Yahoo Finance

• Revenue: Increased 6% compared to the September quarter and up 19% compared to the prior year fourth quarter.

• Adjusted Operating Income: Up 12% sequentially and 37% compared to the same quarter last year.

• Adjusted Operating Margin: Improved by 180 basis points.

• Assets Under Management (AUM): Ended the December quarter at $161 billion, down 4% from last quarter and up 7% from the end of 2023.

• Net Client Cash Outflows: Approximately $800 million for the December quarter; full year outflows improved slightly to $3.7 billion.

• Performance Fees: Approximately $17 million for the quarter, with $12 million earned in the fourth quarter.

• Weighted Average Recurring Fee Rate: 68 basis points, excluding performance fees; 72 basis points inclusive of performance fees.

• Adjusted Net Income Per Adjusted Share: Improved 14% compared to last quarter and 35% compared to December 2023 quarter.

• Dividends: Quarterly dividend of $0.84 per share and an additional $0.50 for the year-end special dividend; total dividends declared for 2024 were $3.48 per share, a 25% increase from 2023.

• Long-term Incentive Award for 2025: Approximately $66 million, with 85% awarded to investment talent.

• Warning! GuruFocus has detected 6 Warning Signs with APAM.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Artisan Partners Asset Management Inc (NYSE:APAM) celebrated its 30th anniversary, highlighting its long-term commitment to a high-value investment approach.

• The company has expanded its investment platform significantly, now managing 25 strategies across various asset classes, including equities, fixed income, and alternatives.

• In 2024, 13 out of 25 investment strategies achieved net inflows, with 10 strategies exceeding $100 million in net inflows.

• The Denver-based credit team and the Boston-based MSCIs Capital Group collectively raised $3.6 billion in 2024, showcasing strong growth in their credit-oriented franchises.

• The company reported a 6% increase in revenues and a 12% rise in adjusted operating income for the fourth quarter, reflecting a robust financial performance.

Negative Points

• Assets under management decreased by 4% from the previous quarter, ending at $161 billion.

• Net client cash outflows during the December quarter were approximately $800 million, including a significant outflow from a client rebalance.

• The weighted average recurring fee rate decreased to 68 basis points, reflecting a growing portion of assets in lower-fee fixed income strategies.

• Adjusted operating expenses increased by 11% compared to the same quarter last year, driven by higher incentive compensation expenses.

• The company anticipates a mid to low single-digit increase in fixed expenses for 2025, primarily due to merit increases and the full impact of new hires.