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AMK NYSE· AssetMark Financial
Earnings report Q3 2023

AMK Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

AMK reported total revenue of $190.5 million for the quarter ended September 30, 2023, representing a significant increase of $35.9 million or 23.2% compared to the same quarter last year. The company's asset-based revenue reached $143.8 million, up $15.7 million or 12.2% from the previous year's quarter. Additionally, spread-based revenue experienced substantial growth, reaching $37.3 million, an increase of $16.2 million or 76.4% from the same period last year.

Strengths

AMK demonstrated strong revenue growth in the latest quarter, driven by increases in both asset-based and spread-based revenue. The company's asset-based revenue growth of 12.2% can be attributed to the compelling value of their tools for advisers and clients, which has facilitated their rapid growth. The significant growth in spread-based revenue by 76.4% indicates successful execution of the company's strategies in this segment.

Challenges

While AMK experienced overall revenue growth, it is worth noting that subscription-based revenue only increased by 24.5% and other revenue by 147.8%. These segments showed relatively slower growth compared to asset-based and spread-based revenue. The company should focus on further expanding these segments to maximize revenue potential.

Noteworthy

AMK's net income for the quarter ended September 30, 2023, was $38.4 million, or $0.52 per share, compared to $30.1 million, or $0.41 per share, for the same quarter last year. Adjusted net income for the latest quarter was $46.0 million. These positive financial results indicate the company's ability to generate profits and enhance shareholder value.

Summary

AMK delivered a strong performance in the latest quarter, with total revenue increasing by 23.2% compared to the same period last year. The company's asset-based revenue grew by 12.2%, driven by the value of their tools for advisers and clients. Additionally, spread-based revenue experienced significant growth of 76.4%, reflecting successful execution of strategies in this segment. While subscription-based and other revenue showed slower growth, AMK's overall financial performance and increased net income demonstrate the company's ability to generate profits and drive shareholder value.

Source documents

Form 10-Q  filed on Nov 07, 2023
36 pages scanned

Reference data

Company financials Q3 revenue 158M
Analyst estimates Q3 EPS beat by 1.75%
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