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WisdomTree Announces Second Quarter 2023 Results – Record Quarter-End AUM of $93.7 Billion; Diluted Earnings Per Share of $0.32 ($0.09, as Adjusted)

Eleven consecutive quarters of net inflows

Annualized inflow rate of 21% across all products

Termination of contractual gold payments and operating leverage expands margin

NEW YORK–(BUSINESS WIRE)–WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the second quarter of 2023.

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$54.3 million net income ($14.9(1) million net income, as adjusted); including a non-cash gain of $41.4 million associated with the revaluation and termination of our deferred consideration—gold payments obligation.

$93.7 billion of ending AUM, an increase of 3.3% from the previous quarter arising from net inflows and market appreciation.

$2.3 billion of net inflows, primarily driven by inflows into our international equity and fixed income products, partly offset by outflows from our commodity products.

0.36% average advisory fee, unchanged from last quarter.

$85.7 million of operating revenues, an increase of 4.5% from the previous quarter primarily due to higher average AUM.

79.3% gross margin(1), a 0.2 point increase from the previous quarter due to higher revenues.

21.2% operating income margin (26.9%(1) as adjusted), a 1 point increase (5.5 point increase, as adjusted(1)) compared to our operating margin of 20.2% in the prior quarter due to higher revenues and lower contractual gold payments (upon the termination of our deferred consideration—gold payments obligation on May 10, 2023), partly offset by higher expenses incurred in response to an activist campaign.

$60.0 million of cash paid and 1,037,288 shares of common stock issued in connection with the maturity of $60.0 million aggregate principal amount of 4.25% Convertible Senior Notes.

$50.0 million cash consideration paid and 13,087 shares of Series C Non-Voting Convertible Preferred Stock, convertible into 13,087,000 shares of common stock, issued to terminate our deferred consideration—gold payments obligation.

$0.03 quarterly dividend declared, payable on August 23, 2023 to stockholders of record as of the close of business on August 9, 2023.

Update from Jonathan Steinberg, WisdomTree CEO

 

“WisdomTree’s momentum continued in the second quarter with a 21% year-to-date pace of annualized organic flow growth, best-in-class among our asset manager peers, propelling our global AUM to record high levels. Additionally, we launched WisdomTree Prime™ in 21 states at the end of June, with near full coverage in the U.S. expected by year end. The personal finance app empowers users to save, spend and invest, bringing tokenization and blockchain-enabled finance to the center of the consumer’s financial life. Whether it’s growing the platform organically, leveraging B2B or B2B2C opportunities, or utilizing our early-mover status in tokenization to pursue third party distribution, we have significant opportunity and have opened many paths to success. I’ve never been more excited about the road ahead than I am today and expect our momentum will continue through 2023 and beyond.”
 

Update from Jarrett Lilien, WisdomTree COO and President

 

“WisdomTree has had one of its strongest first halves of a year in company history, with best-in-class flow growth driven by deep and wide flow momentum, having gathered net inflows in all 8 major product categories across our broad product suite. Our differentiated models business is also gaining traction, deepening penetration with current partners like Merrill Lynch and Morgan Stanley, winning new mandates with key partners like LPL and Corbu, and continuing to expand our models business with small independent RIAs and broker-dealers, where our pipeline is strong. And, after expanding operating margins by over 500bps through the termination of our contractual gold payments obligation earlier this quarter, we expect further margin expansion in the years ahead as our business is scalable with high incremental margins.” 
 

OPERATING AND FINANCIAL HIGHLIGHTS

 

Three Months Ended

 

June 30,

2023

Mar. 31,

2023

Dec. 31,

2022

Sept. 30,

2022

June 30,

2022

Consolidated Operating Highlights ($ in billions):

 

 

 

 

 

AUM—end of period

$

93.7

 

$

90.7

 

$

82.0

 

$

70.9

 

$

74.3

 

Net inflows

$

2.3

 

$

6.3

 

$

5.3

 

$

1.7

 

$

3.9

 

Average AUM

$

91.6

 

$

87.5

 

$

77.6

 

$

74.7

 

$

77.7

 

Average advisory fee

 

0.36

%

 

0.36

%

 

0.36

%

 

0.38

%

 

0.39

%

 

 

 

 

 

 

 

 

 

 

 

Consolidated Financial Highlights ($ in millions, except per share amounts):

 

 

 

 

 

Operating revenues

$

85.7

 

$

82.0

 

$

73.3

 

$

72.4

 

$

77.3

 

Net income/(loss)

$

54.3

 

$

16.2

 

$

(28.3

)

$

81.2

 

$

8.0

 

Diluted earnings/(loss) per share

$

0.32

 

$

0.10

 

$

(0.20

)

$

0.50

 

$

0.05

 

Operating income margin

 

21.2

%

 

20.2

%

 

16.0

%

 

20.5

%

 

20.5

%

As Adjusted (Non-GAAP(1)):

 

 

 

 

 

Gross margin

 

79.3

%

 

79.1

%

 

76.9

%

 

77.5

%

 

79.2

%

Net income, as adjusted

$

14.9

 

$

11.2

 

$

7.0

 

$

9.3

 

$

11.3

 

Diluted earnings per share, as adjusted

$

0.09

 

$

0.07

 

$

0.04

 

$

0.06

 

$

0.07

 

Operating income margin, as adjusted

 

26.9

%

 

21.4

%

 

16.0

%

 

20.5

%

 

23.1

%

 

 

 

 

 

 

RECENT BUSINESS DEVELOPMENTS

Company News

  • In May 2023, we closed a transaction resulting in the termination of WisdomTree’s contractual gold payments obligation to ETFS Capital Limited for approximately $137 million. The transaction expands our operating margin by over 500 basis points, is accretive to earnings per share and reduces volatility in our quarterly GAAP financial results.
  • In June 2023, stockholders elected five of WisdomTree’s six nominees, including new director Shamla Naidoo, and one of three nominees proposed by ETFS Capital Limited, Tonia Pankopf, to WisdomTree’s Board of Directors; and Win Neuger was appointed Chair of the Board.
  • In July 2023, WisdomTree Prime™ became available in the Apple App Store and Google Play for users across 21 states in the U.S., granting investors access to the blockchain-enabled financial app built to save, spend, and invest in digital assets and WisdomTree Digital Funds; our European business won ‘Best ETF Issuer’ at the Online Money Awards, marking the 2nd consecutive year of winning the award.
  • Also in July 2023, new chairs and members were appointed to all three committees of our Board of Directors.

Product News

  • In June 2023, we announced 2-for-1 forward share splits on the WisdomTree Europe Hedged Equity Fund (HEDJ), the WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund (AGZD) and the WisdomTree Japan Hedged SmallCap Equity Fund (DXJS); we launched the CORBU x WT PolyMacro Model Portfolios, a collaborative effort with CORBU, a research intelligence and advisory platform, designed for a rapidly changing global investment landscape; our Siegel-WisdomTree Longevity and Siegel-WisdomTree Global Equity Models became available on LPL Financial’s unified managed account platform Model Wealth Portfolios (MWP); and we launched the WisdomTree Renewable Energy UCITS ETF (WRNW) on the London Stock Exchange, Borsa Italiana and Börse Xetra.
  • In July 2023, we expanded our range of UCITS ETFs on SIX, the Swiss Stock Exchange, with the listing of the WisdomTree Broad Commodities UCITS ETF (PCOM) and WisdomTree Enhanced Commodity ex-Agriculture UCITS ETF (WXAG).
 
                                 

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)
                               

 

  

Three Months Ended

  

Six Months Ended

 

  

June 30,

2023

  

Mar. 31,

2023

  

Dec. 31,

2022

  

Sept. 30,

2022

 

June 30,

2022

  

June 30,

2023

 

June 30,

2022

Operating Revenues:

  

 

    

 

    

 

    

 

    

 

 

    

 

    

 

 

Advisory fees

  

$

82,004

 

$

77,637

 

$

70,913

 

$

70,616

 

 

$

75,586

 

$

159,641

 

 

$

152,103

 

Other income

  

 

3,720

 

 

4,407

 

 

2,397

 

 

1,798

 

 

 

1,667

 

 

8,127

 

 

 

3,518

 

Total revenues

  

 

85,724

 

 

82,044

 

 

73,310

 

 

72,414

 

 

 

77,253

 

 

167,768

 

 

 

155,621

 

Operating Expenses:

  

 

    

 

    

 

    

 

    

 

 

    

 

    

 

 

  

Compensation and benefits

  

 

26,319

 

 

27,398

 

 

24,831

 

 

23,714

 

 

 

24,565

 

 

53,717

 

 

 

49,352

 

Fund management and administration

  

 

17,727

 

 

17,153

 

 

16,906

 

 

16,285

 

 

 

16,076

 

 

34,880

 

 

 

31,570

 

Marketing and advertising.

  

 

4,465

 

 

4,007

 

 

4,240

 

 

3,145

 

 

 

3,894

 

 

8,472

 

 

 

7,917

 

Sales and business development

  

 

3,326

 

 

2,994

 

 

3,407

 

 

2,724

 

 

 

3,131

 

 

6,320

 

 

 

5,740

 

Contractual gold payments

  

 

1,583

 

 

4,486

 

 

4,107

 

 

4,105

 

 

 

4,446

 

 

6,069

 

 

 

8,896

 

Professional fees

  

 

8,334

 

 

3,715

 

 

2,666

 

 

2,367

 

 

 

4,308

 

 

12,049

 

 

 

8,767

 

Occupancy, communications and equipment

  

 

1,172

 

 

1,101

 

 

1,110

 

 

986

 

 

 

1,049

 

 

2,273

 

 

 

1,802

 

Depreciation and amortization

  

 

121

 

 

109

 

 

104

 

 

58

 

 

 

53

 

 

230

 

 

 

100

 

Third-party distribution fees

  

 

1,881

 

 

2,253

 

 

1,793

 

 

1,833

 

 

 

1,818

 

 

4,134

 

 

 

4,030

 

Other

  

 

2,615

 

 

2,257

 

 

2,427

 

 

2,324

 

 

 

2,109

 

 

4,872

 

 

 

3,954

 

Total operating expenses

  

 

67,543

 

 

65,473

 

 

61,591

 

 

57,541

 

 

 

61,449

 

 

133,016

 

 

 

122,128

 

Operating income

  

 

18,181

 

 

16,571

 

 

11,719

 

 

14,873

 

 

 

15,804

 

 

34,752

 

 

 

33,493

 

Other Income/(Expenses):

  

 

    

 

    

 

    

 

    

 

 

    

 

    

 

 

  

Interest expense

  

 

(4,021

)

 

(4,002)

 

(3,736)

 

(3,734

)

 

 

(3,733)

 

(8,023

)

 

 

(7,465

)

Gain/(loss) on revaluation/termination of deferred consideration—gold payments

  

 

41,361

 

 

20,592

 

 

(35,423)

 

77,895

 

2,311

 

61,953

 

 

(14,707

)

Interest income

  

 

1,000

 

 

1,083

 

 

945

 

 

811

 

 

 

770

 

 

2,083

 

 

 

1,564

 

Impairments

  

 

—

 

 

(4,900)

 

—

 

 

—

 

 

 

—

 

 

(4,900

)

 

 

—

 

Loss on extinguishment of convertible notes

  

 

—

 

 

(9,721)

 

—

 

 

—

 

 

 

—

 

 

(9,721

)

 

 

—

 

Other gains and losses, net

  

 

1,286

 

 

(2,007)

 

(1,815)

 

(5,289

)

 

 

(4,474)

 

(721

)

 

 

(29,181

)

Income/(loss) before income taxes

  

 

57,807

 

 

17,616

 

 

(28,310)

 

84,556

 

 

 

10,678

 

 

75,423

 

 

 

(16,296

 )

Income tax expense/(benefit)

  

 

3,555

 

 

1,383

 

 

(21)

 

3,327

 

 

 

2,673

 

 

4,938

 

 

 

(14,040

 )

Net income/(loss)

  

$

54,252

 

$

16,233

 

$

(28,289)

$

81,229

 

 

$

8,005

 

$

70,485

 

 

$

(2,256

 )

Earnings/(loss) per share—basic

  

$

0.32(2)

$

0.10(2)

$

(0.20)

$

0.50(2)

 

$

0.05(2)

$

0.43(2)

 

$

(0.02)(2)

Earnings/(loss) per share—diluted

  

$

0.32

 

$

0.10

 

$

(0.20)

$

0.50(2)

 

$

0.05

 

$

0.42(2)

 

$

(0.02

 )

Weighted average common shares—basic

  

 

144,351

 

 

143,862

 

 

143,126

 

 

143,120

 

 

$

143,046

 

 

144,108

 

 

 

142,915

 

Weighted average common shares—diluted

  

 

170,672

 

 

159,887

 

 

143,126

 

 

158,953

 

 

 

158,976

 

 

165,468

 

 

 

142,915

 

 

  

 

    

 

    

 

    

 

    

 

 

    

 

    

 

 

  

As Adjusted (Non-GAAP(1))

  

 

    

 

    

 

    

 

    

 

 

    

 

    

 

 

  

Total operating expenses

  

$

62,630

 

$

64,506

 

$

61,591

 

$

57,541

 

 

$

59,425

 

 

    

 

 

  

Operating income

  

$

23,094

 

$

17,538

 

$

11,719

 

$

14,873

 

 

$

17,828

 

 

    

 

 

  

Income before income taxes

  

$

19,752

 

$

14,485

 

$

8,615

 

$

12,645

 

 

$

14,498

 

 

    

 

 

  

Income tax expense

  

$

4,833

 

$

3,287

 

$

1,588

 

$

3,323

 

 

$

3,241

 

 

    

 

 

  

Net income

  

$

14,919

 

$

11,198

 

$

7,027

 

$

9,322

 

 

$

11,257

 

 

    

 

 

  

Earnings per share—diluted

  

$

0.09

 

$

0.07

 

$

0.04

 

$

0.06

 

 

$

0.07

 

 

    

 

 

  

Weighted average common shares—diluted

  

 

170,672

 

 

159,887

 

 

159,478

 

 

158,953

 

 

 

158,976

 

 

    

 

 

  

 

 

                  

 

    

 

      

QUARTERLY HIGHLIGHTS

Operating Revenues

  • Operating revenues increased 4.5% and 11.0% from the first quarter of 2023 and the second quarter of 2022, respectively, primarily due to higher average AUM.
  • Our average advisory fee was 0.36%, 0.36% and 0.39% during the second quarter of 2023, the first quarter of 2023 and the second quarter of 2022, respectively.

Operating Expenses

  • Operating expenses increased 3.2% from the first quarter of 2023 primarily due to higher professional fees incurred in connection with an activist campaign. This increase was partly offset by lower contractual gold payments, as well as lower compensation due to seasonal items occurring in the prior quarter.
  • Operating expenses increased 9.9% from the second quarter of 2022 primarily due to higher professional fees incurred in connection with an activist campaign, incentive compensation and headcount, and fund management and administration costs. These increases were partly offset by lower contractual gold payments.

Other Income/(Expenses)

  • Interest expense was essentially unchanged from the first quarter of 2023 and increased 7.7% from the second quarter of 2022 due to a higher average level of debt outstanding and a higher effective interest rate.
  • We recognized a non-cash gain on revaluation/termination of deferred consideration of $41.4 million during the second quarter of 2023. This obligation was terminated on May 10, 2023 for aggregate consideration totaling approximately $137.0 million, including $50.0 million in cash and the issuance of 13,087 shares of Series C Non-Voting Convertible Preferred Stock (valued at $86.9 million) which are convertible into 13,087,000 shares of the Company’s common stock.
  • Interest income was essentially unchanged from the first quarter of 2023 and increased 29.9% from the second quarter of 2022, respectively, due to rising interest rates.
  • Other gains and losses, net was $1.3 million for the second quarter of 2023. This quarter includes gains on our investments of $3.1 million, partly offset by losses on our financial instruments owned of $1.0 million. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold exchange-traded products (“ETPs”), foreign exchange fluctuations and other miscellaneous items.

Income Taxes

  • Our effective income tax rate for the second quarter of 2023 was 6.1%, resulting in income tax expense of $3.6 million. The effective tax rate differs from the federal statutory rate of 21% primarily due to a non-taxable gain on revaluation/termination of deferred consideration and a decrease in the deferred tax asset valuation allowance on losses recognized on our investments. These items were partly offset by non-deductible executive compensation.
  • Our adjusted effective income tax rate was 24.5%(1).

SIX MONTH HIGHLIGHTS

  • Operating revenues increased 7.8% as compared to 2022 due to higher average AUM and higher other income from large flows into some of our European products, partly offset by a lower average advisory fee.
  • Operating expenses increased 8.9% as compared to 2022 primarily due to higher incentive compensation and headcount, fund management and administration costs and professional fees incurred in connection with an activist campaign. These increases were partly offset by lower contractual gold payments.
  • Significant items reported in other income/(expense) in 2023 include: an increase in interest expense of 7.5% due to a higher level of debt outstanding; an increase in interest income of 33.2% due to an increase in our financial instruments owned; a non-cash charge of $1.4 million arising from the release of tax-related indemnification assets upon the expiration of the statute of limitations (an equal and offsetting benefit was recognized in income tax expense); gains on our financial instruments owned of $0.9 million and losses on our investments of $0.8 million. Gains and losses also generally arise from the sale of gold earned on management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
  • Our effective income tax rate for 2023 was 6.5%, resulting in an income tax expense of $4.9 million. Our tax rate differs from the federal statutory rate of 21% primarily due to a non-taxable gain on revaluation/termination of deferred consideration, a reduction in unrecognized tax benefits associated with the release of the tax-related indemnification asset described above and a lower tax rate on foreign earnings. These items were partly offset by a non-deductible loss on extinguishment of our convertible notes during the first quarter of 2023, non-deductible executive compensation and an increase in the deferred tax asset valuation allowance on losses recognized on our investments.

CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS

WisdomTree will discuss its results and operational highlights during a live webcast on Friday, July 28, 2023 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=G7ogAmF2.

Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the Participant international toll-free access numbers. To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time. All earnings materials and the webcast can be accessed through WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will also be available shortly after the call.

ABOUT WISDOMTREE

WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models and solutions. We empower investors to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing next-generation digital products and structures, including digital funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.

WisdomTree currently has approximately $97.2 billion in assets under management globally.

For more information about WisdomTree and WisdomTree PrimeTM, visit: https://www.wisdomtree.com.

Please visit us on Twitter at @WisdomTreeNews.

WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

____________

(1)

   See “Non-GAAP Financial Measurements.”

(2)

   Earnings/(loss) per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method.
 

WisdomTree, Inc.

  

Key Operating Statistics (Unaudited)

 

 

 

 

Three Months Ended

 

June 30,

2023

 

Mar. 31,

2023

Dec. 31,

2022

Sept. 30,

2022

June 30,

2022

GLOBAL ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

90,740

 

 

$

81,993

 

$

70,878

 

$

74,302

 

$

79,407

 

Inflows/(outflows)

 

2,327

 

 

 

6,341

 

 

5,264

 

 

1,747

 

 

3,852

 

Market appreciation/(depreciation)

 

599

 

 

 

2,406

 

 

5,851

 

 

(5,171

)

 

(8,953

)

Fund closures

 

—

 

 

 

—

 

 

—

 

 

—

 

 

(4

)

End of period assets

$

93,666

 

 

$

90,740

 

$

81,993

 

$

70,878

 

$

74,302

 

Average assets during the period

$

91,578

 

 

$

87,508

 

$

77,649

 

$

74,678

 

$

77,738

 

Average advisory fee during the period

 

0.36

%

 

 

0.36

%

 

0.36

%

 

0.38

%

 

0.39

%

Revenue days

 

91

 

 

 

90

 

 

92

 

 

92

 

 

91

 

Number of ETFs—end of the period

 

353

 

 

 

350

 

 

348

 

 

347

 

 

344

 

 

 

 

 

 

 

 

U.S. LISTED ETFs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

61,283

 

 

$

55,973

 

$

48,043

 

$

47,255

 

$

48,622

 

Inflows/(outflows)

 

3,249

 

 

 

4,012

 

 

4,232

 

 

3,812

 

 

4,278

 

Market appreciation/(depreciation)

 

1,371

 

 

 

1,298

 

 

3,698

 

 

(3,024

)

 

(5,645

)

End of period assets

$

65,903

 

 

$

61,283

 

$

55,973

 

$

48,043

 

$

47,255

 

Average assets during the period

$

62,712

 

 

$

59,430

 

$

53,655

 

$

49,466

 

$

48,270

 

Number of ETFs—end of the period

 

80

 

 

 

80

 

 

79

 

 

78

 

 

77

 

 

 

 

 

 

 

 

EUROPEAN LISTED ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

29,457

 

 

$

26,020

 

$

22,835

 

$

27,047

 

$

30,785

 

(Outflows)/inflows

 

(922

)

 

 

2,329

 

 

1,032

 

 

(2,065

)

 

(426

)

Market (depreciation)/appreciation

 

(772

)

 

 

1,108

 

 

2,153

 

 

(2,147

)

 

(3,308

)

Fund closures

 

—

 

 

 

—

 

 

—

 

 

—

 

 

(4

)

End of period assets

$

27,763

 

 

$

29,457

 

$

26,020

 

$

22,835

 

$

27,047

 

Average assets during the period

$

28,866

 

 

$

28,078

 

$

23,994

 

$

25,212

 

$

29,468

 

Number of ETPs—end of the period

 

273

 

 

 

270

 

 

269

 

 

269

 

 

267

 

 

 

 

 

 

 

PRODUCT CATEGORIES ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Equity

 

 

 

 

 

 

Beginning of period assets

$

24,534

 

 

$

24,112

 

$

20,952

 

$

21,058

 

$

23,738

 

Inflows/(outflows)

 

414

 

 

 

(149

)

 

1,021

 

 

1,239

 

 

306

 

Market appreciation/(depreciation)

 

1,053

 

 

 

571

 

 

2,139

 

 

(1,345

)

 

(2,986

)

End of period assets

$

26,001

 

 

$

24,534

 

$

24,112

 

$

20,952

 

$

21,058

 

Average assets during the period

$

24,732

 

 

$

24,726

 

$

23,492

 

$

22,535

 

$

22,362

 

 

 

 

 

 

 

Commodity & Currency

 

 

 

 

 

 

Beginning of period assets

$

24,924

 

 

$

22,097

 

$

19,561

 

$

23,624

 

$

26,302

 

(Outflows)/inflows

 

(1,512

)

 

 

2,003

 

 

796

 

 

(2,179

)

 

(475

)

Market (depreciation)/appreciation

 

(1,028

)

 

 

824

 

 

1,740

 

 

(1,884

)

 

(2,203

)

End of period assets

 

22,384

 

 

$

24,924

 

$

22,097

 

$

19,561

 

$

23,624

 

Average assets during the period

$

24,033

 

 

$

23,806

 

$

20,345

 

$

21,625

 

$

25,767

 

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

 

Beginning of period assets

$

18,708

 

 

$

15,273

 

$

11,695

 

$

9,192

 

$

5,418

 

Inflows/(outflows)

 

1,471

 

 

 

3,513

 

 

3,393

 

 

2,627

 

 

4,038

 

Market appreciation/(depreciation)

 

36

 

 

 

(78

)

 

185

 

 

(124

)

 

(264

)

End of period assets

$

20,215

 

 

$

18,708

 

$

15,273

 

$

11,695

 

$

9,192

 

Average assets during the period

$

19,185

 

 

$

17,176

 

$

13,962

 

$

10,077

 

$

7,426

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30,

2023

 

Mar. 31,

2023

Dec. 31,

2022

Sept. 30,

2022

June 30,

2022

 

 

 

 

 

 

 

International Developed Market Equity

 

 

 

 

 

 

Beginning of period assets

$

11,433

 

 

$

10,195

 

$

9,183

 

$

9,968

 

$

11,422

 

Inflows/(outflows)

 

1,592

 

 

 

450

 

 

40

 

 

(115

)

 

79

 

Market appreciation/(depreciation)

 

398

 

 

 

788

 

 

972

 

 

(670

)

 

(1,533

)

End of period assets

$

13,423

 

 

$

11,433

 

$

10,195

 

$

9,183

 

$

9,968

 

Average assets during the period

$

12,276

 

 

$

10,879

 

$

10,000

 

$

10,032

 

$

10,695

 

 

 

 

 

 

 

 

Emerging Market Equity

 

 

 

 

 

 

Beginning of period assets

$

8,811

 

 

$

8,116

 

$

7,495

 

$

8,386

 

$

9,991

 

Inflows/(outflows)

 

329

 

 

 

486

 

 

(53

)

 

114

 

 

(223

)

Market appreciation/(depreciation)

 

51

 

 

 

209

 

 

674

 

 

(1,005

)

 

(1,382

)

End of period assets

$

9,191

 

 

$

8,811

 

$

8,116

 

$

7,495

 

$

8,386

 

Average assets during the period

$

8,998

 

 

$

8,666

 

$

7,770

 

$

8,329

 

$

9,155

 

 

 

 

 

 

 

 

Leveraged & Inverse

 

 

 

 

 

 

Beginning of period assets

$

1,785

 

 

$

1,754

 

$

1,523

 

$

1,618

 

$

1,856

 

Inflows/(outflows)

 

12

 

 

 

43

 

 

59

 

 

45

 

 

90

 

Market appreciation/(depreciation)

 

67

 

 

 

(12

)

 

172

 

 

(140

)

 

(328

)

End of period assets

$

1,864

 

 

$

1,785

 

$

1,754

 

$

1,523

 

$

1,618

 

Average assets during the period

$

1,798

 

 

$

1,757

 

$

1,623

 

$

1,589

 

$

1,765

 

 

 

 

 

 

 

 

Alternatives

 

 

 

 

 

 

Beginning of period assets

$

306

 

 

$

310

 

$

306

 

$

305

 

$

293

 

Inflows/(outflows)

 

22

 

 

 

(18

)

 

12

 

 

16

 

 

34

 

Market appreciation/(depreciation)

 

12

 

 

 

14

 

 

(8

)

 

(15

)

 

(22

)

End of period assets

$

340

 

 

$

306

 

$

310

 

$

306

 

$

305

 

Average assets during the period

$

320

 

 

$

308

 

$

305

 

$

313

 

$

299

 

 

 

 

 

 

 

 

Cryptocurrency

 

 

 

 

 

 

Beginning of period assets

$

239

 

 

$

136

 

$

163

 

$

151

 

$

383

 

(Outflows)/inflows

 

(1

)

 

 

13

 

 

(4

)

 

—

 

 

3

 

Market appreciation/(depreciation)

 

10

 

 

 

90

 

 

(23

)

 

12

 

 

(235

)

End of period assets

$

248

 

 

$

239

 

$

136

 

$

163

 

$

151

 

Average assets during the period

$

236

 

 

$

190

 

$

152

 

$

178

 

$

265

 

 

 

 

 

 

 

 

Closed ETPs

 

 

 

 

 

 

Beginning of period assets

$

—

 

 

$

—

 

$

—

 

$

—

 

$

4

 

Fund closures

$

—

 

 

$

—

 

$

—

 

$

—

 

$

(4

)

End of period assets

$

—

 

 

$

—

 

$

—

 

$

—

 

$

—

 

Average assets during the period

 

—

 

 

 

—

 

 

—

 

 

—

 

 

4

 

 

 

 

 

 

 

 

Headcount

 

291

 

279

 

273

 

274

264
 

Note: Previously issued statistics may be restated due to fund closures and trade adjustments

Source: WisdomTree
 

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)
   

 

June 30,

2023

  

Dec. 31,

2022

 

(Unaudited)

  

 

ASSETS

 

  

 

Current assets:

 

  

 

Cash and cash equivalents

$

83,735

 

  

$

132,101

 

Financial instruments owned, at fair value

 

65,492

 

  

 

126,239

 

Accounts receivable

 

34,208

 

  

 

30,549

 

Prepaid expenses

 

8,161

 

  

 

4,684

 

Income taxes receivable

 

894

 

  

 

—

 

Other current assets

 

376

 

  

 

390

 

Total current assets

 

192,866

 

  

 

293,963

 

Fixed assets, net

 

487

 

  

 

544

 

Indemnification receivable

 

—

 

  

 

1,353

 

Securities held-to-maturity

 

245

 

  

 

259

 

Deferred tax assets, net

 

7,626

 

  

 

10,536

 

Investments

 

40,002

 

  

 

35,721

 

Right of use assets—operating leases

 

849

 

  

 

1,449

 

Goodwill

 

86,841

 

  

 

85,856

 

Intangible assets, net

 

604,407

 

  

 

603,567

 

Other noncurrent assets

 

454

 

  

 

571

 

Total assets

$

933,777

 

  

$

1,033,819

 

 

 

  

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

  

 

LIABILITIES

 

  

 

Current liabilities:

 

  

 

Fund management and administration payable

$

30,635

 

  

$

36,521

 

Compensation and benefits payable

 

17,800

 

  

 

24,121

 

Operating lease liabilities

 

849

 

  

 

1,125

 

Convertible notes—current

 

—

 

  

 

59,197

 

Deferred consideration—gold payments

 

—

 

  

 

16,796

 

Income taxes payable

 

—

 

  

 

1,599

 

Accounts payable and other liabilities

 

18,997

 

  

 

9,075

 

Total current liabilities

 

68,281

 

  

 

148,434

 

Convertible notes—long term

 

274,140

 

  

 

262,019

 

Deferred consideration—gold payments

 

—

 

  

 

183,494

 

Operating lease liabilities

 

—

 

  

 

339

 

Other noncurrent liabilities

 

—

 

  

 

1,353

 

Total liabilities

 

342,421

 

  

 

595,639

 

Preferred stock:

 

  

 

Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding

 

132,569

 

  

 

132,569

 

STOCKHOLDERS’ EQUITY

 

  

Preferred stock:

 

  

 

Series C Non-Voting Convertible, par value $0.01; 13.087 shares authorized, issued and

outstanding

 

—

 

  

 

—

 

Common stock, par value $0.01; 400,000 shares authorized:

 

  

 

Issued and outstanding: 150,343 and 146,517 at June 30, 2023 and December 31, 2022, respectively

 

1,503

 

  

 

1,465

 

Additional paid-in capital

 

383,621

 

  

 

291,847

 

Accumulated other comprehensive loss

 

(693

)

  

 

(1,420

)

Retained earnings

 

74,356

 

  

 

13,719

 

Total stockholders’ equity

 

458,787

 

  

 

305,611

 

Total liabilities and stockholders’ equity

$

933,777

 

  

$

1,033,819

 

 

 

  

 

Contacts

Investor Relations

Jeremy Campbell

+1.646.522.2602

Jeremy.campbell@wisdomtree.com

Media Relations
Jessica Zaloom

+1.917.267.3735

jzaloom@wisdomtree.com

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