WETF - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the WisdomTree Q4 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session [Operator Instructions] Please be advised that today's conference is being recorded [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jason Weyeneth, Director of Investor Relations. Thank you. sir. go-ahead Please

Jason Weyeneth

good and Thank morning. you

of Before we Report to A legal this forward-looking number section to not no in Litigation differ to, undertake the meaning XXXX. our Annual in including, of factors of statements. actual from would available forth I forward-looking statements Act in Factors Risk results XXXX. the contain materially like disclaimer may but today's XX, reference presentation limited update Form to the presentation statements, the duty for Securities discussed the forward-looking set cause begin, in presentation. December not XX-K of Private year on the WisdomTree's risks any could within and ended does Reform This assumes results WisdomTree

pleasure to the turn to call Muni. Amit WisdomTree’s it's Now my CFO, over

Amit Muni

morning XXXX walk Jono call turn Jason I'll finally our through for Jarrett you, up the Thank call remarks then to the discuss I’ll some turning quarter, open over everyone. good the for the lines items and to the items over expense important priorities Q&A. then and before and walk for to closing quickly through Lilien

three. slide beginning So on

at Assets markets. and quarterly of under year-end net record management of reflecting continued $XX.X were combination billion the global a inflows strong

inflows We the generated growth. quarter, million of in $XXX net representing X.X% organic

growth we four an of the across in initiatives growth point HEDJ with XXXX, believe and X.X%. are attrition seeing DXJ a DXJ That was our Excluding the inflection and million our organic HEDJ marked lowest outflows represents key we for $XXX level and of half for trajectory. momentum outflows business combined and years.

$XXX net inflows million. the For year, totaled full

five to of positive or growth. total overshadow parts for flows been the and we able for $X.X were have quarter generating past is that funds start. are and our momentum a longer are is X% the off DXJ as quarters first product net encouraging the other year Excluding the two to those in HEDJ completely organic no It solid flows billion platform

led fixed market strength $XXX were generated and quarter fourth XX% equity, inflows by the quarter and inflows. our emerging in consecutive over representing ninth of domestic growth of the organic million Flows the funds. Domestic of equities income

number decile by Flows spread million the very platform. AGGY, of rate outlook. illustrating remains a generated given across flows $XXX XX% and performance of fixed strength, low the which products organic were the our interest and breadth income driven growth representing well of We of top combination positioned positioning

have AUM floating income two our billion products less fixed two of with million than X.X just Along rate years core fund, we now ago. [Ph] USFR, with invested combined treasury after having XXX

small strong for of we has million million continued the in straight demand $XXX For inflows Flows which market inflows. were our caps, products for growth. with two enterprise ex-state-owned inflows January led of and quarter, third funds. Demand by generated representing our emerging nearly saw organic XX% these $XXX into funds

revenue up share. capture or quarter a slide turning had basis, the higher million average $X.XX for AUM lower offset On partially driven shift. income on Now financial AUM by four. due $X.X of GAAP X% just results were under million per $XX the by net Revenues to mix to we

primary through gold in $X million adjusted million our was tax $X.XX quarter was reflecting adjusted increase net the or prices a GAAP charge quarter. the during payments The items, non-operating commitment income future Excluding and this gold $XX.X share. between results after difference non-cash

exit our We million AdvisorEngine. are $XX in currently pursuing an from investment

hope yet a we the financial finalized, XX-K a fourth we estimate to yet charge our time results. by our included which final $XX to March. have While taking is non-cash the million We in impairment quarter, of the $XX not file million not process in is amount in

today, remarks ongoing, in our is process the change any prepared emphasize we or let exit attrition but of organic beyond comment our outlook. drive investment not the asset our Given will me we growth do anticipate can't further

margins slide. to on Turning the next

third Our percentage adjusted driven operating the two in primarily elevated by margin was costs Europe. XX% for quarter which was the from quarter points down

points products of margins average listed for for from were margins Gross XX.X% our listed range. U.S. to XX.X% up our scaled XX XX% XX% to near reflecting sequentially basis XXX declined international the products basis Gross AUM. guidance benefits higher midpoint points our

from reflected new in The our product fee as arrangements the as for with associate preparing sequential Europe. market costs decline Brexit well making impact

next slide, our expenses. change the the you in On can see

was year Fourth the gave For million, sequentially. expenses in operating January. full compensation last resulting with growing expense $XX.X X% just we line quarter compensation U.S. segment, in controlled, remain well guidance

As sales quarter. and increased anticipated, in the cost marketing modestly

controlled our overall million guidance. discretionary in full XX% original below the remained for or well $X coming spending year However, our

Third arrangements with making declined from new Brexit, by increased have. the expenses driven nearly zero. and associated AUM, party benefit the costs reflecting commissions market distribution platforms to that due cutting costs average higher XXX,XXX segment International costs brokerage to we fund higher

drive market at is as it basis Bitcoin attractive economics XX sales expenses driven $X.X associated the were Bitcoin points, early best launch other Launched and of in believe less vehicles in market our it with Switzerland. price by the is and Marketing January, costs the the and million scales. to in Fund than in execution up we half will of sequentially the the fund us

and like Jarrett the President over to CEO our to call I’d Now turn Lilien.

Jarrett Lilien

you, performance case growth little always years of been and Thank for like and that to on believe remarks historically, as good involved that board team, a viewed years the for Amit and I the later company member Jono my the today. case morning than innovation, including two today around a the more XX before focus and be innovation. growth to nine with years standing Having I'd of has directors the performance more I've and discusses been is than WisdomTree everyone. executive

WisdomTree line. are that today. enjoying of at bottom an faster growing a is well To me, inflection tailwinds that and organically margins while positioned we to I momentum the point that the top that. expenses in line successful will expect grows top such parts growth means and line, achieve capitalize on can grow you business accelerate is our than have managing We

The tailwinds also to include, and ETF see XXXX the of firm's advisors, growth performance value, portfolios, track potential priorities penetration I adoption amongst strong our will continued the drive from rotation model that records. a

strategies After time. to excellent a a earned It more approach we early with momentum you short are than our value of that track value, cannot a is where fundamentally shop our record. cut growth have with and signs beginning, essentially record, performance outperformed decade, are over weighted seeing track and core be an we many must rotation

listed ETFs have XX, value have X-star XX, and we Morningstar U.S. UCITS X-star rated strategies. listed and and X-star our Within X-star Amongst strategies. Europe categories, we

plays well Wisdomtree’s for the Additionally, sweet spot. interest for longer lower to rates outlook

income enhance investors environment dividend Fund our of being rated in positioned search extremely which will well all weighted equities many yield Aggregate X-star where Beyond periods. AGGY Its performance our push with methodologies are top well Bond decile positioned. time towards across are of

are building advisors to to the allocate turning look increasingly and portfolios, as models activities client practices. to they as most relationships their managing such their model Regarding value-added precious time

strong and model initiative building Our has momentum. portfolio seen

models. over the quarter, of into During net XXX generated million our we inflows fourth

tremendous we end quarter seen, have Welch our models of XXXX yesterday first the further and might Conference. with believe the last can launched towards collaboration TD Siegel discussed Scott at WisdomTree the our addition Professor you we accelerate we the who Professor has team XXXX. National Siegel in The As Ameritrade momentum the officially joined model of been buzz and

funds. market ETFs Big continued mutual picture versus active for we gains expect share to see

also success the considerable been slower. had WisdomTree. on We've while we’ve While the key in a channel, focus RIA RIAs put where IBD adoption channel recently remain distribution focus ETF for and has

roughly one of advisors LPL, RIAs, beginning We move transaction to relationship program. converge, they're as three IBD are more no In we included but estimate to announced half allocation particularly ETFs fee advisor to in ETFs with IBD models. where sponsors of fee-based the we the our December, that are

and early momentum. it's early with we're advisors encouraged engagement by While the days, LPL the

bottom driving for line line to is focused strong in In addition we order driving strong theme A growth, growth. within reinvest. the remain XX to to business top on deliver efficiencies divest

Recall, AdvisorEngine. commitment our our good exit we prioritization we we growth, announced driven did our drive by fall today, in last an disclosed efficient, and focused disciplined, a in are of job to to from exit remaining and our XXXX. plans decisions our resource operations Canadian These which of stake of to pursuit and

spring, to and Securrency, addition of our initiatives more the earlier, this with to areas ESG the in include we plan In I moment. other XXXX collaboration spoke will invest later a suite a detail Jono which differentiated about launch in

discuss HEDJ, enter momentum also does, let including have over point. We've a priorities inflection past we will again, headwinds XXXX in have he But which at our our of for been quarters before net I an of impacting XXXX and see the years. five four we believe say we as are that me and expenses. generated inflows lot we Amit how DXJ four

our the ETS generated HEDJ DXJ in were favor. inflows since for such five U.S. months, Further, and first consecutive have listed XXXX, when stretch

in listed flows, share to key number they an market products exhibit directional While ability have position one subcategories. our commodities and our European times at can proven hold lumpy grow or

and focus innovation. our growth, performance is Overall,

We will organically and revenues, margins grow earnings.

that forward. to continue continue their benchmarks, to business outperform will strategies propel and to will our We drive innovate we

our XXXX back to more now the discuss turn like in I'd call to to Amit detail. guidance expense

Amit Muni

Jarrett. you, Thank

our I will financial want segments we a going one highlight guidance, XXXX the segment. changing to disclosures discussing to forward. Effective reporting to be XXXX, making change from we're two operating in Before

our products consolidated the in to we segments to out a reporting international began operating reporting disclose two order will We as we continue in data be our greater only. listed Recall into of will operations. European separately, transparency provide results and that but our back on build financial XXXX, basis U.S. for

we manage reporting Therefore, the one company is to asset Now business. now appropriate scale, time as to one that global management are segment. change at the we

on you comments Jarrett’s referring with XXXX, our on guidance slide me priorities our Now to let for chart expense update for the as eight. background

Compensation expense including was for million severance on XXXX consolidated basis. a $XX.X

$XX we a costs current between Gross consolidated XX% were compensation XX.X%. be be margin basis. At expect margins gross mix, expect between XX% million and for to $XX XXXX. on We and to asset

the a In guided of revenue. percentage we as distribution past, fees party third

fees accurate $X XXXX. basis. Going forward, were $X we model think in million it'll this be more to These on

existing fees XXXX online and to to U.S. we to XXXX the lower reinvest new flat platform expect savings brokers global We relationships. the as from from be

to million. spending discretionary expect $XX.X be with XXXX flat We at

paying gold reminder, a on be January price this million. is price $XX.X Based average gold of prices and based of As a the the period. for gold assuming ounces at would the payment of expense times XXth on expense our gold us year XXXX stay flat, spot

the seasonality be expected business, losses from U.K. consolidated slightly removing we from slightly rate. marketing particularly in our expenses to lastly, and payroll Remember there quarter Canada expenses in due fund decline higher selling in tax will second with a the to our taxes, rebalancing. lower higher is our and compensation benefit a And in rate lower quarter first as to the XX% costs to quarter, due and third tax

about down of think our strategic, for to inorganic priorities return capital our we and powder adequate debt, capital, shareholders pay As organic dry it for to dividends, opportunities. maintain our through remains and

attractive stock current repurchasing from While debt as we highly below us is credit view levels, at our our certain balance until level. stock our a agreement precludes

to As balanced with always, core reinvesting remain growth. business expenses, drive on and into future help disciplined divesting controlling focused we our and

call over to like Jono. the turn I’d Now to

Jonathan Steinberg

structure, I Amit, wrote WisdomTree of better technology when mutual and It innovation. to of goes recognized has a on the way back and the ETF all you, morning, good a everyone. it than was the funds. future investing XXXX history and Thank

Exchange. Globally, industry market of a best-in-class of to pioneer including indexing, strategies WisdomTree Bitcoin of since in money. bringing the self first launch the has December product and a Swiss attracted on investor Stock the trillion $X structure the remains leader a ETF was ETP to over many innovation,

regulatory services. financial investment Earlier innovation of token. of classes can issuing is of million compliance-aware identity approval all believe ways technology in compliance. company securities company for support the is compliance and providing particularly issuance, is be Securrency many Securrency. critical KYC, types infrastructure in framework technology at core unique will digital their patent-pending servicing digital instruments. trading financial Compliance, Their focus blockchain. with this a the month, and and we and getting called Securrency’s announced the in a their other core an We financial a on service asset blockchain based AML, $X regulatory on

cases financial of treasuries. one with would tokenized be Working market blockchain. WisdomTree traditional WisdomTree used greater digital this. a represent term, best will launch there within in services, financial and the very Securrency building longer ETFs core the blockchain deal. potential. This existing asset blocks pursuing ecosystem. the is of big issuances These the still I asset opportunity We think term of believe like have be first classes of But existing this services a adopt is near gold versions would We do to will will covering and even

Our Securrency assets. digital ETFs, initiatives, to be are positions and of our what combined that a management. asset in improving are many out At structure WisdomTree is best on with focused time of a compelling investment most leader in in our transparency true already taking the competitors we

For and shareholders, cutting market digital it edge up open involves and is blockchain opportunity streams assets WisdomTree that forward. But the a could going with this early potentially new days approval. regulatory of at positions massive revenue

vision our in regulated enabled right and extend for WisdomTree services. financial implications We the and assets lead beyond the revolution current we believe, model. right digital to partner blockchain the business The have

focus remains steadfast. ETF existing At same time, the business our core on the

As near sentiment about have shifting in after to a Amit be weighted excited tilted, fundamentally favor challenging a our in Macro lot WisdomTree’s more aligning be approach term. with value we decade. Jarrett to highlighted, and appears the and

demand our momentum of still allowing costs. when in portfolio in key at time resources strong driving operating and mindful industry we are efficiencies in while are initiatives business accelerating, model business, invest overall shareholder is seeing We our strong to and being us a

your optimistic lot WisdomTree Despite your the to our recent for there pressure Thank questions to in now. we'd is you be stock, happy a be take and interest about.

Operator

Siegenthaler comes from line of from [Operator Credit Suisse. the Craig first question Instructions] Our

Your is open. now line

Craig Siegenthaler

Good morning, sold licensed investment leverages third be see technology to And wanted how tech Thanks. WisdomTree manager in I party to could exclusive access? WisdomTree does blockchain one first the can on Securrency. the or stuff? individually everyone. and have Or

Jonathan Steinberg

Hi, Craig. This is Jono.

strong And is within very the ETP have broad. the technology very, protections very flexible structure and very We commercial very strong.

not services just management. question. financial it of asset in So has I part many your beyond the first applications understood I'm sure very

touch repeat on So, if part. didn't first might I the just it, you

Craig Siegenthaler

Yes.

Sorry, pay as us. to technology, license to going name I Securrency can larger business specifically WisdomTree And but competitors, wanted also just not going is or Jon, they any that like to I'm too? can to see how names, maybe individual an then, also your leverage use

Jonathan Steinberg

Okay.

is and it So, early work some to be done. days, there's

fees. our ETPs, we for our industry us So I And in vision, transform respect use don't just beyond commercial But evolves too have would very ahead if this say get can and far line are respect move ETF to want there the of many myself. what again, with advisory cases technology business with earning I protections. with to technology, to Securrency's strong that

Craig Siegenthaler

U.S. it Thanks, know not of one AdvisorEngine, was my lot of a here explained you talk a follow-up and years that wealth terms critical But the can about sale. on it. And be there's component Jon. just to couple really a I ago, was Got going in really strategy. AdvisorEngine

managers better similar efforts larger -- wealth. leverage platforms BXB many asset U.S. to digital So and penetrate wasn't had this U.S. your to competitors sure -- but WisdomTree, listen, just of very

just changed to not question think but your for and I my you but what WisdomTree, So, here? of has also too, competitors some really it's

Amit Muni

could our limited I exit talk say. we is we little more some of a on Craig, thinking around but since bit still process, very can wish the ongoing, about are we what it

don't we more, to a with on negative can said remarks we any me time you let Hopefully, again, just but the of -- consequences. reiterate I our that, growth, us. see at get my end conference we prepared little but in and this to effect negative have bit by just what February talk bear your So any AUM

Craig Siegenthaler

you. Thank

Operator

Thank you.

now question from Jefferies line open. Fannon next line Your is of Dan from the comes Our

James Steele

This morning. for actually Dan. filling Hey, James good Steele in is

question just first on third-party the my distribution. is So,

that modeling following we just I that commission the a quite think lower development. zero to were be bit going forward

of So, that your could potential the and of and you you just walk kind as? see what us through reinvesting growth there thinking kind

Amit Muni

Sure.

area we initiatives one IBD we to of the XXXX to these that platforms. deeper is as the of some So, initiatives -- the continue in as with want Jarrett that his main invest have an in of one that we remarks, in. referenced go to ones referenced The is

to so, the is back reinvesting that and from brokers, of stronger to overall into not reinvesting take in savings And want further why growth, only here other the areas we're getting that those U.S., spur we theme help also this divesting reason some of growth internationally. primary online savings we see can the organic but the

Jonathan Steinberg

Jono. this And is

the program LPL announce to and did trading we free expect in know, quarter you see going with IBD So a more announcements fourth forward. commission

net-net That's you how number. that's So to same. the a get

James Steele

this a can Appreciate XXXX is and so, expense the the you And Understood. is that further. commentary growth if And understand organic any something of as guidance? impact -- I the that any divestment Thank AdvisorEngine follow-up, you. this there on included expectations just the that if -- into this? isn't go following then is in

Amit Muni

Yes. Anything incorporated has related for been into that the guidance that gave year. next to we already

James Steele

you. Thank Great.

Operator

Thank you.

KBW. of question Lee comes from next the line from Our Robert

line now is open. Your

Jeff Drezner

Hi, on Rob Lee. good is This morning. Jeff for Drezner

going a Just newer for you a see I much at. perhaps regards forward? have point that, In points on of really where you lower fee that question I'm your average pressure. do coming Thank just you. and to Bitcoin, mentioned point. wondering quick are the some products, the know in the higher Bitcoin But price that on price the the those funded fee those we price rate

Jonathan Steinberg

is This Hi. Jono.

marketplace. we above the points fee So, next half than our that more in average is the offering XX capture Bitcoin the well But basis have. the ETP than less at still

Our very in Most is mix the been steady. change of fees have driven. sentiment

a what's there positioned really, alpha. and in that we're fee lower at fixed everything is price the active general, of is really well performance incomes your is that from some appropriately, And a be performance standpoint. driving important point. could priced So domestic But

Jarrett Lilien

Maybe early still, that funds. competition mutual higher IRAs know, as A add mentioned much active our we're and hold price, big days, too. a I mutual remarks of area and still lot in to of with prepared is you IBDs funds, still the

fee at the there's so we're even really our level, And actually inexpensive. focus where pretty we're

Jonathan Steinberg

And transparent non-transparent again, Smart and than I'll were how that. think, we the our transparent, we or in that Beta That's to approach active. fully are it's modern or add active whether multifactor in truly funds We mutual approach, And alpha, than our ETFs and performance. better a better believe discussed.

again, So alpha. the approaching way comfortable very we're getting we're and fees with

Jeff Drezner

Okay. Thank you.

Operator

you. Thank

question from line Cyprys Michael Stanley. from next of Morgan the comes Our

is line Your now open.

Michael Cyprys

morning. Hey. the on helping question. just your from for appetite you and sort forward here, from Is as forward software any Good any Thanks taking what as if looking Maybe management with advisors for you're distribution there appetite technology? that is and BXB here? strategy look practice of there for

Jarrett Lilien

an and And tech it's about our it's think us, part he's where combination That's models such a a important very And why our our the proprietary of of attached successful great with our ETFs. attached are tools great of be you thought I strategy. for Yes. the models, is even that leadership. about Siegel is represents today when momentum example will so showing to leadership, proprietary to important Professor believe collaboration it, and thought part

architecture, portfolios our the and model analysis tools a great and of ETFs, a which that their get predominantly We construction the then models And that but with you proprietary have number is advisors open performance. includes have then tech and their help to

in tools leadership, formula you're we're So better, that are to our things that then XXXX. that product, tech around superior advisors proprietary the looking be that, the of help thought exactly that's leverage combination and on spot

Jeremy Schwartz

of this Global Jeremy Head And Research. is Schwartz,

two, thought add to quick that. Just to maybe

I of just to out where team so more And of a the And we getting we've and of our to And discussions sales, to very we characteristics are sort advisor much key clients of how a getting think to our think distributed technology it lot understand of model flows. asset the And positive a their can fit portfolios. This been led the portfolios? of in platform, you lumpy If investment really individual have better of on all now all lot best of you're feedback, technology the be some the our experience people with longer on building own is class it to are the diversified, leading we addition think give. term that's we funds? models, tools we trends. help products past, information a lot our that do What partners are the have the letting think sticky -- tools, best I investing of world speakers, internally. we for and website part a we and emphasize in help us in some which content to in How addition from the people. of advisor they was ticker lot experience about these

Michael Cyprys

of Thanks mentioned helpful. Great. Jono, that. follow-up a a as very It's ETFs. question, developing just And you your version for tokenized

you hoping something your to talk case that. that? could bring the to needs use Just to is, thinking that what a more what there about little it happen? what take How would about market, And like views bit you around

Jonathan Steinberg

know, we Again, you services, to we securities. treasuries with these on say blockchain can on and will would as to meet our be our gold tokens securities. efforts. regulated that to the be tokens that token the that I the viewed and hope first financial are compliance So the blockchain for market as regulated are way to be necessities the for Securrency's gateway regulatory first

I think we have that first. to be chance

digital long profound is security standpoint can use in the for do share a manner. a bit it'll of more us sort a of little compliant to from take you cases time a of vision. it as But the So as

Michael Cyprys

Okay. Thank you.

Operator

Thank you.

the question Deutsche next Our Bedell from Brian of Bank. from comes line

is line Your open. now

Melinda Roy

your strategic Bedell. how recent to changed, changed these Brian Could have possibility a And give XXXX the priorities a little for the alternatives year. going you for priorities of strategic more about of has bit in the pursuing versus filling possibility Roy sale? Maybe Melinda actually is This including Hi. past? for back around thinking detail the

Jarrett Lilien

priorities about how in actually, piece have have you we And Again to our back and core and on say, long-term differentiates track competencies. first back mean, is I'd things basics the of prepared might I us a getting shortcut. of suite it's to really with one can't something products great remarks, again, take can records, the I changed. that

We've to done that. have You earn it.

all we silver need. So got for we to We've bullets have the don't search silver bullet.

it's And leveraging that. about so now

doing to is we're that accelerate quarters. leadership, we've What and around stuff that of the to core month the have that about addition upon the in thought the it's competencies the but momentum solutions, last last technology, really we building leveraging mentioned some Jeremy been showing in the

Jonathan Steinberg

to Securrency makes moment, make our to we're attractive shareholder an ways. very us, to been But just investment being see part a we're of a an We'd But respect have do the to that that place larger We cognizant a very fact believe like created do continues our would we value growth organization, lead have growth, organic that independent With pursuing create by back obviously we like had DXJ shareholder in strategies funds billion a would to have strong had at held standpoint will to we're faster $X have company. flows independent company. of while. from very the for And I we we a as of in HEDJ. point those organization at say the and value in in funds if inflection feel that XXXX, -- that over very and that net plans many really being us neutral. We as committed not of

Melinda Roy

All you. Thank right.

Operator

you. Thank

of the comes Mike question Bank Carrier next line from of from Our America.

Your is line open. now

Shaun Calnan

Shaun actually is Calnan on This Mike. guys. from Hi,

you commissions. more specifically flows First, fidelity? wondering are then we're went broker from the to guys from seeing just more zero traction the platforms the on if And since online they

Jarrett Lilien

were zero know, on Schwab, already. You and we Ameritrade commission

there. to flows continue relationships that have parties both We've good seeing Bigger and got great are continues. flows. wider we we So, with picture,

been zero the and on has really environment the playing field. balance ETFs think it's been -- levels good for commission I

positive. So on balance

Jonathan Steinberg

net and it the program. and RIA opens a gives that our deficient adopt channel at playing solutions up us It we're just into seeing And our selective wider the programs. again Fidelity custodied you know, RIAs

Jeremy Schwartz

And this again. is Jeremy

mutual shift to about funds what Just emphasize talked the ETS. strategic Jarrett from away to

that in We think on the these are who ETF, lot of -- have point the hearing mutual we platforms just today. that funds pay clients over ETFs think and to fees come feedback to and are from funds advantage a with funds have they that. transaction mutual more on from are happy are on we not And accelerating still adoption to there's

Shaun Calnan

on distribution guys Okay. fees, the current any And additional comfortable are in then fees with just brokers? are online you they the third-party expecting the place? Or from agreements

Amit Muni

arrangements that to had also a data. revenue for share, So, the them but with pay was we

through still are brokers the while going their they're sort So modify working of how to programs.

function expecting advisors are our we We which we intelligence our think some will and of data, that to pay important fees part for use segment level data we that very of is capabilities as around target distribution better

Shaun Calnan

Thank Okay. you.

Operator

Thank you.

UBS. from from question comes the line Brennan of Our Hawken next

Your now line open. is

Brennan Hawken

the question. the guys. my Recognizing for can't taking AdvisorEngine much pending transaction. Thanks given morning, say you Good side about

You your said that had impact that expect growth to didn't outlook. you

growth? going solutions impact digital So, the on that and organic and have could us are on you efforts those efforts other update maybe that your what you having the

Jarrett Lilien

touched a of And, We've many shapes have got lot number we've they it. different and on a Well, those. of forms.

and it, various about on These thought Some Jeremy positions, And tools. of and suite it's the talked leadership a future. again, themes technology individuals big have today some not a are do it with of about is great proprietary impact solutions, our we're thought And Individual -- is And our better. technology we're with what that and ticker our with proprietary make It's make about leadership customers better about tools. to advisors is sales. thought to doing proprietary trying relationships.

from relationships with our broader, a clients. building showing definitely very deeper part and So impact important

Jonathan Steinberg

feel the then And our is Professor most million long Let model give with on new we're of that We're CIO, as tangible solution Siegel from comfortable outsourced who and well-positioned space. add, models Model number that with the that us of flows. the the me of $XXX CIO we are Jarrett organic growth. obviously, drives is these the flow is history did Welch, think just collaboration probably our with solution focused joined Scott so new in space. And was quarter. that to that the most their really fourth CIO, we that outsourced in best addition which execution very recently in do Dynasty the a Portfolio Siegel,

Brennan Hawken

buyback? the Great. could Thanks balance a you And was bit in that it what to caused related sale retained loss be covenant are and there? of the that Is played what about halted changed AdvisorEngine maybe pending And then the there? is regarding Which that from thinking specific color. it out or metrics the for earnings? are that the more going the now balance additional part the sheet sheet, curtailed

Amit Muni

No, is credit This our nothing agreements. it's Brennan. part Sure, of new.

can any do credit do need that we debt $XXX do leverage to things. us get down to up agreement threshold to allow able It's in would our be we then that buybacks. us would -- at are about buybacks. there's to XXX we current million, do to about if certain earnings power, our and the As current to power. open We At that capacity we allow earnings not have covenants place above and

in it's the place took we existing are So just on when covenants that loan. the

Brennan Hawken

that. for Thanks it. Got

Operator

Thank you.

line comes Northcoast question next Housum the Research. of from from Keith Our

open. now is line Your

Keith Housum

you. Thank morning, Good guys. Great.

your guys XXXX guidance, of to at As $XX we look expectations your growth when range? you a bit little the terms at looking million guidance, can in give you're expense million of us compensation $XX

Amit Muni

Sure.

market the revenues, up year factors targets share. what our into, and go various compensation. flows the at of We drives beginning So around set

from I to see it's its to more way, the can now of if we granularity, start. probably way I up we the down range a think or the progress, way it that of sort middle trending some the as reasonable we think And midpoint. then the year if about think you give were

Keith Housum

So, years? Is midpoint, just over of the had the same inflows growth good are you've to it? few you at think past in the expecting that way

Amit Muni

We guidance. top don't line that into are give go But drives that. factors there what various

I right it good the mid at about go to range a now. think is thinking way

Keith Housum

as follow-up. then Okay. And a

ETF? their going I'm at it's Securrency exactly As to than I through Securrency, technology? investment getting the monetize more look how guess your is in just impression an I

Jarrett Lilien

Yes.

So play. infrastructure they are an

their even initial core quite and in for financial push So they'll broadly of have financial But is beyond lots services. potential financial within licensing services. services frankly,

management. it so And beyond is Yes. just asset

Keith Housum

the be Okay. licensing to That's technology. going primarily

Great. you. Thank Okay.

Operator

would I'm over Jonathan showing WisdomTree remarks. questions. further CEO, Thank any you. the turn for like this Steinberg, no back call further to time, At I to

Jonathan Steinberg

thank Thank all you good speak will Just Have and next WisdomTree in you. and your we interest quarter. a want to for day. to you time

Operator

and for gentlemen, call. today's conference concludes this Thank you Ladies participating.

You may now disconnect.

WisdomTree (WT) 31 Jan 202019 Q4 Earnings call transcript