T. Rowe Price(TROW) - 2024 Q4 - Annual Results

Assets Under Management (AUM) - T. Rowe Price Group reported assets under management (AUM) of $1.61 trillion as of December 31, 2024, with a decrease of $24.3 billion during Q4 2024[4] - The average AUM for 2024 was $1.56 trillion, representing a 14.7% increase from $1.36 trillion in 2023[2] - Assets under management (AUM) at December 31, 2024, reached $1,606.6 billion, reflecting a growth of 11.2% from $1,444.5 billion at the beginning of the period[23] - The firm managed $1.61 trillion in assets under management as of December 31, 2024, with approximately two-thirds being retirement-related[18] Financial Performance - Diluted earnings per common share (EPS) for Q4 2024 were $1.92, a 1.1% increase from $1.90 in Q4 2023, while the full year EPS was $9.15, up 17.9% from $7.76[2] - Total revenues for the year ended December 31, 2024, increased to $7,093.6 million, up 9.8% from $6,460.5 million in 2023[22] - Net income attributable to T. Rowe Price Group, Inc. for the year ended December 31, 2024, was $2,100.1 million, a 17.5% increase from $1,788.7 million in 2023[22] - For the year ended December 31, 2024, the net income attributable to T. Rowe Price Group, Inc. was $2,100.1 million, up from $2,139.5 million in 2023, a decrease of 1.8%[34] - The diluted earnings per share for the year ended December 31, 2024, was $9.15, down from $9.33 in 2023, a decrease of 1.9%[34] Client Flows and Outflows - The company experienced net client outflows of $19.3 billion in Q4 2024 and $43.2 billion for the full year 2024, reducing outflows by nearly half year over year[2] - The firm plans to continue expanding its ETF business and insurance channel, and is optimistic about achieving positive client flows in the upcoming year[2] Revenue Sources - Net revenues for Q4 2024 were $1.82 billion, an increase of 11.1% compared to $1.64 billion in Q4 2023[9] - Investment advisory fees for Q4 2024 totaled $1.67 billion, reflecting a 16.1% increase from $1.44 billion in Q4 2023[9] - Investment advisory fees for the year ended December 31, 2024, totaled $6,399.7 million, representing a 12.1% increase from $5,709.5 million in 2023[23] Operating Expenses - Total operating expenses for Q4 2024 were $1,256.1 million, a slight increase of 0.1% from Q4 2023 and 7.2% from Q3 2024, while adjusted operating expenses rose by 6.2% year-over-year[12] - Compensation, benefits, and related costs in Q4 2024 amounted to $705.4 million, reflecting an increase of 8.6% from Q4 2023, primarily due to higher bonus accruals and employee benefits[12] - The company reported a total of $4,760.3 million in operating expenses for the year ended December 31, 2024, compared to $4,498.8 million in 2023, an increase of 5.8%[34] Taxation - The effective income tax rate for the firm in 2024 was 24.3%, down from 26.3% in 2023, primarily due to lower valuation allowances recognized[14] - The firm estimates its effective tax rate for the full year 2025 will range from 23.0% to 27.0% on a U.S. GAAP basis[15] - The non-GAAP effective tax rate for the year was reported at 27.2%, with a quarterly rate of 28.5% for Q4 2023[36] Cash Flow and Capital Management - The company reported a net cash outflow of $39.5 million for the year, primarily due to net cash flows prior to manager-driven distributions[23] - The company reported net cash provided by operating activities of $1,685.6 million for the year, after adjustments for various items[26] - The company reported a net cash used in financing activities of $936.6 million for the year, indicating significant outflows[26] Strategic Focus and Future Outlook - The firm plans to continue focusing on expanding its multi-asset and alternatives investment strategies to drive future growth[22] - The company plans to file its Form 10-K Annual Report for 2024 with the U.S. Securities and Exchange Commission in mid-February 2025[16] - The firm emphasizes the importance of non-GAAP financial measures for evaluating core operating results and comparing with industry peers[29] - Management emphasized the importance of these non-GAAP measures for understanding the firm's core operating results and improving comparability across periods[36]