Artificial Intelligence
WisdomTree Announces First Quarter 2021 Results – Diluted Earnings Per Share of $0.09 ($0.08, as adjusted)
NEW YORK, April 30, 2021 (GLOBE NEWSWIRE) — WisdomTree Investments, Inc. (NASDAQ: WETF) today reported financial results for the first quarter of 2021.
$15.1 million net income ($12.51 million net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.
$2.7 million of non-cash items, including a gain on revaluation of deferred consideration – gold payments of $2.8 million and other non-operating gains and charges.
$69.5 billion of ending AUM, an increase of 3.2% arising from net inflows and market appreciation.
$1.3 billion of net inflows, driven by inflows into our emerging markets equity products.
0.42% average global advisory fee, an increase of 1 basis point due to AUM mix shift.
$72.8 million of operating revenues, an increase of 8.6% due to higher average AUM and a higher average global advisory fee.
78.7% gross margin1, a 3.1 point increase from the previous quarter.
25.5% operating income margin, a 6.3 point increase primarily due to higher revenues.
$0.03 quarterly dividend declared, payable on May 26, 2021 to stockholders of record as of the close of business on May 12, 2021.
Update from Jarrett Lilien, WisdomTree President and COO
“We continue to deliver on our plan to invest in growth and our people, as well as drive efficiencies in the business. Our first quarter results make clear that we are executing well on all fronts. We generated strong organic growth with $1.3 billion of net inflows this quarter, and our assets under management are at a new record of just under $73 billion. Our thematic products, including cloud computing, artificial intelligence, battery technology and cybersecurity, have been a success with strong inflows across both our U.S. and European platforms.
Overall, top-line growth led to one of our best all-around quarters, with strong revenues and expanding operating margins and net income. Our team remains focused and dedicated to exceptional execution. This, and the breadth and diversified mix of our business, gives us confidence that our momentum is sustainable.” |
Update from Jonathan Steinberg, WisdomTree CEO
“The takeaways from this quarter are simple: continued growth, momentum and strong execution. As I have said before, WisdomTree is operating with even greater speed, efficiency and inclusion in our new, remote-first orientation. Our results are clear evidence of this.
In the crypto asset space, we have been laser focused on execution. In March, we filed for the WisdomTree Bitcoin Trust with the SEC. Earlier this month, we cross-listed our European-domiciled WisdomTree Bitcoin ETP (BTCW) in Germany, appointed Coinbase Custody as a custodian and received approval to passport BTCW in the European Union (EU), allowing for a wider audience to access and invest in the product. Just yesterday, we launched a physically backed Ethereum ETP (ETHW) in Europe. Additionally, we’ve made advancements in our blockchain initiatives. In the U.S., we filed for the WisdomTree Digital Short-Term Treasury Fund with the SEC, leveraging Securrency’s technology. We also invested in Securrency’s Series B funding round, as we believe their team is uniquely suited to lead in blockchain-based fintech and regtech going forward. Our ongoing financial commitment reaffirms the strength of our support and partnership in shaping the future of financial services with Securrency and our fellow investors.” |
OPERATING AND FINANCIAL HIGHLIGHTS
Three Months Ended | |||||||||||||||
Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
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Consolidated Operating Highlights ($ in billions): | |||||||||||||||
AUM | $ | 69.5 | $ | 67.4 | $ | 60.7 | $ | 57.7 | $ | 50.3 | |||||
Net inflows/(outflows) | $ | 1.3 | $ | 0.9 | $ | (0.5 | ) | $ | 0.1 | $ | (0.5 | ) | |||
Average AUM | $ | 69.6 | $ | 64.1 | $ | 61.2 | $ | 55.7 | $ | 60.2 | |||||
Average advisory fee | 0.42 | % | 0.41 | % | 0.42 | % | 0.41 | % | 0.42 | % | |||||
Consolidated Financial Highlights ($ in millions, except per share amounts): | |||||||||||||||
Operating revenues | $ | 72.8 | $ | 67.1 | $ | 64.6 | $ | 58.1 | $ | 63.9 | |||||
Net income/(loss) | $ | 15.1 | $ | (13.5 | ) | $ | (0.3 | ) | $ | (13.3 | ) | $ | (8.6 | ) | |
Diluted earnings/(loss) per share | $ | 0.09 | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | (0.06 | ) | |
Operating income margin | 25.5 | % | 19.2 | % | 22.8 | % | 20.3 | % | 24.5 | % | |||||
As Adjusted (Non-GAAP1): | |||||||||||||||
Gross margin | 78.7 | % | 75.6 | % | 76.5 | % | 75.1 | % | 77.3 | % | |||||
Net income, as adjusted | $ | 12.5 | $ | 9.2 | $ | 11.0 | $ | 8.5 | $ | 11.2 | |||||
Diluted earnings per share, as adjusted | $ | 0.08 | $ | 0.06 | $ | 0.07 | $ | 0.05 | $ | 0.07 | |||||
Operating income margin, as adjusted | 25.5 | % | 19.2 | % | 22.8 | % | 20.4 | % | 25.1 | % |
RECENT BUSINESS DEVELOPMENTS
Company News
Product News
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WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended |
|||||||||||||||||||
Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
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Operating Revenues: | |||||||||||||||||||
Advisory fees | $ | 71,616 | $ | 66,105 | $ | 63,919 | $ | 57,208 | $ | 62,950 | |||||||||
Other income | 1,214 | 954 | 721 | 918 | 924 | ||||||||||||||
Total revenues | 72,830 | 67,059 | 64,640 | 58,126 | 63,874 | ||||||||||||||
Operating Expenses: | |||||||||||||||||||
Compensation and benefits | 22,627 | 20,827 | 19,098 | 17,455 | 17,295 | ||||||||||||||
Fund management and administration | 15,521 | 16,350 | 15,219 | 14,461 | 14,485 | ||||||||||||||
Marketing and advertising | 3,006 | 3,715 | 2,996 | 1,949 | 2,468 | ||||||||||||||
Sales and business development | 2,145 | 2,595 | 2,386 | 2,181 | 3,417 | ||||||||||||||
Contractual gold payments | 4,270 | 4,449 | 4,539 | 4,063 | 3,760 | ||||||||||||||
Professional fees | 2,013 | 1,322 | 950 | 1,357 | 1,273 | ||||||||||||||
Occupancy, communications and equipment | 1,475 | 1,622 | 1,611 | 1,643 | 1,551 | ||||||||||||||
Depreciation and amortization | 252 | 261 | 253 | 251 | 256 | ||||||||||||||
Third-party distribution fees | 1,343 | 1,291 | 1,233 | 1,340 | 1,355 | ||||||||||||||
Acquisition and disposition-related costs | — | — | — | 33 | 383 | ||||||||||||||
Other | 1,571 | 1,720 | 1,611 | 1,596 | 1,997 | ||||||||||||||
Total operating expenses | 54,223 | 54,152 | 49,896 | 46,329 | 48,240 | ||||||||||||||
Operating income | 18,607 | 12,907 | 14,744 | 11,797 | 15,634 | ||||||||||||||
Other Income/(Expenses): | |||||||||||||||||||
Interest expense | (2,296 | ) | (2,694 | ) | (2,511 | ) | (2,044 | ) | (2,419 | ) | |||||||||
Gain/(loss) on revaluation of deferred consideration – gold payments | 2,832 | (22,385 | ) | (8,870 | ) | (23,358 | ) | (2,208 | ) | ||||||||||
Interest income | 231 | 351 | 111 | 119 | 163 | ||||||||||||||
Impairments | (303 | ) | — | (3,080 | ) | — | (19,672 | ) | |||||||||||
Loss on extinguishment of debt | — | — | — | (2,387 | ) | — | |||||||||||||
Other gains and losses, net | (5,893 | ) | 524 | 744 | 1,819 | (2,507 | ) | ||||||||||||
Income/(loss) before income taxes | 13,178 | (11,297 | ) | 1,138 | (14,054 | ) | (11,009 | ) | |||||||||||
Income tax (benefit)/expense | (1,969 | ) | 2,200 | 1,408 | (804 | ) | (2,371 | ) | |||||||||||
Net income/(loss) | $ | 15,147 | $ | (13,497 | ) | $ | (270 | ) | $ | (13,250 | ) | $ | (8,638 | ) | |||||
Earnings/(loss) per share – basic | $0.092 | ($0.10)2 | ($0.01)2 | ($0.09) | ($0.06) | ||||||||||||||
Earnings/(loss) per share – diluted | $0.09 | ($0.10)2 | ($0.01)2 | ($0.09) | ($0.06) | ||||||||||||||
Weighted average common shares – basic | 145,649 | 145,096 | 145,564 | 151,623 | 152,519 | ||||||||||||||
Weighted average common shares – diluted | 161,831 | 145,096 | 145,564 | 151,623 | 152,519 | ||||||||||||||
As Adjusted (Non-GAAP1) | |||||||||||||||||||
Total operating expenses | $ | 54,223 | $ | 54,152 | $ | 49,896 | $ | 46,296 | $ | 47,857 | |||||||||
Operating income | $ | 18,607 | $ | 12,907 | $ | 14,744 | $ | 11,830 | $ | 16,017 | |||||||||
Income before income taxes | $ | 15,583 | $ | 11,504 | $ | 13,242 | $ | 10,911 | $ | 14,358 | |||||||||
Income tax expense | $ | 3,079 | $ | 2,281 | $ | 2,205 | $ | 2,417 | $ | 3,134 | |||||||||
Net income | $ | 12,504 | $ | 9,223 | $ | 11,037 | $ | 8,494 | $ | 11,224 | |||||||||
Earnings per share – diluted | $ | 0.08 | $ | 0.06 | $ | 0.07 | $ | 0.05 | $ | 0.07 |
QUARTERLY HIGHLIGHTS
Operating Revenues
- Operating revenues increased 8.6% and 14.0% from the fourth quarter of 2020 and first quarter of 2020, respectively, due to higher average global AUM arising from market appreciation and net inflows.
- Our average global advisory fee was 0.42%, 0.41% and 0.42% during the first quarter of 2021, the fourth quarter of 2020 and the first quarter of 2020, respectively.
Operating Expenses
- Operating expenses were essentially unchanged from the fourth quarter of 2020. Higher compensation, due to seasonal payroll taxes, and higher professional fees from our digital assets initiative, were offset by lower fund management and administration costs as the prior quarter included costs arising from Brexit and fund rebalances, as well as lower marketing and sales and business development expenses.
- Operating expenses increased 12.4% from the first quarter of 2020 due to higher incentive compensation, fund management and administration costs, professional fees, contractual gold payments and marketing expenses, partly offset by lower sales and business development and other expenses.
Other Income/(Expenses)
- Interest expense declined 14.8% from the fourth quarter of 2020 upon the early adoption of a new accounting standard applicable to our convertible notes, which became effective January 1, 2021 and eliminated the requirement to bifurcate certain conversion options embedded in convertible instruments. Previously, the discount arising from bifurcation was amortized as interest expense over the life of the instrument. Interest expense declined 5.1% from the first quarter of 2020 primarily due to lower levels of debt outstanding.
- We recognized a non-cash gain on revaluation of deferred consideration of $2.8 million during the first quarter of 2021. The gain was due to a decline in spot gold prices, partly offset by a steepening of the forward-looking gold curve. The magnitude of any gain or loss recognized is highly correlated to the magnitude of the change in the forward-looking price of gold.
- During the quarter, we recognized an impairment charge of $0.3 million upon exiting our London office.
- Other net losses were $5.9 million for the quarter. The quarter includes the release of a tax-related indemnification asset of $5.2 million upon the expiration of the statute of limitations related to our acquisition of ETFS in 2018. An equal and offsetting benefit has been recognized in income tax expense. The quarter also includes an unrealized gain of $0.2 million recognized on our investment in Securrency due to its recent capital raise. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations, securities owned and other miscellaneous items.
Income Taxes
- We recorded an income tax benefit of $2.0 million in the quarter primarily due to the release of the tax-related indemnification asset described above, a non-taxable gain on revaluation of deferred consideration and a lower tax rate on foreign earnings, partly offset by tax shortfalls associated with the vesting and exercise of stock-based compensation awards.
- Our adjusted effective income tax rate was 19.8%1.
CONFERENCE CALL
WisdomTree will discuss its results and operational highlights during a conference call on Friday, April 30, 2021 at 9:00 a.m. ET. The call-in number is (877) 303-7209. Anyone outside the U.S. or Canada should call (970) 315-0420. The slides used during the presentation will be available at http://ir.wisdomtree.com. For those unable to join the conference call at the scheduled time, an audio replay will be available on http://ir.wisdomtree.com.
ABOUT WISDOMTREE
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an ETF and ETP sponsor and asset manager headquartered in New York. WisdomTree offers products covering equity, commodity, fixed income, leveraged and inverse, currency and alternative strategies. WisdomTree currently has approximately $72.9 billion in assets under management globally.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
1 | See “Non-GAAP Financial Measurements.” | |
2 | Earnings/(loss) per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. |
Contact Information:
Corporate Communications
Jessica Zaloom
+1.917.267.3735
[email protected]
WisdomTree Investments, Inc. Key Operating Statistics (Unaudited) |
Three Months Ended | ||||||||||||||||||
Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
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GLOBAL ETPs ($ in millions) | |||||||||||||||||||
Beginning of period assets | $ | 67,392 | $ | 60,710 | $ | 57,666 | $ | 50,347 | $ | 63,615 | |||||||||
Assets sold | — | — | — | — | (778 | ) | |||||||||||||
Inflows/(outflows) | 1,279 | 881 | (477 | ) | 126 | (536 | ) | ||||||||||||
Market appreciation/(depreciation) | 866 | 5,898 | 3,567 | 7,489 | (11,934 | ) | |||||||||||||
Fund closures | — | (97 | ) | (46 | ) | (296 | ) | (20 | ) | ||||||||||
End of period assets | $ | 69,537 | $ | 67,392 | $ | 60,710 | $ | 57,666 | $ | 50,347 | |||||||||
Average assets during the period | $ | 69,552 | $ | 64,125 | $ | 61,216 | $ | 55,708 | $ | 60,189 | |||||||||
Average advisory fee during the period | 0.42 | % | 0.41 | % | 0.42 | % | 0.41 | % | 0.42 | % | |||||||||
Revenue days | 90 | 92 | 92 | 91 | 91 | ||||||||||||||
Number of ETFs – end of the period | 313 | 309 | 305 | 311 | 331 | ||||||||||||||
U.S. LISTED ETFs ($ in millions) | |||||||||||||||||||
Beginning of period assets | $ | 38,517 | $ | 33,310 | $ | 31,362 | $ | 28,920 | $ | 40,600 | |||||||||
Inflows/(outflows) | 1,343 | 919 | 575 | (1,474 | ) | (1,273 | ) | ||||||||||||
Market appreciation/(depreciation) | 2,303 | 4,385 | 1,373 | 4,030 | (10,397 | ) | |||||||||||||
Fund closures | — | (97 | ) | — | (114 | ) | (10 | ) | |||||||||||
End of period assets | $ | 42,163 | $ | 38,517 | $ | 33,310 | $ | 31,362 | $ | 28,920 | |||||||||
Average assets during the period | $ | 40,673 | $ | 36,002 | $ | 32,984 | $ | 30,626 | $ | 36,940 | |||||||||
Average advisory fee during the period | 0.40 | % | 0.40 | % | 0.41 | % | 0.41 | % | 0.43 | % | |||||||||
Number of ETFs – end of the period | 68 | 67 | 67 | 67 | 77 | ||||||||||||||
INTERNATIONAL LISTED ETPs ($ in millions) | |||||||||||||||||||
Beginning of period assets | $ | 28,875 | $ | 27,400 | $ | 26,304 | $ | 21,427 | $ | 23,015 | |||||||||
Assets sold | — | — | — | — | (778 | ) | |||||||||||||
Inflows/(outflows) | (64 | ) | (38 | ) | (1,052 | ) | 1,600 | 737 | |||||||||||
Market appreciation/(depreciation) | (1,437 | ) | 1,513 | 2,194 | 3,459 | (1,537 | ) | ||||||||||||
Fund closures | — | — | (46 | ) | (182 | ) | (10 | ) | |||||||||||
End of period assets | $ | 27,374 | $ | 28,875 | $ | 27,400 | $ | 26,304 | $ | 21,427 | |||||||||
Average assets during the period | $ | 28,879 | $ | 28,123 | $ | 28,232 | $ | 25,082 | $ | 23,249 | |||||||||
Average advisory fee during the period | 0.44 | % | 0.42 | % | 0.42 | % | 0.41 | % | 0.40 | % | |||||||||
Number of ETPs – end of the period | 245 | 242 | 238 | 244 | 254 | ||||||||||||||
PRODUCT CATEGORIES ($ in millions) | |||||||||||||||||||
Commodity & Currency | |||||||||||||||||||
Beginning of period assets | $ | 26,047 | $ | 25,122 | $ | 24,191 | $ | 19,748 | $ | 19,947 | |||||||||
Inflows/(outflows) | (624 | ) | (254 | ) | (1,106 | ) | 1,325 | 622 | |||||||||||
Market appreciation/(depreciation) | (1,389 | ) | 1,179 | 2,037 | 3,118 | (821 | ) | ||||||||||||
End of period assets | $ | 24,034 | $ | 26,047 | $ | 25,122 | $ | 24,191 | $ | 19,748 | |||||||||
Average assets during the period | $ | 25,555 | $ | 25,676 | $ | 25,878 | $ | 22,964 | $ | 20,302 | |||||||||
U.S. Equity | |||||||||||||||||||
Beginning of period assets | $ | 18,367 | $ | 15,612 | $ | 13,997 | $ | 12,151 | $ | 17,732 | |||||||||
Inflows/(outflows) | 218 | 395 | 897 | (241 | ) | (285 | ) | ||||||||||||
Market appreciation/(depreciation) | 1,434 | 2,360 | 718 | 2,087 | (5,296 | ) | |||||||||||||
End of period assets | $ | 20,019 | $ | 18,367 | $ | 15,612 | $ | 13,997 | $ | 12,151 | |||||||||
Average assets during the period | $ | 19,293 | $ | 17,050 | $ | 15,141 | $ | 13,302 | $ | 16,011 | |||||||||
Emerging Market Equity | |||||||||||||||||||
Beginning of period assets | $ | 8,539 | $ | 5,979 | $ | 5,413 | $ | 4,600 | $ | 6,400 | |||||||||
Inflows/(outflows) | 1,662 | 1,399 | 257 | (25 | ) | 69 | |||||||||||||
Market appreciation/(depreciation) | 276 | 1,161 | 309 | 838 | (1,869 | ) | |||||||||||||
End of period assets | $ | 10,477 | $ | 8,539 | $ | 5,979 | $ | 5,413 | $ | 4,600 | |||||||||
Average assets during the period | $ | 9,871 | $ | 7,249 | $ | 5,917 | $ | 5,129 | $ | 5,919 | |||||||||
Three Months Ended |
|||||||||||||||||||
Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
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International Developed Market Equity | |||||||||||||||||||
Beginning of period assets | $ | 9,414 | $ | 8,621 | $ | 8,839 | $ | 8,659 | $ | 13,011 | |||||||||
Inflows/(outflows) | 17 | (191 | ) | (587 | ) | (965 | ) | (1,097 | ) | ||||||||||
Market appreciation/(depreciation) | 560 | 984 | 369 | 1,145 | (3,255 | ) | |||||||||||||
End of period assets | $ | 9,991 | $ | 9,414 | $ | 8,621 | $ | 8,839 | $ | 8,659 | |||||||||
Average assets during the period | $ | 9,793 | $ | 8,930 | $ | 8,835 | $ | 8,779 | $ | 11,453 | |||||||||
Fixed Income | |||||||||||||||||||
Beginning of period assets | $ | 3,324 | $ | 3,630 | $ | 3,530 | $ | 3,527 | $ | 3,585 | |||||||||
Inflows/(outflows) | 10 | (330 | ) | 76 | (53 | ) | 21 | ||||||||||||
Market appreciation/(depreciation) | (73 | ) | 24 | 24 | 56 | (79 | ) | ||||||||||||
End of period assets | $ | 3,261 | $ | 3,324 | $ | 3,630 | $ | 3,530 | $ | 3,527 | |||||||||
Average assets during the period | $ | 3,253 | $ | 3,472 | $ | 3,605 | $ | 3,523 | $ | 3,653 | |||||||||
Leveraged & Inverse | |||||||||||||||||||
Beginning of period assets | $ | 1,487 | $ | 1,430 | $ | 1,350 | $ | 896 | $ | 1,138 | |||||||||
Inflows/(outflows) | (4 | ) | (118 | ) | (9 | ) | 312 | 12 | |||||||||||
Market appreciation/(depreciation) | 45 | 175 | 89 | 142 | (254 | ) | |||||||||||||
End of period assets | $ | 1,528 | $ | 1,487 | $ | 1,430 | $ | 1,350 | $ | 896 | |||||||||
Average assets during the period | $ | 1,564 | $ | 1,436 | $ | 1,482 | $ | 1,169 | $ | 1,147 | |||||||||
Alternatives | |||||||||||||||||||
Beginning of period assets | $ | 214 | $ | 229 | $ | 225 | $ | 244 | $ | 358 | |||||||||
Inflows/(outflows) | — | (26 | ) | (4 | ) | (29 | ) | (66 | ) | ||||||||||
Market appreciation/(depreciation) | 13 | 11 | 8 | 10 | (48 | ) | |||||||||||||
End of period assets | $ | 227 | $ | 214 | $ | 229 | $ | 225 | $ | 244 | |||||||||
Average assets during the period | $ | 223 | $ | 224 | $ | 226 | $ | 226 | $ | 328 | |||||||||
Closed ETPs | |||||||||||||||||||
Beginning of period assets | $ | — | $ | 87 | $ | 121 | $ | 522 | $ | 1,444 | |||||||||
Assets sold | — | — | — | — | (778 | ) | |||||||||||||
Inflows/(outflows) | — | 6 | (1 | ) | (198 | ) | 188 | ||||||||||||
Market appreciation/(depreciation) | — | 4 | 13 | 93 | (312 | ) | |||||||||||||
Fund closures . | — | (97 | ) | (46 | ) | (296 | ) | (20 | ) | ||||||||||
End of period assets | $ | — | $ | — | $ | 87 | $ | 121 | $ | 522 | |||||||||
Average assets during the period | $ | — | $ | 88 | $ | 132 | $ | 616 | $ | 1,376 | |||||||||
Headcount | 227 | 217 | 211 | 214 | 210 |
Note: Previously issued statistics may be restated due to fund closures and trade adjustments
Source: WisdomTree
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
Mar. 31, 2021 |
Dec. 31, 2020 |
||||||
(Unaudited) |
|||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 62,302 | $ | 73,425 | |||
Securities owned, at fair value | 34,771 | 34,895 | |||||
Accounts receivable | 30,341 | 29,455 | |||||
Income taxes receivable | 126 | — | |||||
Prepaid expenses | 4,187 | 3,827 | |||||
Other current assets | 237 | 259 | |||||
Total current assets | 131,964 | 141,861 | |||||
Fixed assets, net | 7,432 | 7,579 | |||||
Securities held-to-maturity | 411 | 451 | |||||
Deferred tax assets, net | 6,215 | 8,063 | |||||
Investments | 13,849 | 8,112 | |||||
Right of use assets – operating leases | 15,841 | 16,327 | |||||
Goodwill | 85,856 | 85,856 | |||||
Intangible assets | 601,247 | 601,247 | |||||
Other noncurrent assets | 180 | 180 | |||||
Total assets | $ | 862,995 | $ | 869,676 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
LIABILITIES | |||||||
Current liabilities: | |||||||
Fund management and administration payable | $ | 17,980 | $ | 19,564 | |||
Compensation and benefits payable | 8,568 | 22,803 | |||||
Deferred consideration – gold payments | 15,637 | 17,374 | |||||
Operating lease liabilities | 2,958 | 3,135 | |||||
Income taxes payable | — | 916 | |||||
Accounts payable and other liabilities | 11,415 | 10,207 | |||||
Total current liabilities | 56,558 | 73,999 | |||||
Convertible notes | 171,163 | 166,646 | |||||
Deferred consideration – gold payments | 211,509 | 212,763 | |||||
Operating lease liabilities | 17,012 | 17,434 | |||||
Total liabilities | 456,242 | 470,842 | |||||
Preferred stock – Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding | 132,569 | 132,569 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Common stock, par value $0.01; 250,000 shares authorized: | |||||||
Issued and outstanding: 149,811 and 148,716 at March 31, 2021 and December 31, 2020, respectively . | 1,498 | 1,487 | |||||
Additional paid-in capital | 314,274 | 317,075 | |||||
Accumulated other comprehensive income | 985 | 1,102 | |||||
Accumulated deficit . | (42,573 | ) | (53,399 | ) | |||
Total stockholders’ equity | 274,184 | 266,265 | |||||
Total liabilities and stockholders’ equity | $ | 862,995 | $ | 869,676 | |||
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended |
||||||||
Mar. 31, 2021 |
Mar. 31, 2020 |
|||||||
Cash flows from operating activities: | ||||||||
Net income/(loss) | $ | 15,147 | $ | (8,638 | ) | |||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||
Advisory fees received in gold, other precious metals and bitcoin | (19,757 | ) | (13,860 | ) | ||||
Contractual gold payments | 4,270 | 3,760 | ||||||
Stock-based compensation | 3,143 | 3,239 | ||||||
Deferred income taxes | 2,904 | 4,526 | ||||||
(Gain)/loss on revaluation of deferred consideration – gold payments . | (2,832 | ) | 2,208 | |||||
Amortization of right of use asset | 697 | 798 | ||||||
Amortization of issuance costs – convertible notes | 429 | — | ||||||
Impairments | 303 | 19,672 | ||||||
Depreciation and amortization | 252 | 256 | ||||||
Gain on sale – Canadian ETF business | — | (2,877 | ) | |||||
Amortization of issuance costs – former credit facility | — | 723 | ||||||
Other | (235 | ) | (31 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Securities owned, at fair value | 124 | (2,942 | ) | |||||
Accounts receivable | 290 | 5,850 | ||||||
Prepaid expenses | (362 | ) | (616 | ) | ||||
Gold, other precious metals and bitcoin | 14,166 | 9,838 | ||||||
Other assets | 5 | 139 | ||||||
Fund management and administration payable | (1,470 | ) | 537 | |||||
Compensation and benefits payable | (14,245 | ) | (22,688 | ) | ||||
Income taxes receivable/payable | (1,028 | ) | (2,032 | ) | ||||
Securities sold, but not yet purchased, at fair value | — | (112 | ) | |||||
Operating lease liabilities | (918 | ) | (926 | ) | ||||
Accounts payable and other liabilities | 982 | 542 | ||||||
Net cash provided by/(used in) operating activities | 1,865 | (2,634 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchase of investments | (5,500 | ) | — | |||||
Purchase of fixed assets | (103 | ) | (50 | ) | ||||
Proceeds from held-to-maturity securities maturing or called prior to maturity | 38 | 6,030 | ||||||
Proceeds from sale of Canadian ETF business, net | — | 2,774 | ||||||
Net cash (used in)/provided by investing activities | (5,565 | ) | 8,754 | |||||
Cash flows from financing activities: | ||||||||
Dividends paid | (4,937 | ) | (5,136 | ) | ||||
Shares repurchased | (2,630 | ) | (1,495 | ) | ||||
Repayment of debt | — | (5,000 | ) | |||||
Proceeds from exercise of stock options | 379 | 240 | ||||||
Net cash used in financing activities | (7,188 | ) | (11,391 | ) | ||||
Decrease in cash flows due to changes in foreign exchange rate | (235 | ) | (1,272 | ) | ||||
Decrease in cash and cash equivalents | (11,123 | ) | (6,543 | ) | ||||
Cash and cash equivalents – beginning of year | 73,425 | 74,972 | ||||||
Cash and cash equivalents – end of period | $ | 62,302 | $ | 68,429 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for taxes | $ | 1,278 | $ | 1,147 | ||||
Cash paid for interest | $ | — | $ | 2,312 | ||||
Non-GAAP Financial Measurements
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include:
- Adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share. We disclose adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measures provides investors with a consistent way to analyze our performance. These non-GAAP financial measures exclude the following:
- Unrealized gains or losses on the revaluation of deferred consideration: Deferred consideration is an obligation we assumed in connection with the ETFS acquisition that is carried at fair value. This item represents the present value of an obligation to pay fixed ounces of gold into perpetuity and is measured using forward-looking gold prices. Changes in the forward-looking price of gold and changes in the discount rate used to compute the present value of the annual payment obligations may have a material impact on the carrying value of the deferred consideration and our reported financial results. We exclude this item when calculating our non-GAAP financial measurements as it is not core to our operating business. The item is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary of ours that is based in Jersey, a jurisdiction where we are subject to a zero percent tax rate.
- Tax shortfalls and windfalls upon vesting and exercise of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting and exercise of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce volatility in earnings and are not core to our operating business.
- Other items: Impairment charges, an unrealized gain recognized on our investment in Securrency, interest expense from the amortization of discount arising from the bifurcation of the conversion option embedded in the convertible notes (prior to January 1, 2021, the effective date of Accounting Standards Update 2020-06, Debt – Debt with Conversion and Other Options, Cash Conversion), a loss on extinguishment of debt, the release of a deferred tax asset valuation allowance recognized on interest carryforwards arising from our debt previously outstanding in the United Kingdom, a gain arising from an adjustment to the estimated fair value of consideration received from the exit of our investment in AdvisorEngine, a gain recognized upon the sale of our Canadian ETF business and acquisition and disposition-related costs are excluded when calculating our non-GAAP financial measurements.
- Adjusted effective income tax rate. We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.
- Gross margin and gross margin percentage. We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues.
- Adjusted operating income margin. We disclose adjusted operating income margin as a non-GAAP financial measurement in order to report our operating income margin exclusive of items that are non-recurring or not core to our operating business.
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)
(in thousands)
(Unaudited)
Three Months Ended |
|||||||||||||||||||
Adjusted Net Income and Diluted Earnings per Share: | Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
||||||||||||||
Net income/(loss), as reported |
$ | 15,147 | $ | (13,497 | ) | $ | (270 | ) | $ | (13,250 | ) | $ | (8,638 | ) | |||||
Deduct/Add back: (Gain)/loss on revaluation of deferred consideration | (2,832 | ) | 22,385 | 8,870 | 23,358 | 2,208 | |||||||||||||
Deduct: Unrealized gain recognized on our investment in Securrency, net of income taxes | (179 | ) | — | — | — | — | |||||||||||||
Add back: Impairments, net of income taxes (where applicable) | 245 | — | 2,326 | — | 19,672 | ||||||||||||||
Add back: Tax shortfalls upon vesting and exercise of stock-based compensation awards | 123 | 21 | 50 | 119 | 501 | ||||||||||||||
Add back: Interest expense from the amortization of discount arising from the bifurcation of the conversion option embedded in the convertible notes, net of income taxes | — | 314 | 286 | 42 | — | ||||||||||||||
Deduct: Gain arising from an adjustment to the estimated fair value of consideration received from the exit of investment in AdvisorEngine | — | — | (225 | ) | (868 | ) | — | ||||||||||||
Add back: Loss on extinguishment of debt, net of income taxes | — | — | — | 1,910 | — | ||||||||||||||
Deduct: Release of a deferred tax asset valuation allowance recognized on interest carryforwards arising from debt previously outstanding in the United Kingdom | — | — | — | (2,842 | ) | — | |||||||||||||
Deduct: Gain recognized upon the sale of Canadian ETF business | — | — | — | — | (2,877 | ) | |||||||||||||
Add back: Acquisition and disposition-related costs, net of income taxes | — | — | — | 25 | 358 | ||||||||||||||
Adjusted net income | $ | 12,504 | $ | 9,223 | $ | 11,037 | $ | 8,494 | $ | 11,224 | |||||||||
Weighted average common shares – diluted | 161,831 | 161,138 | 160,876 | 166,634 | 167,561 | ||||||||||||||
Adjusted earnings per share – diluted | $ | 0.08 | $ | 0.06 | $ | 0.07 | $ | 0.05 | $ | 0.07 | |||||||||
Three Months Ended |
|||||||||||||||||||
Gross Margin and Gross Margin Percentage: | Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
||||||||||||||
Operating revenues | $ | 72,830 | $ | 67,059 | $ | 64,640 | $ | 58,126 | $ | 63,874 | |||||||||
Less: Fund management and administration | (15,521 | ) | (16,350 | ) | (15,219 | ) | (14,461 | ) | (14,485 | ) | |||||||||
Gross margin | $ | 57,309 | $ | 50,709 | $ | 49,421 | $ | 43,665 | $ | 49,389 | |||||||||
Gross margin percentage | 78.7 | % | 75.6 | % | 76.5 | % | 75.1 | % | 77.3 | % | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Income Margin: |
Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
||||||||||||||
Operating revenues | $ | 72,830 | $ | 67,059 | $ | 64,640 | $ | 58,126 | $ | 63,874 | |||||||||
Operating income | $ | 18,607 | $ | 12,907 | $ | 14,744 | $ | 11,797 | $ | 15,634 | |||||||||
Add back: Acquisition and disposition-related costs, before income taxes | — | — | — | 33 | 383 | ||||||||||||||
Adjusted operating income | $ | 18,607 | $ | 12,907 | $ | 14,744 | $ | 11,830 | $ | 16,017 | |||||||||
Adjusted operating income margin | 25.5 | % | 19.2 | % | 22.8 | % | 20.4 | % | 25.1 | % | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Total Operating Expenses: | Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
||||||||||||||
Total operating expenses | $ | 54,223 | $ | 54,152 | $ | 49,896 | $ | 46,329 | $ | 48,240 | |||||||||
Deduct: Acquisition and disposition-related costs, before income taxes | — | — | — | (33 | ) | (383 | ) | ||||||||||||
Adjusted total operating expenses | $ | 54,223 | $ | 54,152 | $ | 49,896 | $ | 46,296 | $ | 47,857 | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Income Before Income Taxes: | Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
||||||||||||||
Income/(loss) before income taxes | $ | 13,178 | $ | (11,297 | ) | $ | 1,138 | $ | (14,054 | ) | $ | (11,009 | ) | ||||||
Deduct/Add back: (Gain)/loss on revaluation of deferred consideration | (2,832 | ) | 22,385 | 8,870 | 23,358 | 2,208 | |||||||||||||
Add back: Loss recognized upon reduction of a tax-related indemnification asset | 5,171 | — | — | — | 5,981 | ||||||||||||||
Deduct: Unrealized gain recognized on our investment in Securrency, before income taxes | (237 | ) | — | — | — | — | |||||||||||||
Add back: Impairments, before income taxes | 303 | — | 3,080 | — | 19,672 | ||||||||||||||
Add back: Interest expense from the amortization of discount arising from the bifurcation of the conversion option embedded in the convertible notes, before income taxes | — | 416 | 379 | 55 | — | ||||||||||||||
Deduct: Gain arising from an adjustment to the estimated fair value of consideration received from the exit of investment in AdvisorEngine | — | — | (225 | ) | (868 | ) | — | ||||||||||||
Add back: Loss on extinguishment of debt, before income taxes | — | — | — | 2,387 | — | ||||||||||||||
Deduct: Gain recognized upon sale of Canadian ETF business | — | — | — | — | (2,877 | ) | |||||||||||||
Add back: Acquisition and disposition-related costs, before income taxes | — | — | — | 33 | 383 | ||||||||||||||
Adjusted income before income taxes | $ | 15,583 | $ | 11,504 | $ | 13,242 | $ | 10,911 | $ | 14,358 | |||||||||
Three Months Ended | |||||||||||||||||||
Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate: | Mar. 31, 2021 |
Dec. 31, 2020 |
Sept. 30, 2020 |
June 30, 2020 |
Mar. 31, 2020 |
||||||||||||||
Adjusted income before income taxes (above) | $ | 15,583 | $ | 11,504 | $ | 13,242 | $ | 10,911 | $ | 14,358 | |||||||||
Income tax (benefit)/expense | $ | (1,969 | ) | $ | 2,200 | $ | 1,408 | $ | (804 | ) | $ | (2,371 | ) | ||||||
Add back: Tax benefit arising from reduction of a tax-related indemnification asset | 5,171 | — | — | — | 5,981 | ||||||||||||||
Deduct: Tax shortfalls upon vesting and exercise of stock-based compensation awards | (123 | ) | (21 | ) | (50 | ) | (119 | ) | (501 | ) | |||||||||
Deduct: Tax expense on unrealized gain recognized on our investment in Securrency | (58 | ) | — | — | — | — | |||||||||||||
Add back: Tax benefit arising from impairments . | 58 | — | 754 | — | — | ||||||||||||||
Add back: Tax benefit arising from the amortization of discount associated with the bifurcation of the conversion option embedded in the convertible notes | — | 102 | 93 | 13 | — | ||||||||||||||
Add back: Tax benefit arising from loss on extinguishment of debt | — | — | — | 477 | — | ||||||||||||||
Add back: Release of a deferred tax asset valuation allowance recognized on interest carryforwards arising from debt previously outstanding in the United Kingdom | — | — | — | 2,842 | — | ||||||||||||||
Add back: Tax benefit arising from acquisition and disposition-related costs | — | — | — | 8 | 25 | ||||||||||||||
Adjusted income tax expense | $ | 3,079 | $ | 2,281 | $ | 2,205 | $ | 2,417 | $ | 3,134 | |||||||||
Adjusted effective income tax rate | 19.8 | % | 19.8 | % | 16.7 | % | 22.2 | % | 21.8 | % | |||||||||
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about
- the ultimate duration of the COVID-19 pandemic and its short-term and long-term impact on our business and the global economy;
- anticipated trends, conditions and investor sentiment in the global markets and ETPs;
- anticipated levels of inflows into and outflows out of our ETPs;
- our ability to deliver favorable rates of return to investors;
- competition in our business;
- our ability to develop new products and services;
- our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
- our ability to successfully operate and expand our business in non-U.S. markets; and
- the effect of laws and regulations that apply to our business.
Our business is subject to many risks and uncertainties, including without limitation:
- adverse market developments arising from the COVID-19 pandemic could negatively impact our assets under management, resulting in a decline in our revenues and other potential operational challenges;
- declining prices of securities, gold and other precious metals and other commodities can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions;
- fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, including but not limited to a pandemic event such as COVID-19, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity or, increase the cost of borrowing upon a refinancing;
- competitive pressures could reduce revenues and profit margins;
- we derive a substantial portion of our revenues from a limited number of products, and as a result, our operating results are particularly exposed to investor sentiment toward investing in the products’ strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk;
- a significant portion of our AUM is held in products with exposure to U.S. and international developed markets and we therefore have exposure to domestic and foreign market conditions and are subject to currency exchange rate risks;
- withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins;
- over the last few years, we have expanded our business internationally. This expansion subjects us to increased operational, regulatory, financial and other risks;
- many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline; and
- we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors.
Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
Artificial Intelligence
RepTrak Announces 2024 Global RepTrak® 100 Report
BOSTON, April 18, 2024 /PRNewswire/ — The RepTrak™ Company, the world’s leading reputation data and insights company, released its annual Global RepTrak 100 report. Utilizing its advanced reputation monitoring software, RepTrak gathered data from more than 243,000 survey responses across 14 major economies to rank the world’s 100 most reputable companies. They share that ranking alongside a full analysis of global corporate reputation trends and corresponding public sentiment in the 2024 report.
After two years of consecutive Reputation Score declines, this year’s Score is back up with an increase from 73.2 in 2023 to 73.8 in 2024. It’s a small increase after 2023’s full one-point drop. However, it’s an encouraging sign that companies have begun to recover from reputation falls driven by many challenges: macroeconomic issues, workplace difficulties, product problems, and corporate responsibility skepticism.
“This year’s report underscores a pivotal shift in the corporate landscape, spotlighting the remarkable adaptability and dedication of the Top 100 companies in responding to the dynamic needs of stakeholders,” states RepTrak CEO Mark Sonders. “The companies featured in our report are not just riding the wave of change; they are the ones steering it, proving that the best approach to business is one that embraces evolution and champions progress.”
RepTrak’s report explores how people thought, felt, and acted toward companies over the past year. Findings include notable increases in Conduct and Citizenship efforts, stakeholders’ rising willingness to invest, culturally resonant brand communications, and ESG Scores that soared despite skepticism around the acronym.
To read the full 2024 Global RepTrak 100 report, please visit: www.reptrak.com/globalreptrak
About RepTrak
The RepTrak™ Company is the world’s leading reputation data and insights company. We help companies by organizing and grading a variety of reputational elements, offering a real-world report card on their corporate reputation. Subscribers to the RepTrak program use our predictive insights to protect business value, improve return on investment, and increase their positive impact on society. RepTrak’s pairing of advanced metrics and dedicated reputation advisors offers clients an actionable analysis of their reputation data, aligning business objectives with stakeholder sentiment across different markets and sectors.
Established in 2004, The RepTrak Company owns the world’s largest reputation benchmarking database, gathering over 1 million company ratings per year used by CEOs, boards, and executives in more than 60 countries worldwide. For more information, please visit: www.reptrak.com
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View original content:https://www.prnewswire.co.uk/news-releases/reptrak-announces-2024-global-reptrak-100-report-302121513.html
Artificial Intelligence
Group-IB takes part in a global operation to cripple Canadian Phishing-as-a-Service provider LabHost
SINGAPORE, April 18, 2024 /PRNewswire/ — Group-IB, a leading cybersecurity company aimed at investigating, preventing, and fight digital crime announced today that it participated in a coordinated global takedown operation against prominent Canadian Phishing-as-a-Service (PhaaS) provider LabHost, which has led to the arrest of 37 suspects across the United Kingdom and around the world by law enforcement agencies. As part of the operation, Group-IB also conducted an extensive analysis of LabHost’s criminal history and infrastructure, including insights into LabHost’s administrative platform and the services it provides to its purported user base which exceeds 2,000 subscribers worldwide, who illegally obtained around 480,000 card numbers, 64,000 pin numbers, and over 1 million passwords from victims used for websites and other online services, according to law enforcement agencies.
“By leveraging our Threat Intelligence and Digital Risk Protection, we are able to identify and monitor phishing attacks and websites like those deployed by LabHost and its subscribers around the world, enabling us to actively alert and protect our customers, and in turn, their customers as well,” said Dmitry Volkov, Chief Executive Officer of Group-IB. “Today’s takedown operation demonstrates the agility and responsiveness of our decentralized Digital Crime Resistance Centers, and how quickly we can provide immediate and local assistance wherever our customers may be.”
First uncovered in late 2021, LabHost emerged as a fully automated Phishing-as-a-Service (PhaaS) platform, streamlining the creation of phishing websites meticulously mirroring the interface and functionality of prominent banking, postal, and financial entities, aimed at intercepting, seizing, and profiting from users’ personal, credit card, and online banking credentials. Users are prompted to select from various “membership plans,” tailored to target businesses and individuals in either the United States and Canada, or globally, akin to mobile subscription models. These plans encompass “standard,” “premium,” and “world membership” tiers, priced between US$179 and US$300 monthly, with options for monthly, quarterly, or annual billing cycles.
For media inquiries, please contact [email protected]
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Artificial Intelligence
Malaysia Data Center Market to Witness $3.97 Billion Investment Opportunities by 2029, Get Insights on 34 Existing Data Centers and 33 Upcoming Facilities across Malaysia – Arizton
CHICAGO, April 18, 2024 /PRNewswire/ — According to Arizton’s latest research report, the Malaysia data center market is growing at a CAGR of 13.92% during the forecast period.
To Know More, Download the Free Sample Report: https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Malaysia Data Center Market Report Scope
Report Attributes
Details
Market Size (Investment)
USD 3.97 Billion (2029)
Market Size (Area)
883 Thousand Sq. Feet (2029)
Market Size (Power Capacity)
163 MW (2029)
CAGR Investment (2023-2029)
13.92 %
Colocation Market Size (Revenue)
USD 1.23 Billion (2029)
Historic Year
2020-2022
Base Year
2023
Forecast Year
2024-2029
Over the next few years, Malaysia is poised to witness significant growth in data center investments, driven by the influx of operators like AirTrunk, Equinix, Princeton Digital Group, and other leading companies. Key hubs like Cyberjaya, Kuala Lumpur, and Johor Bahru are expected to see heightened activity, hosting most of the country’s data centers.
The wholesale colocation sector is projected to experience a revenue surge fueled by major cloud players like Microsoft, Google, and AWS. These companies have unveiled plans to establish dedicated cloud regions within Malaysia, with expected timelines for deployment within the next one to two years. This trend underscores Malaysia’s growing importance as a regional hub for data infrastructure and cloud services.
Malaysia is among the top expensive markets globally for developing data centers. Malaysia’s data center construction cost in 2023 stood at about $8.5-$10 million per MW, making it the costliest market in the APAC region after Singapore and Jakarta.
Investment Opportunities in the Malaysia Data Center Market
In November 2023, ST Telemedia Global Data Centres announced its plans to develop a new data center campus in Johor. The construction of the first building is likely to begin soon and become operational by 2025. The company formed a joint venture with Basis Bay to develop a new data center campus with two buildings, Cyberjaya DC.2 and STT Kuala Lumpur 1 in Cyberjaya, Selangor.In October 2023, EDGNEX Data Centres by DAMAC announced its plans to enter the APAC market for the first time; the company is considering a facility in Cyberjaya, Selangor. The expected investment can cross the $52 million mark.In October 2023, Infinaxis Data Centre Holdings, the joint venture between Gaw Capital Partners and A3 Capital, announced the construction of its first data center facility in Cyberjaya. The facility will have 10 data halls and will likely be operational by Q2 2025.In September 2023, EdgeConneX announced its plans to expand its footprint in Malaysia with the development of three data centers sites across Bukit Jalil, Kuala Lumpur, and Cyberjaya. The company plans to develop data centers in partnership with Cyberview.To Know More, Download the Free Sample Report: https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Market Trends
According to IRENA, in 2022, hydroenergy accounted for around 69% of the renewable energy capacity in Malaysia, followed by solar energy, which contributed about 21%, along with a 10% contribution by bioenergy.Malaysia aims to achieve the target of net-zero carbon emissions by 2050. To make this goal a reality, WWF-Malaysia is partnering with Boston Consulting Group to develop an independent joint study on the country’s optimal net zero pathway.The government of Malaysia has established a green tariff scheme to support its carbon-neutrality target. Under the scheme, subscribers can get electricity from solar or hydro sources instead of fossil fuel sources.Mergers, acquisitions, joint ventures, and partnerships are key strategies employed by operators to expand their portfolios and global footprint. For example:
In December 2023, Chindata Group merged with BCPE Chivalry Merger Sub, a wholly owned subsidiary of BCPE Chivalry Bidco, completing its transition to a private company from a public one.November 2023 saw ST Telemedia Global Data Centres, in a joint venture with Basis Bay, announcing plans to develop a new data center campus with two buildings in Cyberjaya, Selangor.A3 Capital and Gaw Capital Partners formed a joint venture in February 2023 to establish Infinaxis Data Centre Holdings to develop and operate data centers across Malaysia and Southeast Asia.MN Holdings, an engineering services and solutions company, signed a Memorandum of Understanding (MoU) in April 2023 with Shanghai DC-Science, outlining an investment of approximately $600 million to develop a data center site at the Sedenak Tech Park, Johor.Why Should You Buy This Research?
Market size is available regarding investment, area, power capacity, and Malaysia colocation market revenue.An assessment of the data center investment in Malaysia by colocation, hyperscale, and enterprise operators.Investments in the area (square feet) and power capacity (MW) across cities in the country.A detailed study of the existing Malaysia data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.Snapshot of existing and upcoming third-party data center facilities in MalaysiaFacilities Covered (Existing): 34Facilities Identified (Upcoming): 33Coverage: 9 LocationsExisting vs. Upcoming (Area)Existing vs. Upcoming (IT Load Capacity)Data Center Colocation Market in MalaysiaColocation Market Revenue & Forecast (2023-2029)Wholesale vs. Retail Colocation Revenue (2023-2029)Retail Colocation PricingWholesale Colocation PricingThe Malaysia data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.A transparent research methodology and the analysis of the demand and supply aspects of the industry.Buy this Research @ https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Post-Purchase Benefit
1hr of free analyst discussion10% off on customizationThe Report Includes the Investment in the Following Areas:
IT InfrastructureServersStorage SystemsNetwork InfrastructureElectrical InfrastructureUPS SystemsGeneratorsSwitches & SwitchgearsPDUsOther Electrical InfrastructureMechanical InfrastructureCooling SystemsRack CabinetsOther Mechanical InfrastructureCooling SystemsCRAC and CRAHChillersCooling Tower and Dry CoolersOther Cooling UnitsGeneral ConstructionCore & Shell DevelopmentInstallation & Commissioning ServicesBuilding & Engineering DesignFire Detection & Suppression SystemsPhysical SecurityData Center Infrastructure Management (DCIM)Tier StandardTier I & Tier IITier IIITier IV GeographySelangorJohorOther StatesVendor Landscape
IT Infrastructure Providers
Cisco SystemsDell TechnologiesFujitsuHewlett Packard EnterpriseHuawei TechnologiesIBMInspurLenovoNetAppData Center Construction Contractors & Sub-Contractors
Advance Power EngineeringAsima ArchitectsAVO TechnologyB-Global TechCTC-GlobalCSF GroupCyclect GroupDSCO GroupGamudaGCM TechnologiesHSS EngineersISGKienta Engineering ConstructionLSK EngineeringMES GroupM+W Group (Exyte)MN HoldingsNakanoNTT FACILITIESPowerware SystemsS5 EngineeringShaw ArchitectSunway Construction GroupUnique CentralSupport Infrastructure Providers
ABBCaterpillarCumminsEatonFuji ElectricHITEC Power ProtectionKOHLER PowerLegrandMitsubishi ElectricNarada Power SourcePiller Power SystemsRittalRolls-RoyceSchneider ElectricSiemensSocomecSTULZTraneVertivData Center Investors
Bridge Data CentresEdge CentresGDS ServicesIRIX (PP TELECOMMUNICATION)Keppel Data CentresNTT DATAOpen DCTM OneVantage Data CentersYTL Data Center HoldingsNew Entrants
AirTrunkAmazon Web Services (AWS)EdgeConneXEquinixFutureData (Cyclect Group + TSG Group)Googlei-BerhadInfinaxis Data Centre HoldingsMN Holdings + Shanghai DC-ScienceMicrosoftNEXTDCPrinceton Digital GroupRegal OrionSingtelST Telemedia Global Data CentresYondrTo Know More, Download the Free Sample Report: https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Key Questions Answered in the Report:
What factors are driving the Malaysian data center industry?
How big is the Malaysia data center market?
How many MW of power capacity will be added across Malaysia during 2024 to 2029?
What is the growth rate of the Malaysia data center market?
Which states are included in the Malaysia data center market report?
Get the Detailed TOC @ https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
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