Slide 1: Q1 2023 Results
Q1 2023 Results April 28, 2023
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: Q1/23 Highlights
Q1/23 Highlights + Net inflows of $6.3b for the quarter primarily driven by inflows AUM into fixed income, commodity, emerging markets and ($ billions) international equity products: – 3rd best quarter in our history – 10 straight quarters of net inflows globally – Europe inflows of $2.3 billion + Y
Slide 4: Revenues and Earnings Results
Revenues and Earnings Results Revenue, Income, Operating Margin, EPS Highlights/Unusual Items ($ millions) Total Revenues Adjusted Net Income (non-GAAP)(1) + Revenues up 11.9% from prior quarter due to higher average AUM and higher other income (from large flows into some of our European products) +
Slide 5: Expense Base - Rollforward
Expense Base - Rollforward Expense Base Change – Q4/22 to Q1/23 (1) ($ in thousands) + Higher compensation primarily from seasonal payroll taxes, benefits and other items in connection with the payment of year-end bonuses + Higher third-party distribution fees from higher AUM on platforms + Discreti
Slide 6: 2023 Expense Guidance
2023 Expense Guidance + Compensation guidance range narrowed – Anticipate trending toward the high Q1 Updated Prior end of the range given strong start to Expense Item Actual Guidance Guidance the year Compensation $27.4m $100m-$106m $96m-$106m + Discretionary spending guidance unchanged as we antic
Slide 7: WisdomTree's Growth Algorithm
WisdomTree’s Growth Algorithm Ongoing Inflow Momentum as AUM is Levered to Attractive Investment Themes Add ‘Stickier’ Inflows from Expanding & Deepening Managed Model Relationships Early Mover into Digital Assets Charts a Course for Accelerated Long-Term Growth Tap into Scale Benefits and Improving
Slide 8: WisdomTree's Product Lineup has Strong Performance
WisdomTree’s Product Lineup has Strong Performance 3-Yr Lookback at Trailing 12-Month Net Inflow Rate + Net inflow momentum has accelerated from 2022 into 2023 + Q1 2023 summary statistics – 31% firm-wide pace of organic growth – Fixed Income gathered over $3.5 billion of inflows for a ~93% pace of
Slide 9: WisdomTree's Managed Models Franchise Supports & Accelerates
Expanding Footprint in Managed Models is Additive to Organic Growth WisdomTree’s Managed Models Franchise Greater ‘Stickier’ ‘Stackable’ on Share of Inflows & top of Advisor WisdomTree’s AUM Current Inflows Wallets Expanding managed model Offering New provider partners & deepening Growth Oriented cu
Slide 10: Material Margin Improvement
Through the Cycle, Organic Growth Accelerates Scale & Expands Op Margins Illustrative Annual AUM & Revenue Growth Algorithm over the Long-Run 5% - 10% 5% - 10% 10% - 20% Organic Growth Market Return AUM & Revenue Growth Illustrative Margin Outlook from Scaling AUM & Revenue 21.4% Material Margin 50%
Slide 11: WisdomTree's Digital Assets Strategy Simplified
WisdomTree’s Digital Assets Strategy Simplified Digital World of Blockchain & Crypto • Smart Contracts, Blockchain & Crypto Assets • Digital Wallets & WisdomTree Prime™ WisdomTree is Bringing Crypto Assets into the Mainstream Financial Ecosystem… … and Mainstream Assets into the Digital Ecosystem th
Slide 12: Robust Digital Product Suite for Broad Public Roll-Out
Robust Digital Product Suite for Broad Public Roll-Out (with More to Come) Blockchain-Enabled Equity Funds Blockchain-Enabled Bond Funds • Floating Rate Treasury Digital Fund • WisdomTree 500 Digital Fund • Short-Term Treasury Digital Fund • Technology & Innovation 100 Digital Fund • 3-7 Year Treasu
Slide 13: Introducing WisdomTree Prime
™ Introducing WisdomTree Prime. ™ The new digital wallet, built on blockchain, that lets you spend, save, transfer, send, and invest digital assets like bitcoin, U.S. dollar tokens, Gold tokens, and more. Do more with one digital wallet. • Save • Spend • Invest • Pay back your Buddy • Buy a Latte •
Slide 14: WisdomTree is a Multifaceted Growth Story
WisdomTree is a Multifaceted Growth Story Diverse Products + New Launches Scalability & Models Operating Traction Leverage Robust WT Growth Tokenized Crypto Real World Exposures Assets & Digital Funds ™ In App Stores in Q2 WisdomTree – Q1/23 Results 14
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: AUM and Net Inflows
AUM and Net Inflows Quarterly ETF AUM Change Q1/23 Net Flows by Category ($ billions) ($ millions) Fixed Income 3,513 Commodity & Currency 2,003 Emerging Markets 486 International Developed 450 Leveraged/Inverse 43 Cryptocurrency 13 Closed - Alternative (18) U.S. Equity (149) WisdomTree – Q1/23 Resu
Slide 18: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) ($ millions) Mar. 31, Dec. 31, ($ millions) 2023 2022 Assets (1) Cash and financial instruments $249.6 $258.6 Investments 26.9 35.7 Accounts receivable 35.5 30.5 Deferred tax asset, net 5.9 10.5 Fixed assets, net 0.5 0.5 Goodwill and in
Slide 19: Convertible Notes - EPS
Convertible Notes - EPS Incremental shares issuable when conversion spread is positive are included in diluted EPS computation. Q1 2023 computations shown below: Issued 2020 Issued 2021 Issued 2023 $60M Notes $150M Notes $130M Notes Conversion Spread WT Avg Price in Qtr $5.82 $5.82 $5.82 − Conversio
Slide 20: Consolidated Financial Results
Consolidated Financial Results 2022 2023 Q1 Q2 Q3 Q4 Q1 Revenues Advisory fees $ 76,517 $ 75,586 $ 70,616 $ 70,913 $ 77,637 Other income 1,851 1,667 1,798 2,397 4,407 Total revenues 78,368 77,253 72,414 73,310 82,044 Expenses Compensation and benefits 24,787 24,565 23,714 24,831 27,398 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 Jun. 30 Mar. 31 ($ in thousands) Mar. 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31 Unaudited 2023 2022 2022 2022 2022 Unaudited 2023 2022 2022 2022 2022 Adjusted net income and diluted earn
Slide 23: Reconciliation of US GAAP to Non-GAAP results
Reconciliation of US GAAP to Non-GAAP results Three Months ended March 31, 2023 Gain on Loss Contingent QTD March Def. on Extinguish Loss on Gain on Consideration Activist DTA Reduction of Tax US GAAP Consid. Converts Inv. Sec. Owned Canada Campaign Exp. Val. Allow Tax Indemn. Windfalls Non-GAAP Rev
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