Yahoo Finance P10 Inc Surpasses Revenue Expectations with Strong Q1 2024 Performance
Revenue: $66.1 million, a 15% increase year-over-year, surpassing estimates of $63.96 million.
Net Income: Adjusted Net Income was $25.4 million, slightly below last year's $25.5 million, but GAAP Net Income significantly rose to $5.2 million from $0.8 million.
Earnings Per Share: Fully diluted ANI per share remained stable at $0.21, surpassing estimates of $0.19.
Dividend: Quarterly dividend increased by 8%, demonstrating a commitment to returning value to shareholders.
Fee-Paying Assets Under Management: Grew by 10% year-over-year to $23.8 billion, indicating strong asset accumulation capabilities.
Stock Repurchase: Repurchased approximately 3.7 million shares at an average price of $8.15 per share, reflecting confidence in the company's valuation.
On May 8, 2024, P10 Inc (NYSE:PX) released its 8-K filing, unveiling a robust financial performance for the first quarter ended March 31, 2024. The company, a prominent player in the alternative asset management sector, reported a record quarterly revenue of $66.1 million, marking a 15% increase from the previous year and surpassing the estimated revenue of $63.96 million.
Company Overview
P10 Inc specializes in multi-asset class private market solutions, catering to a diverse investor base that includes some of the world's largest pension funds, endowments, and financial institutions. The companys revenue primarily stems from recurring management and advisory fees, which are generated over long-term investment horizons typically ranging from ten to fifteen years.
Financial and Operational Highlights
The first quarter of 2024 saw P10 Inc not only boost its revenue but also increase its fee-paying assets under management to $23.8 billion, up 10% year-over-year. The company's GAAP Net Income significantly improved to $5.2 million from $0.8 million in the prior year. Adjusted EBITDA also saw a rise to $30.8 million from $28.4 million. However, Adjusted Net Income slightly decreased to $25.4 million from $25.5 million.
The earnings per share (EPS) metrics revealed a mixed picture. The fully diluted GAAP EPS was $0.04, up from $0.01 in the previous year, while the fully diluted Adjusted Net Income (ANI) per share remained steady at $0.21, consistent with the prior year and aligning with the estimated earnings per share of $0.19.
Strategic Developments and Leadership Enhancements
Amid these financial advancements, P10 Inc has been active on the strategic front. CEO Luke Sarsfield highlighted the successful raising of $670 million in gross new fee-paying AUM across ten funds, reflecting strong market demand. The company also bolstered its leadership, appointing Melodie Craft as General Counsel and continuing to enhance its management team to support ongoing growth and operational initiatives.
Shareholder Returns and Future Outlook
P10 Inc's commitment to shareholder returns remained evident with an 8% increase in its quarterly dividend and the repurchase of approximately 3.7 million shares. Looking ahead, the company is poised to maintain its trajectory of double-digit annual revenue growth, driven by strategic expansions and robust fundraising activities.
Conclusion
Overall, P10 Inc's first quarter of 2024 sets a positive tone for the year, with financial results that not only demonstrate resilience but also strategic foresight in navigating the complexities of the alternative asset management landscape. Investors and stakeholders may look forward to continued growth and operational enhancements that aim to solidify P10s market position and enhance its value proposition in the competitive financial sector.
For more detailed information and to access the full financial report, please visit P10s investor relations page at www.p10alts.com.
Explore the complete 8-K earnings release (here) from P10 Inc for further details.
This article first appeared on GuruFocus.
