Moelis & Company (MC) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 revenues reached $264.6 million, up 45% year-over-year, and first-half revenues were $482.1 million, a 31% increase, driven by growth across all major product areas and improved client engagement.

• Net income for Q2 2024 was $13.2 million, with adjusted net income at $14.5 million ($0.18 per diluted share), reversing a loss in the prior year; first half net income was $32.4 million.

• The firm operates globally with 831 advisory bankers and 161 Managing Directors as of June 2024, emphasizing organic growth, strategic hiring, and a client-first philosophy.

• Moelis has returned approximately $2.6 billion to shareholders since IPO, achieving a 370% total shareholder return since 2014.

• Notable recent transactions include the sale of DORNA to Liberty Media and the take-private acquisition of ALLETE.

Financial highlights

• Q2 2024 GAAP revenues were $264.6 million, up from $179.9 million in Q2 2023; LTM Q2 2024 revenue was $969 million.

• Q2 2024 adjusted net income was $14.5 million ($0.18 per share); operating income for Q2 was $20.1 million.

• Cash and liquid investments totaled $191.3 million as of June 30, 2024, with no debt or goodwill.

• Compensation expense was 75% of revenues in Q2 2024; non-compensation expenses were 18% of revenues.

• Quarterly dividend of $0.60 per share declared, payable September 26, 2024.

Outlook and guidance

• Management expects continued client demand for capital structure advice amid higher rates and debt maturities, with positive business momentum and improved deal conversion.

• Sponsor activity and M&A business are anticipated to accelerate, with momentum expected to continue into 2025.

• Revenues are expected to normalize within six months, even without rate cuts or further valuation shifts.

• Commitment to returning excess capital to shareholders via dividends and share repurchases.