AllianceBernstein (AB) Q4 2024 earnings summary

Executive summary

• 2024 was a transformative year, marked by successful execution of key initiatives, margin enhancement, and expansion of investment and distribution capabilities.

• Ended FY24 with $792.2 billion in AUM, up from $725.2 billion in FY23, with net inflows in active assets despite institutional equity outflows.

• Achieved record net inflows in active fixed income and continued organic growth in retail and private wealth channels.

• Private Markets AUM reached $70 billion, generating 16.5% of asset management revenues, progressing toward the $90–$100 billion 2027 target.

• Bernstein Research Services deconsolidated following joint venture with Societe Generale, monetizing value and reducing margin drag.

Financial highlights

• Q4 2024 adjusted net revenues rose 12% year-over-year to $973 million; full-year up 5% to $3.53 billion.

• Q4 2024 adjusted operating income up 40% to $354 million; full-year up 20% to $1.14 billion.

• Q4 2024 adjusted earnings per unit (EPU) of $1.05, up 36% year-over-year; full year EPU of $3.25, up 21%.

• Q4 2024 cash distribution per unit $1.05 (up 36%); full-year $3.26 (up 21%).

• Performance fees surged to $133 million in Q4 and $227 million for the year, up 80% year-over-year.

Outlook and guidance

• Baseline adjusted operating margin forecasted at 33% for 2025, above the midpoint of the 2027 target range.

• Private Markets AUM projected to grow at 9–13% CAGR, targeting $90–$100 billion by 2027 and over 20% of asset management revenues.

• Expect $50 million in annual occupancy-related savings from NYC relocation to flow to the bottom line in 2025.

• Non-compensation expense guidance for 2025 set at $600 million-$625 million.

• Effective tax rate guidance for 2025 is 6%-7%.