WT WisdomTree Inc

Record AUM of $109.7 Billion

940 bps of Operating Margin Expansion vs. YTD June 30, 2023

Diluted Earnings Per Share of $0.13 ($0.16, as Adjusted)

WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the second quarter of 2024.

$21.8 million of net income ($27.1(1) million of net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.

$109.7 billion of ending AUM, an increase of 2.3% from the prior quarter arising from market appreciation and net inflows.

$0.3 billion of net inflows, primarily driven by inflows into our international developed equity, fixed income and U.S. equity products, partially offset by outflows from our commodity products.

0.37% average advisory fee, a 1 basis point increase from the prior quarter.

$107.0 million of operating revenues, an increase of 10.5% from the prior quarter due to higher average AUM and higher other revenues attributable to our European listed products.

81.2% gross margin(1), a 1.8 point increase from the prior quarter due to higher revenues.

31.3% operating income margin (35.3%(1) as adjusted), a 2.4 point increase (5.7 point increase, as adjusted(1)) compared to our operating margin of 28.9% (29.6%(1), as adjusted) in the prior quarter primarily due to higher revenues.

$0.03 quarterly dividend declared, payable on August 21, 2024 to stockholders of record as of the close of business on August 7, 2024.

Update from Jonathan Steinberg, WisdomTree CEO

 

“WisdomTree continued to thrive in the second quarter, generating record assets under management with a global footprint and leadership in advisor solutions and tokenization on the back of only 300 employees. It is truly a testament to the efficiency of our business model and reflects our mission, vision and values. The broadening of our product lineup over the years while adding portfolio solutions for our advisor clients are showcased in our three-plus years of strong net inflows and record assets under management. Continued traction in those areas, alongside our leadership position in the industry’s secular shift toward ETFs, tokenization and blockchain technology, further set the company up for success in the long run.”

 

Update from Jarrett Lilien, WisdomTree COO and President

 

“WisdomTree once again delivered strong revenue growth on the back of record assets under management, net inflows and expanding other revenue streams. With well-managed expenses and scale benefits, we’ve expanded adjusted operating margins 840 basis points this year as compared to the first half of last year. This all translates into an accelerated pace of EPS growth and strong returns for stockholders.”

 

OPERATING AND FINANCIAL HIGHLIGHTS

 

Three Months Ended

 

June 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sept. 30, 2023

June 30, 2023

Consolidated Operating Highlights ($ in billions):

 

 

 

 

 

AUM—end of period

$

109.7

 

$

107.2

 

$

100.1

 

$

93.7

 

$

93.7

 

Net inflows/(outflows)

$

0.3

 

$

2.0

 

$

(0.3

)

$

2.0

 

$

2.3

 

Average AUM

$

108.4

 

$

102.4

 

$

96.6

 

$

95.7

 

$

91.6

 

Average advisory fee

 

0.37

%

 

0.36

%

 

0.36

%

 

0.36

%

 

0.36

%

 

 

 

 

 

 

Consolidated Financial Highlights ($ in millions, except per share amounts):

 

 

 

 

 

Operating revenues

$

107.0

 

$

96.8

 

$

90.8

 

$

90.4

 

$

85.7

 

Net income

$

21.8

 

$

22.1

 

$

19.1

 

$

13.0

 

$

54.3

 

Diluted earnings per share

$

0.13

 

$

0.13

 

$

0.16

 

$

0.07

 

$

0.32

 

Operating income margin

 

31.3

%

 

28.9

%

 

28.7

%

 

29.5

%

 

21.2

%

 

 

 

 

 

 

As Adjusted (Non-GAAP(1)):

 

 

 

 

 

Gross margin

 

81.2

%

 

79.4

%

 

79.7

%

 

80.1

%

 

79.3

%

Net income, as adjusted

$

27.1

 

$

20.3

 

$

18.6

 

$

18.0

 

$

14.9

 

Diluted earnings per share, as adjusted

$

0.16

 

$

0.12

 

$

0.11

 

$

0.10

 

$

0.09

 

Operating income margin, as adjusted

 

35.3

%

 

29.6

%

 

28.7

%

 

29.5

%

 

26.9

%

 

 

 

 

 

 

RECENT BUSINESS DEVELOPMENTS

 

Company News

• In June 2024, WisdomTree stockholders voted for all proposals, including to overwhelmingly elect all nine of WisdomTree’s nominees to the Board of Directors at its 2024 Annual Meeting of Stockholders.
• Also in June 2024, WisdomTree Europe was named ‘Best ETF Provider’ at the Online Money Awards for the third year in a row.

Product News

• In May 2024, we launched the WisdomTree India Hedged Equity Fund (INDH) on the NASDAQ; we were one of the first issuers to list Crypto ETPs on the London Stock Exchange, including the WisdomTree Physical Bitcoin ETP (BTCW) and the WisdomTree Physical Ethereum ETP (ETHW); and we listed eight 5x short-and-leveraged equity ETPs on the London Stock Exchange, B�rse Xetra and Borsa Italiana.
• In June 2024, we launched the WisdomTree Global Sustainable UCITS ETF (WSDG) on the London Stock Exchange and B�rse Xetra, in collaboration with Irish Life Investment Managers.
• In July 2024, we introduced Portfolio Solutions, a comprehensive suite of solutions empowering new and deeper advisor relationships through scalable model portfolios; we cross-listed the WisdomTree Global Sustainable UCITS ETF (WSDG) on Borsa Italiana; and we partnered with Trading 212, one of the UK’s most popular commission-free investing apps, to offer six ETF model portfolios for European retail investors.

 

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

Six Months Ended

 

June 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sept. 30, 2023

June 30, 2023

June 30, 2024

June 30, 2023

Operating Revenues:

 

 

 

 

 

 

 

Advisory fees

$

98,938

 

$

92,501

 

$

86,988

 

$

86,598

 

$

82,004

 

$

191,439

 

$

159,641

 

Other revenues

 

8,096

 

 

4,337

 

 

3,856

 

 

3,825

 

 

3,720

 

 

12,433

 

 

8,127

 

Total revenues

 

107,034

 

 

96,838

 

 

90,844

 

 

90,423

 

 

85,724

 

 

203,872

 

 

167,768

 

Operating Expenses:

 

 

 

 

 

 

 

Compensation and benefits

 

30,790

 

 

31,054

 

 

27,860

 

 

27,955

 

 

26,319

 

 

61,844

 

 

53,717

 

Fund management and administration

 

20,139

 

 

19,962

 

 

18,445

 

 

18,023

 

 

17,727

 

 

40,101

 

 

34,880

 

Marketing and advertising

 

5,110

 

 

4,408

 

 

4,951

 

 

3,833

 

 

4,465

 

 

9,518

 

 

8,472

 

Sales and business development

 

3,640

 

 

3,611

 

 

3,881

 

 

3,383

 

 

3,326

 

 

7,251

 

 

6,320

 

Contractual gold payments

 

—

 

 

—

 

 

—

 

 

—

 

 

1,583

 

 

—

 

 

6,069

 

Professional fees

 

6,594

 

 

3,630

 

 

3,201

 

 

3,719

 

 

8,334

 

 

10,224

 

 

12,049

 

Occupancy, communications and equipment

 

1,314

 

 

1,210

 

 

1,208

 

 

1,203

 

 

1,172

 

 

2,524

 

 

2,273

 

Depreciation and amortization

 

418

 

 

383

 

 

335

 

 

307

 

 

121

 

 

801

 

 

230

 

Third-party distribution fees

 

2,687

 

 

2,307

 

 

2,549

 

 

2,694

 

 

1,881

 

 

4,994

 

 

4,134

 

Other

 

2,831

 

 

2,323

 

 

2,379

 

 

2,601

 

 

2,615

 

 

5,154

 

 

4,872

 

Total operating expenses

 

73,523

 

 

68,888

 

 

64,809

 

 

63,718

 

 

67,543

 

 

142,411

 

 

133,016

 

Operating income

 

33,511

 

 

27,950

 

 

26,035

 

 

26,705

 

 

18,181

 

 

61,461

 

 

34,752

 

Other Income/(Expenses):

 

 

 

 

 

 

 

Interest expense

 

(4,140

)

 

(4,128

)

 

(3,758

)

 

(3,461

)

 

(4,021

)

 

(8,268

)

 

(8,023

)

Gain on revaluation/termination of deferred consideration—gold payments

 

—

 

 

—

 

 

—

 

 

—

 

 

41,361

 

 

—

 

 

61,953

 

Interest income

 

1,438

 

 

1,398

 

 

1,225

 

 

791

 

 

1,000

 

 

2,836

 

 

2,083

 

Impairments

 

—

 

 

—

 

 

(339

)

 

(2,703

)

 

—

 

 

—

 

 

(4,900

)

Loss on extinguishment of convertible notes

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(9,721

)

Other losses and gains, net

 

(1,283

)

 

2,592

 

 

1,602

 

 

(2,512

)

 

1,286

 

 

1,309

 

 

(721

)

Income before income taxes

 

29,526

 

 

27,812

 

 

24,765

 

 

18,820

 

 

57,807

 

 

57,338

 

 

75,423

 

Income tax expense

 

7,767

 

 

5,701

 

 

5,688

 

 

5,836

 

 

3,555

 

 

13,468

 

 

4,938

 

Net income

$

21,759

 

$

22,111

 

$

19,077

 

$

12,984

 

$

54,252

 

$

43,870

 

 

70,485

 

Earnings per share—basic

$

0.13(2)

$

0.14(2

)

$

0.16(2

)

$

0.07(2

)

$

0.32(2

)

$

0.27(2

)

$

0.43(2

)

Earnings per share—diluted

$

0.13

 

$

0.13

 

$

0.16(2

)

$

0.07

 

$

0.32

 

$

0.26

 

$

0.42(2

)

Weighted average common shares—basic

 

146,896

 

 

146,464

 

 

145,310

 

 

145,284

 

 

144,351

 

 

146,680

 

 

144,108

 

Weighted average common shares—diluted

 

166,359

 

 

165,268

 

 

171,703

 

 

177,140

 

 

170,672

 

 

165,872

 

 

165,468

 

 

 

 

 

 

 

 

 

As Adjusted (Non-GAAP(1))

 

 

 

 

 

 

 

Total operating expenses

$

69,252

 

$

68,193

 

$

64,809

 

$

63,718

 

$

62,630

 

 

 

Operating income

$

37,782

 

$

28,645

 

$

26,035

 

$

26,705

 

$

23,094

 

 

 

Income before income taxes

$

36,083

 

$

26,987

 

$

23,908

 

$

23,902

 

$

19,752

 

 

 

Income tax expense

$

9,008

 

$

6,731

 

$

5,342

 

$

5,854

 

$

4,833

 

 

 

Net income

$

27,075

 

$

20,256

 

$

18,566

 

$

18,048

 

$

14,919

 

 

 

Earnings per share—diluted

$

0.16

 

$

0.12

 

$

0.11

 

$

0.10

 

$

0.09

 

 

 

Weighted average common shares—diluted

 

166,359

 

 

165,268

 

 

171,703

 

 

177,140

 

 

170,672

 

 

 

QUARTERLY HIGHLIGHTS

Operating Revenues

• Operating revenues increased 10.5% and 24.9% from the first quarter of 2024 and the second quarter of 2023, respectively, due to higher average AUM and higher other revenues attributable to our European listed exchange-traded products (“ETPs”).
• Our average advisory fee was 0.37%, 0.36% and 0.36% during the second quarter of 2024, the first quarter of 2024 and the second quarter of 2023, respectively.

Operating Expenses

• Operating expenses increased 6.7% from the first quarter of 2024 primarily due to higher professional fees arising from expenses incurred in connection with an activist campaign, as well as higher marketing expenses.
• Operating expenses increased 8.9% from the second quarter of 2023 primarily due to higher incentive and stock-based compensation expense and increased headcount, fund management and administration costs, third-party distribution fees and marketing expenses. These increases were partly offset by lower professional fees and the termination of the deferred consideration—gold payments obligation on May 10, 2023.

Other Income/(Expenses)

• Interest expense was essentially unchanged from the first quarter of 2024. Interest expense increased 3.0% from the second quarter of 2023 due to the recognition of imputed interest on our obligation payable to Gold Bullion Holdings (Jersey) Limited (“GBH”), a subsidiary of the World Gold Council, in connection with our repurchase in November 2023 of our Series C Non-Voting Convertible Preferred Stock, partly offset by a lower level of debt outstanding.
• Interest income increased 2.9% and 43.8% from the first quarter of 2024 and second quarter of 2023, respectively, due to a higher level of interest-earning assets.
• Other losses and gains, net was a loss of $1.3 million for the second quarter of 2024. The quarter included net losses of $1.3 million and $0.3 million on our investments and financial instruments owned, respectively. Gains and losses also generally arise from the sale of gold and crypto earned from management fees paid by our physically-backed gold and crypto ETPs, foreign exchange fluctuations and other miscellaneous items.

Income Taxes

• Our effective income tax rate for the second quarter of 2024 was 26.3%, resulting in income tax expense of $7.8 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible executive compensation, an increase in the deferred tax asset valuation allowance on losses recognized on our investments and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings.
• Our adjusted effective income tax rate for the second quarter of 2024 was 25.0%(1).

SIX MONTH HIGHLIGHTS

• Operating revenues increased 21.5% as compared to 2023 due to higher average AUM and higher other revenues attributable to our European listed ETPs.
• Operating expenses increased 7.1% as compared to 2023 primarily due to higher incentive and stock-based compensation expense and increased headcount, fund management and administration costs, marketing expenses, sales and business development expenses, third-party distribution fees, as well as higher depreciation and amortization. These increases were partly offset by lower contractual gold payments and professional fees.
• Significant items reported in other income/(expense) in 2024 include: an increase in interest expense of 3.1% due to imputed interest on our obligation payable to GBH, partly offset by a lower level of debt outstanding; an increase in interest income of 36.1% due to an increase in our interest-earning assets; net gains on our financial instruments owned of $1.8 million; and losses on our investments of $1.2 million. Gains and losses also generally arise from the sale of gold earned on management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
• Our effective income tax rate for 2024 was 23.5%, resulting in an income tax expense of $13.5 million. Our tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible executive compensation and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings and tax windfalls associated with the vesting of stock-based compensation awards.

CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS

WisdomTree will discuss its results and operational highlights during a live webcast on Friday, July 26, 2024 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=5z2QQw8B.

Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers. To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time. All earnings materials and the webcast can be accessed through WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will also be available shortly after the call.

About WisdomTree

WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime®.*

* The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $111.2 billion in assets under management globally.

For more information about WisdomTree and WisdomTree Prime®, visit: https://www.wisdomtree.com.

Please visit us on X, at @WisdomTreeNews.

WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:

NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY

The products and services available through the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.

____________________

(1)

See “Non-GAAP Financial Measurements.”

(2)

Earnings per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months ended December 31, 2023 includes a gain of $7.966 recognized upon the repurchase of our Series C non-voting preferred shares convertible into approximately 13.1 million shares of common stock from GBH, which is excluded from net income, but required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This gain is excluded from our EPS when computed on a non-GAAP basis.

 

WISDOMTREE, INC. AND SUBSIDIARIES

KEY OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months Ended

 

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

GLOBAL ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

107,230

 

$

100,124

 

$

93,735

 

$

93,666

 

$

90,740

 

Inflows/(outflows)

 

340

 

 

1,990

 

 

(255

)

 

1,983

 

 

2,327

 

Market appreciation/(depreciation)

 

2,116

 

 

5,116

 

 

6,644

 

 

(1,914

)

 

599

 

End of period assets

$

109,686

 

$

107,230

 

$

100,124

 

$

93,735

 

$

93,666

 

Average assets during the period

$

108,392

 

$

102,360

 

$

96,534

 

$

95,743

 

$

91,578

 

Average advisory fee during the period

 

0.37

%

 

0.36

%

 

0.36

%

 

0.36

%

 

0.36

%

Revenue days

 

91

 

 

91

 

 

92

 

 

92

 

 

91

 

Number of ETFs—end of the period

 

350

 

 

338

 

 

337

 

 

344

 

 

344

 

 

 

 

 

 

 

U.S. LISTED ETFs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

78,087

 

$

72,486

 

$

68,018

 

$

65,903

 

$

61,283

 

Inflows/(outflows)

 

1,106

 

 

1,983

 

 

(67

)

 

3,601

 

 

3,249

 

Market appreciation/(depreciation)

 

529

 

 

3,618

 

 

4,535

 

 

(1,486

)

 

1,371

 

End of period assets

$

79,722

 

$

78,087

 

$

72,486

 

$

68,018

 

$

65,903

 

Average assets during the period

$

78,436

 

$

74,730

 

$

69,694

 

$

68,008

 

$

62,712

 

Number of ETFs—end of the period

 

78

 

 

77

 

 

76

 

 

80

 

 

80

 

 

 

 

 

 

 

EUROPEAN LISTED ETPs ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Beginning of period assets

$

29,143

 

$

27,638

 

$

25,717

 

$

27,763

 

$

29,457

 

(Outflows)/inflows

 

(766

)

 

7

 

 

(188

)

 

(1,618

)

 

(922

)

Market appreciation/(depreciation)

 

1,587

 

 

1,498

 

 

2,109

 

 

(428

)

 

(772

)

End of period assets

$

29,964

 

$

29,143

 

$

27,638

 

$

25,717

 

$

27,763

 

Average assets during the period

$

29,956

 

$

27,630

 

$

26,840

 

$

27,735

 

$

28,866

 

Number of ETPs—end of the period

 

272

 

 

261

 

 

261

 

 

264

 

 

264

 

 

 

 

 

 

 

PRODUCT CATEGORIES ($ in millions)

 

 

 

 

 

 

 

 

 

 

 

U.S. Equity

 

 

 

 

 

Beginning of period assets

$

31,670

 

$

29,156

 

$

25,643

 

$

26,001

 

$

24,534

 

Inflows

 

221

 

 

536

 

 

487

 

 

864

 

 

414

 

Market (depreciation)/appreciation

 

(57

)

 

1,978

 

 

3,026

 

 

(1,222

)

 

1,053

 

End of period assets

$

31,834

 

$

31,670

 

$

29,156

 

$

25,643

 

$

26,001

 

Average assets during the period

$

31,252

 

$

30,056

 

$

26,822

 

$

26,501

 

$

24,732

 

 

 

 

 

 

 

Commodity & Currency

 

 

 

 

 

Beginning of period assets

$

21,944

 

$

21,336

 

$

20,466

 

$

22,384

 

$

24,924

 

Outflows

 

(1,499

)

 

(460

)

 

(449

)

 

(1,814

)

 

(1,513

)

Market appreciation/(depreciation)

 

1,542

 

 

1,068

 

 

1,319

 

 

(104

)

 

(1,027

)

End of period assets

$

21,987

 

$

21,944

 

$

21,336

 

$

20,466

 

$

22,384

 

Average assets during the period

$

22,437

 

$

20,837

 

$

21,254

 

$

22,278

 

$

24,033

 

 

 

 

 

 

 

Fixed Income

 

 

 

 

 

Beginning of period assets

$

21,218

 

$

21,197

 

$

21,797

 

$

20,215

 

$

18,708

 

Inflows/(outflows)

 

236

 

 

(14

)

 

(715

)

 

1,670

 

 

1,471

 

Market (depreciation)/appreciation

 

(24

)

 

35

 

 

115

 

 

(88

)

 

36

 

End of period assets

$

21,430

 

$

21,218

 

$

21,197

 

$

21,797

 

$

20,215

 

Average assets during the period

$

21,277

 

$

21,082

 

$

21,889

 

$

20,965

 

$

19,185

 

 

Three Months Ended

 

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

International Developed Market Equity

 

 

 

 

 

Beginning of period assets

$

18,103

 

$

15,103

 

$

13,902

 

$

13,423

 

$

11,433

 

Inflows

 

1,253

 

 

1,599

 

 

9

 

 

798

 

 

1,593

 

Market appreciation/(depreciation)

 

29

 

 

1,401

 

 

1,192

 

 

(319

)

 

397

 

End of period assets

$

19,385

 

$

18,103

 

$

15,103

 

$

13,902

 

$

13,423

 

Average assets during the period

$

18,809

 

$

16,688

 

$

14,266

 

$

13,873

 

$

12,276

 

 

 

 

 

 

 

Emerging Market Equity

 

 

 

 

 

Beginning of period assets

$

11,189

 

$

10,726

 

$

9,569

 

$

9,191

 

$

8,811

 

Inflows

 

57

 

 

217

 

 

412

 

 

451

 

 

329

 

Market appreciation/(depreciation)

 

629

 

 

246

 

 

745

 

 

(73

)

 

51

 

End of period assets

$

11,875

 

$

11,189

 

$

10,726

 

$

9,569

 

$

9,191

 

Average assets during the period

$

11,448

 

$

10,900

 

$

9,833

 

$

9,652

 

$

8,998

 

 

 

 

 

 

 

Leveraged & Inverse

 

 

 

 

 

Beginning of period assets

$

1,828

 

$

1,815

 

$

1,781

 

$

1,864

 

$

1,785

 

(Outflows)/inflows

 

(18

)

 

(50

)

 

(59

)

 

(1

)

 

12

 

Market appreciation/(depreciation)

 

112

 

 

63

 

 

93

 

 

(82

)

 

67

 

End of period assets

$

1,922

 

$

1,828

 

$

1,815

 

$

1,781

 

$

1,864

 

Average assets during the period

$

1,905

 

$

1,792

 

$

1,803

 

$

1,894

 

$

1,798

 

 

 

 

 

 

 

Cryptocurrency

 

 

 

 

 

Beginning of period assets

$

874

 

$

414

 

$

243

 

$

248

 

$

239

 

Inflows

 

75

 

 

158

 

 

28

 

 

10

 

 

(1

)

Market (depreciation)/appreciation

 

(111

)

 

302

 

 

143

 

 

(15

)

 

10

 

End of period assets

$

838

 

$

874

 

$

414

 

$

243

 

$

248

 

Average assets during the period

$

856

 

$

614

 

$

325

 

$

238

 

$

236

 

 

 

 

 

 

 

Alternatives

 

 

 

 

 

Beginning of period assets

$

404

 

$

377

 

$

334

 

$

340

 

$

306

 

Inflows

 

15

 

 

4

 

 

32

 

 

5

 

 

22

 

Market (depreciation)/appreciation

 

(4

)

 

23

 

 

11

 

 

(11

)

 

12

 

End of period assets

$

415

 

$

404

 

$

377

 

$

334

 

$

340

 

Average assets during the period

$

408

 

$

391

 

$

342

 

$

342

 

$

320

 

 

 

 

 

 

 

Headcount

 

304

 

 

300

 

 

303

 

 

299

 

 

291

 

 

Note: Previously issued statistics may be restated due to fund closures and trade adjustments

Source: WisdomTree

 

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

 

 

June 30, 2024

Dec. 31, 2023

 

(Unaudited)

 

ASSETS

 

 

Current assets:

 

 

Cash, cash equivalents and restricted cash

$

132,459

 

$

129,305

 

Financial instruments owned, at fair value

 

69,783

 

 

58,722

 

Accounts receivable

 

42,664

 

 

35,473

 

Prepaid expenses

 

8,595

 

 

5,258

 

Other current assets

 

1,199

 

 

1,036

 

Total current assets

 

254,700

 

 

229,794

 

Fixed assets, net

 

413

 

 

427

 

Securities held-to-maturity

 

218

 

 

230

 

Deferred tax assets, net

 

6,786

 

 

11,057

 

Investments

 

8,288

 

 

9,684

 

Right of use assets—operating leases

 

847

 

 

563

 

Goodwill

 

86,841

 

 

86,841

 

Intangible assets, net

 

605,580

 

 

605,082

 

Other noncurrent assets

 

457

 

 

459

 

Total assets

$

964,130

 

$

944,137

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

LIABILITIES

 

 

Current liabilities:

 

 

Fund management and administration payable

$

26,551

 

$

30,085

 

Compensation and benefits payable

 

20,315

 

 

38,111

 

Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)

 

14,804

 

 

14,804

 

Income taxes payable

 

1,830

 

 

3,866

 

Operating lease liabilities

 

847

 

 

578

 

Accounts payable and other liabilities

 

20,341

 

 

15,772

 

Total current liabilities

 

84,688

 

 

103,216

 

Convertible notes—long term

 

275,638

 

 

274,888

 

Payable to GBH

 

25,671

 

 

24,328

 

Total liabilities

 

385,997

 

 

402,432

 

Preferred stock:

 

 

Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding

 

132,569

 

 

132,569

 

STOCKHOLDERS’ EQUITY

 

Common stock, par value $0.01; 400,000 shares authorized:

 

 

Issued and outstanding: 151,857 and 150,330 at June 30, 2024 and December 31, 2023, respectively

 

1,519

 

 

1,503

 

Additional paid-in capital

 

315,359

 

 

312,440

 

Accumulated other comprehensive loss

 

(931

)

 

(548

)

Retained earnings

 

129,617

 

 

95,741

 

Total stockholders’ equity

 

445,564

 

 

409,136

 

Total liabilities and stockholders’ equity

$

964,130

 

$

944,137

 

 

 

 

 

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

Six Months Ended June 30,

Cash flows from operating activities:

 

2024

 

 

2023

 

Net income

$

43,870

 

$

70,485

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Advisory and license fees paid in gold, other precious metals and cryptocurrency

 

(25,365

)

 

(25,692

)

Stock-based compensation

 

10,755

 

 

8,506

 

Deferred income taxes

 

4,326

 

 

2,964

 

Gains on financial instruments owned, at fair value

 

(1,772

)

 

(947

)

Imputed interest on payable to GBH

 

1,342

 

 

—

 

Losses on investments

 

1,195

 

 

819

 

Depreciation and amortization

 

801

 

 

230

 

Amortization of issuance costs—convertible notes

 

750

 

 

1,069

 

Amortization of right of use asset

 

647

 

 

640

 

Gain on revaluation/termination of deferred consideration—gold payments

 

—

 

 

(61,953

)

Loss on extinguishment of convertible notes

 

—

 

 

9,721

 

Impairments

 

—

 

 

4,900

 

Contractual gold payments

 

—

 

 

6,069

 

Other

 

—

 

 

(946

)

Changes in operating assets and liabilities:

 

 

Accounts receivable

 

(7,132

)

 

(5,254

)

Prepaid expenses

 

(3,353

)

 

(3,425

)

Gold and other precious metals

 

24,972

 

 

18,441

 

Other assets

 

(118

)

 

347

 

Fund management and administration payable

 

(3,430

)

 

6,419

 

Compensation and benefits payable

 

(17,657

)

 

(18,941

)

Income taxes payable

 

(2,028

)

 

(2,523

)

Operating lease liabilities

 

(662

)

 

(652

)

Accounts payable and other liabilities

 

4,031

 

 

9,752

 

Net cash provided by operating activities

 

31,172

 

 

20,029

 

Cash flows from investing activities:

 

 

Purchase of financial instruments owned, at fair value

 

(14,193

)

 

(40,532

)

Purchase of investments

 

—

 

 

(10,000

)

Cash paid—software development

 

(1,184

)

 

—

 

Purchase of fixed assets

 

(102

)

 

(58

)

Proceeds from the sale of financial instruments owned, at fair value

 

5,303

 

 

102,020

 

Proceeds from the exit from investment in Securrency, Inc.

 

465

 

 

—

 

Proceeds from held-to-maturity securities maturing or called prior to maturity

 

12

 

 

14

 

Receipt of contingent consideration—Sale of Canadian ETF business

 

—

 

 

1,477

 

Acquisition of Securrency Transfers, Inc. (net of cash acquired)

 

—

 

 

(985

)

Net cash (used in)/provided by investing activities

 

(9,699

)

 

51,936

 

Cash flows from financing activities:

 

 

Dividends paid

 

(9,873

)

 

(9,647

)

Shares repurchased

 

(7,820

)

 

(3,540

)

Repurchase and maturity of convertible notes

 

—

 

 

(184,272

)

Proceeds from the issuance of convertible notes

 

—

 

 

130,000

 

Termination of deferred consideration—gold payments

 

—

 

 

(50,005

)

Issuance costs—convertible notes

 

—

 

 

(3,548

)

Issuance costs—Series C Non-Voting Convertible Preferred Stock

 

—

 

 

(97

)

Net cash used in financing activities

 

(17,693

)

 

(121,109

)

(Decrease)/increase in cash flow due to changes in foreign exchange rate

 

(626

)

 

778

 

Net increase/(decrease) in cash, cash equivalents and restricted cash

 

3,154

 

 

(48,366

)

Cash, cash equivalents and restricted cash—beginning of year

 

129,305

 

 

132,101

 

Cash, cash equivalents and restricted cash—end of period

$

132,459

 

$

83,735

 

Supplemental disclosure of cash flow information:

 

Cash paid for income taxes

$

11,138

 

$

5,900

 

Cash paid for interest

$

6,175

 

$

4,514

 

NON-GAAP FINANCIAL MEASUREMENTS

In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include:

Adjusted Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share

We disclose adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following:

Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating our non-GAAP financial measurements as the gains and losses introduce volatility in earnings and are not core to our operating business.

Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce volatility in earnings and are not core to our operating business.

Imputed interest on our payable to the Gold Bullion Holdings (Jersey) Limited (“GBH”): During the fourth quarter of 2023, we repurchased our Series C Non-Voting Convertible Preferred Stock, which was convertible into approximately 13.1 million shares of WisdomTree common stock, from GBH, a subsidiary of the World Gold Council, for aggregate cash consideration of approximately $84.4 million. Under the terms of the transaction, we paid GBH $40.0 million on the closing date, with the remainder of the purchase price payable in equal annual installments on the first, second and third anniversaries of the closing date, with no requirement to pay interest. Under US GAAP, the obligation is recorded at its present value utilizing a market rate of interest on the closing date of 7.0% and the corresponding discount is amortized as interest expense pursuant to the effective interest method of accounting over the life of the obligation. We exclude this item when calculating our non-GAAP financial measurements as recognition of interest expense is non-cash and contrary to the stated terms of our obligation.

Other items: Gains and losses recognized on our investments, changes in deferred tax asset valuation allowance, expenses incurred in response to an activist campaign, unrealized gains or losses on the revaluation/termination of deferred consideration—gold payments which we terminated in the second quarter of 2023, loss on extinguishment of convertible notes, impairments and litigation expenses associated with certain provisions of our Stockholder Rights Agreement dated as of March 17, 2023, as amended, with Continental Stock Transfer & Trust Company, as Rights Agent, are excluded when calculating our non-GAAP financial measurements.

Adjusted Effective Income Tax Rate

We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.

Gross Margin and Gross Margin Percentage

We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues.

 

GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)

(in thousands)

(Unaudited)

 

 

Three Months Ended

 

Adjusted Net Income and Diluted Earnings per Share:

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

 

 

 

 

 

 

Net income, as reported

$

21,759

 

$

22,111

 

$

19,077

 

$

12,984

 

$

54,252

 

Add back: Expenses incurred in response to an activist campaign, net of income taxes

 

3,234

 

 

526

 

 

—

 

 

—

 

 

3,720

 

Add back/(deduct): Losses/(gains) recognized on investments, net of income taxes

 

998

 

 

(93

)

 

(336

)

 

323

 

 

(2,346

)

Add back: Imputed interest on payable to GBH, net of income taxes

513

 

 

504

 

 

224

 

 

—

 

 

—

 

Add back/(deduct): Increase/(decrease) in deferred tax asset valuation allowance on financial instruments owned and investments

 

391

 

 

(531

)

 

(280

)

 

1,234

 

 

(508

)

Add back/(deduct): Losses/(gains) on financial instruments owned, net of income taxes

 

220

 

 

(1,562

)

 

(370

)

 

1,479

 

 

 

 

762

 

 

(Deduct)/add back: Tax (windfalls)/shortfalls upon vesting of stock-based compensation awards

 

(40

)

 

(699

)

 

(6

)

 

(18

)

 

 

 

33

 

 

Add back: Litigation expenses associated with certain provisions of the Stockholder Rights Agreement, net of income taxes

 

—

 

 

—

 

 

—

 

 

—

 

 

367

 

Add back: Impairments, net of income taxes

 

—

 

 

—

 

 

257

 

 

2,046

 

 

—

 

Deduct: Gain on revaluation/termination of deferred consideration—gold payments

 

—

 

 

—

 

 

—

 

 

—

 

 

(41,361

)

Adjusted net income

$

27,075

 

$

20,256

 

$

18,566

 

$

18,048

 

$

14,919

 

Weighted average common shares—diluted

 

166,359

 

 

165,268

 

 

171,703

 

 

177,140

 

 

170,672

 

Adjusted earnings per share—diluted

$

0.16

 

$

0.12

 

$

0.11

 

$

0.10

 

$

0.09

 

Three Months Ended

 

Gross Margin and Gross Margin Percentage:

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

 

 

 

 

 

 

Operating revenues

$

107,034

 

$

96,838

 

$

90,844

 

$

90,423

 

$

85,724

 

Less: Fund management and administration

 

(20,139

)

 

(19,962

)

 

(18,445

)

 

(18,023

)

 

(17,727

)

Gross margin

$

86,895

 

$

76,876

 

$

72,399

 

$

72,400

 

$

67,997

 

Gross margin percentage

 

81.2

%

 

79.4

%

 

79.7

%

 

80.1

%

 

79.3

%

 

Three Months Ended

Adjusted Operating Income and Adjusted Operating

Income Margin:

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

 

 

 

 

 

 

Operating revenues

$

107,034

 

$

96,838

 

$

90,844

 

$

90,423

 

$

85,724

 

Operating income

$

33,511

 

$

27,950

 

$

26,035

 

$

26,705

 

$

18,181

 

Add back: Expenses incurred in response to an activist campaign

 

4,271

 

 

695

 

 

—

 

 

—

 

 

4,913

 

Adjusted operating income

$

37,782

 

$

28,645

 

$

26,035

 

$

26,705

 

$

23,094

 

Adjusted operating income margin

 

35.3

%

 

29.6

%

 

28.7

%

 

29.5

%

 

26.9

%

 

Three Months Ended

 

Adjusted Total Operating Expenses:

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

 

 

 

 

 

 

Total operating expenses

$

73,523

 

$

68,888

 

$

64,809

$

63,718

$

67,543

 

Deduct: Expenses incurred in response to an activist campaign

 

(4,271

)

 

(695

)

 

—

 

—

 

(4,913

)

Adjusted total operating expenses

$

69,252

 

$

68,193

 

$

64,809

$

63,718

$

62,630

 

 

Three Months Ended

 

Adjusted Income Before Income Taxes:

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

 

 

 

 

 

 

Income before income taxes

$

29,526

$

27,812

 

$

24,765

 

$

18,820

$

57,807

 

Add back: Expenses incurred in response to an activist campaign

 

4,271

 

695

 

 

—

 

 

—

 

4,913

 

Add back/(deduct): Losses/(gains) recognized on investments

 

1,318

 

(123

)

 

(1,003

)

 

426

 

(3,099

)

Add back: Imputed interest on payable to GBH

 

677

 

666

 

 

296

 

 

—

 

—

 

Add back/(deduct): Losses/(gains) on financial instruments owned

 

291

 

(2,063

)

 

(489

)

 

1,953

 

1,007

 

Add back: Litigation expenses associated with certain provisions of the Stockholder Rights Agreement

 

—

 

—

 

 

—

 

 

—

 

485

 

Add back: Impairments

 

—

 

—

 

 

339

 

 

2,703

 

—

 

Deduct: Gain on revaluation/termination of deferred consideration—gold payments

 

—

 

—

 

 

—

 

 

—

 

(41,361

)

Add back: Loss on extinguishment of convertible notes

 

—

 

—

 

 

—

 

 

—

 

—

 

Adjusted income before income taxes

$

36,083

$

26,987

 

$

23,908

 

$

23,902

$

19,752

 

 

Three Months Ended

Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate:

June 30,

2024

Mar. 31,

2024

Dec. 31,

2023

Sept. 30,

2023

June 30,

2023

 

 

 

 

 

 

Adjusted income before income taxes (above)

$

36,083

 

$

26,987

 

$

23,908

 

$

23,902

 

$

19,752

 

Income tax expense

$

7,767

 

$

5,701

 

$

5,688

 

$

5,836

 

$

3,555

 

Add back: Tax benefit arising from expenses incurred in response to an activist campaign

 

1,037

 

 

169

 

 

—

 

 

—

 

 

1,193

 

(Deduct)/add back: (Increase)/decrease in deferred tax asset valuation allowance on financial instruments owned and investments

 

(391

)

 

531

 

 

280

 

 

(1,234

)

 

508

 

Add back/(deduct): Tax benefit/(expense) on gains and losses on investments

 

320

 

 

(30

)

 

(667

)

 

103

 

 

(753

)

Add back: Tax benefit on imputed interest

 

164

 

 

162

 

 

72

 

 

—

 

 

—

 

Add back/(deduct): Tax benefit/(expense) arising from (gains)/losses on financial instruments owned

 

71

 

 

(501

)

 

(119

)

 

474

 

 

245

 

Add back/(deduct): Tax windfalls/(shortfalls) upon vesting of stock-based compensation awards

 

40

 

 

699

 

 

6

 

 

18

 

 

(33

)

Add back: Tax benefit arising from litigation expenses associated with certain provisions of the Stockholder Rights Agreement

 

—

 

 

—

 

 

—

 

 

—

 

 

118

 

Add back: Tax benefit arising from impairments

 

—

 

 

—

 

 

82

 

 

657

 

 

—

 

Adjusted income tax expense

$

9,008

 

$

6,731

 

$

5,342

 

$

5,854

 

$

4,833

 

Adjusted effective income tax rate

 

25.0

%

 

24.9

%

 

22.3

%

 

24.5

%

 

24.5

%

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include statements about:

• anticipated trends, conditions and investor sentiment in the global markets and ETPs;
• anticipated levels of inflows into and outflows out of our ETPs;
• our ability to deliver favorable rates of return to investors;
• competition in our business;
• whether we will experience future growth;
• our ability to develop new products and services and their potential for success;
• our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
• our ability to successfully implement our strategy relating to digital assets and blockchain-enabled financial services, including WisdomTree Prime®, and achieve its objectives;
• our ability to successfully operate and expand our business in non-U.S. markets;
• the effect of laws and regulations that apply to our business; and
• actions of activist stockholders.

Our business is subject to many risks and uncertainties, including without limitation:

• declining prices of securities, gold and other precious metals and other commodities and changes in interest rates and general market conditions can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions;
• fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, including but not limited to events such as a pandemic or war, geopolitical conflicts, political events, acts of terrorism and other matters beyond our control, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity or increase the cost of borrowing upon a refinancing;
• competitive pressures could reduce revenues and profit margins;
• we derive a substantial portion of our revenues from a limited number of products, and, as a result, our operating results are particularly exposed to investor sentiment toward investing in the products’ strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk;
• a significant portion of our AUM is held in products with exposure to U.S. and international developed markets, and we therefore have exposure to domestic and foreign market conditions and are subject to currency exchange rate risks;
• withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins;
• we face increased operational, regulatory, financial and other risks as a result of conducting our business internationally, and as we expand our digital assets product offerings and services beyond our existing ETP business;
• many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline;
• we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors; and
• actions of activist stockholders against us, which have been costly and may be disruptive and cause uncertainty about the strategic direction of our business.

Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly report on Form 10-Q for the quarter ended March 31, 2024.

The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.

Category: Business Update

View source version on businesswire.com: https://www.businesswire.com/news/home/20240726753476/en/

Investor Relations Jeremy Campbell +1.917.267.3859 jeremy.campbell@wisdomtree.com

Corporate Communications Jessica Zaloom +1.917.267.3735 jzaloom@wisdomtree.com