NASDAQ$WT

WisdomTree Investments Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

WisdomTree Investments Inc. reported a net loss and a decrease in operating revenues due to fewer revenue days, but was partially offset by higher average AUM.

WisdomTree Investments Inc. reported a net loss of $10.3 million, or ($0.08) per share, and an adjusted net income of $14.1 million, or $0.09 per share. Operating revenues decreased by 1.0% to $78.4 million, primarily due to two fewer revenue days in the quarter, but this was partly offset by higher average AUM. The company's AUM increased by 2.5% to $79.4 billion, driven by net inflows and market appreciation.

  • Ending AUM increased by 2.5% to $79.4 billion due to net inflows and market appreciation.
  • Net inflows were $1.3 billion, driven by fixed income and U.S. equity products.
  • Operating revenues decreased by 1.0% to $78.4 million due to two fewer revenue days.
  • Diluted loss per share was ($0.08), while adjusted earnings per share was $0.09.

Headline financials

Total Revenue

$78.4M

Previous: $72.8M+7.6%
EPS (adj)

$0.09

Previous: $0.08+12.5%
Ending AUM

$79.4B

Previous: $69.5B+14.2%
Average Advisory Fee

0.4%

No prior period
Operating Income Margin

22.6%

Previous: 25.5%-11.4%
Gross Margin

80.2%

Previous: 78.7%+1.9%
Capital Expenditures

-$54K

Previous: -$103K+47.6%
Free Cash Flow

-$10.3M

Previous: $15M-168.6%
Net Income

-$10.3M

Previous: $15.1M-167.7%
Operating Income

$17.7M

Previous: $18.6M-4.9%
Gross Profit

$78.4M

Previous: $72.8M+7.6%
Cash & Equivalents

$110M

Previous: $62.3M+77.2%
Total Assets

$1B

Previous: $885M+13.1%
Stock-Based Comp

$2.94M

Previous: $3.14M-6.6%

Revenue & EPS history

WisdomTree Investments Inc · Revenue · Quarterly

$78.4M

Q1 2022+7.6%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

WisdomTree Investments Inc · $70.6M total across 1 segment · Q3 2022

  • Advisory Fees
    $70.6M-7.6%

Forward guidance

Management commentary suggests a positive outlook, focusing on continued growth and expansion into new areas like digital assets. However, the cautionary statement highlights various risks and uncertainties that could impact future results.

Tailwinds

  • Sixth consecutive quarter of organic growth.
  • Strong earnings results.
  • Record assets under management.
  • Managed model portfolios have grown into a WisdomTree success story.
  • Being a first mover in digital assets.

Headwinds

  • Adverse market developments arising from the COVID-19 pandemic.
  • Declining prices of securities, gold and other precious metals and other commodities.
  • Fluctuations in the amount and mix of our AUM.
  • Competitive pressures could reduce revenues and profit margins.
  • Actions of activist stockholders may be disruptive.

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 2022

Historical avgQ1 2022

-0.9%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+0.9%

Avg return

30 days after

44%

17 / 39 earnings

Positive

+9.0%

Q3 2018

Best reaction

-12.3%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%+12.1%+11.5%
Q4 2025-2.1%-1.9%+3.4%
Q3 2025-0.8%-2.2%-10.4%
Q1 2025+4.6%+6.3%+8.1%
Q4 2024-0.3%-1.0%-7.1%
Q3 2024+0.9%-0.7%+15.6%
Q2 2024+6.4%+9.3%-6.3%
Q1 2024-1.4%+2.1%+12.8%
Q4 2023+0.7%+1.9%+18.9%
Q3 2023-5.5%-4.6%+0.5%
Q2 2023-3.3%-5.3%+0.3%
Q1 2023+1.3%+2.1%+11.0%
Q4 2022-1.4%-0.5%+0.8%
Q3 2022+0.9%-1.1%-2.4%
Q2 2022-1.7%+3.2%-4.9%
Q1 2022-4.4%-3.8%-0.7%
Q4 2021-1.8%-1.6%+1.1%
Q3 2021+4.1%+9.3%+1.5%
Q2 2021-0.6%+3.2%+2.1%
Q1 2021+1.0%+4.2%-0.3%
Q4 2020-2.6%+0.5%-3.3%
Q3 2020+1.4%+5.0%+21.7%
Q2 2020+1.4%+5.4%+9.0%
Q1 2020-5.9%-10.2%-7.7%
Q4 2019+1.2%+7.2%-2.4%
Q3 2019+8.2%+6.4%+0.8%
Q2 2019+0.2%-1.7%-21.2%
Q1 2019-2.6%-8.3%-19.8%
Q4 2018-10.1%-7.8%+19.3%
Q3 2018+9.0%+12.4%+7.2%
Q2 2018+1.3%-12.9%-13.1%
Q1 2018+5.4%+10.5%+14.0%
Q4 2017-7.4%-11.0%-16.5%
Q3 2017+2.5%+1.2%-1.1%
Q2 2017-2.7%-2.3%-11.7%
Q1 2017-0.2%-1.0%+13.0%
Q4 2016-12.3%-14.7%-9.7%
Q3 2016-7.5%-14.8%+12.8%
Q2 2016-10.7%-12.5%-11.0%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q1 2012
Q4 2011
Q4 2009
Q2 2011
Q3 2010
Q4 2010
Q2 2010
Q3 2011

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