Moelis (MC) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 revenues reached $265 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 the first half of 2024 was $32.4 million, reversing a net loss in the prior year; Q2 2024 net income was $13.2 million, with diluted EPS of $0.18.

• 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.

• M&A market recovery, strong public company strategic transaction activity, and robust restructuring and capital markets businesses contributed to top-line growth.

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

Financial highlights

• Q2 2024 revenues were $264.6 million, up 45–47% year-over-year; H1 2024 revenues were $482.1 million, up 31%.

• Q2 2024 adjusted net income was $14.5 million ($0.18 per share), reversing a loss in Q2 2023; H1 2024 adjusted net income was $32.8 million ($0.40 per share).

• 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 and H1 2024; non-compensation expenses were 17.6–20%.

• Regular quarterly dividend of $0.60 per share declared, with $1.20 per share paid in H1 2024.

Outlook and guidance

• Management expects continued client demand for capital structure advice amid higher rates and debt maturities, with a healthy backlog and improved deal conversion speed.

• Sponsor activity is increasing, with expectations for further acceleration in the next six months, especially if rate cuts or valuation shifts occur.

• M&A business is expected to grow at a faster rate, while capital markets and restructuring are anticipated to maintain their combined revenue share.

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

• Financial results may fluctuate materially quarter-to-quarter due to transaction timing and size.