StepStone (US:STEP)2025-02-06 21:06Financial Performance - StepStone Group reported net management and advisory fees of $190.84 million for Q3 FY2025, a 26% increase compared to the same quarter last year[8]. - Total revenues for the quarter reached $339.02 million, reflecting a 125% increase year-over-year[8]. - The company experienced a net loss of $287.16 million in Q3 FY2025, compared to a net income of $82.54 million in the same quarter last year[8]. - Adjusted net income for the quarter was $52.66 million, a 25% increase compared to the previous year[8]. - Total revenues for the three months ended December 31, 2024, were $339.023 million, a decrease of 14.6% compared to $354.821 million in the same period of 2023[16]. - Net income (loss) attributable to StepStone Group Inc. for the three months ended December 31, 2024, was $(192.015) million, compared to $(20.226) million in the same period of 2023[16]. - Basic net income (loss) per share of Class A common stock for the three months ended December 31, 2024, was $(2.61), compared to $(0.32) in the same period of 2023[16]. - The company reported a net income loss before income tax of $24,142,000 for the three months ended December 31, 2023, compared to a net income of $100,881,000 for the same period last year[35]. - For the nine months ended December 31, 2024, the Adjusted Net Income (ANI) increased to $163.469 million, up from $101.677 million in the previous year, representing a growth of 60.8%[53]. Assets Under Management (AUM) - Assets under management (AUM) increased to $179.2 billion, representing a 20% growth year-over-year[8]. - The company had approximately $698 billion in total capital as of December 31, 2024, including $179 billion in assets under management[4]. - Fee-Earning Assets Under Management (AUM) reached $114.166 billion as of December 31, 2024, marking a 28% increase compared to the previous year[57]. - Contributions to Fee-Earning AUM saw a significant rise, totaling $23.136 billion for the nine months ended December 31, 2024, compared to $7.256 billion in the prior year, an increase of 284%[57]. - The ending balance for Separately Managed Accounts increased by 23% to $69.974 billion, up from $56.660 billion year-over-year[59]. - Private equity AUM grew by 30% to $62.811 billion, while Infrastructure AUM increased by 18% to $23.411 billion as of December 31, 2024[59]. - The company reported a 1% increase in Advisory AUM, reaching $14.765 billion, indicating stable advisory revenue despite fluctuations in AUA[59]. - Total capital responsibility, which includes both AUM and Assets Under Advisement (AUA), was reported at $697.864 billion, a 6% increase year-over-year[59]. Fees and Earnings - Fee-related earnings (FRE) for the quarter were $74.12 million, with a FRE margin of 39%[8]. - Gross realized performance fees amounted to $52.07 million, a 57% increase compared to the previous quarter[8]. - Total performance fees for the three months ended December 31, 2024, were $148.183 million, compared to a loss of $166.104 million in the same period of 2023[16]. - Adjusted management and advisory fees, net, for the nine months ended December 31, 2024, were $555.827 million, an increase from $432.571 million in the same period of 2023[19]. - Total carried interest allocations for the three months ended December 31, 2024, were $117.607 million, compared to $(114.295) million in the same period of 2023[16]. - FRE (Fee-Related Earnings) for the three months ended December 31, 2023, was $50,664,000, with a nine-month total of $138,893,000[35]. - The FRE margin for the nine months ended December 31, 2024, was 39%, consistent with the margin reported for the same period in 2023, demonstrating stable profitability[42]. - Net realized performance fees for the nine months ended December 31, 2024, reached $62,939,000, compared to $28,866,000 for the same period in 2023, showing a substantial increase[49]. - Gross realized performance fees for the nine months ended December 31, 2024, totaled $118,031,000, up from $55,132,000 in the previous year, reflecting strong performance in fee generation[49]. Expenses and Costs - Total expenses for the three months ended December 31, 2024, were $698.105 million, an increase of 19.2% compared to $578.952 million in the same period of 2023[16]. - Cash-based compensation for the three months ended December 31, 2024, was $85.203 million, up from $73.619 million in the same period of 2023, reflecting a growth of 15.5%[16]. - The company incurred transaction costs of $3,985,000 for the three months ended March 31, 2024, compared to $670,000 for the same period in 2023, indicating higher costs associated with transactions[38]. - Total non-core operating expenses for the nine months ended December 31, 2024, amounted to $17,580,000, up from $4,785,000 in the previous year, indicating increased costs associated with non-core activities[38]. Strategic Focus and Future Outlook - The company anticipates continued growth in management and advisory fees, with projections indicating a rise in adjusted management fees to $555,827,000 for the nine months ending December 31, 2024[29]. - The company is focusing on expanding its market presence and enhancing its product offerings, as indicated by the increase in both management and incentive fees[29]. - The company plans to continue expanding its market presence and enhancing its product offerings to drive future growth[56]. - The company is actively monitoring key operating metrics to assess business performance and make informed strategic decisions[56].