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
Product News
|
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
