Adena Friedman: Yeah. So we don’t, as you know, provide anything specific to a year. But our medium-term outlook of low to mid-teens revenue growth across the Adenza business, and that would be ARR plus the customer delivery revenue. We continue to have confidence in our ability to achieve that once Adenza becomes part of Nasdaq. I think, as I mentioned, there continues to be a really nice strong demand generally for the solutions. And then also, I think that they’ve really been able to show the ability to upsell the clients. So the fact they’re signing more new clients this year than last year just gives us more upsell capability over time. And the environment is — these are kind of need to have solutions from banks. I think that, particularly as we’re managing through an increasingly complex regulatory environment, there’s more risk in the system than there has been in the past, pretty risk and other things that – and also across currents across asset classes, they really are driving demand for the solution.
So over the medium-term outlook, our medium-term outlook remains the same at that low to mid-teens overall revenue growth.
Kyle Voigt: Thanks, Adena.
Operator: Thank you. And I show our next question comes from the line of Michael Cyprys from Morgan Stanley. Please go ahead.
Michael Cyprys: Hey. Good morning. Thanks for taking the question. I wanted to ask about Verafin. I was hoping you could speak to the competitive environment today for Verafin, how you see that evolving. Understand there’s big tech companies, such as Google, that have introduced some AML solutions. So maybe you could speak to how your solution differs, talk about some of the steps you’re taking to stay ahead of the big tech competitors that have deep pockets in AI expertise?
Adena Friedman: Sure. Yeah. So I think that there is a difference between what Google is doing and what we’re doing. So Google is partnering with a specific bank and providing AI algorithms to support that internal bank’s — essentially think of it as like an internal build but leveraging Google’s infrastructure. So the bank is bringing to that relationship very specific algorithms and patterns of that they’re looking for, what we call agents. And so that really is kind of what I would say, more of a facilitated on — a facilitated bespoke build, but with the Google — underpinning the Google infrastructure and you’re right, in the benefit of their AI capabilities. What we do is a purpose built complete software solution that is purpose built for the needs of fraud and AML detection, investigation and reporting.
And so we provide an end-to-end solution. The fact that we have transaction data across 2,500 banks, and we also — we are a cloud-based solutions. So we’re able to bring all of that transaction data together. And we leverage AWS. So AWS is our cloud provider. We’re leveraging their AI capabilities and their AI engines, including the bedrock solution that we’re using for the Gen AI capabilities that we’re adding. I think that it allows us to benefit from another great large technology company. But we have built a purpose built solution that is scaled across 2,500 banks. And so it makes it to the bank doesn’t have to do their own bespoke build. We are benefiting from the knowledge across all of these banks and the experience in what they’re seeing to continue to tune our engines and to build out the solutions.
And the last thing I would say is, we do weekly releases. And so we’re always staying on touch with the banks as to what they’re seeing and bringing those agents into the system that then benefits all of our clients, not just one client. So we’re really — we do think it’s a different — it’s certainly a different sale than it would be to look at — as compared to what Google is doing with that one bank. The last thing I would say is, we are winning share and we’re winning in terms of taking out internal builds because of the benefit of the consortium data that we have and the really nice workflow solution and we’re also taking out competitors. So we’re really pleased with the momentum.
Michael Cyprys: Great. And just a follow-up question, if I could, just on Verafin. FedNow just launched in July a new real-time payments rail. But there’s some concerns around fraud that might limit the uptake by institutions. So can you just speak to Verafin’s real-time payment solution, how you see the opportunity set evolving there? And any sort of lessons learned from the clearing houses real-time payment service that’s been in place for some time and I believe you have a solution there as well?
Adena Friedman: Yeah. Actually, we do. We connect with FedNow. We connect with the clearing house. So we are rolling out a real-time payment solution. And we’ve been in contact with the Fed in the context of their rollout. We’ve been working with the big banks, the core banking system providers because they also — they provide core infrastructure to the banks to be able to integrate FedNow and other real-time payment solution. So we’ve been working with them to make sure we’re integrated into their solutions and make it easy for the banks to onboard us for fraud detection. So it’s definitely — that is actually a specific growth area that we’re engaged with our SMB banks, our small to medium banks on as we speak.
Michael Cyprys: Great. Thank you.
Operator: Thank you. And I show our next question comes from the line of Craig Siegenthaler from Bank of America. Please go ahead.
Craig Siegenthaler: Thanks. Good morning and thanks for taking my question. I wanted to first touch on the pickup in IPO activity. So it was really nice to see a high win way at Nasdaq this quarter, including several big IPOs. But since then, we’ve seen the markets pull back, rates rise. Now I know you mentioned you have a robust pipeline, but how is the recent macro, including the conflict in Israel impacted the near-term pipeline?
Adena Friedman: Yeah. It’s a great question, Craig. It has impacted it. So I think I would say what — how would you characterize ’22 and ’23? It’s been — we’re coming off of a very significant environment in, what I would call a free money environment, coming into an environment that with rising interest rates, which creates unpredictability of the future, an economy that seems to have a lot of resilience, but is still slowing down and a lot of unpredictability that investors are struggling with, because at the end of the day, they have to underwrite the future earnings of a company, and if they can’t understand the overall economic environment it’s hard to underwrite that risk. So I would say ’23 started with a pretty deep frost (ph).
We started to see some light green shoots, as Nelson, likes to say, as we went through the spring or as the interest rate environment became a little bit more known. But the fact is that it kind of fits and starts. So we’ll have a window open and we obviously had some really interesting companies come out in September. And then you’re starting to see the macro environment change again, the geopolitical environment become much more unstable. And that, of course, is making investors pause again on understanding how to take that risk. So we do actually have a really good pipeline of companies. We’re really, really proud of the team. I mean, our team is just awesome. And so they’re really working hard to work with clients. But the majority of the conversations we’re having with clients, not all of them, but the majority are about the first half of next year much more so than the second — than the fourth quarter of this year.
