Slide 1: Q1 2024 Results
Q1 2024 Results April 26, 2024 WisdomTree – Q1/24 Results 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable
Slide 3: Q1 Highlights
Q1 Highlights AUM 107.2 106.1 + Business momentum continues: 100.1 90.7 93.7 93.7 + Record AUM of +$107b at March 31st, 2024 + Net inflows of $2.0b in Q1 2024 $ billions + Revenue growth of 18% vs. Q1 2023 + 820bps of adjusted operating margin expansion vs. Q1 2023 + Higher fee funds driving net inf
Slide 4: Revenues and Earnings Results
Revenues and Earnings Results Revenues, income, operating margin, EPS Operating margin expansion 1 3 months ended Revenue Adjusted Net Income (non-GAAP) Adjusted operating margins 96.8 Mar. 31, 2024 Mar. 31, 2023 Change 90.4 90.8 85.7 20.3 Operating revenues $96,838 $82,044 18% $ millions 82.0 18.0
Slide 5: Expense Base – Rollforward
+ Higher compensation primarily from seasonal payroll taxes, benefits and other items in connection with the payment of year-end bonuses Expense Base – Rollforward + Higher fund management costs due to higher average AUM + Discretionary spending of $14.9m (maintaining annual guidance of $64m to $68m
Slide 6: 2024 Expense Guidance
2024 Expense Guidance Q1 Updated Prior + Compensation guidance contemplates variability in incentive compensation: Category • Anticipate trending toward the upper half of the range given the strong start to Actual Guidance Guidance the year Compensation $31.1m $108m-$118m Unchanged + Discretionary s
Slide 7: WisdomTree's Growth Algorithm
WisdomTree’s Growth Algorithm Ongoing inflow momentum Add ‘stickier’ inflows from as AUM is levered to attractive expanding and deepening investment themes managed model relationships Early mover into tokenization Tap into scale benefits and charts a course for accelerated improving margins as the l
Slide 8: Strong Organic Growth Profile
Strong Organic Growth Profile + WisdomTree has now generated net inflows in 14 of the past 16 quarters WT’s AUM grew at a 15%+ CAGR over the past three years $110 + Nearly $2b of inflows in Q1 2024, driven by high fee funds $100 + Fee rate on gross inflows was 49 basis points and a key contributor t
Slide 9: WisdomTree Portfolio Solutions Distribution Strategy
WisdomTree Portfolio Solutions Distribution Strategy + WisdomTree’s ability to deliver strong model performance and asset growth allows the firm to WisdomTree has a barbell approach to portfolio solutions distribution navigate rigorous selection processes at some of the leading wealth management fir
Slide 10: WisdomTree Portfolio Solutions: Showcasing the Models Opportunity
WisdomTree Portfolio Solutions: Showcasing the Models Opportunity ADDRESSABLE + Assets under management continue to expand to nearly $3.5 billion through March 2024 + Expect further expansion of accessible market to ~80,000 advisors by year-end 2024 MARKET + Added 1,000 new advisors using at least o
Slide 11: Through the Cycle, Organic Growth Accelerates Scale and Expands Operating Margins
Through the Cycle, Organic Growth Accelerates Scale and Expands Operating Margins Illustrative annual AUM and revenue growth algorithm over the long run Organic growth Market return AUM and revenue growth 5%-10% 5%-10% 10%-20% Illustrative margin outlook from scaling AUM and revenues Q1 2024 adjuste
Slide 12: WisdomTree Prime Footprint Continues to Expand
WisdomTree Prime Footprint Continues to Expand The financial app, built on blockchain tech, that lets you spend, save, transfer, and invest digital assets like Bitcoin, Ether, Gold tokens, Equity Funds, Fixed Income Funds and more. Debit card functionality now available both physically and digitally
Slide 13: The industry is already shifting, though WT is a few years ahead
The industry is already shifting, though WT is a few years ahead March 24 Feb 24 Nov 23 Proof of concept showcasing end to end fund transfer Launches First Tokenized Private Fund, BUIDL, on the workflows to automate operations and utilize money market Proof of concept rebalancing discretionary multi
Slide 14: WisdomTree is a Multifaceted Growth Story
WisdomTree is a Multifaceted Growth Story Diverse products + new launches Models traction Scalability and operating leverage Robust WT Growth Tokenized real world assets Crypto exposures and digital funds Accessible to ~75% of U.S. Population WisdomTree – Q1/24 Results 14
Slide 15: Q&A
Q&A WisdomTree – Q1/24 Results 15
Slide 16: Appendix
Appendix WisdomTree – Q1/24 Results 16
Slide 17: AUM and Net Flows
AUM and Net Flows Quarterly ETP AUM Change Q1/24 Net Flows by Category International Developed 1,599 U.S. Equity 536 Emerging Markets 217 Cryptocurrency 158 Alternative 4 Fixed Income (14) Leveraged/Inverse (50) Commodity & Currency (460) WisdomTree – Q1/24 Results
Slide 18: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) Mar. 31, Dec. 31, ($ millions) 2024 2023 Assets Cash and financial instruments (1) $175.4 $188.2 Investments 9.6 9.7 Accounts receivable 40.0 35.5 Deferred tax asset, net 5.5 11.1 Fixed assets, net 0.4 0.4 Goodwill and intangibles 692.1
Slide 19: Convertible Notes – Illustrative Impact on Quarterly Diluted Shares
Convertible Notes – Illustrative Impact on Quarterly Diluted Shares Incremental shares issuable when conversion spread is positive are included in diluted EPS computation. Illustrative computation shown below assuming a $10 average stock price: Issued 2021 Issued 2023 $150M Notes $130M Notes (2026 M
Slide 20: Consolidated Financial Results
Consolidated Financial Results 2023 2024 Q1 Q2 Q3 Q4 Q1 Revenues Advisory fees $ 77,637 $ 82,004 $ 86,598 $ 86,988 $ 92,501 Other income 4,407 3,720 3,825 3,856 4,337 Total revenues 82,044 85,724 90,423 90,844 96,838 Expenses Compensation and benefits 27,398 26,319 27,955 27,860 31,054 Fund manageme
Slide 21: Non-GAAP Financial Measurements
Non-GAAP Financial Measurements In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when eva
Slide 22: Non-GAAP Reconciliation to GAAP Results
Non-GAAP Reconciliation to GAAP Results Three Months Ended Three Months Ended ($ in thousands) Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 ($ in thous ands ) Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Unaudited 2024 2023 2023 2023 2023 Unaudited 2024 2023 2023 2023 2023 Adjusted net income and diluted ea
Slide 23: Reconciliation of US GAAP to Non-GAAP results
Reconciliation of US GAAP to Non-GAAP results QTD Mar. 31 Gain on Gain on DTA Activist Imputed Tax US GAAP Sec. Owned Inv. Val. Allow Campaign Exp. Interest Windfalls Non-GAAP Revenues Advisory fees $ 92,501 $ - $ - $ - $ - $ - $ - $ 92,501 Other income 4,337 - - - - - - 4,337 Total revenues 96,838
Slide 24: Thank you.
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