BlackRock (BLK) Q2 2024 earnings summary

Executive summary

• Assets under management reached $10.6 trillion at June 30, 2024, up $1.2 trillion year-over-year, driven by net inflows and market appreciation, with broad diversification across clients, products, and geographies.

• Achieved record ETF net inflows of $83 billion in Q2 and $150 billion year-to-date, the best start in iShares history.

• Strategic focus on private markets and technology, with planned acquisitions of Global Infrastructure Partners (GIP) and Preqin to accelerate growth and expand data capabilities.

• Q2 2024 diluted EPS was $9.99, or $10.36 as adjusted, up 10% and 12% year-over-year, respectively.

• $500 million in share repurchases completed in Q2 2024.

Financial highlights

• Q2 2024 revenue was $4.8 billion, up 8% year-over-year, driven by organic base fee growth, market appreciation, and technology services revenue.

• Operating income was $1.9 billion (as adjusted), up 12% year-over-year; operating margin expanded to 37.5% (44.1% as adjusted).

• Net income attributable to shareholders was $1.5 billion, up 9% year-over-year; adjusted EPS reached $10.91.

• Performance fees rose 39% to $164 million, led by liquid alternatives and long-only products.

• Technology services revenue grew 10% year-over-year.

Outlook and guidance

• Management expects continued growth in AUM and revenue, supported by strong ETF inflows, technology services demand, and recent acquisitions.

• Targeting 5% organic base fee growth over the long term, with strong momentum in core business and new mandates.

• On track to close GIP acquisition in Q3 2024, expected to double private markets base fees and add $100 billion in infrastructure AUM; Preqin acquisition to enhance private markets data and technology.

• Expecting headcount to remain broadly flat in 2024, with low- to mid-single-digit % increase in core G&A expense.

• Anticipate repurchasing at least $375 million in shares per quarter for the rest of 2024.