10-QPeriod: Q3 FY2024

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

Filed November 1, 2024For Securities:BX

Summary

Blackstone Inc. reported strong financial performance for the nine months ended September 30, 2024, driven by significant growth in Investment Income, primarily from unrealized appreciation across its Private Equity and Real Estate segments. Total revenues increased by 51% year-over-year to $10.1 billion, with Net Income Attributable to Blackstone Inc. rising 67% to $2.07 billion. The company also saw substantial growth in its Assets Under Management (AUM), reaching $1.11 trillion in total AUM, up 6% from the previous year. Fee-earning AUM also grew by 8% to $820.5 billion. The company's growth was propelled by strong market activity and favorable economic conditions, including decelerating inflation and anticipated interest rate reductions. Blackstone's key segments, particularly Real Estate and Private Equity, demonstrated robust appreciation in their investment portfolios. Despite an increase in expenses, largely due to higher compensation tied to performance, Blackstone maintained healthy profitability and cash flow, supporting its share repurchase program and dividend distributions.

Financial Highlights

39 data points
Beta

Revenue

$3.66B

Net Income

$780.84M

21.3% Net Margin

EPS (Diluted)

$1.02

Total Assets

$42.58B

Cash & Equivalents

$2.35B

Free Cash Flow

$1.20B

Financial Statements
Beta
Revenue$3.66B
Operating Expenses$1.90B
Interest Expense$111.34M
Net Income$780.84M
EPS (Basic)$1.02
EPS (Diluted)$1.02
Shares Outstanding (Basic)768.23M
Shares Outstanding (Diluted)768.28M

Key Highlights

  • 1Total Revenues surged by 51% to $10.1 billion for the nine months ended September 30, 2024, compared to $6.7 billion in the prior year period.
  • 2Net Income Attributable to Blackstone Inc. increased significantly by 67% to $2.07 billion for the nine months ended September 30, 2024.
  • 3Total Assets Under Management (AUM) grew to $1.11 trillion, a 6% increase year-over-year, reflecting strong capital deployment and market appreciation.
  • 4Fee-Earning Assets Under Management (FEAUM) increased by 8% to $820.5 billion, indicating growth in the revenue-generating asset base.
  • 5Investment Income (Loss) was a major driver of revenue growth, increasing by $3.1 billion year-over-year due to strong unrealized appreciation, particularly in Private Equity and Real Estate.
  • 6Expenses rose by 32% to $5.3 billion, largely driven by a $1.2 billion increase in Compensation and Benefits, primarily linked to performance-based compensation.
  • 7The company repurchased approximately 3.7 million shares of common stock for $473.5 million during the nine months ended September 30, 2024, with $1.9 billion remaining under its authorization.

Frequently Asked Questions

Blackstone demonstrated strong financial performance for the nine months ended September 30, 2024. Total revenues increased by 51% year-over-year to $10.1 billion, primarily driven by a significant rise in Investment Income due to strong unrealized appreciation in its Private Equity and Real Estate segments. Net income attributable to Blackstone Inc. also saw substantial growth, increasing by 67% to $2.07 billion.

Blackstone experienced robust growth in its AUM. Total Assets Under Management increased by 6% year-over-year to $1.11 trillion as of September 30, 2024. Fee-Earning Assets Under Management also grew by 8% to $820.5 billion, indicating an expanding base for management and performance fees.

The primary driver of Blackstone's revenue growth was a substantial increase in Investment Income, up $3.1 billion year-over-year. This was largely due to strong unrealized appreciation across its investment portfolio, particularly within the Private Equity and Real Estate segments, reflecting positive market conditions and asset performance.

Expenses increased by 32% to $5.3 billion for the nine months ended September 30, 2024. This increase was primarily driven by a $1.2 billion rise in Compensation and Benefits, largely attributable to performance-based compensation that correlates with the company's strong investment income performance.