BlackRock, Inc. (NYSE: BLK) today reported financial results for
the three months and year ended December 31, 2024.
$11.6 trillion in AUM following a record $641 billion of full
year net inflows, including $281 billion in the fourth
quarter
14% increase in full year revenue driven by the positive
impact of markets on average AUM, organic base fee growth, and fees
on AUM acquired in the GIP Transaction, as well as higher
performance fees and technology service revenue
21% increase in full year operating income (23% as
adjusted)
15% increase in full year diluted EPS also reflects lower
nonoperating income and a higher effective tax rate in the current
year
$4.7 billion returned to shareholders in 2024, including
$1.6 billion of share repurchases
Previously announced agreement to acquire HPS Investment
Partners to create an integrated private credit franchise with
approximately $220 billion in pro-forma client assets
Laurence D. Fink, Chairman and CEO:
“Clients entrusted BlackRock with a record $641 billion of net
inflows in 2024, including $281 billion in the fourth quarter for
two consecutive record flows quarters. 2024 was also a milestone
year for strategic acquisitions grounded in client service,
technology and scale. Our closing of GIP and planned acquisitions
of HPS and Preqin are expected to significantly scale and enhance
our private markets investment and data capabilities.
“For many companies, periods of M&A contribute to a pause in
client engagement. At BlackRock, clients are instead embracing and
rewarding our strategy. Client activity accelerated into the fourth
quarter, resulting in 7% organic base fee growth and 12% technology
services ACV growth. Our operating model delivered exceptional
performance in a year of meaningful change. We crossed $20 billion
of annual revenue, up 14% from 2023. As adjusted operating income
grew by 23%, and our industry-leading margin of 44.5% was up 280
basis points.
“Our record organic growth and financial results do not yet
reflect the full integration or pending acquisitions of the
high-growth businesses of GIP, HPS and Preqin. And we’ve steadily
made organic investments ahead of structural trends that we expect
to drive outsized growth in the years ahead.
“BlackRock’s world-class talent is central to our significant
growth and sustained performance. We have a longstanding,
deliberate strategy of systematically elevating our strongest
leaders around the world. We’re excited to again have a number of
them taking on expanded roles this year. BlackRock’s leadership
team alongside top talent from GIP, HPS and Preqin position us to
serve our clients with excellence and seize the opportunities ahead
of us.
“In the 25 years since our IPO, BlackRock has delivered a 21%
compounded annual total return for our shareholders, compared to 8%
in the S&P 500. BlackRock enters 2025 with more growth and
upside potential than ever. This is just the beginning.”
FINANCIAL RESULTS
NET FLOW HIGHLIGHTS(1)
(in millions,
Q4
Q4
Full Year
Q4
Full Year
except per share data)
2024
2023
2024
2023
(in billions)
2024
2024
AUM
$
11,551,251
$
10,008,995
$
11,551,251
$
10,008,995
Long-term net flows:
$
201
$
489
% change
15
%
15
%
Average AUM
$
11,555,434
$
9,384,929
$
10,804,007
$
9,220,700
By region:
% change
23
%
17
%
Americas
$
116
$
317
Total net flows
$
281,416
$
95,647
$
641,351
$
288,695
EMEA
74
149
APAC
11
23
GAAP basis:
Revenue
$
5,677
$
4,631
$
20,407
$
17,859
By client type:
% change
23
%
14
%
Operating income
$
2,075
$
1,585
$
7,574
$
6,275
Retail:
$
5
$
24
% change
31
%
21
%
US
3
19
Operating margin
36.6
%
34.2
%
37.1
%
35.1
%
International
2
5
Net income(1)
$
1,670
$
1,375
$
6,369
$
5,502
% change
21
%
16
%
ETFs:
$
143
$
390
Diluted EPS
$
10.63
$
9.15
$
42.01
$
36.51
Core equity
75
175
% change
16
%
15
%
Strategic
18
113
Weighted-average
Cryptocurrency
18
41
diluted shares
157.0
150.2
151.6
150.7
Other precision
32
61
% change
5
%
1
%
Institutional:
$
53
$
74
As Adjusted(2):
Active
25
64
Operating income
$
2,326
$
1,716
$
8,110
$
6,593
Index
28
9
% change
36
%
23
%
Operating margin
45.5
%
41.6
%
44.5
%
41.7
%
Net income(1)
$
1,874
$
1,451
$
6,612
$
5,692
Cash management net flows
$
81
$
153
% change
29
%
16
%
Diluted EPS
$
11.93
$
9.66
$
43.61
$
37.77
% change
23
%
15
%
Total net flows
$
281
$
641
_________________________
_________________________
(1) Net income represents net income
attributable to BlackRock, Inc. (2) See pages 10 through 12 for the
reconciliation to GAAP and notes (1) through (3) to the condensed
consolidated statements of income and supplemental information for
more information on as adjusted items.
(1) Totals may not add due to
rounding.
BUSINESS RESULTS
Q4 2024
Q4 2024
Base fees(1)
Base fees(1)
December 31, 2024
and securities
Q4 2024
December 31, 2024
and securities
AUM
lending revenue
(in millions), (unaudited)
Net flows
AUM
lending revenue
% of Total
% of Total
RESULTS BY CLIENT TYPE
Retail
$
4,650
$
1,015,827
$
1,105
9
%
25
%
ETFs
142,641
4,230,375
1,815
37
%
41
%
Institutional:
Active
25,126
2,136,749
962
18
%
22
%
Index
28,251
3,247,637
242
28
%
5
%
Total institutional
53,377
5,384,386
1,204
46
%
27
%
Long-term
200,668
10,630,588
4,124
92
%
93
%
Cash management
80,748
920,663
293
8
%
7
%
Total
$
281,416
$
11,551,251
$
4,417
100
%
100
%
RESULTS BY INVESTMENT STYLE
Active
$
22,830
$
2,870,656
$
1,991
25
%
45
%
Index and ETFs
177,838
7,759,932
2,133
67
%
48
%
Long-term
200,668
10,630,588
4,124
92
%
93
%
Cash management
80,748
920,663
293
8
%
7
%
Total
$
281,416
$
11,551,251
$
4,417
100
%
100
%
RESULTS BY PRODUCT TYPE
Equity
$
126,566
$
6,310,191
$
2,142
55
%
48
%
Fixed income
23,784
2,905,669
950
25
%
22
%
Multi-asset
24,307
992,921
326
8
%
7
%
Alternatives:
Private markets
4,730
211,974
480
2
%
11
%
Liquid alternatives
1,165
76,390
146
1
%
3
%
Currency and commodities(2)
20,116
133,443
80
1
%
2
%
Total alternatives
26,011
421,807
706
4
%
16
%
Long-term
200,668
10,630,588
4,124
92
%
93
%
Cash management
80,748
920,663
293
8
%
7
%
Total
$
281,416
$
11,551,251
$
4,417
100
%
100
%
_________________________
(1)
Base fees include investment
advisory and administration fees.
(2)
Amounts include cryptocurrency
and commodity ETFs and exchange-traded products ("ETPs").
INVESTMENT PERFORMANCE AT
DECEMBER 31, 2024(1)
One-year period
Three-year period
Five-year period
Fixed income:
Actively managed AUM above benchmark or
peer median
Taxable
69%
79%
82%
Tax-exempt
69%
42%
45%
Index AUM within or above applicable
tolerance
97%
99%
98%
Equity:
Actively managed AUM above benchmark or
peer median
Fundamental
47%
44%
64%
Systematic
93%
89%
93%
Index AUM within or above applicable
tolerance
94%
99%
100%
_________________________
(1)
Past performance is not
indicative of future results. The performance information shown is
based on preliminary available data. Please refer to page 14 for
performance disclosure detail.
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink,
President, Robert S. Kapito, and Chief Financial Officer, Martin S.
Small, will host a teleconference call for investors and analysts
on Wednesday, January 15, 2025 at 7:30 a.m. (Eastern Time). Members
of the public who are interested in participating in the
teleconference should dial, from the United States, (786) 460-7166,
or from outside the United States, (866) 409-1555, shortly before
7:30 a.m. and reference the BlackRock Conference Call (ID Number
6231688). A live, listen-only webcast will also be available via
the investor relations section of www.blackrock.com.
The webcast will be available for replay by 10:30 a.m. (Eastern
Time) on Wednesday, January 15, 2025. To access the replay of the
webcast, please visit the investor relations section of
www.blackrock.com.
ABOUT BLACKROCK
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share
data), (unaudited)
Three Months
Three Months Ended
Ended
December 31,
September 30,
2024
2023
Change
2024
Change
Revenue
Investment advisory, administration fees
and securities lending revenue:
Investment advisory and administration
fees
$
4,256
$
3,448
$
808
$
3,881
$
375
Securities lending revenue
161
157
4
149
12
Total investment advisory, administration
fees and securities lending revenue
4,417
3,605
812
4,030
387
Investment advisory performance fees
451
311
140
388
63
Technology services revenue
428
379
49
403
25
Distribution fees
322
303
19
323
(1
)
Advisory and other revenue
59
33
26
53
6
Total revenue
5,677
4,631
1,046
5,197
480
Expense
Employee compensation and benefits
1,885
1,503
382
1,578
307
Sales, asset and account expense:
Distribution and servicing costs
565
502
63
549
16
Direct fund expense
389
318
71
379
10
Sub-advisory and other
42
35
7
34
8
Total sales, asset and account expense
996
855
141
962
34
General and administration expense
596
589
7
562
34
Restructuring charge
-
61
(61
)
-
-
Amortization and impairment of intangible
assets
125
38
87
89
36
Total expense
3,602
3,046
556
3,191
411
Operating income
2,075
1,585
490
2,006
69
Nonoperating income (expense)
Net gain (loss) on investments
(18
)
265
(283
)
177
(195
)
Interest and dividend income
212
159
53
236
(24
)
Interest expense
(166
)
(82
)
(84
)
(154
)
(12
)
Total nonoperating income (expense)
28
342
(314
)
259
(231
)
Income before income taxes
2,103
1,927
176
2,265
(162
)
Income tax expense
442
438
4
574
(132
)
Net income
1,661
1,489
172
1,691
(30
)
Less:
Net income (loss) attributable to
noncontrolling interests
(9
)
114
(123
)
60
(69
)
Net income attributable to BlackRock,
Inc.
$
1,670
$
1,375
$
295
$
1,631
$
39
Weighted-average common shares
outstanding
Basic
155.0
148.7
6.3
148.0
6.9
Diluted
157.0
150.2
6.8
149.6
7.4
Earnings per share attributable to
BlackRock, Inc. common stockholders
Basic
$
10.78
$
9.25
$
1.53
$
11.02
$
(0.24
)
Diluted
$
10.63
$
9.15
$
1.48
$
10.90
$
(0.27
)
Cash dividends declared and paid per
share
$
5.10
$
5.00
$
0.10
$
5.10
$
-
Supplemental information:
AUM (end of period)
$
11,551,251
$
10,008,995
$
1,542,256
$
11,475,362
$
75,889
Shares outstanding (end of period)
154.9
148.5
6.4
148.0
7.0
GAAP:
Operating margin
36.6
%
34.2
%
240
bps
38.6
%
(200
)
bps
Effective tax rate
20.9
%
24.2
%
(330
)
bps
26.0
%
(510
)
bps
As adjusted:
Operating income (1)
$
2,326
$
1,716
$
610
$
2,128
$
198
Operating margin (1)
45.5
%
41.6
%
390
bps
45.8
%
(30
)
bps
Nonoperating income (expense), less net
income (loss) attributable to noncontrolling interests (2)
$
39
$
199
$
(160
)
$
190
$
(151
)
Net income attributable to BlackRock, Inc.
(3)
$
1,874
$
1,451
$
423
$
1,715
$
159
Diluted earnings attributable to
BlackRock, Inc. common stockholders per share (3)
$
11.93
$
9.66
$
2.27
$
11.46
$
0.47
Effective tax rate
20.8
%
24.2
%
(340
)
bps
26.0
%
(520
)
bps
See pages 10 through 12 for the
reconciliation to accounting principles generally accepted in the
United States ("GAAP") and notes (1) through (3) to the condensed
consolidated statements of income and supplemental information for
more information on as adjusted items. Beginning in the first
quarter of 2024, BlackRock, Inc. updated the presentation of the
Company’s expense line items within the condensed consolidated
statements of income by including a new “sales, asset and account
expense” income statement caption. Such expense line items have
been recast for 2023 to conform to this new presentation. For a
recast of 2023 expense line items, see page 12 of Exhibit 99.1 to
the Current Report on Form 8-K furnished on April 12, 2024.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share
data), (unaudited)
Year Ended
December 31,
2024
2023
Change
Revenue
Investment advisory, administration fees
and securities lending revenue:
Investment advisory and administration
fees
$
15,485
$
13,724
$
1,761
Securities lending revenue
615
675
(60
)
Total investment advisory, administration
fees and securities lending revenue
16,100
14,399
1,701
Investment advisory performance fees
1,207
554
653
Technology services revenue
1,603
1,485
118
Distribution fees
1,273
1,262
11
Advisory and other revenue
224
159
65
Total revenue
20,407
17,859
2,548
Expense
Employee compensation and benefits
6,546
5,779
767
Sales, asset and account expense:
Distribution and servicing costs
2,171
2,051
120
Direct fund expense
1,464
1,331
133
Sub-advisory and other
140
116
24
Total sales, asset and account expense
3,775
3,498
277
General and administration expense
2,221
2,095
126
Restructuring charge
-
61
(61
)
Amortization and impairment of intangible
assets
291
151
140
Total expense
12,833
11,584
1,249
Operating income
7,574
6,275
1,299
Nonoperating income (expense)
Net gain (loss) on investments
492
699
(207
)
Interest and dividend income
767
473
294
Interest expense
(538
)
(292
)
(246
)
Total nonoperating income (expense)
721
880
(159
)
Income before income taxes
8,295
7,155
1,140
Income tax expense
1,783
1,479
304
Net income
6,512
5,676
836
Less:
Net income (loss) attributable to
noncontrolling interests
143
174
(31
)
Net income attributable to BlackRock,
Inc.
$
6,369
$
5,502
$
867
Weighted-average common shares
outstanding
Basic
150.0
149.3
0.7
Diluted
151.6
150.7
0.9
Earnings per share attributable to
BlackRock, Inc. common stockholders
Basic
$
42.45
$
36.85
$
5.60
Diluted
$
42.01
$
36.51
$
5.50
Cash dividends declared and paid per
share
$
20.40
$
20.00
$
0.40
Supplemental information:
AUM (end of period)
$
11,551,251
$
10,008,995
$
1,542,256
Shares outstanding (end of period)
154.9
148.5
6.4
GAAP:
Operating margin
37.1
%
35.1
%
200
bps
Effective tax rate
21.9
%
21.2
%
70
bps
As adjusted:
Operating income (1)
$
8,110
$
6,593
$
1,517
Operating margin (1)
44.5
%
41.7
%
280
bps
Nonoperating income (expense), less net
income (loss) attributable to noncontrolling interests (2)
$
533
$
648
$
(115
)
Net income attributable to BlackRock, Inc.
(3)
$
6,612
$
5,692
$
920
Diluted earnings attributable to
BlackRock, Inc. common stockholders per share (3)
$
43.61
$
37.77
$
5.84
Effective tax rate
23.5
%
21.4
%
210
bps
See pages 10 through 12 for the
reconciliation to GAAP and notes (1) through (3) to the condensed
consolidated statements of income and supplemental information for
more information on as adjusted items. Beginning in the first
quarter of 2024, BlackRock, Inc. updated the presentation of the
Company’s expense line items within the condensed consolidated
statements of income by including a new “sales, asset and account
expense” income statement caption. Such expense line items have
been recast for 2023 to conform to this new presentation. For a
recast of 2023 expense line items, see page 12 of Exhibit 99.1 to
the Current Report on Form 8-K furnished on April 12, 2024.
ASSETS UNDER
MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by
Client Type and Product Type
Net
September 30,
inflows
Market
December 31,
2024
(outflows)
Acquisition(1)
change
FX impact(2)
2024
Average AUM(3)
Retail:
Equity
$
521,270
$
(127
)
$
-
$
(7,209
)
$
(8,816
)
$
505,118
$
514,867
Fixed income
324,245
4,155
-
(4,823
)
(4,936
)
318,641
321,799
Multi-asset
154,078
(424
)
-
(1,909
)
(767
)
150,978
152,157
Alternatives
41,608
1,046
-
(1,009
)
(555
)
41,090
41,243
Retail subtotal
1,041,201
4,650
-
(14,950
)
(15,074
)
1,015,827
1,030,066
ETFs:
Equity
3,061,840
110,601
-
(43,614
)
(22,429
)
3,106,398
3,090,667
Fixed income
1,019,176
11,834
-
(34,956
)
(10,402
)
985,652
1,005,156
Multi-asset
10,036
1,070
-
(153
)
(219
)
10,734
10,281
Alternatives
97,283
19,136
-
11,332
(160
)
127,591
115,012
ETFs subtotal
4,188,335
142,641
-
(67,391
)
(33,210
)
4,230,375
4,221,116
Institutional:
Active:
Equity
225,361
(2,050
)
-
2,432
(6,895
)
218,848
222,045
Fixed income
873,385
(1,509
)
-
(18,258
)
(13,290
)
840,328
851,910
Multi-asset
833,975
23,844
-
(8,141
)
(21,639
)
828,039
835,579
Alternatives
178,223
4,841
69,875
448
(3,853
)
249,534
230,800
Active subtotal
2,110,944
25,126
69,875
(23,519
)
(45,677
)
2,136,749
2,140,334
Index:
Equity
2,472,528
18,142
-
46,933
(57,776
)
2,479,827
2,493,289
Fixed income
806,888
9,304
-
(14,389
)
(40,755
)
761,048
780,330
Multi-asset
3,426
(183
)
-
(1
)
(72
)
3,170
3,325
Alternatives
2,653
988
-
19
(68
)
3,592
3,149
Index subtotal
3,285,495
28,251
-
32,562
(98,671
)
3,247,637
3,280,093
Institutional subtotal
5,396,439
53,377
69,875
9,043
(144,348
)
5,384,386
5,420,427
Long-term
10,625,975
200,668
69,875
(73,298
)
(192,632
)
10,630,588
10,671,609
Cash management
849,387
80,748
-
2,521
(11,993
)
920,663
883,825
Total
$
11,475,362
$
281,416
$
69,875
$
(70,777
)
$
(204,625
)
$
11,551,251
$
11,555,434
Current Quarter Component Changes by
Investment Style and Product Type (Long-Term)
Net
September 30,
inflows
Market
December 31,
2024
(outflows)
Acquisition(1)
change
FX impact(2)
2024
Average AUM(3)
Active:
Equity
$
492,193
$
(8,057
)
$
-
$
(6,198
)
$
(10,775
)
$
467,163
$
480,255
Fixed income
1,171,739
1,580
-
(22,623
)
(16,822
)
1,133,874
1,148,283
Multi-asset
988,035
23,420
-
(10,050
)
(22,404
)
979,001
987,720
Alternatives
219,824
5,887
69,875
(560
)
(4,408
)
290,618
272,039
Active subtotal
2,871,791
22,830
69,875
(39,431
)
(54,409
)
2,870,656
2,888,297
Index and ETFs:
ETFs:
Equity
3,061,840
110,601
-
(43,614
)
(22,429
)
3,106,398
3,090,667
Fixed income
1,019,176
11,834
-
(34,956
)
(10,402
)
985,652
1,005,156
Multi-asset
10,036
1,070
-
(153
)
(219
)
10,734
10,281
Alternatives
97,283
19,136
-
11,332
(160
)
127,591
115,012
ETFs subtotal
4,188,335
142,641
-
(67,391
)
(33,210
)
4,230,375
4,221,116
Non-ETF index:
Equity
2,726,966
24,022
-
48,354
(62,712
)
2,736,630
2,749,946
Fixed income
832,779
10,370
-
(14,847
)
(42,159
)
786,143
805,756
Multi-asset
3,444
(183
)
-
(1
)
(74
)
3,186
3,341
Alternatives
2,660
988
-
18
(68
)
3,598
3,153
Non-ETF index subtotal
3,565,849
35,197
-
33,524
(105,013
)
3,529,557
3,562,196
Index and ETFs subtotal
7,754,184
177,838
-
(33,867
)
(138,223
)
7,759,932
7,783,312
Long-term
$
10,625,975
$
200,668
$
69,875
$
(73,298
)
$
(192,632
)
$
10,630,588
$
10,671,609
Current Quarter Component Changes by
Product Type (Long-Term)
Net
September 30,
inflows
Market
December 31,
2024
(outflows)
Acquisition(1)
change
FX impact(2)
2024
Average AUM(3)
Equity
$
6,280,999
$
126,566
$
-
$
(1,458
)
$
(95,916
)
$
6,310,191
$
6,320,868
Fixed income
3,023,694
23,784
-
(72,426
)
(69,383
)
2,905,669
2,959,195
Multi-asset
1,001,515
24,307
-
(10,204
)
(22,697
)
992,921
1,001,342
Alternatives:
Private markets
141,409
4,730
69,875
(746
)
(3,294
)
211,974
193,493
Liquid alternatives
75,990
1,165
-
240
(1,005
)
76,390
76,211
Currency and commodities(4)
102,368
20,116
-
11,296
(337
)
133,443
120,500
Alternatives subtotal
319,767
26,011
69,875
10,790
(4,636
)
421,807
390,204
Long-term
$
10,625,975
$
200,668
$
69,875
$
(73,298
)
$
(192,632
)
$
10,630,588
$
10,671,609
_________________________
(1)
Amounts include AUM attributable
to the acquisition of Global Infrastructure Management, LLC ("GIP")
in October 2024 (the "GIP Transaction").
(2)
Foreign exchange reflects the
impact of translating non-US dollar denominated AUM into US dollars
for reporting purposes.
(3)
Average AUM is calculated as the
average of the month-end spot AUM amounts for the trailing four
months.
(4)
Amounts include cryptocurrency
and commodity ETFs and ETPs.
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by
Client Type and Product Type
Net
December 31,
inflows
Market
December 31,
2023
(outflows)
Acquisition(1)
change
FX impact(2)
2024
Average AUM(3)
Retail:
Equity
$
435,734
$
15,285
$
4,074
$
54,257
$
(4,232
)
$
505,118
$
485,161
Fixed income
312,799
11,671
-
1,483
(7,312
)
318,641
316,520
Multi-asset
139,537
(2,328
)
-
14,420
(651
)
150,978
147,169
Alternatives
41,627
(261
)
-
69
(345
)
41,090
41,087
Retail subtotal
929,697
24,367
4,074
70,229
(12,540
)
1,015,827
989,937
ETFs:
Equity
2,532,631
236,357
-
359,322
(21,912
)
3,106,398
2,845,456
Fixed income
898,403
112,341
-
(16,291
)
(8,801
)
985,652
948,250
Multi-asset
9,140
1,025
-
841
(272
)
10,734
9,451
Alternatives
59,125
40,710
-
27,919
(163
)
127,591
89,331
ETFs subtotal
3,499,299
390,433
-
371,791
(31,148
)
4,230,375
3,892,488
Institutional:
Active:
Equity
186,688
5,380
-
30,876
(4,096
)
218,848
207,929
Fixed income
836,823
(2,843
)
-
16,885
(10,537
)
840,328
841,830
Multi-asset
717,182
54,887
-
72,798
(16,828
)
828,039
774,210
Alternatives
171,980
7,023
69,875
3,618
(2,962
)
249,534
191,190
Active subtotal
1,912,673
64,447
69,875
124,177
(34,423
)
2,136,749
2,015,159
Index:
Equity
2,138,291
(31,454
)
-
420,860
(47,870
)
2,479,827
2,333,824
Fixed income
756,001
42,500
-
(5,068
)
(32,385
)
761,048
759,871
Multi-asset
4,945
(1,906
)
-
204
(73
)
3,170
3,693
Alternatives
3,252
234
-
165
(59
)
3,592
2,912
Index subtotal
2,902,489
9,374
-
416,161
(80,387
)
3,247,637
3,100,300
Institutional subtotal
4,815,162
73,821
69,875
540,338
(114,810
)
5,384,386
5,115,459
Long-term
9,244,158
488,621
73,949
982,358
(158,498
)
10,630,588
9,997,884
Cash management
764,837
152,730
-
10,606
(7,510
)
920,663
806,123
Total
$
10,008,995
$
641,351
$
73,949
$
992,964
$
(166,008
)
$
11,551,251
$
10,804,007
Year-over-Year Component Changes by
Investment Style and Product Type (Long-Term)
Net
December 31,
inflows
Market
December 31,
2023
(outflows)
Acquisition(1)
change
FX impact(2)
2024
Average AUM(3)
Active:
Equity
$
427,448
$
(6,333
)
$
4,074
$
48,479
$
(6,505
)
$
467,163
$
461,583
Fixed income
1,123,422
9,184
-
18,516
(17,248
)
1,133,874
1,133,152
Multi-asset
856,705
52,553
-
87,221
(17,478
)
979,001
921,364
Alternatives
213,603
6,760
69,875
3,687
(3,307
)
290,618
232,274
Active subtotal
2,621,178
62,164
73,949
157,903
(44,538
)
2,870,656
2,748,373
Index and ETFs:
ETFs:
Equity
2,532,631
236,357
-
359,322
(21,912
)
3,106,398
2,845,456
Fixed income
898,403
112,341
-
(16,291
)
(8,801
)
985,652
948,250
Multi-asset
9,140
1,025
-
841
(272
)
10,734
9,451
Alternatives
59,125
40,710
-
27,919
(163
)
127,591
89,331
ETFs subtotal
3,499,299
390,433
-
371,791
(31,148
)
4,230,375
3,892,488
Non-ETF index:
Equity
2,333,265
(4,456
)
-
457,514
(49,693
)
2,736,630
2,565,331
Fixed income
782,201
42,144
-
(5,216
)
(32,986
)
786,143
785,069
Multi-asset
4,959
(1,900
)
-
201
(74
)
3,186
3,708
Alternatives
3,256
236
-
165
(59
)
3,598
2,915
Non-ETF index subtotal
3,123,681
36,024
-
452,664
(82,812
)
3,529,557
3,357,023
Index and ETFs subtotal
6,622,980
426,457
-
824,455
(113,960
)
7,759,932
7,249,511
Long-term
$
9,244,158
$
488,621
$
73,949
$
982,358
$
(158,498
)
$
10,630,588
$
9,997,884
Year-over-Year Component Changes by
Product Type (Long-Term)
Net
December 31,
inflows
Market
December 31,
2023
(outflows)
Acquisition(1)
change
FX impact(2)
2024
Average AUM(3)
Equity
$
5,293,344
$
225,568
$
4,074
$
865,315
$
(78,110
)
$
6,310,191
$
5,872,370
Fixed income
2,804,026
163,669
-
(2,991
)
(59,035
)
2,905,669
2,866,471
Multi-asset
870,804
51,678
-
88,263
(17,824
)
992,921
934,523
Alternatives:
Private markets
136,909
9,457
69,875
(1,803
)
(2,464
)
211,974
154,597
Liquid alternatives
74,233
(2,609
)
-
5,482
(716
)
76,390
75,402
Currency and commodities(4)
64,842
40,858
-
28,092
(349
)
133,443
94,521
Alternatives subtotal
275,984
47,706
69,875
31,771
(3,529
)
421,807
324,520
Long-term
$
9,244,158
$
488,621
$
73,949
$
982,358
$
(158,498
)
$
10,630,588
$
9,997,884
_________________________
(1)
Amounts include AUM attributable
to the GIP Transaction and the acquisition of SpiderRock Advisors,
LLC in May 2024 (the "SpiderRock Transaction").
(2)
Foreign exchange reflects the
impact of translating non-US dollar denominated AUM into US dollars
for reporting purposes.
(3)
Average AUM is calculated as the
average of the month-end spot AUM amounts for the trailing thirteen
months.
(4)
Amounts include cryptocurrency
and commodity ETFs and ETPs.
SUMMARY OF REVENUE
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
Change
2024
Change
2024
2023
Change
Revenue
Investment advisory, administration fees
and securities lending revenue:
Equity:
Active
$
558
$
484
$
74
$
553
$
5
$
2,166
$
2,000
$
166
ETFs
1,375
1,102
273
1,309
66
5,124
4,418
706
Non-ETF index
209
183
26
198
11
784
743
41
Equity subtotal
2,142
1,769
373
2,060
82
8,074
7,161
913
Fixed income:
Active
494
468
26
493
1
1,952
1,897
55
ETFs
360
311
49
354
6
1,367
1,230
137
Non-ETF index
96
85
11
93
3
369
353
16
Fixed income subtotal
950
864
86
940
10
3,688
3,480
208
Multi-asset
326
299
27
325
1
1,278
1,203
75
Alternatives:
Private markets
480
251
229
235
245
1,196
889
307
Liquid alternatives
146
138
8
143
3
568
572
(4
)
Currency and commodities(1)
80
44
36
63
17
247
185
62
Alternatives subtotal
706
433
273
441
265
2,011
1,646
365
Long-term
4,124
3,365
759
3,766
358
15,051
13,490
1,561
Cash management
293
240
53
264
29
1,049
909
140
Total investment advisory,
administration fees and securities lending revenue
4,417
3,605
812
4,030
387
16,100
14,399
1,701
Investment advisory performance fees:
Equity
112
61
51
13
99
161
99
62
Fixed income
22
2
20
3
19
34
4
30
Multi-asset
10
5
5
1
9
24
28
(4
)
Alternatives:
Private markets
108
149
(41
)
7
101
308
273
35
Liquid alternatives
199
94
105
364
(165
)
680
150
530
Alternatives subtotal
307
243
64
371
(64
)
988
423
565
Total investment advisory performance
fees
451
311
140
388
63
1,207
554
653
Technology services revenue
428
379
49
403
25
1,603
1,485
118
Distribution fees
322
303
19
323
(1
)
1,273
1,262
11
Advisory and other revenue:
Advisory
14
15
(1
)
11
3
49
81
(32
)
Other
45
18
27
42
3
175
78
97
Total advisory and other
revenue
59
33
26
53
6
224
159
65
Total revenue
$
5,677
$
4,631
$
1,046
$
5,197
$
480
$
20,407
$
17,859
$
2,548
_________________________
(1)
Amounts include cryptocurrency
and commodity ETFs and ETPs.
Highlights
- Investment advisory, administration fees and securities lending
revenue increased $812 million from the fourth quarter of 2023 and
$387 million from the third quarter of 2024, primarily driven by
organic base fee growth, the impact of market beta on average AUM
and approximately $230 million of fees related to AUM acquired in
the GIP Transaction. Securities lending revenue of $161 million
increased from $157 million in the fourth quarter of 2023 and $149
million in the third quarter of 2024.
- Performance fees increased $140 million from the fourth quarter
of 2023, reflecting higher revenue from liquid alternative and
long-only products, partially offset by lower revenue from private
markets products. Performance fees increased $63 million from the
third quarter of 2024, primarily driven by higher revenue from
private markets and long-only products, partially offset by strong
performance from a single hedge fund with an annual performance
measurement period that ends in the third quarter.
- Technology services revenue increased $49 million from the
fourth quarter of 2023 and $25 million from the third quarter of
2024, reflecting the successful onboarding of a number of new
clients. Technology services annual contract value (“ACV”)(1)
increased 12% from the fourth quarter of 2023, driven by strong
demand for a full range of Aladdin technology offerings.
_________________________
(1)
See note (4) to the condensed consolidated statements of income
and supplemental information on page 12 for more information on
ACV.
SUMMARY OF OPERATING
EXPENSE
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
Change
2024
Change
2024
2023
Change
Operating expense
Employee compensation and benefits
$
1,885
$
1,503
$
382
$
1,578
$
307
$
6,546
$
5,779
$
767
Sales, asset and account expense(1):
Distribution and servicing costs
565
502
63
549
16
2,171
2,051
120
Direct fund expense
389
318
71
379
10
1,464
1,331
133
Sub-advisory and other
42
35
7
34
8
140
116
24
Total sales, asset and account expense
996
855
141
962
34
3,775
3,498
277
General and administration expense:
Marketing and promotional
92
87
5
64
28
314
309
5
Occupancy and office related
113
105
8
105
8
421
418
3
Portfolio services
68
68
-
65
3
262
270
(8
)
Technology
182
186
(4
)
175
7
674
607
67
Professional services
88
67
21
67
21
277
195
82
Communications
10
11
(1
)
10
-
39
47
(8
)
Foreign exchange remeasurement
(7
)
(4
)
(3
)
3
(10
)
-
(6
)
6
Contingent consideration fair value
adjustments
(28
)
2
(30
)
(2
)
(26
)
(36
)
3
(39
)
Other general and administration
78
67
11
75
3
270
252
18
Total general and administration
expense
596
589
7
562
34
2,221
2,095
126
Restructuring charge
-
61
(61
)
-
-
-
61
(61
)
Amortization and impairment of intangible
assets
125
38
87
89
36
291
151
140
Total operating expense
$
3,602
$
3,046
$
556
$
3,191
$
411
$
12,833
$
11,584
$
1,249
_________________________
(1)
Beginning in the first quarter of
2024, BlackRock, Inc. updated the presentation of the Company’s
expense line items within the condensed consolidated statements of
income by including a new “sales, asset and account expense” income
statement caption. Such expense line items have been recast for
2023 to conform to this new presentation. For a recast of 2023
expense line items, see page 12 of Exhibit 99.1 to the Current
Report on Form 8-K furnished on April 12, 2024.
Highlights
- Employee compensation and benefits expense increased $382
million from the fourth quarter of 2023 and $307 million from the
third quarter of 2024, primarily reflecting higher incentive
compensation as a result of higher performance fees and operating
income. Fourth quarter 2024 employee compensation and benefit
expense was also impacted by the GIP Transaction, including
nonrecurring retention-related deferred compensation
expense(1).
- Sales, asset and account expense increased $141 million from
the fourth quarter of 2023 and $34 million from the third quarter
of 2024, driven by higher distribution and servicing costs and
direct fund expense, primarily reflecting higher average AUM.
- General and administration expense increased $7 million from
the fourth quarter of 2023 and $34 million from the third quarter
of 2024, primarily associated with the acquisition-related costs(1)
in connection with the GIP Transaction, including transaction costs
recorded in professional services expense, partially offset by
lower contingent consideration fair value adjustments. The general
and administration expense increase from the third quarter of 2024
also included higher seasonal marketing and promotional
expense.
- Amortization and impairment of intangible assets(1) increased
$87 million from the fourth quarter of 2023 and $36 million from
the third quarter of 2024, primarily reflecting amortization of
intangible assets acquired in the GIP Transaction. In addition,
third quarter 2024 amortization and impairment of intangible assets
included the impact of a $50 million noncash impairment charge
related to certain of the Company's indefinite-lived management
contracts.
- In the fourth quarter of 2023, a restructuring charge(1) of $61
million, comprised of severance and compensation expense for
accelerated vesting of previously granted deferred compensation
awards, was recorded in connection with initiatives to reorganize
specific platforms, primarily Aladdin and private markets.
_________________________
(1)
These expenses have been excluded
from the Company's "as adjusted" financial results under the
expense adjustments for acquisition-related costs and restructuring
charge, as applicable. See pages 10 through 12 for the
reconciliation to GAAP and notes (1) through (3) for more
information on as adjusted items.
SUMMARY OF NONOPERATING INCOME
(EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING
INTERESTS
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
Change
2024
Change
2024
2023
Change
Nonoperating income (expense), GAAP
basis
$
28
$
342
$
(314
)
$
259
$
(231
)
$
721
$
880
$
(159
)
Less: Net income (loss) attributable to
noncontrolling interests ("NCI")
(9
)
114
(123
)
60
(69
)
143
174
(31
)
Nonoperating income (expense), net of
NCI
37
228
(191
)
199
(162
)
578
706
(128
)
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
(2
)
29
(31
)
9
(11
)
45
58
(13
)
Nonoperating income (expense), net of NCI,
as adjusted(2)
$
39
$
199
$
(160
)
$
190
$
(151
)
$
533
$
648
$
(115
)
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
Change
2024
Change
2024
2023
Change
Net gain (loss) on investments, net of
NCI
Private equity
$
(42
)
$
68
$
(110
)
$
9
$
(51
)
$
(10
)
$
349
$
(359
)
Real assets
(5
)
2
(7
)
13
(18
)
14
13
1
Other alternatives(3)
8
17
(9
)
9
(1
)
41
49
(8
)
Other investments(4)
42
15
27
20
22
127
66
61
Hedge gain (loss) on deferred cash
compensation plans(1)
(2
)
29
(31
)
9
(11
)
45
58
(13
)
Subtotal
1
131
(130
)
60
(59
)
217
535
(318
)
Other income/gain (expense/loss)(5)
(10
)
20
(30
)
57
(67
)
132
(10
)
142
Total net gain (loss) on investments, net
of NCI
(9
)
151
(160
)
117
(126
)
349
525
(176
)
Interest and dividend income
212
159
53
236
(24
)
767
473
294
Interest expense
(166
)
(82
)
(84
)
(154
)
(12
)
(538
)
(292
)
(246
)
Net interest income (expense)
46
77
(31
)
82
(36
)
229
181
48
Nonoperating income (expense), net of
NCI
37
228
(191
)
199
(162
)
578
706
(128
)
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
(2
)
29
(31
)
9
(11
)
45
58
(13
)
Nonoperating income (expense), net of NCI,
as adjusted(2)
$
39
$
199
$
(160
)
$
190
$
(151
)
$
533
$
648
$
(115
)
_________________________
(1)
Amounts relate to the gains
(losses) from economically hedging certain BlackRock deferred cash
compensation plans.
(2)
Management believes nonoperating
income (expense), net of NCI, as adjusted, is an effective measure
for reviewing BlackRock’s nonoperating results, which ultimately
impacts BlackRock’s book value. For more information on as adjusted
items and the reconciliation to GAAP, see notes to the condensed
consolidated statements of income and supplemental information on
pages 10 through 12.
(3)
Amounts primarily include net
gains (losses) related to credit funds, direct hedge fund
strategies and hedge fund solutions.
(4)
Amounts primarily include net
gains (losses) related to BlackRock's seed investment portfolio,
net of impact of certain hedges.
(5)
Amounts for the three months and
year ended December 31, 2024, include earnings (losses) from
certain equity method minority investments, which the Company
recorded within nonoperating income (expense) beginning in the
first quarter of 2024 and noncash pre-tax gains (losses) related to
the revaluation of certain minority investments. In addition,
amount for the year ended December 31, 2024 includes a pre-tax gain
of approximately $66 million in connection with a transaction
related to a minority investment in EquiLend Holdings, LLC and a
noncash pre-tax gain in connection with the SpiderRock Transaction
of approximately $19 million.
SUMMARY OF INCOME TAX
EXPENSE
Three Months
Three Months
Ended
Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
Change
2024
Change
2024
2023
Change
Income tax expense
$
442
$
438
$
4
$
574
$
(132
)
$
1,783
$
1,479
$
304
Effective tax rate
20.9
%
24.2
%
(330) bps
26.0
%
(510) bps
21.9
%
21.2
%
70 bps
Highlights
- Fourth quarter 2024 income tax expense includes $63 million of
discrete tax benefits related to the realization of capital losses
from changes in the Company’s organizational tax structure. In
addition, fourth quarter 2024 income tax expense includes a $14
million net noncash tax expense related to the revaluation of
certain deferred income tax liabilities.
- Third quarter 2023 income tax expense included approximately
$223 million of discrete tax benefits related to the resolution of
certain outstanding tax matters.
RECONCILIATION OF GAAP
OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND
OPERATING MARGIN, AS ADJUSTED
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
2024
2024
2023
Operating income, GAAP basis
$
2,075
$
1,585
$
2,006
$
7,574
$
6,275
Non-GAAP expense adjustments:
Compensation expense related to
appreciation (depreciation) on deferred cash compensation plans
(a)
-
28
7
43
57
Amortization and impairment of intangible
assets (b)
125
38
89
291
151
Acquisition-related compensation costs
(b)
116
2
11
148
17
Acquisition-related transaction costs
(b)(1)
38
-
17
90
7
Contingent consideration fair value
adjustments (b)
(28
)
2
(2
)
(36
)
3
Lease costs - New York (c)
-
-
-
-
14
Restructuring charge (d)
-
61
-
-
61
Reduction of indemnification asset
(e)(1)
-
-
-
-
8
Operating income, as adjusted
(1)
$
2,326
$
1,716
$
2,128
$
8,110
$
6,593
Revenue, GAAP basis
$
5,677
$
4,631
$
5,197
$
20,407
$
17,859
Non-GAAP adjustments:
Distribution fees
(322
)
(303
)
(323
)
(1,273
)
(1,262
)
Investment advisory fees
(243
)
(199
)
(226
)
(898
)
(789
)
Revenue used for operating margin
measurement
$
5,112
$
4,129
$
4,648
$
18,236
$
15,808
Operating margin, GAAP basis
36.6
%
34.2
%
38.6
%
37.1
%
35.1
%
Operating margin, as adjusted
(1)
45.5
%
41.6
%
45.8
%
44.5
%
41.7
%
_________________________
(1)
Amounts included within general and administration expense.
See note (1) to the condensed
consolidated statements of income and supplemental information on
pages 11 and 12 for more information on as adjusted items.
RECONCILIATION OF GAAP NONOPERATING
INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME
(LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in millions), (unaudited)
2024
2023
2024
2024
2023
Nonoperating income (expense), GAAP
basis
$
28
$
342
$
259
$
721
$
880
Less: Net income (loss) attributable to
NCI
(9
)
114
60
143
174
Nonoperating income (expense), net of
NCI
37
228
199
578
706
Less: Hedge gain (loss) on deferred cash
compensation plans (a)
(2
)
29
9
45
58
Nonoperating income (expense), less net
income (loss) attributable to NCI, as adjusted (2)
$
39
$
199
$
190
$
533
$
648
See notes (1) and (2) to the
condensed consolidated statements of income and supplemental
information on pages 11 and 12 for more information on as adjusted
items.
RECONCILIATION OF GAAP NET INCOME
ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK,
AS ADJUSTED
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in millions, except per share data),
(unaudited)
2024
2023
2024
2024
2023
Net income attributable to BlackRock,
Inc., GAAP basis
$
1,670
$
1,375
$
1,631
$
6,369
$
5,502
Non-GAAP adjustments(1):
Net impact of hedged deferred cash
compensation plans (a)
2
(1
)
(2
)
(1
)
(1
)
Amortization and impairment of intangible
assets (b)
94
28
67
218
114
Acquisition-related compensation costs
(b)
87
1
8
110
12
Acquisition-related transaction costs
(b)
28
-
13
66
5
Contingent consideration fair value
adjustments (b)
(21
)
2
(2
)
(27
)
3
Lease costs - New York (c)
-
-
-
-
11
Restructuring charge (d)
-
46
-
-
46
Income tax matters
14
-
-
(123
)
-
Net income attributable to BlackRock,
Inc., as adjusted (3)
$
1,874
$
1,451
$
1,715
$
6,612
$
5,692
Diluted weighted-average common shares
outstanding
157.0
150.2
149.6
151.6
150.7
Diluted earnings per common share, GAAP
basis
$
10.63
$
9.15
$
10.90
$
42.01
$
36.51
Diluted earnings per common share, as
adjusted (3)
$
11.93
$
9.66
$
11.46
$
43.61
$
37.77
_________________________
(1)
Non-GAAP adjustments, excluding income tax matters, are net of tax.
See note (3) to the condensed
consolidated statements of income and supplemental information on
page 12 for more information on as adjusted items.
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SUPPLEMENTAL INFORMATION (unaudited)
BlackRock reports its financial results in accordance with GAAP;
however, management believes evaluating the Company’s ongoing
operating results may be enhanced if investors have additional
non-GAAP financial measures. Adjustments to GAAP financial measures
(“non-GAAP adjustments”) include certain items management deems
nonrecurring or that occur infrequently, transactions that
ultimately will not impact BlackRock’s book value or certain tax
items that do not impact cash flow. Management reviews non-GAAP
financial measures, in addition to GAAP financial measures, to
assess ongoing operations and considers them to be helpful, for
both management and investors, in evaluating BlackRock’s financial
performance over time. Management also uses non-GAAP financial
measures as a benchmark to compare its performance with other
companies and to enhance comparability for the reporting periods
presented. Non-GAAP financial measures may pose limitations because
they do not include all of BlackRock’s revenue and expense.
BlackRock’s management does not advocate that investors consider
such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Non-GAAP financial measures may not be comparable to other
similarly titled measures of other companies.
Computations and reconciliations for all periods are derived
from the condensed consolidated statements of income as
follows:
(1) Operating income, as adjusted, and operating margin, as
adjusted: Management believes operating income, as adjusted,
and operating margin, as adjusted, are effective indicators of
BlackRock’s financial performance over time, and, therefore,
provide useful disclosure to investors. Management believes that
operating margin, as adjusted, reflects the Company’s long-term
ability to manage ongoing costs in relation to its revenues. The
Company uses operating margin, as adjusted, to assess the Company’s
financial performance, to determine the long-term and annual
compensation of the Company’s senior-level employees and to
evaluate the Company’s relative performance against industry peers.
Furthermore, this metric eliminates margin variability arising from
the accounting of revenues and expenses related to distributing
different product structures in multiple distribution channels
utilized by asset managers.
- Operating income, as adjusted, includes the following non-GAAP
expense adjustments:
(a)
Compensation expense related to
appreciation (depreciation) on deferred cash compensation plans.
The Company excludes compensation expense related to the market
valuation changes on certain deferred cash compensation plans,
which the Company hedges economically. For these deferred cash
compensation plans, the final value of the deferred amount to be
distributed to employees in cash upon vesting is determined based
on the returns on specified investment funds. The Company
recognizes compensation expense for the appreciation (depreciation)
of the deferred cash compensation liability in proportion to the
vested amount of the award during a respective period, while the
net gain (loss) to economically hedge these plans is immediately
recognized in nonoperating income (expense), which creates a timing
difference impacting net income. This timing difference will
reverse and offset to zero over the life of the award at the end of
the multi-year vesting period. Management believes excluding market
valuation changes related to the deferred cash compensation plans
in the calculation of operating income, as adjusted, provides
useful disclosure to both management and investors of the Company’s
financial performance over time as these amounts are economically
hedged, while also increasing comparability with other
companies.
(b)
Acquisition-related costs.
Acquisition related costs include adjustments related to
amortization and noncash impairment of intangible assets, other
acquisition-related costs, including professional services expense
and compensation costs for nonrecurring retention-related deferred
compensation, and contingent consideration fair value adjustments
incurred in connection with certain acquisitions. Management
believes excluding the impact of these expenses when calculating
operating income, as adjusted, provides a helpful indication of the
Company’s financial performance over time, thereby providing
helpful information for both management and investors while also
increasing comparability with other companies.
(c)
Lease costs – New York. In 2023,
the Company continued to recognize lease expense within general and
administration expense for both its current headquarters located at
50 Hudson Yards in New York and prior headquarters until the
Company's lease on its prior headquarters expired in April 2023.
The Company began lease payments related to its current
headquarters in May 2023, but began recording lease expense in
August 2021 when it obtained access to the building to begin its
tenant improvements. Prior to the Company’s move to its current
headquarters in February 2023, the impact of lease costs related to
50 Hudson Yards was excluded from operating income, as adjusted. In
February 2023, the Company completed the majority of its move to 50
Hudson Yards and no longer excluded the impact of these lease
costs. Subsequently, from February 2023 through April 2023, the
Company excluded the impact of lease costs related to the Company's
prior headquarters. Management believes excluding the impact of
these respective New York lease costs (“Lease costs – New York”)
when calculating operating income, as adjusted, is useful to assess
the Company’s financial performance and ongoing operations, and
enhances comparability among periods presented.
(d)
Restructuring charge. In the
fourth quarter of 2023, the Company recorded a restructuring
charge, comprised of severance and compensation expense for
accelerated vesting of previously granted deferred compensation
awards, in connection with initiatives to reorganize specific
platforms, primarily Aladdin and private markets. Management
believes excluding the impact of these restructuring charges when
calculating operating income, as adjusted, is useful to assess the
Company’s financial performance and ongoing operations, and
enhances comparability among periods presented.
(e)
Reduction of indemnification
asset. In connection with a previous acquisition, BlackRock
recorded an $8 million indemnification asset. Due to the resolution
of certain tax matters in the third quarter of 2023, BlackRock
recorded $8 million of general and administration expense to
reflect the reduction of the indemnification asset and an
offsetting $8 million tax benefit. The $8 million general and
administrative expense and $8 million tax benefit have been
excluded from as adjusted results as there was no impact on
BlackRock’s book value.
- Revenue used for calculating operating margin, as adjusted, is
reduced to exclude all of the Company’s distribution fees, which
are recorded as a separate line item on the condensed consolidated
statements of income, as well as a portion of investment advisory
fees received that is used to pay distribution and servicing costs.
For certain products, based on distinct arrangements, distribution
fees are collected by the Company and then passed-through to
third-party client intermediaries. For other products, investment
advisory fees are collected by the Company and a portion is
passed-through to third-party client intermediaries. However, in
both structures, the third-party client intermediary similarly owns
the relationship with the retail client and is responsible for
distributing the product and servicing the client. The amount of
distribution and investment advisory fees fluctuates each period
primarily based on a predetermined percentage of the value of AUM
during the period. These fees also vary based on the type of
investment product sold and the geographic location where it is
sold. In addition, the Company may waive fees on certain products
that could result in the reduction of payments to the third-party
intermediaries.
(2) Nonoperating income (expense), less net income (loss)
attributable to NCI, as adjusted: Management believes
nonoperating income (expense), less net income (loss) attributable
to NCI, as adjusted, is an effective measure for reviewing
BlackRock’s nonoperating contribution to its results and provides
comparability of this information among reporting periods.
Nonoperating income (expense), less net income (loss) attributable
to NCI, as adjusted, excludes the gain (loss) on the economic hedge
of certain deferred cash compensation plans. As the gain (loss) on
investments and derivatives used to hedge these compensation plans
over time substantially offsets the compensation expense related to
the market valuation changes on these deferred cash compensation
plans, which is included in operating income, GAAP basis,
management believes excluding the gain (loss) on the economic hedge
of the deferred cash compensation plans when calculating
nonoperating income (expense), less net income (loss) attributable
to NCI, as adjusted, provides a useful measure for both management
and investors of BlackRock’s nonoperating results that impact book
value.
(3) Net income attributable to BlackRock, Inc., as
adjusted: Management believes net income attributable to
BlackRock, Inc., as adjusted, and diluted earnings per common
share, as adjusted, are useful measures of BlackRock’s
profitability and financial performance. Net income attributable to
BlackRock, Inc., as adjusted, equals net income attributable to
BlackRock, Inc., GAAP basis, adjusted for certain items management
deems nonrecurring or that occur infrequently, transactions that
ultimately will not impact BlackRock’s book value or certain tax
items that do not impact cash flow.
For each period presented, the non-GAAP adjustments were tax
effected at the respective blended rates applicable to the
adjustments. Amounts for income tax matters in 2024 include a
discrete tax benefit of $137 million recognized in connection with
the reorganization and establishment of a more efficient global
intellectual property and technology platform and corporate
structure. This discrete tax benefit has been excluded from as
adjusted results due to the nonrecurring nature of the intellectual
property reorganization. In addition, amounts for 2024 include a
net noncash expense of $14 million associated with the revaluation
of deferred tax liabilities related to intangible assets and
goodwill as a result of tax rate changes. This discrete tax expense
has been excluded from the as adjusted results as it does not have
a cash flow impact as well as to ensure comparability among periods
presented.
Per share amounts reflect net income attributable to BlackRock,
Inc., as adjusted, divided by diluted weighted-average common
shares outstanding.
(4) ACV: Management believes ACV is an effective
metric for reviewing BlackRock’s technology services’ ongoing
contribution to its operating results and provides comparability of
this information among reporting periods while also providing a
useful supplemental metric for both management and investors of
BlackRock’s growth in technology services revenue over time, as it
is linked to the net new business in technology services. ACV
represents forward-looking, annualized estimated value of the
recurring subscription fees under client contracts, assuming all
client contracts that come up for renewal are renewed, unless we
have received a notice of termination, even though such notice may
not be effective until a later date. ACV also includes the
annualized estimated value of new sales, for existing and new
clients, when we execute client contracts, even though the
recurring fees may not be effective until a later date and excludes
nonrecurring fees such as implementation and consulting fees.
FORWARD-LOOKING STATEMENTS
This earnings release, and other statements that BlackRock may
make, may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act, with respect to
BlackRock’s future financial or business performance, strategies or
expectations. Forward-looking statements are typically identified
by words or phrases such as “trend,” “potential,” “opportunity,”
“pipeline,” “believe,” “comfortable,” “expect,” “anticipate,”
“current,” “intention,” “estimate,” “position,” “assume,”
“outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,”
“achieve,” and similar expressions, or future or conditional verbs
such as “will,” “would,” “should,” “could,” “may” and similar
expressions.
BlackRock cautions that forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time and may contain information that is not purely historical in
nature. Such information may include, among other things,
projections and forecasts. There is no guarantee that any forecasts
made will come to pass. Forward-looking statements speak only as of
the date they are made, and BlackRock assumes no duty to and does
not undertake to update forward-looking statements. Actual results
could differ materially from those anticipated in forward-looking
statements and future results could differ materially from
historical performance.
BlackRock has previously disclosed risk factors in its
Securities and Exchange Commission (“SEC”) reports. These risk
factors and those identified elsewhere in this earnings release,
among others, could cause actual results to differ materially from
forward-looking statements or historical performance and include:
(1) the introduction, withdrawal, success and timing of business
initiatives and strategies; (2) changes and volatility in
political, economic or industry conditions, the interest rate
environment, foreign exchange rates or financial and capital
markets, which could result in changes in demand for products or
services or in the value of assets under management; (3) the
relative and absolute investment performance of BlackRock’s
investment products; (4) BlackRock’s ability to develop new
products and services that address client preferences; (5) the
impact of increased competition; (6) the impact of recent or future
acquisitions or divestitures, including the acquisitions of HPS
(the “HPS Transaction”), Preqin (the “Preqin Transaction”) and the
GIP Transaction (together with the HPS Transaction and the Preqin
Transaction, the “Transactions”); (7) BlackRock’s ability to
integrate acquired businesses successfully, including the
Transactions; (8) risks related to the HPS Transaction and the
Preqin Transaction, including delays in the expected closing date
of the HPS Transaction or the Preqin Transaction, the possibility
that either or both of the HPS Transaction or the Preqin
Transaction does not close, including, but not limited to, due to
the failure to satisfy the closing conditions; the possibility that
expected synergies and value creation from the HPS Transaction or
the Preqin Transaction will not be realized, or will not be
realized within the expected time period; and the risk of impacts
to business and operational relationships related to disruptions
from the HPS Transaction or the Preqin Transaction; (9) the
unfavorable resolution of legal proceedings; (10) the extent and
timing of any share repurchases; (11) the impact, extent and timing
of technological changes and the adequacy of intellectual property,
data, information and cybersecurity protection; (12) the failure to
effectively manage the development and use of artificial
intelligence; (13) attempts to circumvent BlackRock’s operational
control environment or the potential for human error in connection
with BlackRock’s operational systems; (14) the impact of
legislative and regulatory actions and reforms, regulatory,
supervisory or enforcement actions of government agencies and
governmental scrutiny relating to BlackRock; (15) changes in law
and policy and uncertainty pending any such changes; (16) any
failure to effectively manage conflicts of interest; (17) damage to
BlackRock’s reputation; (18) increasing focus from stakeholders
regarding environmental, social and governance matters; (19)
geopolitical unrest, terrorist activities, civil or international
hostilities, and other events outside BlackRock’s control,
including wars, natural disasters and health crises, which may
adversely affect the general economy, domestic and local financial
and capital markets, specific industries or BlackRock; (20)
climate-related risks to BlackRock’s business, products, operations
and clients; (21) the ability to attract, train and retain highly
qualified and diverse professionals; (22) fluctuations in the
carrying value of BlackRock’s economic investments; (23) the impact
of changes to tax legislation, including income, payroll and
transaction taxes, and taxation on products, which could affect the
value proposition to clients and, generally, the tax position of
BlackRock; (24) BlackRock’s success in negotiating distribution
arrangements and maintaining distribution channels for its
products; (25) the failure by key third-party providers of
BlackRock to fulfill their obligations to BlackRock; (26)
operational, technological and regulatory risks associated with
BlackRock’s major technology partnerships; (27) any disruption to
the operations of third parties whose functions are integral to
BlackRock’s exchange-traded funds platform; (28) the impact of
BlackRock electing to provide support to its products from time to
time and any potential liabilities related to securities lending or
other indemnification obligations; and (29) the impact of problems,
instability or failure of other financial institutions or the
failure or negative performance of products offered by other
financial institutions.
BlackRock’s Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and BlackRock’s subsequent filings with the SEC,
accessible on the SEC’s website at www.sec.gov and on BlackRock’s
website at www.blackrock.com, discuss these factors in more detail
and identify additional factors that can affect forward-looking
statements. The information contained on the Company’s website is
not a part of this earnings release.
PERFORMANCE NOTES
Past performance is not indicative of future results. Except as
specified, the performance information shown is as of December 31,
2024 and is based on preliminary data available at that time. The
performance data shown reflects information for all actively and
passively managed equity and fixed income accounts, including US
registered investment companies, European-domiciled retail funds
and separate accounts for which performance data is available,
including performance data for high net worth accounts available as
of November 30, 2024. The performance data does not include
accounts terminated prior to December 31, 2024 and accounts for
which data has not yet been verified. If such accounts had been
included, the performance data provided may have substantially
differed from that shown.
Performance comparisons shown are gross-of-fees for
institutional and high net worth separate accounts, and net-of-fees
for retail funds. The performance tracking shown for index accounts
is based on gross-of-fees performance and includes all
institutional accounts and all iShares® funds globally using an
index strategy. AUM information is based on AUM available as of
December 31, 2024 for each account or fund in the asset class shown
without adjustment for overlapping management of the same account
or fund. Fund performance reflects the reinvestment of dividends
and distributions.
Performance shown is derived from applicable benchmarks or peer
median information, as selected by BlackRock, Inc. Peer medians are
based in part on data either from Lipper, Inc. or Morningstar, Inc.
for each included product.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250115242864/en/
INVESTOR RELATIONS: Caroline Rodda 212.810.3442
MEDIA RELATIONS: Patrick Scanlan 212.810.3622
BlackRock (NYSE:BLK)
過去 株価チャート
から 12 2024 まで 1 2025
BlackRock (NYSE:BLK)
過去 株価チャート
から 1 2024 まで 1 2025
