losses/(gains) on 
          investments              (140)      320     (30)    (667)       103 
       Add back/(deduct): Tax 
        windfalls/(shortfalls) 
        upon vesting of 
          stock-based 
           compensation awards        25       40      699        6        18 
       Add back: Tax benefit 
        arising from expenses 
        incurred in 
          response to an 
           activist campaign          --    1,037      169       --        -- 
       Add back: Tax benefit 
        arising from 
        impairments                   --       --       --       82       657 
                                  ------   ------   ------   ------   ------- 
  Adjusted income tax expense    $ 9,049  $ 9,008  $ 6,731  $ 5,342  $  5,854 
                                  ------   ------   ------   ------   ------- 
  Adjusted effective income tax 
   rate                            23.9%    25.0%    24.9%    22.3%     24.5% 
                                  ======   ======   ======   ======   ======= 
 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should, " "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include statements about:

   -- anticipated trends, conditions and investor sentiment in the global 
      markets and ETPs; 
 
   -- anticipated levels of inflows into and outflows out of our ETPs; 
 
   -- our ability to deliver favorable rates of return to investors; 
 
   -- competition in our business; 
 
   -- whether we will experience future growth; 
 
   -- our ability to develop new products and services and their potential for 
      success; 
 
   -- our ability to maintain current vendors or find new vendors to provide 
      services to us at favorable costs; 
 
   -- our ability to successfully implement our strategy relating to digital 
      assets and blockchain-enabled financial services, including WisdomTree 
      Prime$(R)$ and WisdomTree Connect$(TM)$, and achieve its objectives; 
 
   -- our ability to successfully operate and expand our business in non-U.S. 
      markets; 
 
   -- the effect of laws and regulations that apply to our business; and 
 
   -- actions of activist stockholders. 

Our business is subject to many risks and uncertainties, including without limitation:

   -- declining prices of securities, gold and other precious metals and other 
      commodities and changes in interest rates and general market conditions 
      can adversely affect our business by reducing the market value of the 
      assets we manage or causing WisdomTree ETP investors to sell their fund 
      shares and trigger redemptions; 
 
   -- fluctuations in the amount and mix of our AUM, whether caused by 
      disruptions in the financial markets or otherwise, including but not 
      limited to events such as a pandemic or war, geopolitical conflicts, 
      political events, acts of terrorism and other matters beyond our control, 
      may negatively impact revenues and operating margins, and may impede our 
      ability to refinance our debt upon maturity or increase the cost of 
      borrowing upon a refinancing; 
 
   -- competitive pressures could reduce revenues and profit margins; 
 
   -- we derive a substantial portion of our revenues from a limited number of 
      products, and, as a result, our operating results are particularly 
      exposed to investor sentiment toward investing in the products' 
      strategies and our ability to maintain the AUM of these products, as well 
      as the performance of these products and market-specific and political 
      and economic risk; 
 
   -- a significant portion of our AUM is held in products with exposure to 
      U.S. and international developed markets, and we therefore have exposure 
      to domestic and foreign market conditions and are subject to currency 
      exchange rate risks; 
 
   -- withdrawals or broad changes in investments in our ETPs by investors with 
      significant positions may negatively impact revenues and operating 
      margins; 
 
   -- we face increased operational, regulatory, financial and other risks as a 
      result of conducting our business internationally, and as we expand our 
      digital assets product offerings and services beyond our existing ETP 
      business; 
 
   -- many of our ETPs have a limited track record, and poor investment 
      performance could cause our revenues to decline; 
 
   -- we depend on third parties to provide many critical services to operate 
      our business and our ETPs. The failure of key vendors to adequately 
      provide such services could materially affect our operating business and 
      harm WisdomTree ETP investors; and 
 
   -- actions of activist stockholders against us, which have been costly and 
      may be disruptive and cause uncertainty about the strategic direction of 
      our business. 

Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and in subsequent reports filed with or furnished to the SEC.

The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.

Category: Business Update

View source version on businesswire.com: https://www.businesswire.com/news/home/20241025121692/en/

 
    CONTACT:    Investor Relations 

Jeremy Campbell

+1.917.267.3859

jeremy.campbell@wisdomtree.com

Media Relations

Natasha Ramsammy

+1.917.267.3798

nramsammy@wisdomtree.com / wisdomtree@fullyvested.com

(END) Dow Jones Newswires

October 25, 2024 07:00 ET (11:00 GMT)