NYSE$DBRG

DigitalBridge Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

DigitalBridge reported strong Q4 2023 results, marked by growth in investment management fees and fee-related earnings, and the successful deconsolidation of its Operating segment.

DigitalBridge reported Q4 2023 total revenues of $350 million and GAAP net income attributable to common stockholders of $101 million, or $0.61 per share. Distributable Earnings were $17.9 million, or $0.10 per share. The company highlighted a strong finish to 2023 with the best quarter in investment management fees and fee-related earnings.

  • Fee Revenue in the investment management segment was $72.2 million, up 59% year-over-year.
  • Fee Related Earnings in the investment management segment (IM FRE) were $39.8 million, up 64% year-over-year.
  • Assets Under Management (AUM) of $80.1 billion, up 52% year-over-year.
  • Fee Earning Equity Under Management (FEEUM) of $32.8 billion, up 47% year-over-year.

Headline financials

Total Revenue

$350M

Previous: $301M+16.4%
EPS (adj)

$0.58

Previous: -$0.12+583.3%
Net Income

$101M

Previous: -$37.2M+371.2%
Operating Income

$108M

Previous: -$5.86M+1947.0%
Gross Profit

-$331M

Previous: $301M-209.9%
Stock-Based Comp

$10.1M

Previous: $7.59M+32.4%

Revenue & EPS history

DigitalBridge · Revenue · Quarterly

$350M

Q4 2023+16.4%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

DigitalBridge · $197M total across 3 segments · Q3 2023

  • Carried interest allocation
    $169M
  • Principal investment income
    $17.9M
  • Other income
    $10.6M+362.3%

Forward guidance

DigitalBridge provided indicative 2024 guidance for selected key metrics to facilitate investor analysis, focusing principally on growth and profitability over a 3-5 year cycle. Fee-Related Earnings incorporates Corporate Overhead, consistent with their simplified Income Statement.

Tailwinds

  • Ending FEEUM: $36-$38B
  • Fee Revenue: $335-360M (+32% midpoint)
  • Fee Related Earnings (FRE): $150-165M (+51% midpoint)
  • New Capital Formation of $7B offset by expected realizations from DBP I / DBP II
  • Growth driven by new FEEUM activation (organic capital formation, no M&A)

Headwinds

  • Guidance figures do not assume any contributions from incentive fees, carried interest and principal investment income
  • There can be no assurance that actual amounts will not be materially higher or lower than these expectations.
  • Readers should refer to the discussion in the Cautionary Statement Regarding Forward-Looking Statements section at the beginning of this presentation.
  • The Company undertakes no obligation to provide updated projections on a quarterly or other basis.
  • FRE includes corporate overhead; 2024E includes $40M of Catch-Up Fees

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 2023

Historical avgQ4 2023

-1.8%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-0.8%

Avg return

30 days after

44%

17 / 39 earnings

Positive

+16.7%

Q2 2020

Best reaction

-22.9%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-0.3%+0.6%
Q4 2025+0.4%+0.7%+0.2%
Q3 2025-2.5%-7.0%-23.5%
Q1 2025+4.5%+4.6%+31.7%
Q4 2024+14.0%+6.4%-14.1%
Q3 2024-20.4%-18.7%-16.5%
Q2 2024+4.4%-2.3%-7.6%
Q1 2024-17.2%-13.8%-19.7%
Q4 2023-9.2%-5.3%-3.7%
Q3 2023+2.3%+0.9%+10.5%
Q2 2023+5.1%+6.7%+9.0%
Q1 2023-9.0%-4.0%+9.7%
Q4 2022-10.1%-9.2%-21.2%
Q3 2022-4.6%-8.0%+9.7%
Q2 2022-0.5%-1.8%-18.2%
Q1 2022-7.1%-22.6%-19.9%
Q4 2021+4.8%+6.6%+4.9%
Q3 2021+6.8%+11.9%+13.6%
Q2 2021+2.3%+4.5%+0.4%
Q1 2021-0.3%-7.3%+4.3%
Q4 2020-3.1%-2.6%+2.0%
Q3 2020+0.3%+6.1%+27.8%
Q2 2020+16.7%+29.3%+38.4%
Q1 2020-14.8%-26.7%+41.0%
Q4 2019+6.7%+2.2%-45.0%
Q3 2019-7.8%-11.5%-12.2%
Q2 2019-13.0%-17.0%-5.1%
Q1 2019-0.6%+2.0%+3.0%
Q4 2018-4.3%-4.3%-4.3%
Q3 2018+5.7%+5.4%+5.0%
Q2 2018+0.0%+0.0%+0.0%
Q1 2018-5.0%-5.5%-8.3%
Q4 2017-22.9%-24.7%-27.8%
Q3 2017+2.9%+0.9%-1.4%
Q2 2017-0.1%-5.7%-9.6%
Q1 2017+0.5%+0.5%+8.0%
Q4 2016+1.7%-4.3%-10.0%
Q3 2016+2.0%-0.9%+8.2%
Q2 2016-0.2%-1.1%+9.0%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014

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