed that into overall price of the service.

Speaker 2

And then in terms of efficiency, particularly with generative AI, you start to have We've had some brainstorm sessions internally and we say looking at generative AI in the business, meaning in our products offered to clients and then generative AI on the business in terms of how we manage it into our operations. And we see a lot of opportunities in both and ways to create more scale and efficiency, but we also it's so early. So we have to also make sure that we're putting that technology into an environment that we feel is Secure and safe and that allows us and kind of ring fencing it and allowing us to make sure we manage our IP and our data. So we'll take some time Do it the right way, and to find ways that we can be, efficient, but also provide more premium product to our clients. And that's how we're focused on it right now.

Speaker 2

We also have a governance I should mention, we do have a governance committee that vets all the AI use cases inside of NASDAQ, and I think that's really important. We have to make We're doing this in a responsible way that we're thinking through the risks and as well as the benefits. And so our governance committee is led by John Decca, who's our Chief Regulatory Risk And legal officer, but also includes members from technology as well as other parts of our organization to make sure we're doing it in a responsible way.

Speaker 7

Yes. That's great. Super helpful. Thank you.

Speaker 2

Thank you.

Operator

Thank you. I'm showing no further questions in the queue. This concludes our Q and A session. At this time, I'd like to turn the conference back to Adena Friedman for closing remarks.

Speaker 2

Great. Well, thank you very much for your time today, and we look

Operator

Thank you. This concludes today's conference. Thank you for attending. You may all disconnect.

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Earnings Conference Call
Nasdaq Q1 2023
00:00 / 00:00