NASDAQ$VCTR

Victory Capital Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Victory Capital reported strong financial results for the fourth quarter and full year ended December 31, 2023, with significant progress in strategic growth initiatives and expanded profit margins.

Victory Capital reported a strong fourth quarter and full year 2023, with total AUM increasing to $166.6 billion. The company saw improved long-term gross and net flows, excellent investment performance, and returned $243 million to shareholders in 2023. Revenue for the quarter increased by 2.1% year-over-year, and GAAP net income rose by 5.6%.

  • Total Assets Under Management (AUM) reached $166.6 billion at the end of Q4 2023.
  • Long-term gross flows improved to $6.6 billion, and net flows were ($1.1) billion in the quarter, marking the best levels in over a year.
  • The company's AUM outperforming benchmarks for 3-, 5-, and 10-year periods were 62%, 84%, and 79% respectively.
  • Victory Capital returned $243 million to shareholders in 2023 through share repurchases and cash dividends, a 21% increase from the previous year.

Headline financials

Total Revenue

$206M

Previous: $206M+0.0%
EPS (adj)

$1.15

Previous: $1.15+0.0%
Ending AUM

$172B

Previous: $153B+12.4%
GAAP Operating Margin

48.1%

Previous: 39.5%+21.8%
Adjusted EBITDA Margin

54.0%

Previous: 49.7%+8.7%
Long-term Gross Flows

$6.62B

Previous: $6.5B+1.7%
Long-term Net Flows

-$1.73B

Previous: -$4.41B+60.7%
Money Market / Short-term Gross Flows

$178M

Previous: $179M-0.6%
Money Market / Short-term Net Flows

-$140M

Previous: -$62M-125.8%
Total Gross Flows

$6.79B

Previous: $6.68B+1.7%
Total Net Flows

-$1.87B

Previous: -$4.47B+58.1%
AUM Revenue Realization (in bps)

52.5%

Previous: 51.7%+1.5%
Adjusted EBITDA

$126M

Previous: $100M+25.4%
Adjusted Net Income with Tax Benefit

$95.1M

Previous: $74.5M+27.6%
Cash Flow from Operations

$91.8M

No prior period
Capital Expenditures

-$155K

Previous: $796K-119.5%
Net Income

$55.2M

Previous: $55.2M+0.0%
Operating Income

$86.3M

Previous: $86.3M+0.0%

Revenue & EPS history

Victory Capital · Revenue · Quarterly

$206M

Q4 2024+0%vs Q4 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

The company is optimistic about executing on a transaction aligned with its strategic growth objectives in the new year and continues to prioritize client service.

Tailwinds

  • Optimistic about executing on a transaction aligned with strategic growth objectives.
  • Continued focus on serving clients as a top priority.
  • Significant progress made in strategic growth initiatives during 2023.
  • Effectiveness and resiliency of the unique operating platform validated.
  • Investments made in new products, enhanced investment capabilities, and expanded technology resources.

Headwinds

  • No specific negative forward guidance was provided in the report.
  • The report does not contain explicit negative forward-looking statements regarding future financial performance.
  • Potential risks include reductions in AUM due to market conditions or client withdrawals.
  • Dependence on third parties for marketing and operations could pose risks.
  • Geopolitical uncertainty, including conflicts in Ukraine and Israel, could affect business and financial results.

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 Q4 2024

Historical avgQ4 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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