BlackRock(US:BLK)2024-05-07 16:07Financial Performance - BlackRock reported total revenue of $4.728 billion for the three months ended March 31, 2024, an increase of 11.5% from $4.243 billion in the same period of 2023[98]. - Operating income for the same period was $1.693 billion, reflecting a $255 million increase and an operating margin of 35.8%, up 190 basis points year-over-year[100]. - Diluted earnings per share increased to $10.48, a 37% rise from $7.64 in the prior year[100]. - Total revenue for Q1 2024 was $4,210 million, compared to $3,738 million in Q1 2023, representing a 12.7% year-over-year growth[104]. - Adjusted operating income for Q1 2024 was $1,775 million, up from $1,511 million in Q1 2023, reflecting a 17.5% increase[104]. - Net income attributable to BlackRock, Inc., as adjusted, was $1,473 million for Q1 2024, compared to $1,200 million in Q1 2023, marking a 22.7% increase[106]. - Diluted earnings per share, as adjusted, for Q1 2024 was $9.81, up from $7.93 in Q1 2023, indicating a 23.6% increase[106]. - Total expenses for the three months ended March 31, 2024, increased by $230 million, or 8%, compared to the same period in 2023, reaching $3,035 million[134]. Assets Under Management (AUM) - Assets under management (AUM) reached $10.5 trillion as of March 31, 2024, compared to $9.09 trillion a year earlier, representing a 15.5% increase[98]. - Long-term AUM increased by $76,414 million in Q1 2024, with net inflows of $57,190 million during the quarter[109]. - The retail segment AUM grew to $973,985 million in Q1 2024, up from $876,979 million in Q1 2023, a 11.0% increase[109]. - Institutional active AUM reached $1,961,376 million, up from $1,778,340 million in Q1 2023, representing a 10.3% increase[109]. - Total Assets Under Management (AUM) reached $10,472,500 million as of March 31, 2024, up from $10,008,995 million at December 31, 2023, representing a growth of 4.6%[110]. - Net inflows for the three months ended March 31, 2024, were $57,190 million, while net outflows for the twelve months ended March 31, 2024, totaled $235,568 million[110]. - Equity AUM increased to $5,717,852 million from $5,293,344 million year-over-year, reflecting a growth of 8.0%[110]. - Fixed income AUM remained stable at $2,805,745 million compared to $2,804,026 million at the end of 2023, with net inflows of $41,736 million for the quarter[110]. - Multi-asset AUM grew to $906,597 million from $870,804 million, marking an increase of 4.0%[110]. - Alternatives AUM totaled $296,524 million, up from $275,984 million, with net inflows of $11,160 million for the quarter[110]. - Cash management AUM decreased to $745,782 million from $764,837 million, indicating a decline of 2.0%[110]. Acquisitions and Investments - BlackRock announced the acquisition of Global Infrastructure Partners for $3 billion in cash and approximately 12 million shares, expected to close in Q3 2024[95]. - The company completed the acquisition of SpiderRock Advisors in May 2024, enhancing its capabilities in customized option overlay strategies[96]. - The Company’s investments, as adjusted, reached $8.408 billion as of March 31, 2024, compared to $7.874 billion on December 31, 2023[148]. Tax and Income - The effective tax rate for Q1 2024 was 15.6%, down from 25.0% in Q1 2023, contributing to improved net income[100]. - The company recognized a discrete tax benefit of $137 million related to the reorganization of its global intellectual property and technology platform[106]. - Income tax expense for the three months ended March 31, 2024, included a discrete tax benefit of $137 million related to a reorganization of the global intellectual property and technology platform[138]. Cash Flow and Liquidity - Cash and cash equivalents increased from $288 million on December 31, 2023, to $382 million on March 31, 2024[145]. - Net cash provided by operating activities, excluding the impact of CIPs, was $242 million for the three months ended March 31, 2024[154]. - Cash flows used in investing activities for the same period were $378 million, primarily due to $476 million in net investment purchases[154]. - Cash flows provided by financing activities amounted to $707 million, mainly from $3.0 billion in proceeds from long-term borrowings related to the GIP Transaction[154]. - Total liquidity resources increased by $544 million during the three months ended March 31, 2024, totaling $13,992 million[156]. Market and Economic Exposure - The Company's net exposure to equity market price risk was approximately $1.9 billion, with a hypothetical 10% adverse change estimated to decrease carrying value by $187 million[168]. - The Company was exposed to interest rate and credit spread risk from approximately $2.5 billion in investments in debt securities, with a hypothetical 100 basis point fluctuation estimated to impact carrying value by $43 million[168]. - The carrying value of total economic investment exposure in foreign currencies was approximately $1.1 billion, with a hypothetical 10% adverse change estimated to result in a $108 million decline[168].