Lazard (LAZ) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 was $685 million, up 7% year-over-year; first half net revenue was $1.45 billion, up 22–25% year-over-year.

• Adjusted net income for Q2 2024 was $53 million ($0.52 per share), up 133% year-over-year; first half adjusted net income was $119 million ($1.17 per share).

• Financial Advisory achieved record first-half adjusted net revenue of $855 million, up 38% year-over-year.

• Asset Management reported quarter-end AUM of $245 billion, up 2% year-over-year but down 1–2% sequentially.

• Cost-saving initiatives and continued investment in talent and technology supported improved profitability and long-term growth.

Financial highlights

• Q2 2024 adjusted net revenue rose 10% year-over-year to $685 million; first half adjusted net revenue up 25% to $1.431 billion.

• Q2 2024 adjusted operating income was $84 million (12.3% margin); first half adjusted operating income was $204 million (14.2% margin).

• Q2 2024 adjusted compensation ratio was 66.0%, down from 68.4% year-over-year; adjusted non-compensation ratio was 21.7%, down from 23.2%.

• Q2 2024 adjusted effective tax rate was 14.0%, down from 31.2% year-over-year.

• Cash and cash equivalents as of June 30, 2024, were $848 million.

Outlook and guidance

• Management expects continued improvement in the global macroeconomic environment, with increased M&A activity and deal financing availability.

• Asset Management is positioned to benefit from new strategies and product development, despite recent net outflows.

• Focus remains on cost management, technology investment, and shareholder returns, with a target adjusted compensation ratio in the mid- to high-50s and non-compensation ratio between 16% and 20% over the cycle.

• Full-year 2024 effective tax rate expected in the mid- to high-20% range.

• Committed to returning to target expense ratios, including sub-20% for non-compensation.