WisdomTree Announces Third Quarter 2023 Results

$11 Billion of Year-to-Date Inflows and 900bps of Margin Improvement vs. Q3 2022

Diluted Earnings Per Share of $0.07 ($0.10, as Adjusted)

12 consecutive quarters of global net inflows

17% annualized organic growth rate across all products

NEW YORK–(BUSINESS WIRE)–WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the third quarter of 2023.


$13.0 million net income ($18.0(1) million net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.

$93.7 billion of ending AUM, unchanged from the prior quarter.

$2.0 billion of net inflows, primarily driven by inflows into our fixed income, U.S. equity, international equity and emerging markets products, partly offset by outflows from our commodity products.

0.36% average advisory fee, unchanged from the prior quarter.

$90.4 million of operating revenues, an increase of 5.5% from the prior quarter primarily due to higher average AUM.

80.1% gross margin(1), a 0.8 point increase from the prior quarter due to higher revenues.

29.5% operating income margin, an 8.3 point increase compared to our operating income margin in the prior quarter due to higher revenues, as well as lower professional fees incurred in connection with an activist campaign. Our adjusted operating income margin increased 2.6 points compared to our adjusted operating margin of 26.9%(1) in the prior quarter due to higher revenues.

$0.03 quarterly dividend declared, payable on November 22, 2023 to stockholders of record as of the close of business on November 8, 2023.

Update from Jonathan Steinberg, WisdomTree CEO

“WisdomTree’s results for the third quarter confirm our progress as we continue to successfully drive organic growth and margin expansion. At 17% year-to-date, our pace of organic growth remains the best among all our publicly traded U.S. asset manager peers. The benefits of our scale and an active, disciplined approach to managing margin has generated 900 basis points of operating margin expansion in the third quarter versus the same period last year. Even as we remain focused on organic growth and margin expansion, we are making steady progress in rolling out WisdomTree Prime™ across the U.S, with 12 states added in the third quarter, coupled with enhanced products and features and new digital funds on track to be launched in the fourth quarter. Taken together, these steps solidify WisdomTree’s position as an early mover with a multi-year head start on the industry shift toward tokenization and blockchain-enabled finance.” 

Update from Jarrett Lilien, WisdomTree COO and President

“We are executing against our strategy and consistently delivering results, garnering nearly $2 billion of net inflows this quarter – our 12th consecutive quarter of positive flows. This momentum over the past three years is proving to be sustainable, and we have confidence that it will continue.

 

On the client side, both new and existing relationships are becoming larger, broader and deeper, as many continue to grow in average size while also utilizing more of our products and services, such as our WisdomTree managed model portfolios. Our managed models are currently available to over 65,000 advisors in the U.S., and we have seen significant year-over-year traction at both the large distribution networks as well as in the RIA and independent broker-dealer channels. We are well-positioned to drive continued organic growth in the coming quarters and years.” 

OPERATING AND FINANCIAL HIGHLIGHTS

 

Three Months Ended 

 

Sept. 30,

2023

June 30,

2023

Mar. 31,

2023

Dec. 31,

2022

Sept. 30,

2022

Consolidated Operating Highlights ($ in billions):

 

 

 

 

 

AUM—end of period

$

93.7

$

93.7

$

90.7

$

82.0

$

70.9

Net inflows

$

2.0

$

2.3

$

6.3

$

5.3

$

1.7

Average AUM

$

95.7

$

91.6

$

87.5

$

77.6

$

74.7

Average advisory fee

 

0.36%

 

0.36%

 

0.36%

 

0.36%

 

0.38%

 

 

 

 

 

 

Consolidated Financial Highlights ($ in millions, except per share amounts):

 

 

 

 

 

Operating revenues

$

90.4

$

85.7

$

82.0

$

73.3

$

72.4

Net income/(loss)

$

13.0

$

54.3

$

16.2

$

(28.3)

$

81.2

Diluted earnings/(loss) per share

$

0.07

$

0.32

$

0.10

$

(0.20)

$

0.50

Operating income margin

 

29.5%

 

21.2%

 

20.2%

 

16.0%

 

20.5%

As Adjusted (Non-GAAP(1)):

 

 

 

 

 

Gross margin

 

80.1%

 

79.3%

 

79.1%

 

76.9%

 

77.5%

Net income, as adjusted

$

18.0

$

14.9

$

11.2

$

7.0

$

9.3

Diluted earnings per share, as adjusted

$

0.10

$

0.09

$

0.07

$

0.04

$

0.06

Operating income margin, as adjusted

 

29.5%

 

26.9%

 

21.4%

 

16.0%

 

20.5%

 

 

 

 

 

 

RECENT BUSINESS DEVELOPMENTS

Company News

 

  • In August 2023, we appointed Rilla Delorier to our Board of Directors, having received the full support of the Board.
  • In September 2023, the WisdomTree Siegel Strategic Value Index™ (BBG Ticker: CIBQWS6E) won the FIA Index of the Year Award by Structured Retail Products (SRP). The Siegel Index was developed by Professor Jeremy Siegel, Senior Economist to WisdomTree, and recognizes innovative quantitative investment strategy and strength of ongoing partnership with Annexus, CIBC and WisdomTree.

Product News

 

  • In August 2023, we activated staking in WisdomTree Physical Ethereum (ETHW), helping to secure the blockchain network and participate in the validation of transactions; we launched GBP and EUR Hedged share classes for the WisdomTree US Quality Dividend Growth UCITS ETF (DGRA) on the London Stock Exchange, Borsa Italiana and Börse Xetra; we launched the WisdomTree EURO STOXX Banks 3x Daily Short (3BAS) on London Stock Exchange, Borsa Italiana and Börse Xetra; and we launched the WisdomTree CAC 40 3x Daily Leveraged (3CAC) and WisdomTree CAC 40 3x Daily Short (3CAS) on Euronext Paris and Börse Xetra.
  • In September 2023, we cross-listed 13 Delta-1 and short-and-leveraged ETPs on Euronext Paris.
  • In October 2023, we cross-listed our first seven UCITS ETFs on Euronext Paris; and we launched the WisdomTree US Efficient Core UCITS ETF (NTSX) on the London Stock Exchange, Borsa Italiana and Börse Xetra.

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

Sept. 30,

2023

 

June 30,

2023

 

Mar. 31,

2023

 

Dec. 31,

2022

 

Sept. 30,

2022

 

Sept. 30,

2023

 

Sept. 30,

2022

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory fees

$

86,598

 

 

$

82,004

 

 

$

77,637

 

 

$

70,913

 

 

$

70,616

 

 

$

246,239

 

 

$

222,719

 

Other income

 

3,825

 

 

 

3,720

 

 

 

4,407

 

 

 

2,397

 

 

 

1,798

 

 

 

11,952

 

 

 

5,316

 

Total revenues

 

90,423

 

 

 

85,724

 

 

 

82,044

 

 

 

73,310

 

 

 

72,414

 

 

 

258,191

 

 

 

228,035

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

27,955

 

 

 

26,319

 

 

 

27,398

 

 

 

24,831

 

 

 

23,714

 

 

 

81,672

 

 

 

73,066

 

Fund management and administration

 

18,023

 

 

 

17,727

 

 

 

17,153

 

 

 

16,906

 

 

 

16,285

 

 

 

52,903

 

 

 

47,855

 

Marketing and advertising

 

3,833

 

 

 

4,465

 

 

 

4,007

 

 

 

4,240

 

 

 

3,145

 

 

 

12,305

 

 

 

11,062

 

Sales and business development

 

3,383

 

 

 

3,326

 

 

 

2,994

 

 

 

3,407

 

 

 

2,724

 

 

 

9,703

 

 

 

8,464

 

Contractual gold payments

 

 

 

 

1,583

 

 

 

4,486

 

 

 

4,107

 

 

 

4,105

 

 

 

6,069

 

 

 

13,001

 

Professional fees

 

3,719

 

 

 

8,334

 

 

 

3,715

 

 

 

2,666

 

 

 

2,367

 

 

 

15,768

 

 

 

11,134

 

Occupancy, communications and equipment

 

1,203

 

 

 

1,172

 

 

 

1,101

 

 

 

1,110

 

 

 

986

 

 

 

3,476

 

 

 

2,788

 

Depreciation and amortization

 

307

 

 

 

121

 

 

 

109

 

 

 

104

 

 

 

58

 

 

 

537

 

 

 

158

 

Third-party distribution fees

 

2,694

 

 

 

1,881

 

 

 

2,253

 

 

 

1,793

 

 

 

1,833

 

 

 

6,828

 

 

 

5,863

 

Other

 

2,601

 

 

 

2,615

 

 

 

2,257

 

 

 

2,427

 

 

 

2,324

 

 

 

7,473

 

 

 

6,278

 

Total operating expenses

 

63,718

 

 

 

67,543

 

 

 

65,473

 

 

 

61,591

 

 

 

57,541

 

 

 

196,734

 

 

 

179,669

 

Operating income

 

26,705

 

 

 

18,181

 

 

 

16,571

 

 

 

11,719

 

 

 

14,873

 

 

 

61,457

 

 

 

48,366

 

Other Income/(Expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(3,461

)

 

 

(4,021

)

 

 

(4,002

)

 

 

(3,736

)

 

 

(3,734

)

 

 

(11,484

)

 

 

(11,199

)

Gain/(loss) on revaluation/termination of deferred consideration—gold payments

 

 

 

 

41,361

 

 

 

20,592

 

 

 

(35,423

)

 

 

77,895

 

 

 

61,953

 

 

 

63,188

 

Interest income

 

791

 

 

 

1,000

 

 

 

1,083

 

 

 

945

 

 

 

811

 

 

 

2,874

 

 

 

2,375

 

Impairments

 

(2,703

)

 

 

 

 

 

(4,900

)

 

 

 

 

 

 

 

 

(7,603

)

 

 

 

Loss on extinguishment of convertible notes

 

 

 

 

 

 

 

(9,721

)

 

 

 

 

 

 

 

 

(9,721

)

 

 

 

Other losses and gains, net

 

(2,512

)

 

 

1,286

 

 

 

(2,007

)

 

 

(1,815

)

 

 

(5,289

)

 

 

(3,233

)

 

 

(34,470

)

Income/(loss) before income taxes

 

18,820

 

 

 

57,807

 

 

 

17,616

 

 

 

(28,310

)

 

 

84,556

 

 

 

94,243

 

 

 

68,260

 

Income tax expense/(benefit)

 

5,836

 

 

 

3,555

 

 

 

1,383

 

 

 

(21

)

 

 

3,327

 

 

 

10,774

 

 

 

(10,713

)

Net income/(loss)

$

12,984

 

 

$

54,252

 

 

$

16,233

 

 

$

(28,289

)

 

$

81,229

 

 

$

83,469

 

 

$

78,973

 

Earnings/(loss) per share—basic

$

0.07(2)

 

$

0.32(2)

 

$

0.10(2)

 

$

(0.20

)

 

$

0.50(2)

 

$

0.50(2)

 

$

0.49(2)

Earnings/(loss) per share—diluted

$

0.07

 

 

$

0.32

 

 

$

0.10

 

 

$

(0.20

)

 

$

0.50(2)

 

$

0.49

 

 

$

0.49(2)

Weighted average common shares—basic

 

145,284

 

 

 

144,351

 

 

 

143,862

 

 

 

143,126

 

 

$

143,120

 

 

 

144,505

 

 

 

142,984

 

Weighted average common shares—diluted

 

177,140

 

 

 

170,672

 

 

 

159,887

 

 

 

143,126

 

 

 

158,953

 

 

 

169,997

 

 

 

158,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Adjusted (Non-GAAP(1))

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

$

63,718

 

 

$

62,630

 

 

$

64,506

 

 

$

61,591

 

 

$

57,541

 

 

 

 

 

Operating income

$

26,705

 

 

$

23,094

 

 

$

17,538

 

 

$

11,719

 

 

$

14,873

 

 

 

 

 

Income before income taxes

$

23,902

 

 

$

19,752

 

 

$

14,485

 

 

$

8,615

 

 

$

12,645

 

 

 

 

 

Income tax expense

$

5,854

 

 

$

4,833

 

 

$

3,287

 

 

$

1,588

 

 

$

3,323

 

 

 

 

 

Net income

$

18,048

 

 

$

14,919

 

 

$

11,198

 

 

$

7,027

 

 

$

9,322

 

 

 

 

 

Earnings per share—diluted

$

0.10

 

 

$

0.09

 

 

$

0.07

 

 

$

0.04

 

 

$

0.06

 

 

 

 

 

Weighted average common shares—diluted

 

177,140

 

 

 

170,672

 

 

 

159,887

 

 

 

159,478

 

 

 

158,953

 

 

 

 

 

QUARTERLY HIGHLIGHTS

Operating Revenues

  • Operating revenues increased 5.5% and 24.9% from the second quarter of 2023 and the third quarter of 2022, respectively, primarily due to higher average AUM.
  • Our average advisory fee was 0.36%, 0.36% and 0.38% during the third quarter of 2023, the second quarter of 2023 and the third quarter of 2022, respectively.

Operating Expenses

  • Operating expenses decreased 5.7% from the second quarter of 2023 primarily due to lower professional fees, the termination of our deferred consideration—gold payments obligation on May 10, 2023 and lower marketing expenses. These decreases were partly offset by higher incentive compensation and third-party distribution fees.
  • Operating expenses increased 10.7% from the third quarter of 2022 primarily due to higher stock-based compensation and headcount, fund management and administration costs, professional fees, third-party distribution fees, marketing expenses and sales and business development expenses. These increases were partly offset by the termination of our deferred consideration—gold payments obligation.

Other Income/(Expenses)

  • Interest expense decreased 13.9% from the second quarter of 2023 due to a lower average level of debt outstanding. Interest expense decreased 7.3% from the third quarter of 2022 due to a lower level of debt outstanding, partly offset by a higher effective interest rate.
  • Interest income decreased 20.9% from the second quarter of 2023 due to lower average levels of financial instruments owned and was essentially unchanged from the third quarter of 2022.
  • During the third quarter of 2023, we recognized a non-cash impairment charge of $2.7 million, primarily on our investment in Securrency, Inc., as we marked our investment to estimated realizable value in connection with Securrency entering into an agreement to be acquired by an unrelated third party.
  • Other losses and gains, net was a loss of $2.5 million for the third quarter of 2023. This quarter includes losses on our financial instruments of $2.0 million and other losses on our investments of $0.4 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 third quarter of 2023 was 31.0%, resulting in income tax expense of $5.8 million. The effective tax rate differs from the federal statutory rate of 21% primarily due to an increase in the deferred tax asset valuation allowance on losses recognized on the Company’s investments and non-deductible executive compensation.
  • Our adjusted effective income tax rate was 24.5%(1).

NINE MONTH HIGHLIGHTS

  • Operating revenues increased 13.2% as compared to 2022 due to higher average AUM and higher other income from large flows from some of our European products, partly offset by a lower average advisory fee.
  • Operating expenses increased 9.5% as compared to 2022 primarily due to higher stock-based compensation and headcount, fund management and administration costs, professional fees, marketing expenses, sales and business development expenses, third-party distribution fees and other expenses. These increases were partly offset by the termination of our deferred consideration—gold payments obligation on May 10, 2023.
  • Significant items reported in other income/(expense) in 2023 include: a non-cash gain on revaluation/termination of deferred consideration of $62.0 million during the first and second quarter; loss on extinguishment of convertible notes of $9.7 million arising from the repurchase of $115.0 million in aggregate principal amount of our 4.25% Convertible Senior Notes (the “2020 Notes”) in the first quarter; non-cash impairment charges totaling $7.6 million, primarily on our investments in Securrency, Inc.; losses on our financial instruments owned of $1.0 million and other losses on our investments of $1.2 million; and 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 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 11.4%, resulting in income tax expense of $10.8 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, 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 the 2020 Notes during the first quarter of 2023, an increase in the deferred tax asset valuation allowance on losses recognized on our investments and non-deductible executive compensation.

CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS

WisdomTree will discuss its results and operational highlights during a live webcast on Friday, October 27, 2023 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=wtCKhqvm.

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 https://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, solutions and products leveraging blockchain-enabled technology. We empower investors and consumers 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 and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.

WisdomTree currently has approximately $94 billion in assets under management globally.

For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.

Please visit us on X, formerly known as 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

 

Sept. 30,

2023

 

June 30,

2023

 

Mar. 31,

2023

 

Dec. 31,

2022

 

Sept. 30,

2022

GLOBAL ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Beginning of period assets

$

93,666

 

 

$

90,740

 

 

$

81,993

 

 

$

70,878

 

 

$

74,302

 

Inflows/(outflows)

 

1,983

 

 

 

2,327

 

 

 

6,341

 

 

 

5,264

 

 

 

1,747

 

Market (depreciation)/appreciation

 

(1,907

)

 

 

599

 

 

 

2,406

 

 

 

5,851

 

 

 

(5,171

)

Fund closures

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

End of period assets

$

93,735

 

 

$

93,666

 

 

$

90,740

 

 

$

81,993

 

 

$

70,878

 

Average assets during the period

$

95,743

 

 

$

91,578

 

 

$

87,508

 

 

$

77,649

 

 

$

74,677

 

Average advisory fee during the period

 

0.36%

 

 

0.36%

 

 

0.36%

 

 

0.36%

 

 

0.38%

Revenue days

 

92

 

 

 

91

 

 

 

90

 

 

 

92

 

 

 

92

 

Number of ETFs—end of the period

 

353

 

 

 

353

 

 

 

350

 

 

 

348

 

 

 

347

 

 

 

 

 

 

 

 

 

 

 

U.S. LISTED ETFs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

65,903

 

 

$

61,283

 

 

$

55,973

 

 

$

48,043

 

 

$

47,255

 

Inflows/(outflows)

 

3,601

 

 

 

3,249

 

 

 

4,012

 

 

 

4,232

 

 

 

3,812

 

Market (depreciation)/appreciation

 

(1,486

)

 

 

1,371

 

 

 

1,298

 

 

 

3,698

 

 

 

(3,024

)

Fund closures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period assets

$

68,018

 

 

$

65,903

 

 

$

61,283

 

 

$

55,973

 

 

$

48,043

 

Average assets during the period

$

68,008

 

 

$

62,712

 

 

$

59,430

 

 

$

53,655

 

 

$

49,466

 

Number of ETFs—end of the period

 

80

 

 

 

80

 

 

 

80

 

 

 

79

 

 

 

78

 

 

 

 

 

 

 

 

 

 

 

EUROPEAN LISTED ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

27,763

 

 

$

29,457

 

 

$

26,020

 

 

$

22,835

 

 

$

27,047

 

(Outflows)/inflows

 

(1,618

)

 

 

(922

)

 

 

2,329

 

 

 

1,032

 

 

 

(2,065

)

Market (depreciation)/appreciation

 

(421

)

 

 

(772

)

 

 

1,108

 

 

 

2,153

 

 

 

(2,147

)

Fund closures

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

End of period assets

$

25,717

 

 

$

27,763

 

 

$

29,457

 

 

$

26,020

 

 

$

22,835

 

Average assets during the period

$

27,735

 

 

$

28,866

 

 

$

28,078

 

 

$

23,994

 

 

$

25,211

 

Number of ETPs—end of the period

 

273

 

 

 

273

 

 

 

270

 

 

 

269

 

 

 

269

 

 

 

 

 

 

 

 

 

 

PRODUCT CATEGORIES ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Equity

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

26,001

 

 

$

24,534

 

 

$

24,112

 

 

$

20,952

 

 

$

21,058

 

Inflows/(outflows)

 

864

 

 

 

414

 

 

 

(149

)

 

 

1,021

 

 

 

1,239

 

Market (depreciation)/appreciation

 

(1,222

)

 

 

1,053

 

 

 

571

 

 

 

2,139

 

 

 

(1,345

)

End of period assets

$

25,643

 

 

$

26,001

 

 

$

24,534

 

 

$

24,112

 

 

$

20,952

 

Average assets during the period

$

26,502

 

 

$

24,732

 

 

$

24,725

 

 

$

23,492

 

 

$

22,534

 

 

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

20,204

 

 

$

18,696

 

 

$

15,259

 

 

$

11,683

 

 

$

9,178

 

Inflows/(outflows)

 

1,675

 

 

 

1,472

 

 

 

3,516

 

 

 

3,392

 

 

 

2,628

 

Market (depreciation)/appreciation

 

(82

)

 

 

36

 

 

 

(79

)

 

 

184

 

 

 

(123

)

End of period assets

$

21,797

 

 

$

20,204

 

 

$

18,696

 

 

$

15,259

 

 

$

11,683

 

Average assets during the period

$

20,955

 

 

$

19,173

 

 

$

17,164

 

 

$

13,949

 

 

$

10,065

 

 

 

 

 

 

 

 

 

 

 

Commodity & Currency

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

22,384

 

 

$

24,924

 

 

$

22,097

 

 

$

19,561

 

 

$

23,624

 

(Outflows)/inflows

 

(1,815

)

 

 

(1,513

)

 

 

2,003

 

 

 

796

 

 

 

(2,179

)

Market (depreciation)/appreciation

 

(103

)

 

 

(1,027

)

 

 

824

 

 

 

1,740

 

 

 

(1,884

)

End of period assets

$

20,466

 

 

$

22,384

 

 

$

24,924

 

 

$

22,097

 

 

$

19,561

 

Average assets during the period

$

22,278

 

 

$

24,033

 

 

$

23,806

 

 

$

20,345

 

 

$

21,625

 

 

Three Months Ended

 

Sept. 30,

2023

 

June 30,

2023

 

Mar. 31,

2023

 

Dec. 31,

2022

 

Sept 30,

2022

 

 

 

 

 

 

 

 

 

 

International Developed Market Equity

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

13,423

 

 

$

11,433

 

 

$

10,195

 

 

$

9,183

 

 

$

9,968

 

Inflows/(outflows)

 

798

 

 

 

1,592

 

 

 

450

 

 

 

40

 

 

 

(115

)

Market (depreciation)/appreciation

 

(319

)

 

 

398

 

 

 

788

 

 

 

972

 

 

 

(670

)

End of period assets

$

13,902

 

 

$

13,423

 

 

$

11,433

 

 

$

10,195

 

 

$

9,183

 

Average assets during the period

$

13,873

 

 

$

12,276

 

 

$

10,879

 

 

$

10,000

 

 

$

10,032

 

 

 

 

 

 

 

 

 

 

 

Emerging Market Equity

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

9,191

 

 

$

8,811

 

 

$

8,116

 

 

$

7,495

 

 

$

8,386

 

Inflows/(outflows)

 

451

 

 

 

329

 

 

 

486

 

 

 

(53

)

 

 

114

 

Market (depreciation)/appreciation

 

(73

)

 

 

51

 

 

 

209

 

 

 

674

 

 

 

(1,005

)

End of period assets

$

9,569

 

 

$

9,191

 

 

$

8,811

 

 

$

8,116

 

 

$

7,495

 

Average assets during the period

$

9,652

 

 

$

8,998

 

 

$

8,666

 

 

$

7,770

 

 

$

8,329

 

 

 

 

 

 

 

 

 

 

 

Leveraged & Inverse

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

1,864

 

 

$

1,785

 

 

$

1,754

 

 

$

1,523

 

 

$

1,618

 

(Outflows)/inflows

 

(1

)

 

 

12

 

 

 

43

 

 

 

59

 

 

 

45

 

Market (depreciation)/appreciation

 

(82

)

 

 

67

 

 

 

(12

)

 

 

172

 

 

 

(140

)

End of period assets

$

1,781

 

 

$

1,864

 

 

$

1,785

 

 

$

1,754

 

 

$

1,523

 

Average assets during the period

$

1,894

 

 

$

1,798

 

 

$

1,757

 

 

$

1,623

 

 

$

1,589

 

 

 

 

 

 

 

 

 

 

 

Alternatives

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

340

 

 

$

306

 

 

$

310

 

 

$

306

 

 

$

305

 

Inflows/(outflows)

 

5

 

 

 

22

 

 

 

(18

)

 

 

12

 

 

 

16

 

Market (depreciation)/appreciation

 

(11

)

 

 

12

 

 

 

14

 

 

 

(8

)

 

 

(15

)

End of period assets

$

334

 

 

$

340

 

 

$

306

 

 

$

310

 

 

$

306

 

Average assets during the period

$

342

 

 

$

320

 

 

$

308

 

 

$

305

 

 

$

313

 

 

 

 

 

 

 

 

 

 

 

Cryptocurrency

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

248

 

 

$

239

 

 

$

136

 

 

$

163

 

 

$

151

 

Inflows/(outflows)

 

10

 

 

 

(1

)

 

 

13

 

 

 

(4

)

 

 

 

Market (depreciation)/appreciation

 

(15

)

 

 

10

 

 

 

90

 

 

 

(23

)

 

 

12

 

End of period assets

$

243

 

 

$

248

 

 

$

239

 

 

$

136

 

 

$

163

 

Average assets during the period

$

238

 

 

$

236

 

 

$

190

 

 

$

152

 

 

$

178

 

 

 

 

 

 

 

 

 

 

 

Closed ETPs

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

11

 

 

$

12

 

 

$

14

 

 

$

12

 

 

$

14

 

(Outflows)/inflows

 

(4

)

 

 

 

 

 

(3

)

 

 

1

 

 

 

(1

)

Market (depreciation)/appreciation

 

 

 

 

(1

)

 

 

1

 

 

 

1

 

 

 

(1

)

Fund closures

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

End of period assets

$

 

 

$

11

 

 

$

12

 

 

$

14

 

 

$

12

 

Average assets during the period

$

9

 

 

$

12

 

 

$

13

 

 

$

13

 

 

$

12

 

 

 

 

 

 

 

 

 

 

 

Headcount

 

299

 

 

 

291

 

 

 

279

 

 

 

273

 

 

 

274

 

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)

 

Sept. 30,

2023

 

Dec. 31,

2022

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

89,481

 

 

$

132,101

 

Financial instruments owned, at fair value

 

78,950

 

 

 

126,239

 

Accounts receivable

 

35,868

 

 

 

30,549

 

Prepaid expenses

 

6,511

 

 

 

4,684

 

Other current assets

 

1,004

 

 

 

390

 

Total current assets

 

211,814

 

 

 

293,963

 

Fixed assets, net

 

457

 

 

 

544

 

Indemnification receivable

 

 

 

 

1,353

 

Securities held-to-maturity

 

237

 

 

 

259

 

Deferred tax assets, net

 

9,508

 

 

 

10,536

 

Investments

 

36,873

 

 

 

35,721

 

Right of use assets—operating leases

 

866

 

 

 

1,449

 

Goodwill

 

86,841

 

 

 

85,856

 

Intangible assets, net

 

604,781

 

 

 

603,567

 

Other noncurrent assets

 

447

 

 

 

571

 

Total assets

$

951,824

 

 

$

1,033,819

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Fund management and administration payable

$

27,655

 

 

$

36,521

 

Compensation and benefits payable

 

27,792

 

 

 

24,121

 

Income taxes payable

 

4,365

 

 

 

1,599

 

Operating lease liabilities

 

889

 

 

 

1,125

 

Convertible notes—current

 

 

 

 

59,197

 

Deferred consideration—gold payments

 

 

 

 

16,796

 

Accounts payable and other liabilities

 

14,660

 

 

 

9,075

 

Total current liabilities

 

75,361

 

 

 

148,434

 

Convertible notes—long term

 

274,514

 

 

 

262,019

 

Deferred consideration—gold payments

 

 

 

 

183,494

 

Operating lease liabilities

 

 

 

 

339

 

Other noncurrent liabilities

 

 

 

 

1,353

 

Total liabilities

 

349,875

 

 

 

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: 150,335 and 146,517 at September 30, 2023 and December 31, 2022, respectively

 

1,503

 

 

 

1,465

 

Additional paid-in capital

 

387,507

 

 

 

291,847

 

Accumulated other comprehensive loss

 

(1,637

)

 

 

(1,420

)

Retained earnings

 

82,007

 

 

 

13,719

 

Total stockholders’ equity

 

469,380

 

 

 

305,611

 

Total liabilities and stockholders’ equity

$

951,824

 

 

$

1,033,819

 

Contacts

Investor Relations
Jeremy Campbell

+1.646.522.2602

Jeremy.campbell@wisdomtree.com

Corporate Communications
Jessica Zaloom

+1.917.267.3735

jzaloom@wisdomtree.com

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