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Mar 31, 2020
WisdomTree Investments Inc Q1 2020 Earnings Report
WisdomTree Investments Inc. reported a net loss and a decrease in AUM due to market declines, but operating with resilience and cost management.
Key Takeaways
WisdomTree Investments Inc. reported a net loss of $8.6 million, or adjusted net income of $11.21 million, for Q1 2020. The company's AUM decreased by 20.9% to $50.3 billion due to market declines, with operating revenues down 7.3% to $63.9 million. Despite these challenges, WisdomTree managed costs and maintained a gross margin of 77.3%.
Reported a net loss of $8.6 million, or adjusted net income of $11.21 million.
Ending AUM decreased by 20.9% to $50.3 billion due to market declines.
Operating revenues decreased by 7.3% to $63.9 million.
Maintained a gross margin of 77.3%.
Forward Guidance
The company remains focused on its 2020 plan of growth, performance, and innovation despite market disruptions.
Positive Outlook
- Investments in technology enabled seamless operations during unprecedented circumstances.
- Resilient business model ensured no compromise to operational excellence and client service.
- Committed to helping clients navigate markets and manage businesses.
- Responsibly managing costs and remaining differentiated and confident.
- Focused on 2020 plan of growth, performance, and innovation.
Challenges Ahead
- Market declines have impacted the business.
- March disrupted the strong momentum built in the business.
- Experienced a recent decline in revenue arising from volatility.
- Net outflows driven by international developed market equity and U.S. equity products.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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