PJT Partners (PJT) Q3 2024 earnings summary

Executive summary

• Achieved record third quarter revenues of $326.3 million, up 17% year-over-year, and record nine-month revenues of $1.016 billion, up 23% year-over-year, driven by strong performance across all business segments and global expansion.

• Adjusted pre-tax income rose 16% for the quarter and 32% for the nine months; adjusted EPS increased 19% for the quarter and 35% for the nine months; GAAP diluted EPS for Q3 2024 was $0.79.

• Net income attributable to the company rose 27% to $22.2 million for the quarter.

• Completed the acquisition of deNovo Partners on October 1, 2024, expanding presence in the Gulf region.

• Declared a quarterly dividend of $0.25 per share, payable December 18, 2024.

Financial highlights

• Q3 2024 revenues: $326.3 million, up 17% year-over-year; nine-month revenues: $1.016 billion, up 23%.

• Adjusted pre-tax income was $51 million for the quarter and $172 million for the nine months; adjusted EPS was $0.93 for the quarter and $3.10 for the nine months.

• GAAP net income for Q3 2024 was $22.2 million, with diluted EPS of $0.79; nine-month net income was $147.5 million, up 47%.

• Ended the quarter with $477 million in cash, cash equivalents, and investments, and no funded debt.

• Compensation and benefits expense was $227 million for the quarter (69–69.5% of revenues).

Outlook and guidance

• Management expects continued strong restructuring and special situations activity, with secular tailwinds and further business integration supporting future growth.

• Non-compensation expense growth rate for full year 2024 expected to align with nine-month rate of 14%, slightly above prior guidance.

• Anticipate meaningful compensation leverage in 2025 as strategic advisory revenue growth is expected to outpace headcount growth.

• Confident in long-term growth prospects, with 2024 seen as a milestone year.

• Uncertainty remains regarding the pace of M&A recovery amid macroeconomic and geopolitical factors.