Mar 31, 2024

Silvercrest Q1 2024 Earnings Report

Silvercrest's financial performance was reported for Q1 2024, showing increased AUM and revenue, but decreased net income and adjusted EBITDA due to higher expenses.

Key Takeaways

Silvercrest Asset Management Group Inc. reported an increase in total AUM to $34.5 billion and revenue of $30.3 million for Q1 2024. However, net income and adjusted EBITDA decreased due to higher compensation expenses. The company's new business pipeline has more than doubled since Q4 2023, reaching $2.0 billion.

Total AUM reached $34.5 billion, including $22.7 billion in discretionary AUM and $11.8 billion in non-discretionary AUM.

Revenue increased to $30.3 million.

GAAP net income was $4.9 million, with net income attributable to Silvercrest at $3.0 million, or $0.32 per share.

Adjusted EBITDA was $7.5 million, and adjusted earnings per share were $0.33.

Total Revenue
$30.3M
Previous year: $29.4M
+2.9%
EPS
$0.33
Previous year: $0.35
-5.7%
Adjusted EBITDA
$7.45M
Previous year: $8.2M
-9.1%
Adjusted EBITDA Margin
24.6%
Previous year: 27.8%
-11.5%
Total AUM
$34.5B
Previous year: $29.9B
+15.4%
Gross Profit
$13M
Previous year: $12.9M
+0.5%
Cash and Equivalents
$39.7M
Previous year: $41.6M
-4.6%
Free Cash Flow
-$24.7M
Previous year: -$26.6M
-7.1%
Total Assets
$170M
Previous year: $179M
-4.7%

Silvercrest

Silvercrest

Forward Guidance

Silvercrest expects an uncertain economic and market environment, but has significant new business opportunities and initiatives underway. The firm is focused on new opportunities and investments to drive future growth, including value-added hires.

Positive Outlook

  • Supportive equity markets in Q1 2024 created a better business environment.
  • Silvercrest has more business opportunities and initiatives underway than ever before.
  • The firm is focused on new opportunities and investments to drive future growth.
  • A new team has been hired to expand international and global equity investment capabilities.
  • The pipeline of new institutional business opportunities has more than doubled since Q4 2023.

Challenges Ahead

  • An uncertain economic and market environment is expected.
  • Most business metrics are down due to higher expenses, primarily related to compensation.
  • Net client outflows were experienced during the quarter.
  • Consolidated net income decreased compared to the same period in the prior year.
  • Cash and cash equivalents decreased from the end of the previous year.