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Mar 31, 2024
Victory Capital Q1 2024 Earnings Report
Victory Capital reported strong results in the first quarter of 2024, driven by improved long-term flows and excellent investment performance.
Key Takeaways
Victory Capital reported strong Q1 2024 results, with revenue increasing by 7.2% year-over-year to $215.9 million. GAAP net income increased by 13.0% to $55.7 million, or $0.84 per diluted share. Adjusted EBITDA increased by 13.3% to $112.4 million. Total client assets reached $175.5 billion and total AUM reached $170.3 billion.
Total client assets reached $175.5 billion.
Long-term gross flows were $7.0 billion.
GAAP operating margin was 39.3%.
Adjusted EBITDA margin was 52.1%.
Forward Guidance
Victory Capital is working toward a definitive agreement with Amundi by the end of June to combine Amundi US into their Company and establish 15-year global and reciprocal distribution agreements.
Positive Outlook
- Strategic transaction would combine Amundi US into Victory Capital.
- Establish 15-year global and reciprocal distribution agreements.
- Agreements would represent a significant enhancement in the globalization of Victory Capital.
- Projected to grow AUM
- Projected to grow revenue
Challenges Ahead
- Memorandum of Understanding is non-binding.
- There is no certainty that the negotiations will result in definitive agreements.
- There is no certainty that the currently contemplated terms will not change.
- Risks that the conditions to closing will be satisfied.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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