A Message from WisdomTree Founder & CEO
Q3 2024: From Record Results to Future Opportunities: How WisdomTree is Leveraging Secular Trends
October 25, 2024
The third quarter has been another exciting one for WisdomTree, with strong results that highlight our disciplined execution and set the stage for future growth. Despite a challenging market environment, we continued to deliver value to our stakeholders.
In Q3 2024, we achieved record assets under management (AUM), reaching approximately $113 billion. This AUM growth helped us expand adjusted operating margins by over 800 basis points to 37.3%, while adjusted earnings per share grew by 80% compared to Q3 last year. Additionally, recent strategic capital actions, including the repurchase of all of our outstanding Series A Non-Voting Convertible Preferred Stock from ETFS Capital Limited and additional common stock, underscores our commitment to delivering shareholder value.
What excites me most, however, is the foundation we’re building for the future. WisdomTree always has been about more than just strong financial performance—we’ve consistently pushed boundaries to stay ahead of the curve. Nearly 20 years ago, we pioneered self-indexing and alpha-generating ETFs. Today, we’re continuing to innovate in areas like tokenization, which I believe will continue to transform the financial landscape.
A key driver of our recent growth has been our models business, which you may have heard me discuss before. We’ve seen strong demand for flexible, efficient portfolio solutions, and in the coming weeks, we’ll expand access to 85,000 advisors, up from 70,000. Engagement is growing steadily, with over 2,500 advisors actively using at least one model. By deepening these relationships, we’re enhancing asset retention and creating more predictable revenue streams—momentum that we expect to continue.
At the same time, we’re making significant progress in tokenization, which I believe is a major growth driver for the future. We’re leading the way in this space with two platforms—WisdomTree Prime® and WisdomTree Connect™. WisdomTree Prime, our direct-to-retail platform, is available to about 80% of the U.S. population and more states are on the horizon. This platform offers features like dynamic spending from already-live money market fund balances and we plan to continue adding enhancements to the platform in the months ahead.
On the institutional side, WisdomTree Connect, our business-to-business platform, is now live and enables clients to interact with WisdomTree-issued tokens across supported blockchains. This is a pivotal development in our tokenization strategy, opening up new opportunities for businesses to engage with tokenized products in entirely new ways.
Our token issuance platform, which powers both WisdomTree Prime and WisdomTree Connect, provides additional opportunities. The platform allows us to tokenize a wide range of products, either for our own use or on behalf of others. This vertical integration provides a competitive advantage as we scale and innovate in blockchain-enabled finance, and I believe it will contribute meaningfully to our growth in the years to come.
Finally, this month, we celebrate our 10-year anniversary in Europe. Since establishing our European presence in 2014, we have experienced remarkable growth and have become a trusted resource for investors across the continent. Over the last decade, we have grown in Europe to more than $30 billion in AUM and over 100 employees, and we’re proud to be a trusted partner to our European clients. It’s amazing to think we launched 10 years ago, but a decade is just the beginning.
Looking ahead, I remain very optimistic. WisdomTree is well positioned to capitalize on the evolving financial landscape. Our traditional global ETF business is thriving, our tokenization strategy is gaining momentum, and our disciplined execution continues to drive strong financial results. While the market has its challenges, we are building a foundation for sustainable, long-term growth—and I’m excited for what’s next.
— Jonathan Steinberg
Chief Executive Officer, WisdomTree