AllianceBernstein L.P.(AB) - 2024 Q4 - Annual Results

Financial Performance - GAAP diluted net income per unit for Q4 2024 was $0.94, a 32.4$0.71 in Q4 2023[25] - Adjusted diluted net income per unit for Q4 2024 was $1.05, up 36.4$0.77 in Q4 2023[25] - Total net revenues for Q4 2024 were $1.26 billion, a 15.3$1.09 billion in Q4 2023[19] - Total revenues for 2024 reached $4,559,652, a 7.0$4,262,864 in 2023[46] - Net income attributable to AB Unitholders for Q4 2024 was $299.8 million, a 31.9$227.3 million in Q4 2023[45] - Net income attributable to AB Unitholders increased by 53.4% to $1,173,247 from$764,610 in 2023[46] - Diluted net income per unit rose by 58.5% to $3.71, up from$2.34 in 2023[47] - The diluted net income per holding unit on a GAAP basis was $3.71 for the year, compared to$2.34 in the previous year, marking a significant increase of 58.8%[60] Assets Under Management - Average assets under management (AUM) for 2024 grew 13% to $768.5 billion from$680.3 billion in 2023[2] - Total assets under management as of December 31, 2024, were $792.2 billion, a 9.2$725.2 billion a year earlier[9] - Ending assets under management as of December 31, 2024, were $792.2 billion, an increase from$725.2 billion in 2023[55] Operating Income and Expenses - Full-year 2024 adjusted operating income grew 20% to $1.14 billion from$951 million in 2023[2] - Fourth quarter 2024 adjusted operating income was $354 million, a 40$254 million in Q4 2023, with an adjusted operating margin of 36.4%, up 720 basis points[32] - The adjusted operating margin for full year 2024 was 32.3%, an increase of 410 basis points from 28.2% in 2023[32] - Full year 2024 adjusted operating expenses totaled $2.4 billion, a decrease of 1$619 million, a slight increase from $617 million in Q4 2023, driven by higher employee compensation and benefits[30] - Total operating expenses for 2024 were$3,351,066, a slight increase of 0.4% from $3,337,653 in 2023[46] Cash Distribution - Cash distribution per unit for Q4 2024 was$1.05, a 36.4% increase from $0.77 in Q4 2023[25] - Distribution per unit increased by 21.2$3.26 from $2.69 in 2023[47] Inflows and Outflows - The retail channel experienced net inflows of$13.4 billion for the full year 2024, compared to $3.7 billion in the prior year[12] - Institutional channel net outflows for 2024 were$16.5 billion, compared to $11.8 billion in the prior year[11] - The company reported a total of$792.2 million in net flows, with U.S. clients contributing $581.0 million and non-U.S. clients contributing$211.2 million[58] - The company experienced a net outflow of $30.7 million in actively managed equity investments, while passively managed equity investments saw a net outflow of$6.6 million[58] Performance Fees - Performance fees surged by 87.0% to $270,964 compared to$144,911 in the previous year[46] - Performance fees rising by 172% in Q4 2024[45] Employee and Headcount - As of December 31, 2024, headcount decreased to 4,341 employees from 4,707 employees a year earlier, due to the deconsolidation of Bernstein Research Services[35] Joint Ventures and Acquisitions - The joint venture with Societe Generale was completed on April 1, 2024, focusing on equity research and cash equity trading[47] - The company plans to fully divest from both joint ventures, and as such, income or loss associated with these investments will be excluded from adjusted operating income[74] - Acquisition-related expenses, including professional fees and changes in fair value, are excluded from core operating results for financial comparisons[73] Financial Reporting Adjustments - The impact of non-GAAP adjustments on diluted net income was $52,531,000 for the twelve months ended December 31, 2024, highlighting the significance of these adjustments in financial reporting[60] - Adjusted operating income excludes interest on borrowings to align with industry peers[75] - Compensation expenses related to equity awards granted to executives are excluded from non-GAAP measures as they are non-cash and based on EQH's performance[72] - Fluctuations in the value of long-term incentive compensation investments are recorded within investment gains and losses on the income statement[70] - Losses from the termination of the defined benefit retirement plan are considered non-cash and short-term, thus excluded from core operating results[71]