WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the second quarter of 2024. $21.8 million of net income ($27.1(1) million of net income, as adjusted), s...
Record AUM of $109.7 Billion
940 bps of Operating Margin Expansion vs. YTD June 30, 2023
Diluted Earnings Per Share of $0.13 ($0.16, as Adjusted)
NEW YORK: WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the second quarter of 2024.
$21.8 million of net income ($27.1(1) million of net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.
$109.7 billion of ending AUM, an increase of 2.3% from the prior quarter arising from market appreciation and net inflows.
$0.3 billion of net inflows, primarily driven by inflows into our international developed equity, fixed income and U.S. equity products, partially offset by outflows from our commodity products.
0.37% average advisory fee, a 1 basis point increase from the prior quarter.
$107.0 million of operating revenues, an increase of 10.5% from the prior quarter due to higher average AUM and higher other revenues attributable to our European listed products.
81.2% gross margin(1), a 1.8 point increase from the prior quarter due to higher revenues.
31.3% operating income margin (35.3%(1) as adjusted), a 2.4 point increase (5.7 point increase, as adjusted(1)) compared to our operating margin of 28.9% (29.6%(1), as adjusted) in the prior quarter primarily due to higher revenues.
$0.03 quarterly dividend declared, payable on August 21, 2024 to stockholders of record as of the close of business on August 7, 2024.
Update from Jonathan Steinberg, WisdomTree CEO
“WisdomTree continued to thrive in the second quarter, generating record assets under management with a global footprint and leadership in advisor solutions and tokenization on the back of only 300 employees. It is truly a testament to the efficiency of our business model and reflects our mission, vision and values. The broadening of our product lineup over the years while adding portfolio solutions for our advisor clients are showcased in our three-plus years of strong net inflows and record assets under management. Continued traction in those areas, alongside our leadership position in the industry’s secular shift toward ETFs, tokenization and blockchain technology, further set the company up for success in the long run.”
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Update from Jarrett Lilien, WisdomTree COO and President
“WisdomTree once again delivered strong revenue growth on the back of record assets under management, net inflows and expanding other revenue streams. With well-managed expenses and scale benefits, we’ve expanded adjusted operating margins 840 basis points this year as compared to the first half of last year. This all translates into an accelerated pace of EPS growth and strong returns for stockholders.”
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OPERATING AND FINANCIAL HIGHLIGHTS
| Three Months Ended | ||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||
Consolidated Operating Highlights ($ in billions): |
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AUM—end of period | $ | 109.7 |
| $ | 107.2 |
| $ | 100.1 |
| $ | 93.7 |
| $ | 93.7 |
|
Net inflows/(outflows) | $ | 0.3 |
| $ | 2.0 |
| $ | (0.3 | ) | $ | 2.0 |
| $ | 2.3 |
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Average AUM | $ | 108.4 |
| $ | 102.4 |
| $ | 96.6 |
| $ | 95.7 |
| $ | 91.6 |
|
Average advisory fee |
| 0.37 | % |
| 0.36 | % |
| 0.36 | % |
| 0.36 | % |
| 0.36 | % |
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Consolidated Financial Highlights ($ in millions, except per share amounts): |
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Operating revenues | $ | 107.0 |
| $ | 96.8 |
| $ | 90.8 |
| $ | 90.4 |
| $ | 85.7 |
|
Net income | $ | 21.8 |
| $ | 22.1 |
| $ | 19.1 |
| $ | 13.0 |
| $ | 54.3 |
|
Diluted earnings per share | $ | 0.13 |
| $ | 0.13 |
| $ | 0.16 |
| $ | 0.07 |
| $ | 0.32 |
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Operating income margin |
| 31.3 | % |
| 28.9 | % |
| 28.7 | % |
| 29.5 | % |
| 21.2 | % |
|
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As Adjusted (Non-GAAP(1)): |
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Gross margin |
| 81.2 | % |
| 79.4 | % |
| 79.7 | % |
| 80.1 | % |
| 79.3 | % |
Net income, as adjusted | $ | 27.1 |
| $ | 20.3 |
| $ | 18.6 |
| $ | 18.0 |
| $ | 14.9 |
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Diluted earnings per share, as adjusted | $ | 0.16 |
| $ | 0.12 |
| $ | 0.11 |
| $ | 0.10 |
| $ | 0.09 |
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Operating income margin, as adjusted |
| 35.3 | % |
| 29.6 | % |
| 28.7 | % |
| 29.5 | % |
| 26.9 | % |
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RECENT BUSINESS DEVELOPMENTS
Company News
Product News
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WISDOMTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||
Operating Revenues: |
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Advisory fees | $ | 98,938 |
| $ | 92,501 |
| $ | 86,988 |
| $ | 86,598 |
| $ | 82,004 |
| $ | 191,439 |
| $ | 159,641 |
| ||||||
Other revenues |
| 8,096 |
|
| 4,337 |
|
| 3,856 |
|
| 3,825 |
|
| 3,720 |
|
| 12,433 |
|
| 8,127 |
| ||||||
Total revenues |
| 107,034 |
|
| 96,838 |
|
| 90,844 |
|
| 90,423 |
|
| 85,724 |
|
| 203,872 |
|
| 167,768 |
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Operating Expenses: |
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Compensation and benefits |
| 30,790 |
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| 31,054 |
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| 27,860 |
|
| 27,955 |
|
| 26,319 |
|
| 61,844 |
|
| 53,717 |
| ||||||
Fund management and administration |
| 20,139 |
|
| 19,962 |
|
| 18,445 |
|
| 18,023 |
|
| 17,727 |
|
| 40,101 |
|
| 34,880 |
| ||||||
Marketing and advertising |
| 5,110 |
|
| 4,408 |
|
| 4,951 |
|
| 3,833 |
|
| 4,465 |
|
| 9,518 |
|
| 8,472 |
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Sales and business development |
| 3,640 |
|
| 3,611 |
|
| 3,881 |
|
| 3,383 |
|
| 3,326 |
|
| 7,251 |
|
| 6,320 |
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Contractual gold payments |
| — |
|
| — |
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| — |
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| — |
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| 1,583 |
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