Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Q4 2024 Earnings Presentation
48 slides from Digitalbridge's earnings presentation, Feb 20, 2025
Slide 1: Earnings Presentation 4Q 2024
1 eattteattl| DIGITALBRIDGE EARNINGS PRESENTATION 4Q 2024 February 20, 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the federal securities laws, including statement relating to (i) our strategy, outlook and growth prospects, (ii) our operational and financial targets and (ii) ge
Slide 3: DBRG Reports Fourth Quarter 2024 Results
DBRG REPORTS FOURTH QUARTER 2024 RESULTS Boca Raton, February 20", 2025 - DigitalBridge Group, Inc. (NYSE: DBRG) and subsidiaries (collectively, “DigitalBridge,” or the “Company”) today announced financial results for the fourth quarter ended December 31, 2024. The Company reported fourth quarter 20
Slide 4: GAAP Financial Results
GAAP FINANCIAL RESULTS Net loss attributable to common stockholders was $19.7 million in Q4 2024, and $0.12 per share (basic and diluted) {in thousands, except per share data, unausltes) 4024 Revenues Fee revenue $ 74,009 |$ 101,554 Carried interest allocation (reversal) 169,686 (45,717) Principal i
Slide 5: Agenda
AGENDA SECTION 1 BUSINESS UPDATE 2 FINANCIAL RESULTS z 6 g 3 3 EXECUTING THE DIGITAL PLAYBOOK SECTION DIGITALBRIDGE
Slide 6: Business Update
eatlliatl DIGITALBRIDGE AEEES" BUSINESS UPDATE 1
Slide 7: Business Update
BUSINESS UPDATE DBRG delivered strong fundraising and financial performance in 2024, led by record capital formation of $9.0 billion. In 4Q, DBRG delivered revenue and FRE in line with its revised guide. FUNDRAISE Record Fundraising of $9.0 billion in 2024 * $4.88 in 4Q commitments brought 2024 fund
Slide 8: Fundraise - Record Capital Formation of $9.0B
FUNDRAISE - RECORD CAPITAL FORMATION OF $9.0B In 2024 DigitalBridge raised $9.0 billion in new fee-paying capital, exceeding our $7 billion target by 28%, driven by co- invest to fuel Al and cloud data center growth across our platforms. 2024 FUNDRAISING DRIVERS Co-Invest™, $5.5B, capital to build H
Slide 9: Fundraise - Why Coinvest and Composition Matter
FUNDRAISE - WHY COINVEST AND COMPOSITION MATTER During 2024, the need to form capital in support of our data center companies outstripped expectations, with fundraising dominated by data center co-invest. WHY CO-INVEST MATTERS? Higher co-invest ratio impacted DBRG’s ability to deliver in-period FRE
Slide 10: Fundraise - Capital to Fuel Our Growing Ecosystem
FUNDRAISE - CAPITAL TO FUEL OUR GROWING ECOSYSTEM In 2024 we raised over $24 billion in capital to support the continued growth of our portfolio 2024 Notable Equity Raises 2024 Notable Financings otal Equity Raised, through December 31, 2024 — DATABANK ertica > PRIMARY EQUITY iB vertical bridge Febr
Slide 11: Invest - 2024 Investment Activity Across Our Portfolio
INVEST - 2024 INVESTMENT ACTIVITY ACROSS OUR PORTOLIO DigitalBridge continued to expand its portfolio with platforms notably alongside key LPs *Date Announced JANUARY / JUNE 2024* SEPTEMBER 2024* OCTOBER 2024* Wvantace SILVER LAKE verticalbridse — yerizon” DB DATABANK AustralionSuper isa 99-28 $3.3B
Slide 12: Scale DBRG - Strong Growth and Reinvestment Alongside LPs
SCALE DBRG - STRONG GROWTH AND REINVESTMENT ALONGSIDE LPS The DBRG platform continues to scale, generating double-digit revenue growth and expanding margins in line with our long-term roadmap. In 2024, we continued to deploy shareholder capital alongside our LPs in our funds OPERATING LEVERAGE CAPIT
Slide 13: Infrastructure Partner to the Digital Economy
INFRASTRUCTURE PARTNER TO THE DIGITAL ECONOMY The DBRG roadmap is designed to give us the global scale that drives efficiency, growth, and presence where customers need it Top 3 Data Center Provider in the World®) Independent Global Tower Portfolio® DIGITALBRIDGE
Slide 14: Financial Update
FINANCIAL UPDATE
Slide 15: Fourth Quarter & Full Year 2024 Highlights
FOURTH QUARTER & FULL YEAR 2024 HIGHLIGHTS Fee Revenue $101.6 million in 4Q24 and $329.8 million YTD up 37% and 23% respectively year-over-year Driven primarily by new capital formation in our DBP Series of Funds. Fi cial Fee Related Earnings Highlights $35.4 million in 4Q24 and $107.1 million YTD u
Slide 16: FEEUM Growth Driven by Organic Fundraising
FEEUM GROWTH DRIVEN BY ORGANIC FUNDRAISING Fee-Earning Equity Under Management (FEEUM) increased $2.7B, or 8% YoY, to $35.5B as of December 31, 2024, driven by organic capital formation from Co-Invest and the latest DBP flagship, offsetting a contractual ‘commitment to deployment’ stepdown at InfraB
Slide 17: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS * Fee Revenues of $101.6 million in Q4 2024, including $9.8 million in catch-up fees (total catch-up fees of $19.5 million for 2024) * Fee Related Earnings of $35.4 million in Q4 2024, with FRE margin at 35% ($ in milions) a 4024 Fee Revenue) $74.4 $101.6 Cash Compensation
Slide 18: Carried Interest & Principal Investment Income
CARRIED INTEREST & PRINCIPAL INVESTMENT INCOME * Net carried interest reversal of $18.2 million in Q4 2024 * Net principal investment loss of $0.5 million in Q4 2024 Carried Interest ($ in millions) 4923 4924 %Change YoY Unrealized Carried Interest Allocation (Reversal) $169.7 ($45.7) a $334.7 $218.
Slide 19: DBRG Financial Profile & FEEUM Progression
DBRG FINANCIAL PROFILE & FEEUM PROGRESSION Management Fee Revenue and FRE continue to step higher, driven by new FEEUM growth on back of new capital formation and FEEUM activation $330M LTM Fee Revenue and FRE Profile) 292M $303M $280M $28: $267M I 1M Fee Revenue $238M $214M WB ouuwre 's82M is86M $9
Slide 20: Balance Sheet Profile
BALANCE SHEET PROFILE Key Corporate Assets ($ in millions) 12/34/2024 GP Affiliated Investments DBP Series $364 DataBank and Vantage SDC 677 Other Funds & Investments * 335 (Credit, Core, InfraBridge, Liquid, Ventures) Total GP Affiliated Investments $1,376 Available Corporate Cash?)* 140 Key Corpor
Slide 21: Guidance - Continued Growth and Expanding Margins
GUIDANCE - CONTINUED GROWTH AND EXPANDING MARGINS Last year, DigitalBridge aligned its guidance practices with its alternative asset manager peer set, focusing on growth and profitability over a 5-year cycle. DigitalBridge is supplementing this guidance for 2025 on selected key metrics to facilitate
Slide 22: Executing the Digital Playbook - 2025 & Beyond
DIGITALBRIDGE . : ** 3 EXECUTING THE DIGITAL PLAYBOOK - 2025 & BEYOND 22
Slide 23: 2025 Roadmap - What Matters?
2025 ROADMAP - WHAT MATTERS? In 2025, we will launch new products as we finalize key capital programs, invest in the next phase of Al buildout, and continue scaling DBRG with a focus on strong financial performance. FUNDRAISE Grow FEEUM to $40B+ * Finalize capital formation around our third flagship
Slide 24: 2025 - Continuing to Scale Our Multi-Strat Platform
2025 - CONTINUING TO SCALE OUR MULTI-STRAT PLATFORM In 2025, our multi-strategy platform expands as we finalize capital formation around our DBP flagship and second credit fund. New investment offerings centered on the data center vertical and digital energy will drive growth in 2H. cot all DIGITALB
Slide 25: AI Infra Investment Is Accelerating
Al INFRA INVESTMENT IS ACCELERATING TO $256B+ $300B+ Updated hyperscaler 2025 capex is actually up +20% from $250B, expected six months ago, to over $300B as hyperscalers invest to remove capacity bottlenecks and scale to meet growing demand $3008 ; HYPERSCALE cam im | $300B+ 2025E CAPEX | $2008 Gen
Slide 26: Who Is Right?
WHO IS RIGHT? BOTH ARE RIGHT...THIS IS HOW TECHNOLOGY WORKS! We need more compute at scale $500B Th OpenAl Te Gov Eder orAcLE = SoftBank (B) Cost of Compute is Lower Cost to develop < $100M (?) wa deepseek DIGITALBRIDGE JEVONS PARADOX: LOWER COSTS = DEMAND FOR MORE, BETTER, FASTER COMPUTE COST CURVE
Slide 27: Lower Unit Costs Drive Demand for More, Faster Compute
LOWER UNIT COSTS DRIVE DEMAND FOR MORE, FASTER COMPUTE The history of technology is, as compute, bandwidth, and connectivity gets cheaper per unit, demand grows exponentially. The rapid innovation today in Al is a ‘natural and necessary’ catalyst to drive accelerated adoption LOWER UNIT COSTS... DRI
Slide 28: Invest: Building the Next Phase of AI: The Age of Inference
INVEST BUILDING THE NEXT PHASE OF Al: THE AGE OF INFERENCE Data centers remain at the core of the opportunity with giga-scale investment in training clusters augmented by a growing focus on building for the next phase of Al...Inference, where location and the rest-of-network matter. INFERENCE WILL P
Slide 29: Invest - Think of AI Inference as Cloud 2.0
INVEST — THINK OF Al INFERENCE AS CLOUD 2.0 Al inference workloads infuse traditional cloud-based use cases with intelligence...the same acti ities are faster, more efficient, and ultimately more useful. Just like the cloud, they rely on infrastructure closer to the enterprise/consumer Social Media
Slide 30: DBRG Is Scaling Its Platforms Globally to Meet This Demand
DBRG IS SCALING ITS PLATFORMS GLOBALLY TO MEET THIS DEMAND With almost 4GW today and a power bank 4x that size, we are positioned to support customers growing footprints CUMULATIVE GW LEASED: DIGITALBRIDGE DATA CENTER PORTFOLIO 3.8GW+ 7 CUMULATIVE EXPECTED MW LEASED ACROSS OUR DATA “e 68%+ CENTER PO
Slide 31: Understanding the Value of a MW to DBRG Shareholder
UNDERSTANDING THE VALUE OF A MW TO DBRG SHAREHOLDER Megawatts, Gigawatts...what does it mean to the DBRG shareholder?...our investments create embedded value. Illustrative Example Operation Capex perMW $10,000,000 a Equity Financing % 50% b sgt ‘ Simple analysis, using market- Original Equity Invest
Slide 32: 2025 CEO Priorities
2025 CEO PRIORITIES atiall CEO 2025 Checklist DIGITALBRIDGE “ince $40B+ of FEEUM Finalize flagship DBP Series and Credit fundraisings Launch new digital energy and data center strategies Develop and launch our second ‘private wealth’ offering INVEST - PORTFOLIO Deploy $18B+ Support the next phase of
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Slide 34: Summary Financial Metrics
SUMMARY FINANCIAL METRICS 2024 7023 (Sand shares in thousands, except per share data ad as noted) a4 3024 2024 1024 cas 3023 2023 1023 GAAP Results GAAP Fee revenue $ 101,551 $ 76,582 $ 78,605 $ 72,955 $ 74,009 $ 65,240 $ 65,742 $ 59,126 "Net income (loss) attributable to common stockholders (19,711
Slide 35: FEEUM, Fee Related Earnings & Distributable Earnings
FEEUM, FEE RELATED EARNINGS & DISTRIBUTABLE EARNINGS ‘224 ame a= (Sin miions) H 4024 3024 2024 1024 acs 3023 2023 1023 DigitalBridge Partners | (DBP |) 110% S$ 3,587 $ 3,650 $ 3.677 $ 3,687 $ 3.571 $ 3,345 $ 3311 $ 3,180 DigitalBridge Partners Il (DBP 1) 1.18% 6,985 6,568 6,269 6,219 6,687 7,996 7,9
Slide 36: Fund Performance
FUND PERFORMANCE Certain performance metis for our key Investment funds from inception through December 31,2024 are presented in he table below. Excluded are funds with less than one year of erformance history as of December 31, 2024, funds and separately managed accounts in the liquid strategy, co-
Slide 37: Capitalization
CAPITALIZATION ($ and shares in thousands, as of December 31, 2024) Securitized Notes - Class A-2 Term Notes Amount Outstanding $ 300,000 Interest Rate (Per Annum) 3.933 % Anticipated Repayment Date September 25, 2026 Kroll Rating BBB Maximum Available $ 300,000 Amount Outstanding $ — Interest Rate
Slide 38: GP Affiliated Investments
GP AFFILIATED INVESTMENTS (Sin thousands) 2024 2023 Consolidated 4024 3024 2024 1024 4023 3023 2023 1023 GP Affiliated Investments DBP Series $ 496,004 $ 470,937 $ 452,604 $ 446,954 $ 446,423 $ 442,991 $ 427,188 $ 395,534 DataBank and Vantage SDC()2) 682,047 679,335, 674,900 940,854 931,004 434,666
Slide 39: Balance Sheet
BALANCE SHEET DIGITALBRIDGE (Sin thousands) Assets Cash and cash equivalents $ 345,335 $ Restricted cash 4,915 Investments(*) 2,476,093 Goodwill 465,991 Intangible assets 103,750 Other assets: Due from affiliates Assets of discontinued operations Total assets) $ $ Liabilities Debt $ 371,783 $ Other
Slide 40: Distributable Earnings & Fee Related Earnings
DISTRIBUTABLE EARNINGS & FEE RELATED EARNINGS 2026 2023, (Sin tousands) acs 3024 2024 1024 4023 3023 2023 1023 "Net income (loss) attributable to common stockholders $ (19,711) $ (B83) $ 76,763 $ (44,288) $ 100,607 $ 261,828 $ (22,411) $ (212,473) ‘Net income (loss) attributable to noncontroliing in
Slide 41: Reconciliations
RECONCILIATIONS (Sin thousands) FRE Fee Revenue GAAP Fee Revenue Consolidated Funds(*) Incentive Fees FRE Cash Compensation GAAP Compensation Expense—Cash and Equity-Based Equity-Based Compensation ‘Compensation Expense—Incentive Fees® Non-Core and Other Items‘ FRE Administrative and Other Expenses
Slide 42: Reconciliations
RECONCILIATIONS 2028 2023, (Sin thousands) 4024 3024 2024 1024 4023 3023 2023 1023 DE Realized Principal Investment Income GAAP Principal Investment Income $ 1241 § 9.955 $ 15,982 $ 2845 $ 93534 $ 17.943 $ 30,409 § 3,562 Unrealized Principal Investment (Income) Loss 3,930 (7,308) (7.813) (468) (93,5
Slide 43: Reconciliations
RECONCILIATIONS 2028 2023 (shares in thousands) 4024 3024 2024 1024 4023 3023 2023 1023 FRE and DE Weighted Average Basic Shares and OP Units GAAP Weighted Average Basic Shares Outstanding 171,254 171,542, 170,358 161,043, 160,664 160,564 158,089 158,446 Weighted Average OP Units 11,986 12,200 12,29
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Slide 45: Important Note Regarding Non-GAAP Financial Measures
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES ‘This presentation contains the following non-GAAP financial measures attributable to the Operating Company: Fee Related Earnings ("FRE") and Distributable Earnings ("DE"). FRE and DE are common metrics utilized in the investment management sector
Slide 46: Important Note Regarding Non-GAAP Financial Measures (Continued)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES (CONTINUED) "): DE generally represents net realized earnings of the Company and is an indicative measure used by the Company to assess ongoing operating performance and in making decisions related to distributions and reinvestments. Accordingly,
Slide 47: Definitions
DEFINITIONS ‘Assets Under Management (“AUM") AUM represents the total capital for which we provide investment management services and general partner capital. AUM is generally composed of third party capital managed by the Company and its affiliates, including capital that is not yet fee earning, or
Slide 48: DIGITALBRIDGE
DIGITALBRIDGE