Victory Capital Holdings Inc Reports Strong Q2 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Victory Capital Holdings, Inc. Reports Strong Q2 2024 Financial Results
Victory Capital Holdings, Inc. (NASDAQ:VCTR) has announced its financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Consensus Estimate | YoY % Change | QoQ % Change |
|---|---|---|---|---|---|---|
| Total Revenue | $219.6 million | $215.9 million | $204.2 million | $219.48 million | +7.5% | +1.7% |
| GAAP Earnings Per Share (EPS) | $1.12 | $0.84 | $0.83 | $1.26 | +31.0% | +33.3% |
| Adjusted Net Income (EPS) with Tax | $1.31 | $1.25 | $1.11 | N/A | +14.1% | +5.3% |
| Adjusted EBITDA | $116.5 million | $112.4 million | $104.0 million | N/A | +12.0% | +3.7% |
| Adjusted EBITDA Margin | 53.0% | 52.1% | 50.9% | N/A | +2.1% | +0.9% |
Victory Capital’s financial performance was strong, highlighted by significant year-over-year and quarter-over-quarter growth. Both GAAP and adjusted metrics exceeded expectations, showcasing robust operational execution and cost management.
Revenue Performance by Segment
| Segment | Q2 2024 | Q1 2024 | Guidance | QoQ % Change |
|---|---|---|---|---|
| Total Client Assets | $173.8B | $170.3B | N/A | +2.1% |
| Assets Under Management (AUM) | $168.7B | $170.3B | N/A | -1.0% |
| Other Assets | $5.1B | N/A | N/A | N/A |
Despite a slight decrease in AUM due to net outflows, the overall increase in total client assets reflects well-engaged investment services.
Key Operational Data
| Operational Data | Q2 2024 |
|---|---|
| Long-term Gross Flows | $5.8B |
| Long-term Net Flows | ($1.7B) |
| GAAP Operating Margin | 50.4% |
| Cash on Balance Sheet | $119M |
| Net Debt to EBITDA Ratio | 1.9X |
Management Commentary
David Brown, Chairman and CEO, highlighted significant developments, including a strategic partnership with Amundi and strong financial performances. He noted, “Our Investment Franchises continued to deliver excellent investment performance for our clients. Through the end of June, the percentage of our AUM outperforming benchmarks over 3-, 5-, and 10-year periods was impressive.”
Dividends and Share Repurchase Program
The company authorized an 11% increase in the regular quarterly cash dividend to $0.41 per share, payable on September 25, 2024, to shareholders of record on September 10, 2024.
Forward Guidance
Victory Capital did not provide specific forward guidance in the earnings report.
Stock Price Movement
Following the earnings release, Victory Capital's stock increased by 3.84%.
Victory Capital continues to demonstrate operational excellence and strategic growth, positioning itself strongly for the future.
