WisdomTree, Inc. (NYSE:WT) Q3 2023 Results Conference Call October 27, 2023 11:00 AM ET

Company Participants

Jessica Zaloom - Head of Corporate Communications

Bryan Edmiston - Chief Financial Officer

Jarrett Lilien - President and Chief Operating Officer

Jonathan Steinberg - Founder and Chief Executive Officer

Jeremy Campbell - Head of Investor Relations

Will Peck - Head of Digital Assets

Jeremy Schwartz - Global Chief Investment Officer

Conference Call Participants

Chris Kotowski - Oppenheimer & Company

Adam Beatty - UBS

Mike Brown - KBW

Operator

Greetings and welcome to WisdomTree Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to turn it over to Jessica Zaloom, Head of Corporate Communications to begin. Thank you.

Jessica Zaloom

Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation and in the Risk Factors section of WisdomTree's annual report on Form 10-K for the year ended December 31, 2022. WisdomTree assumes no duty and does not undertake to update any forward-looking statements.

Now, it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston.

Bryan Edmiston

Thank you, Jessica, and good morning, everyone. We ended the quarter with $93.7 billion of AUM, unchanged from the prior quarter as our inflows served to offset unfavorable market conditions. We generated $2 million of inflows in the quarter, which were broad and diverse across seven of our eight product categories. Diversification is driving year-to-date average fee capture on our flows upward, which was more than two times greater than our fee capture in the prior year.

Our flows are strong and stable as it has been now been 12 consecutive quarters of flowing positive. Our year-to-date flows through September of $10.7 billion translates into a 17% annualized organic flow growth rate. Our AUM currently stands at 94.1 billion slightly higher from the end of September, having benefited from further inflows.

Next slide. Revenues were 90.4 million, an increase of 5.5% from the second quarter and up 24.9% versus the prior year quarter. Our revenues are growing and our margins are expanding. Our operating margin in the third quarter was 29.5% as compared to 20.5% in the third quarter of last year.