Lazard (LAZ) Q3 2024 earnings summary

Executive summary

• Firm-wide adjusted net revenue reached $2.1 billion for the first nine months of 2024, up 24% year-over-year, with Financial Advisory up 39% and Asset Management AUM up 8% year-over-year.

• Q3 2024 net income was $108 million ($1.02/share, diluted), up from $7 million in Q3 2023, driven by strong Financial Advisory growth and a $114 million property sale gain.

• The firm operates two main businesses: Financial Advisory and Asset Management, both contributing to balanced profitability and resilience across cycles.

• Investments in talent, technology, and new product offerings, including active ETFs, are supporting future growth.

• Completed conversion to a U.S. C-Corporation in January 2024, broadening investor eligibility and simplifying tax reporting.

Financial highlights

• Q3 2024 net revenue was $785 million, up 50% year-over-year; adjusted net revenue was $646 million, up 21% year-over-year.

• Financial Advisory Q3 net revenue was $371 million, up 39% year-over-year; nine-month net revenue was $1.24 billion, up 38% year-over-year.

• Asset Management Q3 net revenue was $294 million, up 3% year-over-year; nine-month net revenue was $875 million, up 2% year-over-year.

• Ending AUM reached $248 billion, up 8% year-over-year; average AUM for Q3 was $246 billion.

• Q3 2024 adjusted operating margin was 12.6%; nine-month margin was 13.7%.

Outlook and guidance

• Management targets an adjusted compensation ratio in the mid- to high-50s percentage range over the cycle.

• Asset Management business anticipated to benefit from lower rates and increased demand for active management.

• M&A activity expected to strengthen further in the near to midterm, with private equity participation rising.

• The Lazard 2030 strategy targets doubling revenue by 2030 and achieving 10–15% average annual total shareholder return.

• Liquidity and capital resources are expected to be sufficient to fund current obligations for the next 12 months.