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StepStone (STEP) - 2025 Q3 - Quarterly Results
STEPStepStone (STEP)2025-02-06 21:06

Financial Performance - StepStone Group reported net management and advisory fees of 190.84millionforQ3FY2025,a26190.84 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 287.16millioninQ3FY2025,comparedtoanetincomeof287.16 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 52.66million,a2552.66 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 354.821millioninthesameperiodof2023[16].−Netincome(loss)attributabletoStepStoneGroupInc.forthethreemonthsendedDecember31,2024,was354.821 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)millioninthesameperiodof2023[16].−Basicnetincome(loss)pershareofClassAcommonstockforthethreemonthsendedDecember31,2024,was(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)inthesameperiodof2023[16].−Thecompanyreportedanetincomelossbeforeincometaxof(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 100,881,000forthesameperiodlastyear[35].−FortheninemonthsendedDecember31,2024,theAdjustedNetIncome(ANI)increasedto100,881,000 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 101.677millioninthepreviousyear,representingagrowthof60.8101.677 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 698billionintotalcapitalasofDecember31,2024,including698 billion in total capital as of December 31, 2024, including 179 billion in assets under management[4]. - Fee-Earning Assets Under Management (AUM) reached 114.166billionasofDecember31,2024,markinga28114.166 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 7.256billionintheprioryear,anincreaseof2847.256 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 56.660billionyear−over−year[59].−PrivateequityAUMgrewby3056.660 billion year-over-year[59]. - Private equity AUM grew by 30% to 62.811 billion, while Infrastructure AUM increased by 18% to 23.411billionasofDecember31,2024[59].−Thecompanyreporteda123.411 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 697.864billion,a6697.864 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 52.07million,a5752.07 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 166.104millioninthesameperiodof2023[16].−Adjustedmanagementandadvisoryfees,net,fortheninemonthsendedDecember31,2024,were166.104 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 432.571millioninthesameperiodof2023[19].−TotalcarriedinterestallocationsforthethreemonthsendedDecember31,2024,were432.571 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)millioninthesameperiodof2023[16].−FRE(Fee−RelatedEarnings)forthethreemonthsendedDecember31,2023,was(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].−TheFREmarginfortheninemonthsendedDecember31,2024,was39138,893,000[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 28,866,000forthesameperiodin2023,showingasubstantialincrease[49].−GrossrealizedperformancefeesfortheninemonthsendedDecember31,2024,totaled28,866,000 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 55,132,000inthepreviousyear,reflectingstrongperformanceinfeegeneration[49].ExpensesandCosts−TotalexpensesforthethreemonthsendedDecember31,2024,were55,132,000 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 578.952millioninthesameperiodof2023[16].−Cash−basedcompensationforthethreemonthsendedDecember31,2024,was578.952 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 73.619millioninthesameperiodof2023,reflectingagrowthof15.573.619 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 670,000forthesameperiodin2023,indicatinghighercostsassociatedwithtransactions[38].−Totalnon−coreoperatingexpensesfortheninemonthsendedDecember31,2024,amountedto670,000 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 4,785,000inthepreviousyear,indicatingincreasedcostsassociatedwithnon−coreactivities[38].StrategicFocusandFutureOutlook−Thecompanyanticipatescontinuedgrowthinmanagementandadvisoryfees,withprojectionsindicatingariseinadjustedmanagementfeesto4,785,000 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].