Q2 2024: Successful and Efficient Execution of Our Vision

July 26, 2024

This morning, we hosted our Q2 2024 earnings call where I was excited to share our strong results with our key stakeholders and the broader investment community: record assets under management (AUM), strong year-to-date inflows, 840 basis points of adjusted margin expansion year-to-date and 78% year-over-year growth in our Q2 adjusted earnings per share (EPS).

However, and perhaps even more importantly, is that, when I reflect on both our prior achievements and the opportunities ahead, I’m not only proud of how much WisdomTree has accomplished but that we have achieved success efficiently and ahead of the curve.

• Nearly 20 years ago, WisdomTree was the pioneer in self-indexing and alpha-generating ETF strategies. Today, we are not only a market leader, but have grown our product suite to offer a solution for nearly any market environment and every part of the cycle.

 

• About 10 years ago, we began our expansion into Europe with a controlling investment in a company called Boost, which was followed a few years later by our acquisition of the European business of ETF Securities Limited. Since then, we’ve developed our European franchise into a highly profitable, fully integrated extension of our US ETF business that is not only exceeding our initial expectations from years ago but is a key part of WisdomTree’s long-term success.

 

• Roughly 7 years ago, we made meaningful investments in data, partnerships and technology. Today, the result of those actions is that WisdomTree has evolved into a trusted solutions provider for our wealth management clients through our broad array of ETFs, our models franchise and our portfolio consultation business. Assets and flows from portfolio solutions are more recurring and dependable, and have meaningfully added to our three consecutive years of net inflows. We believe portfolio solutions will be an even greater contributor to total AUM growth in the quarters and years ahead.

 

• Nearly 5 years ago, we launched our first crypto products in Europe and began strategically thinking about opportunities in tokenization and blockchain-enabled finance. Although the lengthy regulatory process has taken longer than we initially anticipated, my optimism about the opportunity ahead of us is greater today than it was when we began this journey. WisdomTree has a leadership position in what might be the most significant secular trend facing the asset management and broader financial services industries today.

WisdomTree continually proves to be forward-looking in our vision and those efforts are bearing fruit today while also setting the company up for success in the long run. We are generating strong revenue growth – from flows, from the market and from expanding other revenue streams. With well-managed expenses and scale benefits, we are expanding our operating margins too – all of which translates into an accelerated pace of EPS growth and strong returns for stockholders.

I’m even more proud that we’ve generated record AUM with a global footprint and our leadership in solutions and tokenization on the back of just 300 employees – it truly is a testament to the efficiency of our business model and the power of our team.

As I mentioned in recent quarters, it’s a very exciting time for WisdomTree. We have strong organic growth, a meaningful margin expansion opportunity and significant leverage in the secular shift toward tokenization.