LPL Financial(US:LPLA)2025-01-30 21:14Financial Performance - Net Income for Q4 2024 was $271 million, translating to diluted EPS of $3.59, up 26% year-over-year[5] - Adjusted EPS for the full year 2024 increased 5% year-over-year to $16.51, with gross profit rising 12% to $4.50 billion[2] - Total revenue for Q4 2024 reached $3,512,351,000, a 13% increase from Q3 2024 and a 33% increase from Q4 2023[17] - Total revenue for the year 2024 was $12,385,107,000, a 23% increase from $10,052,848,000 in 2023[20] - The company reported a diluted EPS of $14.03 for 2024, compared to $13.69 in 2023, showing a year-over-year increase of 2.5%[65] - Net income for Q4 2024 was $270.7 million, up 25% from $217.6 million in Q4 2023, while adjusted net income increased to $320.3 million, representing a 19.5% year-over-year growth[63] - EBITDA for 2024 reached $2.11 billion, compared to $1.99 billion in 2023, marking an increase of 6.3%[61] - Adjusted EBITDA for Q4 2024 was $584.8 million, up 22% from $479.7 million in Q4 2023[60] Assets and Liabilities - Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion, with advisory assets up 30% to $957 billion[2] - Total assets as of December 31, 2024, were $13,317,404,000, an increase from $11,941,875,000 in Q3 2024[22] - Total liabilities increased to $10,386,802,000 as of December 31, 2024, compared to $9,170,124,000 in Q3 2024[22] - The total advisory and brokerage assets under custody reached $2.67 trillion, demonstrating robust growth in asset management capabilities[68] Client Engagement and Growth - Total organic net new assets for the full year 2024 were $141 billion, representing a 10% growth rate, up from 9% in 2023[2] - Recruited assets for the year reached a record $149 billion, up approximately 86% from the previous year[2] - The advisor count increased to 28,888, up 5,202 sequentially and 6,228 year-over-year[2] - Total client cash balances rose to $55.1 billion in Q4 2024, an increase of 20% from Q3 2024 and 14% from Q4 2023[31] - Total client deposits into advisory or brokerage accounts increased significantly, reflecting strong client engagement and retention strategies[69] Revenue Breakdown - Advisory revenue increased to $1,595,834,000, up 16% from Q3 2024 and 47% from Q4 2023[17] - Total commission revenue rose to $965,463,000, reflecting a 20% increase from Q3 2024 and a 41% increase from Q4 2023[17] - The company reported a 32% increase in advisory revenue for the year 2024, totaling $5,461,858,000 compared to $4,135,681,000 in 2023[20] - Advisory fees and commissions increased to $2,561.3 million in Q4 2024, a 17% increase from Q3 2024 and a 45% increase from Q4 2023[25] Expenses and Costs - The company’s total expenses for the year 2024 were $10,992,215,000, reflecting a 28% increase from $8,608,073,000 in 2023[20] - Core G&A for 2024 was $1,515 million, with a 2025 outlook range of $1,560 million to $1,600 million excluding Prudential and Atria[9] - Acquisition costs for 2024 totaled $105.9 million, a significant increase from $48.1 million in 2023, reflecting a 120% rise[59] - Total advisory and commission expense for Q4 2024 was $2,250.4 million, representing a 15.5% increase from Q3 2024 and a 40% increase from Q4 2023[54] Regulatory and Other Charges - Regulatory charges for 2024 included an $18 million charge related to a settlement with the SEC, in addition to a $40 million charge in 2023[61] - The company recorded $135.2 million in amortization of other intangibles for 2024, compared to $107.2 million in 2023, indicating a 26.1% increase[65] - The departure of the former CEO resulted in a net other income of $26.4 million in Q4 2024, after accounting for share-based compensation expenses[64] Acquisitions - The company onboarded $63 billion of assets from Prudential, with $40 billion transitioning in Q4 2024[9] - Atria acquisition was closed, with conversion expected to complete in mid-2025[9]