Core Insights - Vertiqal Studios has launched Vertiqal Labs, a new creator network aimed at empowering digital talent and enhancing monetization opportunities for creators [1][5] - The initiative is designed to support creators in developing content and expanding their reach across major social media platforms, leveraging Vertiqal Studios' extensive audience [2][4] Group 1: Company Overview - Vertiqal Studios is North America's largest owner of gaming and lifestyle social media channels, specializing in viral video creation and distribution [6][7] - The company manages over 130 channels across platforms like TikTok, Instagram, and Snapchat, producing more than 100 pieces of content daily for an audience exceeding 52 million followers [7] Group 2: Vertiqal Labs Features - Vertiqal Labs will provide creators with tools and resources to develop original content, allowing them to establish themselves as recognizable voices in digital entertainment [3] - The program aims to create a sustainable career model for creators by enabling them to produce content consistently, thus generating reliable revenue streams [3] Group 3: Advertising Opportunities - Vertiqal Labs will also benefit advertisers by offering access to both creator-generated content and high-production branded content from Vertiqal Studios' internal teams [4] - This dual approach allows brands to engage authentically with Gen Z and Millennial consumers, fostering meaningful connections [4]

Core Insights - Vertiqal Studios has engaged Quartermast Advisors as its buy-side M&A advisor to identify and execute strategic media acquisitions aimed at accelerating growth and expanding market presence [1][2][5] - The company aims to leverage acquisitions to enhance content capabilities, expand audience reach, and strengthen its data-driven monetization model [2][4] - Recent acquisitions include Offbeat Studios in December 2023 and four high-performing social channels from Viral Nation in December 2024, indicating a commitment to growth through targeted acquisitions [3][5] Company Overview - Vertiqal Studios is one of North America's largest owners of gaming and lifestyle social media channels, specializing in the creation and distribution of viral videos for brands [7][8] - The company manages over 130 channels across platforms like TikTok, Instagram, and Snapchat, producing over 100 pieces of content daily for an audience exceeding 52 million followers [8] - Vertiqal Studios partners with major brands such as RBC, Samsung, and Coca-Cola to develop strategic solutions and innovative advertising [8] Advisory Firm Overview - Quartermast Advisors is a boutique M&A advisory firm specializing in media, technology, and the creator economy, providing strategic guidance for executing transactions [9] - The firm brings extensive experience in mergers and acquisitions, which will assist Vertiqal Studios in navigating the dynamic media industry [4][5]

分组1 - Virtus Investment Partners reported quarterly earnings of $7.50 per share, exceeding the Zacks Consensus Estimate of $7.48 per share, and up from $6.11 per share a year ago, representing an earnings surprise of 0.27% [1] - The company posted revenues of $212.01 million for the quarter ended December 2024, which missed the Zacks Consensus Estimate by 0.29%, compared to year-ago revenues of $193.38 million [2] - Over the last four quarters, Virtus has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] 分组2 - The stock has underperformed the market, losing about 4.3% since the beginning of the year, while the S&P 500 gained 3.2% [3] - The current consensus EPS estimate for the coming quarter is $5.85 on revenues of $201.74 million, and for the current fiscal year, it is $28.27 on revenues of $827.14 million [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for the sector [8]

FOURTH QUARTER EARNINGS PRESENTATION January 31, 2025 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer IMPORTANT DISCLOSURES AGENDA 3 ■ Overview of Quarter ■ Results ■ Q & A Session OVERVIEW OF QUARTER This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking st ...

Financial Performance - Revenues for Q4 2024 were $233.5 million, a 9% increase from $214.6 million in Q4 2023[2] - Operating income increased by 30% to $50.7 million compared to $39.0 million in the same quarter last year[2] - Net income attributable to Virtus Investment Partners was $33.3 million, up 8% from $30.8 million in Q4 2023[2] - Earnings per share (diluted) were $4.66, an 11% increase from $4.21 in Q4 2023[2] - Total revenues rose by 9% year-over-year to $233,494,000 for the three months ended December 31, 2024[22] - Operating income increased by 30% year-over-year to $50,721,000 for the three months ended December 31, 2024[22] - Net income attributable to Virtus Investment Partners, Inc. was $33,294,000, an 8% increase compared to the same period last year[22] - Cash dividends declared per common share increased by 18% to $2.25 for the three months ended December 31, 2024[22] - Total operating expenses (as adjusted) for the three months ended December 31, 2024, were $137.560 million, an increase from $129.524 million in the same period of 2023, reflecting a 6.3% rise[28] - Income tax expense (as adjusted) for the three months ended December 31, 2024, was $19.972 million, compared to $17.337 million in the same period of 2023, representing a 9.5% increase[29] Assets Under Management (AUM) - Total assets under management (AUM) were $175.0 billion, a 2% increase from $172.3 billion year-over-year[4] - Average total assets under management increased by 12% to $182.1 billion from $162.7 billion in the prior year[4] - Assets under management totaled $175,001,000,000 as of December 31, 2024, reflecting a decrease from the previous quarter[23] - Open-End Funds reported $56,073,000,000 in assets under management as of December 31, 2024, a slight decrease from the previous quarter[23] - Institutional accounts saw a decrease in assets under management to $59,167,000,000 as of December 31, 2024[23] - The average assets under management for total products increased to $182,088,000,000 for the three months ended December 31, 2024[23] - Total assets under management (AUM) increased from $162,539 million on 12/31/2023 to $172,259 million on 12/31/2024, reflecting a growth of approximately 5.3%[26] Net Flows - Net flows for the quarter were negative at ($4.8) billion, compared to ($3.8) billion in Q4 2023, primarily due to a $3.3 billion lower-fee partial redemption[6] - Net flows for Open-End Funds showed a decline of $1,116 million for the three months ended 12/31/2024, compared to a decline of $1,965 million for the same period in 2023[26] - Institutional Accounts experienced net outflows of $3,802 million for the three months ended 12/31/2024, compared to net outflows of $2,227 million for the same period in 2023[26] - The company reported total inflows of $25,857 million for the twelve months ended 12/31/2024, compared to $26,757 million for the previous year[26] Operating Metrics - Operating margin improved to 21.7%, up from 18.2% in the same quarter last year[2] - Operating margin (as adjusted) for the three months ended December 31, 2024, was 35.1%, compared to 33.0% in the same period of 2023, showing an improvement of 2.1 percentage points[28] - The effective tax rate (as adjusted) for the three months ended December 31, 2024, was 26.6%, compared to 27.2% in the same period of 2023, showing a slight improvement[29] Expenses - The company reported a 43% increase in income tax expense to $19,047,000 for the three months ended December 31, 2024[22] - Total other operating expenses amounted to $7,330 million for the three months ended December 31, 2024, up from $5,689 million in the same period of 2023, representing an increase of 28.8%[38] - Employment expense fair value adjustments increased to $1,141 million for the three months ended December 31, 2024, compared to $472 million for the same period in 2023, reflecting a significant rise of 141%[38] - Acquisition and integration expenses for the three months ended December 31, 2024, totaled $2.553 million, down from $3.050 million in the same period of 2023, reflecting a decrease of 16.3%[36] Forward-Looking Statements and Risks - Forward-looking statements indicate expectations regarding assets under management and net asset inflows, but actual results may differ materially due to various risks and uncertainties[44] - The company faces risks including potential reductions in assets under management and challenges in attracting and retaining key personnel, which could adversely affect financial results[45] - The company does not plan to update or revise forward-looking statements based on actual results or changes in circumstances after the date of the release[47] - Investors are encouraged to consider all factors that may impact the company's operations and financial results, as discussed in periodic reports filed with the SEC[46] Non-GAAP Measures - Non-GAAP financial measures are utilized by management to provide additional insight into the company's financial performance, although they have limitations and should not be viewed in isolation[27] - The adjusted revenues exclude the impact of operating activities of consolidated investment products, focusing on fee revenues from investment management and related services[40] - Adjusted operating expenses exclude amortization or impairment of intangible assets and certain other expenses not reflective of ongoing earnings generation[41] - The adjusted operating margin is calculated as adjusted operating income divided by adjusted revenues, providing a measure of efficiency[42]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Virtus Investment Partners (VRTS) due to higher revenues, with a focus on how actual results will compare to estimates [1][2] Earnings Expectations - The upcoming earnings report is expected to show earnings of $7.59 per share, reflecting a +24.2% change year-over-year, and revenues of $213.63 million, which is a 10.5% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 3.25% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -3.19%, suggesting that analysts have lowered their expectations for the company's earnings [10][11] Historical Performance - In the last reported quarter, Virtus exceeded the expected earnings of $6.81 per share by delivering $6.92, resulting in a surprise of +1.62%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13] Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a positive outcome for the upcoming earnings report [11][16]

Core Viewpoint - Virtus Investment Partners (VRTS) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Virtus is projected at $26.49 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 20.7% [9]. - Over the past three months, the Zacks Consensus Estimate for Virtus has risen by 6.3%, indicating a positive shift in analysts' expectations [9]. Zacks Rating System - The Zacks rating system is based solely on a company's earnings picture, tracking changes in earnings estimates from sell-side analysts [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [8]. Market Implications - The upgrade to Zacks Rank 2 places Virtus in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term due to favorable earnings estimate revisions [11]. - Rising earnings estimates and the corresponding rating upgrade indicate an improvement in Virtus's underlying business, which is expected to positively influence its stock price [6].

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]