Evercore(EVR)2025-02-05 17:59Financial Data and Key Metrics Changes - In 2024, Evercore Inc. achieved firm-wide adjusted net revenues of just over 975 million, operating income was 3.30 [29] - Adjusted net revenues for Q4 2024 increased by 24% year-over-year, while full-year adjusted net revenues increased by 23% compared to 2023 [30] - Adjusted operating income for Q4 2024 rose by 76% year-over-year, and adjusted EPS increased by 69% [31][32] - The adjusted operating margin for Q4 was 22.2%, up 650 basis points from the previous year [32] Business Line Data and Key Metrics Changes - Adjusted advisory fees for Q4 2024 were 2.4 billion, up 24% compared to 2023 [33] - Underwriting fees for Q4 2024 were 157 million, up 41% [34] - Asset management and administration fees for Q4 and full-year were 85 million, respectively, both increasing by 16% year-over-year [35] Market Data and Key Metrics Changes - The European advisory business saw momentum build in Q4 2024, finishing the year with a strong backlog for 2025, although it still lags behind the U.S. market [16] - The underwriting business rebounded in 2024, particularly among follow-ons, with over 50% of underwriting revenue coming from sectors outside healthcare [21] Company Strategy and Development Direction - The company is focused on diversifying its revenue base, with over 40% of total revenues coming from non-M&A sources [10] - Evercore Inc. aims to continue improving expense margins and enhancing shareholder value over time [25] - The firm is committed to recruiting high-quality talent, having added nearly 60 new senior bankers over the past three years [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing improved market trends, increased CEO confidence, and a strong macroeconomic backdrop [11] - Despite some geopolitical uncertainties, the deal-making environment is expected to gradually improve throughout the year [12] - The company anticipates continued strong performance in its private capital advisory and private funds group, which achieved record years [19][94] Other Important Information - The adjusted compensation ratio improved by 190 basis points in 2024, reflecting the company's focus on expense management [28] - The company returned $591 million to shareholders through dividends and share repurchases in 2024 [42] Q&A Session Summary Question: Expectations for comp ratio improvement in 2025 - Management indicated striving for meaningful improvement in the comp ratio for 2025, although they do not provide specific guidance [49] Question: Recruiting expectations for the coming year - The company is actively working on recruiting and retaining talent, with a robust pipeline of candidates [55][57] Question: M&A activity and larger deals post-election - Management noted robust activity at the board level and a strengthening backlog, with optimism for large deals [66] Question: Acceleration in M&A activity - Management observed that while January had lower announcement volumes, overall activity levels remain robust and are expected to build throughout the year [74] Question: Outlook for restructuring business - The restructuring business had a strong year, and management expects activity levels to remain elevated due to increased liability management needs [110]