{"id":520639,"date":"2021-07-30T07:03:27","date_gmt":"2021-07-30T11:03:27","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/wisdomtree-announces-second-quarter-2021-results-diluted-earnings-per-share-of-0-11-0-10-as-adjusted\/"},"modified":"2021-07-30T07:03:27","modified_gmt":"2021-07-30T11:03:27","slug":"wisdomtree-announces-second-quarter-2021-results-diluted-earnings-per-share-of-0-11-0-10-as-adjusted","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/wisdomtree-announces-second-quarter-2021-results-diluted-earnings-per-share-of-0-11-0-10-as-adjusted\/","title":{"rendered":"WisdomTree Announces Second Quarter 2021 Results \u2013 Diluted Earnings Per Share of $0.11 ($0.10, as adjusted)"},"content":{"rendered":"
\n

NEW YORK, July 30, 2021 (GLOBE NEWSWIRE) — WisdomTree Investments, Inc. (NASDAQ: WETF) today reported financial results for the second quarter of 2021.<\/p>\n

\n $17.6 million net income ($16.81<\/sup> million net income, as adjusted)<\/strong>, see \u201cNon-GAAP Financial Measurements\u201d for additional information.<\/p>\n

\n $73.9 billion of ending AUM<\/strong>, an increase of 6.3% arising from market appreciation and net inflows.<\/p>\n

\n $0.9 billion of net inflows<\/strong>, driven by inflows into our emerging markets equity, international developed market equity, U.S. equity and fixed income 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 $77.6 million of operating revenues<\/strong>, an increase of 6.6% due to higher average AUM, partly offset by a lower average global advisory fee.
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
79.1% gross margin1<\/sup><\/strong>, a 0.4 point increase from the previous quarter.<\/p>\n

\n 30.5% operating income margin<\/strong>, a 5.0 point increase primarily due to higher revenues.<\/p>\n

\n $150.0 million issuance of convertible senior notes due 2026<\/strong>, bearing interest at a rate of 3.25% and issued with a conversion price of $11.04 per share.\u00a0 We used a portion of the proceeds to repurchase our common stock and intend to use the remainder of the net proceeds for working capital and other general corporate purposes, which may include debt retirement, organic and inorganic growth initiatives and common stock repurchases.<\/p>\n

\n $31.9 million repurchase of 4.6 million shares of our common stock<\/strong>, principally in connection with the issuance of the convertible notes.<\/p>\n

\n $0.03 quarterly dividend<\/strong>
\n declared<\/strong>, payable on August 25, 2021 to stockholders of record as of the close of business on August 11, 2021.<\/p>\n\n\n\n
\n Update from Jonathan Steinberg, WisdomTree CEO<\/strong>\n <\/td>\n<\/tr>\n
\u201cMany businesses across the financial services ecosystem are struggling to balance legacy business models and the conflicts that arise with fast moving technological advancements – not WisdomTree. \u00a0Our solid operating and financial results in the second quarter demonstrate continued growth and strong execution across our business today, along with exciting progress on our long-term strategic initiatives,\u00a0all while showing the efficiency and scalability of our business.\u00a0 <\/p>\n

\u201cWe continue to strengthen our position in areas of growing interest such as liquid alternatives, ESG and model portfolios.\u00a0 We are also quickly establishing expertise around digital assets, delivering the insights from our pioneering work in regulated cryptocurrency exposures and our broader vision for the applications of blockchain technology in the form of investor-facing research and events.<\/p>\n

\u201cThe focus and flexibility of our remote first business model have enabled WisdomTree to attract and retain world-class talent, drive strong operating results, and engage with our clients across different modalities with an ever-expanding set of resources.\u201d \u00a0\u00a0<\/strong><\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n
\n Update from Jarrett Lilien, WisdomTree COO and President\u00a0<\/strong>\n <\/td>\n<\/tr>\n
\u201cThis was a strong quarter for WisdomTree, extending a string of strong quarters,<\/strong> and we are continuing to build momentum as we execute on our key growth initiatives. <\/p>\n

\u201cWe are producing balance and quality in the mix of our global flows.\u00a0 In the U.S., we are seeing strength in our Large Blend, Emerging Markets and China funds. In Europe, our UCITs ETFs and Thematic funds are standouts, and we are also experiencing growth in industrial metals, copper, silver and even gold, while there continues to be volatility in the gold market.<\/p>\n

\u201cWe are investing in our future growth with 11 new fund launches and a number of well-received product enhancements completed in the first half of the year.\u00a0 We also launched ESG model portfolios and +Crypto models this past quarter and continue to be optimistic about the impact of models on our flows. <\/p>\n

\u201cWe are executing well on all fronts, building momentum and are excited to enter the second half of the year building on these strong results.\u201d\u00a0<\/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 \u00a0<\/strong>\n <\/td>\n\n Three Months Ended<\/strong>\u00a0\u00a0<\/td>\n<\/tr>\n
\n \u00a0<\/strong>\n <\/td>\n\n June 30,
2021<\/u><\/strong>\n <\/td>\n		\n Mar. 31,
2021<\/u><\/strong>\n <\/td>\n		\n Dec.\u00a031,
2020<\/u><\/strong>\n <\/td>\n		\n Sept. 30,
2020<\/u><\/strong>\n <\/td>\n		\n June 30,
2020<\/u><\/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$<\/td>\n73.9<\/td>\n\u00a0<\/td>\n$<\/td>\n69.5<\/td>\n\u00a0<\/td>\n$<\/td>\n67.4<\/td>\n\u00a0<\/td>\n$<\/td>\n60.7<\/td>\n\u00a0<\/td>\n$<\/td>\n57.7<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net inflows\/(outflows)<\/td>\n$<\/td>\n0.9<\/td>\n\u00a0<\/td>\n$<\/td>\n1.3<\/td>\n\u00a0<\/td>\n$<\/td>\n0.9<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.5<\/td>\n)<\/td>\n$<\/td>\n0.1<\/td>\n\u00a0<\/td>\n<\/tr>\n
Average AUM<\/td>\n$<\/td>\n73.7<\/td>\n\u00a0<\/td>\n$<\/td>\n69.6<\/td>\n\u00a0<\/td>\n$<\/td>\n64.1<\/td>\n\u00a0<\/td>\n$<\/td>\n61.2<\/td>\n\u00a0<\/td>\n$<\/td>\n55.7<\/td>\n\u00a0<\/td>\n<\/tr>\n
Average advisory fee<\/td>\n\u00a0<\/td>\n0.41<\/td>\n%<\/td>\n\u00a0<\/td>\n0.42<\/td>\n%<\/td>\n\u00a0<\/td>\n0.41<\/td>\n%<\/td>\n\u00a0<\/td>\n0.42<\/td>\n%<\/td>\n\u00a0<\/td>\n0.41<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n
\n Consolidated Financial Highlights <\/u>
\n <\/strong>
\n
\n ($ 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$<\/td>\n77.6<\/td>\n\u00a0<\/td>\n$<\/td>\n72.8<\/td>\n\u00a0<\/td>\n$<\/td>\n67.1<\/td>\n\u00a0<\/td>\n$<\/td>\n64.6<\/td>\n\u00a0<\/td>\n$<\/td>\n58.1<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net income\/(loss)<\/td>\n$<\/td>\n17.6<\/td>\n\u00a0<\/td>\n$<\/td>\n15.1<\/td>\n\u00a0<\/td>\n$<\/td>\n(13.5<\/td>\n)<\/td>\n$<\/td>\n(0.3<\/td>\n)<\/td>\n$<\/td>\n(13.3<\/td>\n)<\/td>\n<\/tr>\n
Diluted earnings\/(loss) per share<\/td>\n$<\/td>\n0.11<\/td>\n\u00a0<\/td>\n$<\/td>\n0.09<\/td>\n\u00a0<\/td>\n$<\/td>\n(0.10<\/td>\n)<\/td>\n$<\/td>\n(0.01<\/td>\n)<\/td>\n$<\/td>\n(0.09<\/td>\n)<\/td>\n<\/tr>\n
Operating income margin<\/td>\n\u00a0<\/td>\n30.5<\/td>\n%<\/td>\n\u00a0<\/td>\n25.5<\/td>\n%<\/td>\n\u00a0<\/td>\n19.2<\/td>\n%<\/td>\n\u00a0<\/td>\n22.8<\/td>\n%<\/td>\n\u00a0<\/td>\n20.3<\/td>\n%<\/td>\n<\/tr>\n
\n As Adjusted (Non-GAAP<\/u>
\n 1<\/sup>):<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gross margin<\/td>\n\u00a0<\/td>\n79.1<\/td>\n%<\/td>\n\u00a0<\/td>\n78.7<\/td>\n%<\/td>\n\u00a0<\/td>\n75.6<\/td>\n%<\/td>\n\u00a0<\/td>\n76.5<\/td>\n%<\/td>\n\u00a0<\/td>\n75.1<\/td>\n%<\/td>\n<\/tr>\n
Net income, as adjusted<\/td>\n$<\/td>\n16.8<\/td>\n\u00a0<\/td>\n$<\/td>\n12.5<\/td>\n\u00a0<\/td>\n$<\/td>\n9.2<\/td>\n\u00a0<\/td>\n$<\/td>\n11.0<\/td>\n\u00a0<\/td>\n$<\/td>\n8.5<\/td>\n\u00a0<\/td>\n<\/tr>\n
Diluted earnings per share, as adjusted<\/td>\n$<\/td>\n0.10<\/td>\n\u00a0<\/td>\n$<\/td>\n0.08<\/td>\n\u00a0<\/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<\/tr>\n<\/table>\n

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