Moelis & Co (MC, Financial) released its Q3 earnings report on November 2, 2023. The company reported a 19% increase in Q3 adjusted revenues to $277.7 million, up from the same period last year. However, the company reported a GAAP net loss of $0.16 per share for Q3 2023 and $0.28 per share for the first nine months of 2023. Despite the net loss, the company declared a regular quarterly dividend of $0.60 per share.
Financial Performance
MC's GAAP revenues for the first nine months of 2023 were $639.9 million, while adjusted revenues for the same period were $645.2 million, down 16% from the prior year period. The company's GAAP net loss for the first nine months of 2023 was $21.1 million, or $0.28 per share. On an adjusted basis, the firm reported a net loss of $10.1 million, or $0.14 per share in the first nine months of 2023.
Company Growth and Strategy
Despite the net loss, MC continues to execute its growth strategy. The company launched a Clean Technology Group during the third quarter and hired 24 Managing Directors year-to-date, focusing on Clean Technology, Metals & Mining, Power & Utilities, and Industrials.
Balance Sheet and Dividend Declaration
MC maintains a strong balance sheet with cash and short-term investments of $297.8 million and no debt or goodwill. The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.60 per share, which will be paid on December 22, 2023, to common stockholders of record on November 13, 2023.
Looking Forward
Ken Moelis, Chairman and Chief Executive Officer, expressed confidence in the company's growth strategy, stating, "Our aggressive senior banker hiring throughout the year has enhanced our coverage of the largest sector fee pools and has significantly improved the Firm's earnings power once the M&A cycle turns."
Despite the challenges, MC continues to maintain a strong financial position and is committed to executing its growth strategy to enhance shareholder value.
Explore the complete 8-K earnings release (here) from Moelis & Co for further details.
