WisdomTree Announces Second Quarter 2023 Results – Record Quarter-End AUM of $93.7 Billion; Diluted Earnings Per Share of $0.32 ($0.09, as Adjusted)
Eleven consecutive quarters of net inflows
Annualized inflow rate of 21% across all products
Termination of contractual gold payments and operating leverage expands margin
NEW YORK–(BUSINESS WIRE)–WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the second quarter of 2023.
$54.3 million net income ($14.9(1) million net income, as adjusted); including a non-cash gain of $41.4 million associated with the revaluation and termination of our deferred consideration—gold payments obligation.
$93.7 billion of ending AUM, an increase of 3.3% from the previous quarter arising from net inflows and market appreciation.
$2.3 billion of net inflows, primarily driven by inflows into our international equity and fixed income products, partly offset by outflows from our commodity products.
0.36% average advisory fee, unchanged from last quarter.
$85.7 million of operating revenues, an increase of 4.5% from the previous quarter primarily due to higher average AUM.
79.3% gross margin(1), a 0.2 point increase from the previous quarter due to higher revenues.
21.2% operating income margin (26.9%(1) as adjusted), a 1 point increase (5.5 point increase, as adjusted(1)) compared to our operating margin of 20.2% in the prior quarter due to higher revenues and lower contractual gold payments (upon the termination of our deferred consideration—gold payments obligation on May 10, 2023), partly offset by higher expenses incurred in response to an activist campaign.
$60.0 million of cash paid and 1,037,288 shares of common stock issued in connection with the maturity of $60.0 million aggregate principal amount of 4.25% Convertible Senior Notes.
$50.0 million cash consideration paid and 13,087 shares of Series C Non-Voting Convertible Preferred Stock, convertible into 13,087,000 shares of common stock, issued to terminate our deferred consideration—gold payments obligation.
$0.03 quarterly dividend declared, payable on August 23, 2023 to stockholders of record as of the close of business on August 9, 2023.
Update from Jonathan Steinberg, WisdomTree CEO
|
“WisdomTree’s momentum continued in the second quarter with a 21% year-to-date pace of annualized organic flow growth, best-in-class among our asset manager peers, propelling our global AUM to record high levels. Additionally, we launched WisdomTree Prime™ in 21 states at the end of June, with near full coverage in the U.S. expected by year end. The personal finance app empowers users to save, spend and invest, bringing tokenization and blockchain-enabled finance to the center of the consumer’s financial life. Whether it’s growing the platform organically, leveraging B2B or B2B2C opportunities, or utilizing our early-mover status in tokenization to pursue third party distribution, we have significant opportunity and have opened many paths to success. I’ve never been more excited about the road ahead than I am today and expect our momentum will continue through 2023 and beyond.” |
Update from Jarrett Lilien, WisdomTree COO and President
|
“WisdomTree has had one of its strongest first halves of a year in company history, with best-in-class flow growth driven by deep and wide flow momentum, having gathered net inflows in all 8 major product categories across our broad product suite. Our differentiated models business is also gaining traction, deepening penetration with current partners like Merrill Lynch and Morgan Stanley, winning new mandates with key partners like LPL and Corbu, and continuing to expand our models business with small independent RIAs and broker-dealers, where our pipeline is strong. And, after expanding operating margins by over 500bps through the termination of our contractual gold payments obligation earlier this quarter, we expect further margin expansion in the years ahead as our business is scalable with high incremental margins.” |
OPERATING AND FINANCIAL HIGHLIGHTS
|
|
Three Months Ended |
||||||||||||||
|
|
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||||||
|
Consolidated Operating Highlights ($ in billions): |
|
|
|
|
|
||||||||||
|
AUM—end of period |
$ |
93.7 |
|
$ |
90.7 |
|
$ |
82.0 |
|
$ |
70.9 |
|
$ |
74.3 |
|
|
Net inflows |
$ |
2.3 |
|
$ |
6.3 |
|
$ |
5.3 |
|
$ |
1.7 |
|
$ |
3.9 |
|
|
Average AUM |
$ |
91.6 |
|
$ |
87.5 |
|
$ |
77.6 |
|
$ |
74.7 |
|
$ |
77.7 |
|
|
Average advisory fee |
|
0.36 |
% |
|
0.36 |
% |
|
0.36 |
% |
|
0.38 |
% |
|
0.39 |
% |
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
||||||||||
|
Consolidated Financial Highlights ($ in millions, except per share amounts): |
|
|
|
|
|
||||||||||
|
Operating revenues |
$ |
85.7 |
|
$ |
82.0 |
|
$ |
73.3 |
|
$ |
72.4 |
|
$ |
77.3 |
|
|
Net income/(loss) |
$ |
54.3 |
|
$ |
16.2 |
|
$ |
(28.3 |
) |
$ |
81.2 |
|
$ |
8.0 |
|
|
Diluted earnings/(loss) per share |
$ |
0.32 |
|
$ |
0.10 |
|
$ |
(0.20 |
) |
$ |
0.50 |
|
$ |
0.05 |
|
|
Operating income margin |
|
21.2 |
% |
|
20.2 |
% |
|
16.0 |
% |
|
20.5 |
% |
|
20.5 |
% |
|
As Adjusted (Non-GAAP(1)): |
|
|
|
|
|
||||||||||
|
Gross margin |
|
79.3 |
% |
|
79.1 |
% |
|
76.9 |
% |
|
77.5 |
% |
|
79.2 |
% |
|
Net income, as adjusted |
$ |
14.9 |
|
$ |
11.2 |
|
$ |
7.0 |
|
$ |
9.3 |
|
$ |
11.3 |
|
|
Diluted earnings per share, as adjusted |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.04 |
|
$ |
0.06 |
|
$ |
0.07 |
|
|
Operating income margin, as adjusted |
|
26.9 |
% |
|
21.4 |
% |
|
16.0 |
% |
|
20.5 |
% |
|
23.1 |
% |
|
|
|
|
|
|
|
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RECENT BUSINESS DEVELOPMENTS
|
Company News
Product News
|
|
WISDOMTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||
|
|
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
|
June 30, 2022 |
June 30, |
|
June 30, |
|||||||||||||||
|
Operating Revenues: |
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Advisory fees |
$ |
82,004 |
|
$ |
77,637 |
|
$ |
70,913 |
|
$ |
70,616 |
|
|
$ |
75,586 |
|
$ |
159,641 |
|
|
$ |
152,103 |
|
|
|
Other income |
|
3,720 |
|
|
4,407 |
|
|
2,397 |
|
|
1,798 |
|
|
|
1,667 |
|
|
8,127 |
|
|
|
3,518 |
|
|
|
Total revenues |
|
85,724 |
|
|
82,044 |
|
|
73,310 |
|
|
72,414 |
|
|
|
77,253 |
|
|
167,768 |
|
|
|
155,621 |
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Compensation and benefits |
|
26,319 |
|
|
27,398 |
|
|
24,831 |
|
|
23,714 |
|
|
|
24,565 |
|
|
53,717 |
|
|
|
49,352 |
|
|
|
Fund management and administration |
|
17,727 |
|
|
17,153 |
|
|
16,906 |
|
|
16,285 |
|
|
|
16,076 |
|
|
34,880 |
|
|
|
31,570 |
|
|
|
Marketing and advertising. |
|
4,465 |
|
|
4,007 |
|
|
4,240 |
|
|
3,145 |
|
|
|
3,894 |
|
|
8,472 |
|
|
|
7,917 |
|
|
|
Sales and business development |
|
3,326 |
|
|
2,994 |
|
|
3,407 |
|
|
2,724 |
|
|
|
3,131 |
|
|
6,320 |
|
|
|
5,740 |
|
|
|
Contractual gold payments |
|
1,583 |
|
|
4,486 |
|
|
4,107 |
|
|
4,105 |
|
|
|
4,446 |
|
|
6,069 |
|
|
|
8,896 |
|
|
|
Professional fees |
|
8,334 |
|
|
3,715 |
|
|
2,666 |
|
|
2,367 |
|
|
|
4,308 |
|
|
12,049 |
|
|
|
8,767 |
|
|
|
Occupancy, communications and equipment |
|
1,172 |
|
|
1,101 |
|
|
1,110 |
|
|
986 |
|
|
|
1,049 |
|
|
2,273 |
|
|
|
1,802 |
|
|
|
Depreciation and amortization |
|
121 |
|
|
109 |
|
|
104 |
|
|
58 |
|
|
|
53 |
|
|
230 |
|
|
|
100 |
|
|
|
Third-party distribution fees |
|
1,881 |
|
|
2,253 |
|
|
1,793 |
|
|
1,833 |
|
|
|
1,818 |
|
|
4,134 |
|
|
|
4,030 |
|
|
|
Other |
|
2,615 |
|
|
2,257 |
|
|
2,427 |
|
|
2,324 |
|
|
|
2,109 |
|
|
4,872 |
|
|
|
3,954 |
|
|
|
Total operating expenses |
|
67,543 |
|
|
65,473 |
|
|
61,591 |
|
|
57,541 |
|
|
|
61,449 |
|
|
133,016 |
|
|
|
122,128 |
|
|
|
Operating income |
|
18,181 |
|
|
16,571 |
|
|
11,719 |
|
|
14,873 |
|
|
|
15,804 |
|
|
34,752 |
|
|
|
33,493 |
|
|
|
Other Income/(Expenses): |
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest expense |
|
(4,021 |
) |
|
(4,002) |
|
(3,736) |
|
(3,734 |
) |
|
|
(3,733) |
|
(8,023 |
) |
|
|
(7,465 |
) |
||||
|
Gain/(loss) on revaluation/termination of deferred consideration—gold payments |
|
41,361 |
|
|
20,592 |
|
|
(35,423) |
|
77,895 |
|
2,311 |
|
61,953 |
|
|
(14,707 |
) |
||||||
|
Interest income |
|
1,000 |
|
|
1,083 |
|
|
945 |
|
|
811 |
|
|
|
770 |
|
|
2,083 |
|
|
|
1,564 |
|
|
|
Impairments |
|
— |
|
|
(4,900) |
|
— |
|
|
— |
|
|
|
— |
|
|
(4,900 |
) |
|
|
— |
|
||
|
Loss on extinguishment of convertible notes |
|
— |
|
|
(9,721) |
|
— |
|
|
— |
|
|
|
— |
|
|
(9,721 |
) |
|
|
— |
|
||
|
Other gains and losses, net |
|
1,286 |
|
|
(2,007) |
|
(1,815) |
|
(5,289 |
) |
|
|
(4,474) |
|
(721 |
) |
|
|
(29,181 |
) |
||||
|
Income/(loss) before income taxes |
|
57,807 |
|
|
17,616 |
|
|
(28,310) |
|
84,556 |
|
|
|
10,678 |
|
|
75,423 |
|
|
|
(16,296 |
) | ||
|
Income tax expense/(benefit) |
|
3,555 |
|
|
1,383 |
|
|
(21) |
|
3,327 |
|
|
|
2,673 |
|
|
4,938 |
|
|
|
(14,040 |
) | ||
|
Net income/(loss) |
$ |
54,252 |
|
$ |
16,233 |
|
$ |
(28,289) |
$ |
81,229 |
|
|
$ |
8,005 |
|
$ |
70,485 |
|
|
$ |
(2,256 |
) | ||
|
Earnings/(loss) per share—basic |
$ |
0.32(2) |
$ |
0.10(2) |
$ |
(0.20) |
$ |
0.50(2) |
|
$ |
0.05(2) |
$ |
0.43(2) |
|
$ |
(0.02)(2) |
||||||||
|
Earnings/(loss) per share—diluted |
$ |
0.32 |
|
$ |
0.10 |
|
$ |
(0.20) |
$ |
0.50(2) |
|
$ |
0.05 |
|
$ |
0.42(2) |
|
$ |
(0.02 |
) | ||||
|
Weighted average common shares—basic |
|
144,351 |
|
|
143,862 |
|
|
143,126 |
|
|
143,120 |
|
|
$ |
143,046 |
|
|
144,108 |
|
|
|
142,915 |
|
|
|
Weighted average common shares—diluted |
|
170,672 |
|
|
159,887 |
|
|
143,126 |
|
|
158,953 |
|
|
|
158,976 |
|
|
165,468 |
|
|
|
142,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
As Adjusted (Non-GAAP(1)) |
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Total operating expenses |
$ |
62,630 |
|
$ |
64,506 |
|
$ |
61,591 |
|
$ |
57,541 |
|
|
$ |
59,425 |
|
|
|
|
|||||
|
Operating income |
$ |
23,094 |
|
$ |
17,538 |
|
$ |
11,719 |
|
$ |
14,873 |
|
|
$ |
17,828 |
|
|
|
|
|||||
|
Income before income taxes |
$ |
19,752 |
|
$ |
14,485 |
|
$ |
8,615 |
|
$ |
12,645 |
|
|
$ |
14,498 |
|
|
|
|
|||||
|
Income tax expense |
$ |
4,833 |
|
$ |
3,287 |
|
$ |
1,588 |
|
$ |
3,323 |
|
|
$ |
3,241 |
|
|
|
|
|||||
|
Net income |
$ |
14,919 |
|
$ |
11,198 |
|
$ |
7,027 |
|
$ |
9,322 |
|
|
$ |
11,257 |
|
|
|
|
|||||
|
Earnings per share—diluted |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.04 |
|
$ |
0.06 |
|
|
$ |
0.07 |
|
|
|
|
|||||
|
Weighted average common shares—diluted |
|
170,672 |
|
|
159,887 |
|
|
159,478 |
|
|
158,953 |
|
|
|
158,976 |
|
|
|
|
|||||
|
|
|
|
|
|||||||||||||||||||||
QUARTERLY HIGHLIGHTS
Operating Revenues
- Operating revenues increased 4.5% and 11.0% from the first quarter of 2023 and the second quarter of 2022, respectively, primarily due to higher average AUM.
- Our average advisory fee was 0.36%, 0.36% and 0.39% during the second quarter of 2023, the first quarter of 2023 and the second quarter of 2022, respectively.
Operating Expenses
- Operating expenses increased 3.2% from the first quarter of 2023 primarily due to higher professional fees incurred in connection with an activist campaign. This increase was partly offset by lower contractual gold payments, as well as lower compensation due to seasonal items occurring in the prior quarter.
- Operating expenses increased 9.9% from the second quarter of 2022 primarily due to higher professional fees incurred in connection with an activist campaign, incentive compensation and headcount, and fund management and administration costs. These increases were partly offset by lower contractual gold payments.
Other Income/(Expenses)
- Interest expense was essentially unchanged from the first quarter of 2023 and increased 7.7% from the second quarter of 2022 due to a higher average level of debt outstanding and a higher effective interest rate.
- We recognized a non-cash gain on revaluation/termination of deferred consideration of $41.4 million during the second quarter of 2023. This obligation was terminated on May 10, 2023 for aggregate consideration totaling approximately $137.0 million, including $50.0 million in cash and the issuance of 13,087 shares of Series C Non-Voting Convertible Preferred Stock (valued at $86.9 million) which are convertible into 13,087,000 shares of the Company’s common stock.
- Interest income was essentially unchanged from the first quarter of 2023 and increased 29.9% from the second quarter of 2022, respectively, due to rising interest rates.
- Other gains and losses, net was $1.3 million for the second quarter of 2023. This quarter includes gains on our investments of $3.1 million, partly offset by losses on our financial instruments owned of $1.0 million. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold exchange-traded products (“ETPs”), foreign exchange fluctuations and other miscellaneous items.
Income Taxes
- Our effective income tax rate for the second quarter of 2023 was 6.1%, resulting in income tax expense of $3.6 million. The effective tax rate differs from the federal statutory rate of 21% primarily due to a non-taxable gain on revaluation/termination of deferred consideration and a decrease in the deferred tax asset valuation allowance on losses recognized on our investments. These items were partly offset by non-deductible executive compensation.
- Our adjusted effective income tax rate was 24.5%(1).
SIX MONTH HIGHLIGHTS
- Operating revenues increased 7.8% as compared to 2022 due to higher average AUM and higher other income from large flows into some of our European products, partly offset by a lower average advisory fee.
- Operating expenses increased 8.9% as compared to 2022 primarily due to higher incentive compensation and headcount, fund management and administration costs and professional fees incurred in connection with an activist campaign. These increases were partly offset by lower contractual gold payments.
- Significant items reported in other income/(expense) in 2023 include: an increase in interest expense of 7.5% due to a higher level of debt outstanding; an increase in interest income of 33.2% due to an increase in our financial instruments owned; a non-cash charge of $1.4 million arising from the release of tax-related indemnification assets upon the expiration of the statute of limitations (an equal and offsetting benefit was recognized in income tax expense); gains on our financial instruments owned of $0.9 million and losses on our investments of $0.8 million. Gains and losses also generally arise from the sale of gold earned on management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
- Our effective income tax rate for 2023 was 6.5%, resulting in an income tax expense of $4.9 million. Our tax rate differs from the federal statutory rate of 21% primarily due to a non-taxable gain on revaluation/termination of deferred consideration, a reduction in unrecognized tax benefits associated with the release of the tax-related indemnification asset described above and a lower tax rate on foreign earnings. These items were partly offset by a non-deductible loss on extinguishment of our convertible notes during the first quarter of 2023, non-deductible executive compensation and an increase in the deferred tax asset valuation allowance on losses recognized on our investments.
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, July 28, 2023 at 11:00 a.m. ET, which can be accessed using the following link: http://event.choruscall.com/mediaframe/webcast.html?webcastid=G7ogAmF2.
Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the Participant international toll-free access numbers. To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time. All earnings materials and the webcast can be accessed through WisdomTree’s investor relations website at http://ir.wisdomtree.com. A replay of the webcast will also be available shortly after the call.
ABOUT WISDOMTREE
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models and solutions. We empower investors to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing next-generation digital products and structures, including digital funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.
WisdomTree currently has approximately $97.2 billion in assets under management globally.
For more information about WisdomTree and WisdomTree PrimeTM, visit: http://www.wisdomtree.com.
Please visit us on Twitter at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
| ____________ | ||
|
(1) |
See “Non-GAAP Financial Measurements.” | |
|
(2) |
Earnings/(loss) per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. | |
|
WisdomTree, Inc. |
||||||||||||||||
|
Key Operating Statistics (Unaudited) |
|
|
|
|||||||||||||
|
|
Three Months Ended |
|||||||||||||||
|
|
June 30, |
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||||||
|
GLOBAL ETPs ($ in millions) |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||||
|
Beginning of period assets |
$ |
90,740 |
|
|
$ |
81,993 |
|
$ |
70,878 |
|
$ |
74,302 |
|
$ |
79,407 |
|
|
Inflows/(outflows) |
|
2,327 |
|
|
|
6,341 |
|
|
5,264 |
|
|
1,747 |
|
|
3,852 |
|
|
Market appreciation/(depreciation) |
|
599 |
|
|
|
2,406 |
|
|
5,851 |
|
|
(5,171 |
) |
|
(8,953 |
) |
|
Fund closures |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
End of period assets |
$ |
93,666 |
|
|
$ |
90,740 |
|
$ |
81,993 |
|
$ |
70,878 |
|
$ |
74,302 |
|
|
Average assets during the period |
$ |
91,578 |
|
|
$ |
87,508 |
|
$ |
77,649 |
|
$ |
74,678 |
|
$ |
77,738 |
|
|
Average advisory fee during the period |
|
0.36 |
% |
|
|
0.36 |
% |
|
0.36 |
% |
|
0.38 |
% |
|
0.39 |
% |
|
Revenue days |
|
91 |
|
|
|
90 |
|
|
92 |
|
|
92 |
|
|
91 |
|
|
Number of ETFs—end of the period |
|
353 |
|
|
|
350 |
|
|
348 |
|
|
347 |
|
|
344 |
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. LISTED ETFs ($ in millions) |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|||||||||||
|
Beginning of period assets |
$ |
61,283 |
|
|
$ |
55,973 |
|
$ |
48,043 |
|
$ |
47,255 |
|
$ |
48,622 |
|
|
Inflows/(outflows) |
|
3,249 |
|
|
|
4,012 |
|
|
4,232 |
|
|
3,812 |
|
|
4,278 |
|
|
Market appreciation/(depreciation) |
|
1,371 |
|
|
|
1,298 |
|
|
3,698 |
|
|
(3,024 |
) |
|
(5,645 |
) |
|
End of period assets |
$ |
65,903 |
|
|
$ |
61,283 |
|
$ |
55,973 |
|
$ |
48,043 |
|
$ |
47,255 |
|
|
Average assets during the period |
$ |
62,712 |
|
|
$ |
59,430 |
|
$ |
53,655 |
|
$ |
49,466 |
|
$ |
48,270 |
|
|
Number of ETFs—end of the period |
|
80 |
|
|
|
80 |
|
|
79 |
|
|
78 |
|
|
77 |
|
|
|
|
|
|
|
|
|
||||||||||
|
EUROPEAN LISTED ETPs ($ in millions) |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|||||||||||
|
Beginning of period assets |
$ |
29,457 |
|
|
$ |
26,020 |
|
$ |
22,835 |
|
$ |
27,047 |
|
$ |
30,785 |
|
|
(Outflows)/inflows |
|
(922 |
) |
|
|
2,329 |
|
|
1,032 |
|
|
(2,065 |
) |
|
(426 |
) |
|
Market (depreciation)/appreciation |
|
(772 |
) |
|
|
1,108 |
|
|
2,153 |
|
|
(2,147 |
) |
|
(3,308 |
) |
|
Fund closures |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
End of period assets |
$ |
27,763 |
|
|
$ |
29,457 |
|
$ |
26,020 |
|
$ |
22,835 |
|
$ |
27,047 |
|
|
Average assets during the period |
$ |
28,866 |
|
|
$ |
28,078 |
|
$ |
23,994 |
|
$ |
25,212 |
|
$ |
29,468 |
|
|
Number of ETPs—end of the period |
|
273 |
|
|
|
270 |
|
|
269 |
|
|
269 |
|
|
267 |
|
|
|
|
|
|
|
|
|||||||||||
|
PRODUCT CATEGORIES ($ in millions) |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Equity |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
24,534 |
|
|
$ |
24,112 |
|
$ |
20,952 |
|
$ |
21,058 |
|
$ |
23,738 |
|
|
Inflows/(outflows) |
|
414 |
|
|
|
(149 |
) |
|
1,021 |
|
|
1,239 |
|
|
306 |
|
|
Market appreciation/(depreciation) |
|
1,053 |
|
|
|
571 |
|
|
2,139 |
|
|
(1,345 |
) |
|
(2,986 |
) |
|
End of period assets |
$ |
26,001 |
|
|
$ |
24,534 |
|
$ |
24,112 |
|
$ |
20,952 |
|
$ |
21,058 |
|
|
Average assets during the period |
$ |
24,732 |
|
|
$ |
24,726 |
|
$ |
23,492 |
|
$ |
22,535 |
|
$ |
22,362 |
|
|
|
|
|
|
|
|
|||||||||||
|
Commodity & Currency |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
24,924 |
|
|
$ |
22,097 |
|
$ |
19,561 |
|
$ |
23,624 |
|
$ |
26,302 |
|
|
(Outflows)/inflows |
|
(1,512 |
) |
|
|
2,003 |
|
|
796 |
|
|
(2,179 |
) |
|
(475 |
) |
|
Market (depreciation)/appreciation |
|
(1,028 |
) |
|
|
824 |
|
|
1,740 |
|
|
(1,884 |
) |
|
(2,203 |
) |
|
End of period assets |
|
22,384 |
|
|
$ |
24,924 |
|
$ |
22,097 |
|
$ |
19,561 |
|
$ |
23,624 |
|
|
Average assets during the period |
$ |
24,033 |
|
|
$ |
23,806 |
|
$ |
20,345 |
|
$ |
21,625 |
|
$ |
25,767 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed Income |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
18,708 |
|
|
$ |
15,273 |
|
$ |
11,695 |
|
$ |
9,192 |
|
$ |
5,418 |
|
|
Inflows/(outflows) |
|
1,471 |
|
|
|
3,513 |
|
|
3,393 |
|
|
2,627 |
|
|
4,038 |
|
|
Market appreciation/(depreciation) |
|
36 |
|
|
|
(78 |
) |
|
185 |
|
|
(124 |
) |
|
(264 |
) |
|
End of period assets |
$ |
20,215 |
|
|
$ |
18,708 |
|
$ |
15,273 |
|
$ |
11,695 |
|
$ |
9,192 |
|
|
Average assets during the period |
$ |
19,185 |
|
|
$ |
17,176 |
|
$ |
13,962 |
|
$ |
10,077 |
|
$ |
7,426 |
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|||||||||||||||
|
|
June 30, |
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
International Developed Market Equity |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
11,433 |
|
|
$ |
10,195 |
|
$ |
9,183 |
|
$ |
9,968 |
|
$ |
11,422 |
|
|
Inflows/(outflows) |
|
1,592 |
|
|
|
450 |
|
|
40 |
|
|
(115 |
) |
|
79 |
|
|
Market appreciation/(depreciation) |
|
398 |
|
|
|
788 |
|
|
972 |
|
|
(670 |
) |
|
(1,533 |
) |
|
End of period assets |
$ |
13,423 |
|
|
$ |
11,433 |
|
$ |
10,195 |
|
$ |
9,183 |
|
$ |
9,968 |
|
|
Average assets during the period |
$ |
12,276 |
|
|
$ |
10,879 |
|
$ |
10,000 |
|
$ |
10,032 |
|
$ |
10,695 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Emerging Market Equity |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
8,811 |
|
|
$ |
8,116 |
|
$ |
7,495 |
|
$ |
8,386 |
|
$ |
9,991 |
|
|
Inflows/(outflows) |
|
329 |
|
|
|
486 |
|
|
(53 |
) |
|
114 |
|
|
(223 |
) |
|
Market appreciation/(depreciation) |
|
51 |
|
|
|
209 |
|
|
674 |
|
|
(1,005 |
) |
|
(1,382 |
) |
|
End of period assets |
$ |
9,191 |
|
|
$ |
8,811 |
|
$ |
8,116 |
|
$ |
7,495 |
|
$ |
8,386 |
|
|
Average assets during the period |
$ |
8,998 |
|
|
$ |
8,666 |
|
$ |
7,770 |
|
$ |
8,329 |
|
$ |
9,155 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Leveraged & Inverse |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
1,785 |
|
|
$ |
1,754 |
|
$ |
1,523 |
|
$ |
1,618 |
|
$ |
1,856 |
|
|
Inflows/(outflows) |
|
12 |
|
|
|
43 |
|
|
59 |
|
|
45 |
|
|
90 |
|
|
Market appreciation/(depreciation) |
|
67 |
|
|
|
(12 |
) |
|
172 |
|
|
(140 |
) |
|
(328 |
) |
|
End of period assets |
$ |
1,864 |
|
|
$ |
1,785 |
|
$ |
1,754 |
|
$ |
1,523 |
|
$ |
1,618 |
|
|
Average assets during the period |
$ |
1,798 |
|
|
$ |
1,757 |
|
$ |
1,623 |
|
$ |
1,589 |
|
$ |
1,765 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Alternatives |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
306 |
|
|
$ |
310 |
|
$ |
306 |
|
$ |
305 |
|
$ |
293 |
|
|
Inflows/(outflows) |
|
22 |
|
|
|
(18 |
) |
|
12 |
|
|
16 |
|
|
34 |
|
|
Market appreciation/(depreciation) |
|
12 |
|
|
|
14 |
|
|
(8 |
) |
|
(15 |
) |
|
(22 |
) |
|
End of period assets |
$ |
340 |
|
|
$ |
306 |
|
$ |
310 |
|
$ |
306 |
|
$ |
305 |
|
|
Average assets during the period |
$ |
320 |
|
|
$ |
308 |
|
$ |
305 |
|
$ |
313 |
|
$ |
299 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Cryptocurrency |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
239 |
|
|
$ |
136 |
|
$ |
163 |
|
$ |
151 |
|
$ |
383 |
|
|
(Outflows)/inflows |
|
(1 |
) |
|
|
13 |
|
|
(4 |
) |
|
— |
|
|
3 |
|
|
Market appreciation/(depreciation) |
|
10 |
|
|
|
90 |
|
|
(23 |
) |
|
12 |
|
|
(235 |
) |
|
End of period assets |
$ |
248 |
|
|
$ |
239 |
|
$ |
136 |
|
$ |
163 |
|
$ |
151 |
|
|
Average assets during the period |
$ |
236 |
|
|
$ |
190 |
|
$ |
152 |
|
$ |
178 |
|
$ |
265 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Closed ETPs |
|
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
4 |
|
|
Fund closures |
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(4 |
) |
|
End of period assets |
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Average assets during the period |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Headcount |
|
291 |
|
279 |
|
273 |
|
274 |
264 |
|||||||
|
Note: Previously issued statistics may be restated due to fund closures and trade adjustments |
||||||||||||||||
|
Source: WisdomTree |
||||||||||||||||
|
WISDOMTREE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) |
|||||||
|
|
June 30, |
Dec. 31, |
|||||
|
|
(Unaudited) |
|
|||||
|
ASSETS |
|
|
|||||
|
Current assets: |
|
|
|||||
|
Cash and cash equivalents |
$ |
83,735 |
|
$ |
132,101 |
|
|
|
Financial instruments owned, at fair value |
|
65,492 |
|
|
126,239 |
|
|
|
Accounts receivable |
|
34,208 |
|
|
30,549 |
|
|
|
Prepaid expenses |
|
8,161 |
|
|
4,684 |
|
|
|
Income taxes receivable |
|
894 |
|
|
— |
|
|
|
Other current assets |
|
376 |
|
|
390 |
|
|
|
Total current assets |
|
192,866 |
|
|
293,963 |
|
|
|
Fixed assets, net |
|
487 |
|
|
544 |
|
|
|
Indemnification receivable |
|
— |
|
|
1,353 |
|
|
|
Securities held-to-maturity |
|
245 |
|
|
259 |
|
|
|
Deferred tax assets, net |
|
7,626 |
|
|
10,536 |
|
|
|
Investments |
|
40,002 |
|
|
35,721 |
|
|
|
Right of use assets—operating leases |
|
849 |
|
|
1,449 |
|
|
|
Goodwill |
|
86,841 |
|
|
85,856 |
|
|
|
Intangible assets, net |
|
604,407 |
|
|
603,567 |
|
|
|
Other noncurrent assets |
|
454 |
|
|
571 |
|
|
|
Total assets |
$ |
933,777 |
|
$ |
1,033,819 |
|
|
|
|
|
|
|||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|||||
|
LIABILITIES |
|
|
|||||
|
Current liabilities: |
|
|
|||||
|
Fund management and administration payable |
$ |
30,635 |
|
$ |
36,521 |
|
|
|
Compensation and benefits payable |
|
17,800 |
|
|
24,121 |
|
|
|
Operating lease liabilities |
|
849 |
|
|
1,125 |
|
|
|
Convertible notes—current |
|
— |
|
|
59,197 |
|
|
|
Deferred consideration—gold payments |
|
— |
|
|
16,796 |
|
|
|
Income taxes payable |
|
— |
|
|
1,599 |
|
|
|
Accounts payable and other liabilities |
|
18,997 |
|
|
9,075 |
|
|
|
Total current liabilities |
|
68,281 |
|
|
148,434 |
|
|
|
Convertible notes—long term |
|
274,140 |
|
|
262,019 |
|
|
|
Deferred consideration—gold payments |
|
— |
|
|
183,494 |
|
|
|
Operating lease liabilities |
|
— |
|
|
339 |
|
|
|
Other noncurrent liabilities |
|
— |
|
|
1,353 |
|
|
|
Total liabilities |
|
342,421 |
|
|
595,639 |
|
|
|
Preferred stock: |
|
|
|||||
|
Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding |
|
132,569 |
|
|
132,569 |
|
|
|
STOCKHOLDERS’ EQUITY |
|
||||||
|
Preferred stock: |
|
|
|||||
|
Series C Non-Voting Convertible, par value $0.01; 13.087 shares authorized, issued and outstanding |
|
— |
|
|
— |
|
|
|
Common stock, par value $0.01; 400,000 shares authorized: |
|
|
|||||
|
Issued and outstanding: 150,343 and 146,517 at June 30, 2023 and December 31, 2022, respectively |
|
1,503 |
|
|
1,465 |
|
|
|
Additional paid-in capital |
|
383,621 |
|
|
291,847 |
|
|
|
Accumulated other comprehensive loss |
|
(693 |
) |
|
(1,420 |
) |
|
|
Retained earnings |
|
74,356 |
|
|
13,719 |
|
|
|
Total stockholders’ equity |
|
458,787 |
|
|
305,611 |
|
|
|
Total liabilities and stockholders’ equity |
$ |
933,777 |
|
$ |
1,033,819 |
|
|
|
|
|
|
|||||
Contacts
Investor Relations
Jeremy Campbell
+1.646.522.2602
Jeremy.campbell@wisdomtree.com
Media Relations
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com
