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.

• Revenue rose 15% year-over-year to $5.2 billion, with operating income up 23%–26% (as adjusted), and diluted EPS increasing 2% (5% as adjusted), reflecting strong organic growth and higher performance fees.

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

• Operating margin reached 45.8% as adjusted, up 350 basis points year-over-year, with technology services ACV growth at 15%.

• Share repurchases totaled $375 million in the quarter, with dividends per share at $5.10.

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 GAAP operating income at $2.0 billion; adjusted operating margin was 45.8%.

• Net income attributable to shareholders was $1.6 billion, with adjusted net income at $1.72 billion; diluted EPS was $10.90 (GAAP) and $11.46 (as adjusted).

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

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

Outlook and guidance

• Management expects continued strong organic growth, especially in Q4, with GIP expected to add $250 million in management fees in Q4 and about $1 billion annually in 2025, with margins above 50%.

• Planned acquisition of Preqin anticipated to close around year-end 2024 or Q1 2025, enhancing private markets data and analytics.

• 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 integration costs.

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

• Forward-looking statements highlight risks from market volatility, integration of acquisitions, and regulatory changes.