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PX NYSE· P10 Inc
Earnings report Q3 2023

PX Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

PX reported total revenues of $58.94 million for the three months ended September 30, 2023, compared to $49.99 million in the same period last year. The majority of the revenue came from management and advisory fees, which amounted to $58.08 million, representing a 17% increase from the previous year. Other revenue contributed $864,000 to the total revenues.

Strengths

PX's strong revenue growth in the latest quarter can be attributed to both inorganic and organic growth. The acquisition of WTI contributed $6.6 million to the increase in management fees, while organic growth across Bonaccord and Truebridge added $2.5 million. The company's average fee rates remained stable at approximately 1%, indicating a consistent and reliable revenue stream.

Challenges

While PX experienced overall revenue growth, it also faced certain challenges. The company incurred higher operating expenses, particularly in compensation and benefits, which increased to $42.17 million from $23.98 million in the previous year. This rise in expenses could impact the company's profitability and margin.

Noteworthy

PX's revenue growth of $8.9 million or 18% in the latest quarter is noteworthy, driven by the impact of inorganic growth from the acquisition of WTI and organic growth across Bonaccord and Truebridge. The company's revenue composition is primarily composed of recurring management and advisory fees, with the majority earned on committed capital subject to long-term lock-up agreements.

Summary

PX delivered a strong performance in the latest quarter, with a significant increase in total revenues driven by higher management and advisory fees. The company's revenue growth can be attributed to both inorganic and organic factors, showcasing its ability to expand its client base and generate consistent fee income. However, PX also faced challenges in the form of higher operating expenses, which could impact its profitability. Overall, PX's revenue growth demonstrates its resilience and ability to capitalize on market opportunities.

Source documents

Form 10-Q  filed on Nov 13, 2023
38 pages scanned

Reference data

Company financials Q3 revenue 58.9M
Analyst estimates Q3 EPS beat by 8.05%
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