StepStone Group Inc. (NASDAQ:STEP) Q4 2023 Results Conference Call May 24, 2023 5:00 PM ET

Company Participants

Seth Weiss - Investor Relations

Scott Hart - Chief Executive Officer

Jason Ment - President and Co-Chief Operating Officer

Mike McCabe - Head of Strategy

Johnny Randel - Chief Financial Officer

Conference Call Participants

Ken Worthington - J.P. Morgan

Ben Budish - Barclays

Operator

Greetings. Welcome to StepStone’s Fiscal Fourth Quarter 2023 Earnings Call. At this time, all participants are in listen only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]. Please note this conference is being recorded.

I will now turn the conference over to your host, Seth Weiss. You may begin.

Seth Weiss

Thank you. Joining me on the call today are Scott Hart, Chief Executive Officer; Jason Ment, President and Co-Chief Operating Officer; Mike McCabe, Head of Strategy; and Johnny Randel, Chief Financial Officer. During our prepared remarks, we will be referring to a presentation which is available on our Investor Relations Web site at shareholders.stepstonegroup.com. Before we begin, I'd like to remind everyone that this conference call as well as this presentation contains certain forward-looking statements regarding the Company's expected operating and financial performance for future periods and our plans for future dividends. Forward-looking statements reflect management's current plans, estimates and expectations and are inherently uncertain and are subject to various risks, uncertainties and assumptions. Actual results for future periods and actual dividends declared may differ materially from those expressed or implied by these forward-looking statements due to changes in circumstances or a number of risks or other factors that are described in the Risk Factors section of StepStone's most recent 10-K and which will be updated in our upcoming 10-K. These forward-looking statements are made only as of today. And except as required, we undertake no obligation to update or revise any of them. In addition, today's presentation contains references to non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, our presentation and our filings with the SEC.

Turning to our financial results for the fourth quarter of our fiscal 2023. We reported GAAP net income of $56.8 million. GAAP net income attributable to StepStone Group Incorporated was $28.8 million. We generated fee related earnings of $37.8 million, adjusted net income of $27.1 million and adjusted net income per share of $0.24. The quarter reflected retroactive fees resulting from an interim closing of StepStone’s multi strategy global venture capital fund that contributed $0.5 million to revenue, fee related earnings and pretax adjusted net income. This compares to retroactive fees in the fourth quarter of fiscal 2022 that contributed $3.4 million to revenue and $3 million to fee related earnings and pretax adjusted net income. Before turning to Scott, I would like to remind everyone that we’re holding an Investor Day on Tuesday, June 6th, in New York. Registration and additional details are available at investorday@stepstonegroup.com. In-person capacity is limited, so please register as soon as possible to request on-site attendance. A live webcast will also be available on that same Investor Day Web site or through our shareholders' site.