Q2 2024 Moelis & Co Earnings Call Transcript
Key Points
- Moelis & Co (MC) reported $265 million in revenues for Q2 2024, a 45% increase from the prior year.
- First half revenues of $482 million were up 31% from the previous year, showing strong growth across all major product areas.
- The company maintains a strong balance sheet with $191.3 million in cash and no debt.
- The capital markets business had its best quarter since Q1 2022, driven by high demand for hybrid capital and private credit.
- Moelis & Co (MC) added three managing directors focused on technology, industrials, and capital structure advisory, indicating a commitment to talent acquisition and growth.
- Compensation expense remains high, accrued at 75%, which could impact profitability.
- The underlying corporate tax rate is 34%, which is relatively high and consistent with the first quarter.
- The sponsor community has not yet returned to full speed, which could impact future revenue growth.
- The deal environment remains complex and challenging, with transactions taking longer to close compared to the 2021 environment.
- There is uncertainty regarding the impact of potential changes in administration and FTC policies on M&A activity, which could affect future deal flow.
Good afternoon, and welcome to the Moelis & Company's earnings conference call for the second quarter of 2024. I'll begin the call by turning the call over to Mr. Matt Tsukroff. Please go ahead.
Good afternoon, and thank you for joining us for Moelis & Company's second quarter 2024 financial results conference call. On the phone today are Ken Moelis, Chairman and CEO; and Joe Simon, Chief Financial Officer.
Before we begin, I would like to note that the remarks made on this call may contain certain forward-looking statements, which are subject to various risks and uncertainties, including those identified from time to time in the risk factors section of Moelis & Company's filings with the SEC.
Actual results could differ materially from those currently anticipated. The firm undertakes no obligation to update any forward looking statements. Our comments today include references to certain adjusted financial measures. We believe these measures when presented together with
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