Slide 1: Q2 2023 Results
ac cial WT. WISDOMTREE’ NYSE e e . e Q2 2023 Results lS July 28, 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: Q2/23 Highlights
Q2/23 Highlights + Net inflows of $2.3b for the quarter primarily driven by inflows AUM into fixed income and international equity products, partly ($ billions) offset by commodity outflows: – 11 straight quarters of net inflows globally – YTD inflows in all 8 major product categories + YTD annualiz
Slide 4: Revenues and Earnings Results
Revenues and Earnings Results Revenue, Income, Operating Margin, EPS Highlights/Unusual Items ($ millions) Total Revenues Adjusted Net Income (non-GAAP)(1) + Revenues up 4.5% from prior quarter primarily due to higher average AUM 85.7 82.0 77.3 14.9 + Termination of contractual gold payments 72.4 73
Slide 5: Expense Base - Rollforward
Expense Base - Rollforward Expense Base Change – Q1/23 to Q2/23 (1) ($ in thousands) + Lower contractual gold payments (terminated in May 2023) + Lower compensation as prior quarter included seasonal items + Higher professional fees (inclusive of contractual gold buyout expenses) + Higher fund costs
Slide 6: 2023 Expense Guidance
2023 Expense Guidance + Compensation guidance range updated – Midpoint of the range considered a YTD June Updated Prior Expense Item reasonable estimate (aligned with Actual Guidance Guidance consensus estimates) given potential volatility in performance-based Compensation $53.7m $104m-$110m $100m-$
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 + $8.7 billion of inflows is the 2nd best start to the year in WT’s 17-year company history as an asset manager + Best-in-class 21% 1H annualized organic growth rate, including net inflows in all ei
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: 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 27.8% Material Margin 50%
Slide 11: WisdomTree Prime is Now Live.
WisdomTree Prime™ is Now Live. 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. WisdomTree Prime™ is live in 21 states with more being added each quarter WisdomTree
Slide 12: 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 Money Market WUSD BTC ETH Crypto Indexes ETPs WisdomTree – Q2/23 Results 12
Slide 13: The Industry is Already Shifting, though WT is a Few Years Ahead
The Industry is Already Shifting, though WT is a Few Years Ahead What are Other Asset Managers Doing / Saying? December 2022: BlackRock CEO says “Next Generation for Markets Is Tokenization” April 2023: Franklin Templeton announces the Franklin OnChain U.S. Government Money Fund (FOBXX). The Fund’s
Slide 14: 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 21 States WisdomTree – Q2/23 Results 14
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: AUM and Net Inflows
AUM and Net Inflows Quarterly ETP AUM Change Q2/23 Net Flows by Category ($ billions) ($ millions) International Developed 1,592 Fixed Income 1,471 U.S. Equity 414 Emerging Markets 329 Alternative 22 Leveraged/Inverse 12 Closed - Cryptocurrency (1) Commodity & Currency (1,512) WisdomTree – Q2/23 Res
Slide 18: Balance Sheet
Balance Sheet Balance Sheet YTD Change in Cash & Securities (1) ($ millions) June 30, Dec. 31, ($ millions) 2023 2022 Assets Cash and financial instruments (1) $149.4 $258.6 Investments 40.0 35.7 Accounts receivable 34.2 30.5 Deferred tax asset, net 7.6 10.5 Fixed assets, net 0.5 0.5 Goodwill and in
Slide 19: Consolidated Financial Results
Consolidated Financial Results 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Revenues Advisory fees $ 76,517 $ 75,586 $ 70,616 $ 70,913 $ 77,637 $ 82,004 Other income 1,851 1,667 1,798 2,397 4,407 3,720 Total revenues 78,368 77,253 72,414 73,310 82,044 85,724 Expenses Compensation and benefits 24,787 24,565 23,714 24
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 Jun. 30 ($ in thousands) June 30 Mar. 31 Dec. 31 Sept. 30 Jun. 30 Unaudited 2023 2023 2022 2022 2022 Unaudited 2023 2023 2022 2022 2022 Adjusted Total Operating Expenses Ad
Slide 22: Reconciliation of US GAAP to Non-GAAP results
Reconciliation of US GAAP to Non-GAAP results Three Months ended June 30, 2023 Gain on QTD June Def. Gain on Loss on Activist DTA Litigation Tax US GAAP Consid. Inv. Sec. Owned Campaign Exp. Val. Allow Settlement Windfalls Non-GAAP Revenues Advisory fees $ 82,004 $ - $ - $ - $ - $ - $ - $ - $ 82,004
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