10-QPeriod: Q3 FY2024

BlackRock, Inc. Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 6, 2024For Securities:BLK

Summary

BlackRock, Inc. (BLK) reported strong financial results for the nine months ended September 30, 2024, demonstrating significant growth in revenue and earnings. Total revenue increased by 11% year-over-year to $14.73 billion, driven by higher investment advisory, administration, and securities lending revenue, bolstered by positive market beta and organic growth. Performance fees also saw a substantial increase, reflecting strong investment performance in key areas. Despite an increase in expenses, largely due to higher employee compensation and technology investments, operating income grew by 17% to $5.5 billion, with an improved operating margin of 37.3%. Net income attributable to BlackRock increased by 14% to $4.7 billion, leading to a diluted earnings per share of $31.37, up from $27.36 in the prior year period. The company's Assets Under Management (AUM) reached a new high of $11.5 trillion, up from $9.1 trillion a year ago, reflecting robust net inflows and positive market performance. The company also successfully managed its liquidity, with total liquidity resources increasing, and continued its share repurchase program.

Financial Highlights

44 data points
Beta

Revenue

$5.20B

Net Income

$1.63B

31.4% Net Margin

EPS (Diluted)

$10.90

Total Assets

$132.82B

Cash & Equivalents

$14.05B

Free Cash Flow

$1.29B

Financial Statements
Beta
Revenue$5.20B
Operating Expenses$3.19B
Operating Income$2.01B
Net Income$1.63B
EPS (Basic)$11.02
EPS (Diluted)$10.90
Shares Outstanding (Basic)148.05M
Shares Outstanding (Diluted)149.61M

Key Highlights

  • 1Total revenue for the nine months ended September 30, 2024, increased 11% to $14.73 billion.
  • 2Net income attributable to BlackRock increased 14% to $4.7 billion.
  • 3Diluted earnings per share rose to $31.37 from $27.36 for the same period last year.
  • 4Assets Under Management (AUM) reached $11.5 trillion, an increase from $9.1 trillion a year ago.
  • 5The company completed the acquisition of Global Infrastructure Management, LLC (GIP) for approximately $3 billion in cash and BlackRock common stock.
  • 6BlackRock announced its definitive agreement to acquire Preqin, a leading independent provider of private markets data, for approximately $3.4 billion.
  • 7Total expenses increased by 8% to $9.23 billion, impacted by higher employee compensation and technology investments.

Frequently Asked Questions

BlackRock's Assets Under Management (AUM) grew to $11.5 trillion as of September 30, 2024, an increase from $9.1 trillion a year ago. This growth was driven by a combination of net market appreciation, which contributed $1.8 trillion primarily from global equity markets, and net inflows of $456 billion across all product types. Foreign exchange movements also contributed positively, adding $139 billion due to the weakening US dollar.

BlackRock completed the acquisition of Global Infrastructure Management, LLC (GIP) in October 2024 for approximately $3 billion in cash and shares, which will add to its infrastructure offerings. They also announced an agreement to acquire Preqin in June 2024 for approximately $3.4 billion, aiming to enhance its private markets data and technology capabilities. The financial impact of these significant acquisitions will be further reflected in future reporting periods, with the GIP acquisition's initial accounting being incomplete at the time of this filing.

Revenue for the nine months ended September 30, 2024, increased by 11% to $14.73 billion, driven by higher investment advisory fees, strong performance fees, and technology services revenue. Expenses also increased by 8% to $9.23 billion, primarily due to higher employee compensation and benefits, reflecting increased incentive compensation and headcount, as well as higher sales, asset and account expenses, and general and administration expenses, including investments in technology and acquisition-related costs. Despite rising expenses, operating income and margins improved, indicating effective management of costs relative to revenue growth.

Performance fees saw a significant increase, contributing $756 million for the nine months ended September 30, 2024, up from $243 million in the prior year. This surge was primarily attributed to higher revenue from liquid alternative products, including strong performance from a specific hedge fund, and increased revenue from illiquid alternative products.