{"id":424453,"date":"2021-01-29T07:03:28","date_gmt":"2021-01-29T12:03:28","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=424453"},"modified":"2021-01-29T07:03:28","modified_gmt":"2021-01-29T12:03:28","slug":"wisdomtree-announces-fourth-quarter-2020-results-diluted-loss-per-share-of-0-10-or-earnings-per-share-of-0-06-as-adjusted","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/wisdomtree-announces-fourth-quarter-2020-results-diluted-loss-per-share-of-0-10-or-earnings-per-share-of-0-06-as-adjusted\/","title":{"rendered":"WisdomTree Announces Fourth Quarter 2020 Results \u2013 Diluted Loss Per Share of ($0.10), or Earnings Per Share of $0.06, as adjusted"},"content":{"rendered":"
\n

NEW YORK, Jan. 29, 2021 (GLOBE NEWSWIRE) — WisdomTree Investments, Inc. (NASDAQ: WETF) today reported financial results for the fourth quarter of 2020.<\/p>\n

\n ($13.5) million net loss ($9.2<\/strong>
\n
\n 1<\/strong>
\n <\/sup>
\n million net income, as adjusted)<\/strong>, see \u201cNon-GAAP Financial Measurements\u201d for additional information.<\/p>\n

\n $22.4 million of non-cash charges<\/strong>, associated with the revaluation of deferred consideration \u2013 gold payments.<\/p>\n

\n $67.4 billion of ending AUM<\/strong>, an increase of 11.0% arising from market appreciation and net inflows.<\/p>\n

\n $881 million of net inflows<\/strong>, driven by inflows into our emerging markets equity and U.S. equity products, partly offset by outflows from our fixed income, commodity, international developed market equity and leveraged & inverse products.<\/p>\n

\n 0.41% average global advisory fee<\/strong>, a decrease of 1 basis point due to AUM mix shift.<\/p>\n

\n $67.1 million of operating revenues<\/strong>, an increase of 3.7% primarily due to higher average AUM, partly offset by a lower average global advisory fee.
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
75.6% gross margin<\/strong>1<\/strong><\/sup>, a 0.9 point decrease primarily due to Brexit and fund rebalancing costs.<\/p>\n

\n 19.2% operating income margin<\/strong>, a 3.6 point decrease primarily due to higher operating expenses, partly offset by higher revenues.<\/p>\n

\n $0.03 quarterly dividend<\/strong>
\n declared<\/strong>, payable on February 24, 2021 to stockholders of record as of the close of business on February 10, 2021.<\/p>\n

\n Update from Jonathan Steinberg, WisdomTree CEO<\/strong>\n <\/p>\n\n\n
\n
\u201cOur business has more than navigated the global pandemic, we have emerged stronger. Not only have we adapted to the remote working environment without missing a beat, but we also gleaned new operating efficiencies and competitive strengths that represent real value for shareholders. These strengths include: Our leading European-listed Bitcoin ETP approaching an inflection point; the building of a profitable, fast-growing and complementary UCITS platform; and the achievement of true diversification, powered by a leadership position in gold.<\/p>\n

\u201cWe ended the year with momentum which we are carrying into the new year. Our digital assets initiatives reinforce and expand upon our core business strengths, as WisdomTree is aggressively pursuing and is well-positioned for success in this growing space. In 2020, we set our strategy for these initiatives, and we have been designing workflows and engaging productively with regulators with a goal of launching products later this year.\u201d<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n Update from Jarrett Lilien, WisdomTree President and COO<\/strong>\n <\/p>\n\n\n
\n
\u201cI am very excited about our business. We ended 2020 with strong growth and momentum. That momentum is continuing in 2021, and we are well positioned and have a strong 2021 growth plan. To date, we have seen global organic growth of $630 million and now have global assets under management at a new record, just shy of $70 billion.\u00a0<\/p>\n

\u201cFor 2021, with our dividend strategies, our leadership position in gold and commodities, our best-in-market crypto ETP offering, our cloud computing, AI and battery products, recent global cybersecurity launch, as well as our leading ESG offerings, we could not be better positioned.<\/p>\n

\u201cLastly, remote working has worked for us. We have transformed our operating model and we are working as a global team better than ever before. With a fresh perspective we have found new efficiencies adding scalability to our model and giving us scope to make further investments in future growth. Our vision is to continue with a remote-first approach post pandemic, ensuring that these efficiencies are permanent and carried into future years.\u201d<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n OPERATING AND FINANCIAL HIGHLIGHTS<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \u00a0<\/strong>\n <\/td>\n\n Three Months Ended<\/strong>
\n \n <\/td>\n<\/tr>\n
\n \u00a0<\/strong>\n <\/td>\n\n Dec. 31,<\/strong>
\n
\n
\n 2020<\/u>
\n <\/strong>\n <\/td>\n		\n Sept. 30,<\/strong>
\n
\n
\n 2020<\/u>
\n <\/strong>\n <\/td>\n		\n June\u00a030,<\/strong>
\n
\n
\n 2020<\/u>
\n <\/strong>\n <\/td>\n		\n Mar. 31,<\/strong>
\n
\n
\n 2020<\/u>
\n <\/strong>\n <\/td>\n		\n Dec. 31,<\/strong>
\n
\n
\n 2019<\/u>
\n <\/strong>\n <\/td>\n<\/tr>\n
\n
\n Consolidated Operating Highlights ($ in billions):<\/u>
\n <\/strong>\n <\/td>\n		\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n<\/tr>\n
AUM<\/td>\n$<\/td>\n67.4<\/td>\n\u00a0<\/td>\n$<\/td>\n60.7<\/td>\n\u00a0<\/td>\n$<\/td>\n57.7<\/td>\n\u00a0<\/td>\n$<\/td>\n50.3<\/td>\n\u00a0<\/td>\n$<\/td>\n63.6<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net inflows\/(outflows)<\/td>\n$<\/td>\n0.9<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.5<\/td>\n)<\/td>\n$<\/td>\n0.1<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.5<\/td>\n)<\/td>\n$<\/td>\n0.4<\/td>\n\u00a0<\/td>\n<\/tr>\n
Average AUM<\/td>\n$<\/td>\n64.1<\/td>\n\u00a0<\/td>\n$<\/td>\n61.2<\/td>\n\u00a0<\/td>\n$<\/td>\n55.7<\/td>\n\u00a0<\/td>\n$<\/td>\n60.2<\/td>\n\u00a0<\/td>\n$<\/td>\n61.9<\/td>\n\u00a0<\/td>\n<\/tr>\n
Average advisory fee<\/td>\n\u00a0<\/td>\n0.41<\/td>\n%<\/td>\n\u00a0<\/td>\n0.42<\/td>\n%<\/td>\n\u00a0<\/td>\n0.41<\/td>\n%<\/td>\n\u00a0<\/td>\n0.42<\/td>\n%<\/td>\n\u00a0<\/td>\n0.44<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n
\n Consolidated Financial Highlights ($ in millions, except per share amounts):<\/u>
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Operating revenues<\/td>\n$<\/td>\n67.1<\/td>\n\u00a0<\/td>\n$<\/td>\n64.6<\/td>\n\u00a0<\/td>\n$<\/td>\n58.1<\/td>\n\u00a0<\/td>\n$<\/td>\n63.9<\/td>\n\u00a0<\/td>\n$<\/td>\n68.9<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss<\/td>\n$<\/td>\n(13.5<\/td>\n)<\/td>\n$<\/td>\n(0.3<\/td>\n)<\/td>\n$<\/td>\n(13.3<\/td>\n)<\/td>\n$<\/td>\n(8.6<\/td>\n)<\/td>\n$<\/td>\n(25.9<\/td>\n)<\/td>\n<\/tr>\n
Diluted loss per share<\/td>\n$<\/td>\n(0.10<\/td>\n)<\/td>\n$<\/td>\n(0.01<\/td>\n)<\/td>\n$<\/td>\n(0.09<\/td>\n)<\/td>\n$<\/td>\n(0.06<\/td>\n)<\/td>\n$<\/td>\n(0.17<\/td>\n)<\/td>\n<\/tr>\n
Operating income margin<\/td>\n\u00a0<\/td>\n19.2<\/td>\n%<\/td>\n\u00a0<\/td>\n22.8<\/td>\n%<\/td>\n\u00a0<\/td>\n20.3<\/td>\n%<\/td>\n\u00a0<\/td>\n24.5<\/td>\n%<\/td>\n\u00a0<\/td>\n21.5<\/td>\n%<\/td>\n<\/tr>\n
\n As Adjusted (Non-GAAP<\/u>
\n 1<\/sup>):<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gross margin<\/td>\n\u00a0<\/td>\n75.6<\/td>\n%<\/td>\n\u00a0<\/td>\n76.5<\/td>\n%<\/td>\n\u00a0<\/td>\n75.1<\/td>\n%<\/td>\n\u00a0<\/td>\n77.3<\/td>\n%<\/td>\n\u00a0<\/td>\n77.3<\/td>\n%<\/td>\n<\/tr>\n
Net income, as adjusted<\/td>\n$<\/td>\n9.2<\/td>\n\u00a0<\/td>\n$<\/td>\n11.0<\/td>\n\u00a0<\/td>\n$<\/td>\n8.5<\/td>\n\u00a0<\/td>\n$<\/td>\n11.2<\/td>\n\u00a0<\/td>\n$<\/td>\n10.1<\/td>\n\u00a0<\/td>\n<\/tr>\n
Diluted earnings per share, as adjusted<\/td>\n$<\/td>\n0.06<\/td>\n\u00a0<\/td>\n$<\/td>\n0.07<\/td>\n\u00a0<\/td>\n$<\/td>\n0.05<\/td>\n\u00a0<\/td>\n$<\/td>\n0.07<\/td>\n\u00a0<\/td>\n$<\/td>\n0.06<\/td>\n\u00a0<\/td>\n<\/tr>\n
Operating income margin, as adjusted<\/td>\n\u00a0<\/td>\n19.2<\/td>\n%<\/td>\n\u00a0<\/td>\n22.8<\/td>\n%<\/td>\n\u00a0<\/td>\n20.4<\/td>\n%<\/td>\n\u00a0<\/td>\n25.1<\/td>\n%<\/td>\n\u00a0<\/td>\n22.0<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n RECENT BUSINESS DEVELOPMENTS<\/strong>\n <\/p>\n\n\n
\n
\n Company News<\/u>
\n <\/p>\n