Janus Henderson Group (JHG) Q2 2024 earnings summary

Executive summary

• Achieved net inflows of $1.7 billion in Q2 2024, marking the second quarter of positive flows in the last six quarters and reversing prior outflows, driven by Intermediary and Institutional channels.

• Assets under management (AUM) rose 3% sequentially and 12% year-over-year to $361.4 billion, the highest in over two years.

• Investment performance remained strong, with 69% of AUM outperforming benchmarks over one year and 84% over ten years as of June 30, 2024.

• Adjusted diluted EPS increased 37% year-over-year to $0.85, driven by higher AUM, positive flows, and disciplined expense management.

• Closed acquisition of Tabula Investment Management on July 1, 2024, expanding ETF capabilities in Europe and globally.

Financial highlights

• Q2 2024 revenue was $588.4 million, up 14% year-over-year and 7% sequentially, mainly from higher management fees due to increased average AUM.

• Operating income rose 39% year-over-year to $164.3 million; adjusted operating margin reached 35.9%, up from 30.0% in Q1 2024.

• Net income attributable to JHG was $129.7 million, up 44% year-over-year.

• Adjusted operating expenses declined 2% sequentially to $294 million; adjusted LTI dropped nearly 30% quarter-over-quarter.

• Cash and cash equivalents stood at $1.15 billion at quarter end.

Outlook and guidance

• Management expects adjusted compensation ratio to remain in the 43%-45% range for 2024.

• Adjusted non-compensation expenses are anticipated to accelerate in the second half, resulting in mid- to high-single-digit annual growth.

• Tax rate guidance remains at 23-25% for 2024.

• Continued investment in marketing, technology, and operational capabilities to support growth.