NASDAQ$VCTR

Victory Capital Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Victory Capital reported strong results in the first quarter of 2024, driven by improved long-term flows and excellent investment performance.

Victory Capital reported strong Q1 2024 results, with revenue increasing by 7.2% year-over-year to $215.9 million. GAAP net income increased by 13.0% to $55.7 million, or $0.84 per diluted share. Adjusted EBITDA increased by 13.3% to $112.4 million. Total client assets reached $175.5 billion and total AUM reached $170.3 billion.

  • Total client assets reached $175.5 billion.
  • Long-term gross flows were $7.0 billion.
  • GAAP operating margin was 39.3%.
  • Adjusted EBITDA margin was 52.1%.

Headline financials

Total Revenue

$215M

Previous: $200M+7.2%
EPS

$0.84

Previous: $1.08-22.2%
Ending AUM

$170B

Previous: $159B+7.4%
GAAP Operating Margin

39.3%

Previous: 37.0%+6.2%
Adjusted EBITDA Margin

52.1%

Previous: 49.3%+5.7%
Capital Expenditures

-$500K

Previous: -$572K+12.6%
Free Cash Flow

$55.2M

Previous: $48.7M+13.3%
Net Income

$55.7M

Previous: $49.3M+13.0%
Operating Income

$84.8M

Previous: $74.6M+13.7%
Gross Profit

$198M

Previous: $186M+6.6%
Cash & Equivalents

$79.9M

Previous: $38.3M+108.5%
Total Assets

$2.51B

Previous: $2.53B-0.9%

Revenue & EPS history

Victory Capital · Revenue · Quarterly

$215M

Q1 2024+7.2%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Victory Capital is working toward a definitive agreement with Amundi by the end of June to combine Amundi US into their Company and establish 15-year global and reciprocal distribution agreements.

Tailwinds

  • Strategic transaction would combine Amundi US into Victory Capital.
  • Establish 15-year global and reciprocal distribution agreements.
  • Agreements would represent a significant enhancement in the globalization of Victory Capital.
  • Projected to grow AUM
  • Projected to grow revenue

Headwinds

  • Memorandum of Understanding is non-binding.
  • There is no certainty that the negotiations will result in definitive agreements.
  • There is no certainty that the currently contemplated terms will not change.
  • Risks that the conditions to closing will be satisfied.
  • Risks associated with expected benefits, or impact on our business, of the proposed transaction, including our ability to achieve any expected synergies.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.6%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+1.3%

Avg return

30 days after

50%

20 / 40 earnings

Positive

+22.4%

Q3 2018

Best reaction

-6.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+4.0%+4.4%
Q4 2025-2.2%+8.3%-1.5%
Q3 2025-0.8%+3.0%+3.2%
Q1 2025-1.6%+7.6%+8.1%
Q4 2024+7.5%+3.4%-10.9%
Q3 2024+2.1%-0.0%+4.3%
Q2 2024+8.2%+9.1%+13.0%
Q1 2024-6.6%-1.3%-4.7%
Q4 2023+4.8%-0.6%+13.1%
Q3 2023+8.9%+5.2%+8.0%
Q2 2023+1.7%+0.1%+4.9%
Q1 2023+0.8%+2.5%+9.2%
Q4 2022-2.8%+4.7%-3.2%
Q3 2022+0.7%+3.0%+4.9%
Q2 2022-0.2%-1.1%-4.4%
Q1 2022-6.4%-10.1%+1.2%
Q4 2021-3.0%-3.5%-11.8%
Q3 2021+11.7%+10.4%-7.9%
Q2 2021+6.5%+7.0%+6.7%
Q1 2021+6.3%+3.6%+7.1%
Q4 2020+2.4%+0.8%+4.7%
Q3 2020+7.2%+7.3%+22.5%
Q2 2020+0.3%+3.7%-1.5%
Q1 2020+0.7%-6.1%+21.5%
Q4 2019-1.8%-2.4%-34.8%
Q3 2019+9.8%+11.3%+26.9%
Q2 2019-1.7%-8.2%-2.2%
Q1 2019+5.8%+16.9%+12.4%
Q4 2018-2.4%+1.6%+17.6%
Q3 2017-0.6%+1.3%-10.2%
Q3 2018+22.4%+39.9%+38.7%
Q2 2018-1.8%-0.5%-5.0%
Q1 2017-1.7%-2.6%+2.4%
Q1 2018-0.6%-4.5%+2.2%
Q2 2017-2.8%-6.6%-14.8%
Q2 2016-2.8%-6.6%-14.8%
Q4 2016-2.8%-6.6%-14.8%
Q3 2016-2.8%-6.6%-14.8%
Q4 2015-2.8%-6.6%-14.8%
Q4 2017+4.2%+3.2%-11.0%
Q1 2016

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