WisdomTree Announces Fourth Quarter 2023 Results

Surpasses $100 Billion in Total AUM

520bps of Operating Margin Expansion vs. the Prior Year

Diluted Earnings Per Share of $0.16 ($0.11, as Adjusted)

13% Annualized Organic Growth Rate Across All Products

NEW YORK–(BUSINESS WIRE)–WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the fourth quarter of 2023.


$19.1 million net income ($18.6(1) million net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.

$100.1 billion of ending AUM, an increase of 6.8% arising primarily from market appreciation.

$0.3 billion of net outflows, primarily driven by outflows from our fixed income and commodity products, partly offset by inflows into our U.S. equity and emerging markets products.

0.36% average advisory fee, unchanged from the prior quarter.

$90.8 million of operating revenues, essentially unchanged from the prior quarter.

79.7% gross margin(1), a 0.4 point decrease from the prior quarter due to higher fund costs.

28.7% operating income margin, an 0.8 point decrease compared to our operating margin of 29.5% in the prior quarter primarily due to higher expenses.

Repurchase of Series C non-voting preferred shares convertible into 13.1 million shares of common stock from Gold Bullion Holdings (Jersey) Limited (“GBH”), a subsidiary of the World Gold Council, for aggregate cash consideration of approximately $84.4 million, with $40.0 million paid on the closing date and the remainder of the purchase price payable in equal annual installments on the first, second and third anniversaries of the closing date, with no requirement to pay interest. The repurchase price per share equated to $6.02 per share when taking into consideration the interest-free financing element of the transaction.

$0.03 quarterly dividend declared, payable on February 28, 2024 to stockholders of record as of the close of business on February 14, 2024.

Update from Jarrett Lilien, WisdomTree COO and President

In 2023, we generated over $10 billion of net inflows and extended our positive inflow streak to three consecutive years. This is the direct result of consistent hard work and our success in deepening relationships with advisors – in 2023 we grew our client base by 20% and also saw a 20% increase in the number of clients holding multiple WisdomTree products. Our strategy to expand our client base while deepening wallet share penetration, coupled with the success of our Portfolio Solutions initiative, is compounding growth and proving to be a formula for continued momentum in our organic growth for 2024 and years to come.”

Update from Jonathan Steinberg, WisdomTree CEO

WisdomTree’s strong execution was on display once again in 2023, as demonstrated by our industry-leading organic growth. Our proactive management actions coupled with continued scale benefits drove 540 basis points of adjusted operating margin expansion year-over-year.

 

I’m thrilled that WisdomTree achieved $100 billion of global assets under management for the first time in company history, and I’m confident that it will take significantly less time to gather the next $100 billion in the years ahead – this next phase for WisdomTree will be driven by continued organic growth from adding new clients, the launch of new products, deepening wallet share with models, and our continued leadership in tokenization and blockchain-enabled finance.”

 

OPERATING AND FINANCIAL HIGHLIGHTS

 

Three Months Ended

 

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

Mar. 31,

2023

Dec. 31,

2022

Consolidated Operating Highlights ($ in billions):

 

 

 

 

 

AUM—end of period

$

100.1

 

$

93.7

 

$

93.7

 

$

90.7

 

$

82.0

 

Net (outflows)/inflows

$

(0.3

)

$

2.0

 

$

2.3

 

$

6.3

 

$

5.3

 

Average AUM

$

96.6

 

$

95.7

 

$

91.6

 

$

87.5

 

$

77.6

 

Average advisory fee

 

0.36

%

 

0.36

%

 

0.36

%

 

0.36

%

 

0.36

%

 

 

 

 

 

 

Consolidated Financial Highlights ($ in millions, except per
share amounts):

 

 

 

 

 

Operating revenues

$

90.8

 

$

90.4

 

$

85.7

 

$

82.0

 

$

73.3

 

Net income/(loss)

$

19.1

 

$

13.0

 

$

54.3

 

$

16.2

 

$

(28.3

)

Diluted earnings/(loss) per share

$

0.16

 

$

0.07

 

$

0.32

 

$

0.10

 

$

(0.20

)

Operating income margin

 

28.7

%

 

29.5

%

 

21.2

%

 

20.2

%

 

16.0

%

 

 

 

 

 

 

As Adjusted (Non-GAAP(1)):

 

 

 

 

 

Gross margin

 

79.7

%

 

80.1

%

 

79.3

%

 

79.1

%

 

76.9

%

Net income, as adjusted

$

18.6

 

$

18.0

 

$

14.9

 

$

11.2

 

$

7.0

 

Diluted earnings per share, as adjusted

$

0.11

 

$

0.10

 

$

0.09

 

$

0.07

 

$

0.04

 

Operating income margin, as adjusted

 

28.7

%

 

29.5

%

 

26.9

%

 

21.4

%

 

16.0

%

 

 

 

 

 

 

RECENT BUSINESS DEVELOPMENTS

Company News

  • In January 2024, our Board of Directors appointed (i) Smita Conjeevaram to replace Win Neuger as Chair of the Compensation Committee and (ii) Shamla Naidoo to replace Smita Conjeevaram as Chair of the Nominating and Governance Committee of the Board of Directors. Mr. Neuger will continue to serve as Chair of the Board and a member of the Compensation Committee and Ms. Conjeevaram will continue to serve as a member of the Nominating and Governance Committee.
  • In November 2023, we completed the repurchase of our Series C non-voting preferred shares convertible into 13.1 million shares of WisdomTree common stock from a subsidiary of the World Gold Council.
  • In December 2023, WisdomTree was named as a 2023 “Best Places to Work in Money Management” by Pensions & Investments for the fourth consecutive year; and we surpassed $100.0 billion in total global assets under management.

Product News

  • In November 2023, we launched the WisdomTree UK Quality Dividend Growth UCITS ETF (UGRW) on the London Stock Exchange.
  • In December 2023, we launched the WisdomTree Bianco Total Return Fund (WTBN) on the NASDAQ; we launched the WisdomTree Megatrends UCITS ETF (WMGT) on the London Stock Exchange and Börse Xetra; our UCITS ETF platform surpassed $5.0 billion in assets under management; and we launched three blockchain-enabled funds available on WisdomTree Prime™, each leveraging research insights from Professor Jeremy Siegel, Senior Economist to WisdomTree.
  • In January 2024, in the U.S. the WisdomTree Bitcoin Fund (BTCW) launched on the Cboe BZX Exchange and in February 2024 the management fee of BTCW was reduced by 5 basis points, lowering the total expense ratio from 0.30% to 0.25%. For a six-month period that commenced on January 11, 2024, the entire fee is being waived for the first $1.0 billion of BTCW’s assets.
  • In January 2024, we also launched the WisdomTree U.S. MidCap Quality Growth Fund (MGRW) and the WisdomTree U.S. SmallCap Quality Growth Fund (SGRW); and we listed the WisdomTree Megatrends UCITS ETF (WMGT) on the Borsa Italiana. In addition, in Europe we reduced fees for the WisdomTree European Physical Bitcoin ETP (BTCW) from 0.95% to 0.35%; fee reductions apply to our other ETPs in WisdomTree’s European Crypto ETP range as well.

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

Years Ended

 

 

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

Mar. 31,

2023

Dec. 31,

2022

Dec. 31,

2023

 

Dec. 31,

2022

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

Advisory fees

$

86,988

 

$

86,598

 

$

82,004

 

$

77,637

 

$

70,913

 

$

333,227

 

 

$

293,632

 

 

Other income

 

3,856

 

 

3,825

 

 

3,720

 

 

4,407

 

 

2,397

 

 

15,808

 

 

 

7,713

 

 

Total revenues

 

90,844

 

 

90,423

 

 

85,724

 

 

82,044

 

 

73,310

 

 

349,035

 

 

 

301,345

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

27,860

 

 

27,955

 

 

26,319

 

 

27,398

 

 

24,831

 

 

109,532

 

 

 

97,897

 

 

Fund management and administration

 

18,445

 

 

18,023

 

 

17,727

 

 

17,153

 

 

16,906

 

 

71,348

 

 

 

64,761

 

 

Marketing and advertising

 

4,951

 

 

3,833

 

 

4,465

 

 

4,007

 

 

4,240

 

 

17,256

 

 

 

15,302

 

 

Sales and business development

 

3,881

 

 

3,383

 

 

3,326

 

 

2,994

 

 

3,407

 

 

13,584

 

 

 

11,871

 

 

Contractual gold payments

 

 

 

 

 

1,583

 

 

4,486

 

 

4,107

 

 

6,069

 

 

 

17,108

 

 

Professional fees

 

3,201

 

 

3,719

 

 

8,334

 

 

3,715

 

 

2,666

 

 

18,969

 

 

 

13,800

 

 

Occupancy, communications and equipment

 

1,208

 

 

1,203

 

 

1,172

 

 

1,101

 

 

1,110

 

 

4,684

 

 

 

3,898

 

 

Depreciation and amortization

 

335

 

 

307

 

 

121

 

 

109

 

 

104

 

 

872

 

 

 

262

 

 

Third-party distribution fees

 

2,549

 

 

2,694

 

 

1,881

 

 

2,253

 

 

1,793

 

 

9,377

 

 

 

7,656

 

 

Other

 

2,379

 

 

2,601

 

 

2,615

 

 

2,257

 

 

2,427

 

 

9,852

 

 

 

8,705

 

 

Total operating expenses

 

64,809

 

 

63,718

 

 

67,543

 

 

65,473

 

 

61,591

 

 

261,543

 

 

 

241,260

 

 

Operating income

 

26,035

 

 

26,705

 

 

18,181

 

 

16,571

 

 

11,719

 

 

87,492

 

 

 

60,085

 

 

Other Income/(Expenses):

 

 

 

 

 

 

 

 

 

Interest expense

 

(3,758

)

 

(3,461

)

 

(4,021

)

 

(4,002

)

 

(3,736

)

 

(15,242

)

 

 

(14,935

)

 

Gain/(loss) on revaluation/termination of

deferred consideration—gold payments

 

 

 

 

 

41,361

 

 

20,592

 

 

(35,423

)

 

61,953

 

 

 

27,765

 

 

Interest income

 

1,225

 

 

791

 

 

1,000

 

 

1,083

 

 

945

 

 

4,099

 

 

 

3,320

 

 

Impairments

 

(339

)

 

(2,703

)

 

 

 

(4,900

)

 

 

 

(7,942

)

 

 

 

 

Loss on extinguishment of convertible notes

 

 

 

 

 

 

 

(9,721

)

 

 

 

(9,721

)

 

 

 

 

Other gains and losses, net

 

1,602

 

 

(2,512

)

 

1,286

 

 

(2,007

)

 

(1,815

)

 

(1,631

)

 

 

(36,285

)

 

Income/(loss) before income taxes

 

24,765

 

 

18,820

 

 

57,807

 

 

17,616

 

 

(28,310

)

 

119,008

 

 

 

39,950

 

 

Income tax expense/(benefit)

 

5,688

 

 

5,836

 

 

3,555

 

 

1,383

 

 

(21

)

 

16,462

 

 

 

(10,734

)

 

Net income/(loss)

$

19,077

 

$

12,984

 

$

54,252

 

$

16,233

 

$

(28,289

)

$

102,546

 

 

$

50,684

 

 

Earnings/(loss) per share—basic

$

0.16(2

)

$

0.07(2

)

$

0.32(2

)

$

0.10(2

)

$

(0.20

)

$

0.66(2

)

 

$

0.31(2

)

 

Earnings/(loss) per share—diluted

$

0.16(2

)

$

0.07

 

$

0.32

 

$

0.10

 

$

(0.20

)

$

0.64(2

)

 

$

0.31(2

)

 

Weighted average common shares—basic

 

145,310

 

 

145,284

 

 

144,351

 

 

143,862

 

 

143,126

 

 

144,707

 

 

 

143,020

 

 

Weighted average common shares—diluted

 

171,703

 

 

177,140

 

 

170,672

 

 

159,887

 

 

143,126

 

 

170,413

 

 

 

158,914

 

 

 

 

 

 

 

 

 

 

As Adjusted (Non-GAAP(1))

 

 

 

 

 

 

 

Total operating expenses

$

64,809

 

$

63,718

 

$

62,630

 

$

64,506

 

$

61,591

 

 

 

 

 

Operating income

$

26,035

 

$

26,705

 

$

23,094

 

$

17,538

 

$

11,719

 

 

 

 

 

Income before income taxes

$

23,908

 

$

23,902

 

$

19,752

 

$

14,485

 

$

8,615

 

 

 

 

 

Income tax expense

$

5,342

 

$

5,854

 

$

4,833

 

$

3,287

 

$

1,588

 

 

 

 

 

Net income

$

18,566

 

$

18,048

 

$

14,919

 

$

11,198

 

$

7,027

 

 

 

 

 

Earnings per share—diluted

$

0.11

 

$

0.10

 

$

0.09

 

$

0.07

 

$

0.04

 

 

 

 

 

Weighted average common shares—diluted

 

171,703

 

 

177,140

 

 

170,672

 

 

159,887

 

 

159,478

 

 

 

 

 

QUARTERLY HIGHLIGHTS

Operating Revenues

  • Operating revenues were essentially unchanged from the third quarter of 2023 and increased 23.9% from the fourth quarter of 2022 primarily due to higher average AUM.
  • Our average advisory fee was 0.36% during the fourth quarter of 2023, the third quarter of 2023 and the fourth quarter of 2022, respectively.

Operating Expenses

  • Operating expenses increased 1.7% from the third quarter of 2023 primarily due to higher marketing expenses, sales and business development expenses and fund management and administration costs. These increases were partly offset by lower professional fees.
  • Operating expenses increased 5.2% from the fourth quarter of 2022 primarily due to higher stock-based compensation and headcount, fund management and administration costs, third party distribution expenses and marketing expenses. These increases were partly offset by the termination of our deferred consideration—gold payments obligation on May 10, 2023.

Other Income/(Expenses)

  • Interest expense increased 8.6% from the third quarter of 2023, primarily due to the recognition of imputed interest on our obligation payable to GBH. Interest expense was essentially unchanged from the fourth quarter of 2022, as the increase related to imputed interest on our obligation payable to GBH was offset by a lower level of debt outstanding.
  • Interest income increased 54.9% from the third quarter of 2023 and 29.6% from the fourth quarter of 2022 due to a higher level of interest-earning assets.
  • During the fourth quarter of 2023, we recognized a non-cash impairment charge of $0.3 million on our investment in Securrency, Inc., as we marked our investment to net realizable value in connection with the closing of the sale of Securrency, Inc. to an unrelated third party.
  • Other gains and losses, net was a gain of $1.6 million for the fourth quarter of 2023. This quarter includes gains of $0.5 million and $1.0 million on our financial instruments and our investments, respectively. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold exchange-traded products (“ETPs”), foreign exchange fluctuations and other miscellaneous items.

Income Taxes

  • Our effective income tax rate for the fourth quarter of 2023 was 23.0%, resulting in income tax expense of $5.7 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible executive compensation and state and local taxes, partly offset by a lower tax rate on foreign earnings.
  • Our adjusted effective income tax rate for the fourth quarter was 22.3%(1).

ANNUAL HIGHLIGHTS

  • Operating revenues increased 15.8% as compared to 2022 due to higher average AUM and higher other income from large flows from some of our European products, partly offset by a lower average advisory fee.
  • Operating expenses increased 8.4% as compared to 2022 primarily due to higher stock-based compensation and headcount, fund management and administration costs, professional fees, marketing expenses, third-party distribution fees, sales and business development expenses and other expenses. These increases were partly offset by the termination of our deferred consideration—gold payments obligation on May 10, 2023.
  • Significant items reported in other income/(expense) in 2023 include: an increase in interest income of 23.5% due to a higher level of interest-earning assets, a non-cash gain on revaluation/termination of deferred consideration of $62.0 million during the first and second quarters; loss on extinguishment of convertible notes of $9.7 million arising from the repurchase of $115.0 million in aggregate principal amount of our 4.25% Convertible Senior Notes (the “2020 Notes”) in the first quarter; non-cash impairment charges totaling $7.9 million, primarily on our investments in Securrency, Inc.; a non-cash charge of $1.4 million arising from the release of tax-related indemnification assets upon the expiration of the statute of limitations (an equal and offsetting benefit was recognized in income tax expense); and losses on our financial instruments owned and investments of $0.7 million. Gains and losses also generally arise from the sale of gold earned on management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
  • Our effective income tax rate for 2023 was 13.8%, resulting in income tax expense of $16.5 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to a non-taxable gain on revaluation/termination of deferred consideration, a reduction in unrecognized tax benefits associated with the release of the tax-related indemnification asset described above and a lower tax rate on foreign earnings. These items were partly offset by a non-deductible loss on extinguishment of the 2020 Notes during the first quarter of 2023, an increase in the deferred tax asset valuation allowance on losses recognized on our investments and non-deductible executive compensation.

CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS

WisdomTree will discuss its results and operational highlights during a live webcast on Friday, February 2, 2024 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=CoAvcnGg.

Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers. To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time. All earnings materials and the webcast can be accessed through WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will also be available shortly after the call.

About WisdomTree

WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain-enabled technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.*

* The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc. (NMLS ID: 2372500) in select U.S. jurisdictions and may be limited where prohibited by law. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $100.6 billion in assets under management globally.

For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.

Please visit us on X, formerly known as Twitter, at @WisdomTreeNews.

WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:

NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY

The products and services available through the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.

  1. See “Non-GAAP Financial Measurements.”
  2. Earnings/(loss) per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months and year ended December 31, 2023 includes a gain of $7,966 recognized upon the repurchase of our Series C non-voting preferred shares convertible into 13.1 million shares of common stock from GBH, which is excluded from net income, but required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This gain is excluded from our EPS when computed on a non-GAAP basis.

WISDOMTREE, INC. AND SUBSIDIARIES

KEY OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months Ended

 

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

Mar. 31,

2023

Dec. 31,

2022

GLOBAL ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

93,735

 

$

93,666

 

$

90,740

 

$

81,993

 

$

70,878

 

(Outflows)/inflows

 

(255

)

 

1,983

 

 

2,327

 

 

6,341

 

 

5,264

 

Market appreciation/(depreciation)

 

6,644

 

 

(1,914

)

 

599

 

 

2,406

 

 

5,851

 

End of period assets

$

100,124

 

$

93,735

 

$

93,666

 

$

90,740

 

$

81,993

 

Average assets during the period

$

96,557

 

$

95,743

 

$

91,578

 

$

87,508

 

$

77,649

 

Average advisory fee during the period

 

0.36

%

 

0.36

%

 

0.36

%

 

0.36

%

 

0.36

%

Revenue days

 

92

 

 

92

 

 

91

 

 

90

 

 

92

 

Number of ETFs—end of the period

 

337

 

 

344

 

 

344

 

 

341

 

 

339

 

 

 

 

 

 

 

U.S. LISTED ETFs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

68,018

 

$

65,903

 

$

61,283

 

$

55,973

 

$

48,043

 

(Outflows)/inflows

 

(67

)

 

3,601

 

 

3,249

 

 

4,012

 

 

4,232

 

Market appreciation/(depreciation)

 

4,535

 

 

(1,486

)

 

1,371

 

 

1,298

 

 

3,698

 

End of period assets

$

72,486

 

$

68,018

 

$

65,903

 

$

61,283

 

$

55,973

 

Average assets during the period

$

69,717

 

$

68,008

 

$

62,712

 

$

59,430

 

$

53,655

 

Number of ETFs—end of the period

 

76

 

 

80

 

 

80

 

 

80

 

 

79

 

 

 

 

 

 

 

EUROPEAN LISTED ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

25,717

 

$

27,763

 

$

29,457

 

$

26,020

 

$

22,835

 

(Outflows)/inflows

 

(188

)

 

(1,618

)

 

(922

)

 

2,329

 

 

1,032

 

Market appreciation/(depreciation)

 

2,109

 

 

(428

)

 

(772

)

 

1,108

 

 

2,153

 

End of period assets

$

27,638

 

$

25,717

 

$

27,763

 

$

29,457

 

$

26,020

 

Average assets during the period

$

26,840

 

$

27,735

 

$

28,866

 

$

28,078

 

$

23,994

 

Number of ETPs—end of the period

 

261

 

 

264

 

 

264

 

 

261

 

 

260

 

 

 

 

 

 

 

PRODUCT CATEGORIES ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

U.S. Equity

 

 

 

 

 

Beginning of period assets

$

25,644

 

$

26,001

 

$

24,534

 

$

24,112

 

$

20,952

 

Inflows/(outflows)

 

487

 

 

864

 

 

414

 

 

(149

)

 

1,022

 

Market appreciation/(depreciation)

 

3,025

 

 

(1,221

)

 

1,053

 

 

571

 

 

2,138

 

End of period assets

$

29,156

 

$

25,644

 

$

26,001

 

$

24,534

 

$

24,112

 

Average assets during the period

$

26,844

 

$

26,501

 

$

24,732

 

$

24,725

 

$

23,492

 

 

 

 

 

 

 

Commodity & Currency

 

 

 

 

 

Beginning of period assets

$

20,465

 

$

22,384

 

$

24,924

 

$

22,097

 

$

19,561

 

(Outflows)/inflows

 

(449

)

 

(1,815

)

 

(1,513

)

 

2,003

 

 

796

 

Market appreciation/(depreciation)

 

1,320

 

 

(104

)

 

(1,027

)

 

824

 

 

1,740

 

End of period assets

$

21,336

 

$

20,465

 

$

22,384

 

$

24,924

 

$

22,097

 

Average assets during the period

$

21,254

 

$

22,278

 

$

24,033

 

$

23,807

 

$

20,345

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

Beginning of period assets

$

21,797

 

$

20,215

 

$

18,708

 

$

15,273

 

$

11,695

 

(Outflows)/inflows

 

(715

)

 

1,671

 

 

1,471

 

 

3,513

 

 

3,392

 

Market appreciation/(depreciation)

 

115

 

 

(89

)

 

36

 

 

(78

)

 

186

 

End of period assets

$

21,197

 

$

21,797

 

$

20,215

 

$

18,708

 

$

15,273

 

Average assets during the period

$

21,889

 

$

20,965

 

$

19,185

 

$

17,176

 

$

13,962

 

 

 

Three Months Ended

 

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

Mar. 31,

2023

Dec. 31,

2022

International Developed Market Equity

 

 

 

 

 

Beginning of period assets

$

13,902

 

$

13,423

 

$

11,433

 

$

10,195

 

$

9,183

 

Inflows/(outflows)

 

9

 

 

798

 

 

1,593

 

 

450

 

 

40

 

Market appreciation/(depreciation)

 

1,192

 

 

(319

)

 

397

 

 

788

 

 

972

 

End of period assets

$

15,103

 

$

13,902

 

$

13,423

 

$

11,433

 

$

10,195

 

Average assets during the period

$

14,267

 

$

13,873

 

$

12,276

 

$

10,879

 

$

10,000

 

 

 

 

 

 

 

Emerging Market Equity

 

 

 

 

 

Beginning of period assets

$

9,569

 

$

9,191

 

$

8,811

 

$

8,116

 

$

7,495

 

Inflows/(outflows)

 

412

 

 

451

 

 

329

 

 

486

 

 

(53

)

Market appreciation/(depreciation)

 

745

 

 

(73

)

 

51

 

 

209

 

 

674

 

End of period assets

$

10,726

 

$

9,569

 

$

9,191

 

$

8,811

 

$

8,116

 

Average assets during the period

$

9,833

 

$

9,652

 

$

8,998

 

$

8,666

 

$

7,770

 

 

 

 

 

 

 

Leveraged & Inverse

 

 

 

 

 

Beginning of period assets

$

1,781

 

$

1,864

 

$

1,785

 

$

1,754

 

$

1,523

 

(Outflows)/inflows

 

(59

)

 

(1

)

 

12

 

 

43

 

 

59

 

Market appreciation/(depreciation)

 

93

 

 

(82

)

 

67

 

 

(12

)

 

172

 

End of period assets

$

1,815

 

$

1,781

 

$

1,864

 

$

1,785

 

$

1,754

 

Average assets during the period

$

1,803

 

$

1,894

 

$

1,798

 

$

1,757

 

$

1,623

 

 

 

 

 

 

 

Cryptocurrency

 

 

 

 

 

Beginning of period assets

$

243

 

$

248

 

$

239

 

$

136

 

$

163

 

Inflows/(outflows)

 

28

 

 

10

 

 

(1

)

 

13

 

 

(4

)

Market appreciation/(depreciation)

 

143

 

 

(15

)

 

10

 

 

90

 

 

(23

)

End of period assets

$

414

 

$

243

 

$

248

 

$

239

 

$

136

 

Average assets during the period

$

325

 

$

238

 

$

236

 

$

190

 

$

152

 

 

 

 

 

 

 

Alternatives

 

 

 

 

 

Beginning of period assets

$

334

 

$

340

 

$

306

 

$

310

 

$

306

 

Inflows/(outflows)

 

32

 

 

5

 

 

22

 

 

(18

)

 

12

 

Market appreciation/(depreciation)

 

11

 

 

(11

)

 

12

 

 

14

 

 

(8

)

End of period assets

$

377

 

$

334

 

$

340

 

$

306

 

$

310

 

Average assets during the period

$

342

 

$

342

 

$

320

 

$

308

 

$

305

 

 

 

 

 

 

 

Headcount

 

303

 

 

299

 

 

291

 

 

279

 

 

273

 

Note: Previously issued statistics may be restated due to fund closures and trade adjustments 

Source: WisdomTree

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

 

 

Dec. 31,

2023

Dec. 31,

2022

 

(Unaudited)

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

129,305

 

$

132,101

 

Financial instruments owned, at fair value

 

58,722

 

 

126,239

 

Accounts receivable

 

35,473

 

 

30,549

 

Prepaid expenses

 

5,258

 

 

4,684

 

Other current assets

 

1,036

 

 

390

 

Total current assets

 

229,794

 

 

293,963

 

Fixed assets, net

 

427

 

 

544

 

Indemnification receivable

 

 

 

1,353

 

Securities held-to-maturity

 

230

 

 

259

 

Deferred tax assets, net

 

11,057

 

 

10,536

 

Investments

 

9,684

 

 

35,721

 

Right of use assets—operating leases

 

563

 

 

1,449

 

Goodwill

 

86,841

 

 

85,856

 

Intangible assets, net

 

605,082

 

 

603,567

 

Other noncurrent assets

 

459

 

 

571

 

Total assets

$

944,137

 

$

1,033,819

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

LIABILITIES

 

 

Current liabilities:

 

 

Fund management and administration payable

$

30,085

 

$

36,521

 

Compensation and benefits payable

 

38,111

 

 

24,121

 

Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)

 

14,804

 

 

 

Income taxes payable

 

3,866

 

 

1,599

 

Operating lease liabilities

 

578

 

 

1,125

 

Convertible notes—current

 

 

 

59,197

 

Deferred consideration—gold payments

 

 

 

16,796

 

Accounts payable and other liabilities

 

15,772

 

 

9,075

 

Total current liabilities

 

103,216

 

 

148,434

 

Convertible notes—long term

 

274,888

 

 

262,019

 

Payable to GBH

 

24,328

 

 

 

Deferred consideration—gold payments

 

 

 

183,494

 

Operating lease liabilities

 

 

 

339

 

Other noncurrent liabilities

 

 

 

1,353

 

Total liabilities

 

402,432

 

 

595,639

 

Preferred stock:

 

 

Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and

outstanding

 

132,569

 

 

132,569

 

STOCKHOLDERS’ EQUITY

 

Common stock, par value $0.01; 400,000 shares authorized:

 

 

Issued and outstanding: 150,330 and 146,517 at December 31, 2023 and 2022, respectively

 

1,503

 

 

1,465

 

Additional paid-in capital

 

312,440

 

 

291,847

 

Accumulated other comprehensive loss

 

(548

)

 

(1,420

)

Retained earnings

 

95,741

 

 

13,719

 

Total stockholders’ equity

 

409,136

 

 

305,611

 

Total liabilities and stockholders’ equity

$

944,137

 

$

1,033,819

 

Contacts

Investor Relations
Jeremy Campbell

+1.646.522.2602

[email protected]

Corporate Communications
Jessica Zaloom

+1.917.267.3735

[email protected]

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