StepStone Group Inc. (NASDAQ:STEP) Q1 2023 Earnings Conference Call August 4, 2022 5:00 PM ET

Company Participants

Seth Weiss - Head, Investor Relations

Scott Hart - Chief Executive Officer

Mike McCabe - Head, Strategy

Johnny Randel - Chief Financial Officer

Conference Call Participants

Michael Cyprys - Morgan Stanley

Ken Worthington - JPMorgan

Alex Blostein - Goldman Sachs

Adam Beatty - UBS

Operator

Welcome to the StepStone Fiscal First Quarter 2023 Earnings Call. At this time, all participants will be in a listen-only mode. Later we will conduct question-and-answer session. [Operator Instructions]

I will now turn the call over to your host, Seth Weiss, Head of Investor Relations. Mr. Weiss, you may begin.

Seth Weiss

Thank you, and good afternoon, everyone. 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 website at shareholders.stepstonegroup.com.

Before we begin I'd like to remind everyone that this conference call as well as the presentation contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods. 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 may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors that are described in the Risk Factors section of StepStone's most recent 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 first quarter of fiscal 2023. We reported a GAAP net loss of $21.5 million for the quarter ended June 30, 2022. The GAAP net loss attributable to StepStone Group Inc. was $11.0 million. We generated fee-related earnings of $36.6 million, adjusted net income of $47.1 million and adjusted net income per share of $0.41.

The quarter reflected retroactive fees resulting from the final closing of StepStone's private equity co-investment fund that contributed $2.4 million to revenue and $2.2 million to fee related earnings and pretax adjusted net income. This compares to retroactive fees in the first quarter of fiscal 2022 that contributed $0.9 million to revenue and $0.8 million to fee-related earnings and pretax adjusted net income.