P10 Reports Third Quarter 2024 Earnings Results
P10 (NYSE: PX) reported its Q3 2024 earnings, showing record quarterly revenue of $74.2 million, a 26% YoY increase. Fee-related revenue also rose by 26% to $72.9 million. The company achieved a GAAP net income of $1.3 million, reversing a loss of $(8.8) million from the previous year. Adjusted EBITDA grew to $35.3 million from $29.6 million, while adjusted net income was $30.8 million, up from $24.3 million. Fully diluted GAAP EPS was $0.01, and ANI per share was $0.26, compared to $(0.07) and $0.20, respectively, in the prior year.
P10's fee-paying AUM increased by 10% to $24.9 billion. The company entered an agreement to acquire Qualitas Funds for $63 million, expanding its European market presence. The acquisition is expected to close in Q1 2025. P10 also amended its credit agreement, increasing borrowing capacity to $500 million. Additionally, the company repurchased 609,300 shares and declared a quarterly dividend of $0.035 per share.
P10 (NYSE: PX) ha riportato i risultati del terzo trimestre del 2024, registrando un fatturato trimestrale record di 74,2 milioni di dollari, con un aumento del 26% rispetto all'anno precedente. I ricavi da commissioni sono aumentati del 26% raggiungendo i 72,9 milioni di dollari. L'azienda ha ottenuto un utile netto GAAP di 1,3 milioni di dollari, invertendo una perdita di 8,8 milioni di dollari dell'anno precedente. L'EBITDA rettificato è cresciuto a 35,3 milioni di dollari rispetto ai 29,6 milioni di dollari, mentre l'utile netto rettificato è stato di 30,8 milioni di dollari, rispetto ai 24,3 milioni di dollari precedenti. L'EPS GAAP completamente diluito era di 0,01 dollari e l'ANI per azione era di 0,26 dollari, rispetto a -0,07 dollari e 0,20 dollari dell'anno precedente.
Gli AUM a pagamento di P10 sono aumentati del 10%, raggiungendo 24,9 miliardi di dollari. L'azienda ha firmato un accordo per acquisire Qualitas Funds per 63 milioni di dollari, ampliando la sua presenza nel mercato europeo. Si prevede che l'acquisizione si chiuda nel primo trimestre del 2025. P10 ha anche modificato il suo accordo di credito, aumentando la capacità di prestito a 500 milioni di dollari. Inoltre, l'azienda ha riacquistato 609.300 azioni e ha dichiarato un dividendo trimestrale di 0,035 dollari per azione.
P10 (NYSE: PX) reportó sus ganancias del tercer trimestre de 2024, mostrando un ingreso trimestral récord de 74.2 millones de dólares, un incremento del 26% en comparación con el año anterior. Los ingresos relacionados con comisiones también crecieron un 26% alcanzando los 72.9 millones de dólares. La compañía logró un ingreso neto GAAP de 1.3 millones de dólares, recuperándose de una pérdida de 8.8 millones de dólares del año anterior. El EBITDA ajustado creció a 35.3 millones de dólares desde 29.6 millones de dólares, mientras que el ingreso neto ajustado fue de 30.8 millones de dólares, aumentándose desde los 24.3 millones de dólares anteriores. El EPS GAAP totalmente diluido fue de 0.01 dólares, y el ANI por acción fue de 0.26 dólares, comparado con -0.07 y 0.20 dólares, respectivamente, en el año anterior.
Los AUM que generan tarifas de P10 aumentaron un 10% hasta alcanzar los 24.9 mil millones de dólares. La empresa firmó un acuerdo para adquirir Qualitas Funds por 63 millones de dólares, ampliando su presencia en el mercado europeo. Se espera que la adquisición se cierre en el primer trimestre de 2025. P10 también modificó su acuerdo de crédito, aumentando la capacidad de endeudamiento a 500 millones de dólares. Además, la empresa recompró 609,300 acciones y declaró un dividendo trimestral de 0.035 dólares por acción.
P10 (NYSE: PX)는 2024년 3분기 실적을 발표하며 분기 수익이 7420만 달러로 기록적인 성과를 올렸고, 전년 대비 26% 증가했습니다. 수수료 관련 수익도 26% 증가하여 7290만 달러에 도달했습니다. 회사는 GAAP 기준 순이익 130만 달러를 기록하며 작년의 880만 달러 손실에서 회복했습니다. 조정된 EBITDA는 2960만 달러에서 3530만 달러로 증가했으며, 조정된 순이익은 2430만 달러에서 3080만 달러로 상승했습니다. 완전 희석 GAAP EPS는 0.01달러였고, ANI 주당 0.26달러로, 전년의 -0.07달러와 0.20달러에 비해 개선되었습니다.
P10의 수수료 기반 AUM은 10% 증가하여 249억 달러에 도달했습니다. 이 회사는 유럽 시장 진출을 확대하기 위해 Qualitas Funds를 6300만 달러에 인수하기로 합의했습니다. 인수는 2025년 1분기에 마무리될 것으로 예상됩니다. P10은 또한 신용 계약을 수정하여 차입 능력을 5억 달러로 늘렸습니다. 추가로, 회사는 609,300주를 재매입하고 주당 0.035달러의 분기 배당금을 선언했습니다.
P10 (NYSE: PX) a annoncé ses résultats du troisième trimestre 2024, affichant un chiffre d'affaires trimestriel record de 74,2 millions de dollars, soit une augmentation de 26% par rapport à l'année précédente. Les revenus liés aux frais ont également augmenté de 26% pour atteindre 72,9 millions de dollars. L'entreprise a réalisé un bénéfice net GAAP de 1,3 million de dollars, inversant une perte de 8,8 millions de dollars de l'année précédente. L'EBITDA ajusté a crû pour atteindre 35,3 millions de dollars contre 29,6 millions de dollars, tandis que le bénéfice net ajusté était de 30,8 millions de dollars, en hausse par rapport aux 24,3 millions de dollars de l'année précédente. Le BPA GAAP totalement dilué était de 0,01 dollar, et l'ANI par action était de 0,26 dollar, contre -0,07 dollar et 0,20 dollar respectivement l'année dernière.
Les AUM payants de P10 ont augmenté de 10% pour atteindre 24,9 milliards de dollars. L'entreprise a conclu un accord pour acquérir Qualitas Funds pour 63 millions de dollars, élargissant ainsi sa présence sur le marché européen. L'acquisition devrait être finalisée au premier trimestre 2025. P10 a également modifié son accord de crédit, augmentant sa capacité d'emprunt à 500 millions de dollars. De plus, l'entreprise a racheté 609 300 actions et a déclaré un dividende trimestriel de 0,035 dollar par action.
P10 (NYSE: PX) berichtete über seine Ergebnisse des dritten Quartals 2024 und erzielte einen Quartalsumsatz von 74,2 Millionen Dollar, was einem Anstieg von 26% im Vergleich zum Vorjahr entspricht. Die gebührenbezogenen Einnahmen stiegen ebenfalls um 26% auf 72,9 Millionen Dollar. Das Unternehmen verzeichnete einen GAAP-Nettogewinn von 1,3 Millionen Dollar und kehrte damit eine Verluste von 8,8 Millionen Dollar im Vorjahr um. Das bereinigte EBITDA erhöhte sich auf 35,3 Millionen Dollar gegenüber 29,6 Millionen Dollar, während der bereinigte Nettogewinn von 24,3 Millionen Dollar auf 30,8 Millionen Dollar anstieg. Der voll verwässerte GAAP EPS betrug 0,01 Dollar, und der ANI pro Aktie war 0,26 Dollar, im Vergleich zu -0,07 Dollar und 0,20 Dollar im Vorjahr.
Die gebührenpflichtigen AUM von P10 stiegen um 10% auf 24,9 Milliarden Dollar. Das Unternehmen schloss eine Vereinbarung zur Übernahme von Qualitas Funds für 63 Millionen Dollar ab, um seine Präsenz auf dem europäischen Markt auszubauen. Es wird erwartet, dass die Übernahme im ersten Quartal 2025 abgeschlossen wird. P10 hat auch seine Kreditvereinbarung geändert und die Kreditaufnahme auf 500 Millionen Dollar erhöht. Darüber hinaus hat das Unternehmen 609.300 Aktien zurückgekauft und eine vierteljährliche Dividende von 0,035 Dollar pro Aktie erklärt.
- Record quarterly revenue of $74.2 million, a 26% YoY increase.
- GAAP net income of $1.3 million, reversing a loss of $(8.8) million.
- Adjusted EBITDA of $35.3 million, up from $29.6 million.
- Adjusted net income of $30.8 million, up from $24.3 million.
- Fee-paying AUM increased by 10% to $24.9 billion.
- Acquisition of Qualitas Funds for $63 million, expanding European market presence.
- Amended credit agreement increasing borrowing capacity to $500 million.
- Share repurchase of 609,300 shares and declaration of $0.035 dividend per share.
- None.
Insights
P10's Q3 results showcase robust financial performance with
The strategic acquisition of Qualitas Funds for
The acquisition of Qualitas Funds marks a strategic expansion into the European lower-middle market, providing access to over 1,300 partners across high-value channels. This move significantly diversifies P10's geographical footprint and client base. The
Generated Record Quarterly Revenue of
DALLAS, Nov. 07, 2024 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX) (the “Company”), a leading private markets solutions provider, today reported financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights
- Revenue:
$74.2 million , a26% increase year over year. - Fee-Related Revenue:
$72.9 million , a26% increase year over year. - Fee-Paying Assets Under Management:
$24.9 billion , a10% increase year over year. - GAAP Net Income/(Loss):
$1.3 million compared to$(8.8) million in the prior year. - Adjusted EBITDA:
$35.3 million compared to$29.6 million in the prior year. - Fee-Related Earnings:
$35.1 million compared to$29.5 million in the prior year. - Adjusted Net Income:
$30.8 million , compared to$24.3 million in the prior year. - Fully diluted GAAP EPS:
$0.01 compared to$(0.07) in the prior year. - Fully diluted ANI per share:
$0.26 , compared to$0.20 in the prior year.
A presentation of the quarterly financials may be accessed here and is available on the Company’s website.
“In the third quarter P10 delivered record results and made demonstrable progress on our strategic growth plan,” said Luke Sarsfield, P10 Chairman and Chief Executive Officer. “During the quarter, our investment strategies achieved a record
Agreement to Acquire Qualitas Funds
As previously announced, on September 16, 2024, P10 entered into a definitive agreement to acquire Qualitas Equity Funds SGEIC, S.A. (“Qualitas Funds”) for an initial purchase price of
The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals, including Spanish regulatory approval. For more information on the transaction, please visit the investor relations section of P10’s website, where an investor presentation is available, or access the Company’s filings on the SEC website.
Expanded Credit Agreement
During the quarter, the Company announced an amended and restated credit agreement that increases the Company’s total borrowing capacity from
Stock Repurchase Program
In the third quarter, the Company repurchased approximately 609,300 shares at an average price of
Declaration of Dividend
The Board of Directors of the Company has declared a quarterly cash dividend of
Conference Call Details
The Company will host a conference call today at 5:00 p.m. Eastern Time. All participants must register prior to joining the event.
For those unable to participate in the live event, a replay will be made available on P10’s investor relations page at www.p10alts.com.
About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of September 30, 2024, P10 has a global investor base of more than 3,800 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.
Forward-Looking Statements
Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,” “continue,” “anticipate,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management’s current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates, or expectations contemplated will be achieved. Forward-looking statements reflect management’s current plans, estimates, and expectations, and are inherently uncertain. All forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause actual results to be materially different; global and domestic market and business conditions; successful execution of business and growth strategies and regulatory factors relevant to our business; changes in our tax status; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; our ability to make acquisitions and successfully integrate the businesses we acquire; assumptions relating to our operations, financial results, financial condition, business prospects and growth strategy; and our ability to manage the effects of events outside of our control. The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the “Risk Factors” included in our annual report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2024, and in our subsequent reports filed from time to time with the SEC. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.
Use of Non-GAAP Financial Measures by P10
The non-GAAP financial measures contained in this press release (including, without limitation, Adjusted EBITDA, Adjusted EBITDA Margin, Fee-Related Revenue (“FRR”), Fee-Related Earnings (“FRE”), Fee-Related Earnings Margin, Adjusted Net Income (“ANI”), Fully Diluted ANI EPS and fee-paying assets under management) are not GAAP measures of the Company’s financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. A reconciliation of such non-GAAP measures to their most directly comparable GAAP measure is included later in this press release. The Company believes the presentation of these non-GAAP measures provide useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods. It is reasonable to expect that one or more excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period. These non-GAAP measures should not be considered substitutes for net income or cash flows from operating, investing, or financing activities. You are encouraged to evaluate each adjustment to non-GAAP financial measures and the reasons management considers it appropriate for supplemental analysis. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Key Financial & Operating Metrics
Fee-paying assets under management reflects the assets from which we earn management and advisory fees. Our vehicles typically earn management and advisory fees based on committed capital, and in certain cases, net invested capital, depending on the fee terms. Management and advisory fees based on committed capital are not affected by market appreciation or depreciation.
P10 Investor Contact:
info@p10alts.com
P10 Media Contact:
Taylor Donahue
tdonahue@prosek.com
| (Dollars in thousands except share and per share amounts) | Three Months Ended | Nine Months Ended | % Change | |||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | Q3'24 vs Q3'23 | YTD'24 vs YTD'23 | |||||||||||
| GAAP Net Income/(Loss) | $ | 1,333 | $ | (8,750 | ) | $ | 13,966 | $ | (5,879 | ) | N/A | N/A | ||||
| Adjustments: | ||||||||||||||||
| Depreciation & amortization | 7,254 | 7,900 | 21,411 | 23,526 | - | - | ||||||||||
| Interest expense, net | 6,692 | 5,482 | 18,584 | 16,080 | ||||||||||||
| Income tax expense | 1,255 | 1,799 | 6,731 | 2,806 | - | |||||||||||
| Non-recurring expenses | 5,556 | 5,493 | 7,131 | 10,668 | - | |||||||||||
| Non-cash stock based compensation | 5,765 | 7,871 | 17,482 | 16,269 | - | |||||||||||
| Non-cash stock based compensation - acquisitions | 3,882 | 1,122 | 5,557 | 7,895 | - | |||||||||||
| Non-cash stock based compensation - CEO transition | - | 2,106 | - | 2,106 | -100% | - | ||||||||||
| Earn out related compensation | 3,597 | 6,607 | 10,714 | 19,394 | - | - | ||||||||||
| Adjusted EBITDA | $ | 35,334 | $ | 29,630 | $ | 101,576 | $ | 92,865 | 19% | 9% | ||||||
| Less: | ||||||||||||||||
| Cash interest expense | (4,189 | ) | (5,048 | ) | (15,231 | ) | (15,051 | ) | - | |||||||
| Cash income taxes, net of taxes related to acquisitions | (388 | ) | (245 | ) | (1,437 | ) | (1,332 | ) | ||||||||
| Adjusted Net Income | $ | 30,757 | $ | 24,337 | $ | 84,908 | $ | 76,482 | 26% | 11% | ||||||
| ANI Earnings per Share | ||||||||||||||||
| Shares outstanding | 111,374 | 116,235 | 112,954 | 116,134 | - | - | ||||||||||
| Fully Diluted Shares outstanding | 119,276 | 124,495 | 120,738 | 124,124 | - | - | ||||||||||
| ANI per share | $ | 0.28 | $ | 0.21 | $ | 0.75 | $ | 0.66 | ||||||||
| Fully diluted ANI per share(1) | $ | 0.26 | $ | 0.20 | $ | 0.70 | $ | 0.62 | ||||||||
| Adjusted EBITDA Margin | ||||||||||||||||
| Total Revenues | $ | 74,243 | $ | 58,942 | $ | 211,434 | $ | 178,667 | ||||||||
| Adjusted EBITDA | 35,334 | 29,630 | 101,576 | 92,865 | ||||||||||||
| Adjusted EBITDA Margin | 48 | % | 50 | % | 48 | % | 52 | % | N/A | N/A | ||||||
| Fee-Related Revenue | ||||||||||||||||
| Total Revenues | $ | 74,243 | $ | 58,942 | $ | 211,434 | $ | 178,667 | ||||||||
| Adjustments: | ||||||||||||||||
| Non-Fee Related Revenue | (1,317 | ) | (1,202 | ) | (5,192 | ) | (3,604 | ) | ||||||||
| Fee-Related Revenue | $ | 72,926 | $ | 57,740 | $ | 206,242 | $ | 175,063 | 26% | 18% | ||||||
| Fee-Related Earnings | ||||||||||||||||
| GAAP Net Income/(Loss) | $ | 1,333 | $ | (8,750 | ) | $ | 13,966 | $ | (5,879 | ) | N/A | N/A | ||||
| Adjustments | 34,001 | 38,380 | 87,610 | 98,744 | - | - | ||||||||||
| Adjusted EBITDA | $ | 35,334 | $ | 29,630 | $ | 101,576 | $ | 92,865 | ||||||||
| Less: | ||||||||||||||||
| Non-Fee Related Income | (248 | ) | (94 | ) | (2,182 | ) | (410 | ) | ||||||||
| Fee-Related Earnings | $ | 35,086 | $ | 29,536 | $ | 99,394 | $ | 92,455 | 19% | 8% | ||||||
| Fee-Related Earnings Margin | 48 | % | 51 | % | 48 | % | 53 | % | N/A | N/A | ||||||
| (1) Fully Diluted ANI EPS calculations include the total of all common shares, stock options under the treasury stock method, restricted stock awards, and the redeemable non-controlling interests of P10 Intermediate converted to Class A stock as of each period presented. | ||||||||||||||||
Notes to Reconciliation of Non-GAAP Financial Measures
Above is a calculation of our unaudited non-GAAP financial measures. These are not measures of financial performance under GAAP and should not be construed as a substitute for the most directly comparable GAAP measures, which are reconciled in the table above. These measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these measures in isolation or as a substitute for GAAP measures. Other companies may calculate these measures differently than we do, limiting their usefulness as a comparative measure.
We use Adjusted Net Income, or ANI, as well as Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA Margin, Fee-Related Revenues, Fee-Related Earnings and Fee-Related Earnings Margin to provide additional measures of profitability. We use the measures to assess our performance relative to our intended strategies, expected patterns of profitability, and budgets, and use the results of that assessment to adjust our future activities to the extent we deem necessary. ANI reflects an estimate of our cash flows generated by our core operations. ANI is calculated as Adjusted EBITDA, less actual cash paid for interest and federal and state income taxes.
In order to compute Adjusted EBITDA, we adjust our GAAP Net Income for the following items:
- Expenses that typically do not require us to pay them in cash in the current period (such as depreciation, amortization and stock-based compensation);
- The cost of financing our business;
- One-time expenses related to restructuring of the management team including placement/search fees;
- Expenses related to the debt refinance completed in August 2024;
- Acquisition-related expenses which reflects the actual costs incurred during the period for the acquisition of new businesses, which primarily consists of fees for professional services including legal, accounting, and advisory, as well as bonuses paid to employees directly related to the acquisition; and
- The effects of income taxes.
Fee-Related Revenues is calculated as Total Revenues less any incentive fees.
Fee-Related Earnings is a non-GAAP performance measure used to monitor our baseline earnings less any incentive fee revenue and excluding any incentive fee-related expenses.
Fee-Related Earnings Margin is calculated as Fee-Related Earnings divided by Fee-Related Revenues.
Adjusted Net Income reflects net cash paid for federal and state income taxes and cash interest expense.
Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total GAAP revenues. We use Adjusted EBITDA Margin to provide an additional measure of profitability.
FAQ
What were P10's Q3 2024 earnings results?
How much did P10's fee-paying AUM increase in Q3 2024?
What is the significance of P10's acquisition of Qualitas Funds?
What changes were made to P10's credit agreement in Q3 2024?
Did P10 repurchase any shares in Q3 2024?
What dividend did P10 declare for Q3 2024?
