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AB NYSE· AllianceBernstein Holding L.P.
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AB NYSE· AllianceBernstein Holding L.P.
Earnings report Q4 2023

AB Reports Decrease in Net Revenues for the Fourth Quarter of 2023

Segments of Revenue

AB's net revenues for the fourth quarter of 2023 amounted to $4.16 billion, representing a 2.5% increase compared to the previous year's quarter. However, when compared to the same quarter in 2022, net revenues decreased by 8.7%.

Strengths

Despite the decline in net revenues, AB demonstrated resilience in its financial performance. The company's management utilizes adjusted net revenues, adjusted operating income, and adjusted operating margin as key metrics to evaluate and compare its operating performance. These metrics provide a clearer picture of AB's performance by excluding long-term incentive compensation-related mark-to-market adjustments, acquisition-related expenses, interest expense, and other adjustment items. By focusing on these metrics, management can identify long-term trends and assess the company's operating performance without distortions.

Challenges

AB faced several challenges in the latest quarter. Operating income remained relatively flat, increasing only by 0.3% compared to the previous year's quarter. Additionally, net income declined by 32.8% compared to the same quarter in 2022. The company also experienced a decrease in diluted net income per AB Unit, which dropped by 28% year-over-year. Furthermore, distributions per AB Unit decreased by 22.2% compared to the previous year's quarter.

Noteworthy

It is worth noting that AB purchased 186,111 AB Holding Units on the open market during the fourth quarter of 2023. This purchase was made to help fund anticipated obligations under the company's incentive compensation award program. The details of this purchase can be found in Note 6 to AB Holding's financial statements in Item 8 of the 2023 Annual Report.

Summary

AB's net revenues for the fourth quarter of 2023 showed a slight increase compared to the previous year's quarter, but a significant decrease when compared to the same quarter in 2022. The company's management relies on adjusted net revenues, adjusted operating income, and adjusted operating margin as key metrics to evaluate its performance. Despite facing challenges such as flat operating income, declining net income, and decreased diluted net income per AB Unit, AB demonstrated resilience in its financial performance. The company's purchase of AB Holding Units on the open market to fund incentive compensation obligations is also noteworthy.

Source documents

Form 10-K  filed on Feb 09, 2024
139 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS beat by 23.79%
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