WisdomTree (WETF) Tops Q4 EPS by 1c, Revenues Beat

January 29, 2021 7:07 AM EST

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WisdomTree (NASDAQ: WETF) reported Q4 EPS of $0.06, $0.01 better than the analyst estimate of $0.05. Revenue for the quarter came in at $67.1 million versus the consensus estimate of $65.7 million.

  • ($13.5) million net loss ($9.21 million net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.
  • $22.4 million of non-cash charges, associated with the revaluation of deferred consideration – gold payments.
  • $67.4 billion of ending AUM, an increase of 11.0% arising from market appreciation and net inflows.
  • $881 million of net inflows, 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.
  • 0.41% average global advisory fee, a decrease of 1 basis point due to AUM mix shift.
  • $67.1 million of operating revenues, an increase of 3.7% primarily due to higher average AUM, partly offset by a lower average global advisory fee.
  • 75.6% gross margin1, a 0.9 point decrease primarily due to Brexit and fund rebalancing costs.
  • 19.2% operating income margin, a 3.6 point decrease primarily due to higher operating expenses, partly offset by higher revenues.
  • $0.03 quarterly dividend declared, payable on February 24, 2021 to stockholders of record as of the close of business on February 10, 2021.

Update from Jonathan Steinberg, WisdomTree CEO

“Our 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.

“We 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.”

For earnings history and earnings-related data on WisdomTree (WETF) click here.

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