Q2 2024 WisdomTree Inc Earnings Call

Operator: Greetings and welcome to the WisdomTree Q2 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jessica Zaloom, Head of Corporate Communication. Thank you, Jessica. You may begin.

Operator: Greetings and welcome to the WisdomTree Q2 2024 earnings call. At this time, all participants are in a listen-only mode.

Greetings and welcome to be Wisdom tree Q2, 'twenty 'twenty four earnings call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press star zero on your.

Operator: A brief question-and-answer session will follow the formal presentation.

Operator: If anyone wants to require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Telephone keypad as a reminder, this conference is being recorded it is now my pleasure to introduce your host Jessica.

Jessica Zaloom: It is now my pleasure to introduce your host, Jessica Zaloom, Head of Corporate Communication.

Speaker Change: Head of corporate communications. Thank you Jessica you may begin.

Jessica Zaloom: Thank you, Jessica. You may begin.

Unknown Executive: Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain four looking statements within the meaning of the Private Security Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the results discussed in four looking statements, including, but not limited to the risk set forth in this presentation and in the risk factor section of WisdomTree's annual report on Form 10-K for the year ended December 31st, 2023. And quarterly report on Form 10-Q for the quarter ended March 31st, 2024.

Jessica Zaloom: Good morning. Before we begin, I would like to reference our legal disclaimer included in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation and in the risk factor section of WisdomTree's annual report on Form 10-K for the year ended December 31st, 2023 and quarterly report on Form 10-Q for the quarter ended WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston.

Speaker Change: Good morning, before we begin I would like to reference our legal disclaimer available in todays presentation.

Speaker Change: It's pretty contagion may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Speaker Change: If doctors could cause actual results to differ materially from the results discussed in forward looking statements, including but not limited to the risks set forth in this presentation and in the risk factors section of Wisdom Tree's annual report on Form 10-K for the year ended December 31st 2002.

Speaker Change: 'twenty three and quarterly report on Form 10-Q for the quarter ended March 31st 2024.

Unknown Executive: WisdomTree assumes no duty and does not undertake to update any forward-looking statements.

Speaker Change: Wisdom tree assumes no duty and does not undertake to update any forward looking statements.

Brian Edmondson: Now, it is my pleasure to turn the call over to WisdomTree's CFO, Brian Edmondson.

Now it is my pleasure to turn the call over to wisdom tree CFO, Bryan and medicine.

Bryan Joseph Edmiston: Thank you, Jessica, and good morning, everyone. I'll be covering our second quarter results along with commentary on our forward-looking guidance before turning the call over to Jarrett and Jono for additional updates on our business. We ended the quarter with record AUM of $109.7 billion, driven primarily by favorable market conditions. And while our flows were largely muted during the quarter due to outflows from our commodity products, which tend to be tactical in nature, we continue observing strong engagement in our U.S.-listed ETFs and Offshore USITS ETF Suite.

Brian Edmondson: Thank you, Jessica, and good morning, everyone. I'll be covering our second quarter results, along with commentary on our forward-looking guidance before turning the call over to Jared and Jono for additional updates on our business. We ended the quarter with record AUM of 109.7 billion, driven primarily by favorable market conditions. And while our flows were largely muted during the quarter due to outflow from our commodity products, which tend to be tactical in major, we continue observing strong engagement in our US listed ETFs and offshore usage ETFs suite. These products generated a combined 1.9 billion of net inflows during the quarter and nearly 4.2 billion of net inflows year-to-date, representing an 11% annualized pace of year-to-date organic growth.

Bryan: Thank you Jessica and good morning, everyone.

Speaker Change: I'll be covering our second quarter results along with commentary on our forward looking guidance before turning the call over to Jarrett and John Doe for additional updates on our business.

Speaker Change: We ended the quarter with record AUM of 109, 7 billion driven primarily by favorable market conditions.

Speaker Change: And while it flows were largely muted during the quarter due to outflows from our commodity products, which tend to be tactical in nature. We continue observing strong engagement in our U S listed Etfs and offshore UCITS ETF suite.

Bryan Joseph Edmiston: These products generated a combined $1.9 billion of net inflows during the quarter and nearly $4.2 billion of net inflows year-to-date, representing an 11% annualized pace of year-to-date organic growth. Our flow profile over the course of the year has pushed our blended fee rate higher, averaging approximately 37 basis points during the quarter. Our record AUM continues to drive revenue growth and expanding margins, demonstrating the scalability of our business model. Next slide.

Speaker Change: These products generated a combined 1.9 billion of net inflows during the quarter and nearly $4 2 billion of net inflows year to date.

Speaker Change: Representing an 11% annualized pace of year to date organic growth.

Brian Edmondson: Our flow profile over the course of the year has remixed our blended fee rate higher, averaging approximately 37 basis points during the quarter. Our record AUM continues to drive revenue growth and expanding margins, demonstrating the scalability of our business model.

Speaker Change: Our flow profile over the course of the year has remixed our blended fee rate higher averaging approximately 37 basis points during the quarter.

Speaker Change: Our record AUM continues to drive revenue growth and expanding margins demonstrating the scalability of our business model.

Brian Edmondson: Next slide. Revenues were 107 million during the quarter. An increase of 10.5% from the first quarter and up approximately 25% versus the prior year quarter, driven by higher average AUM. We also observed an 87% increase in other revenue versus the first quarter due to updates and asset-based revenue arrangements on certain European listed products. Other revenue total of 8.1 million this quarter and reflects ETP revenues captured away from the expense ratio, providing further revenue diversification.

Speaker Change: Next slide.

Bryan Joseph Edmiston: Revenues were $107 million during the quarter, an increase of 10.5% from the first quarter and up approximately 25% versus the prior year quarter, driven by higher average AUM. We also observed an 87% increase in other revenue versus the first quarter due to updates in asset-based revenue arrangements on certain European-listed products. Other revenue totaled $8.1 million this quarter and reflects ETP revenues captured away from the expense ratio, providing further revenue diversification. Looking back over the longer term, the magnitude of other revenue generated this quarter is almost five times what was realized in June of 2022. There are asset-based and transaction-based elements driving other revenue.

Revenues were $107 million during the quarter, an increase of 10, 5% from the first quarter and up approximately 25% versus the prior year quarter, driven by higher average AUM.

Speaker Change: We also observed an 87% increase in other revenue versus the first quarter due to updates and asset based revenue arrangements uncertain European listed products.

Speaker Change: Other revenue totaled $8 1 million this quarter and reflects E. T. P revenues captured away from the expense ratio provide.

Speaker Change: Providing further revenue diversification.

Brian Edmondson: Looking back over the longer term, the magnitude of other revenue generated this quarter is almost five times what was realized in June of 2022. There are asset-based and transaction-based elements driving other revenue, and while difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward.

Speaker Change: Looking back over the longer term.

Magnus suite of other revenue generated this quarter is almost five times what was realized in June of 2022.

Speaker Change: There are asset based and transaction based elements driving other revenue.

Bryan Joseph Edmiston: And while difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward. On a year-to-date basis, our revenues have grown 21.5%, and our adjusted operating margin was 32.6%, representing an expansion of over 840 basis points versus the prior year or 480 basis points organically when adjusting for the impact of our gold royalty buyout which was accomplished in May of last year. Our adjusted net income for the quarter was $27.1 million, or $0.16 a share. Next slide.

Speaker Change: And while difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter.

Speaker Change: Serves as a fair approximation of what we could expect going forward.

Brian Edmondson: On a year-to-date basis, our revenues have grown 21.5%, and our adjusted operating margin was 32.6%, representing expansion of over 840 basis points versus the prior year, were 480 basis points organically when adjusting for the impact of our gold royalty buyout, which was accomplished in May of last year. Our adjusted net income for the quarter was 27.1 million, or 16 cents a share.

Speaker Change: On a year to date basis, our revenues have grown 21, 5%.

Speaker Change: Our adjusted operating margin was 32, 6%.

Speaker Change: Representing expansion of over 840 basis points versus the prior year.

With 480 basis points organically when adjusting for the impact of our gold royalty buy out which was accomplished in may of last year.

Our adjusted net income for the quarter was $27 1 million.

Speaker Change: Or 16 cents a share.

Brian Edmondson: Next slide. Now a few comments on our forecasted guidance.

Speaker Change: Next slide.

Bryan Joseph Edmiston: Now a few comments on our forecasted guidance. We are updating our forecasted compensation expense guidance, which will be provided as a percentage of revenue going forward, rather than as a range of fixed dollar amounts. We have taken into consideration a variety of scenarios, including the potential magnitude of our flows over the course of the year.

Speaker Change: Now a few comments on our forecasted guidance.

Brian Edmondson: We are updating our forecasted compensation expense guidance, which will be provided as a percentage of revenue going forward, rather than as a range of $6 amounts. Having taken into consideration a variety of scenarios, including the potential magnitude of our flows over the course of the year, revenue and operating income growth, forecasted margin expansion, and our share price performance in relation to our peers, we currently estimate our comp to revenue ratio to be 28 to 29% for the year. This range is largely aligned with current straight estimates, and would represent a compensation ratio lower than the 31.4% we realized last year.

Speaker Change: We are updating our forecasted compensation expense guidance, which will be provided as a percentage of revenue going forward.

Speaker Change: Rather than its a range a fixed dollar amounts.

Speaker Change: Having taken into consideration a variety of scenarios.

Speaker Change: Including the potential magnitude of our flows over the course of the year.

Bryan Joseph Edmiston: Revenue and Operating Income Growth, Forecasted Margin Expansion, and our share price performance in relation to our peers. We currently estimate our comp-to-revenue ratio to be 28 to 29 percent for the year. This range is largely aligned with current street estimates and would represent a compensation ratio lower than the 31.4% we realized last year. Our discretionary spending was $30.5 million year-to-date. We are reiterating our full-year discretionary spending guidance of $64 to $68 million.

Speaker Change: Revenue and operating income growth.

Speaker Change: Forecasted margin expansion and.

Speaker Change: And our share price performance in relation to our peers.

Speaker Change: We currently estimate our comp to revenue ratio to be 28% to 29% for the year.

Speaker Change: This range is largely aligned with current street estimates and would represent a compensation ratio lower than the 31, 4% we realized last year.

Brian Edmondson: Our discretionary spending was 30.5 million year-to-date. We are reiterating our full-year discretionary spending guidance of 64 to 68 million. The range is largely dependent on the magnitude of marketing spend associated with Ventree Prime over the remainder of the year as we continue testing messages to further define our target customers, while enhancing the app with additional features. Due to seasonality, the discretionary spend for the remainder of the year will likely be more skewed toward the fourth quarter.

Speaker Change: Our discretionary spending was $30 5 million year to date.

Speaker Change: We are reiterating our full year discretionary spending guidance of 64 to 68 million.

Bryan Joseph Edmiston: The range is largely dependent on the magnitude of marketing spend associated with WisdomTree Prime over the remainder of the year, as we continue testing messages to further define our target customers, while enhancing the app with additional features. However, due to seasonality, the discretionary spend for the remainder of the year will likely be more skewed toward the fourth quarter.

Speaker Change: The range is largely dependent on the magnitude of marketing spend associated with wisdom tree prime over the remainder of the year.

Speaker Change: We continue testing messages to further define our target customers.

Speaker Change: While enhancing the app with additional features.

Speaker Change: Due to seasonality the discretionary spend for the remainder of the year will likely be more skewed toward the fourth quarter.

Brian Edmondson: We reported a gross margin of 81.2% in the second quarter, and we are updating our gross margin guidance to be between 80 and 81% for the year, a 1% point improvement considering current AUN levels and higher forecasted other revenue going forward. If AUN scales higher from continued organic flow growth for favorable market conditions, we would anticipate further gross margin expansion.

Bryan Joseph Edmiston: We reported a growth margin of 81.2% in the second quarter, and we are updating our gross margin guidance to be between 80 and 81% for the year, a one percentage point improvement, considering current AUM levels and higher forecasted other revenue going forward. If AUM scales higher from continued organic flow growth for favorable market conditions, we would anticipate further gross margin expansion. Our third-party distribution expense is $5 million year-to-date.

Speaker Change: We reported a gross margin of 81, 2% in the second quarter.

Speaker Change: And we are updating our gross margin guidance to be between 80 and 81% for the year of one percentage point improvement.

Considering current AUM levels and higher forecasted other revenue going forward.

It's a U N scales hires from continued organic slow growth with favorable market conditions.

Speaker Change: We would anticipate further gross margin expansion.

Brian Edmondson: Our third-party distribution expense was $5 million year-to-date. We are maintaining our guidance of 10 to 11 million per year. We are also maintaining our annual adjusted interest expense guidance of $14 million. As a reminder, our adjusted interest expense guidance is exclusive of any interest cost we are required to impute under GAAP. Related to our interest-free financing of the shares we repurchased from the World Gold Council last November.

Speaker Change: Our third party distribution expense was $5 million year to date.

Bryan Joseph Edmiston: We are maintaining our guidance of 10 to 11 million for the year. We are also maintaining our annual adjusted interest expense guidance of $14 million. As a reminder, our adjusted interest expense guidance is exclusive of any interest costs we are required to impute under GAAP related to our interest-free financing of the shares we repurchased from the World Gold Council last November. Our interest income year-to-date was $2.8 million, and we are maintaining our interest income guidance for the year to be about $5 million based upon the magnitude of our forecasted interest earning assets.

Speaker Change: We are maintaining our guidance of 10 to 11 million for the year.

Speaker Change: We are also maintaining our annual adjusted interest expense guidance of $14 million.

Speaker Change: As a reminder, our adjusted interest expense guidance is exclusive of any interest cost we were required to compute under GAAP.

Related to our interest free financing of the shares we repurchased from the World Gold Council last November.

Brian Edmondson: Our interest income year to date was $2.8 million, and we are maintaining our interest income guidance for the year to be about $5 million based upon the magnitude of our forecasted interest earning assets. Our adjusted tax rate was 25% in the second quarter, and our guidance of 24% to 25% remains unchanged. Our weighted average distributed shares were 165.9 million year-to-date, and our guidance of 166 to 168 million for the year remains unchanged as well. As a reminder, this guidance does not take into consideration any variability in shares associated with our convertible notes.

Speaker Change: Our interest income year to date was $2 8 million.

Speaker Change: And we are maintaining our interest income guidance for the year to be about $5 million based upon the magnitude of our forecasted interest earning assets.

Bryan Joseph Edmiston: Our adjusted tax rate was 25% in the second quarter, and our guidance of 24% to 25% remains unchanged, and our weighted average diluted shares were $165.9 million year-to-date, and our guidance of $166 to $168 million for the year remains unchanged as well. As a reminder, this guidance does not take into consideration any variability in shares associated with our convertible notes. Our current stock, which is approaching $11 per share, is higher than the $9.54 conversion price related to convertible notes scheduled to mature in 2028.

Speaker Change: Our adjusted tax rate was 25% in the second quarter.

Speaker Change: And our guidance of 24% to 25% remains unchanged.

Speaker Change: And our weighted average diluted shares were $165 9 million year to date.

Speaker Change: And our guidance of 166 to 168 million for the year remains unchanged as well.

Speaker Change: As a reminder, this guidance does not take into consideration any variability in shares associated with our convertible notes.

Brian Edmondson: Our current stock, which is approaching $11 per share, is higher than the 954 conversion price related to convertible notes scheduled to mature in 2028. While our notes require principle to be paid in cash, our deluded shares would need to be increased for any incremental shares associated with the conversion option once our stock price exceeds $9.54 per share. An illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with the conversion option going forward.

Speaker Change: Our current stock, which is approaching $11 per share is higher than the 954 conversion price related to convertible notes scheduled to mature in 2028.

Bryan Joseph Edmiston: While our notes require principal to be paid in cash, our diluted shares would need to be increased for any incremental shares associated with the conversion option once our stock price exceeds $9.54 per share. An illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with the conversion option going forward. That's all I have. I will now turn the call over to Jared.

Speaker Change: While our notes require principle to be paid in cash.

Speaker Change: Our diluted shares would need to be increased for any incremental shares associated with the conversion option once our stock price exceeds $9 54 per share.

Speaker Change: An illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with the conversion option going forward.

Brian Edmondson: That's all I have.

Speaker Change: That's all I have I'll now turn the call over to Jarrett.

Jared: I will now turn the call over to Jared.

Jared: Thank you, Brian, and good morning, everyone. In the second quarter, WisdomTree had another strong quarter of AUM growth and expanding operating margins, all while continuing to ramp up our efforts and tokenized assets and blockchain enabled finance, which we expect will open up new revenue opportunities for us in the coming years. In the quarter, we generated 340 million of net inflows, but the underlying trends were even more impressive. To start, we experienced meaningful flows into our more strategic product lineup in the US and into our usage business in Europe, where we have achieved 11% annualized organic growth this year.

Jarrett: Thank you, Bryan, and good morning, everyone. In the second quarter, WisdomTree had another strong quarter of AUM growth and expanding operating margins, all while continuing to ramp up our efforts in tokenized assets and blockchain-enabled finance, which we expect will open up new revenue opportunities for us in the coming year. In the quarter, we generated $340 million of net inflows, but the underlying trends were even more impressive. To start, we experienced meaningful flows into our more strategic product line-up in the U.S. and into our UCETS business in Europe, where we have achieved 11% annualized organic growth this year.

Thank you, Brian and good morning, everyone in.

Jarrett: In the second quarter Wisdom tree had another strong quarter of AUM growth and expanding operating margins all while continuing to ramp up our efforts in token ice to assets and blockchain enabled finance, which we expect will open up new revenue opportunities for us in the coming years.

Jarrett: In the quarter, we generated 340 million of net inflows, but the underlying trends were even more impressive to start we experienced meaningful flows into our more strategic product line up in the U S and into our UCITS business in Europe, where we are.

Jarrett: Achieved 11% annualized organic growth this year.

Jared: Further, over the past several quarters, net inflows have come into higher fee funds, which has provided a boost to our blended fee rate, which now stands at 37 basis points, expanding from 36 basis points last year. Finally, while we continue to see growth across current customers as measured by average funds held per customer and total AUM per customer, we're also seeing healthy growth in new customers, which gives us confidence in continued growth going forward. Models also continue to be a steady growth driver. As a reminder, our approach is to grow the number of advisors who have access to our models, while also further penetrating this accessible market and growing the number of advisors actively using WisdomTree models.

Jarrett: Furthermore, over the past several quarters, net inflows have come into higher-fee funds, which has provided a boost to our blended fee rate, which now stands at 37 basis points, expanding from 36 basis points last year. Finally, while we continue to see growth across current customers, as measured by average funds held per customer and total AUM per customer, we're also seeing healthy growth in new customers, which gives us confidence in continued growth going forward.

Jarrett: Further over the past several quarters net inflows have come in Q higher fee funds, which has provided a boost to our blended fee rate, which now stands at 37 basis points expanding from 36 basis points last year.

Jarrett: Finally, while we continue to see growth across current customers as measured by average funds held per customer and total a U M per customer. We're also seeing healthy growth in new customers, which gives us confidence in continued growth going forward.

Jarrett: Models also continue to be a steady growth driver. As a reminder, our approach is to grow the number of advisors who have access to our models, while also further penetrating this accessible market and growing the number of advisors actively using WisdomTree models. Last quarter, I mentioned that our accessible market stood at 70,000 advisors and that we expected it to grow to about 80,000 advisors by year end. I'm happy to report that we now have new partnerships in hand, which will take our accessible market to over 85,000 advisors and nearly 18 trillion in assets by year end.

Jarrett: Models also continue to be a steady growth driver as a reminder, our approach is to grow the number of advisers, who have access to our models.

Jarrett: While also further penetrating the accessible market and growing the number of advisors actively using wisdom tree models.

Jared: Last quarter, I mentioned that our accessible market stood at 70,000 advisors, and that we expected it to grow to about 80,000 advisors by year end. I'm happy to report that we now have new partnerships in hand, which will take our accessible market to over 85,000 advisors and nearly 18 trillion of assets by year end. and further the stability and predictability of our pipeline continues to hold as we continue to add new advisor model users at our expected pace of approximately 250 per quarter, while our model AUM continues to grow at a rate of 10 to 12 percent of USETF flows.

Jarrett: Last quarter, I mentioned that our accessible market stood at 70000 advisors and that we expected to grow to about 80000 advisors by year end I'm happy to report that we now have new partnerships in hand, which will take our accessible market to over 80.

Jarrett: <unk> 5000 advisors and nearly 18 trillion of assets by year end.

Jarrett: Further, the stability and predictability of our pipeline continue to hold as we continue to add new advisor model users at our expected pace of approximately 250 per quarter, while our model AUM continues to grow at a rate of 10 to 12 percent of U.S. ETF flows. We're also ramping up our portfolio consultation service, where we assist advisors who build their own client portfolios and are looking for help in improving risk-adjusted returns.

Jarrett: Further the stability and predictability of our pipeline continues to hold as we continue to add new advisor model users at our expected pace of approximately 250 per quarter, while our model.

Jarrett: <unk> continues to grow at a rate of 10% to 12% of U S. E. T F flows.

Jarrett: We're also ramping up our portfolio consultation service, where we assist advisors, who build their own client portfolios and are looking for help in improving risk. Adjusted returns. This is another tool in our portfolio of solutions offering that helps to generate sticky flows in <unk>.

Jared: We're also building their own client portfolios and are looking for help in improving risk-adjusted returns. This is another tool in our portfolio solutions offering that helps to generate sticky flows and assets that are stackable on top of our already strong organic growth profile. Here, our models team analyzes each portfolio and recommends enhancements. We have recently improved our review process, greatly increasing our capacity and efficiency, reducing turnaround times from a couple of weeks to a couple of days, allowing us to service a greater number of advisors and drive further net inflows. Speaking of efficiency, it was another strong quarter of margin expansion, achieved by expanding our other revenue streams on top of disciplined expense management.

Jarrett: This is another tool in our portfolio solutions offering that helps to generate sticky flows and assets that are stackable on top of our already strong organic growth profile. Here, our models team analyzes each portfolio and recommends enhanced, We have recently improved our review process, greatly increasing our capacity and efficiency, reducing turnaround times from a couple of weeks to a couple of days, allowing us to service a greater number of advisors and drive further net inflows.

Jarrett: Assets that are stackable on top of our already strong organic growth profile here.

Jarrett: Here our models team analyzes each portfolio and recommends enhancements we have recently improved our review process greatly increasing our capacity and efficiency, reducing turnaround times from a couple of weeks to a couple of days, allowing us to service.

Jarrett: A greater number of advisors and drive further net inflows.

Jarrett: Speaking of efficiency... it was another strong quarter of margin expansion achieved by expanding our other revenue streams on top of disciplined expense management. On the revenue side, we've been proactive with our European counterparties, and we've been able to capture additional asset and transaction-based revenue streams that we previously did not share in. As Bryan mentioned, this quarter's approximate $8 million run rate seems sustainable going forward each quarter, which is roughly double the 2023 run rate and almost five times the 2022 and earlier year run rate.

Jarrett: Speaking of efficiency it was.

Jarrett: It's another strong quarter of margin expansion.

Speaker Change: <unk> by expanding our other revenue streams on top of disciplined expense management and the revenue side, we've been proactive with our European Counterparties and we've been able to capture additional asset and transaction based revenue streams that we previously did not sharing.

Jared: On the revenue side, we've been proactive with our European counterparties, and we've been able to capture additional asset and transaction-based revenue streams that we previously did not share in. As Bryan mentioned, this quarter's approximate $8 million run rate seems sustainable going forward each quarter, which is roughly double the 2023 run rate and almost five times the 2022 and earlier year run rates. We also showcased margin expansion once again in the quarter, with our margins up 570 basis points from last quarter and up over 800 basis points year over year, delivering Q2 operating margins of 35.3%.

Speaker Change: As Brian mentioned this quarters approximate $8 million run rate seem sustainable going forward each quarter, which is roughly double the 2023 run rate and almost five times, the 2022 and earlier year run rates we.

Jarrett: We also showcased margin expansion once again in the quarter, with our margins up 570 basis points from last quarter and up over 800 basis points year over year, delivering Q2 operating margins of 35.3%. This margin expansion is a combination of discipline, expense management, but also a function of scale. Based on our 50% plus incremental margin, we see a meaningful opportunity for further margin expansion in the years to come. In conclusion, we're generating strong revenue growth from flows from the market and from opening up new revenue streams.

Brian: We also showcased margin expansion once again in the quarter with our margins up 570 basis points from last quarter and up over 800 basis points year over year, delivering Q2 operating margins of 35.3%.

Jared: This margin expansion is a combination of disciplined expense management, but also a function of scale. Based on our 50% plus incremental margin, we see a meaningful opportunity for further margin expansion in the years to come.

Speaker Change: This margin expansion is a combination of disciplined expense management, but also a function of scale based on our 50% plus incremental margin, we see a meaningful opportunity for further margin expansion in the years to come.

Jared: In conclusion, we're generating strong revenue growth from flows, from market, and from opening up new revenue streams. With well-managed expenses and scale benefits, we are expanding our operating margins, and all of that translates into an accelerated pace of earnings growth and strong returns for shareholders.

Jarrett: With well-managed expenses and scale benefits, we are expanding our operating margin. And all of that translates into an accelerated pace of earnings growth and strong returns for shareholders. And with that, I will now turn it over to Jono.

Speaker Change: In conclusion, we're generating strong revenue growth from flows from market and from opening up new revenue streams with well managed expenses and scale benefits. We are expanding our operating margins and all of that translates into an accelerated pace of earnings growth.

Speaker Change: And strong returns for shareholders and with that I will now turn it over to Jonathan.

Johnna: With that, I will now turn it over to Johnna.

Jono: Thank you, Jarrett, and hello everyone. Today I will be brief.

Johnna: Thank you, Jared, and hello everyone. Today, I will be brief. WisdomTree continues to thrive with record assets under management. Our efficiency once again on display as margins have expanded by over 800 basis points from last year, achieving over a 35% operating margin for the second quarter. Erning's per share was up 78% year over year and 33% sequentially. Momentum remains strong.

Jonathan: Thank you Jarrett and Hello, everyone.

Jonathan: Today I will be brief.

Jono: WisdomTree continues to thrive with record assets under management. Our efficiency is once again on display as margins have expanded by over 800 basis points from last year, achieving over a 35% operating margin for the second quarter. Earnings per share was up 78% year over year and 33% sequentially.

Jonathan: Wisdom tree continues to thrive with record assets under management, our efficiency once again on display as margins have expanded by over 800 basis points from last year, achieving over a 35% operating margin for the second quarter.

Speaker Change: Earnings per share was up 78% year over year and 33% sequentially.

Jono: Momentum remains strong. As I reflect on both our prior accomplishments and the opportunities ahead of us, with only 300 employees worldwide, I'm not only proud of how much WisdomTree has accomplished but that we have achieved success so efficiently and ahead of the curve. WisdomTree continually strives to be forward-looking in our mission.

Speaker Change: Momentum remains strong.

Johnna: As I reflect on both our prior accomplishments and the opportunities ahead of us with only 300 employees worldwide, I'm not only proud of how much WisdomTree has accomplished, but that we have achieved success so efficiently and ahead of the curve. WisdomTree continually strives to be forward-looking in our mission, and those efforts are bearing fruit today while also setting the company up for success in the future. Nearly five years ago, we launched our first crypto ETPs in Europe and began strategically thinking about opportunities in both tokenization and blockchain-enabled finance. Although the lengthy regulatory process has taken longer than we initially anticipated, my optimism and confidence about the opportunity ahead is greater today than when we first began the journey.

As I reflect on both our prior accomplishments.

Speaker Change: And the opportunities ahead of us.

Speaker Change: With only 300 employees worldwide I'm.

Speaker Change: I'm not only proud of how much wisdom tree is accomplished.

Speaker Change: But that we have achieved success, so efficiently and ahead of the curve.

Speaker Change: Wisdom tree continually strives to be forward looking in our mission.

Jono: And those efforts are bearing fruit today, while also setting the company up for success in the future. Nearly five years ago, we launched our first crypto ETPs in Europe and began strategically thinking about opportunities in both tokenization and blockchain-enabled finance. Although the lengthy regulatory process has taken longer than we initially anticipated, my optimism and confidence about the opportunity ahead are greater today than when we first began the journey. As we've mentioned on prior calls, we are pursuing both business-to-business and direct-to-consumer efforts on the B2B side.

Speaker Change: And those efforts are bearing fruit today.

Speaker Change: While also setting the company up for success in the future.

Speaker Change: Nearly five years ago, we launched our first crypto ETP is in Europe and began strategically thinking about opportunities in both token is Asian and blockchain enabled finance.

Speaker Change: Although the lengthy regulatory process.

Speaker Change: Taken longer than we initially anticipated my optimism and confidence about the opportunity ahead is.

Speaker Change: Greater today than when we first began the journey.

Johnna: As we've mentioned on prior calls, we are pursuing both business-to-business and direct-to-consumer efforts. On the B2B side, we expect to provide a broader update next quarter when our institutional platform is expected to go live. On WisdomTree Prime, our directed consumer effort, we are now live in 44 states and available to nearly 80% of the U.S. population with more to come in the near future. Early marketing campaigns are proving key learnings, allowing us to tighten our client's focus and allowing us to test newer approaches like reward offers and in-app marketing campaigns. With the marketing campaigns really in the early stages and the institutional platform launching in the next few months, it is still too early to share any new digital asset metrics.

Speaker Change: As we've mentioned on prior calls we are pursuing both business to business and direct to consumer efforts.

Speaker Change: On the B to B side.

Jono: We expect to provide a broader update next quarter when our institutional platform is expected to go live on WisdomTree Prime, our direct-to-consumer effort. We are now live in 44 states and available to nearly 80% of the U.S. population, with more to come in the near future.

Speaker Change: We expect to provide a broader update next quarter when our institutional platform is expected to go live.

Speaker Change: Wisdom tree crime or direct to consumer effort.

Speaker Change: We are now live in 44 states and available to nearly 80% of the U S population.

Speaker Change: With more to come in the near future.

Jono: Early marketing campaigns are proving key learnings, allowing us to tighten our client segment focus and allowing us to test newer approaches like reward offers and in-app marketing campaigns. However, with the marketing campaigns really in the early stages and the institutional platform launching in the next few months, it is still too early to share any new digital asset metrics. However, we are committed to beginning sharing more metrics with you early next year in line with the timing of our 2025 guidance, as I continue to mention in recent quarters.

Speaker Change: Early marketing campaigns are proving he learnings.

Speaker Change: Allowing us to tighten our client segment focus and allowing us to test newer approaches like reward offers and in App marketing campaigns.

Speaker Change: With the marketing campaigns really in the early stages and the institutional platform launching in the next few months. It is still too early to share any new digital asset metrics. However, we are committed to begin sharing more metrics with you early.

Johnna: However, we are committed to begin sharing more metrics with you early next year in line with the timing of our 2025 guidance. As I continue to mention in recent quarters, it's a very exciting time for WisdomTree. We have record assets under management, a meaningful margin expansion opportunity, and leverage to secular shifts in ETFs and tokenization.

Speaker Change: Next year in line with the timing of our 2025 guidance.

Speaker Change: As I continue to mention in recent quarters.

Jono: It's a very exciting time for WisdomTree. We have record assets under management, a meaningful margin expansion opportunity, and leverage to secular shifts in ETFs and tokenization. Thank you. Operator, would you please turn the call over to our Head of Investor Relations, Jeremy Campbell, and we will take some questions from our retail shareholders?

Speaker Change: It's a very exciting time for wisdom tree, we had record assets under management.

Meaningful margin expansion opportunity and leverage the secular shifts in Etfs and token is Asia.

Johnna: Thank you.

Speaker Change: Thank you.

Jeremy Campbell: Operator, would you please turn the call over to our head of investor relations, Jeremy Campbell, and we will take some questions from our retail shareholders.

Jeremy Edward Campbell: Operator would you please turn the call over to our head of Investor Relations, Jeremy Campbell, and we will take some questions from our retail shareholders.

Jeremy Campbell: Hey, thank you, John O. And good morning, everybody. Per usual, we will take a couple questions here from retail shareholders, and then I take it over to you guys to ask some questions of management.

Jeremy Edward Campbell: Hey, thank you, Jono. And good morning, everybody. Per usual, we will take a couple of questions here from retail shareholders, and then we will turn it over to you guys to ask some questions of management. So, first one, Jono, I'm going to direct this to you is, what is the company's five-year plan?

Jeremy Edward Campbell: Hey, Thank you John and good morning, everybody.

Speaker Change: Per usual, we will take a couple of questions here from retail shareholders, none I'll kick it over to you guys to ask.

Speaker Change: I have some questions for the management. So first one John I'm going to direct this to you.

Jeremy Campbell: So first one, John O.

Johnna: I'm going to direct it to you: is what is the company's five-year plan? Thank you, Jeremy. You know, WisdomTree is blessed in that we compete in many of the most exciting areas of asset management. And by that, I mean globally TFs, models and solutions, plus tokenization and blockchain-enabled finance. When you try looking out five years, it's always about getting the prioritization of investments, right? That you're able to grow today and be in a position to grow tomorrow or five years out. If you look back five years, we did get our prioritization of investments right? And we executed.

Speaker Change: And what is the company's five year plan.

Jeremy: Thank you Jeremy.

Jono: WisdomTree is blessed in that we compete in many of the most exciting areas of asset management. And by that, I mean Global ETA Models and Solutions, plus tokenization and blockchain-enabled Kinesis.

Speaker Change: Wisdom tree is blessed in that we compete in many of the most exciting areas of asset management.

Speaker Change: That I mean, global Etfs models and solutions.

Speaker Change: Plus coke innovation in blockchain enabled finesse.

Jono: When you try looking out five years, it's always about getting the prioritization of investments right. That you're able to grow today and be in a position to grow tomorrow or five years down the road. If you look back five years, we did get our prioritization of investments right, and we executed. This quarter's result proves that. This quarter also proves how well our business model scales. So if you're looking out five

Speaker Change: When you try looking out five years, it's always about getting the prioritization.

Speaker Change: The investments right.

Speaker Change: That you were able to grow today and be in a position to grow tomorrow. We're.

Speaker Change: We're five years out.

Speaker Change: If you look back five years, we did get our prioritization of investments right and we executed this quarter's results groups that this quarter also proves how well our business model scales.

Johnna: This quarter's results proves that this quarter also proves how well our business model scales. So if you're looking out five years from now, it's continued execution against recurrence strategic initiatives, continued expansion of the global ETF lineup, grow our global AUM of ETFs through stellar performance, what we call modern alpha. And, you know, it's working and it's driving results in our proprietary funds. It's also having our team are fantastic sales, marketing, and research teams work together to drive growth. Very important to us is that we continue to grow our usage lineup and our AUM in Europe just generally.

Speaker Change: So if you're looking out five years from now.

Jono: It's continued execution against our current strategic initiative. Continued expansion of the global ETF lineup, and growing our global AUM of ETFs through stellar performance, what we call modern alpha, and you know, it's working, and it's driving results in our proprietary fund. It's also having our team, our fantastic sales, marketing, and research teams work together to drive growth. Very important to us is that we continue to grow our USITS lineup and our AUM in Europe, just generally.

Speaker Change: It's continued execution against our current strategic initiatives continued expansion of the global ETF lineup.

Speaker Change: ROE our global AUM of Etfs grew stellar performance, what we called modern Alpha and you know, it's working and it's driving results are.

Speaker Change: In our proprietary funds.

Speaker Change: It's also having our team our fantastic sales marketing and research teams work together to drive growth.

Speaker Change: Very important to US is that we continue to grow our used its lineup anarchy women in Europe. Just generally you know UCITS have grown from nearly zero a U M. Five years ago to nearly 7 billion today, we're very very bullish on what the next five years and use it for me.

Johnna: You know, usage have grown from nearly zero away you went five years ago to nearly seven billion today. We're very, very bullish on what the next five years and usage will be. And we need to continue to expand our portfolio solutions franchise to a much larger percentage of our overall AUM, leading to even greater stability of inflows as well as just greater stability of AUM. You know, and we execute against our early leadership position to drive a footprint or a sizeable footprint in tokenized assets and blockchain enabled finance. It's a priority that we grow that business line's profitably and that it accelerates our overall growth rate.

Jono: You know, USITS has grown from nearly zero AUM five years ago to nearly 7 billion today. We're very, very bullish on what the next five years in USITS will be like. And we need to continue to expand our portfolio solutions franchise to a much larger percentage of our overall AUF, leading to even greater stability of inflows, as well as just greater stability of AUF. You know, and we execute on, for our early leadership position, to drive a footprint or a sizable footprint in tokenized assets and blockchain-enabled finance.

Speaker Change: And we need to continue.

Speaker Change: To expand our portfolio solutions franchise to a much larger percentage of our overall AUR, leading to even greater stability of inflows as well as just greater stability in the U S.

Speaker Change: You know when we execute against our early leadership position.

Speaker Change: The drive.

Speaker Change: Our footprint are a sizable footprint in cocainize assets blocked in any abled finance, it's a priority that we grow that business line profitably and that it accelerates our overall growth rates.

Jono: It's a priority that we grow that business line profitably, and that it accelerates our overall growth, you know, and as always, we need to do all of that with a very disciplined approach to expense. But if we continue to do all of that, we'll see much higher AUM. This will translate into much higher margins that are materially higher than where we are today and drive accelerated growth in earnings per share, which should hopefully continue to lead to a meaningful appreciation in our stock like we've seen in the last four and five years. I think that answers the question, Chair.

Johnna: You know, and as always, we need to do all of that in a very disciplined approach to expenses. But if we continue to do all of that, we'll see much higher AUM. It will translate into much higher margins that are materially higher than where we are today and drive accelerated growth in earnings per share, which should completely continue to lead to a meaningful appreciation in our stock like we've seen in the last, you know, four or five years. I think that answers the question, Jeremy.

Speaker Change: And.

Jono: Thanks, Jonah. Well, we'll cut it there on that one.

Speaker Change: As always.

Speaker Change: We need to do all of that in a very disciplined approach to expenses.

But if we continue to do all of that we will see much higher a web it will translate into much higher margins that are materially higher than where we are today and drive accelerated growth in earnings per share, which should hopefully continue to lead to a meaningful appreciation in our stock likely.

Speaker Change: We've seen in the last you know.

Speaker Change: One five years.

Speaker Change: I think that answers the question Jeremy.

Jeremy Campbell: Thanks, John. We'll cut it there on that one.

Jeremy: Great. Thanks, Jonathan.

Operator: So operator, please feel free to open up the lines for questions from the analysts. Oh, great. We will now be conducting a question and answer session.

Speaker Change: We will cut it there on that one so operator, please feel free to open up the lines for questions from the analysts.

Operator: So operator, please feel free to open up the lines to questions from the analyst. Oh, great. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. In confirmation, till we indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Thank you.

Oh great.

Operator: We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad, and Confirmation Toll will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star 2.

Speaker Change: He will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

Speaker Change: And confirmation tone will indicate your line is in the question queue.

Speaker Change: You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Operator: One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Mike Grondahl with Northland Securities. Please proceed with your question.

Speaker Change: One moment, please while we poll for questions.

Speaker Change: Thank you.

Mike Grondahl: Our first question comes from the line of Mike Grondahl with Northland Securities. Please proceed with your questions.

Speaker Change: Our first question comes from the line of Mike Grondahl with Northland Securities. Please proceed with your question.

Mike Grondahl: Hey guys, thanks, and congratulations on a nice quarter. On the models and their accessibility increasing to 85,000 advisors on year end, what was the driver of that? Was that a couple of wins?

Mike Grondahl: Hey guys, thanks and congratulations on a nice quarter. On the models and their accessibility increasing to 85,000 advisors at year-end, what was the driver of that? Was that just a couple wins?

Mike Grondahl: Hey, guys, thanks, and congratulations on a nice quarter.

Speaker Change: On the models and their accessibility increasing to 85000 advisors on year end.

Mike Grondahl: And then secondly, could you just talk about how the penetration of those accessible advisors is going?

Mike Grondahl: What was the driver of that was that a couple of wins and then secondly.

Mike Grondahl: And then secondly, could you just talk about how penetration of those accessible advisors is going?

Speaker Change: Could you just talk about how penetration of those accessible advisors is going.

Jared: Jared, what do you start?

Jarrett: Jarrett, why don't you start?

Mike Grondahl: Jarrett why don't you start.

Jared: Sure. Yeah, you pretty much put your finger on it on growing the accessible market. That's a couple of additional wins on a couple of additional major platforms. And so, you know, we've anticipated a number of wins, but a couple of them came sooner than even we had planned. So great news there. Your next part of your question is really also very important, and where a big part of our focus is, is every model win is really a two-part project. One, you've got to win with the organization and get on the platform. And then number two, once you're on the platform, it's sort of hand-to-hand combat, and you've got to then work on the individual advisors.

Jarrett: Sure. Yeah, you pretty much put your finger on it, on growing the accessible market. That's a couple of additional wins on a couple of additional major platforms. And so, you know, we've anticipated a number of wins, but a couple of them came sooner than we had planned. So, great news there.

Mike Grondahl: Sure.

Jarrett: Yeah, you've pretty much put your finger on it and growing the accessible market. That's a couple of additional wins on a couple of additional major platforms.

Jarrett: And so you know we've anticipated a number of wins, but a couple of them came sooner.

Jarrett: Then even we had planned so great news there.

Jarrett: Your next part of your question is really very important and where a big part of our focus is, is that every model win is really a two-part project. One, you've got to win with the organization and get on the platform. And then, number two, once you're on the platform, it's sort of hand-to-hand combat, and you've got to then work with the individual advisors. So that's where we are now. That's where the focus is.

Jarrett: Your next part of your question is really also very important and we're a big part of our focus is is every model. When he is really is really a two part project one you've got a win with the organization and get on the platform and then number two once you're on the platform.

Speaker Change: <unk> sort of hand to hand combat and you've got to then work on the individual advisors.

Jared: So that's where we are now. That's where the focus is, and that's going quite well; also, where the pace of bringing on new advisors each quarter continues as we expected. But I will say, you know, that's an area of increased focus. Again, in that two-part battle, early the majority of focus was, let's get on more platforms. Let's have more advisors have access to our models. We're now shipping; the focus really to let's start penetrating even quicker than we are today. But both sides are going quite well. And I'll just add that our pipeline is as strong as it's ever been.

Speaker Change: That's where we are now that's where the focus is and that's that's going quite well also.

Jarrett: And that's going quite well also, where the pace of bringing on new advisors each quarter continues as we expected. But I will say, you know, that's an area of increased focus. Again, in that two-part battle, the early majority of the focus was, "Let's get on more platforms. Let's have more advisors have access to our models." We're now shifting the focus really to let's start penetrating even quicker than we are today. But both sides are going quite well.

Speaker Change: The pace of bringing on new advisors each corner continues as we expected.

But I will say you know that's an area of increased focus again in that two part nano.

Speaker Change: Really the majority of focus was let's get on more platforms, let's have more advisors and access to our models.

Speaker Change: We're now shifting our focus really too late to start penetrating even quicker than we are today.

Speaker Change: Size are going quite well.

Jarrett: And I'll just add that our pipeline is as strong as it's ever been. I don't think we've ever been as confident about the pipeline of penetration. So thanks for the question, Mike.

Speaker Change: And I'll just add that our pipeline is as strong as it's ever been but I don't think we've ever been as confident about the pipeline of penetration.

Jared: I don't think we've ever been as confident about the pipeline of penetration. So thanks for the question.

Thanks for the question.

Jarrett: And I just add one other quick thing when you look at it, you know, 85,000 advisors, that's about 28% of the advisors in the U.S., so, you know, there's still room to go there, but that 28% controls 18 trillion of advised assets in the country, which is two-thirds of the advised assets. So we've done a great job of penetrating the accessible market, and now the focus, again, really shifts more to...

Jared: And I just add one other quick thing: when you look at it, you know, 85,000 advisors. That's about 28% of the advisors in the US. So, you know, there's still room to go there. But that 28% controls 18 trillion of advised assets in the country, which is two thirds of the advised assets. So we've done a great job of penetrating the accessible market. And now the focus, again, really shifts more to penetration.

Speaker Change: Yeah, and I'd just add one other quick thing when you look at it you know 85000 advisors.

It's about 28%.

Speaker Change: The advisors in the in the U S. So.

Speaker Change: There's still room to go there, but that 28% controls 18 trillion of advised assets in the country, which is two thirds.

Yeah. That's it so we've done a great job of penetrating the accessible market and now the focus again really shifts more to penetration.

Mike Grondahl: Great. Hey, thanks guys.

Mike Grondahl: Great, thanks, guys. Thank you.

Speaker Change: Great Hey, thanks, guys.

Speaker Change: Yeah.

Speaker Change: Thank you.

Keith Housum: Our next question comes to the line of Keith Housum with North Coast Research. Please proceed with your question.

Keith Michael Housum: Our next question comes from the line of Keith Housum with North Coast Research. Please proceed with your question.

Speaker Change: Our next question comes from the line of Keith Hassan with Northcoast Research. Please proceed with your question.

Keith Michael Housum: Great, I appreciate it. Hey guys, just wanted to challenge you guys a little bit on the European fund outflows. It looks like commodity and currency funds have seen outflows for 15 of the past 17 quarters. It seems like there is something going on there that, you know, I don't know if it's broken or a little bit more than a tactical play. But can you perhaps further the cover about what you guys are doing to perhaps reverse that trend? (inaudible)

Keith Housum: Great, appreciate it. Hey, guys, just kind of challenge you guys a little bit on the European fund outflows. It looks like the commodity and currency funds have seen outflows for 15 of the past 17 quarters.

Keith Michael Housum: Great I appreciate it hey, guys just kind of challenge you guys a little bit on the European fund outflows it looks like a commodity and currency funds have seen outflows for 15 of the past 17 quarters. It seems like there is something going on there that you know I don't know, if it's broken or a little bit more of a tactical play, but perhaps a front of the color about what you guys are doing.

Keith Housum: It seems like there is something going on there that, you know, I don't know if it's broken or a little more than a tactical play. But can you perhaps further the color about what you guys are doing to perhaps reverse that trend?

Speaker Change: Perhaps reverse that trend.

Jono: I'm just going to start. And then, Jarrett, maybe you could jump in.

Speaker Change: Hum.

Johnna: I'm going to just start, and then, Jared, maybe you could jump in. You know, when you really look at our European footprint, it's got an extraordinary overweight to commodities that when, and we knew that with the acquisition of ETF Securities five years ago, that our number one purpose would, post acquisition, other than integrating it and cutting costs and all that, was to diversify revenue away from just gold and broad commodities. And we've been doing it. It's just that it's still much larger than the rest of the sweep of becoming smaller.

Speaker Change: I'm going to just start and then Jack maybe you can jump in.

Jono: When you really look at our European footprint, it's got an extraordinary overweight to commodities. We knew that with the acquisition of ETF securities five years ago, that our number one purpose post-acquisition, other than integrating it and cutting costs and all that, was to diversify revenue away from just gold and broad commodities. And we have been doing it.

Jack: You know when you really look at our European footprint, It's got an extraordinary overweight to commodities that where and.

Jack: And we knew that with the acquisition of ETF Securities five years ago that our number one purpose would post acquisition other than integrating it and cutting cost in all of that was to diversify revenue away from just gold and broad commodities and we've been doing it it's just that it's Steve.

Jono: It's just that it's still much larger than the rest of the suite, but it's becoming smaller. That's all the insights that I have on it. Jared, is there more that you'd like to add? Garrett, if you are, you're on mute.

Jack: Bill.

Steve: Much larger than the rest of the suite, but becoming smaller.

Johnna: So that's all I, you know, the insight that I have on it.

Jack: Hum.

Jack: That's all.

Jack: The insight that I have on Jarrett is there more that you'd like to add.

Jared: Jared, is there more that you'd like to ask? Jared, if you are, you're on mute.

Jack: Garrett if you are you on mute.

Jared: Yeah, thanks. John O's on mute. Yeah, just just piling on, really two things. But first is the sort of tactical nature of the commodity sweep that John O mentioned and the way that people that invest in commodities use them. And when you see generally pricing going up, clients are selling into it; and when prices are coming down, clients are buying into that. And that's the sort of tactical nature. So that is the nature of the of a large part of the sweep.

Jarrett: Yeah, thanks, Jono; I was on mute. Yeah, just piling on, on really two things. But first is the sort of tactical nature of the commodity suite that Jono mentioned, and the way that people that invest in commodities use them. And when you see prices generally going up, clients are selling into it. And when prices are coming down, clients are buying into that. And that's that. That's the sort of tactical nature.

Garrett: Yeah. Thanks, Jon I was on mute yeah, just just piling on.

Garrett: Really two things.

Garrett: But first is the sort of tactical nature of of the commodity suite that John mentioned.

Speaker Change: And the way that people that invest in commodities used them.

Jarrett: So that is the nature of a large part of the suite. You also have to look at the usage business, which is separate from that. And that's been an area of focus for us that, as Jono has already mentioned, grew from zero several years ago to nearly 7 billion today. And then, finally, a big part of what we talked about in the prepared comments was on the other revenue side.

Speaker Change: And when you see generally pricing going up.

Speaker Change: Clients are selling intuit and when prices are coming down our clients are buying into that and that's the sort of tactical nature. So that is the nature of the of the large part of the suite. You also have to look at the UCITS business, which is separate from that and that's been an area of folk.

Jared: You also have to look at the usage business, which is separate from that. And that's been an area of focus for us that, as John O has already mentioned, you know, grew from zero several years ago and nearly seven billion today. And then finally, if you look at the big part of what we talked about in the prepared comments, it was on the other revenue side. So the overall revenue capture is actually very healthy. And actually overall, you put that all together, it's the opposite of broken. Europe is a high contributor to our overall results and is going fantastically well.

Speaker Change: For us it is John who has already mentioned.

Speaker Change: Grew from zero several years ago to nearly $7 billion today and then finally, if you look at the big part of what we talked about in the prepared comments was on the other revenue side.

Jarrett: So the overall revenue capture is actually very healthy. And actually, overall, you put that all together, it's the opposite of broken. Europe is a high contributor to our overall results, and it is going fantastically well.

Speaker Change: So the overall revenue capture is is actually very healthy and actually overall you put that all together.

Speaker Change: It's the opposite of broke in Europe is a high contributor to our overall results and.

Speaker Change: Is he is going fantastically well.

Keith Michael Housum: Thanks. And that other income is a great surprise for the quarter; I know investors appreciate that. And I can switch gears with a little follow-up question, actually going back to the modeling. You guys are making great progress in the U.S. with the, you know, advisors.

Keith Housum: Thanks. And that other income is a great surprise for the quarter. I know investors appreciate that.

Speaker Change: Great. Thanks, and in that other income as a great surprise for the quarter I know investors appreciate that.

Keith Housum: And I can switch gears, and you with a little follow-up question, and actually going back to the modeling. You guys are making great progress in the US with the advisors. How about with Europe? Is Europe an opportunity down the road, or is that also where you guys are working at right now as well? Get it.

Speaker Change: And I can switch gears and go with a little follow up question actually going back to the modeling.

Speaker Change: You guys are making great progress in the U S with the advisors, how about with Europe as Europe, an opportunity down the road or is that also where you guys are working out right now as well.

Keith Michael Housum: How about with Europe? Is Europe an opportunity down the road?

Jarrett: Is Europe an opportunity down the road, or is that also where you guys are working right now as well?

Speaker Change: Got it.

Jarrett: Yeah, yes, it's up, and again, two quick things here. It is an opportunity that we're looking at. The nature of the market's a little different, a little more fragmented, a little different in terms of servicing advisors. But nonetheless, it is an opportunity. And in the quarter, we actually announced a deal in Europe where we're now providing our models to a platform partner. And, you know, that's a first over there. And it's just an example of yes, there is more opportunity internationally, and that is part of the next frontier for us on the model.

Speaker Change: Yeah.

Speaker Change: Yes, it's it's again two quick things here it is an opportunity.

Jared: Yes, it's up in, again, two quick things here. It is an opportunity that we're looking at. The nature of the market's a little different, a little more fragmented, a little different in terms of servicing advisors.

Speaker Change: We're looking at the nature of the markets a little different a little more fragmented a little different in terms of servicing advisors.

Keith Michael Housum: Great. Thank you. I appreciate it.

Jared: But nonetheless, it is an opportunity. And in the quarter, we actually announced a deal in Europe, where we're now providing our models on a platform partner. And, you know, that's the first over there. And it's just an example of yes, there is more opportunity internationally, and that is part of the next frontier for us on models.

Speaker Change: But nonetheless, it is an opportunity and in the quarter, we actually announced a deal in Europe, We're now providing our models on our platform.

Speaker Change: <unk> partner.

Speaker Change: That's the first over there.

And it's just an example of yes, there is more opportunity internationally and that is part of the next frontier for us on models.

Keith Housum: Great. Thank you.

Operator: Great. Thank you.

Operator: Thank you. Our next question comes from the line of George Sutton with Craig Hallam. Please proceed with your question.

Keith Housum: Appreciate it. Thank you.

Speaker Change: Great. Thank you I appreciate it.

Speaker Change: Thank you.

George Sutton: Our next question comes from the line of George Sutton with Craig Callum. Please proceed with your question.

Speaker Change: Our next question comes from the line of George Sutton with Craig Hallum. Please proceed with your question.

George Sutton: Hey, good morning, guys. Logan on for George was actually down at the Bitcoin conference in Nashville right now. And kind of piggybacking off that first question that was asked relative to the models. One of the things that we've kind of been taken away from that conference is that the Bitcoin ETFs could be making their way into some of those kind of the mega shops could be making their way into their models in the next six months. I'm just wondering if you guys are feeling that same demand or kind of how you see that plan out?

George Sutton: Hey, good morning, guys. Logan on for George is actually down at the Bitcoin conference in Nashville right now.

Speaker Change: Hey, Good morning, guys Logan on for George was actually down at the Cowen Conference in Nashville, right now.

Speaker Change: And kind of piggybacking off that first question that was asked relative to the models one of the things that.

George Sutton: And kind of piggybacking off that first question that was asked relative to the models, one of the things that we've kind of been taking away from that conference is that Bitcoin ETFs could be making their way into some of those megashops could be making their way into their models in the next six months. I'm just wondering if you guys are feeling that same demand or kind of how you see that playing out.

Speaker Change: We've kind of been taken away from that conference is that.

Speaker Change: The bitcoin Etfs could be.

Speaker Change: Their way into some of those kind of mega shops can be making their way into their models in the next six months I'm. Just wondering if you guys are feeling that same demand or kind of how you see that playing out.

Jeremy Schwartz: Jeremy, would you want to touch on that? Sure. Yeah, this is Jeremy Schwartz, our Global CEO. We have been actually running. We were first perhaps to launch a suite of plus crypto models. And so we had we've been running some models that have things like a 5% allocation to Bitcoin. And we did it from a 60 40 perspective where at that point, we thought bought when we first launched it, we thought bonds were less attractive and we did the 60 40 funding it from bonds and then we did an 80 20 model where we funded it from stocks with more risk.

Jeremy: Jeremy, would you want to touch on that? Sure. Yeah, this is Jeremy.

Speaker Change: Jeremy would you want to touch on that.

Jeremy D. Schwartz: Sure, yeah. This is Jeremy Schwartz, our Global CIO. We have actually been running, we were the first perhaps to launch a suite of plus crypto models, and so we had, we've been running some models that have things like a 5% allocation to Bitcoin, and we did it from a 60-40 perspective where, at that point, we thought bonds were less attractive, and we did the 60-40 funding it from bonds, and then we did an 80-20 model where we funded it from stocks with more risk.

Jeremy D. Schwartz: Sure. Yeah. This is Jeremy Schwartz, our global CIO, we have been actually running we were first perhaps launching a suite of plus crypto models and so we had and we'd been running some models that have things like a 5% allocation to bitcoin.

Jeremy D. Schwartz: And we did it from a 60 40 perspective, we're at that point, we thought bought when we first launched it without bonds were less attractive than when we did the 60 40 funding it from bonds and then we did an 80 20 model, where we funded it from stocks with more risk. So we've been managing these well think about it from.

Jeremy D. Schwartz: So we've been managing these, and we'll think about it from our full model suite. We've had it in, we have another model that we launched recently called our geopolitical risk-aware model where we have allocations to Bitcoin in some of those. So I'd say we're already, sort of, in a leadership way, already including these in some of our model portfolios already.

Jeremy Schwartz: So we've been managing these. We'll think about it from our full model suite. We've had it in. We have another model that we had launched recently called our geopolitical risk-aware model, where we have allocations to Bitcoin in some of those. So I'd say we're already sort of in a leadership way already, including these in some of our model portfolios already. Got it.

Jeremy D. Schwartz: Our full model suite and we've had it in our.

Speaker Change: We have another model that we have bought recently called our geopolitical risk aware model, where we have allocations to bitcoin and some of those so I'd say, we're already sort of in a leadership way already including these in some of our motto portfolios already.

George Sutton: Got it, appreciate it. And just one other, I know you've talked about kind of the prime offering and kind of slowly ramping up the marketing spend there. Is there a point at which you guys really start to pick that up? Is there something that would trigger that?

Speaker Change: Got it I appreciate it and just one other.

George Sutton: Appreciate it.

George Sutton: And just one other. I mean, you've talked about kind of the prime offering and kind of slowly ramping the marketing spend there. Is there a point at which you guys really start to pick that up? Is there something that would trigger that?

Speaker Change: You talked about kind of the prime offering and kind of slowly ramping the marketing spend there is there a point at which you guys really start to pick that up is there something that would trigger that.

Unknown Executive: Will you want to start? I think, yes, hey, it's WorldPak kind of digital assets.

Will: Will, do you want to start? Sure, you know, I think. Yes, hey, it's Will Peck.

Will you want to start.

And so I think yes.

William Bradley Peck: Sure, you know, I think... Yes, hey, it's Will Peck, head of digital assets.

Welpaid: Yes, Hey, it's well pad kind of digital assets.

William Bradley Peck: Yeah, I mean, I think as we continue to get full state coverage, you know, if you look at the map, there's a big state missing in Texas. So to continue to get full state coverage and continue to expand the kind of full product feature offering that we have in WisdomTree Prime, we'll continue to increase that marketing spend. And I think it's just continue to do it and manage it all that way. Like we mentioned in the prepared remarks, we're actually seeing great results so far, declining cost of customer acquisition, and accelerating open account growth. So continue to lead into that and grow from there.

Unknown Executive: Yeah, I mean, I think as we continue to get full state coverage, you know, if you look at the map, there's a big state missing in Texas. So to continue to get full state coverage and continue to expand kind of the full product feature offering that we have in Wisdom Free Prime, we'll continue to increase that marketing spend. And I think it's just continued to do it in the manager all that way.

Welpaid: Yeah, I mean, I think as we continue to get full state coverage. You know if you look at the map Theres, a big state missing in Texas since.

Welpaid: Continue to get full state coverage and continuing to expand kind of the full product feature offerings that we have and wisdom tree Bryan will continue to increase that marketing spend.

Speaker Change: And I think it's just continuing to do at the manager all that way like we mentioned in the prepared remarks, we're actually seeing great results. So far declining cost of customer acquisition accelerating opened account growth so continuing to lean into that and grow it from there.

Unknown Executive: Like we mentioned, the prepare the marks were actually seeing great results so far, declining cost of customer acquisition, accelerating open account growth. So continue to lead into that, and I'll go from there.

Michael Cyprys: Thank you. Our next question comes from the line of Michael Cyprys, with Morgan Stanley.

Speaker Change: Thank you.

Operator: Our next question comes from the line of Michael Cyprys with Morgan Stanley. Please proceed with your question.

Speaker Change: Our next question comes from the line of Michael Cyprus with Morgan Stanley. Please proceed with your question.

Michael Cyprys: Please proceed with your question. Hey, morning.

Michael J. Cyprys: Hey morning. This is Annalee. I'm on for Mike. Just curious, your view on strategic or inorganic growth opportunities, whether it be through an acquisition or a partnership or a JV. What are you looking at, and how much time are you guys spending here? Thanks.

Michael Cyprys: This is Anna Lee on from Mike. Just curious your view on strategic or inorganic growth opportunities, whether it be through an acquisition or a partnership or JV. What are you looking at, and how much time are you guys spending here?

Speaker Change: Hey, Good morning. This is Anthony on for Mike I'm, just curious your view on strategic or inorganic growth opportunities whether it be through.

An acquisition or a partnership or JV, what are you looking at and how much time, you guys spending here. Thanks.

Johnna: Thanks. I'll start. We're always trying to be opportunistic. We look at a lot of things. We're very, very selective, but I will say that whether it's through M&A, like what we did to build out our, you know, we made two acquisitions to build out Europe as a base. We've made investments to help us facilitate the launch of the digital asset platforms. So I think that the area's opportunities, but we say it's primary. I think for us, primary is our organic growth, and we have a very high hurdle for M&A. Our acquisitions have actually been highly accretive.

Jono: I'll start by saying we're always trying to be opportunistic. We look at a lot of things. We're very, very selective.

Speaker Change: I'll start.

Speaker Change: Yeah.

Speaker Change: We're always trying to be opportunistic we look at a lot of things, we're very very selective.

Jono: But I will say that whether it's through M&A, like what we did to build out our, you know, we made two acquisitions to build out Europe as a base. We've made investments to help us facilitate the launch of the digital asset platforms. So I think that there are opportunities, but I would say it's primary. I think for us, primary is our organic growth, and we have a very high hurdle for M&A.

Speaker Change: But I will say that.

Speaker Change: Whether it's through M&A like what we did to build out our we made two acquisitions to build out Europe as a base. We've made investments to help us facilitate the launch of the digital asset our platforms.

Speaker Change: So I think that there is opportunities, but I wouldn't say, it's primary I think Ross primary is our organic growth and we have a very high hurdle for M&A.

Speaker Change: Our acquisitions have actually been a highly accretive not so easy to accomplish.

Brian Edmondson: Not so easy to accomplish through acquisitions, but if we can find a way to really strategically position ourselves better, you know that we do take a long. We look out to where we think sort of the pup is going, and we want to always strengthen that position.

Jono: Our acquisitions have actually been highly accretive, not so easy to accomplish through acquisitions. But if we can find a way to really strategically position ourselves better, you know that we do take a long view, we look out to where we think the puck is going, and we want to always strengthen that position. So I think that answers the question. Is there anything, Jared, you might want to add?

Speaker Change: Through our acquisitions, but.

Speaker Change:

Speaker Change: We can find a way to really strategically position ourselves better you know that we do take a long we look out to where we think.

Speaker Change: The puck is going and we want to always strengthen that position.

Johnna: So I think that answers the question. Is there anything you might want to add?

Jaret: So I think that answers. The question is there anything jaret you might want to add.

Bryan: Hey, Jono, it's Bryan. I think, you know, the other things that I would just point out. You know, we've been very episodic in the recent past. If you recall, just a year ago, we bought out our gold royalty obligation. It was a highly accretive transaction for us. We bought back preferred shares from the World Gold Council that we had previously issued on favorable terms. And we've been buying back stock over the course of the past few years as well as paying down some debt. So it's not just as it relates to this on the acquisition front, but if you think through the capital management priorities as well, we just don't want you to lose sight of that.

Brian Edmondson: Hey, John, it's Brian. I think, you know, the other things that I would just point out, you know, we've been very episodic in the recent past. If you recall, just a year ago, we bought out our Gold Royalty obligation. It was a highly accretive transaction for us. We bought that preferred shares from the World Gold Council that we had previously issued on favorable terms. And we've been buying back stock over the course of the past few years as well and paying down some debt. So it's not just as it relates to just the acquisition front, but if you think through the capital management priorities as well, we just don't want you to lose sight of that.

Brian: Hey, John its Brian I think the other things that I would just point out.

Brian: We've been very episodic in the recent past if you recall just a year ago, we bought out our gold royalty obligation that was at highly accretive transaction for us.

Speaker Change: We bought back preferred shares from the World Gold Council that we had previously issued on favorable terms.

Brian: We've been buying back stock over the course of the past few years as well and paying down some debt. So it's not just as it relates to just on the acquisition front, but if you think through the capital management.

Brian: Priorities as well, we just don't want you to lose sight of that.

Bryan: Great points, Bryan; thanks for adding that.

Johnna: Great point. Brian, that's adding that.

Brian: Great quarter, Thanks, Brian Thanks for adding that.

Unknown Executive: Perfect.

Michael J. Cyprys: Perfect. And then maybe just to follow up, could you guys give us an update on new product creation and maybe talk about kind of your key areas of focus and where you see the most opportunity? Thanks.

Speaker Change: Perfect and then maybe just a follow up.

Jeremy Schwartz: And then maybe just to follow up, could you guys give us an update on a new product creation and maybe talk about kind of your key areas of focus and where you see the most opportunity. Thanks.

Speaker Change: Could you guys give us an update on our new product creation, and maybe talk about kind of your key areas of focus and where you see the most opportunity. Thanks.

Jeremy: Jeremy, would you take that? But obviously, you can only talk about it. You can't give your secrets away, but please take it, Jeremy.

Jeremy Schwartz: Jeremy, would you take that, but obviously you can only talk about, you know, you can't give your secrets away. But please take a Jeremy. Yeah, I'd say, you know, we've been very focused on core exposures and continued to diversify the product set. You know, I think high level. We are as diversified as a business as we've been when you look at it holistically with US and Europe. You know, we started off very value-focused in the US, and we're all waiting for the major value rotation in the market. But we've been increasingly focused on the quality franchise within, with some tree quality dividend growth, but now also quality growth.

Speaker Change: Jeremy would you take that but obviously it could only talk about you know you can't give secrets away, but please take a jeremy.

Jeremy D. Schwartz: Yeah, I'd say, you know, we've been very focused on core exposures and continue to diversify the product set. I think, at a high level, we are as diversified as a business as we ever were. When you look at it holistically with the U.S. and Europe, you know, we started off very value focused in the U.S., and we're all waiting for the major value rotation in the market. But we've been increasingly focused on the quality franchise within WisdomTree, quality dividend growth, but now also quality growth. So we launched quality QGRW in the U.S. at the end of 2022, right after the big bear market in tech. That funds are now up to almost half a billion.

Jeremy: Yeah, I'd say, we've been very focused on core exposures and continuing to diversify the product set I think high level, we are as diversified as a business as we've been when you look at it holistically with the U S. In Europe we.

We started off very value focused in the U S and we're all waiting for the major value rotation in the market, but we've been increasingly focused on the quality franchise within with century quality dividend growth, but now also quality growth. So we watched the quality.

Jeremy Schwartz: So we launched quality a QDR w in the US at the end of 2022 right after the big bear marketing tech. That funds now up to almost half a billion. We further launched that in Europe to get the global synergies, but we launched mid and small cap versions of that in the US, so sort of rounding out the product suite. We've been focused on thematic as part of that franchise of growth products as well. And in Europe, we continue to have very strong flows and can you launch a lot of interesting products. We launched a mega trend product that is a collection of themes.

Jeremy: <unk> W. In the U S. At the end of 2022 right. After the Big Bear marketing Tech that funds now up to almost half a billion. We further launch that in Europe to get the global synergies, but we launched mid and small cap versions of that in the U S and so sort of rounding out the product suite, we have been focused on the magic is.

Jeremy D. Schwartz: We further launched that in Europe to get the global synergies, but we launched mid and small cap versions of that in the U.S. So, sort of rounding out the product suite, we've been focused on thematics as part of that franchise of growth products as well. And in Europe, we continue to have very strong flows and continue to launch a lot of interesting products. We launched a megatrend product that is a collection of themes, all trying to get diversified.

Jeremy: Part of that franchise growth products as well and in Europe. We continue to have very strong flows and could you watch a lot of interesting products, we launched a megatrend product that is a collection of themes.

Jeremy Schwartz: I'll try to get diversified exposure. And so, you know, I think we're doing a lot in things like our fishing core family to give room for alternatives. We did that in the US. Some of our things performing products this year have been in that efficient core with gold overlays in the US, but they also then launched a fishing core for the US markets over in Europe. I think we're going to do more with that concept. But yeah, we're continuing to execute and try to diversify the overall product mix that we have. You know, since we started the firm almost 20 years ago, we actually have quite a broad suite of funds.

I'll try to get diversified.

Jeremy D. Schwartz: And so, you know, I think we're doing a lot with things like our EfficientCore family to give room for alternatives. We did that in the U.S. Some of our best-performing products this year have been the EfficientCore with gold overlays in the U.S., but they also then launched EfficientCore for the U.S. markets in Europe. I think we're going to do more with that concept. But yeah, we're continuing to execute and try to diversify the overall product mix that we have.

Jeremy: And so I think we're doing a lot in.

In things like we're fishing core family to give room for alternatives, we did that in the U S.

Jeremy: Some of our best performing product in this year have been in that efficient core with gold overlays in the U S. But they also have them locked efficient core.

Jeremy: For the U S markets over in Europe, I think we're gonna do more with that concept, but yeah. We're continue to execute and try to diversify the overall product mix that we have.

Jeremy D. Schwartz: You know, since we started the firm almost 20 years ago, we actually have quite a broad suite of funds; we're always looking to strategically fill out and strengthen our product set. But really, much of our focus is to just grow our funds, you know, to $10 billion, more $10 billion funds. I think we have a lot of potential in the existing suite, and we can do a lot more with it. Thank you. Thank you.

Since we started the firm almost 20 years ago.

Jeremy: We actually have quite a broad suite of funds, we're always looking to strategically.

Jeremy Schwartz: We're always looking to strategically fill out and strengthen our product sets, but really much of our focus is to just grow our funds, you know, to $10 billion, more $10 billion funds. I think we have a lot of potential in the existing suite, and we can do a lot more with it.

Jeremy: Fill out and strengthen our product set but really a much of our focus is to just grow our funds to $10 billion more $10 billion funds I think.

Jeremy: We have a lot of potential in the existing suite or we can do a lot more with it.

Christoph Kotowski: Thank you. Our next question comes from Chris Kotowiski with Oppenheimer.

Speaker Change: Thank you. Thank you next question.

Operator: Our next question comes from Chris Kotowski with Oppenheimer. Please proceed with your answer.

Our next question comes from Chris Koh to Whiskey with Oppenheimer.

Speaker Change: Oppenheimer. Please proceed with your question.

Christoph Kotowski: Please proceed with your question. Yeah, good morning.

Christoph M. Kotowski: Yeah, good morning. Most of mine have already been asked, but I was just curious about the other revenues. If you could flesh that out a little bit more, Like, is that pure incremental revenue? And I'm just wondering if you're generally guiding to 50%, you know, incremental margins. Are these, are these like 50% margin dollars? Or is it like 100% pure incremental? And then, as an analyst, always trying to model every line item p times q.

Speaker Change: Yeah. Good morning, most of mine have been asked but I was just curious on the other revenues that you could flesh that out a little bit more is that pure incremental revenue and I'm. Just wondering do you generally guiding to 50% incremental margins are these are these like 50%.

Christoph Kotowski: Most of mine have been asked, but I was just curious on the other revenues that you could slash that out a little bit more like is that pure incremental revenue and and I'm just wondering you're generally guiding to 50% you know incremental margins are these are these like 50% margin dollars or is it like 100% pure incremental and then as an analyst, I was trying to model every line item P times Q and I'm over time does that grow and does it grow with European AUM or what does it grow with if it grows. Great question.

Speaker Change: Our margin dollars or is it like a 100% pure incremental and then as an analyst I always.

Speaker Change: Turning to <unk>.

Speaker Change: Midol every line item P times Q and Im.

Speaker Change: Over time does that grow and does it grow with European AUM or what does it grow with if it grows.

Christoph M. Kotowski: And over time, does that grow? And does it grow with European AUM? Or what does it grow with if it grows?

Speaker Change: Great question, Chris, Yes, why not.

Bryan: Great question. Thanks, Chris. Yeah, I'll take that question. So, as it relates to just run rate, I think there are a couple of different elements going through other revenue, and there certainly is a mix of asset-based elements, and there are transaction-based elements. So on the asset-based side, if AUM were to grow, we may see a little bit of an uplift in other revenue. But I don't want to necessarily assume that at this time. I think the 8 million run rate that we said in the prepared remarks is a fair place to be when thinking about how to model this going forward for the time being.

Speaker Change: Yeah, I'll tell you I'll take that question so.

Speaker Change: As it relates to just run rate.

Brian Edmondson: I think there's a couple of different elements going through other revenue, and there certainly is a mix of asset-based elements and there's transaction-based elements. So, on the asset-based side, if AUM were to grow, we may see a little bit of an uplift in other revenue. I don't want to necessarily assume that at this time, I think the 8 million run rate that we said in the prepared remarks. Is a fair place to be when thinking about how to model this going forward for the time being. It is largely. There really isn't much of an expense offset.

Speaker Change: I think there's a couple of different elements going through other revenue and there certainly is a mix of.

Speaker Change: Asset based elements and there is a transaction based elements.

Speaker Change: So on the asset base side, if one were to grow we may see a little bit of an uplift in other revenue I don't want to necessarily assume that at this time I think the $8 million run rate that we saw.

Speaker Change: Said in the prepared remarks is.

Speaker Change: It is a fair place to be when thinking about how to model. This going forward for the time being.

Bryan: It is largely, There really isn't much of an expense offset. I mean, the only thing I could say is when it comes to compensation, our comp plans are very performance-based. So if there's a little bit more revenue, that might mean there's a little bit of incremental comp associated with that as well. But it clearly is much healthier than a 50% incremental margin when thinking about the impact of the other revenue.

Speaker Change: It is largely.

Speaker Change: There really isn't much of an expense offset I mean, the only thing I can say is.

Brian Edmondson: I mean, the only thing I could say is when it comes to compensation, our comp plans are very performance-based, so if there's a little bit more revenue. That might mean there's a little bit of incremental comp associated with that as well, but it clearly is it's much healthier than 50% incremental margin when thinking about the impact of the other revenue. Okay, great.

Speaker Change: When it comes to compensation our comp plans are very performance based so if theres a little bit more revenue.

Speaker Change: That might mean, theres, a little bit of incremental comp associated with that as well, but it clearly is it's much healthier than a 50% incremental margin when thinking about the impact of the other revenue.

Christoph M. Kotowski: Okay, great. Thank you. That's it for me.

Speaker Change: Okay, great. Thank you that's it from me.

Christoph Kotowski: Thank you. That's it for me.

Speaker Change: Great.

Operator: Thank you. There are no further questions at this time.

Jonathan Laurence Steinberg: Thank you. There are no further questions at this time. I'd like to turn the floor back over to Jonathan Steinberg for closing comments.

Speaker Change: Thank you there are no further questions at this time I'd like to turn the floor back over to Jonathan Steinberg for closing comments.

Jonathan Steinberg: I'd like to turn the floor back over to Jonathan Steinberg for closing comments. Thank you, everybody. We appreciate your time, and your support will speak to next quarter.

Jonathan Laurence Steinberg: Thank you, everybody. We appreciate your time and your support. We'll speak to you next quarter. Enjoy your beautiful Friday in the summer. Bye, everybody.

Jonathan Laurence Steinberg: Thank you everybody. We appreciate your time and your support we'll speak to you next quarter enjoy your beautiful Friday.

Jonathan Steinberg: Enjoy your beautiful Friday in the summer. Bye, everybody.

Speaker Change: In the summer bye everybody.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ �

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

unknown: Avis Vigil, Paul Gillespie, and myself. And, thank you for having me. I'll see you next time. Bye, everybody. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye.

Speaker Change: Hum.

Speaker Change: [music].