Record AUM of $107.2 Billion
870bps of Operating Margin Expansion vs. Q1 2023
Diluted Earnings Per Share of $0.13 ($0.12, as Adjusted)
NEW YORK--(BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the first quarter of 2024.
$22.1 million of net income ($20.3(1) million of net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.
$107.2 billion of ending AUM, an increase of 7.1% from the prior quarter arising from market appreciation and net inflows.
$2.0 billion of net inflows, primarily driven by inflows into our international developed equity and U.S. equity products.
0.36% average advisory fee, unchanged from the prior quarter.
$96.8 million of operating revenues, an increase of 6.6% from the prior quarter primarily due to higher average AUM.
79.4% gross margin(1), a 0.3 point decrease from the prior quarter due to higher fund costs.
28.9% operating income margin (29.6%(1) as adjusted), a 0.2 point increase (0.9 point increase, as adjusted(1)) compared to our operating margin of 28.7% in the prior quarter primarily due to higher revenues.
$0.03 quarterly dividend declared, payable on May 22, 2024 to stockholders of record as of the close of business on May 8, 2024.
Update from Jonathan Steinberg, WisdomTree CEO
“It has been a great start to the year with record AUM, nearly $2 billion of net inflows, and 820 basis points of margin expansion (as adjusted), driving a 71% increase in our earnings per share as compared to the first quarter of last year. Importantly, we expect that momentum to continue as we are executing on our key initiatives to drive the next $100 billion of assets under management: traction in our ETP lineup, an expanding models footprint, and leadership in the secular shift toward tokenization of financial assets.
We achieved several key milestones in the quarter, including the receipt of a trust charter from the New York State Department of Financial Services – the premier regulator for digital asset businesses in the U.S. – and the launch of our debit card to WisdomTree Prime™ users. This key combination not only expands our geographic footprint but also allows us to offer value-added services to our customer base. We continue to believe that tokenized assets and blockchain-enabled finance represent a growth opportunity for WisdomTree, and this quarter’s accomplishments are yet another positive step in unlocking new customers, new markets and new revenue streams.”
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Update from Jarrett Lilien, WisdomTree COO and President
“We are pleased to report that we are delivering strong operating margin expansion and earnings growth, demonstrating our scalable operating model and ability to leverage our AUM growth. We are confident that we have the right strategy, the right products, the right team and the right culture to continue to create value for our clients and stockholders in the long term. We remain extremely bullish about 2024 and beyond as we continue to drive organic growth, expand our margins, and lead the industry's evolution in tokenized assets and blockchain-enabled finance.
For a number of years, we have been alone talking about many of the themes driving our growth, including our diversified product suite, models and the potential of tokenization and blockchain-enabled finance – but now we have company. If you want to know what the industry is going to do tomorrow, look at what WisdomTree is doing today.”
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OPERATING AND FINANCIAL HIGHLIGHTS
| Three Months Ended | ||||||||||||||
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Mar. 31,
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Dec. 31,
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Sept. 30,
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June 30,
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Mar. 31,
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Consolidated Operating Highlights ($ in billions): |
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AUM—end of period | $ | 107.2 | $ | 100.1 | $ | 93.7 | $ | 93.7 | $ | 90.7 | |||||
Net inflows/(outflows) | $ | 2.0 | $ | (0.3) | $ | 2.0 | $ | 2.3 | $ | 6.3 | |||||
Average AUM | $ | 102.4 | $ | 96.6 | $ | 95.7 | $ | 91.6 | $ | 87.5 | |||||
Average advisory fee |
| 0.36% |
| 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 | $ | 96.8 | $ | 90.8 | $ | 90.4 | $ | 85.7 | $ | 82.0 | |||||
Net income | $ | 22.1 | $ | 19.1 | $ | 13.0 | $ | 54.3 | $ | 16.2 | |||||
Diluted earnings per share | $ | 0.13 | $ | 0.16 | $ | 0.07 | $ | 0.32 | $ | 0.10 | |||||
Operating income margin |
| 28.9% |
| 28.7% |
| 29.5% |
| 21.2% |
| 20.2% | |||||
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As Adjusted (Non-GAAP(1)): |
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Gross margin |
| 79.4% |
| 79.7% |
| 80.1% |
| 79.3% |
| 79.1% | |||||
Net income, as adjusted | $ | 20.3 | $ | 18.6 | $ | 18.0 | $ | 14.9 | $ | 11.2 | |||||
Diluted earnings per share, as adjusted | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 0.09 | $ | 0.07 | |||||
Operating income margin, as adjusted |
| 29.6% |
| 28.7% |
| 29.5% |
| 26.9% |
| 21.4% | |||||
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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 | ||||||||||||||
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Mar. 31,
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Dec. 31,
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Sept. 30,
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June 30,
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Mar. 31,
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Operating Revenues: |
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Advisory fees | $ | 92,501 | $ | 86,988 | $ | 86,598 | $ | 82,004 | $ | 77,637 | |||||
Other income |
| 4,337 |
| 3,856 |
| 3,825 |
| 3,720 |
| 4,407 | |||||
Total revenues |
| 96,838 |
| 90,844 |
| 90,423 |
| 85,724 |
| 82,044 | |||||
Operating Expenses: |
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Compensation and benefits |
| 31,054 |
| 27,860 |
| 27,955 |
| 26,319 |
| 27,398 | |||||
Fund management and administration |
| 19,962 |
| 18,445 |
| 18,023 |
| 17,727 |
| 17,153 | |||||
Marketing and advertising |
| 4,408 |
| 4,951 |
| 3,833 |
| 4,465 |
| 4,007 | |||||
Sales and business development |
| 3,611 |
| 3,881 |
| 3,383 |
| 3,326 |
| 2,994 | |||||
Contractual gold payments |
| — |
| — |
| — |
| 1,583 |
| 4,486 | |||||
Professional fees |
| 3,630 |
| 3,201 |
| 3,719 |
| 8,334 |
| 3,715 | |||||
Occupancy, communications and equipment |
| 1,210 |
| 1,208 |
| 1,203 |
| 1,172 |
| 1,101 | |||||
Depreciation and amortization |
| 383 |
| 335 |
| 307 |
| 121 |
| 109 | |||||
Third-party distribution fees |
| 2,307 |
| 2,549 |
| 2,694 |
| 1,881 |
| 2,253 | |||||
Other |
| 2,323 |
| 2,379 |
| 2,601 |
| 2,615 |
| 2,257 | |||||
Total operating expenses |
| 68,888 |
| 64,809 |
| 63,718 |
| 67,543 |
| 65,473 | |||||
Operating income |
| 27,950 |
| 26,035 |
| 26,705 |
| 18,181 |
| 16,571 | |||||
Other Income/(Expenses): |
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|
|
|
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Interest expense. |
| (4,128) |
| (3,758) |
| (3,461) |
| (4,021) |
| (4,002) | |||||
Gain on revaluation/termination of deferred consideration—gold payments |
| — |
| — |
| — |
| 41,361 |
| 20,592 | |||||
Interest income |
| 1,398 |
| 1,225 |
| 791 |
| 1,000 |
| 1,083 | |||||
Impairments |
| — |
| (339) |
| (2,703) |
| — |
| (4,900) | |||||
Loss on extinguishment of convertible notes |
| — |
| — |
| — |
| — |
| (9,721) | |||||
Other gains and losses, net |
| 2,592 |
| 1,602 |
| (2,512) |
| 1,286 |
| (2,007) | |||||
Income before income taxes |
| 27,812 |
| 24,765 |
| 18,820 |
| 57,807 |
| 17,616 | |||||
Income tax expense |
| 5,701 |
| 5,688 |
| 5,836 |
| 3,555 |
| 1,383 | |||||
Net income | $ | 22,111 | $ | 19,077 | $ | 12,984 | $ | 54,252 | $ | 16,233 | |||||
Earnings per share—basic | $ | 0.14(2) | $ | 0.16(2) | $ | 0.07(2) | $ | 0.32(2) | $ | 0.10(2) | |||||
Earnings per share—diluted | $ | 0.13 | $ | 0.16(2) | $ | 0.07 | $ | 0.32 | $ | 0.10 | |||||
Weighted average common shares—basic |
| 146,464 |
| 145,310 |
| 145,284 |
| 144,351 |
| 143,862 | |||||
Weighted average common shares—diluted |
| 165,268 |
| 171,703 |
| 177,140 |
| 170,672 |
| 159,887 | |||||
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As Adjusted (Non-GAAP(1)) | |||||||||||||||
Total operating expenses | $ | 68,193 | $ | 64,809 | $ | 63,718 | $ | 62,630 | $ | 64,506 | |||||
Operating income | $ | 28,645 | $ | 26,035 | $ | 26,705 | $ | 23,094 | $ | 17,538 | |||||
Income before income taxes | $ | 26,987 | $ | 23,908 | $ | 23,902 | $ | 19,752 | $ | 14,485 | |||||
Income tax expense | $ | 6,731 | $ | 5,342 | $ | 5,854 | $ | 4,833 | $ | 3,287 | |||||
Net income | $ | 20,256 | $ | 18,566 | $ | 18,048 | $ | 14,919 | $ | 11,198 | |||||
Earnings per share—diluted | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 0.09 | $ | 0.07 | |||||
Weighted average common shares—diluted |
| 165,268 |
| 171,703 |
| 177,140 |
| 170,672 |
| 159,887 | |||||
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QUARTERLY HIGHLIGHTS
Operating Revenues
- Operating revenues increased 6.6% and 18.0% from the fourth quarter of 2023 and the first quarter of 2023, respectively, primarily due to higher average AUM.
- Our average advisory fee was 0.36% during each of the first quarter of 2024, the fourth quarter of 2023 and the first quarter of 2023.
Operating Expenses
- Operating expenses increased 6.3% from the fourth quarter of 2023 primarily due to higher compensation arising from payroll taxes, benefits and other items in connection with the payment of year-end bonuses, as well as higher fund management and administration costs and professional fees. These increases were partly offset by lower marketing expenses, sales and business development expenses and third-party distribution fees.
- Operating expenses increased 5.2% from the first quarter of 2023 primarily due to higher incentive and stock-based compensation expense and increased headcount, as well as higher fund management and administration costs. These increases were partly offset by the termination of the deferred consideration—gold payments obligation on May 10, 2023.
Other Income/(Expenses)
- Interest expense increased 9.8% from the fourth quarter of 2023 primarily due to the recognition of a full quarter 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. Interest expense increased 3.1% from the first quarter of 2023 due to the recognition of imputed interest on our obligation payable to GBH, partly offset by a lower level of debt outstanding.
- Interest income increased 14.1% and 29.1% from the fourth quarter of 2023 and first quarter of 2023, respectively, due to a higher level of interest-earning assets.
- Other gains and losses, net was a gain of $2.6 million for the first quarter of 2024. This quarter includes gains of $2.1 million and $0.1 million on our financial instruments and our investments, respectively. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold exchange-traded products (“ETPs”), foreign exchange fluctuations and other miscellaneous items.
Income Taxes
- Our effective income tax rate for the first quarter of 2024 was 20.5%, resulting in income tax expense of $5.7 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to the decrease in the deferred tax asset valuation allowance on losses recognized on the Company’s financial instruments owned, tax windfalls associated with the vesting of stock-based compensation awards and a lower tax rate on foreign earnings. These items were partly offset by state and local income taxes.
- Our adjusted effective income tax rate for the first quarter of 2024 was 24.9%(1).
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, April 26, 2024 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=fQD4Npsv.
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. (NMLS ID: 2372500) in select U.S. jurisdictions and may be limited where prohibited by law. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.
WisdomTree currently has approximately $106.0 billion in assets under management globally.
For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.
Please visit us on X, formerly known as Twitter, 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.
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(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 $7,966 recognized upon the repurchase of our Series C non-voting preferred shares convertible into 13.1 million shares of common stock from GBH, which is excluded from net income, but required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This gain is excluded from our EPS when computed on a non-GAAP basis. | |
WISDOMTREE, INC. AND SUBSIDIARIES | |||||||||||||||
KEY OPERATING STATISTICS | |||||||||||||||
(Unaudited) | |||||||||||||||
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| Three Months Ended | ||||||||||||||
| Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | ||||||||||
GLOBAL ETPs ($ in millions) |
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Beginning of period assets | $ | 100,124 | $ | 93,735 | $ | 93,666 | $ | 90,740 | $ | 81,993 | |||||
Inflows/(outflows) |
| 1,990 |
| (255) |
| 1,983 |
| 2,327 |
| 6,341 | |||||
Market appreciation/(depreciation) |
| 5,116 |
| 6,644 |
| (1,914) |
| 599 |
| 2,406 | |||||
End of period assets | $ | 107,230 | $ | 100,124 | $ | 93,735 | $ | 93,666 | $ | 90,740 | |||||
Average assets during the period | $ | 102,435 | $ | 96,547 | $ | 95,743 | $ | 91,578 | $ | 87,508 | |||||
Average advisory fee during the period |
| 0.36% |
| 0.36% |
| 0.36% |
| 0.36% |
| 0.36% | |||||
Revenue days |
| 91 |
| 92 |
| 92 |
| 91 |
| 90 | |||||
Number of ETFs—end of the period |
| 338 |
| 337 |
| 344 |
| 344 |
| 341 | |||||
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U.S. LISTED ETFs ($ in millions) |
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Beginning of period assets | $ | 72,486 | $ | 68,018 | $ | 65,903 | $ | 61,283 | $ | 55,973 | |||||
Inflows/(outflows) |
| 1,983 |
| (67) |
| 3,601 |
| 3,249 |
| 4,012 | |||||
Market appreciation/(depreciation) |
| 3,618 |
| 4,535 |
| (1,486) |
| 1,371 |
| 1,298 | |||||
End of period assets | $ | 78,087 | $ | 72,486 | $ | 68,018 | $ | 65,903 | $ | 61,283 | |||||
Average assets during the period | $ | 74,805 | $ | 69,707 | $ | 68,008 | $ | 62,712 | $ | 59,430 | |||||
Number of ETFs—end of the period |
| 77 |
| 76 |
| 80 |
| 80 |
| 80 | |||||
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EUROPEAN LISTED ETPs ($ in millions) |
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Beginning of period assets | $ | 27,638 | $ | 25,717 | $ | 27,763 | $ | 29,457 | $ | 26,020 | |||||
Inflows/(outflows) |
| 7 |
| (188) |
| (1,618) |
| (922) |
| 2,329 | |||||
Market appreciation/(depreciation) |
| 1,498 |
| 2,109 |
| (428) |
| (772) |
| 1,108 | |||||
End of period assets | $ | 29,143 | $ | 27,638 | $ | 25,717 | $ | 27,763 | $ | 29,457 | |||||
Average assets during the period | $ | 27,630 | $ | 26,840 | $ | 27,735 | $ | 28,866 | $ | 28,078 | |||||
Number of ETPs—end of the period |
| 261 |
| 261 |
| 264 |
| 264 |
| 261 | |||||
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PRODUCT CATEGORIES ($ in millions) |
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U.S. Equity |
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Beginning of period assets | $ | 29,156 | $ | 25,643 | $ | 26,001 | $ | 24,534 | $ | 24,112 | |||||
Inflows/(outflows) |
| 536 |
| 487 |
| 864 |
| 414 |
| (149) | |||||
Market appreciation/(depreciation) |
| 1,978 |
| 3,026 |
| (1,222) |
| 1,053 |
| 571 | |||||
End of period assets | $ | 31,670 | $ | 29,156 | $ | 25,643 | $ | 26,001 | $ | 24,534 | |||||
Average assets during the period | $ | 30,130 | $ | 26,835 | $ | 26,501 | $ | 24,732 | $ | 24,725 | |||||
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Commodity & Currency |
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Beginning of period assets | $ | 21,336 | $ | 20,466 | $ | 22,384 | $ | 24,924 | $ | 22,097 | |||||
(Outflows)/inflows |
| (460) |
| (449) |
| (1,814) |
| (1,513) |
| 2,003 | |||||
Market appreciation/(depreciation) |
| 1,068 |
| 1,319 |
| (104) |
| (1,027) |
| 824 | |||||
End of period assets | $ | 21,944 | $ | 21,336 | $ | 20,466 | $ | 22,384 | $ | 24,924 | |||||
Average assets during the period | $ | 20,838 | $ | 21,254 | $ | 22,278 | $ | 24,033 | $ | 23,807 | |||||
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Fixed Income |
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Beginning of period assets | $ | 21,197 | $ | 21,797 | $ | 20,215 | $ | 18,708 | $ | 15,273 | |||||
(Outflows)/inflows |
| (14) |
| (715) |
| 1,670 |
| 1,471 |
| 3,513 | |||||
Market appreciation/(depreciation) |
| 35 |
| 115 |
| (88) |
| 36 |
| (78) | |||||
End of period assets | $ | 21,218 | $ | 21,197 | $ | 21,797 | $ | 20,215 | $ | 18,708 | |||||
Average assets during the period | $ | 21,082 | $ | 21,889 | $ | 20,965 | $ | 19,185 | $ | 17,176 | |||||
| Three Months Ended | ||||||||||||||
| Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | ||||||||||
International Developed Market Equity |
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Beginning of period assets | $ | 15,103 | $ | 13,902 | $ | 13,423 | $ | 11,433 | $ | 10,195 | |||||
Inflows |
| 1,599 |
| 9 |
| 798 |
| 1,593 |
| 450 | |||||
Market appreciation/(depreciation) |
| 1,401 |
| 1,192 |
| (319) |
| 397 |
| 788 | |||||
End of period assets | $ | 18,103 | $ | 15,103 | $ | 13,902 | $ | 13,423 | $ | 11,433 | |||||
Average assets during the period | $ | 16,688 | $ | 14,266 | $ | 13,873 | $ | 12,276 | $ | 10,879 | |||||
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Emerging Market Equity |
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Beginning of period assets | $ | 10,726 | $ | 9,569 | $ | 9,191 | $ | 8,811 | $ | 8,116 | |||||
Inflows |
| 217 |
| 412 |
| 451 |
| 329 |
| 486 | |||||
Market appreciation/(depreciation) |
| 246 |
| 745 |
| (73) |
| 51 |
| 209 | |||||
End of period assets | $ | 11,189 | $ | 10,726 | $ | 9,569 | $ | 9,191 | $ | 8,811 | |||||
Average assets during the period | $ | 10,900 | $ | 9,833 | $ | 9,652 | $ | 8,998 | $ | 8,666 | |||||
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Leveraged & Inverse |
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Beginning of period assets | $ | 1,815 | $ | 1,781 | $ | 1,864 | $ | 1,785 | $ | 1,754 | |||||
(Outflows)/inflows |
| (50) |
| (59) |
| (1) |
| 12 |
| 43 | |||||
Market appreciation/(depreciation) |
| 63 |
| 93 |
| (82) |
| 67 |
| (12) | |||||
End of period assets | $ | 1,828 | $ | 1,815 | $ | 1,781 | $ | 1,864 | $ | 1,785 | |||||
Average assets during the period | $ | 1,792 | $ | 1,803 | $ | 1,894 | $ | 1,798 | $ | 1,757 | |||||
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Cryptocurrency |
|
|
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Beginning of period assets | $ | 414 | $ | 243 | $ | 248 | $ | 239 | $ | 136 | |||||
Inflows/(outflows) |
| 158 |
| 28 |
| 10 |
| (1) |
| 13 | |||||
Market appreciation/(depreciation) |
| 302 |
| 143 |
| (15) |
| 10 |
| 90 | |||||
End of period assets | $ | 874 | $ | 414 | $ | 243 | $ | 248 | $ | 239 | |||||
Average assets during the period | $ | 614 | $ | 325 | $ | 238 | $ | 236 | $ | 190 | |||||
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Alternatives |
|
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|
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Beginning of period assets | $ | 377 | $ | 334 | $ | 340 | $ | 306 | $ | 310 | |||||
Inflows/(outflows) |
| 4 |
| 32 |
| 5 |
| 22 |
| (18) | |||||
Market appreciation/(depreciation) |
| 23 |
| 11 |
| (11) |
| 12 |
| 14 | |||||
End of period assets | $ | 404 | $ | 377 | $ | 334 | $ | 340 | $ | 306 | |||||
Average assets during the period | $ | 391 | $ | 342 | $ | 342 | $ | 320 | $ | 308 | |||||
|
|
|
|
|
| ||||||||||
Headcount |
| 300 |
| 303 |
| 299 |
| 291 |
| 279 | |||||
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) | ||||||
|
| March 31, |
| Dec 31, | ||
| 2024 | 2023 | ||||
| (Unaudited) |
| ||||
ASSETS |
|
| ||||
Current assets: |
|
| ||||
Cash, cash equivalents and restricted cash | $ | 116,926 | $ | 129,305 | ||
Financial instruments owned, at fair value |
| 58,301 |
| 58,722 | ||
Accounts receivable |
| 40,020 |
| 35,473 | ||
Prepaid expenses |
| 6,491 |
| 5,258 | ||
Other current assets |
| 1,284 |
| 1,036 | ||
Total current assets |
| 223,022 |
| 229,794 | ||
Fixed assets, net |
| 436 |
| 427 | ||
Securities held-to-maturity |
| 224 |
| 230 | ||
Deferred tax assets, net |
| 5,477 |
| 11,057 | ||
Investments |
| 9,606 |
| 9,684 | ||
Right of use assets—operating leases |
| 243 |
| 563 | ||
Goodwill |
| 86,841 |
| 86,841 | ||
Intangible assets, net |
| 605,347 |
| 605,082 | ||
Other noncurrent assets |
| 456 |
| 459 | ||
Total assets | $ | 931,652 | $ | 944,137 | ||
|
|
| ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
| ||||
LIABILITIES |
|
| ||||
Current liabilities: |
|
| ||||
Fund management and administration payable | $ | 32,665 | $ | 30,085 | ||
Compensation and benefits payable |
| 9,624 |
| 38,111 | ||
Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”) |
| 14,804 |
| 14,804 | ||
Income taxes payable |
| 1,140 |
| 3,866 | ||
Operating lease liabilities |
| 251 |
| 578 | ||
Accounts payable and other liabilities |
| 17,105 |
| 15,772 | ||
Total current liabilities |
| 75,589 |
| 103,216 | ||
Convertible notes—long term |
| 275,263 |
| 274,888 | ||
Payable to GBH |
| 24,994 |
| 24,328 | ||
Total liabilities |
| 375,846 |
| 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: 151,819 and 150,330 at March 31, 2024 and December 31, 2023, respectively |
| 1,518 |
| 1,503 | ||
Additional paid-in capital |
| 309,768 |
| 312,440 | ||
Accumulated other comprehensive loss |
| (907) |
| (548) | ||
Retained earnings |
| 112,858 |
| 95,741 | ||
Total stockholders’ equity |
| 423,237 |
| 409,136 | ||
Total liabilities and stockholders’ equity | $ | 931,652 | $ | 944,137 | ||
|
|
| ||||
WISDOMTREE, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(in thousands) | ||||||
(Unaudited) | ||||||
| Three Months Ended | |||||
| March 31, | |||||
|
| 2024 |
| 2023 | ||
Cash flows from operating activities: | ||||||
Net income | $ | 22,111 | $ | 16,233 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||
Advisory and license fees paid in gold, other precious metals and cryptocurrency |
| (11,727) |
| (12,760) | ||
Deferred income taxes |
| 5,640 |
| 4,783 | ||
Stock-based compensation |
| 5,163 |
| 4,536 | ||
Gains on financial instruments owned, at fair value |
| (2,063) |
| (1,954) | ||
Imputed interest on payable to GBH |
| 666 |
| — | ||
Depreciation and amortization |
| 383 |
| 109 | ||
Amortization of issuance costs—convertible notes |
| 375 |
| 579 | ||
Amortization of right of use asset |
| 324 |
| 319 | ||
Gains on investments |
| (123) |
| 3,919 | ||
Gain on revaluation/termination of deferred consideration—gold payments |
| — |
| (20,592) | ||
Loss on extinguishment of convertible notes |
| — |
| 9,721 | ||
Impairments |
| — |
| 4,900 | ||
Contractual gold payments |
| — |
| 4,486 | ||
Other |
| — |
| (452) | ||
Changes in operating assets and liabilities: | ||||||
Accounts receivable |
| (4,243) |
| (4,791) | ||
Prepaid expenses |
| (1,247) |
| (1,161) | ||
Gold and other precious metals |
| 11,561 |
| 8,332 | ||
Other assets |
| (79) |
| 167 | ||
Fund management and administration payable |
| 2,659 |
| 3,638 | ||
Compensation and benefits payable |
| (28,386) |
| (27,271) | ||
Income taxes payable |
| (2,723) |
| (3,418) | ||
Operating lease liabilities |
| (332) |
| (326) | ||
Accounts payable and other liabilities |
| 1,003 |
| 5,606 | ||
Net cash used in operating activities |
| (1,038) |
| (5,397) | ||
Cash flows from investing activities: | ||||||
Purchase of financial instruments owned, at fair value |
| (2,500) |
| (20,278) | ||
Cash paid—software development |
| (592) |
| — | ||
Purchase of fixed assets |
| (66) |
| (26) | ||
Proceeds from the sale of financial instruments owned, at fair value |
| 5,180 |
| 18,290 | ||
Proceeds from held-to-maturity securities maturing or called prior to maturity |
| 6 |
| 6 | ||
Net cash provided by/(used in) investing activities |
| 2,028 |
| (2,008) | ||
Cash flows from financing activities: | ||||||
Dividends paid |
| (4,997) |
| (4,821) | ||
Shares repurchased |
| (7,820) |
| (3,384) | ||
Repurchase of convertible notes |
| — |
| (124,317) | ||
Issuance costs—convertible notes |
| — |
| (3,548) | ||
Proceeds from the issuance of convertible notes |
| — |
| 130,000 | ||
Net cash used in financing activities |
| (12,817) |
| (6,070) | ||
(Decrease)/increase in cash flow due to changes in foreign exchange rate |
| (552) |
| 473 | ||
Net decrease in cash, cash equivalents and restricted cash |
| (12,379) |
| (13,002) | ||
Cash, cash equivalents and restricted cash—beginning of year |
| 129,305 |
| 132,101 | ||
Cash, cash equivalents and restricted cash—end of period | $ | 116,926 | $ | 119,099 | ||
Supplemental disclosure of cash flow information: | ||||||
Cash paid for income taxes | $ | 2,769 | $ | 1,422 | ||
Cash paid for interest | $ | 3,738 | $ | 801 | ||
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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