PJT Partners (PJT) Q3 2024 earnings summary

Executive summary

• Achieved record third quarter revenues of $326.3 million, up 17% year-over-year, and record nine-month revenues of $1.016 billion, up 23% year-over-year, driven by strong advisory and placement fees.

• Adjusted pretax income rose 16% for the quarter and 32% for the nine months; adjusted EPS increased 19% for the quarter and 35% for the nine months compared to prior year.

• Net income attributable to PJT Partners Inc. was $22.2 million for Q3 2024, with diluted EPS of $0.79.

• Growth was driven by all business segments, with notable contributions from PJT Park Hill, restructuring, and private capital solutions.

• Completed the acquisition of deNovo Partners on October 1, 2024, expanding presence in the Gulf region.

Financial highlights

• Q3 2024 revenues: $326.3 million (+17% YoY); nine-month revenues: $1.016 billion (+23% YoY).

• Adjusted pretax income: $51 million for Q3, $172 million for nine months; GAAP net income for Q3: $22.2 million.

• Adjusted EPS: $0.93 for Q3, $3.10 for nine months; GAAP diluted EPS: $0.79 for Q3, $3.08 for nine months.

• Ended quarter with $477 million in cash, cash equivalents, and investments, and no funded debt.

• Board approved a $0.25 per share dividend, payable December 18, 2024.

Outlook and guidance

• Management expects continued strong restructuring and special situations activity, with strategic advisory positioned for significant growth in 2025.

• Full-year 2024 non-compensation expense growth rate expected to align with nine-month rate of 14%, slightly above prior guidance.

• Confident in achieving meaningful compensation leverage in 2025 as strategic advisory revenue growth outpaces headcount growth.

• Fund placement activity remains challenged but is expected to benefit from investor demand for liquidity and a flight to quality.

• Uncertainty remains regarding the pace of M&A recovery amid macroeconomic and geopolitical factors.