Moelis & Company (MC) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

obligation to update any forward-looking statements. Our comments today include references to certain adjusted financial measures. We believe these measures, when presented together with comparable gap measures, are useful to investors to compare our results across several periods and to better understand our operating results. The reconciliation of these adjusted financial measures with the relevant gap financial information and other information required by Reg G is provided in the firm's earnings release, which can be found on our investor relations website at investors.moles.com. I will now turn the call over to Chris to discuss our results. Thanks, Matt. Good afternoon, everyone. On today's call, I will go through our financial results, and then Ken will comment further on the business. We achieved revenues of $307 million in the first quarter, representing an increase of 41% over the prior year period. The revenue increase is attributable to growth in M&A and capital markets versus the prior year period. Moving to expenses, our first quarter compensation expense ratio was 69%. As the year progresses, our compensation ratio will depend on the trajectory of revenues and the pace and magnitude of hiring throughout the year. Our first quarter non-comp ratio was 19%. The quarterly year-over-year growth in non-compensation dollars is primarily attributable to increased costs associated with our investment and client conferences, many of which occurred during the first quarter. As indicated previously, we currently anticipate the full-year growth of non-compensation expense to be approximately 15%. Moving to taxes, our underlying corporate tax rate was 29.5% for the quarter before the discrete tax benefit related to the vesting of equity awards. Adding in this discret...