Q3 2024 WisdomTree Inc Earnings Call Transcript
Key Points
- WisdomTree Inc (WT) achieved record assets under management (AUM) of $113 billion, highlighting the robustness of its business model.
- The company reported a significant 80% increase in earnings per share year-over-year, demonstrating strong financial performance.
- WisdomTree Inc (WT) successfully executed strategic capital management actions, including a 9% accretive transaction through stock repurchases and convertible note issuance.
- The company expanded its operating margin by 800 basis points to 37.3%, reflecting effective cost management and scale benefits.
- WisdomTree Inc (WT) is positioning itself as an early mover in the tokenization space, with platforms like WisdomTree Prime and WisdomTree Connect, which are expected to create meaningful revenue opportunities.
- WisdomTree Inc (WT) experienced $2.4 billion in outflows during the third quarter, primarily from its currency-hedged Japan product and other tactical products.
- The company faced headwinds from falling interest rates, a weaker dollar, and profit-taking in commodities, impacting net flows.
- WisdomTree Inc (WT) had to raise financing through new convertible notes to facilitate stock repurchases, increasing its interest expense guidance.
- The rollout of WisdomTree Prime has been slower than anticipated due to regulatory challenges, delaying its full availability across the U.S.
- Despite growth in the models business, penetration remains limited with only 2,500 advisors actively using at least one model, indicating room for improvement in adoption.
Greetings and welcome to the Wisdom Tree third quarter, 2024 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone you require operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jeremy Campbell, head of Investor relations. Thank you, Jeremy Campbell. You may begin.
Good morning.
Before we begin, I would like to reference our legal disclaimer available in today's presentation.
This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995.
A number of factors could cause actual results to differ materially from the results discussed, informed leading statements including but not limited to the risks set forth in the presentation in the risk factor section of wires. Annual report on form 10
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