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--(BUSINESS WIRE)--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.
$0.03 quarterly dividend declared, payable on August 21, 2024 to stockholders of record as of the close of business on August 7, 2024.
Update from Jonathan Steinberg, WisdomTree CEO
“WisdomTree continued to thrive in the second quarter, generating record assets under management with a global footprint and leadership in advisor solutions and tokenization on the back of only 300 employees. It is truly a testament to the efficiency of our business model and reflects our mission, vision and values. The broadening of our product lineup over the years while adding portfolio solutions for our advisor clients are showcased in our three-plus years of strong net inflows and record assets under management. Continued traction in those areas, alongside our leadership position in the industry’s secular shift toward ETFs, tokenization and blockchain technology, further set the company up for success in the long run.”
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Update from Jarrett Lilien, WisdomTree COO and President
“WisdomTree once again delivered strong revenue growth on the back of record assets under management, net inflows and expanding other revenue streams. With well-managed expenses and scale benefits, we’ve expanded adjusted operating margins 840 basis points this year as compared to the first half of last year. This all translates into an accelerated pace of EPS growth and strong returns for stockholders.”
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OPERATING AND FINANCIAL HIGHLIGHTS
| Three Months Ended | ||||||||||||||
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June 30,
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Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
| ||||||||||
Consolidated Operating Highlights ($ in billions): |
|
|
|
|
| ||||||||||
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 |
|
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 | % |
|
|
|
|
|
| ||||||||||
Consolidated Financial Highlights ($ in millions, except per share amounts): |
|
|
|
|
| ||||||||||
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 |
|
Operating income margin |
| 31.3 | % |
| 28.9 | % |
| 28.7 | % |
| 29.5 | % |
| 21.2 | % |
|
|
|
|
|
| ||||||||||
As Adjusted (Non-GAAP(1)): |
|
|
|
|
| ||||||||||
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 |
|
Diluted earnings per share, as adjusted | $ | 0.16 |
| $ | 0.12 |
| $ | 0.11 |
| $ | 0.10 |
| $ | 0.09 |
|
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: |
|
|
|
|
|
|
| ||||||||||||||||||||
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 |
| ||||||
Operating Expenses: |
|
|
|
|
|
|
| ||||||||||||||||||||
Compensation and benefits |
| 30,790 |
|
| 31,054 |
|
| 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 |
| ||||||
Sales and business development |
| 3,640 |
|
| 3,611 |
|
| 3,881 |
|
| 3,383 |
|
| 3,326 |
|
| 7,251 |
|
| 6,320 |
| ||||||
Contractual gold payments |
| — |
|
| — |
|
| — |
|
| — |
|
| 1,583 |
|
| — |
|
| 6,069 |
| ||||||
Professional fees |
| 6,594 |
|
| 3,630 |
|
| 3,201 |
|
| 3,719 |
|
| 8,334 |
|
| 10,224 |
|
| 12,049 |
| ||||||
Occupancy, communications and equipment |
| 1,314 |
|
| 1,210 |
|
| 1,208 |
|
| 1,203 |
|
| 1,172 |
|
| 2,524 |
|
| 2,273 |
| ||||||
Depreciation and amortization |
| 418 |
|
| 383 |
|
| 335 |
|
| 307 |
|
| 121 |
|
| 801 |
|
| 230 |
| ||||||
Third-party distribution fees |
| 2,687 |
|
| 2,307 |
|
| 2,549 |
|
| 2,694 |
|
| 1,881 |
|
| 4,994 |
|
| 4,134 |
| ||||||
Other |
| 2,831 |
|
| 2,323 |
|
| 2,379 |
|
| 2,601 |
|
| 2,615 |
|
| 5,154 |
|
| 4,872 |
| ||||||
Total operating expenses |
| 73,523 |
|
| 68,888 |
|
| 64,809 |
|
| 63,718 |
|
| 67,543 |
|
| 142,411 |
|
| 133,016 |
| ||||||
Operating income |
| 33,511 |
|
| 27,950 |
|
| 26,035 |
|
| 26,705 |
|
| 18,181 |
|
| 61,461 |
|
| 34,752 |
| ||||||
Other Income/(Expenses): |
|
|
|
|
|
|
| ||||||||||||||||||||
Interest expense |
| (4,140 | ) |
| (4,128 | ) |
| (3,758 | ) |
| (3,461 | ) |
| (4,021 | ) |
| (8,268 | ) |
| (8,023 | ) | ||||||
Gain on revaluation/termination of deferred consideration—gold payments |
| — |
|
| — |
|
| — |
|
| — |
|
| 41,361 |
|
| — |
|
| 61,953 |
| ||||||
Interest income |
| 1,438 |
|
| 1,398 |
|
| 1,225 |
|
| 791 |
|
| 1,000 |
|
| 2,836 |
|
| 2,083 |
| ||||||
Impairments |
| — |
|
| — |
|
| (339 | ) |
| (2,703 | ) |
| — |
|
| — |
|
| (4,900 | ) | ||||||
Loss on extinguishment of convertible notes |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (9,721 | ) | ||||||
Other losses and gains, net |
| (1,283 | ) |
| 2,592 |
|
| 1,602 |
|
| (2,512 | ) |
| 1,286 |
|
| 1,309 |
|
| (721 | ) | ||||||
Income before income taxes |
| 29,526 |
|
| 27,812 |
|
| 24,765 |
|
| 18,820 |
|
| 57,807 |
|
| 57,338 |
|
| 75,423 |
| ||||||
Income tax expense |
| 7,767 |
|
| 5,701 |
|
| 5,688 |
|
| 5,836 |
|
| 3,555 |
|
| 13,468 |
|
| 4,938 |
| ||||||
Net income | $ | 21,759 |
| $ | 22,111 |
| $ | 19,077 |
| $ | 12,984 |
| $ | 54,252 |
| $ | 43,870 |
|
| 70,485 |
| ||||||
Earnings per share—basic | $ | 0.13(2) | $ | 0.14(2 | ) | $ | 0.16(2 | ) | $ | 0.07(2 | ) | $ | 0.32(2 | ) | $ | 0.27(2 | ) | $ | 0.43(2 | ) | |||||||
Earnings per share—diluted | $ | 0.13 |
| $ | 0.13 |
| $ | 0.16(2 | ) | $ | 0.07 |
| $ | 0.32 |
| $ | 0.26 |
| $ | 0.42(2 | ) | ||||||
Weighted average common shares—basic |
| 146,896 |
|
| 146,464 |
|
| 145,310 |
|
| 145,284 |
|
| 144,351 |
|
| 146,680 |
|
| 144,108 |
| ||||||
Weighted average common shares—diluted |
| 166,359 |
|
| 165,268 |
|
| 171,703 |
|
| 177,140 |
|
| 170,672 |
|
| 165,872 |
|
| 165,468 |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||
As Adjusted (Non-GAAP(1)) |
|
|
|
|
|
|
| ||||||||||||||||||||
Total operating expenses | $ | 69,252 |
| $ | 68,193 |
| $ | 64,809 |
| $ | 63,718 |
| $ | 62,630 |
|
|
| ||||||||||
Operating income | $ | 37,782 |
| $ | 28,645 |
| $ | 26,035 |
| $ | 26,705 |
| $ | 23,094 |
|
|
| ||||||||||
Income before income taxes | $ | 36,083 |
| $ | 26,987 |
| $ | 23,908 |
| $ | 23,902 |
| $ | 19,752 |
|
|
| ||||||||||
Income tax expense | $ | 9,008 |
| $ | 6,731 |
| $ | 5,342 |
| $ | 5,854 |
| $ | 4,833 |
|
|
| ||||||||||
Net income | $ | 27,075 |
| $ | 20,256 |
| $ | 18,566 |
| $ | 18,048 |
| $ | 14,919 |
|
|
| ||||||||||
Earnings per share—diluted | $ | 0.16 |
| $ | 0.12 |
| $ | 0.11 |
| $ | 0.10 |
| $ | 0.09 |
|
|
| ||||||||||
Weighted average common shares—diluted |
| 166,359 |
|
| 165,268 |
|
| 171,703 |
|
| 177,140 |
|
| 170,672 |
|
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QUARTERLY HIGHLIGHTS
Operating Revenues
- Operating revenues increased 10.5% and 24.9% from the first quarter of 2024 and the second quarter of 2023, respectively, due to higher average AUM and higher other revenues attributable to our European listed exchange-traded products (“ETPs”).
- Our average advisory fee was 0.37%, 0.36% and 0.36% during the second quarter of 2024, the first quarter of 2024 and the second quarter of 2023, respectively.
Operating Expenses
- Operating expenses increased 6.7% from the first quarter of 2024 primarily due to higher professional fees arising from expenses incurred in connection with an activist campaign, as well as higher marketing expenses.
- Operating expenses increased 8.9% from the second quarter of 2023 primarily due to higher incentive and stock-based compensation expense and increased headcount, fund management and administration costs, third-party distribution fees and marketing expenses. These increases were partly offset by lower professional fees and the termination of the deferred consideration—gold payments obligation on May 10, 2023.
Other Income/(Expenses)
- Interest expense was essentially unchanged from the first quarter of 2024. Interest expense increased 3.0% from the second quarter of 2023 due to the recognition of imputed interest on our obligation payable to Gold Bullion Holdings (Jersey) Limited (“GBH”), a subsidiary of the World Gold Council, in connection with our repurchase in November 2023 of our Series C Non-Voting Convertible Preferred Stock, partly offset by a lower level of debt outstanding.
- Interest income increased 2.9% and 43.8% from the first quarter of 2024 and second quarter of 2023, respectively, due to a higher level of interest-earning assets.
- Other losses and gains, net was a loss of $1.3 million for the second quarter of 2024. The quarter included net losses of $1.3 million and $0.3 million on our investments and financial instruments owned, respectively. Gains and losses also generally arise from the sale of gold and crypto earned from management fees paid by our physically-backed gold and crypto ETPs, foreign exchange fluctuations and other miscellaneous items.
Income Taxes
- Our effective income tax rate for the second quarter of 2024 was 26.3%, resulting in income tax expense of $7.8 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible executive compensation, an increase in the deferred tax asset valuation allowance on losses recognized on our investments and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings.
- Our adjusted effective income tax rate for the second quarter of 2024 was 25.0%(1).
SIX MONTH HIGHLIGHTS
- Operating revenues increased 21.5% as compared to 2023 due to higher average AUM and higher other revenues attributable to our European listed ETPs.
- Operating expenses increased 7.1% as compared to 2023 primarily due to higher incentive and stock-based compensation expense and increased headcount, fund management and administration costs, marketing expenses, sales and business development expenses, third-party distribution fees, as well as higher depreciation and amortization. These increases were partly offset by lower contractual gold payments and professional fees.
- Significant items reported in other income/(expense) in 2024 include: an increase in interest expense of 3.1% due to imputed interest on our obligation payable to GBH, partly offset by a lower level of debt outstanding; an increase in interest income of 36.1% due to an increase in our interest-earning assets; net gains on our financial instruments owned of $1.8 million; and losses on our investments of $1.2 million. Gains and losses also generally arise from the sale of gold earned on management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
- Our effective income tax rate for 2024 was 23.5%, resulting in an income tax expense of $13.5 million. Our tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible executive compensation and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings and tax windfalls associated with the vesting of stock-based compensation awards.
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, July 26, 2024 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=5z2QQw8B.
Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers. To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time. All earnings materials and the webcast can be accessed through WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will also be available shortly after the call.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime®.*
* The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.
WisdomTree currently has approximately $111.2 billion in assets under management globally.
For more information about WisdomTree and WisdomTree Prime®, visit: https://www.wisdomtree.com.
Please visit us on X, at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.
____________________ | |
(1) | See “Non-GAAP Financial Measurements.” |
(2) | Earnings per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months ended December 31, 2023 includes a gain of $7.966 recognized upon the repurchase of our Series C non-voting preferred shares convertible into approximately 13.1 million shares of common stock from GBH, which is excluded from net income, but required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This gain is excluded from our EPS when computed on a non-GAAP basis. |
WISDOMTREE, INC. AND SUBSIDIARIES KEY OPERATING STATISTICS (Unaudited) | |||||||||||||||
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| Three Months Ended | ||||||||||||||
| June 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | ||||||||||
GLOBAL ETPs ($ in millions) |
|
|
|
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|
|
|
|
| ||||||||||
Beginning of period assets | $ | 107,230 |
| $ | 100,124 |
| $ | 93,735 |
| $ | 93,666 |
| $ | 90,740 |
|
Inflows/(outflows) |
| 340 |
|
| 1,990 |
|
| (255 | ) |
| 1,983 |
|
| 2,327 |
|
Market appreciation/(depreciation) |
| 2,116 |
|
| 5,116 |
|
| 6,644 |
|
| (1,914 | ) |
| 599 |
|
End of period assets | $ | 109,686 |
| $ | 107,230 |
| $ | 100,124 |
| $ | 93,735 |
| $ | 93,666 |
|
Average assets during the period | $ | 108,392 |
| $ | 102,360 |
| $ | 96,534 |
| $ | 95,743 |
| $ | 91,578 |
|
Average advisory fee during the period |
| 0.37 | % |
| 0.36 | % |
| 0.36 | % |
| 0.36 | % |
| 0.36 | % |
Revenue days |
| 91 |
|
| 91 |
|
| 92 |
|
| 92 |
|
| 91 |
|
Number of ETFs—end of the period |
| 350 |
|
| 338 |
|
| 337 |
|
| 344 |
|
| 344 |
|
|
|
|
|
|
| ||||||||||
U.S. LISTED ETFs ($ in millions) |
|
|
|
|
| ||||||||||
|
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 78,087 |
| $ | 72,486 |
| $ | 68,018 |
| $ | 65,903 |
| $ | 61,283 |
|
Inflows/(outflows) |
| 1,106 |
|
| 1,983 |
|
| (67 | ) |
| 3,601 |
|
| 3,249 |
|
Market appreciation/(depreciation) |
| 529 |
|
| 3,618 |
|
| 4,535 |
|
| (1,486 | ) |
| 1,371 |
|
End of period assets | $ | 79,722 |
| $ | 78,087 |
| $ | 72,486 |
| $ | 68,018 |
| $ | 65,903 |
|
Average assets during the period | $ | 78,436 |
| $ | 74,730 |
| $ | 69,694 |
| $ | 68,008 |
| $ | 62,712 |
|
Number of ETFs—end of the period |
| 78 |
|
| 77 |
|
| 76 |
|
| 80 |
|
| 80 |
|
|
|
|
|
|
| ||||||||||
EUROPEAN LISTED ETPs ($ in millions) |
|
|
|
|
| ||||||||||
|
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 29,143 |
| $ | 27,638 |
| $ | 25,717 |
| $ | 27,763 |
| $ | 29,457 |
|
(Outflows)/inflows |
| (766 | ) |
| 7 |
|
| (188 | ) |
| (1,618 | ) |
| (922 | ) |
Market appreciation/(depreciation) |
| 1,587 |
|
| 1,498 |
|
| 2,109 |
|
| (428 | ) |
| (772 | ) |
End of period assets | $ | 29,964 |
| $ | 29,143 |
| $ | 27,638 |
| $ | 25,717 |
| $ | 27,763 |
|
Average assets during the period | $ | 29,956 |
| $ | 27,630 |
| $ | 26,840 |
| $ | 27,735 |
| $ | 28,866 |
|
Number of ETPs—end of the period |
| 272 |
|
| 261 |
|
| 261 |
|
| 264 |
|
| 264 |
|
|
|
|
|
|
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PRODUCT CATEGORIES ($ in millions) |
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|
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U.S. Equity |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 31,670 |
| $ | 29,156 |
| $ | 25,643 |
| $ | 26,001 |
| $ | 24,534 |
|
Inflows |
| 221 |
|
| 536 |
|
| 487 |
|
| 864 |
|
| 414 |
|
Market (depreciation)/appreciation |
| (57 | ) |
| 1,978 |
|
| 3,026 |
|
| (1,222 | ) |
| 1,053 |
|
End of period assets | $ | 31,834 |
| $ | 31,670 |
| $ | 29,156 |
| $ | 25,643 |
| $ | 26,001 |
|
Average assets during the period | $ | 31,252 |
| $ | 30,056 |
| $ | 26,822 |
| $ | 26,501 |
| $ | 24,732 |
|
|
|
|
|
|
| ||||||||||
Commodity & Currency |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 21,944 |
| $ | 21,336 |
| $ | 20,466 |
| $ | 22,384 |
| $ | 24,924 |
|
Outflows |
| (1,499 | ) |
| (460 | ) |
| (449 | ) |
| (1,814 | ) |
| (1,513 | ) |
Market appreciation/(depreciation) |
| 1,542 |
|
| 1,068 |
|
| 1,319 |
|
| (104 | ) |
| (1,027 | ) |
End of period assets | $ | 21,987 |
| $ | 21,944 |
| $ | 21,336 |
| $ | 20,466 |
| $ | 22,384 |
|
Average assets during the period | $ | 22,437 |
| $ | 20,837 |
| $ | 21,254 |
| $ | 22,278 |
| $ | 24,033 |
|
|
|
|
|
|
| ||||||||||
Fixed Income |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 21,218 |
| $ | 21,197 |
| $ | 21,797 |
| $ | 20,215 |
| $ | 18,708 |
|
Inflows/(outflows) |
| 236 |
|
| (14 | ) |
| (715 | ) |
| 1,670 |
|
| 1,471 |
|
Market (depreciation)/appreciation |
| (24 | ) |
| 35 |
|
| 115 |
|
| (88 | ) |
| 36 |
|
End of period assets | $ | 21,430 |
| $ | 21,218 |
| $ | 21,197 |
| $ | 21,797 |
| $ | 20,215 |
|
Average assets during the period | $ | 21,277 |
| $ | 21,082 |
| $ | 21,889 |
| $ | 20,965 |
| $ | 19,185 |
|
| Three Months Ended | ||||||||||||||
| June 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | ||||||||||
International Developed Market Equity |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 18,103 |
| $ | 15,103 |
| $ | 13,902 |
| $ | 13,423 |
| $ | 11,433 |
|
Inflows |
| 1,253 |
|
| 1,599 |
|
| 9 |
|
| 798 |
|
| 1,593 |
|
Market appreciation/(depreciation) |
| 29 |
|
| 1,401 |
|
| 1,192 |
|
| (319 | ) |
| 397 |
|
End of period assets | $ | 19,385 |
| $ | 18,103 |
| $ | 15,103 |
| $ | 13,902 |
| $ | 13,423 |
|
Average assets during the period | $ | 18,809 |
| $ | 16,688 |
| $ | 14,266 |
| $ | 13,873 |
| $ | 12,276 |
|
|
|
|
|
|
| ||||||||||
Emerging Market Equity |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 11,189 |
| $ | 10,726 |
| $ | 9,569 |
| $ | 9,191 |
| $ | 8,811 |
|
Inflows |
| 57 |
|
| 217 |
|
| 412 |
|
| 451 |
|
| 329 |
|
Market appreciation/(depreciation) |
| 629 |
|
| 246 |
|
| 745 |
|
| (73 | ) |
| 51 |
|
End of period assets | $ | 11,875 |
| $ | 11,189 |
| $ | 10,726 |
| $ | 9,569 |
| $ | 9,191 |
|
Average assets during the period | $ | 11,448 |
| $ | 10,900 |
| $ | 9,833 |
| $ | 9,652 |
| $ | 8,998 |
|
|
|
|
|
|
| ||||||||||
Leveraged & Inverse |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 1,828 |
| $ | 1,815 |
| $ | 1,781 |
| $ | 1,864 |
| $ | 1,785 |
|
(Outflows)/inflows |
| (18 | ) |
| (50 | ) |
| (59 | ) |
| (1 | ) |
| 12 |
|
Market appreciation/(depreciation) |
| 112 |
|
| 63 |
|
| 93 |
|
| (82 | ) |
| 67 |
|
End of period assets | $ | 1,922 |
| $ | 1,828 |
| $ | 1,815 |
| $ | 1,781 |
| $ | 1,864 |
|
Average assets during the period | $ | 1,905 |
| $ | 1,792 |
| $ | 1,803 |
| $ | 1,894 |
| $ | 1,798 |
|
|
|
|
|
|
| ||||||||||
Cryptocurrency |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 874 |
| $ | 414 |
| $ | 243 |
| $ | 248 |
| $ | 239 |
|
Inflows |
| 75 |
|
| 158 |
|
| 28 |
|
| 10 |
|
| (1 | ) |
Market (depreciation)/appreciation |
| (111 | ) |
| 302 |
|
| 143 |
|
| (15 | ) |
| 10 |
|
End of period assets | $ | 838 |
| $ | 874 |
| $ | 414 |
| $ | 243 |
| $ | 248 |
|
Average assets during the period | $ | 856 |
| $ | 614 |
| $ | 325 |
| $ | 238 |
| $ | 236 |
|
|
|
|
|
|
| ||||||||||
Alternatives |
|
|
|
|
| ||||||||||
Beginning of period assets | $ | 404 |
| $ | 377 |
| $ | 334 |
| $ | 340 |
| $ | 306 |
|
Inflows |
| 15 |
|
| 4 |
|
| 32 |
|
| 5 |
|
| 22 |
|
Market (depreciation)/appreciation |
| (4 | ) |
| 23 |
|
| 11 |
|
| (11 | ) |
| 12 |
|
End of period assets | $ | 415 |
| $ | 404 |
| $ | 377 |
| $ | 334 |
| $ | 340 |
|
Average assets during the period | $ | 408 |
| $ | 391 |
| $ | 342 |
| $ | 342 |
| $ | 320 |
|
|
|
|
|
|
| ||||||||||
Headcount |
| 304 |
|
| 300 |
|
| 303 |
|
| 299 |
|
| 291 |
|
Note: Previously issued statistics may be restated due to fund closures and trade adjustments | |||||||||||||||
Source: WisdomTree |
WISDOMTREE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) | |||||||
|
June 30,
|
Dec. 31,
| |||||
| (Unaudited) |
| |||||
ASSETS |
|
| |||||
Current assets: |
|
| |||||
Cash, cash equivalents and restricted cash | $ | 132,459 |
| $ | 129,305 |
| |
Financial instruments owned, at fair value |
| 69,783 |
|
| 58,722 |
| |
Accounts receivable |
| 42,664 |
|
| 35,473 |
| |
Prepaid expenses |
| 8,595 |
|
| 5,258 |
| |
Other current assets |
| 1,199 |
|
| 1,036 |
| |
Total current assets |
| 254,700 |
|
| 229,794 |
| |
Fixed assets, net |
| 413 |
|
| 427 |
| |
Securities held-to-maturity |
| 218 |
|
| 230 |
| |
Deferred tax assets, net |
| 6,786 |
|
| 11,057 |
| |
Investments |
| 8,288 |
|
| 9,684 |
| |
Right of use assets—operating leases |
| 847 |
|
| 563 |
| |
Goodwill |
| 86,841 |
|
| 86,841 |
| |
Intangible assets, net |
| 605,580 |
|
| 605,082 |
| |
Other noncurrent assets |
| 457 |
|
| 459 |
| |
Total assets | $ | 964,130 |
| $ | 944,137 |
| |
|
|
| |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
| |||||
LIABILITIES |
|
| |||||
Current liabilities: |
|
| |||||
Fund management and administration payable | $ | 26,551 |
| $ | 30,085 |
| |
Compensation and benefits payable |
| 20,315 |
|
| 38,111 |
| |
Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”) |
| 14,804 |
|
| 14,804 |
| |
Income taxes payable |
| 1,830 |
|
| 3,866 |
| |
Operating lease liabilities |
| 847 |
|
| 578 |
| |
Accounts payable and other liabilities |
| 20,341 |
|
| 15,772 |
| |
Total current liabilities |
| 84,688 |
|
| 103,216 |
| |
Convertible notes—long term |
| 275,638 |
|
| 274,888 |
| |
Payable to GBH |
| 25,671 |
|
| 24,328 |
| |
Total liabilities |
| 385,997 |
|
| 402,432 |
| |
Preferred stock: |
|
| |||||
Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding |
| 132,569 |
|
| 132,569 |
| |
STOCKHOLDERS’ EQUITY |
| ||||||
Common stock, par value $0.01; 400,000 shares authorized: |
|
| |||||
Issued and outstanding: 151,857 and 150,330 at June 30, 2024 and December 31, 2023, respectively |
| 1,519 |
|
| 1,503 |
| |
Additional paid-in capital |
| 315,359 |
|
| 312,440 |
| |
Accumulated other comprehensive loss |
| (931 | ) |
| (548 | ) | |
Retained earnings |
| 129,617 |
|
| 95,741 |
| |
Total stockholders’ equity |
| 445,564 |
|
| 409,136 |
| |
Total liabilities and stockholders’ equity | $ | 964,130 |
| $ | 944,137 |
| |
|
|
|
WISDOMTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) | |||||||
Six Months Ended
| |||||||
Cash flows from operating activities: |
| 2024 |
|
| 2023 |
| |
Net income | $ | 43,870 |
| $ | 70,485 |
| |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
| |||||
Advisory and license fees paid in gold, other precious metals and cryptocurrency |
| (25,365 | ) |
| (25,692 | ) | |
Stock-based compensation |
| 10,755 |
|
| 8,506 |
| |
Deferred income taxes |
| 4,326 |
|
| 2,964 |
| |
Gains on financial instruments owned, at fair value |
| (1,772 | ) |
| (947 | ) | |
Imputed interest on payable to GBH |
| 1,342 |
|
| — |
| |
Losses on investments |
| 1,195 |
|
| 819 |
| |
Depreciation and amortization |
| 801 |
|
| 230 |
| |
Amortization of issuance costs—convertible notes |
| 750 |
|
| 1,069 |
| |
Amortization of right of use asset |
| 647 |
|
| 640 |
| |
Gain on revaluation/termination of deferred consideration—gold payments |
| — |
|
| (61,953 | ) | |
Loss on extinguishment of convertible notes |
| — |
|
| 9,721 |
| |
Impairments |
| — |
|
| 4,900 |
| |
Contractual gold payments |
| — |
|
| 6,069 |
| |
Other |
| — |
|
| (946 | ) | |
Changes in operating assets and liabilities: |
|
| |||||
Accounts receivable |
| (7,132 | ) |
| (5,254 | ) | |
Prepaid expenses |
| (3,353 | ) |
| (3,425 | ) | |
Gold and other precious metals |
| 24,972 |
|
| 18,441 |
| |
Other assets |
| (118 | ) |
| 347 |
| |
Fund management and administration payable |
| (3,430 | ) |
| 6,419 |
| |
Compensation and benefits payable |
| (17,657 | ) |
| (18,941 | ) | |
Income taxes payable |
| (2,028 | ) |
| (2,523 | ) | |
Operating lease liabilities |
| (662 | ) |
| (652 | ) | |
Accounts payable and other liabilities |
| 4,031 |
|
| 9,752 |
| |
Net cash provided by operating activities |
| 31,172 |
|
| 20,029 |
| |
Cash flows from investing activities: |
|
| |||||
Purchase of financial instruments owned, at fair value |
| (14,193 | ) |
| (40,532 | ) | |
Purchase of investments |
| — |
|
| (10,000 | ) | |
Cash paid—software development |
| (1,184 | ) |
| — |
| |
Purchase of fixed assets |
| (102 | ) |
| (58 | ) | |
Proceeds from the sale of financial instruments owned, at fair value |
| 5,303 |
|
| 102,020 |
| |
Proceeds from the exit from investment in Securrency, Inc. |
| 465 |
|
| — |
| |
Proceeds from held-to-maturity securities maturing or called prior to maturity |
| 12 |
|
| 14 |
| |
Receipt of contingent consideration—Sale of Canadian ETF business |
| — |
|
| 1,477 |
| |
Acquisition of Securrency Transfers, Inc. (net of cash acquired) |
| — |
|
| (985 | ) | |
Net cash (used in)/provided by investing activities |
| (9,699 | ) |
| 51,936 |
| |
Cash flows from financing activities: |
|
| |||||
Dividends paid |
| (9,873 | ) |
| (9,647 | ) | |
Shares repurchased |
| (7,820 | ) |
| (3,540 | ) | |
Repurchase and maturity of convertible notes |
| — |
|
| (184,272 | ) | |
Proceeds from the issuance of convertible notes |
| — |
|
| 130,000 |
| |
Termination of deferred consideration—gold payments |
| — |
|
| (50,005 | ) | |
Issuance costs—convertible notes |
| — |
|
| (3,548 | ) | |
Issuance costs—Series C Non-Voting Convertible Preferred Stock |
| — |
|
| (97 | ) | |
Net cash used in financing activities |
| (17,693 | ) |
| (121,109 | ) | |
(Decrease)/increase in cash flow due to changes in foreign exchange rate |
| (626 | ) |
| 778 |
| |
Net increase/(decrease) in cash, cash equivalents and restricted cash |
| 3,154 |
|
| (48,366 | ) | |
Cash, cash equivalents and restricted cash—beginning of year |
| 129,305 |
|
| 132,101 |
| |
Cash, cash equivalents and restricted cash—end of period | $ | 132,459 |
| $ | 83,735 |
| |
Supplemental disclosure of cash flow information: |
| ||||||
Cash paid for income taxes | $ | 11,138 |
| $ | 5,900 |
| |
Cash paid for interest | $ | 6,175 |
| $ | 4,514 |
|
Contacts
Investor Relations
Jeremy Campbell
+1.917.267.3859
jeremy.campbell@wisdomtree.com
Corporate Communications
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com
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