Yahoo Finance

• Total Client Assets: $176.1 billion, up $9.5 billion or 6% from the end of last year.

• Revenue: $232.4 million for Q4, highest quarterly revenue in history; $893 million for the full year, a 9% increase from 2023.

• Adjusted Earnings Per Diluted Share: $1.45 for Q4, up 26% from $1.15 in last year's Q4; $5.36 for the full year, up 19% from $4.51 in 2023.

• Adjusted EBITDA: $126 million for Q4, a new quarterly record.

• Adjusted EBITDA Margin: 54%, a new quarterly record.

• GAAP Operating Income: $111.7 million for Q4, up 29% from the same quarter last year.

• GAAP Earnings Per Diluted Share: $1.17 for Q4; $4.38 for the full year, up more than 40% from $3.12 in 2023.

• Adjusted Net Income with Tax Benefit: $95.1 million for Q4, up 24% from last year's Q4; $353.1 million for the full year, up 15% from the prior year.

• Cash Balance: $127 million at year-end.

• Shareholder Returns: $132.4 million returned in Q4 through share repurchases and dividends.

• Dividend Increase: 7% increase, raising the quarterly dividend to $0.47 per share.

• Cash Flow from Operations: $92 million for Q4.

• Net Leverage Ratio: 1.7 times, unchanged from Q3.

• ETF AUM: Close to $12 billion, up from less than $200 million in 2015.

• Warning! GuruFocus has detected 4 Warning Sign with VCTR.

Release Date: February 07, 2025

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

Positive Points

• Victory Capital Holdings Inc (NASDAQ:VCTR) achieved record revenue for both the fourth quarter and full year 2024, driven by strong sales of high-margin ETFs.

• The company reported a 26% increase in adjusted earnings per diluted share for the fourth quarter, reaching a record high of $1.45.

• Victory Capital Holdings Inc (NASDAQ:VCTR) is on track to close its acquisition of Amundi by the end of the quarter, with anticipated $100 million in cost synergies.

• The company's ETF platform, VictoryShares, saw significant growth, with assets under management increasing to nearly $12 billion.

• Victory Capital Holdings Inc (NASDAQ:VCTR) announced a 7% increase in its quarterly cash dividend, reflecting confidence in its financial performance.

Negative Points

• Despite improvements, long-term net flows have not yet reached the full potential of Victory Capital Holdings Inc (NASDAQ:VCTR).

• Total client assets declined by just under 3% during the fourth quarter, primarily due to market actions.

• The company incurred $2.8 million in acquisition-related expenses in the fourth quarter, impacting overall expenses.

• Sycamore, one of Victory Capital Holdings Inc (NASDAQ:VCTR)'s larger franchises, experienced some outflows, although the company remains confident in its long-term performance.

• The integration of Amundi's products into Victory Capital Holdings Inc (NASDAQ:VCTR)'s distribution network will take time, with significant benefits expected only by the end of 2025 and into 2026.