10-QPeriod: Q1 FY2024

Apollo Global Management, Inc. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 7, 2024For Securities:APOAPOSAPO-PA

Summary

Apollo Global Management, Inc. (APO) reported strong financial results for the first quarter of 2024, driven by robust performance across its Asset Management and Retirement Services segments. Total revenues increased by 32.8% year-over-year to $7.04 billion, primarily fueled by a significant 36.9% rise in net investment income within the Retirement Services segment. This growth was supported by an expanding investment portfolio and higher interest rates. Fee Related Earnings (FRE) for the Asset Management segment also showed healthy growth, increasing by 16.4% to $462 million, indicating strong management fee generation and growth in Assets Under Management (AUM). Net income attributable to Apollo Global Management, Inc. common stockholders surged by 38.9% to $1.40 billion. The company's strategic focus on its core businesses, coupled with favorable market conditions, contributed to this performance. Apollo's AUM grew to $671 billion, demonstrating continued investor confidence and effective capital deployment. The company's liquidity remains strong, with substantial cash reserves and available credit facilities, positioning it well for future growth and strategic initiatives.

Financial Highlights

34 data points
Beta

Revenue

$7.04B

Net Income

$1.40B

19.9% Net Margin

EPS (Diluted)

$2.28

Total Assets

$334.05B

Cash & Equivalents

$19.72B

Free Cash Flow

$70.00M

Financial Statements
Beta
Revenue$7.04B
Operating Expenses$4.89B
Interest Expense$94.00M
Net Income$1.40B
EPS (Basic)$2.31
EPS (Diluted)$2.28
Shares Outstanding (Basic)588.12M
Shares Outstanding (Diluted)605.38M

Key Highlights

  • 1Total Revenues increased by 32.8% to $7.04 billion compared to Q1 2023.
  • 2Net income attributable to Apollo Global Management, Inc. common stockholders increased by 38.9% to $1.40 billion.
  • 3Retirement Services segment Net Investment Income grew by 36.9% to $3.58 billion.
  • 4Asset Management segment Fee Related Earnings (FRE) increased by 16.4% to $462 million.
  • 5Total Assets Under Management (AUM) grew by 3.1% to $671.0 billion.
  • 6The company maintains a strong liquidity position with $17.7 billion in unrestricted cash and cash equivalents.
  • 7Equity-based compensation expense increased to $176 million from $124 million in the prior year's quarter.

Frequently Asked Questions

Apollo's total revenues for the first quarter of 2024 were $7.04 billion, a significant increase of 32.8% from $5.30 billion in the first quarter of 2023. This growth was primarily driven by a substantial increase in net investment income within the Retirement Services segment.

The increase in Net Investment Income for the Retirement Services segment to $3.58 billion was primarily due to growth in Athene's investment portfolio, driven by strong net inflows over the past twelve months, higher rates on new deployments reflecting the current interest rate environment, and increased floating rate income. Favorable performance in alternative investments and FIA hedging derivatives also contributed significantly.

The Asset Management segment demonstrated strong performance, with Fee Related Earnings (FRE) increasing by 16.4% to $462 million in the first quarter of 2024, up from $397 million in the prior year's quarter. This growth was primarily driven by higher management fees and fee-related performance fees, reflecting increased Assets Under Management (AUM).

Apollo maintains a strong liquidity position. As of March 31, 2024, the company reported $17.7 billion in unrestricted cash and cash equivalents. Additionally, it has access to $4.9 billion in available funds from its credit facilities, positioning it well to meet its financial obligations and pursue strategic growth opportunities.