10-QPeriod: Q3 FY2024

Apollo Global Management, Inc. Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 6, 2024For Securities:APOAPOSAPO-PA

Summary

Apollo Global Management, Inc. (APO) reported its third-quarter results for the period ending September 29, 2024. The company demonstrated strong growth across its segments, with total revenues reaching $7.8 billion, a significant increase driven by the Retirement Services segment. This growth was primarily fueled by a substantial rise in investment-related gains and net investment income, reflecting favorable market conditions and Athene's expanding investment portfolio. The Asset Management segment also showed resilience, with management fees and advisory and transaction fees contributing positively. Fee Related Earnings (FRE) for Asset Management grew by 12.5% year-over-year, underscoring the segment's stable revenue generation. While expenses increased across both segments, largely due to higher compensation, operating expenses, and actuarial adjustments in Retirement Services, the company's overall profitability remained robust. Net income attributable to common stockholders was $787 million for the quarter. The company's liquidity position appears solid, with significant cash and cash equivalents and available credit facilities. Apollo continues to execute on its capital allocation strategy, including share repurchases and dividend payments, reflecting confidence in its ongoing performance.

Financial Highlights

35 data points
Beta

Revenue

$7.77B

Net Income

$787.00M

10.1% Net Margin

EPS (Diluted)

$1.29

Total Assets

$368.69B

Cash & Equivalents

$17.63B

Free Cash Flow

$1.85B

Financial Statements
Beta
Revenue$7.77B
Operating Expenses$5.82B
Interest Expense$120.00M
Net Income$787.00M
EPS (Basic)$1.30
EPS (Diluted)$1.29
Shares Outstanding (Basic)585.38M
Shares Outstanding (Diluted)588.54M

Key Highlights

  • 1Total Revenues surged to $7.8 billion, a 199.5% increase year-over-year, primarily driven by a $5.2 billion increase in Retirement Services revenues.
  • 2Retirement Services saw a substantial increase in Net Investment Income, up 29.5% to $4.1 billion, benefiting from a larger investment portfolio and higher interest rates.
  • 3Asset Management's Fee Related Earnings (FRE) increased by 12.5% to $531 million, supported by growth in management fees and capital solutions fees.
  • 4Investment Related Gains (Losses) for Retirement Services swung from a loss of $2.6 billion in Q3 2023 to a gain of $1.5 billion in Q3 2024, significantly boosting overall revenue.
  • 5The company reported Net Income Attributable to Apollo Global Management, Inc. of $811 million for the quarter, a 18.9% increase year-over-year.
  • 6Total Assets grew to $368.7 billion as of September 30, 2024, up from $313.5 billion at the end of 2023, indicating substantial asset growth.
  • 7The company declared a cash dividend of $0.4625 per share of common stock, payable on November 29, 2024.

Frequently Asked Questions

The substantial increase in Retirement Services revenue was primarily driven by a significant rise in investment-related gains (losses) and net investment income. This was largely due to favorable changes in the fair value of mortgage loans, FIA hedging derivatives, reinsurance assets, and trading securities, as well as the impact of a decrease in U.S. Treasury rates compared to an increase in the prior year.

The Asset Management segment showed strong performance with Fee Related Earnings (FRE) increasing by 12.5% year-over-year to $531 million. This growth was primarily attributable to increases in management fees, capital solutions fees and other, net, and fee-related performance fees.

Apollo Global Management reported a strong liquidity position as of September 30, 2024, with $16.3 billion in unrestricted cash and cash equivalents, complemented by approximately $1.0 billion in available funds from its credit facilities (AMH credit facility, AHL credit facility, and AHL liquidity facility).

Total Assets Under Management (AUM) grew to $733.2 billion as of September 30, 2024, an increase of $37.0 billion or 5.3% from the previous quarter, and an increase of $102.1 billion or 15.9% from the end of 2023. This growth was driven by net inflows across the platform, particularly in the Credit strategy, and growth in Retirement Services client assets.