Slide 1: Q2 2024 Results
Q2 2024 Results July 26, 2024 WisdomTree – Q2/24 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: Q2 Highlights
Q2 Highlights + Business momentum continues: + Record AUM of +$109.7b at June 30th, 2024 + Revenue growth of 25% vs. Q2 2023 (+21.5% vs. YTD June 2023) + 840bps of adjusted operating margin expansion vs. YTD June 2023 + Blended fee rate of 37bps; 1bps increase vs. Q1 2024 + Net inflows of $0.3b for
Slide 4: Revenues and Earnings Results
Revenues and Earnings Results Revenues, income, operating margin, EPS Operating margin expansion (as adjusted) 1 6 months ended Revenue Adjusted Net Income (non-GAAP) 107.0 Adjusted operating margins 27.1 June 30, 2024 June 30, 2023 Change 96.8 90.4 90.8 18.6 20.3 $ millions 85.7 18.0 Operating reve
Slide 5: 2024 Guidance
2024 Guidance YTD Updated Prior + Other revenue run-rate increase to $8m per quarter due to updates in asset-based Category revenue arrangements on certain European-listed products June 2024 Guidance Guidance $8m + Compensation guidance now expressed as a compensation/revenue ratio going Other reven
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: Strong Organic Growth Profile
Strong Organic Growth Profile + WisdomTree has now generated net inflows in 15 of the past 17 quarters WT’s AUM grew at a 14% CAGR over the past three years + Over $300m of inflows in Q2 2024, driven by high fee funds $110 + U.S. listed ETFs and offshore UCITS ETF suite generated a combined $1.9b of
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 + Assets under management continue to expand to nearly $3.7b through June 2024 • 300,000 Advisors + Expect further expansion of accessible market to ~85,000 advisors representing nearl
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 June 2024 a
Slide 11: WisdomTree Prime Footprint Continues to Expand
WisdomTree Prime® Footprint Continues to Expand 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. Debit card functionality now available both physically and digitall
Slide 12: The industry is already shifting, though WT is a few years ahead
The industry is already shifting, though WT is a few years ahead Jul 2024 Apr 2024 Mar 2024 SocGen’s stablecoin (EUR CoinVertible) removes ‘whitelist’ restriction and is now transferrable to most wallets outside OnChain U.S. Gov’t Money Fund now available for blockchain Launches First Tokenized Priv
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 ~79% of U.S. Population WisdomTree – Q2/24 Results 13
Slide 14: Q&A
Q&A WisdomTree – Q2/24 Results 14
Slide 15: Appendix
Appendix WisdomTree – Q2/24 Results 15
Slide 16: AUM and Net Flows
AUM and Net Flows Quarterly ETP AUM Change Q2/24 Net Flows by Category International Developed 1,253 U.S. Equity 221 Fixed Income 236 Cryptocurrency 75 Emerging Markets 57 Alternative 15 Leveraged/Inverse (18) Commodity & Currency (1,499) WisdomTree – Q2/24 Results 16
Slide 17: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) June 30, Dec. 31, ($ millions) 2024 2023 Assets Cash and financial instruments (1) $202.5 $188.2 Investments 8.3 9.7 Accounts receivable 42.7 35.5 Deferred tax asset, net 6.8 11.1 Fixed assets, net 0.4 0.4 Goodwill and intangibles 692.4
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 $11.50 average stock price: Issued 2021 Issued 2023 $150M Notes $130M Notes (202
Slide 19: Consolidated Financial Results
Consolidated Financial Results 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Revenues Advisory fees $ 77,637 $ 82,004 $ 86,598 $ 86,988 $ 92,501 $ 98,938 Other revenues 4,407 3,720 3,825 3,856 4,337 8,096 Total revenues 82,044 85,724 90,423 90,844 96,838 107,034 Expenses Compensation and benefits 27,398 26,319 27,955
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) June 30 Mar. 31 Dec. 31 Sept. 30 June 30 ($ in thousands) June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Unaudited 2024 2024 2023 2023 2023 Unaudited 2024 2024 2023 2023 2023 Adjusted net income and diluted earn
Slide 22: Reconciliation of US GAAP to Non-GAAP results
Reconciliation of US GAAP to Non-GAAP results QTD June 30 Activist Loss on Imputed DTA Loss on Tax US GAAP Campaign Exp. Inv. Interest Val. Allow Securities Windfalls Non-GAAP Revenues Advisory fees $ 98,938 $ - $ - $ - $ - $ - $ - $ 98,938 Other revenues 8,096 - - - - - - 8,096 Total revenues 107,0
Slide 23: Thank you.
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