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APO NYSE· Apollo Global Management Inc.
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APO NYSE· Apollo Global Management Inc.
Earnings report Q4 2023

APO Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, APO reported total revenues of $32.64 billion. The company's revenue is divided into two main segments: Asset Management and Retirement Services.

  • Asset Management: APO generated $3.51 billion in revenues from its Asset Management segment. This includes management fees of $1.77 billion, advisory and transaction fees of $623 million, investment income of $1.03 billion, and incentive fees of $80 million.

  • Retirement Services: APO's Retirement Services segment contributed $29.14 billion to the company's revenues. This segment includes premiums of $12.75 billion, product charges of $848 million, net investment income of $12.08 billion, investment-related gains (losses) of $1.43 billion, revenues of consolidated variable interest entities of $1.44 billion, and other revenues of $591 million.

Strengths

APO demonstrated strong revenue growth in the latest quarter, with total revenues increasing significantly compared to the previous year. The growth in revenues was primarily driven by the Asset Management segment, which saw an increase in management fees, advisory and transaction fees, and investment income. The company's disciplined expense growth and margin expansion also contributed to its strong financial performance.

Challenges

While APO reported strong revenue growth, it also experienced increases in other operating expenses and fee-related compensation expenses. These factors offset some of the revenue growth and may pose challenges to the company's profitability.

Noteworthy

APO's Asset Management segment closely monitors certain operating metrics, including Assets Under Management (AUM), gross capital deployment, and uncalled commitments. These metrics directly impact the performance of the segment and provide insights into the company's investment activities.

Summary

APO delivered a strong performance in the latest quarter, with significant revenue growth driven by its Asset Management and Retirement Services segments. The company's disciplined expense management and margin expansion further strengthened its financial position. However, increases in other operating expenses and fee-related compensation expenses present challenges to the company's profitability. APO's focus on monitoring key operating metrics in its Asset Management segment demonstrates its commitment to effective investment management. Overall, APO's latest quarter results reflect a positive trajectory for the company's financial performance.

Source documents

Form 10-K  filed on Feb 27, 2024
66 pages scanned

Reference data

Company financials Q4 revenue 11B
Analyst estimates Q4 EPS beat by 8.40%
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