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Mar 31, 2023

Lazard Q1 2023 Earnings Report

Lazard reported a net loss of $22 million and operating revenue of $527 million.

Key Takeaways

Lazard Ltd reported a challenging first quarter of 2023, marked by economic uncertainty and market turmoil, particularly in the financial sector. The company's net loss was $22 million, or $0.27 per share, diluted. Operating revenue for the quarter was $527 million, a 25% decrease compared to the first quarter of 2022. The company is implementing cost-saving initiatives to improve profitability.

First-quarter operating revenue was $527 million.

Net loss, as adjusted, was $23 million, or $0.26 per share, diluted.

Asset Management had a solid start to the year.

Slower M&A activity resulted in significantly lower revenues.

Total Revenue
$527M
Previous year: $699M
-24.6%
EPS
-$0.26
Previous year: $1.05
-124.8%
Assets Under Management
$232B
Compensation Ratio
75.7%
Gross Profit
$92.5M
Previous year: $298M
-69.0%
Cash and Equivalents
$597M
Previous year: $878M
-32.0%
Free Cash Flow
-$416M
Previous year: -$227M
+83.2%
Total Assets
$4.57B
Previous year: $6.85B
-33.3%

Lazard

Lazard

Lazard Revenue by Segment

Forward Guidance

Lazard is implementing cost-saving initiatives which are expected to result in the reduction of approximately 10% of their workforce over the course of 2023. The company expects their awarded compensation ratio for the full-year 2023 to be in the mid-60s percentage range.

Challenges Ahead

  • Economic uncertainty
  • Market turmoil
  • Slower M&A activity
  • Significantly lower revenues
  • Uncertain outlook for the year

Revenue & Expenses

Visualization of income flow from segment revenue to net income