Slide 1: Q3 2024 Results
Q3 2024 Results October 25, 2024 WisdomTree – Q3/24 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: Q3 Highlights
Q3 Highlights AUM 109.7 112.6 112.9 + Record AUM and strong financial results: 107.2 100.1 + Record AUM of +$112.6b at Sept. 30th, 2024 93.7 + Adjusted revenue growth of 21.1% vs. Q3 2023 (+21.2% vs. YTD Sept. 2023) $ billions + 820bps of adjusted operating margin expansion vs. YTD Sept. 2023 + Net
Slide 4: Revenues and Earnings Results
Revenues and Earnings Results Adjusted Revenues, income, operating margin, EPS Operating margin expansion (as adjusted) Adjusted Revenues 1 Adjusted Net Income (non-GAAP) 1 9 months ended 107.0 109.5 Adjusted operating margins Sept. 30, Sept. 30, Change 2024 2023 96.4 28.8 27.1 $ millions 90.4 90.8
Slide 5: 2024 Guidance Update
2024 Guidance Update + Discretionary spending guidance reduced YTD Updated Prior Category • Range is largely dependent on magnitude of marketing spend associated with Sept. 2024 Guidance Guidance WisdomTree Prime over the remainder of the year Compensation to revenue ratio(1) 29.1% 28%-29% Unchanged
Slide 6: 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 as AUM charts a course for accelerated and revenue growth expa
Slide 7: AUM grew at a ~16% compound growth rate over the past three years
AUM grew at a ~16% compound growth rate over the past three years to record highs + AUM eclipsed $113 billion during Q3, a new record high $110 + Over the past three years, AUM has grown at a ~16% compound annual growth rate, largely driven by robust net inflows in 15 of the past 17 quarters + Expec
Slide 8: 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 9: WisdomTree Portfolio Solutions: Managed Models Opportunity
WisdomTree Portfolio Solutions Managed Models Opportunity ADDRESSABLE Expanding the Accessible Models Market MARKET + Expect accessible market to expand by over 5,000 advisors in the next few weeks as we • 300,000 Advisors partner with another large wealth management platform • $27 Trillion AUM + Ex
Slide 10: Through the Cycle, Organic Growth Accelerates Scale and Expands Operating Margins
Through the Cycle, Organic Growth Accelerates Scale and Expands Operating Margins Illustrative annual AUM and revenue growth algorithm over the long run Organic growth Market return AUM and revenue growth 5%-10% 5%-10% 10%-20% Illustrative margin outlook from scaling AUM and revenues YTD September 2
Slide 11: The WisdomTree Digital Assets Platform
The WisdomTree Digital Assets Platform Direct to Retail Direct to Business WisdomTree Prime WisdomTree Connect + Target Audience: US Retail Investors + Target Audience: B2B & B2B2C, Institutions + Delivery: Mobile App + Future Global offering + Wallet Custody: WisdomTree owned wallets (custodial to
Slide 12: WisdomTree Digital Assets Current Product Pillars
WisdomTree Digital Assets Current Product Pillars Access & Services Exposures B2B(2C) Platform & Crypto Mainstream Retail Financial App: Asset Tokens Digital Funds Services: Adoption i.e. WisdomTree Gold i.e. WT Digital Money Tokens, ETPs and Token Market Fund (WTGXX) Indexes Create an ecosystem wit
Slide 13: WisdomTree is a Multifaceted Growth Story
WisdomTree is a Multifaceted Growth Story Diverse products + new launches Models traction Scalability and operating leverage Robust WT Growth Tokenized real world assets Crypto exposures and digital funds Accessible to ~80% of U.S. Population WisdomTree – Q3/24 Results 13
Slide 14: Q&A
Q&A WisdomTree – Q3/24 Results 14
Slide 15: Appendix
Appendix WisdomTree – Q3/24 Results 15
Slide 16: AUM and Net Flows
AUM and Net Flows Quarterly ETP AUM Change Q3/24 Net Flows by Category 5.3 112.6 U.S. Equity 328 109.7 Cryptocurrency (2.4) 201 Leveraged/Inverse 71 Alternatives 54 Emerging Markets (20) Commodity & Currency (741) 6/30/24 Net Market 9/30/24 Fixed Income (897) Inflow Move International Developed (1,3
Slide 17: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) Sept. 30, Dec. 31, ($ millions) 2024 2023 Assets Cash and financial instruments (1) $254.0 $188.2 78.9 5.5 Investments 8.8 9.7 Accounts receivable 45.2 35.5 204.6 Deferred tax asset, net 8.6 11.1 Fixed assets, net 0.4 0.4 Goodwill and i
Slide 18: 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 $12.00 average stock price: Issued 2021 Issued 2023 Issued 2024 $150M Notes $26M
Slide 19: Consolidated Financial Results
Consolidated Financial Results 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenues Advisory fees $ 77,637 $ 82,004 $ 86,598 $ 86,988 $ 92,501 $ 98,938 $101,659 Other revenues 4,407 3,720 3,825 3,856 4,337 8,096 11,509 Total revenues 82,044 85,724 90,423 90,844 96,838 107,034 113,168 Expenses Compensation and be
Slide 20: Non-GAAP Financial Measurements
Non-GAAP Financial Measurements In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when eva
Slide 21: Non-GAAP Reconciliation to GAAP Results
Non-GAAP Reconciliation to GAAP Results Three Months Ended Three Months Ended ($ 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 2024 2024 2024 2023 2023 Unaudited 2024 2024 2024 2023 2023 Adjusted net income and diluted ea
Slide 22: Reconciliation of US GAAP to Non-GAAP results – Q3 2024
Reconciliation of US GAAP to Non-GAAP results – Q3 2024 Legal Fees QTD Sept Covered by Loss on SEC Gain on Imputed Gain on DTA Val. Tax US GAAP Insurance Extinguishment Penalty Securities Interest Inv. Allowance Windfalls Non-GAAP Revenues Advisory fees $ 101,659 $ - $ - $ - $ - $ - $ - $ - $ - $ 10
Slide 23: Reconciliation of US GAAP to Non-GAAP results – YTD Sept. 2024
Reconciliation of US GAAP to Non-GAAP results – YTD Sept. 2024 Legal Fees YTD Sept. Covered by Loss on SEC Activist Imputed Gain on Loss on DTA Val. Tax US GAAP Insurance Extinguishment Penalty Campaign Exp. Interest Securities Inv. Allowance Windfalls Non-GAAP Revenues Advisory fees $ 293,098 $ - $
Slide 24: Thank you.
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