And of course, the cash flow accretion is something that we are focused on too.
Kyle Voigt: Understood. Thank you very much.
Operator: Thank you. And I show our next question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead.
Brian Bedell: All right. Great. Thanks. Good morning and thanks for taking my questions. Maybe just moving over to Verafin, continued strong growth in new SaaS clients, and then just trying to get a sense of what that might mean for the cadence of revenue growth in that segment as we move throughout the year. If you think that can improve from the 23% level, already pretty strong. And then the rollout of the Entity Research Copilot is — just your thoughts on how that might contribute to revenue progress throughout the year in that segment.
Adena Friedman: Sure. Yeah, we’re not going to provide you specific kind of views of the revenue growth other than we say that it’s mid-20s and we feel good about our overall outlook there. I think that with the copilot capability, the way that we’re rolling out copilot would be the same that we’re rolling out any new module that we provide to our small to medium bank clients. So when a small to medium bank client signs up for Verafin, they sign up for the platform. And we then introduce new modules into that platform or new capabilities in that platform through their contract period. And then at the end of the contract period, we walk through with them what’s the return that we’ve offered them through that period and therefore what would be the price increase that we think is appropriate for the value that we’re providing to them.
So as we roll out the copilot capabilities and we get usage across the platform, across the banks, it will help us show a really strong ROI for them so that in our renewal talks, it becomes a part of that conversation. But it’s not a module that we’re selling discreetly to them. We want them to use it. We want them to integrate it into workflows. We want this product to be as sticky as possible and as valuable as possible for the renewal conversations. As you look up market into the tier 1 and tier 2 banks where it’s all new sales and where we’re selling modules. So as we go in and talk to them, the modules that are the most straightforward to sell across our platform are the fraud modules because it’s a very clear calculus of return to them.
But as you talk about AML, it’s a much more complicated problem. And now we have this new tool that we can offer through our AML solution that shows a clear return. So in addition to doing a great job of rooting out criminal behaviors and money laundering, we also can show that we’re going to save them a ton of time and resources on the investigative side of it. And so we do think it’ll help us with sales, it’ll help us show value to the platform, and we can look at that as part of the pricing that we discussed with them when we signed them. So that’s basically how we’re using this tool to kind of drive sales retention and upsells.
Operator: Thank you. And I show our last question comes from the line of Michael Cyprys from Morgan Stanley. Please go ahead.
Michael Cyprys: Hi, good morning. Thanks for taking the question. I just wanted to ask about the Adenza business now that it’s been about six months or so since closed. Just curious in conversations with clients of Calypso and Axiom, where you see the strongest mode across their business and capabilities, and where’s the room for you to improve the mode as you kind of look out over the next couple of years?
Adena Friedman: Yeah, I’d say first of all, one of the really big – let’s start with AxiomSL. One of their strongest elements is that they’re completely global. They connect into over 100 regulators across more than 50 countries. And so when they’re talking to a bank that has any business in any country, they can say, look, not only can we solve the problems within country, but we can help you with your entire global business and all the regulatory reporting needs. It also — it’s a machine, like — it’s an amazing team of people. They have deep regulatory expertise and so when soon as a new rule is even introduced or contemplated, they’re already writing the requirements to bring that into the tool. So we’re ahead of the – that rules every time, the new rule comes out with a new module.
And it’s interesting also, there’s obviously a lot of new regulation coming, but we just — I think, do a great job of providing a very elegant way to ingest their data, deliver solutions, make it really efficient, and on a global basis. Now when it comes to Calypso, I think that what we’re finding, there are two elements of Calypso that are just like world-class, best-in-class. One of them is our collateral management capability. It’s just excellent. And so we can walk in and show that we can really make them much more efficient managing their collateral, which then gives them better ability to drive liquidity across their franchise, so it frees up capital. The second thing is kind of clearing risk management, trading risk management, so that again they can unlock liquidity and unlock capital for the use in the markets.
And then the third is on the treasury side. That’s been a fast-grower both on the brokerage businesses but also buy-side. So any active trading buy-side client, the treasury tool has been a really good growth area for us. So I think those are the areas where we just feel like we’re best-in-class, and that drives a lot of great conversations with the clients.
Michael Cyprys: Great, thanks. And just a follow up question, I was hoping you maybe could elaborate a little bit on the new product roadmap strategy for Axiom and Calypso as you look out for the rest of this year.
Adena Friedman: Yeah, so well, first of all, we are in a kind of what I’ll call an upgrade cycle for Calypso. So, we have a new version that we’re rolling out and we’re working to make sure we get all of our clients onto that version this year. So, that’s driving renewal activity. I think that, but, you know, more generally, we have also the Basel 3 and Basel 4 end game is a driver of revenue growth and demand and clients are really talking about it more as — when and how big as opposed to if. And so I think that customers who are four-leaning are already signing with us to make sure that they’re entirely ready. And with this Calypso, Axiom data transfer capability, we’re also working with some of our Axiom clients on some Calypso capabilities that help them manage their capital more efficiently, while they’re managing their regulatory needs because that’s going to be a big element of focus for the regulators.
So I have to say, I do feel like those are the areas where we’re seeing a product roadmap in-year. A multi-year product roadmap is about making sure we continue to modernize the cloud-delivered solutions, make sure that we can do that super-efficiently for them. We have more modern data management capabilities that allow us to unlock more functionality within the platforms and make the products even more valuable to them.
Michael Cyprys: Great, thanks so much.
Operator: Thank you. This concludes our Q&A session. At this time, I’d like to turn the conference back to Adena Friedman, Chair and CEO, for closing remarks.
Adena Friedman: Great, well thank you very much. So as you heard throughout the meeting, Nasdaq continues to make progress on our three key priorities, integrate, innovate, and accelerate, which will underpin our leadership and momentum as we move through the year. United behind these strategic priorities and powered by our market-leading platforms, we’re firmly positioned to unlock our next phase of resilient and scalable growth. We look forward to keeping you updated on our progress throughout the year. Thank you all very much and have a great day.
Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.
