BlackRock (BLK) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly net inflows of $221 billion, driving AUM to $11.5 trillion, up $2.4 trillion year-over-year, with broad-based growth across clients, products, and geographies.

• Closed the acquisition of Global Infrastructure Partners (GIP), adding $116 billion in client AUM and tripling infrastructure AUM; announced the planned acquisition of Preqin to enhance private markets data and analytics.

• Revenue rose 15% year-over-year to $5.2 billion, with operating income up 23%–26% and adjusted operating margin reaching 45.8%.

• Technology services ACV grew 15% year-over-year, with Aladdin securing major new mandates.

• Share repurchases totaled $375 million in Q3, with similar repurchases planned for Q4.

Financial highlights

• Q3 2024 revenue was $5.2 billion, up 15% year-over-year, driven by organic base fee growth, market movements, and strong ETF inflows.

• Operating income rose to $2.1 billion (as adjusted), with net income attributable to shareholders of $1.6 billion and diluted EPS of $10.90 (GAAP) and $11.46 (as adjusted).

• Performance fees surged to $388 million, up 454% year-over-year, reflecting strong alpha generation and hedge fund performance.

• Cash dividends paid per share were $5.10, up from $5.00 in Q3 2023.

• Book value per share at September 30, 2024 was $278.32, up from $259.34 a year ago.

Outlook and guidance

• Management expects continued strong organic growth, especially in Q4, supported by ETF inflows, institutional mandates, and technology services demand.

• GIP expected to add approximately $250 million in management fees in Q4 and lift the overall fee rate by 0.5–1 basis point.

• Planned Preqin acquisition anticipated to close around year-end 2024 or Q1 2025.

• Headcount expected to remain broadly flat in 2024, with core G&A expense growth at the high end of low- to mid-single-digit range due to GIP integration.

• Ongoing focus on integrating recent acquisitions and expanding global infrastructure and data capabilities.