NASDAQ$WT

WisdomTree Investments Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

WisdomTree Investments Inc experienced record quarter-end AUM and strong net inflows.

WisdomTree Investments Inc. reported a strong first quarter in 2023, marked by record quarter-end AUM of $90.7 billion and net inflows of $6.3 billion, the third-best quarter in company history. Diluted earnings per share stood at $0.10, with adjusted diluted earnings per share at $0.07. The company's operating revenues reached $82.0 million, reflecting an 11.9% increase from the previous quarter. Net income was reported as $16.2 million, or $11.2 million as adjusted.

  • Record quarter-end AUM of $90.7 billion.
  • $6.3 billion in net inflows, marking the third-best quarter in company history.
  • Diluted earnings per share (EPS) of $0.10; adjusted EPS of $0.07.
  • Operating revenues increased by 11.9% from the previous quarter, reaching $82.0 million.

Headline financials

Total Revenue

$78.1M

Previous: $78.4M-0.3%
EPS (adj)

$0.07

Previous: $0.09-22.2%
Average Advisory Fee

0.4%

Previous: 0.4%-10.0%
Operating Income Margin

20.2%

Previous: 22.6%-10.6%
Gross Margin

79.1%

Previous: 80.2%-1.4%
Capital Expenditures

-$26K

Previous: -$54K+51.9%
Free Cash Flow

$16.2M

Previous: -$10.3M+257.1%
Net Income

$16.2M

Previous: -$10.3M+258.2%
Operating Income

$16.6M

Previous: $17.7M-6.3%
Gross Profit

$78.1M

Previous: $78.4M-0.3%
Cash & Equivalents

$119M

Previous: $110M+7.9%
Total Assets

$1.02B

Previous: $1B+1.7%
Stock-Based Comp

$4.54M

Previous: $2.94M+54.5%

Revenue & EPS history

WisdomTree Investments Inc · Revenue · Quarterly

$78.1M

Q1 2023-0.3%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

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

  • Advisory Fees
    $70.6M-7.6%

Forward guidance

WisdomTree's CEO anticipates continued growth driven by fund performance, managed models, and the upcoming launch of WisdomTree Prime™.

Tailwinds

  • Solid fund performance and positioning.
  • Continued growth in managed models.
  • Initial launch of WisdomTree Prime™ in app stores in Q2.
  • Launch of digital funds and tokens.
  • Citi projects blockchain-enabled finance marketplace could be a $5 trillion market by 2030.

Headwinds

  • Declining prices of securities, gold and other precious metals and other commodities and changes in interest rates and general market conditions can adversely affect our business
  • Fluctuations in the amount and mix of our AUM may negatively impact revenues and operating margins
  • Competitive pressures could reduce revenues and profit margins
  • A significant portion of our AUM is held in a limited number of products
  • Actions of activist stockholders against us, which have been costly and may be disruptive and cause uncertainty about the strategic direction of our business.

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 2023

Historical avgQ1 2023

-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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