Perella Weinberg Partners (PWP, Financial) released its Q3 2023 earnings report on November 7, 2023. The company reported revenues of $139 million, marking a 4% decrease from the same period a year ago. The Adjusted Operating Income Margin was 8.5%, while the GAAP Operating Loss Margin was (19.2)%. The company reported an Adjusted EPS of $0.12 and a GAAP Diluted EPS of $(0.27).
Financial Overview
For the nine months ended September 30, 2023, PWP's revenues were $436 million, a decrease of 3% from a year ago. The Adjusted Operating Income Margin was 8.9%, with a GAAP Operating Loss Margin of (16.3)%. The Adjusted EPS was $0.37, while the GAAP Diluted EPS was $(0.84).
Expenses and Income
GAAP total compensation and benefits were $127.8 million for the third quarter of 2023, compared to $123.3 million for the third quarter of 2022. Adjusted total compensation and benefits were $93.0 million for the third quarter of 2023 as compared to $93.0 million for the same period a year ago. The increase in GAAP total compensation and benefits was due to a higher compensation margin combined with the impact of business realignment costs associated with employee reductions undertaken year-to-date to improve compensation alignment and to provide for greater flexibility to advance strategic opportunities.
Balance Sheet and Capital Management
As of September 30, 2023, PWP had $196.6 million of cash and short-term investments in U.S. Treasury securities. The Firm has no outstanding indebtedness and has an undrawn revolving credit facility. During the nine months ended September 30, 2023, PWP returned $57.5 million in aggregate to its equity holders.
Future Outlook
PWP continues to execute on its strategic priorities, attracting top talent to its platform and expanding its client coverage footprint. The company is well-positioned as market conditions improve and remains focused on serving its clients, confident that its efforts will create significant value for shareholders over time.
Explore the complete 8-K earnings release (here) from Perella Weinberg Partners for further details.
