Nasdaq Inc (NDAQ) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Integrations


Nasdaq Inc (NDAQ) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Integrations

Q: Regarding Verafin, you signed another Tier 1 client. Is this the same client announced last quarter, and are you upselling existing Tier 1 clients like Citi? A: Yes, it is the same client, starting with payment fraud. We are actively working to upsell Tier 1 and Tier 2 clients, and have already upsold one Tier 2 client. Clients are happy with the implementations, which aids in further sales discussions.

Q: Can you elaborate on the cross-sales campaigns with Axiom and Calypso, and what success might look like? A: Year to date, we've had seven cross-sells across the fintech division. We are launching new campaigns, such as cross-selling the Nasdaq Risk platform to Calypso clients and AxiomSL's global shareholder disclosures to broker-dealer and Calypso clients. These campaigns are progressing well.

Q: On the timing of onboarding new clients, is there a difference between new clients and cross-sells? Also, any insights on the IPO market and potential election impacts? A: Implementation times vary; medium banks take 6-12 months, while Tier 1 and Tier 2 banks take 9-12 months. Upsells may be quicker. The IPO market shows green shoots, with 33 IPOs in the quarter and a 75% win rate. We expect more momentum in Q2 2025 and beyond.

Q: Regarding the international opportunity for Axiom, can you frame the market share or penetration rate in new markets like India and the Philippines? Are you displacing competitors or in-house solutions? A: AxiomSL is expanding in regions where Nasdaq has a strong presence, like the Philippines and India, often upselling existing clients for domestic reporting. In Latin America, we have a strong presence with over 10 market operators and 50 bank clients. We are often displacing in-house solutions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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