Victory Capital Reports Strong Fourth-Quarter and Full-Year 2023 Results

About this update from Victory Capital Holdings, Inc. Class A Common Stock

[{"type":"text","content":"\nFourth-Quarter 2023 Highlights\n\n\n\nTotal Assets Under Management (AUM) of $166.6 billion1\n\n\n\nLong-term gross flows of $6.6 billion in the quarter\n\n\n\nLong-term net flows of ($1.1) billion in the quarter\n\n\n\nGAAP operating margin of 41.9%\n\n\n\nAdjusted EBITDA margin of 52.3% in the quarter2\n\n\n\nGAAP net income of $0.82 per diluted share\n\n\n\nAdjusted net income with tax benefit of $1.15 per diluted share2\n\n\n\nBoard increased regular quarterly cash dividend by 5% to $0.335\n\n\n\n SAN ANTONIO--(BUSINESS WIRE)--\nVictory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or “the Company”) today reported financial results for the quarter and year ended December 31, 2023.\n\n\n“We made significant progress in our strategic growth initiatives during 2023 and continued to validate the effectiveness and resiliency of our unique operating platform,” said David Brown, Chairman and Chief Executive Officer. “We invested in our business via the launching of several new products, enhancing our investment capabilities in several areas, and expanding our technology resources across the platform. Concurrently, we also expanded our profit margin with adjusted EBITDA margin rising 130 basis points to 50.9% for the year.\n\n\n“In the final quarter of 2023, both long-term gross and net flows improved to their best levels in more than a year, which is encouraging as we begin 2024.\n\n\n“Our Franchises continued to deliver excellent investment performance for clients. At year end, the percentage of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was 62%, 84%, and 79%. In addition, 70% of our AUM in mutual funds and ETFs were rated four or five stars overall by Morningstar.\n\n\n“During the fourth quarter, we repurchased an additional 1.8 million shares, increasing the capital returned to shareholders from repurchases during the year to $158 million. Combined with cash dividends, we returned $243 million to shareholders in 2023, an increase of 21% over the previous year, and the most we have ever returned to our shareholders in our Company’s history.\n\n\n“Our M&A diligence activities have progressed, and entering the new year we are optimistic about the prospects for executing on a transaction aligned with our strategic growth objectives.\n\n\n“As always, we continue to focus on serving o...

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