10-QPeriod: Q2 FY2023

Blackstone Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 4, 2023For Securities:BX

Summary

Blackstone Inc. (BX) reported its second quarter 2023 financial results, showing a significant increase in total revenues primarily driven by a substantial recovery in investment income compared to the prior year's quarter, which was impacted by unrealized investment depreciation. Management and advisory fees, the company's recurring revenue stream, also saw a healthy increase, reflecting growth in fee-earning assets under management across its segments. The company's profitability was bolstered by strong performance in its Real Estate and Private Equity segments, with Fee Related Earnings increasing across most segments. Despite a challenging macroeconomic environment with higher interest rates and capital market volatility, Blackstone demonstrated resilience, with total assets under management crossing the $1 trillion mark. The company also highlighted its strong liquidity position and ongoing share repurchase program, indicating confidence in its financial health and future prospects.

Financial Highlights

40 data points
Beta

Revenue

$2.81B

Net Income

$601.27M

21.4% Net Margin

EPS (Diluted)

$0.79

Total Assets

$41.58B

Cash & Equivalents

$3.28B

Free Cash Flow

$1.66B

Financial Statements
Beta
Revenue$2.81B
Operating Expenses$1.48B
Interest Expense$108.10M
Net Income$601.27M
EPS (Basic)$0.79
EPS (Diluted)$0.79
Shares Outstanding (Basic)758.48M
Shares Outstanding (Diluted)758.55M

Key Highlights

  • 1Total revenues increased significantly to $2.81 billion for the three months ended June 30, 2023, driven by a $2.1 billion increase in Investment Income (Loss), largely due to a recovery in unrealized investment values.
  • 2Management and Advisory Fees, Net increased by 9% year-over-year to $1.71 billion, reflecting growth in fee-earning assets under management.
  • 3Fee Related Earnings across segments demonstrated resilience, with the Real Estate segment showing a 5% increase and Private Equity a 29% increase, indicating the stability of recurring revenue streams.
  • 4Total Assets Under Management (AUM) surpassed $1 trillion, reaching $1.001 trillion as of June 30, 2023, demonstrating continued growth in the company's managed capital.
  • 5Net Income Attributable to Blackstone Inc. was $601.3 million for the quarter, a significant turnaround from a net loss of $29.4 million in the prior year's quarter, driven by improved investment performance.
  • 6The company maintained a strong liquidity position with $3.3 billion in Cash and Cash Equivalents as of June 30, 2023, and had $931.9 million remaining under its share repurchase program.
  • 7Segment Distributable Earnings showed robust growth, particularly in the Private Equity (26% increase) and Hedge Fund Solutions (72% increase) segments, signaling strong operational performance across diverse business lines.

Frequently Asked Questions

Blackstone's total revenues increased significantly to $2.81 billion in the second quarter of 2023, primarily driven by a substantial $2.1 billion increase in Investment Income (Loss). This recovery was largely due to a significant improvement in unrealized investment values, which shifted from depreciation in the prior year's quarter to appreciation in the current quarter.

Blackstone's Total Assets Under Management (AUM) surpassed the $1 trillion mark, reaching $1.001 trillion as of June 30, 2023. This growth reflects continued capital inflows and positive market activity across its various segments, demonstrating the company's ability to attract and manage significant amounts of capital.

Blackstone's Fee Related Earnings remained resilient, with increases seen across several segments, including a 5% rise in Real Estate and a 29% rise in Private Equity year-over-year for the quarter. This indicates the ongoing strength and recurring nature of its management and advisory fee-based revenue streams, which are crucial for stable profitability.

Blackstone maintains a strong liquidity position, with $3.3 billion in Cash and Cash Equivalents as of June 30, 2023. Additionally, the company had $931.9 million remaining under its share repurchase program, signaling its confidence in its financial health and its commitment to returning capital to shareholders.