Financial Performance - Total revenue for Q1 2022 was $148.3 million, an increase of $29.3 million or 24.6% from $119.0 million in Q1 2021[90] - Net income for Q1 2022 was $22.2 million, or $0.30 per share, compared to a net loss of $8.9 million, or $(0.13) per share, in Q1 2021[90] - Adjusted EBITDA for Q1 2022 was $44.5 million, compared to $34.1 million in Q1 2021, reflecting a margin of 30.0%[103] - Total revenue for the three months ended March 31, 2022, was $148,000, an increase from $134,000 in the same period of 2021, reflecting a growth rate of approximately 10.4%[116] - Net income for the three months ended March 31, 2022, was $22,219, compared to a net loss of $8,916 for the same period in 2021, resulting in a net income margin of 15.0%[124] - Adjusted EBITDA for the three months ended March 31, 2022, was $44,496, representing an adjusted EBITDA margin of 30.0%, up from 28.6% in the same period of 2021[124] - Net income improved by $31.1 million, or 349.2%, from a loss of $8.9 million in Q1 2021 to a profit of $22.2 million in Q1 2022[146] Revenue Breakdown - Asset-based revenue rose by $26.3 million, or 22.7%, from $115.8 million in Q1 2021 to $142.1 million in Q1 2022, driven by increased platform fees and advisory fees[148] - Subscription-based revenue increased by $3.3 million in Q1 2022 due to the acquisition of Voyant[149] - Spread-based revenue decreased by $0.6 million, or 25.0%, from $2.6 million in Q1 2021 to $2.0 million in Q1 2022, primarily due to lower interest income[150] Assets and Liabilities - Platform assets reached $90.8 billion as of March 31, 2022, up 15.1% from $78.9 billion as of March 31, 2021[91] - The regulatory assets under management (AUM) totaled $58.6 billion as of March 31, 2022, up from $50.1 billion as of March 31, 2021[105] - Total current assets increased to $148,949 as of March 31, 2022, from $134,173 as of December 31, 2021, representing an increase of 11.1%[14] - Total assets amounted to $1,402,755 as of March 31, 2022, compared to $1,386,962 as of December 31, 2021, indicating a growth of 1.1%[14] - Total liabilities decreased to $368,008 as of March 31, 2022, from $377,576 as of December 31, 2021, a reduction of 2.5%[14] Operating Expenses - Total operating expenses decreased by $17.6 million, or 13.0%, from $135.3 million in Q1 2021 to $117.6 million in Q1 2022[147] - Employee compensation decreased by $27.0 million, or 40.1%, from $67.3 million in Q1 2021 to $40.3 million in Q1 2022, mainly due to a reduction in share-based compensation[154] - General and operating expenses increased by $4.6 million, or 26.1%, from $17.5 million in Q1 2021 to $22.1 million in Q1 2022, driven by higher events and travel costs[155] Cash Flow and Financing - Cash flow from operating activities increased by $10.8 million from $14.7 million in Q1 2021 to $25.4 million in Q1 2022[168] - Cash and cash equivalents increased to $98,717 as of March 31, 2022, from $76,707 as of December 31, 2021, marking a growth of 28.7%[14] - Cash provided by financing activities increased by $5.9 million from $0.0 million in Q1 2021 to $5.9 million in Q1 2022, primarily due to $122.5 million in proceeds from the term loan[170] Advisers and Growth - Engaged advisers increased to 2,815 as of March 31, 2022, a rise of 7.8% from 2,611 as of March 31, 2021[91] - New producing advisers numbered 195 in Q1 2022, slightly up from 194 in Q1 2021[103] - The number of new producing advisers (NPAs) for the period was 20, indicating continued growth in the adviser base[112] Tax and Compliance - The provision for income taxes increased by $15.3 million, or 188.0%, from a benefit of $8.1 million in Q1 2021 to an expense of $7.2 million in Q1 2022[160] - The effective income tax rate for the Company was 24.4% for the three months ended March 31, 2022, down from 47.7% in the same period of 2021[78] Future Outlook - The company aims to selectively pursue acquisitions to enhance scale and capabilities, having added $9.4 billion in platform assets from acquisitions between 2014 and 2020[99][100] - The company expects cash and liquidity needs to be met by cash generated from ongoing operations and the 2022 Credit Facility over the next twelve months[162]

AssetMark Financial Holdings, Inc. (NYSE:AMK) Q1 2022 Results Conference Call April 28, 2022 5:00 PM ET Company Participants Taylor Hamilton - Head of Investor Relations Natalie Wolfsen - Chief Executive Officer Gary Zyla - Chief Financial Officer Operator Good afternoon, everyone, and welcome to AssetMark's First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. T ...

AssetMark Financial Holdings, Inc. (NYSE:AMK) Q4 2021 Earnings Conference Call February 15, 2022 5:00 PM ET Company Participants Taylor Hamilton - Head of Investor Relations Natalie Wolfsen - Chief Executive Officer, Gary Zyla - Chief Financial Officer Conference Call Participants Ryan Bailey - Goldman Sachs Gerry O'Hara - Jefferies Kenneth Worthington - JPMorgan Michael Young - Truist Securities Patrick O'Shaughnessy - Raymond James. Operator Good afternoon, everyone, and welcome to AssetMark's Fourth Qua ...

2021 Performance Highlights - AssetMark ended 2021 with $93.5 billion in platform assets[5] - The company achieved $9.9 billion in net flows[5], representing a 13.3% net flows as a percentage of beginning-of-period platform assets[25] - AssetMark added $19.0 billion in platform assets during 2021[5] - The company onboarded 811 new producing advisors and engaged 322 advisors[5] - AssetMark served 23,298 households[5] Q4 2021 Financial Results - Total revenue for Q4 2021 was $143.6 million, a 29.4% increase year-over-year[28] - Asset-based revenue in Q4 2021 reached $137.5 million, up 27.5% from Q4 2020[28] - Adjusted EBITDA for Q4 2021 was $38.3 million, a 19.7% increase year-over-year[44] - Adjusted net income for Q4 2021 was $24.7 million, an 11.3% increase year-over-year[44] - Adjusted EPS for Q4 2021 was $0.33, a 6.5% increase year-over-year[44] 2022 Outlook - AssetMark is targeting platform asset growth of 13.5-15.5% in 2022[45] - The company anticipates revenue less cost of revenue growth of 18-22% in 2022[45] - AssetMark expects operating expenses to increase by 16-20% in 2022[45] - The company is targeting adjusted EBITDA growth of 20%+ in 2022, with an adjusted EBITDA margin expansion of 100 bps[45]

Financial Data and Key Metrics Changes - Platform assets reached a record $86.8 billion, up 29% year-over-year, driven by record net flows of $2.8 billion [19] - Net revenue increased by 38% year-over-year to $101.5 million, marking the first quarter with net revenue exceeding $100 million [6][21] - Adjusted EBITDA rose by 53% year-over-year to $44.8 million, with an adjusted EBITDA margin of 32%, up 460 basis points year-over-year [29] - Adjusted net income increased by over 60% to $29.9 million, or $0.40 per share [30] Business Line Data and Key Metrics Changes - Asset-based net revenue grew by 36% to $95.5 million, with additional revenue from Voyant contributing $3.5 million [21][22] - The introduction of the Pooled Employer Plan (PEP) aims to enhance retirement offerings, accounting for approximately $1.6 billion in platform assets [13] - A suite of separately managed accounts (SMAs) was launched, generating over 1,500 proposals amounting to approximately $375 million since its introduction [15] Market Data and Key Metrics Changes - The company added 201 new producing advisers, bringing total engaged advisers to 2,729, an increase of 351 advisers year-over-year [20] - Year-to-date annualized net flows as a percentage of beginning of year assets stood at 12.5% [20] Company Strategy and Development Direction - The company focuses on five key components of growth strategy, including catering to varying adviser affiliations and delivering a holistic experience [8][10] - The acquisition of Voyant is aimed at enhancing financial wellness solutions and expanding capabilities for advisers [11][12] - The company is actively pursuing M&A opportunities to enhance its service offerings and expand its market presence [17][70] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the market outlook due to macroeconomic uncertainties but is optimistic about strong organic growth [20] - For 2022, the company expects organic growth of over 10% and net revenue growth in the high teens to low 20% range [32] - The company anticipates a modest impact from inflation in 2022 but remains focused on disciplined expense management [26][33] Other Important Information - The company ended the quarter with over $50 million in cash and $135 million available on its revolving line of credit, positioning it well for future M&A opportunities [30] - The company is investing in new product initiatives and enhancing its technology platform to better serve advisers [56] Q&A Session Summary Question: How would you characterize the deal pipeline right now? - The deal pipeline is good, but valuations are high, and there is competition for acquisition opportunities. The company is a disciplined buyer [37] Question: How is the company thinking about interest rate sensitivity? - The company assumes no interest rate increases in its 2022 outlook but expects to benefit from any future increases [40] Question: Can you walk us through the growth in the RIA market relative to IBD? - The RIA segment is growing faster than other segments, driven by demand for independent fee-based advice and regulatory changes [44] Question: What are the expected contributions from Voyant in 2022? - Voyant is expected to contribute about three to four percentage points to both revenue and EBITDA growth in 2022 [60] Question: What steps have been taken to reduce asset-based expenses? - The company has renegotiated contracts with providers to reduce asset-based expenses, which will positively impact future guidance [57]

Financial Performance - Total revenue for Q3 2021 was $139.7 million, an increase of $32.5 million or 30.4% from $107.1 million in Q3 2020[102] - Net income for Q3 2021 was $12.3 million, or $0.17 per share, compared to $8.6 million, or $0.13 per share, in Q3 2020[102] - Adjusted EBITDA for Q3 2021 was $44.8 million, compared to $29.3 million in Q3 2020[102] - Total revenue for the nine months ended September 30, 2021 was $387 million, up from $321 million in the same period of 2020[117] - Adjusted net income for the nine months ended September 30, 2021 was $78.6 million, compared to $51.0 million for the same period in 2020[117] - The total net income for the three months ended September 30, 2021, was $12,250, compared to $8,597 for the same period in 2020, showing an increase of 42.5%[152] - Net income for the nine months ended September 30, 2021, was $13.3 million, a significant increase from $2.1 million in the same period of 2020[153] Revenue Breakdown - Asset-based revenue for Q3 2021 was $134.2 million, up $30.3 million or 29.2% from $103.8 million in Q3 2020[102] - Subscription-based revenue rose by $3.2 million in Q3 2021, attributed to the acquisition of Voyant on July 1, 2021[170] - Spread-based revenue decreased by $1.4 million, or 53.0%, from $2.6 million in Q3 2020 to $1.2 million in Q3 2021, mainly due to lower interest rates[171] - Asset-based revenue increased by $70.5 million, or 23.2%, from $304.2 million in the nine months ended September 30, 2020 to $374.7 million in the nine months ended September 30, 2021[184] Asset Management - Platform assets reached $86.8 billion as of September 30, 2021, a 29.1% increase from $67.3 billion a year earlier[103] - Regulatory assets under management (AUM) totaled $55,361 million as of September 30, 2021, compared to $41,546 million in the prior year, indicating a growth of about 33%[119] - As of September 30, 2021, platform assets reached $86,826 million, up from $67,254 million as of September 30, 2020, reflecting a year-over-year growth of approximately 29%[119] - 96% of total revenue for the nine months ended September 30, 2021, was based on the market value of assets on the platform, indicating a strong reliance on asset performance[217] Adviser Engagement - Engaged advisers on the platform increased to 2,749, up 14.6% from 2,398 as of September 30, 2020[103] - New producing advisers numbered 201 in Q3 2021, compared to 171 in Q3 2020[117] - As of September 30, 2021, engaged advisers, defined as those with at least $5 million in platform assets, contributed significantly to the overall platform assets[124] Expenses and Costs - Total operating expenses increased by $11.9 million, or 11.3%, from $104.9 million in Q3 2020 to $116.8 million in Q3 2021[168] - Employee compensation increased by $1.3 million, or 2.9%, from $42.8 million in Q3 2020 to $44.1 million in Q3 2021, driven by higher salaries and integration costs[175] - General and operating expenses rose by $2.9 million, or 17.8%, from $15.9 million in Q3 2020 to $18.8 million in Q3 2021, due to increased costs in various operational areas[176] - Professional fees increased by $1.4 million, or 39.5%, from $3.6 million in Q3 2020 to $5.1 million in Q3 2021, driven by higher outsourcing and consulting expenses[177] - Depreciation and amortization expense increased by $2.0 million, or 22.8%, from $8.7 million in Q3 2020 to $10.6 million in Q3 2021, primarily due to new assets and the Voyant acquisition[178] Cash Flow and Liquidity - Cash flow from operating activities increased by $39.5 million to $93.9 million for the nine months ended September 30, 2021, compared to $54.4 million for the same period in 2020[209] - Cash used in investing activities rose by $111.7 million to $(153.2) million for the nine months ended September 30, 2021, primarily due to a $124.2 million net cash payment for the Voyant acquisition[210] - Cash flow from financing activities increased by $39.9 million to $40.1 million for the nine months ended September 30, 2021, primarily due to net drawdowns on the 2020 Revolving Credit Facility[211] - Liquidity as of September 30, 2021 included cash and cash equivalents of $50.4 million and restricted cash of $12.0 million[200] Tax and Compliance - Provision for income taxes increased by $14.3 million, or 503.7%, from a benefit of $(2.8) million in the nine months ended September 30, 2020 to a provision of $11.4 million in the nine months ended September 30, 2021[198] - As of September 30, 2021, the Total Leverage Ratio was compliant with the covenant limit of 3.5 to 1.0, and the interest coverage ratio was above the minimum requirement of 4.0 to 1.0[206] Market Sensitivity - A 1% decrease in the aggregate value of assets on the platform would have led to a 1% decline in total revenue and an 11% decline in pre-tax income, equating to a $2.6 million impact[217] - Client cash assets in the insured cash deposit program totaled $2.6 billion as of September 30, 2021, with a potential annual income impact of approximately $26 million from a 100 basis point change in short-term interest rates[218] - If LIBOR-based interest rates increased by 100 basis points, annual interest expense would rise by approximately $1.2 million based on amounts drawn under the 2020 Revolving Credit Facility[219]