Victory Capital Reports Strong Second Quarter Earnings

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

[{"type":"text","content":"\nSecond-Quarter 2023 Highlights\n\n\n\nTotal Assets Under Management (AUM) of $161.6 billion1\n\n\n\nLong-term gross flows of $5.6 billion\n\n\n\nLong-term net flows of ($2.1) billion\n\n\n\nGAAP operating margin of 42.9%\n\n\n\nAdjusted EBITDA margin of 50.9%2\n\n\n\nGAAP net income of $0.83 per diluted share\n\n\n\nAdjusted net income with tax benefit of $1.11 per diluted share2\n\n\n\nBoard authorizes regular $0.32 quarterly cash dividend\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 ended June 30, 2023.\n\n\n“Our investment performance has remained very strong during the second quarter and first half of this year,” said David Brown, Chairman and Chief Executive Officer. “Through the end of June, the percentage of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was 72%, 79%, and 77%.\n\n\n“Adjusted EBITDA margin expanded to 50.9% in the second quarter. This was our 12th consecutive quarter above our 49% guidance, and the 8th out of the last 12 quarters that our margins were in excess of 50%.\n\n\n“Overall, excluding the previously disclosed passive low-fee redemption in April, long-term net flows improved for the second consecutive quarter. Entering the year’s second half, we are encouraged about our net flow outlook through the end of this year and into next.\n\n\n“We continued our strong capital return to shareholders during the quarter with the repurchase of 1.5 million shares, which is the most for any quarter in our history and we paid out $21 million in cash dividends. Additionally, our due diligence activities remain ongoing as we continue to evaluate inorganic growth opportunities.\n\n\n“As always, we continue to focus on serving our clients, which is our top priority.”\n\n\n\n\n1 Total AUM includes both discretionary and non-discretionary client assets.\n\n\n\n\n\n\n\n\n2 The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section “Information Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of Non-GAAP...

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