PJT Partners (PJT) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 revenues of $360 million, up 4% year-over-year, and record H1 revenues of $690 million, up 26% year-over-year, with strong performance across all business lines and high management confidence in future growth.

• Net income attributable to PJT Partners Inc. for Q2 2024 was $28.3 million, a 28% increase compared to Q2 2023; GAAP pretax income rose 19% to $64 million for the quarter and 42% to $118 million for the six months.

• Adjusted pre-tax income rose 19% year-over-year in Q2 and 41% for H1; adjusted EPS up 20% in Q2 and 43% in H1.

• Continued investment in talent, industry expertise, and global reach to support long-term growth.

• PJT Partners operates in 12 countries with over 1,020 employees and 120 partners, and about 40% employee ownership aligns interests with shareholders.

Financial highlights

• Q2 2024 revenues were $360.2 million, up 4% year-over-year; H1 revenues were $690 million, up 26%; LTM 2Q24 revenues reached $1.3bn, up 19% year-over-year.

• Q2 adjusted pre-tax income was $66 million; H1 adjusted pre-tax income was $121 million; LTM 2Q24 adjusted pretax income was $218 million, up 8% year-over-year.

• Adjusted EPS for Q2 was $1.19, up 20%; H1 adjusted EPS was $2.17, up 43% year-over-year; LTM 2Q24 adjusted EPS was $3.92, up 10%.

• Placement revenues for Q2 2024 were $46.9 million, more than double Q2 2023's $20.0 million; advisory fees for Q2 2024 were $307.1 million, down 5% year-over-year.

• Ended Q2 with $351 million in cash and equivalents, $438 million in net working capital, and no funded debt.

Outlook and guidance

• Management expects continued strong restructuring activity due to elevated interest rates and proactive debt management by clients.

• Fund placement activity remains challenged but is expected to benefit from investor demand for liquidity and a flight to quality.

• Expect full-year non-compensation expense growth in the low double digits, consistent with prior guidance; effective tax rate for 2024 expected to be 22%.

• Anticipate a third consecutive year of revenue growth and a second year of record revenues, though full-year growth will not match H1's 26%.

• Confident in near, intermediate, and long-term growth prospects, focusing on expanding industry expertise, product capabilities, and global reach.