Silvercrest Asset Management Group Inc (SAMG) Q3 2023 Earnings: AUM Grows 13. ...
Silvercrest Asset Management Group Inc (NASDAQ:SAMG) reports Q3 2023 earnings with Total AUM of $31.2 billion, a 13.9% increase YoY.
Discretionary AUM, which primarily drives revenue, increased by $1.1 billion or 5.7% YoY.
Revenue for Q3 2023 increased 2.3% YoY, despite a decrease of 6.2% for the nine months ended September 30, 2023.
The company declared a quarterly dividend of $0.19 per share of Class A common stock.
Silvercrest Asset Management Group Inc (NASDAQ:SAMG) released its Q3 2023 earnings report on November 3, 2023. Despite uncertain and volatile market conditions, the company reported a year-over-year (YoY) increase in both Total Assets Under Management (AUM) and Discretionary AUM. However, the company's revenue and business metrics remain down on a year-over-year and year-to-date basis due to higher expenses.
Financial Highlights
For Q3 2023, Silvercrest reported Total AUM of $31.2 billion, a 13.9% increase YoY. Discretionary AUM, which primarily drives revenue, increased by $1.1 billion or 5.7% YoY. However, Discretionary AUM decreased by $1.0 billion from the second quarter due to market volatility.
Revenue for Q3 2023 increased 2.3% YoY, but decreased 6.2% for the nine months ended September 30, 2023. The company attributed the decline in revenue to higher expenses which negatively impacted Adjusted EBITDA and the Adjusted EBITDA Margin. Despite this, Silvercrests Adjusted EBITDA Margin of 26.9% and 27.3% for the three and nine months ended September 30, 2023, respectively, remains healthy for the company.
Dividend Announcement
On October 31, 2023, the Companys Board of Directors declared a quarterly dividend of $0.19 per share of Class A common stock. The dividend will be paid on or about December 15, 2023 to shareholders of record as of the close of business on December 8, 2023.
Future Outlook
Despite the challenging market conditions, Silvercrest's pipeline of new business opportunities remains solid. The company attributes the slowdown in decision-making to a changing and uncertain business environment, higher interest rates, and geopolitical concerns. The company remains focused on these new opportunities and investments to drive future growth in the business.
Financial Tables
The financial tables provided in the report show a detailed comparison of certain GAAP and non-GAAP (Adjusted) financial measures and AUM. The tables provide a comprehensive view of the company's performance for the three and nine months ended September 30, 2023, and 2022.
Analysis
The Q3 2023 earnings report shows that despite the challenging market conditions, Silvercrest has managed to increase its Total AUM and Discretionary AUM YoY. However, the company's revenue and business metrics remain down on a year-over-year and year-to-date basis due to higher expenses. The company's focus on new business opportunities and investments to drive future growth could potentially offset these challenges.
Explore the complete 8-K earnings release (here) from Silvercrest Asset Management Group Inc for further details.
This article first appeared on GuruFocus.
