Slide 1: Q3 2023 Results
Q3 2023 Results October 27, 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: Q3/23 Highlights
Q3/23 Highlights + Net inflows of $2.0b for the quarter primarily driven by inflows AUM into fixed income, U.S. equity, international equity and ($ billions) 90.7 93.7 93.7 94.1 emerging markets products, partly offset by commodity 82.0 outflows: 70.9 – 12 straight quarters of net inflows globally –
Slide 4: Revenues and Earnings Results
Revenues and Earnings Results Adjusted Operating Margin (ex. Termination of Revenue, Income, Operating Margin, EPS Contractual Gold Payments) ($ millions) Three Months Ended Total Revenues Adjusted Net Income (non-GAAP)(1) Sept. 30, Sept. 30, Adjusted Operating Margins (YTD) 2023 2022 Change Operati
Slide 5: Expense Base - Rollforward
Expense Base - Rollforward Expense Base Change – Q2/23 to Q3/23 (1) ($ in thousands) + Higher incentive compensation driven by strong performance + Higher third-party distribution fees due to AUM growth in Latin America (+70% YTD) + Lower contractual gold payments (terminated in May 2023) + Lower se
Slide 6: 2023 Expense Guidance
2023 Expense Guidance YTD 9/30 Updated Prior + Compensation guidance: Expense Item – High-End of the range considering Actual Guidance Guidance organic flow growth, revenue growth, Compensation $81.7m $104m-$110m unchanged margin expansion and share price performance in relation to peers Discretiona
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 Tokenization Charts a Course for Accelerated Long-Term Growth Tap into Scale Benefits and Improving M
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 + Nearly $11b of inflows through Q3 after generating $12b of net inflows in 2022 + Best-in-class 17.4% YTD annualized organic growth rate, including net inflows in 7 of 8 major product categories +
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: Expanding Footprint in Managed Models is Additive to Organic Growth
Expanding Footprint in Managed Models is Additive to Organic Growth + Over $2.5b in Managed Models AUM today after launching the models initiative in early 2020 + Managed Models strategy is twofold: + Continue to build a large group of recurring model users at our large distribution partners + Lever
Slide 11: 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 29.5% Material Margin 50%
Slide 12: WisdomTree Prime is Live in 33 States
WisdomTree Prime™ is Live in 33 States 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. With the launch of 12 additional states in October, WisdomTree Prime™ is now
Slide 13: Asset Tokenization & Digital Funds: Significant Distribution Optionality
Asset Tokenization & Digital Funds: Significant Distribution Optionality B2B and B2B2C (OUTSIDE APP) DIRECT TO CUSTOMER (IN APP) Equity Gold Digital Fixed Token Funds Income Siegel Money Funds Market WUSD BTC ETH Crypto Indexes ETPs WisdomTree – Q3/23 Results 13
Slide 14: The Industry is Already Shifting, though WT is a Few Years Ahead
The Industry is Already Shifting, though WT is a Few Years Ahead How Traditional Financial Services Peers Approach Tokenization October 2023: JPMorgan launches Tokenized BlackRock Money Market Fund Shares as Collateral with Barclays through JPM’s Tokenized Collateral Network (TCN) December 2022: Bla
Slide 15: 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 ™ Live in 33 States WisdomTree – Q3/23 Results 15
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: AUM and Net Inflows
AUM and Net Inflows Quarterly ETP AUM Change Q3/23 Net Flows by Category ($ billions) ($ millions) Fixed Income 1,675 U.S. Equity 864 International Developed 798 Emerging Markets 451 Cryptocurrency 10 Alternative 5 Leveraged/Inverse (1) Closed (4) Commodity & Currency (1,815) WisdomTree – Q3/23 Resu
Slide 19: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) ($ millions) Sept. 30, Dec. 31, ($ millions) 2023 2022 Assets Cash and financial instruments (1) $168.7 $258.6 Investments 36.9 35.7 Accounts receivable 35.9 30.5 Deferred tax asset, net 9.5 10.5 Fixed assets, net 0.5 0.5 Goodwill and i
Slide 20: Consolidated Financial Results
Consolidated Financial Results 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenues Advisory fees $ 76,517 $ 75,586 $ 70,616 $ 70,913 $ 77,637 $ 82,004 $ 86,598 Other income 1,851 1,667 1,798 2,397 4,407 3,720 3,825 Total revenues 78,368 77,253 72,414 73,310 82,044 85,724 90,423 Expenses Compensation and benefit
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) Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 ($ in thousands) Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 Unaudited 2023 2023 2023 2022 2022 Unaudited 2023 2023 2023 2022 2022 Adjusted net income and diluted ea
Slide 23: Reconciliation of US GAAP to Non-GAAP results
Reconciliation of US GAAP to Non-GAAP results Three Months ended September 30, 2023 QTD Sept. Loss on Loss on DTA Tax US GAAP Impairments Sec. Owned Inv. Val. Allow Windfalls Non-GAAP Revenues Advisory fees $ 86,598 $ - $ - $ - $ - $ - $ 86,598 Other income 3,825 - - - - - 3,825 Total revenues 90,42
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