Lazard(US:LAZ)2025-01-30 11:32Financial Performance - Lazard reported fourth-quarter 2024 net revenue of $817 million, a 1% increase from $806 million in Q4 2023, and full-year net revenue of $3,052 million, up 21% from $2,515 million in 2023[1]. - Adjusted net revenue for the fourth quarter was $812 million, a 7% increase from $761 million in Q4 2023, and for the full year, it was $2,890 million, an 18% increase from $2,440 million in 2023[2]. - Total revenue for Q4 2024 was $839,018,000, representing a 4% increase from Q3 2024 and a 2% increase from Q4 2023[26]. - Total revenue for the year ended December 31, 2024, was $3,139,904,000, a 21% increase from the previous year[29]. - Net income attributable to Lazard, Inc. for Q4 2024 was $86,310,000, a decrease of 20% compared to Q3 2024, but an increase of 36% compared to Q4 2023[26]. - Net income attributable to Lazard, Inc. for the year ended December 31, 2024, was $279,912,000, compared to a net loss of $75,479,000 in 2023[29]. Revenue Breakdown - Financial Advisory revenue increased by 28% in 2024, reaching $1,756 million, while Asset Management revenue grew by 3% to $1,187 million[2]. - Net revenue for Financial Advisory increased by 28% to $1,731,049, while Asset Management revenue grew by 3% to $1,099,874, resulting in an adjusted net revenue of $2,889,554, up 18% from the previous year[38]. Adjusted Metrics - The adjusted net income for Q4 2024 was $85 million, a 31% increase from $65 million in Q4 2023, and for the full year, it was $244 million, compared to $75 million in 2023[1]. - Adjusted net revenue for Q4 2024 was $812,433,000, a 26% increase year-over-year[34]. - Adjusted operating income for Q4 2024 was $125,868,000, reflecting a 55% increase compared to Q3 2024[34]. - Adjusted operating income surged by 148% to $410,945, with an adjusted operating margin improving to 14.2% from 6.8%[38]. - Adjusted net income reached $244,110, with adjusted diluted net income per share increasing to $2.34 from $0.77[38]. Assets and Management - Assets Under Management (AUM) as of December 31, 2024, were $226 billion, down 8% from $247 billion a year earlier[1]. - Average AUM for 2024 was $243 billion, a 4% increase from $233 billion in 2023[8]. - Total Assets Under Management (AUM) decreased by 8.6% to $226,321 million, with net outflows of $10,068 million during the quarter[46]. - The company experienced a decline in total equity AUM by 8.7% year-over-year, with emerging markets equity down by 5.2%[46]. Shareholder Returns - Lazard returned $303 million to shareholders in 2024, including $179 million in dividends and $60 million in share repurchases[13]. Compensation and Expenses - The adjusted compensation ratio for Q4 2024 was 65.6%, down from 67.8% in Q4 2023, with a target of 60% for 2025[10]. - Non-compensation expenses for the full year of 2024 were $670 million on a U.S. GAAP basis, 3% lower than 2023[11]. - The adjusted compensation ratio improved to 65.9% from 69.8%, while adjusted non-compensation ratio decreased to 19.9% from 23.4%[38]. - Compensation and benefits expense on a U.S. GAAP basis for the year ended December 31, 2024, was $2,003,212,000, an increase from $1,946,010,000 in the previous year[53]. Taxation - The effective tax rate on an adjusted basis for the full year 2024 was 24.4%, compared to 14.5% in 2023[12]. - The adjusted effective tax rate rose to 24.4% from 14.5%[38]. - The company reported an adjusted provision for income taxes of $78,792,000 for the year ended December 31, 2024, compared to $12,761,000 in the previous year[59].