EVR - Earnings call 4 2023

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Operator

Good morning, and welcome to the Evercore Fourth Quarter and Full Year 2023 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by Evercore management and a question-and-answer session. [Operator Instructions]. I will now turn the call over to Katy Haber. Managing Director of Investor Relations and ESG at Evercore. ahead. go Please

Katy Haber

of Good today operator. XXXX thank for Evercore's you Results ESG. Thank Evercore's morning, Fourth us Head Haber, Katy on Call. Year Relations Quarter joining and Conference you, I'm and Investor and Financial Full

quarter today the we announcing CFO. and call our John Weinberg, our for full up issued the prepared release remarks, and questions. Joining CEO; call our fourth financial Tim today, and a XXXX me press results. Evercore's is on open Earlier LaLonde, After Chairman year we will

of Our of to webcast discussion XX for evercore.com. is this our is and For conclusion of approximately it This beginning our after results days, the archive of in at live call. the available hour will today complementary section be website being which press website Investors release, available is X the conference call our on an

important make forward-looking performance. annual want remind risks to During our to presentation you number meaningful forward-looking statements the that financial are call, the quarterly factors In unless we statements. that adjusted measures indicated in to are company's reports measures, company Form there will those filings make X-K. I no evaluating reports may we discussed our from on These forward-looking to, of duty any non-GAAP discussing the course when these subject indicated, this a of SEC, limited on actual are cause including of current with statements. update XX-K, Any not that materially report include, today, statements. otherwise we uncertainties, which be believe Form Form XX-Q on in differ and assumes factors the we and are to a conference Evercore's outcomes those that but and various could are number

financial our disclosures contained which to posted detailed reconciliations, our on is should the website. measures press within GAAP and these the you data on For release, refer

evaluate Evercore's basis. performance is important to that believe to annual on continue We it an

As transaction noted our for previously, John. the any timing are results I of particular now closing. to have turn quarter the over we will influenced by call

John Weinberg

Thank significant relationships ever investment the continued We Evercore, Senior XXXX. market universe. in Advisory Directors, our business. which environment, franchise you, year coverage momentum, had class firm Katy. was Managing of largest the a Despite and and and into by to diversifying continued morning, we've our XXXX Good of client challenging we hired everyone. for strengthen gained expanded our investing our and

group focus exceptional business positioning us to of competitive continue with expect the hire provided investing we and talent, in and this Our strategic opportunity our new to XXXX. in

past decade, the we've significantly capabilities Over our deepened transformed have broadened the firm. which and

which to being in in diversification of of leader our virtually heavily our a revenues. M&A we businesses always real do, led has a scale. This invested business, built what Aside build-out has market been all which from the in core to we've we've significant

positioned fact, are in in X/X of to banking, areas which revenues our nearly ability In provided This with all of sources. has service comprehensively the non-M&A has fourth history. strengthen. believe internal our backlogs our today the based Today, in other largest as investment again to globally Advisory Fees. our We once point better us we bank growth came from XXXX, clients us investment continue on any at than more than positioned

to and levels external and we hires expect SMD and see When activity ramping higher an better increase our in productivity internal over environment, promotes, base of our coupled a comprised current time. with and firm's market both

last the what we're and off into encouraged We Activity are momentum year. confidence have now year, the towards end we new by levels see. and building a continued to we month of improve, saw

backdrop XXXX involved M&A been largest date. most improved raising remain and markets. notable very we've for hopeful in a that operating as far, transactions We some and to present the So active firm, the capital and of an will

However, the the it of could and geopolitical monitor economic and an we strength to uncertainties alter still that early is timing days, continue M&A closely and recovery.

As a a result, we expect slow to recovery the be build.

want touch to further our businesses, I Before activities. hiring on our discuss I

our board capital quality some on services, newest real Evercore. with U.S. XX expertise. the their coverage, significance SMD areas Advisory sponsor additions, areas include in all of estate pleased technology bankers to These We're Europe, bringing highest and in respective both of strategic industrials, of and business advisory,

based talent needs we maintaining strategic XXXX, our at while high active market in and continue will to the Looking on be recruit standards. our

from and business critical promoted Advisory SMDs our to as growing build-out. newly business. high-quality will enhanced various bankers XXXX X as service talent in client allow remains our us developing within of well coverage This to Additionally, our Equities sectors base. to capabilities across with our expanding in provide strategic and We one begin group

we of About Advisory SMDs from promoted what's and committed are group. XX% further the our had to been inside this organization, growing

and quarter Let a now of me on year. highlights minutes spend from the couple

a availability As financial large operating environment. our XXXX, improve. reflect in financial announcement M&A in full and In minutes. activity industry-wide activity Nevertheless, notably subsequently remained year discuss fourth below transactions. credit M&A among up challenging started we the will our quarter, levels, in discussed, and levels confidence sponsors. results historical few results detail picked to with particularly previously some metrics Tim a

announced value global XX%. was year, based M&A deal the down on activity For almost

announced up M&A involved for and of due In advised XXXX. In Aon global the for deals, we NFP XXXX, measured of few deal its of to on were U.S. transformative activity fourth the were Steel XXXX. XX% second $XX Nippon the largest over to on Evercore billion in transactions, Steel the late This year into to part $XX.X by announced in its was all the weeks of in in XX which of continued we on billion. X momentum $XX.X on billion first has its several half sale value sale year. specifically quarter, the Chevron for acquisition versus including announcements If prior Hess, as

its Ansys, which deal Synopsys of acquisition largest $XX the X global largest is have advised the announced We on year-to-date. transactions, billion of strategic including on

$X.X we advised merger billion to global partners BlackRock its Southwestern on Additionally, Energy. billion, Energy with sale infrastructure $XX.X its and for on Chesapeake

we mentioned continue sponsor we As on coverage make to our efforts. last our progress earnings call, in

For XX% businesses. has XX% capital the last in revenue deals of our our Advisory private sponsor-related, been to several years, including

had European quarter Our Group and and time elongated. despite enter very a and remain healthy we XXXX, as lines year team Advisory a solid The closing has continued challenges. yet execution macro pipeline geopolitical

region, the We and there. expanding are focus excited about in on opportunity continue the to we set further

market businesses fourth priced quarter, the product driven fund are security, continuation marks ever which our capital fundraising collateralized In we private was finished Our fund XXXX new capability. part advisory activity leader. by first the a addition also of in a robust which note. we the This and strong successful on obligation in

private our second its year fundraising Additionally, ever. had best group

our for advisory businesses private continues Demand to capital grow.

as near Our strong internationally. record the in levels, campaigns strategic defense continued had business both U.S. and year activist a shareholder advisory and

yield markets and a and with underwriting, our part management our not in Of nearly of quarter pace by opportunities. As strong business equity Activity billion restructuring robust runner continued the in for activity the for the activity strong in pipeline XXXX quarter elevated, a a challenged interest GE for were of remain note, level large the In another year. offerings. or we market In We're book full left at were sponsors. the rates runner fourth the all did Healthcare to fourth we our or offering business Technologies. a the lead hoping underwritten a had beginning on results year. driven among were on year, see many book $X.X liability

as We remain focused market to on underwriting as and on our share products our by continuing improving position well sectors across deals. elevating diversify

in equity market closed franchise additions volumes, last continued years. of we quarter the and analysts sectors policy. public well the Our as consumer strongest the low X and volatility recently announced with performance year top-ranked out in Despite fourth technology biotech, its in the as

under in the the quarter Management, ended our highest the assets at $XX.X Lastly, is is which point since month-end billion, inception. Wealth AUM business management

Evercore, for another what accomplished. was XXXX are proud the challenging industry of and we've we While year

for As enhancing focused capital. deepen firm. excited a to as by well lie we on new intellectual we're plan products our remain capabilities We executing further ahead the and continuing expand in, invest opportunities and for strategic the our our year, as begin that

turn the over call Tim. to me let that, With

Timothy LaLonde

Thank John. you,

an as challenging some crisis. well quarter in stabilization operating further Our revenues reflect as levels over the since we the global In activity one most financial and in the for business XXXX, results increase environment seasonality. generated in fourth of financial markets in our of areas net billion several $X.X

a have continue John levels much throughout and last in year mentioned, to streams among and year. ended the strengthen, and the activity last our solid results particularly We strong diversified situations. larger note, provided significant revenue As quarter, of we see on support

the to year. impact over and a timing from are note and is this latter be part of it year of immediate, larger The expected financial that important time. not until transactions following not the these build recognized However, to but is will perspective results many close to into

will discuss I quarter our financial results. full now and fourth year

income million, For million on a were 'XX, basis operating net the $XXX share, revenues, per and EPS of fourth $X.XX quarter $XXX GAAP and respectively.

were income the $XXX $X.XX on which useful when operating focus non-GAAP evaluating here from million $X.X For per respectively. metrics, full and we a year, our billion, are share, believe will GAAP comments revenues, My on and basis net EPS results.

our found On billion reconciliation results of to of press last of in $X.X GAAP a of be which adjusted release, XXXX. quarter on year net basis, compared adjusted fourth million Our reporting year. adjusted website. the Fourth a X% versus quarter XX% and declined standard GAAP revenues net to declined full $XXX revenues is our can

last operating per fourth of adjusted $X.XX XX% income decreased earnings XXXX. quarter to of quarter fourth XX% Fourth of the decreased year. versus Adjusted the million $XXX quarter share compared

operating versus adjusted earnings share decreased full the For decreased of year, the and $XXX adjusted per $X.XX XX% full of million year income XX%, XXXX.

and year. margin full operating quarter for the XX.X% fourth adjusted the was Our for

for Turning quarter have Fourth estimates, $XXX our X% were quarter year-over-year. compared decline down Underwriting to By market were Adjusted XXXX. the million our to Fees year. the down businesses. XX% $XX Fees Advisory of billion share of year, were compared XXXX. adjusted million Fees XX% of $X the we to an fourth again increased quarter Advisory full Fourth this

did that year, full levels normal Underwriting last the was for pickup down fourth activity we experience For issuance million, issuance quarter, the year. hoped for $XXX strong below Equity X% year well versus for. and had revenues the not were last

in team reflected in see to markets were strong a of mentioned, years. $XX normalize. million last our have related which, will as John revenues fourth quarter as up in X and a strongest revenue and quarter Commissions believe year-over-year, our place pickup We in the fourth the X% the begin we

revenues of Commissions Administration Asset increased to revenue compared a adjusted $XX X% increased full quarter XXXX. XXXX. and Fourth the year-over-year, million Fourth $XX XXXX. while million, to full were compares other which $XX a $XXX year, $XX gain year quarter million Management compared was related revenue of X% quarter of million For and of down Fees the of million of in approximately adjusted net to fourth XX% gain

For year. compared last the loss a adjusted was gain year, other revenue net to of of a $XX million million $X full

on significant mentioned prior driven year-over-year, X by I the As calls, factors. primary year, swing was

X/X to of income higher approximately in short-term recognized rates net due interest the First, gain XXXX. we was and XXXX

from portfolio, our year. as in balance gains market hedge values which as is was a the Second, commitments DCCP used increased for funds investment significantly equity our in the

last to partially offset primarily markets. currency foreign between gains by this minor due in year's were large the year's These adjustments. difference is number The equity and returns

the for Turning expenses. ratio to compensation fourth XX.X%. quarter adjusted was The

ratio comp adjusted reported year full XX.X%. was Our

of full ratio year and mentioned, would second ratio estimates. provided consistent we of Our call. quarter's XX% expected be the ratio with I earnings third quarter year our When last XX% the I the quarter representative on of commentary full generally comp is

the of I our prior last earnings weaker the the As of hires, level mentioned awards, on increase strong our compensation. for byproduct senior environment, call, year We the revenue year do amortization fourth ratio. market and start in joined had and a of new onboarding is higher their new in the recruiting ratio a late quarter not which hires quarter's recognized additions our the accruing year, compensation for arrive. they of date XXXX, in to the compensation through and begin contributed SMD year-end, until we Most advisory we from our new

a compensation among our environment ratio. expenses. cost factors. will We and Fourth will of continue depend our the revenues, quarter were non-compensation it year to improvements up on of in the strive to $XXX from on magnitude Ultimately, Shifting other million and ago. improvement to non-comp timing XX% make

operating full million costs expenses. the and in were year, also other For related higher research fees as primarily up license XX%, non-comp by of travel as expenses, driven and $XXX well increases

reflected Without ago this, a from been reminder, of non-comp expense of a a in reversal XXXX, year-over-year. As in a in X%. non-comp larger non-comp meaningfully the resulting increase the net expenses which increase our a our decreased have impact year liability, approximately would expense

was which the points travel X majority the other impact These accounted for for accounted expense The expense, items, the XX% the and significant reversal of normalization percentage about increase. increase. the X travel of expense

expenses XXXX, non-comp about head the to higher they prior in still per our While year, relative were than X% lower year. the pre-COVID were

for full year. down year last tax the was rate XX.X%, The XX.X%, slightly adjusted quarter the rate to also down Our adjusted versus relative tax year. prior was

to Turning sheet. our balance

cash of investment the billion, last $X quarter. securities from which and is As about up end at of December totaled $X.X XX, our billion

including strategic current solid footing. and strong to business consideration continue needs environment, plans economic and We initiatives a preserving into our taking the maintain a the cash financial for cash of hiring implementation position,

total returned shares average X at million to of For the year, $XXX.XX. dividends repurchases full million price $XXX.X an shareholders we through of a of and

increased a Relative quarter adjusted XX.X diluted fourth Our ago, share share is year to down our count count million. to slightly.

return shares the grants. capital to has offset We year-end remain repurchasing to from RSU not dilution our bonus Our committed philosophy changed.

based return we a capital share ability our and and goals, coupled strategic cash strive to needs that, our with dividends maintain sheet. on Beyond to through balance durable repurchases

mentioned, backlogs John our strong. As are

lines, momentum bring. what our strength and We and business year are look across to of forward number this a seeing next will we

the we'll questions. that, With open now for line

Operator

Instructions] with comes Yaro first from question James [Operator Sachs. Goldman Our

James Yaro

Dealogic versus a reach not large fairly completed revenue So fourth quarter. the that's in magnitude by quarter explained the the if I magnitude did look the Dealogic, at this

January. specifically, which So in year-end of businesses so on restructuring the to non-M&A have then maybe the speak just then could well the obviously, you performed quarter the sustainability and into just these? improved and towards Advisory backdrop, financial the and of financing conditions And

ability elevated restructuring So how XXXX? to into should the level an we about for at think remain

Timothy LaLonde

Sure.

the So let me start with question. Dealogic

they And then deal so algorithm way -- that that look and the at revenue. that an estimates they is have announcements calculate they

differs where X And revenue. of portfolio there's although to course, across from not to that's the so always the areas they're happen a potential is, as you've every almost effect algorithm I for the but number in a hoping transactions One it's case, discrepancy. know for actual that's, of relatively extent, close, going And seen. large

up our it advisory capital is thing pick business. Second doesn't

And seen. business, any advisory advisory year capital includes discrepancy PCA strong so had might a and strong and those a PFG perhaps estate really that businesses of quarter. And particularly normal and very the course, capital have real would as well. And widened have you

John Weinberg

question We restructuring No, and let traditional year creditor we've forward. good very last well is management business feel good our year up the XXXX going It's business me are our pick strong our The because actually into really business. restructuring very about a also quite and going also. diversified. bookings The liability built on out business prospects as business. strong as had debtor

It's that through we will of continue that, one year. think and business the we its the strength the going think into have momentum. year will generally, So that businesses

Operator

come Mitchell Our from Global. Jim will next Seaport with question

James Mitchell

question a on investments. maybe and Just headcount the

guys heavy a look at of X%. was you on growth, it sort the net headcount But year. SMD You side, digits, think I -- mid-single investment was total if count head it

So are net how implication about 'XX? about productivity? you in for think thinking the hiring how do And we

John Weinberg

are we the imperatives, looking strategic where that. way move the is think we areas we we have we at -- think hiring that our into about Well, all and

a very with to pipeline have in strong We respect going hiring.

decisions make go. we as will We

responsible are we trying hard sure about are very that make headcount. We being also to

really the are in making leaving in some that are process. also coming sure we And we're and so that people manage there

managing the going sure to We we that to definitely in head actually we make to we're our best clearly is count to actually market, in where to numbers it's commensurate forward. are opportunity. continue and responsible be going to firm, we're think grow I about that trying grow think for our going the going productive are way be and our the with think we

Operator

from will with Kenny Our come Morgan next Stanley. Ryan question

Ryan Kenny

Was the thoughts year? the the the ratio. to to improve number against said comp when And want full against XX.X% quarter? any year on comp or to towards the just ratio this ratio where that you on to expect So you on continue that number for clarify head want for you comments the that XX.X% fourth

Timothy LaLonde

Yes, answer Thanks, both. sure. short is Ryan. The

the as comp And there most quarter know, to environment. XX.X% of important we're I on was the revenue With SMDs. the to high, to we number of fourth think the of was that improve what striving and unusually that the are on some all extent is, into factors all a back-end feed new ratio absolutely respect due XX.X%, arrival our loading that. to is the number

landscape, So improvement that our think, certainly, there. with the to expect we some revenues, And hopefully, we the would see along to extent is that, improving.

Operator

next Our with Wolfe come will Chubak from question Steven Research.

Steven Chubak

start risk wanted that's on willingness what or impacting macro off derail geopolitical, to both recovery and for terms sponsors that of of could more what potential biggest broadly, the I some are And the maybe whether question strategics with M&A the just transact. in a C-suite? election 'XX, to you're just from election, hearing in how

John Weinberg

could damper that, that is impact. doing is right the Obviously, and it's We be backs the past, with regarding somehow this We don't see geopolitical. every election deals. we election. a dialogues concern that economic now But anything risk To election. putting the many don't would geopolitical elections haven't more the actually heightened big different I think impacts happen really respect there really I people's the certainly in on people think right is a we think anything to is economy in now really market risk, into respects. biggest a or if the had this date, classify it going year, also know is think willingness in that different to which it's a The as the effect, major what's going anything year. as and Obviously, up. But don't there election interest strategic really else is thing in than

And I with that. think think most would we're agree the that I actually people watching. that's all thing

Operator

we have Hawken UBS. with Brennan Next,

Ben Rubin

year. last Brennan. This related to close on a in hires My strong Ben for incremental is filling from the question to Rubin, year. the is Congrats

a last result your expect a So revenue you've of as those result? impact the baseline we as your added, leverage what from the about revenue to x increase corresponding incremental Advisory is percent, about the for is campaign hires the growth that of to well we think up as XX SMDs best And operating way result? a the if recruiting comp how Advisory comp successful as think could growth should as example, in of what impact type So year?

John Weinberg

And Well, result and in coming revenues and I'll some hired, they're second. excited really part firm. let the people the of take question, let take as me running cases, in the of inside hitting ground presence the about. their already Tim first we've the The we're a

think years a X X.X most part, coming takes a for And years should to people of in between you it the ramp. usually, For in, full ramp-up.

of Some you not think But coming as it about the long. to a of ramping these I in, as in. should think are take said, nearly that going we've brought people talented people consistent I that

the so will revenue happen. And growth

As you somewhat this business also lumpy. know, is

the couple little big bit of of there's You between and bring then time deals. couple next a in deals a of

looking is think addition talented that consistent at that lead base. our people. I so over should to you the time, in revenue the most of And what for be should And build part,

on up how the up revenue itself very of levels the in go of goes revenue our busy all how In banker and the per market banker, depends is, terms much and materially aggregate. really as revenue active per market that

Timothy LaLonde

you just at that look to partner that's bit putting Advisory One a Sure. And can and was which be a of our almost headcount, the and if in a reflection would by productive Advisory headcount on few a partner it. potential would capacity. I see it expand peak our XX%, numbers around compare has increased revenue little you year, increase XXXX, you

headcount to years X back seen has go XXXX, have to were would increased our you XX%. Advisory you about partner If

that's, more returns good when think, for And news market levels. we the so us normal activity to

those standards X I adds speak modest look headcount that, those doing amount. And we out partner Beyond by at for bit firm-wide which year, headcount would to overall this point statistics We XX were a historical is, X.X%, was up both us, ways. little productivity relatively our productivity. that a while of

basis, One on is partner impact per both on banker a cycle. a a basis, and ultimately which another revenue throughout margins is revenue of per

so And as of we we've there a increased head is what productivity process headcount, the done managing our think favorable in into, rigorously more hopefully, hopefully environment. we

XXXX million generally you If the a end Advisory to partner outlier, partner low peak $XX what those across you per the they look per at would was million see of head. anywhere XXs. cycle, partner would million XXs low an you market, from per the see good $XX statistics or in partner head. north productivity, is lower us But the was revenue the for generally, ranging head ballpark, on in somewhere $XX

And the we when returns. positioned like we're feel for so market well

Operator

[Operator will with Instructions] question JMP our Ryan next Devin from Securities. come And

Devin Ryan

from just want year-over-year. XXXX, flat since In strategic year to bit Corporates sponsor XX% dig versus year-over-year. I was sponsor our roughly down little on about were data dynamic. slowest a the were XXXX. announcements That the in

around so and a which necessary behaving recovery in can broader Or little sponsors with corporates, right be, recovery to you But moment wanted I Are mentioned, being to sponsor be a is you the as seeing a having whether continue this with backdrop? quite corporates kind may just that do little for of Evercore. corporates of better for seem And now? perhaps well market. I sense does know well from out a are get you Evercore with bit a quite to

John Weinberg

require be is will that be it ramp. a sponsors. be see recovery we will -- a in we strategic as slow. side, up there the market of on Sure, the that believe the think sponsors to XXXX, there there XXXX, going will We full think engage. And start really we was said, as Devin. warming of think But We the you to

have We've done good very the transactions ourselves We and good. inside off gotten strategic frankly, backlogs the the some a building. are to side. The type strategic on dialogues start very are strong very firm,

will lot the be of whole we start do at believe I level activity. may There's of happen. think but in. begin capital delayed, to start that just sponsor pressure to really the flows kicking need doing series to a sponsors LPs There's want back. a they that some

So we think happen. it will

We a will believe decent on start strategics. productive. to that get activity off satisfactory think We to we really that busy there be and will us keep

I sponsor be the going for overall is important though, think the side market. to

I'm know, revenues from activities. may XX% sponsor-related you advisory as private As activities capital type as That or XX% the side. do, M&A sure is our you well and of come

So many as it firms. clearly think to is is important I it to us

Operator

Our Mike next from question with come will KBW. Brown

Michael C. Brown

thought cycle you do shift going mentioned easing. think, had X I this step multiyear restructuring look about a you set horizon? And with what little the will than activity. feel like On and months think that over is they're restructuring, a banks like, It you ago central management good we a opportunity maybe we the softer take looking to ago. back, liability or If to months the X like looks

years So potential over think just some the could compare color could be activity great more how revenue you coming it the on would to think you XXXX? get progress this to and how

John Weinberg

strong be if in and necessarily will structure there that, are people liabilities. there we management larger in in think in of through helping 'XX not getting involved bankruptcies, there activity, actually ahead, high. companies down, to grow. but increasingly, course the of said in Having their be lot some balance Granted, year there bankruptcies, we As quite helping at at we rates walls will activity a system. looking the rates come and And sheet a general see be bankruptcies, themselves be restructuring. that liability to 'XX. we've still The the And will their going think and less looked it's year in distress although and pretty we're are of the out to maturity are how

And will expecting look a is going we also. that feel in being extend year. business, and itself their by quite We we're restructuring healthy future market that, the it's about actually to as so for really And defined at what positive be impact. think quite our really our how group we the

Timothy LaLonde

add like that of in context, years really recent Right. be feels to The would higher the seen only put I is historical And what years, thing cycle perform that the used to fees ago, restructuring in opportunity raised we're in kind to the famine points John M&A has the throughout restructuring think an rates, one more if you strongly for other. still reasonably is it cycle. was a I environment. It this about rate for we've that higher

for so deal a raising period having to at and and and have So higher an experiencing in even rates very alternatively lot could still lot a environment very refinance put companies a environment, is are of environment, restructuring higher rates some we a on solid of time. that were variable reasonable which which in or capital reasonable, economic is debt of at low interest now rates

Operator

from come will Sachs. with question James next Goldman Our Yaro

James Yaro

the So X.X was constructive it Maybe MDs could true of I you talk versus very ramp think in those that internally about your promoted are ramp that hired differences to it's I also XX% for externally. that hired promoted internally. MDs the you thought between X externally. are gave just And the years

John Weinberg

powers. looking level quite what really lateral frankly, think and and to we're the for pushing the really Well, their really they've get sense the longer talking a in productivity time. of height A been and they're fully cases, dreaming client a they're at internally obviously, in which quite base. for with about And because, some ones promoted high coming people learning. in bit transactions, to have times, and laterally, little they already about the come They who I and in growing take many are with they're that developed lot of

say that a, I probably as how ramping number it people longer, the promoted are from X takes put really but been think to X.X longer. right about the much think laterally hard have the years so who for to a conservative for is within. who to I coming to and maybe, safe And -- people really And it's

Timothy LaLonde

years addition internally. our is who in were actually you books And speaks the second bit highest little improved And to the a partners. they into to I things. our Right. that, better franchise, think people strengthening than is, a would an public, a the proportion to if develop might healthy people I is that got I think, of have X they've our think promoted of been to ability time partners producing card our productive we calling ago. or are have see X what XX One very over And to so open had

John Weinberg

parts that most the culture growing of aspiration grow. to allow a of of really firm people create and to to really to real they think the One is important have opportunity

of within, hiring people from is And a culture the our growing so within, from should part is what promoting Evercore critical be. really of and

a who is their and opportunity in environment to have a very really themselves In creating addition, where way people and also great do part. grow come find an laterally fulfill important

ties all in it culturally. So

Operator

Research. question another have with from Wolfe Steven do we And Chubak

Steven Chubak

that years been meaningful year. performance, just And The I a to outlook, ECM. will range you wide. challenged over 'XX the specific past just whether revenue on few was your be you was could active? bit as a in has anticipate envisage sectors incredibly the outcomes less more or any this speak just hoping you you First, noted, ramp as of

John Weinberg

building. in We actually that starting XXXX actually see we We have year, deals off was of that's new a a to We've start. it and see off We building. agree, disappointing. book business a good XXXX the Steven, been few reasonable

to predict really are quite come this continue. out, real exactly there's going strengthening optimistic to And but where we a we and so think hard that actually will it's it's

Operator

have do from Mitchell We Global. Jim follow-up a Seaport with

James Mitchell

Maybe just, to year any of headcount the growth? the on given for outlook Tim, the takes growth thoughts non-comp be versus puts and efficient trying this

Timothy LaLonde

Yes, sure.

$XXX about way, about I which is the just and And last our I increased -- guess $XXX for full year, is from it call, so way the million the this think noncomps on million to year XX%. clarity by

remove comments, about you the were I increase we I a due of year's reversal have travel. the do area. probably normalization expense them, would the if this percent my million there's $XX are in things. travel of few taken those things, One that of to taken really outlook combined X% have in would to heard for As will year? X the the continued normalization X at some XX-plus you Where think think see last we and and down of -- increase non-comp which is

see increase there. And expect so additional I some would to

data-driven of pricing course, world. environment We also got have to providers where influence data in are are living on some the we've And very power. able a an

year, still correlated there continue last What so bit And expense head little is increase firm. bit as below a levels. relation respect but some with increase a and though, on could as would to we head that over modest probably there, count noncomps up be the increase X%, you are within highly see a I per some you noncomps what basis, our note, they to if lease about would is with are pre-COVID headcount at to look modest of grow little

feel job years. like X those I last pretty or on over so per controlling a head X good done these a And we've basis, of

Operator

Devin have Next, with we Securities. Ryan JMP

Devin Ryan

Just ask elongated wanted side. the time I on prepared that the still lines they're and the heard about remarks deal more to

to of activity. just all at wanted that's here improvements the some just been I so improving with if and tone in And

elongated, Or keep So or they deals otherwise kind are on but to occurs, else inevitably moving or typical prior really, of is is dynamic macro the just something in that in just than will the slower that going may broader as continue would the market here that recoveries? recovery lines this shrink? M&A kind recovery of time with there

John Weinberg

are will taking continue that really side the and something out do lines people think point to I to be regarding time longer a always is There's more go regulatory foreseeable concern forward. that the to as really time companies is sorted taking that get elongated analysis. Financing this for antitrust. at And future. that the

finish. think to I strategics the run are honestly, urgency feeling that the to tremendous

I time. it's take some think to So going

elongated expect accelerating I we a ought in for I -- slightly actually is process we to don't continue a into it to all be And it I think ought deal time. the quite foreseeable what some to way future. continue. the elongated think that see frenzy will will really for

Timothy LaLonde

move at of One be time is hope very closing might of that challenged aspect, modestly least do it favorable we in capital-raising though, we was that XXXX, the would and one is elements see And that the a forward. and helpful Right. that, improvement elongated XXXX as environment. there some

Operator

Stanley. Our Kenny come with Ryan question from will Morgan next

Ryan Kenny

rate at has to there how Are momentum and changes through cuts now quarter's transactions more of all pace rate on through thinking the through? the put the things is rate and you since understand of one this waiting the that the last are get amount come help clarity is of cuts? big So more that's happened call curve line cuts finish CEOs get year. Can size potential to Boards us expected companies Or macro forward down? to

John Weinberg

along makes people I think sense, for strategy rates. and going those deals where to far they are think are the I wait don't

be any even But maybe to there's going for liquid. in be that going cut to do that move and will start coming that think will rates cuts that them next. people going don't going rate are the to may deals forward. I I that more the people and in, lower go to certainly and actually think process. kick I think They're to sitting appreciate at rate look are waiting become markets be are as

Operator

of This call. does conclude the question-and-answer portion today's

to closing So the to or remarks. floor for back over additional turn I'd our speakers like any

John Weinberg

all for joining you today. Thank We us it. appreciate really

Operator

XXXX This concludes Call. Earnings and Conference Full Fourth today's Year Quarter Evercore

disconnect. now may You

Evercore (EVR) 31 Jan 242023 Q4 Earnings call transcript