Who We Are 4 February 2025 Notices and Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating performance im ...

PJT Partners (PJT) came out with quarterly earnings of $1.90 per share, beating the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 71.17%. A quarter ago, it was expected that this investment bank would post earnings of $0.74 per share when it actually produced earnings of $0.93, delivering a surprise of 25.68%.Over the last four quarters, the comp ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) PJT Partners achieved record full-year and Q4 2024 financial results, marked by significant growth and strategic capital management [Full Year 2024 Performance Overview](index=1&type=section&id=Full%20Year%20Overview) PJT Partners achieved record full-year 2024 results across all businesses, with significant increases in revenues, pretax income, and EPS, demonstrating strong growth and confidence in future prospects - Paul J. Taubman, Chairman and CEO, stated the firm delivered **record setting full year 2024 results** with **record performance in all businesses**, and remains confident in future growth prospects[3](index=3&type=chunk) Full Year 2024 Financial Highlights | Metric | Value (2024) | YoY Change | | :--------------------- | :----------- | :--------- | | Revenues | $1.49 billion | +29% | | GAAP Pretax Income | $271 million | +52% | | Adjusted Pretax Income | $278 million | +52% | | GAAP Diluted EPS | $4.92 | +58% | | Adjusted EPS | $5.02 | +54% | [Fourth Quarter 2024 Performance Overview](index=1&type=section&id=Fourth%20Quarter%20Overview) The fourth quarter of 2024 also saw record revenues and substantial growth in both GAAP and Adjusted Pretax Income and EPS, contributing significantly to the overall strong annual performance Fourth Quarter 2024 Financial Highlights | Metric | Value (2024) | YoY Change | | :--------------------- | :----------- | :--------- | | Revenues | $477 million | +45% | | GAAP Pretax Income | $103 million | +99% | | Adjusted Pretax Income | $107 million | +102% | | GAAP Diluted EPS | $1.83 | +110% | | Adjusted EPS | $1.90 | +98% | [Operational and Capital Management Highlights](index=1&type=section&id=Headcount%2C%20Capital%20Management%20and%20Balance%20Sheet%20Highlights) The company increased its firm-wide headcount by 13%, repurchased 3.1 million shares, and maintained a strong balance sheet with record cash and no funded debt - Firm-wide headcount increased by **13% to 1,143** as of December 31, 2024[4](index=4&type=chunk) - Repurchased **3.1 million shares** and share equivalents through December 31, 2024, including record open market repurchases of **2.2 million shares**[4](index=4&type=chunk) - Record cash, cash equivalents, and short-term investments of **$547 million** at year-end, with **no funded debt**[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance) This section analyzes PJT Partners' financial performance, detailing revenue growth, expense trends, and tax provisions for 2024 [Revenues](index=2&type=section&id=Revenues) PJT Partners reported significant revenue growth for both the full year and fourth quarter of 2024, driven primarily by increases in Advisory and Placement Fees Revenues (Dollars in Millions) | Category | Q4 2024 | Q4 2023 | Q4 % Change | FY 2024 | FY 2023 | FY % Change | | :--------------- | :------ | :------ | :---------- | :------ | :-------- | :---------- | | Advisory Fees | $434.5 | $290.6 | 49% | $1,314.0 | $1,026.6 | 28% | | Placement Fees | $32.4 | $28.3 | 14% | $146.3 | $102.6 | 43% | | Interest Income & Other | $10.4 | $9.6 | 8% | $32.9 | $23.9 | 38% | | **Total Revenues** | **$477.3** | **$328.6** | **45%** | **$1,493.2** | **$1,153.2** | **29%** | - Full year Advisory Revenues increased due to strategic advisory, restructuring, and private capital solutions revenues. Placement Revenues increased due to fund placement revenues. Interest Income & Other increased due to higher average cash balances[6](index=6&type=chunk) - Three months ended Advisory Revenues increased principally due to strategic advisory revenues. Placement Revenues increased due to fund placement revenues[7](index=7&type=chunk) [Expenses](index=2&type=section&id=Expenses) Total expenses increased for both the full year and fourth quarter of 2024, primarily due to higher compensation and benefits driven by increased revenues, and non-compensation expenses related to office expansion, business travel, and technology investments Total Expenses and Pretax Income (Year Ended December 31, Dollars in Millions) | Metric | FY 2024 GAAP | FY 2024 Adjusted | FY 2023 GAAP | FY 2023 Adjusted | | :-------------------- | :------------- | :--------------- | :------------- | :--------------- | | Compensation and Benefits | $1,032.1 | $1,030.0 | $805.4 | $805.4 | | % of Revenues | 69.1% | 69.0% | 69.8% | 69.8% | | Non-Compensation | $190.5 | $184.9 | $170.2 | $165.1 | | % of Revenues | 12.8% | 12.4% | 14.8% | 14.3% | | **Total Expenses** | **$1,222.6** | **$1,214.8** | **$975.6** | **$970.5** | | **% of Revenues** | **81.9%** | **81.4%** | **84.6%** | **84.2%** | | Pretax Income | $270.6 | $278.3 | $177.6 | $182.7 | | % of Revenues | 18.1% | 18.6% | 15.4% | 15.8% | Total Expenses and Pretax Income (Three Months Ended December 31, Dollars in Millions) | Metric | Q4 2024 GAAP | Q4 2024 Adjusted | Q4 2023 GAAP | Q4 2023 Adjusted | | :-------------------- | :------------- | :--------------- | :------------- | :--------------- | | Compensation and Benefits | $326.0 | $323.9 | $232.3 | $232.3 | | % of Revenues | 68.3% | 67.9% | 70.7% | 70.7% | | Non-Compensation | $48.4 | $46.6 | $44.6 | $43.3 | | % of Revenues | 10.1% | 9.8% | 13.6% | 13.2% | | **Total Expenses** | **$374.4** | **$370.5** | **$276.9** | **$275.6** | | **% of Revenues** | **78.4%** | **77.6%** | **84.3%** | **83.9%** | | Pretax Income | $102.9 | $106.8 | $51.7 | $53.0 | | % of Revenues | 21.6% | 22.4% | 15.7% | 16.1% | [Compensation and Benefits Expense](index=3&type=section&id=Compensation%20and%20Benefits%20Expense) Compensation and benefits expense increased significantly for both periods, primarily driven by higher revenues, partially offset by a lower accrual rate - Full Year GAAP Compensation and Benefits Expense was **$1.03 billion** in 2024, up from **$805 million** in 2023. Adjusted Compensation and Benefits Expense was **$1.03 billion** in 2024, up from **$805 million** in 2023. The increase was driven by higher revenues, partially offset by a lower accrual rate[10](index=10&type=chunk) - Q4 GAAP Compensation and Benefits Expense was **$326 million** in 2024, up from **$232 million** in 2023. Adjusted Compensation and Benefits Expense was **$324 million** in 2024, up from **$232 million** in 2023. The increase was driven by higher revenues, partially offset by a lower accrual rate[11](index=11&type=chunk) [Non-Compensation Expense](index=3&type=section&id=Non-Compensation%20Expense) Non-compensation expenses rose due to increased occupancy costs from office expansions, higher business travel, and investments in technology infrastructure - Full Year GAAP Non-Compensation Expense was **$191 million** in 2024, up from **$170 million** in 2023. Adjusted Non-Compensation Expense was **$185 million** in 2024, up from **$165 million** in 2023[12](index=12&type=chunk) - Full Year increase was principally due to increases in Occupancy and Related (NY headquarters and London office expansion), Travel and Related (increased business travel), and Communications and Information Services (technology infrastructure investments)[13](index=13&type=chunk) - Q4 GAAP Non-Compensation Expense was **$48 million** in 2024, up from **$45 million** in 2023. Adjusted Non-Compensation Expense was **$47 million** in 2024, up from **$43 million** in 2023[14](index=14&type=chunk) - Q4 increase was principally due to increases in Occupancy and Related (NY headquarters and London office expansion), Travel and Related (increased business travel), and Professional Fees (higher senior advisor expenses), partially offset by a decrease in Other Expenses (lower bad debt expense)[15](index=15&type=chunk) [Provision for Taxes](index=4&type=section&id=Provision%20for%20Taxes) The company's GAAP effective tax rate decreased for the full year 2024, while the Adjusted Net Income, If-Converted effective tax rate also saw a reduction Effective Tax Rates | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------------- | :------ | :------ | :------ | :------ | | GAAP Net Income Effective Tax Rate | 11.6% | 12.0% | 11.9% | 18.0% | | Adjusted Net Income, If-Converted Effective Tax Rate | N/A | N/A | 20.6% | 25.3% | [Capital Management and Shareholder Returns](index=4&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) This section details PJT Partners' capital management strategies, including balance sheet strength, share repurchases, and dividend declarations [Balance Sheet and Liquidity](index=4&type=section&id=Capital%20Management%20and%20Balance%20Sheet) As of December 31, 2024, PJT Partners maintained a strong liquidity position with $547 million in cash, cash equivalents, and short-term investments, and no funded debt - Held cash, cash equivalents and short-term investments of **$547 million** as of December 31, 2024[19](index=19&type=chunk) - **No funded debt** as of December 31, 2024[19](index=19&type=chunk) [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) The company actively repurchased shares and share equivalents throughout 2024, including significant open market repurchases, and has a remaining authorization of $278 million - During the year ended December 31, 2024, the Company repurchased **2.2 million shares** of Class A common stock in the open market, exchanged **542 thousand Partnership Units** for cash, and net share settled **339 thousand shares** to satisfy employee tax obligations[20](index=20&type=chunk) - In total for FY 2024, **3.1 million share and share equivalents** were repurchased at an average price of **$109.14 per share**[21](index=21&type=chunk) - During Q4 2024, **489 thousand share and share equivalents** were repurchased at an average price of **$149.28 per share**[21](index=21&type=chunk) - Remaining repurchase authorization was **$278 million** as of December 31, 2024[22](index=22&type=chunk) - The Company intends to repurchase **324 thousand Partnership Units** for cash on February 11, 2025[22](index=22&type=chunk) [Dividend Declaration](index=5&type=section&id=Dividend) The Board of Directors declared a quarterly dividend of $0.25 per share of Class A common stock, payable in March 2025 - A quarterly dividend of **$0.25 per share** of Class A common stock was declared[23](index=23&type=chunk) - The dividend will be paid on March 19, 2025, to Class A common stockholders of record as of March 5, 2025[23](index=23&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides context on PJT Partners' business, clarifies forward-looking statements, and explains the use of non-GAAP financial measures [About PJT Partners](index=5&type=section&id=About%20PJT%20Partners) PJT Partners is a global, advisory-focused investment bank known for providing independent, high-touch client service and attracting top talent to deliver leading advice on transformative transactions and capital raising - PJT Partners is a premier, global, advisory-focused investment bank[25](index=25&type=chunk) - The firm provides independent advice coupled with high-touch client service, attracting top talent[25](index=25&type=chunk) - Services include delivering leading advice to consequential companies, effecting transformative transactions and restructurings, and raising billions of dollars of capital globally[25](index=25&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines the nature of forward-looking statements, emphasizing that they are based on current beliefs and subject to inherent uncertainties and risks that could cause actual results to differ materially - Forward-looking statements concern future results, business strategies, acquisitions, financing plans, competitive position, growth opportunities, operating performance improvements, effects of competition, and future legislation/regulations[26](index=26&type=chunk) - These statements are not historical facts or assurances of future performance, but are based on current beliefs, expectations, and assumptions, subject to inherent uncertainties, risks, and changes in circumstances[27](index=27&type=chunk) - Important factors that could cause actual results to differ materially include changes in governmental regulations, cyber attacks, system failures, catastrophic events, third-party service provider failures, and volatility in the political and economic environment[27](index=27&type=chunk)[28](index=28&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Management uses specific non-GAAP measures, such as Adjusted Pretax Income and Adjusted EPS, to provide investors with a clearer understanding of operating results by removing the impact of acquisition-related expenses and certain tax adjustments - Non-GAAP measures (Adjusted Pretax Income, Adjusted Net Income, Adjusted Net Income, If-Converted, Adjusted EPS, Adjusted Compensation and Benefits Expense, Adjusted Non-Compensation Expense) are used by management for resource allocation and compensation decisions and are useful for investors[30](index=30&type=chunk)[31](index=31&type=chunk) - These measures remove the impact of acquisition-related compensation expense, acquisition-related intangible asset amortization, and the net change to the amount payable to Blackstone related to compensation-related tax deductions[31](index=31&type=chunk) - Adjusted Net Income, If-Converted, illustrates the tax impact assuming all outstanding partnership units are exchanged for Class A common stock, subjecting all income to corporate-level tax[32](index=32&type=chunk) [Appendix](index=7&type=section&id=Appendix) This section provides detailed unaudited GAAP consolidated statements, reconciliations of GAAP to non-GAAP financial data, and summaries of shares outstanding [GAAP Condensed Consolidated Statements of Operations (unaudited)](index=8&type=section&id=GAAP%20Condensed%20Consolidated%20Statements%20of%20Operations%20%28unaudited%29) This section provides the unaudited GAAP condensed consolidated statements of operations, detailing revenues, expenses, net income, and earnings per share for the three months and year ended December 31, 2024 and 2023 GAAP Condensed Consolidated Statements of Operations (unaudited) (Dollars in Thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Advisory Fees | $434,453 | $290,633 | $1,314,003 | $1,026,646 | | Placement Fees | $32,432 | $28,338 | $146,258 | $102,611 | | Interest Income and Other | $10,396 | $9,583 | $32,916 | $23,925 | | **Total Revenues** | **$477,281** | **$328,554** | **$1,493,177** | **$1,153,182** | | Compensation and Benefits | $326,022 | $232,271 | $1,032,070 | $805,385 | | Total Expenses | $374,401 | $276,861 | $1,222,608 | $975,573 | | Income Before Provision for Taxes | $102,880 | $51,693 | $270,569 | $177,609 | | Provision for Taxes | $11,883 | $6,202 | $32,096 | $31,927 | | Net Income | $90,997 | $45,491 | $238,473 | $145,682 | | Net Income Attributable to PJT Partners Inc. | $51,304 | $24,912 | $134,393 | $81,799 | | Diluted EPS | $1.83 | $0.87 | $4.92 | $3.12 | [Reconciliations of GAAP to Non-GAAP Financial Data (unaudited)](index=9&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Financial%20Data%20%28unaudited%29) This section presents the reconciliations between GAAP and non-GAAP financial measures, including pretax income, net income, and per-share data, along with adjustments for compensation and non-compensation expenses Reconciliations of GAAP to Non-GAAP Financial Data (unaudited) (Dollars in Thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | | GAAP Net Income | $90,997 | $45,491 | $238,473 | $145,682 | | GAAP Pretax Income | $102,880 | $51,693 | $270,569 | $177,609 | | Adjusted Pretax Income | $106,766 | $52,959 | $278,342 | $182,665 | | Adjusted Net Income | $94,001 | $46,259 | $244,634 | $149,897 | | Adjusted Net Income, If-Converted | $85,558 | $41,293 | $221,103 | $136,368 | | GAAP Diluted EPS | $1.83 | $0.87 | $4.92 | $3.12 | | Adjusted Net Income, If-Converted Per Share | $1.90 | $0.96 | $5.02 | $3.27 | Reconciliations of GAAP to Non-GAAP Expenses (unaudited) (Dollars in Thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | | GAAP Compensation and Benefits Expense | $326,022 | $232,271 | $1,032,070 | $805,385 | | Adjusted Compensation and Benefits Expense | $323,919 | $232,271 | $1,029,967 | $805,385 | | GAAP Non-Compensation Expense | $48,379 | $44,590 | $190,538 | $170,188 | | Adjusted Non-Compensation Expense | $46,596 | $43,324 | $184,868 | $165,132 | [Summary of Shares Outstanding (unaudited)](index=11&type=section&id=Summary%20of%20Shares%20Outstanding%20%28unaudited%29) This table provides a summary of weighted-average shares outstanding for basic, diluted, and If-Converted shares for both the three months and year ended December 31, 2024 and 2023, including the dilutive impact of unvested RSUs and Partnership Units Weighted-Average Shares Outstanding (unaudited) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :---------- | :---------- | :---------- | :---------- | | Basic Shares Outstanding, GAAP | 25,401,719 | 25,362,576 | 25,454,445 | 25,255,327 | | Diluted Shares Outstanding, GAAP | 44,948,361 | 43,472,884 | 44,105,131 | 41,882,034 | | If-Converted Shares Outstanding | 44,948,160 | 42,943,082 | 44,051,384 | 41,749,633 | | Fully-Diluted Shares Outstanding (as of Dec 31) | 46,675,815 | 46,046,461 | N/A | N/A | [Footnotes](index=12&type=section&id=Footnotes) This section provides detailed explanations for the adjustments made in the non-GAAP financial reconciliations and the calculations for shares outstanding - Footnotes explain adjustments for acquisition-related compensation expense, amortization of intangible assets, and the net change to the payable due to Blackstone[41](index=41&type=chunk) - Footnotes clarify the calculation of Adjusted Taxes and If-Converted Taxes, detailing assumptions for partnership unit exchanges[41](index=41&type=chunk) - Footnotes provide details on the dilutive impact of unvested RSUs and Partnership Units for GAAP and If-Converted shares outstanding calculations[41](index=41&type=chunk)

PJT Partners (PJT) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 4, 2025, might help the stock move higher if these key numbers are better tha ...

Growth Stocks and PJT Partners - Growth investors focus on stocks with above-average financial growth, which can deliver solid returns but carry higher risk and volatility [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks, and PJT Partners is currently recommended due to its favorable Growth Score and top Zacks Rank [2] - Stocks with the best growth features consistently outperform the market, especially those with a Growth Score of A or B and a Zacks Rank 1 or 2 [3] Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth indicating strong prospects and potential stock price gains [4] - PJT Partners' historical EPS growth rate is 0.9%, but its projected EPS growth for this year is 34.6%, significantly higher than the industry average of 15.5% [5] Cash Flow Growth - Higher-than-average cash flow growth is particularly beneficial for growth-oriented companies, enabling business expansion without relying on external funding [6] - PJT Partners' year-over-year cash flow growth is 38.1%, well above the industry average of -21.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.9%, compared to the industry average of 10.3% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements [8] - PJT Partners' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 1.1% over the past month [8] Conclusion - PJT Partners has earned a Growth Score of B and a Zacks Rank 2 due to its strong earnings estimate revisions and growth metrics [10] - This combination positions PJT Partners well for outperformance, making it an attractive option for growth investors [12]

Stock Performance - PJT Partners' stock has risen by 15.4% over the past month and hit a new 52-week high of $163.54 [1] - The stock has gained 60.5% since the start of the year, outperforming the Zacks Finance sector (24.1%) and the Zacks Financial - Miscellaneous Services industry (17.7%) [1] Earnings and Revenue - PJT Partners has consistently beaten earnings estimates, with no misses in the last four quarters [2] - In the last earnings report, the company reported EPS of $0.93 versus the consensus estimate of $0.74 [2] - For the current fiscal year, PJT Partners is expected to post earnings of $4.40 per share on $1.42 billion in revenues, representing a 34.56% change in EPS and a 23.22% change in revenues [3] - For the next fiscal year, the company is expected to earn $5.40 per share on $1.62 billion in revenues, representing year-over-year changes of 22.73% and 13.65%, respectively [3] Valuation Metrics - PJT Partners trades at 37.2X current fiscal year EPS estimates, a premium to the peer industry average of 13.1X [7] - On a trailing cash flow basis, the stock trades at 22.9X versus its peer group's average of 9.5X [7] - The company has a Value Score of C, Growth Score of B, and Momentum Score of F, resulting in a VGM Score of B [6] Zacks Rank and Style Scores - PJT Partners currently has a Zacks Rank of 2 (Buy) due to rising earnings estimates [8] - The company's Style Scores (Value, Growth, Momentum) and Zacks Rank suggest it could still be poised for more gains [8] Industry Comparison - The Financial - Miscellaneous Services industry is in the top 31% of all industries, indicating favorable conditions for PJT Partners and its peers [11] - WisdomTree, Inc. (WT), a peer company, has a Zacks Rank of 2 (Buy) and a Value Score of C, Growth Score of B, and Momentum Score of B [9] - WisdomTree, Inc. beat earnings estimates by 5.88% last quarter and is expected to post earnings of $0.74 per share on revenue of $429.19 million for the current fiscal year [10] - WisdomTree, Inc.'s stock has gained 10.1% over the past month and trades at a forward P/E of 16.73X and a P/CF of 21.79X [10]

Global M&A and Restructuring Activity - Worldwide M&A announced volumes during the first nine months of 2024 were up 16% compared with the first nine months of 2023, with annualized volume up 7% compared to 2023[109] - Global restructuring and special situations activity remained strong in Q3 2024, driven by elevated levels of liability management and balance sheet restructurings[110] Fund Placement Activity - Fund placement activity increased from a year ago but remained challenged due to macroeconomic conditions and investor selectivity[111] Q3 2024 Financial Performance - Total revenues for Q3 2024 were $326.3 million, a 17% increase compared to $278.4 million in Q3 2023[125] - Advisory fees for Q3 2024 were $283.8 million, up 16% from $244.1 million in Q3 2023[125] - Placement fees for Q3 2024 were $32.5 million, a 22% increase from $26.7 million in Q3 2023[125] - Net income attributable to PJT Partners Inc. for Q3 2024 was $22.2 million, a 27% increase from $17.4 million in Q3 2023[125] - Compensation and benefits expenses for Q3 2024 were $226.8 million, up 17% from $193.5 million in Q3 2023[125] - Total expenses for Q3 2024 were $276.9 million, a 17% increase from $235.8 million in Q3 2023[125] - Net income for Q3 2024 was $41.1 million, a 32% increase from $31.2 million in Q3 2023[125] - Total revenues for Q3 2024 were $326.3 million, a $48.0 million increase compared to $278.4 million in Q3 2023[126] - Advisory fees for Q3 2024 were $283.8 million, a $39.7 million increase compared to $244.1 million in Q3 2023, driven by private capital solutions revenues[126] - Placement fees for Q3 2024 were $32.5 million, a $5.8 million increase compared to $26.7 million in Q3 2023, due to higher fund placement revenues[126] - Expenses for Q3 2024 were $276.9 million, a $41.1 million increase compared to $235.8 million in Q3 2023, driven by higher compensation and benefits, occupancy, and other expenses[129] Nine Months Ended September 30, 2024 Financial Performance - Total revenues for the nine months ended September 30, 2024, were $1,015.9 million, a $191.3 million increase compared to $824.6 million in the same period in 2023[127] - Advisory fees for the nine months ended September 30, 2024, were $879.6 million, a $143.5 million increase compared to $736.0 million in the same period in 2023, driven by strategic advisory, restructuring, and private capital solutions revenues[128] - Placement fees for the nine months ended September 30, 2024, were $113.8 million, a $39.6 million increase compared to $74.3 million in the same period in 2023, due to a significant increase in fund placement revenues[128] Share Repurchase Program - The company repurchased 1.9 million shares of Class A common stock at an average price of $100.08 per share, totaling $185.5 million, under the share repurchase program[148] Cash and Investments - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments of $477.0 million, compared to $436.9 million as of December 31, 2023[137] Employee Loans and Guarantees - The company's guarantee for employee loans was $2.0 million as of September 30, 2024, down from $2.3 million as of December 31, 2023[151] Tax Receivable Agreement Liabilities - The company's tax receivable agreement liabilities were $30.7 million as of September 30, 2024, up from $29.7 million as of December 31, 2023[153] Allowance for Credit Losses - The allowance for credit losses increased to $4.0 million as of September 30, 2024 from $2.4 million as of December 31, 2023[161] Foreign Currency Fluctuations - Foreign currency fluctuations resulted in a $2.7 million gain in Other Comprehensive Income for the nine months ended September 30, 2024, compared to a $0.5 million loss in the same period of 2023[163] - The company reported a $1.3 million loss in Interest Income and Other due to foreign currency fluctuations for the nine months ended September 30, 2024, compared to a $3.4 million loss in the same period of 2023[163]

Growth Stocks Overview - Growth stocks are attractive due to their above-average financial growth and potential for exceptional returns, but they carry higher risk and volatility [1] - Finding great growth stocks is challenging as betting on stocks with declining growth stories can lead to significant losses [1] Zacks Growth Style Score and PJT Partners - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - PJT Partners is recommended by the Zacks system due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank 1 or 2 consistently outperform the market [3] Key Growth Factors for PJT Partners Earnings Growth - Earnings growth is a critical factor for growth stocks, with double-digit growth indicating strong prospects [4] - PJT Partners' historical EPS growth rate is 4.7%, but its projected EPS growth for this year is 34.6%, significantly higher than the industry average of 15.3% [5] Cash Flow Growth - High cash flow growth is essential for growth-oriented companies to fund new projects without external financing [6] - PJT Partners' year-over-year cash flow growth is 38.1%, compared to the industry average of -22% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.9%, above the industry average of 10.7% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate with near-term stock price movements [8] - PJT Partners' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1.1% over the past month [9] Conclusion - PJT Partners' combination of a Zacks Rank 2 and a Growth Score of A positions it well for outperformance, making it an attractive option for growth investors [9][10]

Investment Strategy - The Value Lab focuses on long-only value ideas, targeting international mispriced equities with a portfolio yield of about 4% [1] - The Valkyrie Trading Society shares high-conviction developed market ideas that are downside limited and likely to generate non-correlated and outsized returns [3] Company Performance - PJT Partners' restructuring franchise continues to perform well, and the Park Hill placement franchise is also noted for its performance [2] Services Offered - The Value Lab provides members with a portfolio featuring real-time updates, 24/7 chat support, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2]

Financial Data and Key Metrics - Q3 2024 revenues reached a record $326 million, up 17% YoY, with adjusted pretax income up 16% and adjusted EPS up 19% [6] - Nine-month revenues were $1.016 billion, up 23% YoY, with adjusted pretax income up 32% and adjusted EPS up 35% [6] - Compensation expense was 69.5% of revenues for the first nine months, consistent with full-year 2024 expectations [10] - Adjusted non-compensation expense was $49 million for Q3, up 19% YoY, and $138 million for the first nine months, up 14% YoY [11] - Adjusted pretax income was $51 million for Q3 and $172 million for the first nine months, with an effective tax rate of 21% [13] - Q3 adjusted EPS was $0.93, and nine-month adjusted EPS was $3.10 [14] - The company ended Q3 with $477 million in cash and cash equivalents and $491 million in net working capital, with no funded debt outstanding [16] Business Line Performance - PJT Park Hill revenues rebounded significantly, with year-to-date fundraising volumes more than double YoY, outperforming the broader primary fundraising market [18][19] - Restructuring revenues reached record levels, with 2024 expected to be another record year due to elevated restructuring activity and liability management [21][22] - Strategic advisory revenues were up solidly YoY for the nine months, with Q3 revenues up slightly, reflecting a slow recovery in the M&A market [23][24] - The company has 35% more strategic advisory partners with over two years of tenure compared to 2021, leading to higher win rates and a growing backlog of transactions [25] Market and Geographic Performance - The acquisition of deNovo Partners strengthens the company's presence in the Gulf region, combining deNovo's regional expertise with PJT's global advisory capabilities [7][17] - The company continues to expand its global reach and sees network benefits from its collaborative business model, delivering integrated advisory and capital raising services worldwide [26] Strategic Direction and Industry Competition - The company remains committed to investing in capabilities, industry expertise, and geographic expansion, with the acquisition of deNovo Partners being a key strategic move [6][7] - The restructuring cycle is expected to continue due to high interest rates, technological disruption, and changing consumer preferences, providing a tailwind for the restructuring business [22] - The M&A market is expected to recover more significantly in 2025, driven by rate cuts, open capital markets, and increased private equity activity [24][36] Management Commentary on Operating Environment and Outlook - Management is confident in the company's near, intermediate, and long-term growth prospects, citing a strong pipeline, increased client traction, and a favorable M&A backdrop [25][26] - The company expects strategic advisory revenues to grow meaningfully in excess of headcount in 2025, leading to improved compensation leverage [45][49] - The restructuring cycle is seen as multiyear, with continued demand for liability management and restructuring services [33][34] Other Important Information - The company closed the acquisition of deNovo Partners on October 1, 2024, enhancing its capabilities in the Gulf region [7][17] - The Board approved a dividend of $0.25 per share, payable on December 18, 2024, to shareholders of record as of December 4, 2024 [16] Q&A Session Summary Question: Capacity and productivity expectations for the strategic advisory business - The company does not manage to a specific revenue-per-partner metric due to varying factors such as macroeconomic conditions and franchise strength [29] - The firm has significantly improved its market presence and expects higher productivity in 2025 compared to previous cycles [30][31] Question: Pace of new restructuring mandates - The restructuring cycle is expected to be long-tailed, with no material change in the onboarding of new clients, and the company remains constructive on 2024 and beyond [33][34] Question: Confidence in a stronger M&A market in 2025 - Management cites rate cuts, open capital markets, and increased corporate appetite for M&A as key drivers for a stronger M&A environment in 2025 [36][37] - The company has a near-record mandate count and a growing backlog of announced transactions, positioning it well for 2025 [38] Question: Sponsor activity in the M&A market - Sponsor activity is expected to improve but is unlikely to return to the levels seen during the near-zero interest rate environment [39] Question: Leveraging Park Hill's sponsor relationships - The company leverages its strategic advisory and restructuring capabilities to build strong sponsor relationships, with Park Hill playing a key role in fund continuation services [40][41][42] Question: Compensation leverage and headcount growth - Strategic advisory revenues are expected to grow faster than headcount in 2025, leading to improved compensation leverage [45][49] Question: Park Hill's fundraising market outlook - Fund continuation vehicles are expected to remain a significant part of the market, with Park Hill benefiting from its differentiated approach to distribution and origination [51][52] Question: Structural changes in compensation ratios - The company is confident in its ability to return to a 64% compensation ratio, despite inflationary pressures at the junior level [54] Question: Capital allocation and acquisition strategy - The company prioritizes building a best-in-class firm and will consider acquisitions only if they are highly attractive and complementary to its existing business [56] Question: Impact of the deNovo acquisition - The deNovo acquisition is expected to have an immediate impact across all business lines, with long-term aspirations to establish a strong presence in the Middle East [58][59]