Craig Siegenthaler: Thanks, Adena. And just for my follow-up also on a similar topic, can you remind us what percentage of your data and listings revenue is coming from initial listings? And can you quantify the headwinds from roll-offs from accrued revenue from that strong 2021 and ’20 IPO period?
Adena Friedman: Yeah. Again, a good question to understand kind of the dynamics in the listings business. So I don’t know the exact percentage of revenue that’s coming from new listings. Because just to remind everyone, we have our annual listing fees and then we have our initial listing fees. Our initial listing fees are amortized over a two to four-year period — two to six-year period, I think, depending on the type of listing it is, and how big it is. So you’re right that there is some initial listing revenue that’s rolling off in — from the 2021 listings, not all, but some as that amortization flows through, and that will come off in ’24. The answer is around 10% of our overall listing revenues, so — which is and the listing revenue is somewhere in the range of…
Ann Dennison: Year-to-date, $300 million.
Adena Friedman: Yeah, $300 million. So it’s — that revenue will have some fluctuation as you go into 2024. And so you’ve got to look at the combination of the new listings and as well as from an annual listing fee revenue perspective, the de-listings that we’re experiencing, we do provide you that data every quarter, as we think about what the billing cycle is going to look like in January for the annual fees. So those are the big factors to consider in ’24.
Craig Siegenthaler: Thanks, Adena.
Adena Friedman: Sure.
Operator: Thank you. And I show our next question comes from the line of Owen Lau from Oppenheimer. Please go ahead.
Owen Lau: Good morning. Thank you for taking my question. So your organic growth of the Solution Businesses accelerated and come back to your medium to long-term outlook. You talked about the strength in Index and anti-fin crime business. I’m just wondering, if the equity market, Verafin and other business remain stable in the near term and IPO market remain like muted (ph), how should investors think about your organic growth over the next few quarters excluding Adenza? Thank you.
Adena Friedman: Sure. Hey, Owen. Well, I mean, we don’t give specific guidance or specific outlook quarter-by-quarter or year-over-year. But I think that you’re right that we’re really pleased to see the Solutions Businesses revenue growth really returning into the medium-term outlook that we’re — we have been communicating to you all for a while now. And I think, Owen, if we have a healthy IPO environment, and that really starts to — that engine starts to turn on again in ’24, I think that you’ll see the primary benefit of that will actually start to happen in ’25 just because it then outflows into our annual listing fees. But beyond that, if we have a stable and healthy trading environment, listing environment, that then obviously drives really good index flows, it drives data demand.
And it also probably loosens up and makes it so that corporates and investors are more ready to invest in their new solutions that help automate a lot of the manual processes they have. So it could — that could continue to unlock more interest, and frankly, easier sales decisions in that space. When it comes to Market Tech and Anti-Fin Crime though, those are really good solid demand businesses where exchanges are very, very focused on bringing their technology into the future, and we now have — I think we’ve done a nice job of really getting to a state of maturity across our CSD solution, our next-gen clearing solution, our next-gen trading solution, so — and our risk management solutions there. So we feel like that demand driver is more stable generally.
And then anti-fin crime is just — as you know, it’s a need to have technology, and we do think we have the best technology available. So that demand, we just feel like is much — is very structural. So I can’t say, Owen, exactly what that means for Solutions Business growth. But having a healthy — general healthy market environment certainly helps create even more opportunity for us.
Owen Lau: Got it. That’s helpful. And a quick one on the sales cycle on Adenza. I mean, we have been talking about the elongated sales cycle. I’m just wondering, is there any like sales cycle impact on Adenza? I mean, you talked about high-teens growth, I think, for Adenza in the third quarter. I’m just wondering, if there’s no, like, elongated sales cycle, the budget gets hike (ph) in release or things like that, how high it could have gone? Thanks.
Adena Friedman: Yeah. I actually do think that there are more gates that are — all of the larger institutions have a lot of gates to walk through. And I think that our Anti-Fin Crime business, we’re marching through these gates, but the gates — there are many gates, and we have great experience in the past especially with our Surveillance business, to kind of understand that. But with Adenza, there are more gates that they’re walking through to get to a sale, particularly with the larger institutions, except when there’s a regulatory demand. And that’s what we’re really interesting. I mean, we’ve had some really interesting super regionals sign up for Axiom like within three months or four months, that’s been some really shorter — some really short sales cycles when there’s a regulatory demand.
But if there isn’t really a near-term or immediate regulatory demand, the sales cycle is a little bit longer. I think they actually experienced longer sales cycles in ’22 than they’re experiencing in ’23. But generally speaking, they — I think that if we had a really healthy macro environment around us and more predictability of the macro environment, it would certainly be advantageous to Adenza over time.
Owen Lau: Got it. Thank you very much.
Adena Friedman: Sure
Operator: Thank you. And I show our next question comes from the line of Brian Bedell from Deutsche Bank. Please go ahead.
Brian Bedell: Great. Thanks. Good morning, folks. Thanks for taking my question. Maybe just back on Verafin. Just in terms of the normal seasonality we have seen in the last couple of years in that business, or I should say Anti-Financial Crime broadly, do you expect that also to represent the past pattern over the last two years in the fourth quarter? And then just sort of confidence around that 20% plus type of growth rate that you’ve been able to achieve in that going into 2024?
