Focus Financial Partners Inc. (NASDAQ:FOCS) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET
Company Participants
Ruediger Adolf - Founder, CEO & Chairman
James Shanahan - CFO
Russell McGranahan - General Counsel
Conference Call Participants
Craig Siegenthaler - Bank of America
Ryan Kenny - Morgan Stanley
Gerald O'Hara - Jefferies
Matthew Moon - KBW
Kwun Lau - Oppenheimer
Patrick O'Shaughnessy - Raymond James
Russell McGranahan
Good morning, everyone. Before we begin, let me remind you that during the course of this call, we may make a number of forward-looking statements. We call your attention to the fact that Focus' results may, of course, differ from these statements. These statements are based on assumptions made by and information currently available to Focus Financial Partners and involve risks and uncertainties that could cause the results of Focus to materially differ from these statements. Focus has made filings with the SEC, which lists some of the factors that may cause its results to differ materially from these statements. And finally, Focus assumes no duty and does not undertake to update any such forward-looking statements.
With that, I will turn it over to our Founder and CEO, Rudy Adolf. Rudy?
Ruediger Adolf
Thanks, Rusty. And good morning, everyone, and welcome to our call. This morning, we announced another quarter of strong results, which again exceed our guidance on all measures despite an exceptionally volatile period in the capital markets. We generated revenues of $519.9 million in the third quarter, up 14.4% versus the prior year. And our year-over-year organic growth rate was 3.4%.
Our adjusted EBITDA was $128.7 million, up 13.4% versus the prior year, and our adjusted EBITDA margin was 24.8%. Our adjusted net income, excluding tax adjustments per share was $0.86, and tax adjustments per share $26. Despite the market correction, we delivered excellent revenue growth and improved margins, demonstrating the continued strength of our fundamentals.
Our results again show the resiliency of our business, reflecting the benefits of our revenue diversification and variable cost base, combined with our structural earnings preference, which helped mitigate the market exposure of our earnings and cash flows.
Our results also reflect the value of trusted advice, particularly in this environment. Our partner firms deliver comprehensive wealth management services to high and ultra-high net worth clients who take a long-term view on structuring their wealth and they are engaged in every element of their clients' financial lives beyond trust investment management.