10-QPeriod: Q1 FY2022

Blackstone Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 5, 2022For Securities:BX

Summary

Blackstone Inc. reported its first quarter 2022 results, showing a resilient performance despite a challenging macroeconomic environment characterized by geopolitical uncertainty, rising inflation, and increasing interest rates. Total revenues decreased slightly by 3% year-over-year to $5.1 billion, primarily due to a decline in investment income driven by lower unrealized gains, while management and advisory fees saw a significant 25% increase to $1.5 billion. Net income attributable to Blackstone Inc. decreased by 30% to $1.2 billion, or $1.66 per diluted share, compared to $1.7 billion in the prior year quarter. This was influenced by a decrease in investment income and an increase in compensation and general administrative expenses. Despite the revenue dip, the company demonstrated strong growth in its core businesses. Fee-earning assets under management (AUM) increased by 4% to $677.9 billion, driven by strong inflows across all segments, particularly Real Estate and Credit & Insurance. Total AUM also grew by 4% to $915.5 billion. The company's Fee Related Earnings (FRE) saw substantial growth of 53% to $1.1 billion, highlighting the strength of its recurring revenue streams. Blackstone maintained a strong liquidity position with $3.9 billion in cash and cash equivalents, and $1.5 billion remaining on its share repurchase authorization.

Financial Highlights

40 data points
Beta

Revenue

$5.13B

Net Income

$1.22B

23.7% Net Margin

EPS (Diluted)

$1.66

Total Assets

$43.34B

Cash & Equivalents

$3.87B

Free Cash Flow

$2.69B

Financial Statements
Beta
Revenue$5.13B
Operating Expenses$2.20B
Interest Expense$66.75M
Net Income$1.22B
EPS (Basic)$1.66
EPS (Diluted)$1.66
Shares Outstanding (Basic)734.33M
Shares Outstanding (Diluted)734.97M

Key Highlights

  • 1Total Revenues decreased 3% year-over-year to $5.1 billion, impacted by lower investment income.
  • 2Management and Advisory Fees, Net, increased significantly by 25% to $1.47 billion, driven by growth in Real Estate and Credit & Insurance segments.
  • 3Net Income Attributable to Blackstone Inc. decreased by 30% to $1.22 billion, or $1.66 per diluted share.
  • 4Fee Earning Assets Under Management (AUM) grew 4% to $677.9 billion, reflecting strong inflows across segments.
  • 5Total Assets Under Management (AUM) increased 4% to $915.5 billion.
  • 6Fee Related Earnings (FRE) increased by 53% to $1.15 billion, showcasing the company's recurring revenue strength.
  • 7The company maintained a robust liquidity position with $3.9 billion in Cash and Cash Equivalents.

Frequently Asked Questions

Blackstone's total revenues decreased by 3% to $5.1 billion in Q1 2022 compared to Q1 2021. Net income attributable to Blackstone Inc. saw a more significant decrease of 30% to $1.2 billion, primarily due to a decline in investment income and higher operating expenses.

Blackstone experienced growth in both Fee Earning AUM and Total AUM. Fee Earning AUM increased by 4% to $677.9 billion, and Total AUM also grew by 4% to $915.5 billion, driven by strong inflows across its various business segments.

Blackstone's Fee Related Earnings (FRE) demonstrated strong growth, increasing by 53% to $1.15 billion. This highlights the resilience and growing contribution of its recurring revenue businesses, which are less sensitive to market fluctuations compared to performance revenues.

The company acknowledged the challenging macroeconomic environment, including geopolitical uncertainty, rising inflation, and increasing interest rates. While this impacted investment income, particularly unrealized gains, Blackstone's diversified business model and strong inflows into its AUM helped mitigate some of the negative effects, particularly in its fee-generating businesses.