Siebert Reports First Quarter 2024 Financial Results

Rhea-AI Summary

Siebert Financial Corp. (NASDAQ: SIEB) reported its financial results for Q1 2024, ending March 31, 2024. The key highlights include a revenue increase to $20.5 million, up from $16.2 million in Q1 2023, representing a 27% year-over-year growth. Operating income rose by 18% to $5.1 million. Net income available to common stockholders increased to $3.7 million from $3.2 million. However, earnings per share (EPS) slightly declined to $0.09 from $0.10 in Q1 2023. Retail customer net worth increased to $16.6 billion, with total retail customer accounts rising to 155,499.

CEO John J. Gebbia emphasized the company's progress in advancing its growth strategy and modernizing its offerings. CFO Andrew Reich highlighted the strong revenue performance driven by higher interest income and growth in the Securities Finance division. The company remains focused on operational efficiency and profitable growth.

Positive

• Revenue increased by 27% year-over-year to $20.5 million.
• Operating income rose by 18% to $5.1 million.
• Net income available to common stockholders increased to $3.7 million from $3.2 million.
• Retail customer net worth improved to $16.6 billion.
• Total retail customer accounts rose to 155,499.

Negative

• Earnings per share (EPS) decreased from $0.10 to $0.09.

Insights

Financial Analyst

Siebert Financial Corp.'s first-quarter financial results for 2024 indicate a robust start to the year. The company's revenue rose to $20.5 million, a 27% increase year-over-year. This substantial growth has effectively translated into an operating income of $5.1 million, up 18% from the prior year. However, the earnings per share (EPS) slightly decreased to $0.09 from $0.10 in Q1 2023, an aspect worth monitoring as it might reflect increased expenditures or a dilution effect.

Notably, Siebert has demonstrated strong net income performance, with a $3.7 million net income available to common stockholders compared to $3.2 million last year, which shows a positive trend in profitability. The increase in retail customer net worth to $16.6 billion and growth in total retail customer accounts to 155,499 indicates a healthy engagement and a widening customer base, which bodes well for future revenue streams.

Investors should note the company's strategy to invest in technology and marketing, which could lead to further growth in customer acquisition and retention. However, it's essential to remain vigilant about the potential costs associated with these investments and their impact on future earnings.

Market Research Analyst

Siebert Financial Corp.'s latest results highlight an impressive 27% revenue growth, driven by increased interest income and strong performance in their principal transactions and Securities Finance division. This indicates that Siebert is successfully tapping into lucrative market segments, which could offer sustainable revenue streams. For retail investors, the growth in retail customer net worth and total accounts suggests that Siebert's customer-centric strategy is paying off.

It’s worth noting that Siebert's plans to invest in technology and retail trading platforms imply an effort to enhance customer experience and operational efficiency. These initiatives are critical in a competitive financial services industry where technological advancements can significantly differentiate a company. However, stakeholders should consider the cost implications of these investments and their potential impact on near-term profitability.

2024 Q1 Operating Income of $5.1 Million, up 18% Year-over-Year

NEW YORK--(BUSINESS WIRE)-- Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a diversified provider of financial services, today reported financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Highlights

• Revenue of $20.5 million compared to $16.2 million in the first quarter of 2023
• Operating income of $5.1 million compared to $4.3 million in the first quarter of 2023
• Net income available to common stockholders of $3.7 million compared to 3.2 million in the first quarter of 2023
• Earnings per share of $0.09 compared to $0.10 in the first quarter of 2023
• Retail customer net worth of $16.6 billion, an improvement compared to $15.9 billion at the end of 2023
• Total retail customer accounts of 155,499 compared to 153,727 at the end of 2023

Management Commentary

John J. Gebbia, CEO of Siebert, said “The first quarter represented a strong start to the year and continued momentum for Siebert as we made meaningful progress across our business in advancing our growth strategy and building a more diversified business. We are continuing to invest to meet the evolving needs of investors as we chart the next phase of our evolution to empower our clients’ success. We are excited about the year ahead and have numerous innovation-led initiatives underway that honor the legacy of Muriel Siebert while modernizing our offerings, expanding our reach, and enhancing our competitive position across our business lines to capitalize on the evolving needs of our clients. These include investing in our technology and retail trading platforms, marketing initiatives, as well as exploring new opportunities and business lines for Siebert. Looking ahead, we remain well-positioned to execute our strategic goals while continuing to optimize the business for profitability ahead.”

Andrew Reich, CFO of Siebert, commented: “We delivered strong results for revenue and net income this quarter with revenue increasing 27% year-over-year. This increase was driven by higher interest income, strong performance related to our principal transactions business line, as well as growth within our Securities Finance division. Looking ahead, we remain focused on maintaining operational efficiency and driving profitable growth while maintaining a strong capital position.”*

*Refer to Siebert’s 2024 Q1 10-Q, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for further detail.

Notice to Investors

This communication is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States or elsewhere.

About Siebert Financial Corp.

Siebert is a diversified financial services company and has been a member of the NYSE since 1967 when Muriel Siebert became the first woman to own a seat on the NYSE and the first to head one of its member firms.

Siebert operates through its subsidiaries Muriel Siebert & Co., LLC, Siebert AdvisorNXT,LLC, Park Wilshire Companies, Inc., RISE Financial Services, LLC, Siebert Technologies, LLC and StockCross Digital Solutions, Ltd. Through these entities, Siebert provides a full range of brokerage and financial advisory services including securities brokerage, investment advisory and insurance offerings, securities lending, and corporate stock plan administration solutions. For over 55 years, Siebert has been a company that values its clients, shareholders, and employees. More information is available at www.siebert.com.

Cautionary Note Regarding Forward-Looking Statements

The statements contained in this press release, that are not historical facts, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.

These forward-looking statements, which reflect beliefs, objectives, and expectations as of the date hereof, are based on the best judgment of management of Siebert. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: economic, social and political conditions, global economic downturns resulting from extraordinary events; securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting Siebert’s business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans; and other consequences associated with risks and uncertainties detailed in Part I, Item 1A - Risk Factors of Siebert’s Annual Report on Form 10-K for the year ended December 31, 2023, and Siebert’s filings with the SEC.

Siebert cautions that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact its business. Siebert undertakes no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521127430/en/

Investor Relations:

Alex Kovtun and Matt Glover

Gateway Group, Inc.

949-574-3860

SIEB@gateway-grp.com

Source: Siebert Financial Corp.

FAQ

What were Siebert's Q1 2024 earnings per share (EPS)?

Siebert's Q1 2024 EPS was $0.09, down from $0.10 in Q1 2023.

How did Siebert's revenue perform in Q1 2024?

Siebert's revenue increased by 27% year-over-year to $20.5 million in Q1 2024.

What was Siebert's Q1 2024 operating income?

Siebert's operating income for Q1 2024 was $5.1 million, an 18% increase from Q1 2023.

What was Siebert's net income for Q1 2024?

Siebert's net income available to common stockholders for Q1 2024 was $3.7 million.

How many retail customer accounts did Siebert have at the end of Q1 2024?

Siebert had 155,499 retail customer accounts at the end of Q1 2024.

What was the retail customer net worth for Siebert in Q1 2024?

Retail customer net worth for Siebert was $16.6 billion in Q1 2024.