Core Insights - Vertiqal Studios has announced a collaboration with Viral Nation to enhance social media and content creation strategies in 2025, focusing on growth through acquisitions and co-production initiatives [1][10]. Group 1: Acquisition Details - Vertiqal Studios has acquired four high-performing Instagram channels from Viral Nation, adding 1,773,000 followers to its existing audience of 52 million, with 73% of followers based in the United States [2]. - The acquisition was completed under an asset purchase agreement (APA) for a total consideration of US$150,000, which includes US$50,000 in cash and US$100,000 through the issuance of 5,737,200 common shares at a deemed price of $0.025 per share [3]. Group 2: Revenue-Sharing Model - The APA establishes a revenue-sharing model where Vertiqal Studios will retain 70% of the revenue generated from media driven by Viral Nation through its channel network, while Viral Nation will receive 30% [6]. Group 3: Technology and Content Production - Viral Nation will provide Vertiqal Studios with access to its technology solutions, enhancing media sales strategies and analytics capabilities [7]. - The two companies will co-produce original content aimed at engaging Gen Z and Millennial audiences, leveraging their combined creative expertise and networks [9]. Group 4: Strategic Importance - This collaboration marks a significant milestone for Vertiqal Studios, reinforcing its position as a leading entity in the digital media landscape and emphasizing its commitment to growth and innovation [10][11].

Company Overview - Virtus Investment Partners, Inc. (VRTS) experienced a 1% decline in shares following a report of a decrease in assets under management (AUM) for October 2024, with a month-end AUM of $179.41 billion, down 2.4% from September 30, 2024, attributed to unfavorable market performance [1] - The company manages an additional $2.3 billion in other fee-earning assets, which is not included in the AUM figure [1] Performance Breakdown - In October, the open-end fund balance decreased by 2.6% to $56.6 billion, while the closed-end fund balance fell by 1.3% to $10.3 billion [2] - Institutional accounts saw a 3% decline to $62.7 billion, and retail separate accounts decreased by 1.6% to $49.8 billion [2] Market Position - The integrated multi-boutique business model of Virtus Investment is expected to support its performance in a rapidly growing industry, although elevated operating expenses may negatively impact the bottom line in the near term [3] - Over the past six months, shares of Virtus Investment have increased by 4.1%, which is significantly lower than the industry growth of 30.1% [3] Competitive Landscape - Franklin Resources, Inc. (BEN) reported a preliminary month-end AUM of $1.63 trillion as of October 31, 2024, reflecting a 2.9% decrease from the prior month due to unfavorable market returns and long-term net outflows of $18.5 billion [5] - Invesco (IVZ) announced a month-end AUM of $1.77 trillion for October 2024, representing a 1.3% decline from the previous month, with net long-term inflows of $2 billion [6][7]

Financial Data and Key Metrics Changes - The company reported a total assets under management (AUM) increase of 6% to $183.7 billion, driven by market performance and positive net flows [6][12] - The operating margin improved to 34.4%, up from 32.5% in the previous quarter, marking the highest level in two years [10][19] - Adjusted earnings per share increased by 6% to $6.92, the highest since Q1 2022 [10][20] Business Line Data and Key Metrics Changes - Retail separate accounts generated positive net flows of $0.4 billion, with a 5% organic growth rate over the past year [8][16] - Global funds AUM increased by 29% year-over-year, with 7% organic growth [13] - ETF AUM grew by 88% year-over-year, with 65% organic growth [13] Market Data and Key Metrics Changes - Institutional net outflows improved to $1.1 billion from $1.7 billion sequentially, primarily driven by redemptions of lower fee mandates [7][16] - Open-end fund net outflows improved to $1 billion from $1.3 billion in the previous quarter, mainly due to positive flows in fixed income strategies [8][16] Company Strategy and Development Direction - The company continues to focus on organic growth opportunities in retail separate accounts, ETFs, and global funds, while also exploring M&A opportunities to add capabilities [27][28] - New product introductions include actively managed ETFs and private credit CLO ETFs, reflecting a strategy to meet growing demand in these areas [5][29] Management Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter could experience volatility due to tax considerations and the election cycle, making it difficult to predict flows [23] - Positive trends in retail separate accounts, global funds, and ETFs are expected to continue, with a strong pipeline for institutional flows despite current known redemptions exceeding known wins [9][23] Other Important Information - The company has maintained a disciplined approach to capital management, increasing share buybacks and dividends while investing in business growth [11][22] - The average fee rate remained stable at 41.9 basis points, reflecting solid investment performance and differentiated product offerings [17] Q&A Session Summary Question: Insights on fourth quarter flows - Management indicated that October trends are positive, but volatility is expected in November and December due to various factors [23] Question: Adjusted operating expenses outlook - Management confirmed that the current level of operating expenses is appropriate for modeling, with ongoing efforts to streamline costs [24] Question: Inorganic growth and M&A conversations - Management emphasized that while organic growth is prioritized, they are exploring M&A opportunities to enhance capabilities, particularly in private markets [27] Question: Capital allocation and new product opportunities - Management expressed confidence in the ongoing development of new products, particularly in ETFs and global funds, to meet market demand [29] Question: Affiliate ownership increase impact - Management explained that ownership in an affiliate increased to approximately 80%, which will impact non-controlling interests moving forward [33] Question: Institutional pipeline and flow outlook - Management noted that outflows are primarily due to reallocations rather than terminations, and they remain optimistic about the institutional pipeline [37]

Company Performance - Virtus Investment Partners reported quarterly earnings of $6.92 per share, exceeding the Zacks Consensus Estimate of $6.81 per share, and up from $6.21 per share a year ago, representing an earnings surprise of 1.62% [1] - The company posted revenues of $205.13 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 1.25%, compared to $197.45 million in the same quarter last year [1] - Over the last four quarters, Virtus has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [1] Stock Outlook - The immediate price movement of Virtus shares will largely depend on management's commentary during the earnings call, as the stock has lost about 11.9% since the beginning of the year, while the S&P 500 has gained 21.8% [2] - The current consensus EPS estimate for the upcoming quarter is $7.64 on revenues of $216.33 million, and for the current fiscal year, it is $26.21 on revenues of $827.31 million [4] Industry Context - The Financial - Investment Management industry, to which Virtus belongs, is currently ranked in the top 9% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [5] - Another company in the same industry, Victory Capital Holdings, is expected to report quarterly earnings of $1.34 per share, reflecting a year-over-year increase of 13.6%, with revenues projected at $223.18 million, up 6.4% from the previous year [5]

Financial Performance - Diluted earnings per share (EPS) for Q3 2024 was $5.71, an increase of 36% from $4.19 in Q3 2023[2] - Total revenues for the three months ended September 30, 2024, increased by 4% to $227,029,000 compared to $219,271,000 for the same period in 2023[15] - Net income for the three months ended September 30, 2024, increased by 29% to $49,104,000 compared to $38,154,000 for the same period in 2023[15] - Earnings per share (EPS) - basic for the three months ended September 30, 2024, was $5.80, a 36% increase from $4.26 in the same period last year[15] - Total revenues for the quarter ended September 30, 2024, were $227,029 million, an increase of 3.5% compared to $219,271 million for the same period in 2023[22] - Operating income for the quarter was $55,258 million, up 23.0% from $44,903 million in the same quarter last year[22] - Adjusted operating income increased to $70,468 million, reflecting a 5.5% rise from $66,980 million in the prior year[22] - Net income attributable to Virtus Investment Partners, Inc. was $40,980 million, compared to $30,906 million in the same quarter of 2023, marking a 32.5% increase[24] - Earnings per share (diluted) under GAAP was $5.71, up from $4.19 in the same quarter last year, representing a 36.2% increase[24] - The adjusted earnings per share (diluted) was $6.92, compared to $6.21 in the same quarter of 2023, indicating an increase of 11.4%[24] Sales and Revenue Growth - Total sales reached $6.6 billion, up 14% year-over-year, with institutional sales of $1.2 billion increasing 3% and retail separate account sales of $2.3 billion increasing 4%[4][5] - Investment management fees increased by 5% to $193,843,000 for the three months ended September 30, 2024, compared to $184,869,000 for the same period in 2023[15] - Total operating expenses decreased by 1% to $171,771,000 for the three months ended September 30, 2024, compared to $174,368,000 for the same period in 2023[15] - Cash dividends declared per common share increased by 18% to $2.25 for the three months ended September 30, 2024, compared to $1.90 for the same period in 2023[15] Assets Under Management (AUM) - Assets under management (AUM) increased to $183.7 billion, a 13% increase from $162.5 billion year-over-year[4] - Total assets under management (AUM) as of September 30, 2024, reached $183,742,000, an increase from $162,539,000 as of September 30, 2023[18] - Open-End Funds assets under management decreased from $51.1 billion on 9/30/2023 to $49.7 billion on 12/31/2023, with a projected increase to $50.9 billion by 6/30/2024[19] - Closed-End Funds assets under management remained stable, with a slight increase from $58.2 billion on 9/30/2023 to $58.4 billion on 12/31/2023, and projected to reach $58.6 billion by 6/30/2024[19] - Retail Separate Accounts assets under management remained constant at $43.3 billion for both 9/30/2023 and 12/31/2023, with a slight increase projected to $43.9 billion by 3/31/2024[19] - Institutional Accounts assets under management increased from $30.3 billion on 9/30/2023 to $33.2 billion on 12/31/2023, with a projected decrease to $30.7 billion by 6/30/2024[19] Expenses and Financial Adjustments - Operating income rose to $55.3 million, a 25% increase from $44.2 million in the prior quarter, driven by a 5% decrease in operating expenses[7] - Total operating expenses decreased to $171,771 million from $174,368 million year-over-year, a reduction of 0.3%[22] - Employment expenses increased to $105,555 million, up from $101,587 million in the same period last year, reflecting a 4% rise[25] - Interest and dividend income, as adjusted, decreased to $4,736 million from $5,848 million year-over-year, representing a decline of 19%[25] Market Performance and Flows - Net flows were negative at ($1.7) billion, an improvement from ($2.6) billion in the previous quarter, with positive flows in retail separate accounts and ETFs[6] - Total inflows for the quarter were $5.810 billion, while outflows amounted to $(7.309) billion, resulting in net flows of $(1.499) billion[20] - Market performance for the total assets showed a decline of $(3.624) billion for the quarter, with a recovery of $14.322 billion projected for the next quarter[20] Strategic Initiatives and Future Outlook - The company is actively exploring market expansion opportunities and new product developments to enhance its service offerings[19] - Future outlook includes a focus on enhancing investment management services and expanding market presence through strategic initiatives[20] - The company anticipates continued growth in assets under management and net asset inflows, although specific projections were not provided[35] - Forward-looking statements indicate potential risks and uncertainties regarding future performance and market conditions[34] Risks and Uncertainties - The company faces substantial known and unknown risks and uncertainties that could materially affect operations and financial results[36] - Key risks include reduction in assets under management and inability to achieve expected benefits from strategic transactions[36] - Other significant risks involve withdrawal or termination of investment management agreements and challenges from competition[36]

Company Overview - Virtus Investment Partners (VRTS) is based in Hartford and operates in the Finance sector, with a year-to-date share price change of -7.49% [2] - The company currently pays a dividend of $1.9 per share, resulting in a dividend yield of 3.4%, which is higher than the Financial - Investment Management industry's yield of 2.8% and the S&P 500's yield of 1.48% [2] Dividend Performance - The current annualized dividend of Virtus Investment Partners is $7.60, reflecting a 10.9% increase from the previous year [2] - Over the past 5 years, the company has increased its dividend 5 times year-over-year, achieving an average annual increase of 30.73% [2] - The current payout ratio is 31%, indicating that the company paid out 31% of its trailing 12-month earnings per share as dividends [2] Earnings Growth Expectations - For the fiscal year 2024, the Zacks Consensus Estimate predicts earnings of $26.02 per share, which corresponds to a year-over-year earnings growth rate of 18.54% [3] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [4] - VRTS is positioned as a compelling investment opportunity due to its attractive dividend yield and a strong Zacks Rank of 2 (Buy) [4]

The market expects Virtus Investment Partners (VRTS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 25, 2024, might help the stock move higher if t ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividen ...

. . Vertiqal Studios Announces Amendment of Debentures and Entering into of Amended and Restated Debenture Indenture September 10, 2024 5:15 PM EDT | Source: Vertiqal Studios Toronto, Ontario--(Newsfile Corp. - September 10, 2024) - Vertiqal Studios Corp. (TSX: VRTS) (OTCQB: VERTF) (FSE: 9PY0) (the "Company" or "Vertiqal") - Vertiqal is pleased to announced that it has received the necessary debenture holder approval to amend certain terms of its debentures issued on November 3, 2022 and November 24, 2022 ( ...

. . ● Vertiqal Studios Reports Strong Q2 2024 Financial Performance with Higher Gross Profit Margins, Reduced Expenses and Improved EBITDA August 14, 2024 5:15 PM EDT | Source: Vertiqal Studios Toronto, Ontario--(Newsfile Corp. - August 14, 2024) - Vertiqal Studios Corp. (TSX: VRTS) (OTCQB: VERTF) (FSE: 9PY0) ("the Company") - Vertiqal Studios, a leading digital-channel network and videoproduction studio, is pleased to announce Q2 financial results, highlighting significantly higher gross profit margins, a ...