BlackRock Reports Full Year 2024 Diluted EPS of $42.01, or $43.61 as Adjusted; Fourth Quarter 2024 Diluted EPS of $10.63, or $11.93 as Adjusted

BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2024.

$11.6 trillion in AUM following a record $641 billion of full year net inflows, including $281 billion in the fourth quarter

14% increase in full year revenue driven by the positive impact of markets on average AUM, organic base fee growth, and fees on AUM acquired in the GIP Transaction, as well as higher performance fees and technology service revenue

21% increase in full year operating income (23% as adjusted)

15% increase in full year diluted EPS also reflects lower nonoperating income and a higher effective tax rate in the current year

$4.7 billion returned to shareholders in 2024, including $1.6 billion of share repurchases

Previously announced agreement to acquire HPS Investment Partners to create an integrated private credit franchise with approximately $220 billion in pro-forma client assets

Laurence D. Fink, Chairman and CEO:

“Clients entrusted BlackRock with a record $641 billion of net inflows in 2024, including $281 billion in the fourth quarter for two consecutive record flows quarters. 2024 was also a milestone year for strategic acquisitions grounded in client service, technology and scale. Our closing of GIP and planned acquisitions of HPS and Preqin are expected to significantly scale and enhance our private markets investment and data capabilities.

“For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy. Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth. Our operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points.

“Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we’ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead.

“BlackRock’s world-class talent is central to our significant growth and sustained performance. We have a longstanding, deliberate strategy of systematically elevating our strongest leaders around the world. We’re excited to again have a number of them taking on expanded roles this year. BlackRock’s leadership team alongside top talent from GIP, HPS and Preqin position us to serve our clients with excellence and seize the opportunities ahead of us.

“In the 25 years since our IPO, BlackRock has delivered a 21% compounded annual total return for our shareholders, compared to 8% in the S&P 500. BlackRock enters 2025 with more growth and upside potential than ever. This is just the beginning.”

FINANCIAL RESULTS

 

 

NET FLOW HIGHLIGHTS(1)

 

(in millions,

Q4

 

 

Q4

 

 

Full Year

 

 

 

 

 

Q4

 

 

Full Year

 

except per share data)

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(in billions)

2024

 

 

2024

 

AUM

$

11,551,251

 

 

$

10,008,995

 

 

$

11,551,251

 

 

$

10,008,995

 

 

Long-term net flows:

$

201

 

 

$

489

 

% change

 

15

%

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

Average AUM

$

11,555,434

 

 

$

9,384,929

 

 

$

10,804,007

 

 

$

9,220,700

 

 

By region:

 

 

 

 

 

% change

 

23

%

 

 

 

 

 

17

%

 

 

 

 

 

Americas

$

116

 

 

$

317

 

Total net flows

$

281,416

 

 

$

95,647

 

 

$

641,351

 

 

$

288,695

 

 

 

EMEA

 

74

 

 

 

149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APAC

 

11

 

 

 

23

 

GAAP basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

5,677

 

 

$

4,631

 

 

$

20,407

 

 

$

17,859

 

 

By client type:

 

 

 

 

 

% change

 

23

%

 

 

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

2,075

 

 

$

1,585

 

 

$

7,574

 

 

$

6,275

 

 

 

Retail:

$

5

 

 

$

24

 

% change

 

31

%

 

 

 

 

 

21

%

 

 

 

 

 

 

US

 

3

 

 

 

19

 

Operating margin

 

36.6

%

 

 

34.2

%

 

 

37.1

%

 

 

35.1

%

 

 

 

International

 

2

 

 

 

5

 

Net income(1)

$

1,670

 

 

$

1,375

 

 

$

6,369

 

 

$

5,502

 

 

 

 

 

 

 

 

 

 

% change

 

21

%

 

 

 

 

 

16

%

 

 

 

 

 

ETFs:

$

143

 

 

$

390

 

Diluted EPS

$

10.63

 

 

$

9.15

 

 

$

42.01

 

 

$

36.51

 

 

 

 

Core equity

 

75

 

 

 

175

 

% change

 

16

%

 

 

 

 

 

15

%

 

 

 

 

 

 

Strategic

 

18

 

 

 

113

 

Weighted-average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cryptocurrency

 

18

 

 

 

41

 

diluted shares

 

157.0

 

 

 

150.2

 

 

 

151.6

 

 

 

150.7

 

 

 

 

Other precision

 

32

 

 

 

61

 

% change

 

5

%

 

 

 

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional:

$

53

 

 

$

74

 

As Adjusted(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

25

 

 

 

64

 

Operating income

$

2,326

 

 

$

1,716

 

 

$

8,110

 

 

$

6,593

 

 

 

 

Index

 

28

 

 

 

9

 

% change

 

36

%

 

 

 

 

 

23

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

45.5

%

 

 

41.6

%

 

 

44.5

%

 

 

41.7

%

 

 

 

 

 

 

 

 

 

Net income(1)

$

1,874

 

 

$

1,451

 

 

$

6,612

 

 

$

5,692

 

 

Cash management net flows

$

81

 

 

$

153

 

% change

 

29

%

 

 

 

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

11.93

 

 

$

9.66

 

 

$

43.61

 

 

$

37.77

 

 

 

 

 

 

 

 

 

 

% change

 

23

%

 

 

 

 

 

15

%

 

 

 

 

Total net flows

$

281

 

 

$

641

 

_________________________

 

 

 

 

 

 

 

 

_________________________

 

(1) Net income represents net income attributable to BlackRock, Inc. (2) See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

 

 

(1) Totals may not add due to rounding.

 

BUSINESS RESULTS

Q4 2024

Q4 2024

Base fees(1)

Base fees(1)

December 31, 2024

and securities

Q4 2024

December 31, 2024

and securities

AUM

lending revenue

(in millions), (unaudited)

Net flows

AUM

lending revenue

% of Total

% of Total

RESULTS BY CLIENT TYPE

 

 

 

 

 

 

 

 

 

 

Retail

$

4,650

 

$

1,015,827

 

$

1,105

 

 

9

%

 

25

%

ETFs

 

142,641

 

 

4,230,375

 

 

1,815

 

 

37

%

 

41

%

Institutional:

 

 

 

 

 

 

 

 

 

 

Active

 

25,126

 

 

2,136,749

 

 

962

 

 

18

%

 

22

%

Index

 

28,251

 

 

3,247,637

 

 

242

 

 

28

%

 

5

%

Total institutional

 

53,377

 

 

5,384,386

 

 

1,204

 

 

46

%

 

27

%

Long-term

 

200,668

 

 

10,630,588

 

 

4,124

 

 

92

%

 

93

%

Cash management

 

80,748

 

 

920,663

 

 

293

 

 

8

%

 

7

%

Total

$

281,416

 

$

11,551,251

 

$

4,417

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY INVESTMENT STYLE

 

 

 

 

 

 

 

 

 

 

Active

$

22,830

 

$

2,870,656

 

$

1,991

 

 

25

%

 

45

%

Index and ETFs

 

177,838

 

 

7,759,932

 

 

2,133

 

 

67

%

 

48

%

Long-term

 

200,668

 

 

10,630,588

 

 

4,124

 

 

92

%

 

93

%

Cash management

 

80,748

 

 

920,663

 

 

293

 

 

8

%

 

7

%

Total

$

281,416

 

$

11,551,251

 

$

4,417

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY PRODUCT TYPE

 

 

 

 

 

 

 

 

 

 

Equity

$

126,566

 

$

6,310,191

 

$

2,142

 

 

55

%

 

48

%

Fixed income

 

23,784

 

 

2,905,669

 

 

950

 

 

25

%

 

22

%

Multi-asset

 

24,307

 

 

992,921

 

 

326

 

 

8

%

 

7

%

Alternatives:

 

 

 

 

 

 

 

 

 

 

Private markets

 

4,730

 

 

211,974

 

 

480

 

 

2

%

 

11

%

Liquid alternatives

 

1,165

 

 

76,390

 

 

146

 

 

1

%

 

3

%

Currency and commodities(2)

 

20,116

 

 

133,443

 

 

80

 

 

1

%

 

2

%

Total alternatives

 

26,011

 

 

421,807

 

 

706

 

 

4

%

 

16

%

Long-term

 

200,668

 

 

10,630,588

 

 

4,124

 

 

92

%

 

93

%

Cash management

 

80,748

 

 

920,663

 

 

293

 

 

8

%

 

7

%

Total

$

281,416

 

$

11,551,251

 

$

4,417

 

 

100

%

 

100

%

_________________________

(1)

Base fees include investment advisory and administration fees.

(2)

Amounts include cryptocurrency and commodity ETFs and exchange-traded products ("ETPs").

INVESTMENT PERFORMANCE AT DECEMBER 31, 2024(1)

One-year period

Three-year period

Five-year period

Fixed income:

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

Taxable

69%

79%

82%

Tax-exempt

69%

42%

45%

Index AUM within or above applicable tolerance

97%

99%

98%

Equity:

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

Fundamental

47%

44%

64%

Systematic

93%

89%

93%

Index AUM within or above applicable tolerance

94%

99%

100%

_________________________

(1)

Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 14 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Wednesday, January 15, 2025 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, [phone], or from outside the United States, [phone], shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 6231688). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Wednesday, January 15, 2025. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com.

ABOUT BLACKROCK

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except per share data), (unaudited)

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2024

 

 

2023

 

 

Change

 

 

 

2024

 

 

Change

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees

$

4,256

 

 

$

3,448

 

 

$

808

 

 

 

$

3,881

 

 

$

375

 

 

Securities lending revenue

 

161

 

 

 

157

 

 

 

4

 

 

 

 

149

 

 

 

12

 

 

Total investment advisory, administration fees and securities lending revenue

 

4,417

 

 

 

3,605

 

 

 

812

 

 

 

 

4,030

 

 

 

387

 

 

Investment advisory performance fees

 

451

 

 

 

311

 

 

 

140

 

 

 

 

388

 

 

 

63

 

 

Technology services revenue

 

428

 

 

 

379

 

 

 

49

 

 

 

 

403

 

 

 

25

 

 

Distribution fees

 

322

 

 

 

303

 

 

 

19

 

 

 

 

323

 

 

 

(1

)

 

Advisory and other revenue

 

59

 

 

 

33

 

 

 

26

 

 

 

 

53

 

 

 

6

 

 

Total revenue

 

5,677

 

 

 

4,631

 

 

 

1,046

 

 

 

 

5,197

 

 

 

480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

1,885

 

 

 

1,503

 

 

 

382

 

 

 

 

1,578

 

 

 

307

 

 

Sales, asset and account expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution and servicing costs

 

565

 

 

 

502

 

 

 

63

 

 

 

 

549

 

 

 

16

 

 

Direct fund expense

 

389

 

 

 

318

 

 

 

71

 

 

 

 

379

 

 

 

10

 

 

Sub-advisory and other

 

42

 

 

 

35

 

 

 

7

 

 

 

 

34

 

 

 

8

 

 

Total sales, asset and account expense

 

996

 

 

 

855

 

 

 

141

 

 

 

 

962

 

 

 

34

 

 

General and administration expense

 

596

 

 

 

589

 

 

 

7

 

 

 

 

562

 

 

 

34

 

 

Restructuring charge

 

-

 

 

 

61

 

 

 

(61

)

 

 

 

-

 

 

 

-

 

 

Amortization and impairment of intangible assets

 

125

 

 

 

38

 

 

 

87

 

 

 

 

89

 

 

 

36

 

 

Total expense

 

3,602

 

 

 

3,046

 

 

 

556

 

 

 

 

3,191

 

 

 

411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

2,075

 

 

 

1,585

 

 

 

490

 

 

 

 

2,006

 

 

 

69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

(18

)

 

 

265

 

 

 

(283

)

 

 

 

177

 

 

 

(195

)

 

Interest and dividend income

 

212

 

 

 

159

 

 

 

53

 

 

 

 

236

 

 

 

(24

)

 

Interest expense

 

(166

)

 

 

(82

)

 

 

(84

)

 

 

 

(154

)

 

 

(12

)

 

Total nonoperating income (expense)

 

28

 

 

 

342

 

 

 

(314

)

 

 

 

259

 

 

 

(231

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

2,103

 

 

 

1,927

 

 

 

176

 

 

 

 

2,265

 

 

 

(162

)

 

Income tax expense

 

442

 

 

 

438

 

 

 

4

 

 

 

 

574

 

 

 

(132

)

 

Net income

 

1,661

 

 

 

1,489

 

 

 

172

 

 

 

 

1,691

 

 

 

(30

)

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

(9

)

 

 

114

 

 

 

(123

)

 

 

 

60

 

 

 

(69

)

 

Net income attributable to BlackRock, Inc.

$

1,670

 

 

$

1,375

 

 

$

295

 

 

 

$

1,631

 

 

$

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

155.0

 

 

 

148.7

 

 

 

6.3

 

 

 

 

148.0

 

 

 

6.9

 

 

Diluted

 

157.0

 

 

 

150.2

 

 

 

6.8

 

 

 

 

149.6

 

 

 

7.4

 

 

Earnings per share attributable to BlackRock, Inc. common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

10.78

 

 

$

9.25

 

 

$

1.53

 

 

 

$

11.02

 

 

$

(0.24

)

 

Diluted

$

10.63

 

 

$

9.15

 

 

$

1.48

 

 

 

$

10.90

 

 

$

(0.27

)

 

Cash dividends declared and paid per share

$

5.10

 

 

$

5.00

 

 

$

0.10

 

 

 

$

5.10

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

11,551,251

 

 

$

10,008,995

 

 

$

1,542,256

 

 

 

$

11,475,362

 

 

$

75,889

 

 

Shares outstanding (end of period)

 

154.9

 

 

 

148.5

 

 

 

6.4

 

 

 

 

148.0

 

 

 

7.0

 

 

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

36.6

%

 

 

34.2

%

 

 

240

 

bps

 

 

38.6

%

 

 

(200

)

bps

Effective tax rate

 

20.9

%

 

 

24.2

%

 

 

(330

)

bps

 

 

26.0

%

 

 

(510

)

bps

As adjusted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (1)

$

2,326

 

 

$

1,716

 

 

$

610

 

 

 

$

2,128

 

 

$

198

 

 

Operating margin (1)

 

45.5

%

 

 

41.6

%

 

 

390

 

bps

 

 

45.8

%

 

 

(30

)

bps

Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)

$

39

 

 

$

199

 

 

$

(160

)

 

 

$

190

 

 

$

(151

)

 

Net income attributable to BlackRock, Inc. (3)

$

1,874

 

 

$

1,451

 

 

$

423

 

 

 

$

1,715

 

 

$

159

 

 

Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)

$

11.93

 

 

$

9.66

 

 

$

2.27

 

 

 

$

11.46

 

 

$

0.47

 

 

Effective tax rate

 

20.8

%

 

 

24.2

%

 

 

(340

)

bps

 

 

26.0

%

 

 

(520

)

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See pages 10 through 12 for the reconciliation to accounting principles generally accepted in the United States ("GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except per share data), (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

Change

 

 

Revenue

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and securities lending revenue:

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees

$

15,485

 

 

$

13,724

 

 

$

1,761

 

 

Securities lending revenue

 

615

 

 

 

675

 

 

 

(60

)

 

Total investment advisory, administration fees and securities lending revenue

 

16,100

 

 

 

14,399

 

 

 

1,701

 

 

Investment advisory performance fees

 

1,207

 

 

 

554

 

 

 

653

 

 

Technology services revenue

 

1,603

 

 

 

1,485

 

 

 

118

 

 

Distribution fees

 

1,273

 

 

 

1,262

 

 

 

11

 

 

Advisory and other revenue

 

224

 

 

 

159

 

 

 

65

 

 

Total revenue

 

20,407

 

 

 

17,859

 

 

 

2,548

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

6,546

 

 

 

5,779

 

 

 

767

 

 

Sales, asset and account expense:

 

 

 

 

 

 

 

 

 

Distribution and servicing costs

 

2,171

 

 

 

2,051

 

 

 

120

 

 

Direct fund expense

 

1,464

 

 

 

1,331

 

 

 

133

 

 

Sub-advisory and other

 

140

 

 

 

116

 

 

 

24

 

 

Total sales, asset and account expense

 

3,775

 

 

 

3,498

 

 

 

277

 

 

General and administration expense

 

2,221

 

 

 

2,095

 

 

 

126

 

 

Restructuring charge

 

-

 

 

 

61

 

 

 

(61

)

 

Amortization and impairment of intangible assets

 

291

 

 

 

151

 

 

 

140

 

 

Total expense

 

12,833

 

 

 

11,584

 

 

 

1,249

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

7,574

 

 

 

6,275

 

 

 

1,299

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

492

 

 

 

699

 

 

 

(207

)

 

Interest and dividend income

 

767

 

 

 

473

 

 

 

294

 

 

Interest expense

 

(538

)

 

 

(292

)

 

 

(246

)

 

Total nonoperating income (expense)

 

721

 

 

 

880

 

 

 

(159

)

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

8,295

 

 

 

7,155

 

 

 

1,140

 

 

Income tax expense

 

1,783

 

 

 

1,479

 

 

 

304

 

 

Net income

 

6,512

 

 

 

5,676

 

 

 

836

 

 

Less:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

143

 

 

 

174

 

 

 

(31

)

 

Net income attributable to BlackRock, Inc.

$

6,369

 

 

$

5,502

 

 

$

867

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

150.0

 

 

 

149.3

 

 

 

0.7

 

 

Diluted

 

151.6

 

 

 

150.7

 

 

 

0.9

 

 

Earnings per share attributable to BlackRock, Inc. common stockholders

 

 

 

 

 

 

 

 

 

Basic

$

42.45

 

 

$

36.85

 

 

$

5.60

 

 

Diluted

$

42.01

 

 

$

36.51

 

 

$

5.50

 

 

Cash dividends declared and paid per share

$

20.40

 

 

$

20.00

 

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

11,551,251

 

 

$

10,008,995

 

 

$

1,542,256

 

 

Shares outstanding (end of period)

 

154.9

 

 

 

148.5

 

 

 

6.4

 

 

GAAP:

 

 

 

 

 

 

 

 

 

Operating margin

 

37.1

%

 

 

35.1

%

 

 

200

 

bps

Effective tax rate

 

21.9

%

 

 

21.2

%

 

 

70

 

bps

As adjusted:

 

 

 

 

 

 

 

 

 

Operating income (1)

$

8,110

 

 

$

6,593

 

 

$

1,517

 

 

Operating margin (1)

 

44.5

%

 

 

41.7

%

 

 

280

 

bps

Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)

$

533

 

 

$

648

 

 

$

(115

)

 

Net income attributable to BlackRock, Inc. (3)

$

6,612

 

 

$

5,692

 

 

$

920

 

 

Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)

$

43.61

 

 

$

37.77

 

 

$

5.84

 

 

Effective tax rate

 

23.5

%

 

 

21.4

%

 

 

210

 

bps

 

 

 

 

 

 

 

 

 

 

See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2024

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2024

 

 

Average AUM(3)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

521,270

 

 

$

(127

)

 

$

-

 

 

$

(7,209

)

 

$

(8,816

)

 

$

505,118

 

 

$

514,867

 

Fixed income

 

324,245

 

 

 

4,155

 

 

 

-

 

 

 

(4,823

)

 

 

(4,936

)

 

 

318,641

 

 

 

321,799

 

Multi-asset

 

154,078

 

 

 

(424

)

 

 

-

 

 

 

(1,909

)

 

 

(767

)

 

 

150,978

 

 

 

152,157

 

Alternatives

 

41,608

 

 

 

1,046

 

 

 

-

 

 

 

(1,009

)

 

 

(555

)

 

 

41,090

 

 

 

41,243

 

Retail subtotal

 

1,041,201

 

 

 

4,650

 

 

 

-

 

 

 

(14,950

)

 

 

(15,074

)

 

 

1,015,827

 

 

 

1,030,066

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

3,061,840

 

 

 

110,601

 

 

 

-

 

 

 

(43,614

)

 

 

(22,429

)

 

 

3,106,398

 

 

 

3,090,667

 

Fixed income

 

1,019,176

 

 

 

11,834

 

 

 

-

 

 

 

(34,956

)

 

 

(10,402

)

 

 

985,652

 

 

 

1,005,156

 

Multi-asset

 

10,036

 

 

 

1,070

 

 

 

-

 

 

 

(153

)

 

 

(219

)

 

 

10,734

 

 

 

10,281

 

Alternatives

 

97,283

 

 

 

19,136

 

 

 

-

 

 

 

11,332

 

 

 

(160

)

 

 

127,591

 

 

 

115,012

 

ETFs subtotal

 

4,188,335

 

 

 

142,641

 

 

 

-

 

 

 

(67,391

)

 

 

(33,210

)

 

 

4,230,375

 

 

 

4,221,116

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

225,361

 

 

 

(2,050

)

 

 

-

 

 

 

2,432

 

 

 

(6,895

)

 

 

218,848

 

 

 

222,045

 

Fixed income

 

873,385

 

 

 

(1,509

)

 

 

-

 

 

 

(18,258

)

 

 

(13,290

)

 

 

840,328

 

 

 

851,910

 

Multi-asset

 

833,975

 

 

 

23,844

 

 

 

-

 

 

 

(8,141

)

 

 

(21,639

)

 

 

828,039

 

 

 

835,579

 

Alternatives

 

178,223

 

 

 

4,841

 

 

 

69,875

 

 

 

448

 

 

 

(3,853

)

 

 

249,534

 

 

 

230,800

 

Active subtotal

 

2,110,944

 

 

 

25,126

 

 

 

69,875

 

 

 

(23,519

)

 

 

(45,677

)

 

 

2,136,749

 

 

 

2,140,334

 

Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,472,528

 

 

 

18,142

 

 

 

-

 

 

 

46,933

 

 

 

(57,776

)

 

 

2,479,827

 

 

 

2,493,289

 

Fixed income

 

806,888

 

 

 

9,304

 

 

 

-

 

 

 

(14,389

)

 

 

(40,755

)

 

 

761,048

 

 

 

780,330

 

Multi-asset

 

3,426

 

 

 

(183

)

 

 

-

 

 

 

(1

)

 

 

(72

)

 

 

3,170

 

 

 

3,325

 

Alternatives

 

2,653

 

 

 

988

 

 

 

-

 

 

 

19

 

 

 

(68

)

 

 

3,592

 

 

 

3,149

 

Index subtotal

 

3,285,495

 

 

 

28,251

 

 

 

-

 

 

 

32,562

 

 

 

(98,671

)

 

 

3,247,637

 

 

 

3,280,093

 

Institutional subtotal

 

5,396,439

 

 

 

53,377

 

 

 

69,875

 

 

 

9,043

 

 

 

(144,348

)

 

 

5,384,386

 

 

 

5,420,427

 

Long-term

 

10,625,975

 

 

 

200,668

 

 

 

69,875

 

 

 

(73,298

)

 

 

(192,632

)

 

 

10,630,588

 

 

 

10,671,609

 

Cash management

 

849,387

 

 

 

80,748

 

 

 

-

 

 

 

2,521

 

 

 

(11,993

)

 

 

920,663

 

 

 

883,825

 

Total

$

11,475,362

 

 

$

281,416

 

 

$

69,875

 

 

$

(70,777

)

 

$

(204,625

)

 

$

11,551,251

 

 

$

11,555,434

 

Current Quarter Component Changes by Investment Style and Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2024

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2024

 

 

Average AUM(3)

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

492,193

 

 

$

(8,057

)

 

$

-

 

 

$

(6,198

)

 

$

(10,775

)

 

$

467,163

 

 

$

480,255

 

Fixed income

 

1,171,739

 

 

 

1,580

 

 

 

-

 

 

 

(22,623

)

 

 

(16,822

)

 

 

1,133,874

 

 

 

1,148,283

 

Multi-asset

 

988,035

 

 

 

23,420

 

 

 

-

 

 

 

(10,050

)

 

 

(22,404

)

 

 

979,001

 

 

 

987,720

 

Alternatives

 

219,824

 

 

 

5,887

 

 

 

69,875

 

 

 

(560

)

 

 

(4,408

)

 

 

290,618

 

 

 

272,039

 

Active subtotal

 

2,871,791

 

 

 

22,830

 

 

 

69,875

 

 

 

(39,431

)

 

 

(54,409

)

 

 

2,870,656

 

 

 

2,888,297

 

Index and ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

3,061,840

 

 

 

110,601

 

 

 

-

 

 

 

(43,614

)

 

 

(22,429

)

 

 

3,106,398

 

 

 

3,090,667

 

Fixed income

 

1,019,176

 

 

 

11,834

 

 

 

-

 

 

 

(34,956

)

 

 

(10,402

)

 

 

985,652

 

 

 

1,005,156

 

Multi-asset

 

10,036

 

 

 

1,070

 

 

 

-

 

 

 

(153

)

 

 

(219

)

 

 

10,734

 

 

 

10,281

 

Alternatives

 

97,283

 

 

 

19,136

 

 

 

-

 

 

 

11,332

 

 

 

(160

)

 

 

127,591

 

 

 

115,012

 

ETFs subtotal

 

4,188,335

 

 

 

142,641

 

 

 

-

 

 

 

(67,391

)

 

 

(33,210

)

 

 

4,230,375

 

 

 

4,221,116

 

Non-ETF index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,726,966

 

 

 

24,022

 

 

 

-

 

 

 

48,354

 

 

 

(62,712

)

 

 

2,736,630

 

 

 

2,749,946

 

Fixed income

 

832,779

 

 

 

10,370

 

 

 

-

 

 

 

(14,847

)

 

 

(42,159

)

 

 

786,143

 

 

 

805,756

 

Multi-asset

 

3,444

 

 

 

(183

)

 

 

-

 

 

 

(1

)

 

 

(74

)

 

 

3,186

 

 

 

3,341

 

Alternatives

 

2,660

 

 

 

988

 

 

 

-

 

 

 

18

 

 

 

(68

)

 

 

3,598

 

 

 

3,153

 

Non-ETF index subtotal

 

3,565,849

 

 

 

35,197

 

 

 

-

 

 

 

33,524

 

 

 

(105,013

)

 

 

3,529,557

 

 

 

3,562,196

 

Index and ETFs subtotal

 

7,754,184

 

 

 

177,838

 

 

 

-

 

 

 

(33,867

)

 

 

(138,223

)

 

 

7,759,932

 

 

 

7,783,312

 

Long-term

$

10,625,975

 

 

$

200,668

 

 

$

69,875

 

 

$

(73,298

)

 

$

(192,632

)

 

$

10,630,588

 

 

$

10,671,609

 

Current Quarter Component Changes by Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2024

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2024

 

 

Average AUM(3)

 

Equity

$

6,280,999

 

 

$

126,566

 

 

$

-

 

 

$

(1,458

)

 

$

(95,916

)

 

$

6,310,191

 

 

$

6,320,868

 

Fixed income

 

3,023,694

 

 

 

23,784

 

 

 

-

 

 

 

(72,426

)

 

 

(69,383

)

 

 

2,905,669

 

 

 

2,959,195

 

Multi-asset

 

1,001,515

 

 

 

24,307

 

 

 

-

 

 

 

(10,204

)

 

 

(22,697

)

 

 

992,921

 

 

 

1,001,342

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private markets

 

141,409

 

 

 

4,730

 

 

 

69,875

 

 

 

(746

)

 

 

(3,294

)

 

 

211,974

 

 

 

193,493

 

Liquid alternatives

 

75,990

 

 

 

1,165

 

 

 

-

 

 

 

240

 

 

 

(1,005

)

 

 

76,390

 

 

 

76,211

 

Currency and commodities(4)

 

102,368

 

 

 

20,116

 

 

 

-

 

 

 

11,296

 

 

 

(337

)

 

 

133,443

 

 

 

120,500

 

Alternatives subtotal

 

319,767

 

 

 

26,011

 

 

 

69,875

 

 

 

10,790

 

 

 

(4,636

)

 

 

421,807

 

 

 

390,204

 

Long-term

$

10,625,975

 

 

$

200,668

 

 

$

69,875

 

 

$

(73,298

)

 

$

(192,632

)

 

$

10,630,588

 

 

$

10,671,609

 

_________________________

(1)

Amounts include AUM attributable to the acquisition of Global Infrastructure Management, LLC ("GIP") in October 2024 (the "GIP Transaction").

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

(4)

Amounts include cryptocurrency and commodity ETFs and ETPs.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2024

 

 

Average AUM(3)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

435,734

 

 

$

15,285

 

 

$

4,074

 

 

$

54,257

 

 

$

(4,232

)

 

$

505,118

 

 

$

485,161

 

Fixed income

 

312,799

 

 

 

11,671

 

 

 

-

 

 

 

1,483

 

 

 

(7,312

)

 

 

318,641

 

 

 

316,520

 

Multi-asset

 

139,537

 

 

 

(2,328

)

 

 

-

 

 

 

14,420

 

 

 

(651

)

 

 

150,978

 

 

 

147,169

 

Alternatives

 

41,627

 

 

 

(261

)

 

 

-

 

 

 

69

 

 

 

(345

)

 

 

41,090

 

 

 

41,087

 

Retail subtotal

 

929,697

 

 

 

24,367

 

 

 

4,074

 

 

 

70,229

 

 

 

(12,540

)

 

 

1,015,827

 

 

 

989,937

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,532,631

 

 

 

236,357

 

 

 

-

 

 

 

359,322

 

 

 

(21,912

)

 

 

3,106,398

 

 

 

2,845,456

 

Fixed income

 

898,403

 

 

 

112,341

 

 

 

-

 

 

 

(16,291

)

 

 

(8,801

)

 

 

985,652

 

 

 

948,250

 

Multi-asset

 

9,140

 

 

 

1,025

 

 

 

-

 

 

 

841

 

 

 

(272

)

 

 

10,734

 

 

 

9,451

 

Alternatives

 

59,125

 

 

 

40,710

 

 

 

-

 

 

 

27,919

 

 

 

(163

)

 

 

127,591

 

 

 

89,331

 

ETFs subtotal

 

3,499,299

 

 

 

390,433

 

 

 

-

 

 

 

371,791

 

 

 

(31,148

)

 

 

4,230,375

 

 

 

3,892,488

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

186,688

 

 

 

5,380

 

 

 

-

 

 

 

30,876

 

 

 

(4,096

)

 

 

218,848

 

 

 

207,929

 

Fixed income

 

836,823

 

 

 

(2,843

)

 

 

-

 

 

 

16,885

 

 

 

(10,537

)

 

 

840,328

 

 

 

841,830

 

Multi-asset

 

717,182

 

 

 

54,887

 

 

 

-

 

 

 

72,798

 

 

 

(16,828

)

 

 

828,039

 

 

 

774,210

 

Alternatives

 

171,980

 

 

 

7,023

 

 

 

69,875

 

 

 

3,618

 

 

 

(2,962

)

 

 

249,534

 

 

 

191,190

 

Active subtotal

 

1,912,673

 

 

 

64,447

 

 

 

69,875

 

 

 

124,177

 

 

 

(34,423

)

 

 

2,136,749

 

 

 

2,015,159

 

Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,138,291

 

 

 

(31,454

)

 

 

-

 

 

 

420,860

 

 

 

(47,870

)

 

 

2,479,827

 

 

 

2,333,824

 

Fixed income

 

756,001

 

 

 

42,500

 

 

 

-

 

 

 

(5,068

)

 

 

(32,385

)

 

 

761,048

 

 

 

759,871

 

Multi-asset

 

4,945

 

 

 

(1,906

)

 

 

-

 

 

 

204

 

 

 

(73

)

 

 

3,170

 

 

 

3,693

 

Alternatives

 

3,252

 

 

 

234

 

 

 

-

 

 

 

165

 

 

 

(59

)

 

 

3,592

 

 

 

2,912

 

Index subtotal

 

2,902,489

 

 

 

9,374

 

 

 

-

 

 

 

416,161

 

 

 

(80,387

)

 

 

3,247,637

 

 

 

3,100,300

 

Institutional subtotal

 

4,815,162

 

 

 

73,821

 

 

 

69,875

 

 

 

540,338

 

 

 

(114,810

)

 

 

5,384,386

 

 

 

5,115,459

 

Long-term

 

9,244,158

 

 

 

488,621

 

 

 

73,949

 

 

 

982,358

 

 

 

(158,498

)

 

 

10,630,588

 

 

 

9,997,884

 

Cash management

 

764,837

 

 

 

152,730

 

 

 

-

 

 

 

10,606

 

 

 

(7,510

)

 

 

920,663

 

 

 

806,123

 

Total

$

10,008,995

 

 

$

641,351

 

 

$

73,949

 

 

$

992,964

 

 

$

(166,008

)

 

$

11,551,251

 

 

$

10,804,007

 

Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2024

 

 

Average AUM(3)

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

427,448

 

 

$

(6,333

)

 

$

4,074

 

 

$

48,479

 

 

$

(6,505

)

 

$

467,163

 

 

$

461,583

 

Fixed income

 

1,123,422

 

 

 

9,184

 

 

 

-

 

 

 

18,516

 

 

 

(17,248

)

 

 

1,133,874

 

 

 

1,133,152

 

Multi-asset

 

856,705

 

 

 

52,553

 

 

 

-

 

 

 

87,221

 

 

 

(17,478

)

 

 

979,001

 

 

 

921,364

 

Alternatives

 

213,603

 

 

 

6,760

 

 

 

69,875

 

 

 

3,687

 

 

 

(3,307

)

 

 

290,618

 

 

 

232,274

 

Active subtotal

 

2,621,178

 

 

 

62,164

 

 

 

73,949

 

 

 

157,903

 

 

 

(44,538

)

 

 

2,870,656

 

 

 

2,748,373

 

Index and ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,532,631

 

 

 

236,357

 

 

 

-

 

 

 

359,322

 

 

 

(21,912

)

 

 

3,106,398

 

 

 

2,845,456

 

Fixed income

 

898,403

 

 

 

112,341

 

 

 

-

 

 

 

(16,291

)

 

 

(8,801

)

 

 

985,652

 

 

 

948,250

 

Multi-asset

 

9,140

 

 

 

1,025

 

 

 

-

 

 

 

841

 

 

 

(272

)

 

 

10,734

 

 

 

9,451

 

Alternatives

 

59,125

 

 

 

40,710

 

 

 

-

 

 

 

27,919

 

 

 

(163

)

 

 

127,591

 

 

 

89,331

 

ETFs subtotal

 

3,499,299

 

 

 

390,433

 

 

 

-

 

 

 

371,791

 

 

 

(31,148

)

 

 

4,230,375

 

 

 

3,892,488

 

Non-ETF index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,333,265

 

 

 

(4,456

)

 

 

-

 

 

 

457,514

 

 

 

(49,693

)

 

 

2,736,630

 

 

 

2,565,331

 

Fixed income

 

782,201

 

 

 

42,144

 

 

 

-

 

 

 

(5,216

)

 

 

(32,986

)

 

 

786,143

 

 

 

785,069

 

Multi-asset

 

4,959

 

 

 

(1,900

)

 

 

-

 

 

 

201

 

 

 

(74

)

 

 

3,186

 

 

 

3,708

 

Alternatives

 

3,256

 

 

 

236

 

 

 

-

 

 

 

165

 

 

 

(59

)

 

 

3,598

 

 

 

2,915

 

Non-ETF index subtotal

 

3,123,681

 

 

 

36,024

 

 

 

-

 

 

 

452,664

 

 

 

(82,812

)

 

 

3,529,557

 

 

 

3,357,023

 

Index and ETFs subtotal

 

6,622,980

 

 

 

426,457

 

 

 

-

 

 

 

824,455

 

 

 

(113,960

)

 

 

7,759,932

 

 

 

7,249,511

 

Long-term

$

9,244,158

 

 

$

488,621

 

 

$

73,949

 

 

$

982,358

 

 

$

(158,498

)

 

$

10,630,588

 

 

$

9,997,884

 

Year-over-Year Component Changes by Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2024

 

 

Average AUM(3)

 

Equity

$

5,293,344

 

 

$

225,568

 

 

$

4,074

 

 

$

865,315

 

 

$

(78,110

)

 

$

6,310,191

 

 

$

5,872,370

 

Fixed income

 

2,804,026

 

 

 

163,669

 

 

 

-

 

 

 

(2,991

)

 

 

(59,035

)

 

 

2,905,669

 

 

 

2,866,471

 

Multi-asset

 

870,804

 

 

 

51,678

 

 

 

-

 

 

 

88,263

 

 

 

(17,824

)

 

 

992,921

 

 

 

934,523

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private markets

 

136,909

 

 

 

9,457

 

 

 

69,875

 

 

 

(1,803

)

 

 

(2,464

)

 

 

211,974

 

 

 

154,597

 

Liquid alternatives

 

74,233

 

 

 

(2,609

)

 

 

-

 

 

 

5,482

 

 

 

(716

)

 

 

76,390

 

 

 

75,402

 

Currency and commodities(4)

 

64,842

 

 

 

40,858

 

 

 

-

 

 

 

28,092

 

 

 

(349

)

 

 

133,443

 

 

 

94,521

 

Alternatives subtotal

 

275,984

 

 

 

47,706

 

 

 

69,875

 

 

 

31,771

 

 

 

(3,529

)

 

 

421,807

 

 

 

324,520

 

Long-term

$

9,244,158

 

 

$

488,621

 

 

$

73,949

 

 

$

982,358

 

 

$

(158,498

)

 

$

10,630,588

 

 

$

9,997,884

 

_________________________

(1)

Amounts include AUM attributable to the GIP Transaction and the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction").

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

(4)

Amounts include cryptocurrency and commodity ETFs and ETPs.

SUMMARY OF REVENUE

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2024

 

 

2023

 

 

Change

 

 

2024

 

 

Change

 

 

2024

 

 

2023

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

558

 

 

$

484

 

 

$

74

 

 

$

553

 

 

$

5

 

 

$

2,166

 

 

$

2,000

 

 

$

166

 

ETFs

 

1,375

 

 

 

1,102

 

 

 

273

 

 

 

1,309

 

 

 

66

 

 

 

5,124

 

 

 

4,418

 

 

 

706

 

Non-ETF index

 

209

 

 

 

183

 

 

 

26

 

 

 

198

 

 

 

11

 

 

 

784

 

 

 

743

 

 

 

41

 

Equity subtotal

 

2,142

 

 

 

1,769

 

 

 

373

 

 

 

2,060

 

 

 

82

 

 

 

8,074

 

 

 

7,161

 

 

 

913

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

494

 

 

 

468

 

 

 

26

 

 

 

493

 

 

 

1

 

 

 

1,952

 

 

 

1,897

 

 

 

55

 

ETFs

 

360

 

 

 

311

 

 

 

49

 

 

 

354

 

 

 

6

 

 

 

1,367

 

 

 

1,230

 

 

 

137

 

Non-ETF index

 

96

 

 

 

85

 

 

 

11

 

 

 

93

 

 

 

3

 

 

 

369

 

 

 

353

 

 

 

16

 

Fixed income subtotal

 

950

 

 

 

864

 

 

 

86

 

 

 

940

 

 

 

10

 

 

 

3,688

 

 

 

3,480

 

 

 

208

 

Multi-asset

 

326

 

 

 

299

 

 

 

27

 

 

 

325

 

 

 

1

 

 

 

1,278

 

 

 

1,203

 

 

 

75

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private markets

 

480

 

 

 

251

 

 

 

229

 

 

 

235

 

 

 

245

 

 

 

1,196

 

 

 

889

 

 

 

307

 

Liquid alternatives

 

146

 

 

 

138

 

 

 

8

 

 

 

143

 

 

 

3

 

 

 

568

 

 

 

572

 

 

 

(4

)

Currency and commodities(1)

 

80

 

 

 

44

 

 

 

36

 

 

 

63

 

 

 

17

 

 

 

247

 

 

 

185

 

 

 

62

 

Alternatives subtotal

 

706

 

 

 

433

 

 

 

273

 

 

 

441

 

 

 

265

 

 

 

2,011

 

 

 

1,646

 

 

 

365

 

Long-term

 

4,124

 

 

 

3,365

 

 

 

759

 

 

 

3,766

 

 

 

358

 

 

 

15,051

 

 

 

13,490

 

 

 

1,561

 

Cash management

 

293

 

 

 

240

 

 

 

53

 

 

 

264

 

 

 

29

 

 

 

1,049

 

 

 

909

 

 

 

140

 

Total investment advisory, administration fees and securities lending revenue

 

4,417

 

 

 

3,605

 

 

 

812

 

 

 

4,030

 

 

 

387

 

 

 

16,100

 

 

 

14,399

 

 

 

1,701

 

Investment advisory performance fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

112

 

 

 

61

 

 

 

51

 

 

 

13

 

 

 

99

 

 

 

161

 

 

 

99

 

 

 

62

 

Fixed income

 

22

 

 

 

2

 

 

 

20

 

 

 

3

 

 

 

19

 

 

 

34

 

 

 

4

 

 

 

30

 

Multi-asset

 

10

 

 

 

5

 

 

 

5

 

 

 

1

 

 

 

9

 

 

 

24

 

 

 

28

 

 

 

(4

)

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private markets

 

108

 

 

 

149

 

 

 

(41

)

 

 

7

 

 

 

101

 

 

 

308

 

 

 

273

 

 

 

35

 

Liquid alternatives

 

199

 

 

 

94

 

 

 

105

 

 

 

364

 

 

 

(165

)

 

 

680

 

 

 

150

 

 

 

530

 

Alternatives subtotal

 

307

 

 

 

243

 

 

 

64

 

 

 

371

 

 

 

(64

)

 

 

988

 

 

 

423

 

 

 

565

 

Total investment advisory performance fees

 

451

 

 

 

311

 

 

 

140

 

 

 

388

 

 

 

63

 

 

 

1,207

 

 

 

554

 

 

 

653

 

Technology services revenue

 

428

 

 

 

379

 

 

 

49

 

 

 

403

 

 

 

25

 

 

 

1,603

 

 

 

1,485

 

 

 

118

 

Distribution fees

 

322

 

 

 

303

 

 

 

19

 

 

 

323

 

 

 

(1

)

 

 

1,273

 

 

 

1,262

 

 

 

11

 

Advisory and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

14

 

 

 

15

 

 

 

(1

)

 

 

11

 

 

 

3

 

 

 

49

 

 

 

81

 

 

 

(32

)

Other

 

45

 

 

 

18

 

 

 

27

 

 

 

42

 

 

 

3

 

 

 

175

 

 

 

78

 

 

 

97

 

Total advisory and other revenue

 

59

 

 

 

33

 

 

 

26

 

 

 

53

 

 

 

6

 

 

 

224

 

 

 

159

 

 

 

65

 

Total revenue

$

5,677

 

 

$

4,631

 

 

$

1,046

 

 

$

5,197

 

 

$

480

 

 

$

20,407

 

 

$

17,859

 

 

$

2,548

 

_________________________

(1)

Amounts include cryptocurrency and commodity ETFs and ETPs.

Highlights

• Investment advisory, administration fees and securities lending revenue increased $812 million from the fourth quarter of 2023 and $387 million from the third quarter of 2024, primarily driven by organic base fee growth, the impact of market beta on average AUM and approximately $230 million of fees related to AUM acquired in the GIP Transaction. Securities lending revenue of $161 million increased from $157 million in the fourth quarter of 2023 and $149 million in the third quarter of 2024.
• Performance fees increased $140 million from the fourth quarter of 2023, reflecting higher revenue from liquid alternative and long-only products, partially offset by lower revenue from private markets products. Performance fees increased $63 million from the third quarter of 2024, primarily driven by higher revenue from private markets and long-only products, partially offset by strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.
• Technology services revenue increased $49 million from the fourth quarter of 2023 and $25 million from the third quarter of 2024, reflecting the successful onboarding of a number of new clients. Technology services annual contract value (“ACV”)(1) increased 12% from the fourth quarter of 2023, driven by strong demand for a full range of Aladdin technology offerings.

_________________________

(1)

See note (4) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV.

SUMMARY OF OPERATING EXPENSE

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2024

 

 

2023

 

 

Change

 

 

2024

 

 

Change

 

 

2024

 

 

2023

 

 

Change

 

Operating expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

$

1,885

 

 

$

1,503

 

 

$

382

 

 

$

1,578

 

 

$

307

 

 

$

6,546

 

 

$

5,779

 

 

$

767

 

Sales, asset and account expense(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution and servicing costs

 

565

 

 

 

502

 

 

 

63

 

 

 

549

 

 

 

16

 

 

 

2,171

 

 

 

2,051

 

 

 

120

 

Direct fund expense

 

389

 

 

 

318

 

 

 

71

 

 

 

379

 

 

 

10

 

 

 

1,464

 

 

 

1,331

 

 

 

133

 

Sub-advisory and other

 

42

 

 

 

35

 

 

 

7

 

 

 

34

 

 

 

8

 

 

 

140

 

 

 

116

 

 

 

24

 

Total sales, asset and account expense

 

996

 

 

 

855

 

 

 

141

 

 

 

962

 

 

 

34

 

 

 

3,775

 

 

 

3,498

 

 

 

277

 

General and administration expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and promotional

 

92

 

 

 

87

 

 

 

5

 

 

 

64

 

 

 

28

 

 

 

314

 

 

 

309

 

 

 

5

 

Occupancy and office related

 

113

 

 

 

105

 

 

 

8

 

 

 

105

 

 

 

8

 

 

 

421

 

 

 

418

 

 

 

3

 

Portfolio services

 

68

 

 

 

68

 

 

 

-

 

 

 

65

 

 

 

3

 

 

 

262

 

 

 

270

 

 

 

(8

)

Technology

 

182

 

 

 

186

 

 

 

(4

)

 

 

175

 

 

 

7

 

 

 

674

 

 

 

607

 

 

 

67

 

Professional services

 

88

 

 

 

67

 

 

 

21

 

 

 

67

 

 

 

21

 

 

 

277

 

 

 

195

 

 

 

82

 

Communications

 

10

 

 

 

11

 

 

 

(1

)

 

 

10

 

 

 

-

 

 

 

39

 

 

 

47

 

 

 

(8

)

Foreign exchange remeasurement

 

(7

)

 

 

(4

)

 

 

(3

)

 

 

3

 

 

 

(10

)

 

 

-

 

 

 

(6

)

 

 

6

 

Contingent consideration fair value adjustments

 

(28

)

 

 

2

 

 

 

(30

)

 

 

(2

)

 

 

(26

)

 

 

(36

)

 

 

3

 

 

 

(39

)

Other general and administration

 

78

 

 

 

67

 

 

 

11

 

 

 

75

 

 

 

3

 

 

 

270

 

 

 

252

 

 

 

18

 

Total general and administration expense

 

596

 

 

 

589

 

 

 

7

 

 

 

562

 

 

 

34

 

 

 

2,221

 

 

 

2,095

 

 

 

126

 

Restructuring charge

 

-

 

 

 

61

 

 

 

(61

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

61

 

 

 

(61

)

Amortization and impairment of intangible assets

 

125

 

 

 

38

 

 

 

87

 

 

 

89

 

 

 

36

 

 

 

291

 

 

 

151

 

 

 

140

 

Total operating expense

$

3,602

 

 

$

3,046

 

 

$

556

 

 

$

3,191

 

 

$

411

 

 

$

12,833

 

 

$

11,584

 

 

$

1,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_________________________

(1)

Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

Highlights

• Employee compensation and benefits expense increased $382 million from the fourth quarter of 2023 and $307 million from the third quarter of 2024, primarily reflecting higher incentive compensation as a result of higher performance fees and operating income. Fourth quarter 2024 employee compensation and benefit expense was also impacted by the GIP Transaction, including nonrecurring retention-related deferred compensation expense(1).
• Sales, asset and account expense increased $141 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
• General and administration expense increased $7 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, primarily associated with the acquisition-related costs(1) in connection with the GIP Transaction, including transaction costs recorded in professional services expense, partially offset by lower contingent consideration fair value adjustments. The general and administration expense increase from the third quarter of 2024 also included higher seasonal marketing and promotional expense.
• Amortization and impairment of intangible assets(1) increased $87 million from the fourth quarter of 2023 and $36 million from the third quarter of 2024, primarily reflecting amortization of intangible assets acquired in the GIP Transaction. In addition, third quarter 2024 amortization and impairment of intangible assets included the impact of a $50 million noncash impairment charge related to certain of the Company's indefinite-lived management contracts.
• In the fourth quarter of 2023, a restructuring charge(1) of $61 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets.

_________________________

(1)

These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs and restructuring charge, as applicable. See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

SUMMARY OF NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2024

 

 

2023

 

 

Change

 

 

2024

 

 

Change

 

 

2024

 

 

2023

 

 

Change

 

Nonoperating income (expense), GAAP basis

$

28

 

 

$

342

 

 

$

(314

)

 

$

259

 

 

$

(231

)

 

$

721

 

 

$

880

 

 

$

(159

)

Less: Net income (loss) attributable to noncontrolling interests ("NCI")

 

(9

)

 

 

114

 

 

 

(123

)

 

 

60

 

 

 

(69

)

 

 

143

 

 

 

174

 

 

 

(31

)

Nonoperating income (expense), net of NCI

 

37

 

 

 

228

 

 

 

(191

)

 

 

199

 

 

 

(162

)

 

 

578

 

 

 

706

 

 

 

(128

)

Less: Hedge gain (loss) on deferred cash compensation plans(1)

 

(2

)

 

 

29

 

 

 

(31

)

 

 

9

 

 

 

(11

)

 

 

45

 

 

 

58

 

 

 

(13

)

Nonoperating income (expense), net of NCI, as adjusted(2)

$

39

 

 

$

199

 

 

$

(160

)

 

$

190

 

 

$

(151

)

 

$

533

 

 

$

648

 

 

$

(115

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2024

 

 

2023

 

 

Change

 

 

2024

 

 

Change

 

 

2024

 

 

2023

 

 

Change

 

Net gain (loss) on investments, net of NCI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity

$

(42

)

 

$

68

 

 

$

(110

)

 

$

9

 

 

$

(51

)

 

$

(10

)

 

$

349

 

 

$

(359

)

Real assets

 

(5

)

 

 

2

 

 

 

(7

)

 

 

13

 

 

 

(18

)

 

 

14

 

 

 

13

 

 

 

1

 

Other alternatives(3)

 

8

 

 

 

17

 

 

 

(9

)

 

 

9

 

 

 

(1

)

 

 

41

 

 

 

49

 

 

 

(8

)

Other investments(4)

 

42

 

 

 

15

 

 

 

27

 

 

 

20

 

 

 

22

 

 

 

127

 

 

 

66

 

 

 

61

 

Hedge gain (loss) on deferred cash compensation plans(1)

 

(2

)

 

 

29

 

 

 

(31

)

 

 

9

 

 

 

(11

)

 

 

45

 

 

 

58

 

 

 

(13

)

Subtotal

 

1

 

 

 

131

 

 

 

(130

)

 

 

60

 

 

 

(59

)

 

 

217

 

 

 

535

 

 

 

(318

)

Other income/gain (expense/loss)(5)

 

(10

)

 

 

20

 

 

 

(30

)

 

 

57

 

 

 

(67

)

 

 

132

 

 

 

(10

)

 

 

142

 

Total net gain (loss) on investments, net of NCI

 

(9

)

 

 

151

 

 

 

(160

)

 

 

117

 

 

 

(126

)

 

 

349

 

 

 

525

 

 

 

(176

)

Interest and dividend income

 

212

 

 

 

159

 

 

 

53

 

 

 

236

 

 

 

(24

)

 

 

767

 

 

 

473

 

 

 

294

 

Interest expense

 

(166

)

 

 

(82

)

 

 

(84

)

 

 

(154

)

 

 

(12

)

 

 

(538

)

 

 

(292

)

 

 

(246

)

Net interest income (expense)

 

46

 

 

 

77

 

 

 

(31

)

 

 

82

 

 

 

(36

)

 

 

229

 

 

 

181

 

 

 

48

 

Nonoperating income (expense), net of NCI

 

37

 

 

 

228

 

 

 

(191

)

 

 

199

 

 

 

(162

)

 

 

578

 

 

 

706

 

 

 

(128

)

Less: Hedge gain (loss) on deferred cash compensation plans(1)

 

(2

)

 

 

29

 

 

 

(31

)

 

 

9

 

 

 

(11

)

 

 

45

 

 

 

58

 

 

 

(13

)

Nonoperating income (expense), net of NCI, as adjusted(2)

$

39

 

 

$

199

 

 

$

(160

)

 

$

190

 

 

$

(151

)

 

$

533

 

 

$

648

 

 

$

(115

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_________________________

(1)

Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.

(2)

Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 10 through 12.

(3)

Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.

(4)

Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.

(5)

Amounts for the three months and year ended December 31, 2024, include earnings (losses) from certain equity method minority investments, which the Company recorded within nonoperating income (expense) beginning in the first quarter of 2024 and noncash pre-tax gains (losses) related to the revaluation of certain minority investments. In addition, amount for the year ended December 31, 2024 includes a pre-tax gain of approximately $66 million in connection with a transaction related to a minority investment in EquiLend Holdings, LLC and a noncash pre-tax gain in connection with the SpiderRock Transaction of approximately $19 million.

SUMMARY OF INCOME TAX EXPENSE

 

Three Months

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2024

 

 

2023

 

 

Change

 

2024

 

 

Change

 

 

2024

 

 

2023

 

 

Change

 

Income tax expense

$

442

 

 

$

438

 

 

$

4

 

 

$

574

 

 

$

(132

)

 

$

1,783

 

 

$

1,479

 

 

$

304

 

Effective tax rate

 

20.9

%

 

 

24.2

%

 

(330) bps

 

 

 

26.0

%

 

(510) bps

 

 

 

21.9

%

 

 

21.2

%

 

70 bps

 

Highlights

• Fourth quarter 2024 income tax expense includes $63 million of discrete tax benefits related to the realization of capital losses from changes in the Company’s organizational tax structure. In addition, fourth quarter 2024 income tax expense includes a $14 million net noncash tax expense related to the revaluation of certain deferred income tax liabilities.
• Third quarter 2023 income tax expense included approximately $223 million of discrete tax benefits related to the resolution of certain outstanding tax matters.

RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

(in millions), (unaudited)

 

2024

 

 

2023

 

 

2024

 

 

2024

 

 

2023

 

 

Operating income, GAAP basis

 

$

2,075

 

 

$

1,585

 

 

$

2,006

 

 

$

7,574

 

 

$

6,275

 

 

Non-GAAP expense adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans (a)

 

 

-

 

 

 

28

 

 

 

7

 

 

 

43

 

 

 

57

 

 

Amortization and impairment of intangible assets (b)

 

 

125

 

 

 

38

 

 

 

89

 

 

 

291

 

 

 

151

 

 

Acquisition-related compensation costs (b)

 

 

116

 

 

 

2

 

 

 

11

 

 

 

148

 

 

 

17

 

 

Acquisition-related transaction costs (b)(1)

 

 

38

 

 

 

-

 

 

 

17

 

 

 

90

 

 

 

7

 

 

Contingent consideration fair value adjustments (b)

 

 

(28

)

 

 

2

 

 

 

(2

)

 

 

(36

)

 

 

3

 

 

Lease costs - New York (c)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14

 

 

Restructuring charge (d)

 

 

-

 

 

 

61

 

 

 

-

 

 

 

-

 

 

 

61

 

 

Reduction of indemnification asset (e)(1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

Operating income, as adjusted (1)

 

$

2,326

 

 

$

1,716

 

 

$

2,128

 

 

$

8,110

 

 

$

6,593

 

 

Revenue, GAAP basis

 

$

5,677

 

 

$

4,631

 

 

$

5,197

 

 

$

20,407

 

 

$

17,859

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

(322

)

 

 

(303

)

 

 

(323

)

 

 

(1,273

)

 

 

(1,262

)

 

Investment advisory fees

 

 

(243

)

 

 

(199

)

 

 

(226

)

 

 

(898

)

 

 

(789

)

 

Revenue used for operating margin measurement

 

$

5,112

 

 

$

4,129

 

 

$

4,648

 

 

$

18,236

 

 

$

15,808

 

 

Operating margin, GAAP basis

 

 

36.6

%

 

 

34.2

%

 

 

38.6

%

 

 

37.1

%

 

 

35.1

%

 

Operating margin, as adjusted (1)

 

 

45.5

%

 

 

41.6

%

 

 

45.8

%

 

 

44.5

%

 

 

41.7

%

 

_________________________

(1)

Amounts included within general and administration expense.



 

See note (1) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.

RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

(in millions), (unaudited)

 

2024

 

 

2023

 

 

2024

 

 

2024

 

 

2023

 

 

Nonoperating income (expense), GAAP basis

 

$

28

 

 

$

342

 

 

$

259

 

 

$

721

 

 

$

880

 

 

Less: Net income (loss) attributable to NCI

 

 

(9

)

 

 

114

 

 

 

60

 

 

 

143

 

 

 

174

 

 

Nonoperating income (expense), net of NCI

 

 

37

 

 

 

228

 

 

 

199

 

 

 

578

 

 

 

706

 

 

Less: Hedge gain (loss) on deferred cash compensation plans (a)

 

 

(2

)

 

 

29

 

 

 

9

 

 

 

45

 

 

 

58

 

 

Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2)

 

$

39

 

 

$

199

 

 

$

190

 

 

$

533

 

 

$

648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.

RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

(in millions, except per share data), (unaudited)

 

2024

 

 

2023

 

 

2024

 

 

2024

 

 

2023

 

 

Net income attributable to BlackRock, Inc., GAAP basis

 

$

1,670

 

 

$

1,375

 

 

$

1,631

 

 

$

6,369

 

 

$

5,502

 

 

Non-GAAP adjustments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net impact of hedged deferred cash compensation plans (a)

 

 

2

 

 

 

(1

)

 

 

(2

)

 

 

(1

)

 

 

(1

)

 

Amortization and impairment of intangible assets (b)

 

 

94

 

 

 

28

 

 

 

67

 

 

 

218

 

 

 

114

 

 

Acquisition-related compensation costs (b)

 

 

87

 

 

 

1

 

 

 

8

 

 

 

110

 

 

 

12

 

 

Acquisition-related transaction costs (b)

 

 

28

 

 

 

-

 

 

 

13

 

 

 

66

 

 

 

5

 

 

Contingent consideration fair value adjustments (b)

 

 

(21

)

 

 

2

 

 

 

(2

)

 

 

(27

)

 

 

3

 

 

Lease costs - New York (c)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11

 

 

Restructuring charge (d)

 

 

-

 

 

 

46

 

 

 

-

 

 

 

-

 

 

 

46

 

 

Income tax matters

 

 

14

 

 

 

-

 

 

 

-

 

 

 

(123

)

 

 

-

 

 

Net income attributable to BlackRock, Inc., as adjusted (3)

 

$

1,874

 

 

$

1,451

 

 

$

1,715

 

 

$

6,612

 

 

$

5,692

 

 

Diluted weighted-average common shares outstanding

 

 

157.0

 

 

 

150.2

 

 

 

149.6

 

 

 

151.6

 

 

 

150.7

 

 

Diluted earnings per common share, GAAP basis

 

$

10.63

 

 

$

9.15

 

 

$

10.90

 

 

$

42.01

 

 

$

36.51

 

 

Diluted earnings per common share, as adjusted (3)

 

$

11.93

 

 

$

9.66

 

 

$

11.46

 

 

$

43.61

 

 

$

37.77

 

 

_________________________

(1)

Non-GAAP adjustments, excluding income tax matters, are net of tax.



 

See note (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)

BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

• Operating income, as adjusted, includes the following non-GAAP expense adjustments:

(a)

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.

(b)

Acquisition-related costs. Acquisition related costs include adjustments related to amortization and noncash impairment of intangible assets, other acquisition-related costs, including professional services expense and compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.

(c)

Lease costs – New York. In 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.

(d)

Restructuring charge. In the fourth quarter of 2023, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets. Management believes excluding the impact of these restructuring charges when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.

(e)

Reduction of indemnification asset. In connection with a previous acquisition, BlackRock recorded an $8 million indemnification asset. Due to the resolution of certain tax matters in the third quarter of 2023, BlackRock recorded $8 million of general and administration expense to reflect the reduction of the indemnification asset and an offsetting $8 million tax benefit. The $8 million general and administrative expense and $8 million tax benefit have been excluded from as adjusted results as there was no impact on BlackRock’s book value.

• Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters in 2024 include a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, amounts for 2024 include a net noncash expense of $14 million associated with the revaluation of deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. This discrete tax expense has been excluded from the as adjusted results as it does not have a cash flow impact as well as to ensure comparability among periods presented.

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.

(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.

FORWARD-LOOKING STATEMENTS

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of HPS (the “HPS Transaction”), Preqin (the “Preqin Transaction”) and the GIP Transaction (together with the HPS Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the HPS Transaction and the Preqin Transaction, including delays in the expected closing date of the HPS Transaction or the Preqin Transaction, the possibility that either or both of the HPS Transaction or the Preqin Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; the possibility that expected synergies and value creation from the HPS Transaction or the Preqin Transaction will not be realized, or will not be realized within the expected time period; and the risk of impacts to business and operational relationships related to disruptions from the HPS Transaction or the Preqin Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock’s business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to BlackRock; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

PERFORMANCE NOTES

Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2024 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of November 30, 2024. The performance data does not include accounts terminated prior to December 31, 2024 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of December 31, 2024 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

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