LPL Financial (LPLA) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 27, 2022 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon and thank you for joining the Third Quarter 2022 Earnings Conference Call for LPL Financial Holdings Inc. Joining the call today are President and Chief Executive Officer, Dan Arnold; and Chief Financial Officer, Matt Audette. Dan and Matt will offer introductory remarks and then the call will be open for questions. [Operator Instructions] The company has posted its earnings and press release and supplementary information on the Investor Relations section of the company's website, investor.lpl.com.

Today's call includes forward-looking statements, including statements about LPL's financial future and operating results, outlook, business strategies and plans as well as other opportunities and potential risks that management foresees. Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements. For more information about such risks and uncertainties, the company refers listeners to the disclosures set forth under the caption Forward-looking Statements in the earnings press release as well as the risk factors and other disclosures contained in the company's recent filings with the Securities and Exchange Commission. During the call, the company will also discuss certain non-GAAP financial measures for a reconciliation of such non-GAAP financial measures to the comparable GAAP figures, please refer to the company’s earnings release which can be found at investor.lpl.com.

With that, I will now turn the call over to Mr. Arnold.

Dan Arnold

Thank you, Amy. And thanks to everyone for joining our call. Over the past quarter, amid persistent market volatility, our advisors continued to be a source of support and guidance for their clients by helping them navigate uncertainty. This commitment to their clients underscores the importance of our work on our mission, taking care of our advisors so they can take care of their clients.

With respect to our performance, third quarter was marked resilient business results which drove solid financial out, as well as continued progress on our strategic plan. I'll review both of these areas, starting with our third quarter business.

In the third quarter, total assets decreased to $1.1 trillion as continued solid organic growth was more than offset by lower equity. With respect to organic growth, the business continued to perform well despite market volatility. Third quarter net new assets were $20 billion, representing 7% annualized just contributed to net new assets over the past 12 months of $101 billion, representing 9% organic revenue.