Slide 1: Q4 2024 Results
Q4 2024 Results January 31, 2025 WisdomTree – Q4/24 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: 2024 and Q4 Highlights
2024 and Q4 Highlights AUM + AUM and strong financial results: 109.7 112.6 109.8 113.7 107.2 + AUM of +$109.8b at December 31, 2024 100.1 + Adjusted revenue growth of 21.6% vs. Q4 2024 (+21.3% vs. YTD Dec. 31, 2023) + 680bps of adjusted operating margin expansion vs. YTD Dec. 31, 2024 $ billions + N
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 12 months ended Adjusted operating margins 109.5 110.5 Dec. 31, 2024 Dec. 31, 2023 Change 107.0 Adjusted operating revenues $42
Slide 5: 2025 Guidance
2025 Guidance + Compensation guidance contemplates new hires, year-end compensation adjustments and variability in Category 2025 Guidance 2024 Actual incentive compensation • Q1 Seasonality: estimated compensation expense of $34m - $35m (1) Compensation to revenue ratio 28%-30% 28.6% + Discretionary
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: Expect Deepening Client Engagement will Drive Further AUM Growth in 2025
Expect Deepening Client Engagement will Drive Further AUM Growth in 2025 $120 $110 $100 + In 2024… $90 + Total AUM grew ~10% despite second half flow challenges $80 + The number of clients using WisdomTree products grew by 5% $70 + The average number of WisdomTree products held per WisdomTree client
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: Penetrate Accessible Market to Grow in Model AUA and Model Users in 2025
Penetrate Accessible Market to Grow in Model AUA and Model Users in 2025 Target 35% to 40% Expansion in Model Assets Under Advisement Target 25% to 30% Growth in Model Users (AUA, $ billion) 3,250 $5.2 2,580 $3.8 2,000 $3.1 $2.2 985 2022 2023 2024 2025 2022 2023 2024 2025 Goal Goal WisdomTree – Q4/2
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 Full Year 2024
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 + Available to select global investors + Wallet Custody: WisdomTree managed wallet
Slide 12: WisdomTree Digital Assets Current Product Pillars
WisdomTree Digital Assets Current Product Pillars Access & Services Exposures B2B(2C) Platform & Digital Funds Crypto Mainstream Retail Financial App: Asset Tokens Services: e.g. WT Government Adoption e.g. WisdomTree Gold Money Market Digital Tokens, ETPs and Token Fund (WTGXX) Indexes Create an ec
Slide 13: Digital Asset Metrics Heading into 2025
Digital Asset Metrics Heading into 2025 26,000 2,300 143 Opened Accounts Funded Accounts Average Daily User Transactions in Q4 $3 million $31 million WisdomTree Prime AUM Total WisdomTree Tokenized AUM WisdomTree – Q4/24 Results 13
Slide 14: A Secular Shift Toward Tokenization is Underway and WisdomTree is a Leader
A Secular Shift Toward Tokenization is Underway and WisdomTree is a Leader + Tokenized real world assets (RWA) has Growth of Tokenized Real World Assets vs. ETFs Since First Inception ($ billion) grown from near zero in 2017 to over $200 $10,000 billion in AUM today (mostly stablecoins) + Early grow
Slide 15: Key 2025 Themes
Key 2025 Themes Grow & Diversify Revenue Streams Disciplined Execution + Grow the number of WisdomTree clients and deepen engagement + Generated 73% y/y EPS growth in 2024 + Expand models and portfolio solutions footprint + Further incorporate artificial intelligence (AI) into everyday workflows + C
Slide 16: Q&A
Q&A WisdomTree – Q4/24 Results 16
Slide 17: Appendix
Appendix WisdomTree – Q4/24 Results 17
Slide 18: AUM and Net Flows
AUM and Net Flows Quarterly ETP AUM Change Q4/24 Net Flows by Category ($ billions) ($ millions) U.S. Equity 1,099 112.6 (0.3) 109.8 (2.5) Cryptocurrency 315 International Developed 63 Alternatives 46 Leveraged/Inverse (69) Fixed Income (387) Commodity & Currency (440) 9/30/24 Net Market 12/31/24 In
Slide 19: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) ($ millions) Dec. 31, Dec. 31, ($ millions) 113.5 1.0 2024 2023 Assets Cash and financial instruments (1) $266.8 $188.2 Investments 8.9 9.7 204.6 Accounts receivable 44.9 35.5 Deferred tax asset, net 11.7 11.1 Fixed assets, net 0.3 0.4
Slide 20: 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 21: Consolidated Financial Results
Consolidated Financial Results 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues Advisory fees $ 77,637 $ 82,004 $ 86,598 $ 86,988 $ 92,501 $ 98,938 $101,659 $102,264 Other revenues 4,407 3,720 3,825 3,856 4,337 8,096 11,509 8,433 Total revenues 82,044 85,724 90,423 90,844 96,838 107,034 113,168 110,697 Ex
Slide 22: Non-GAAP Financial Measurements
Non-GAAP Financial Measurements In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when eva
Slide 23: Non-GAAP Reconciliation to GAAP Results
Non-GAAP Reconciliation to GAAP Results Three Months Ended Three Months Ended ($ in thousands) Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 ($ in thousands) Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Unaudited 2024 2024 2024 2024 2023 Unaudited 2024 2024 2024 2024 2023 Adjusted net income and diluted earn
Slide 24: Reconciliation of US GAAP to Non-GAAP results – Q4 2024
Reconciliation of US GAAP to Non-GAAP results – Q4 2024 Legal Fees QTD Dec. Covered by Gain on Imputed Loss on Loss on DTA Val. US GAAP Insurance Securities Interest Inv. Extinguishment Allowance Non-GAAP Revenues Advisory fees $ 102,264 $ - $ - $ - $ - $ - $ - $ 102,264 Other income 8,433 (192) - -
Slide 25: Reconciliation of US GAAP to Non-GAAP results – YTD Dec. 2024
Reconciliation of US GAAP to Non-GAAP results – YTD Dec. 2024 Legal Fees YTD Dec. 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 $ 395,362 $ - $ -
Slide 26: Thank you.
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