Participants

Jeremy Campbell; Director of Investor Relations; Wisdomtree Inc

Bryan Edmiston; Chief Financial Officer; Wisdomtree Inc

Jonathan Steinberg; Chief Executive Officer, Director; Wisdomtree Inc

Campbell Jeremy; Head of Investor Relations; WISDOMTREE INC

Jeremy Schwartz; Executive Vice President, Global Head of Research; Wisdomtree Inc

R. Jarrett Lilien; President, Chief Operating Officer; Wisdomtree Inc

Brennan Hawken; Analyst; UBS

George Sutton; Analyst; Craig Hallum

William Peck; Head of Digital Assets; Wisdomtree Inc

Michael Cyprys; Analyst; Morgan Stanley

Mike Grondahl; Analyst; Northland Securities

Presentation

Operator

Greetings and welcome to the Wisdom Tree third quarter, 2024 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone you require operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jeremy Campbell, head of Investor relations. Thank you, Jeremy Campbell. You may begin.

Jeremy Campbell

Good morning.
Before we begin, I would like to reference our legal disclaimer available in today's presentation.
This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995.
A number of factors could cause actual results to differ materially from the results discussed, informed leading statements including but not limited to the risks set forth in the presentation in the risk factor section of wires. Annual report on form 10 K for the year ended 1231 2023. And in subsequent reports filed with or furnished to the securities and exchange commission with Andre assumes no duty and does not undertake to update any forward-looking statement.
Now, my pleasure to turn the call over to Wisdom Tree, CFO Bryan Edmiston.

Bryan Edmiston

Thank you, Jeremy and good morning everyone.
I'll be covering our third quarter results along with commentary on our forward-looking guidance. Before turning the call over to Jono for additional updates on our business.
We ended the quarter with record AUM of 112.6billion.
Notwithstanding the 2.4 billion of outflows we observed during the third quarter, the outflows were largely from our currency hedged Japan product, DXJ, our floating rate treasury product USFR and tactical commodity trading.
While Floats proved to be a headwind. This quarter, favourable market conditions ultimately drove out a higher and to record levels.
We also remained very active on the capital management front over the last year and a half, we've delivered highly accretive transactions including the retirement of our gold royalty obligation and the repurchase of preferred stock from the World Gold Council, which was accomplished on favourable terms.
During this quarter. We repurchased the preferred stock convertible into 14.75 million shares of common stock from ETFS capital for 144 million or 975 per share.
This transaction had no restrictions and has no impact on ETFS capital's voting threshold which remains at approximately 10% of shares outstanding.
Our decision to pursue this repurchase was preconditioned on our ability to achieve a creative outcome.
This required us to raise financing through the issuance of new convertible notes and afforded us the opportunity to retire a substantial portion of our notes maturing in 2028 which we're currently in the money.
We also repurchased 5.7 million shares of our common stock in connection with the raise taken all together, we raised an incremental 240 million of convertible notes while reducing the interest rate from 5.75% to 3 and a quarter. An increase in the conversion price from 954 to 1,182.
The proceeds from the financing were used to reduce our diluted shares by approximately '20 million and ultimately led to a 9% accretive transaction.
Our record a continues to drive revenue growth and expanding margins while capital management actions further accelerate EPS growth.
Next slide, our adjusted revenues were 109.4 million during the quarter. An increase of 2.3% from the second quarter and up approximately 20.5% versus the prior year quarter driven by higher average AUM the comparison versus the prior year quarter also includes higher other revenues attributable to our European listed products which have grown meaningfully and represents substantial revenue capture away from the expense ratio, providing further revenue diversification on a year-to-date basis. Our adjusted revenues have grown over 20% and our adjusted operating margin was 34.3% representing expansion of over 820 basis points versus the prior year or 590 basis points organically, when adjusting for the impact of our gold royalty buyout, which was accomplished in May of last year.
Our adjusted net income for the quarter was 28.8 million or '18 cents per share.
Next slide.
Now, a few comments on our forecasted guidance, our discretionary spending was 45.4 million a year-to-date.
We are narrowing our full year discretionary spending guidance to range from 62 to 65 million previously 64 to 68 million.
The range considers fourth quarter seasonality and is also largely dependent on the magnitude of marketing spend associated with wisdom tree prime over the remainder of the year.
Our annual adjusted interest expense guidance is being updated to be approximately '16 million previously '14 million due to the incremental debt raised to facilitate the repurchase of preferred stock from ETFS capital as well as the repurchase of 5 million shares of common stock as well.
Our adjusted interest expense run rate should be about 5 million per quarter which is a reminder excludes interest costs. We are required to impute under GAAP related to our interest-free financing of the shares we purchased from the World Gold Council last November.
Our interest income year-to-date was 4.6 million and we are updating our interest income guidance for the year to be about 6 million previously 5 million based upon the magnitude of our forecasted interest earning assets and our weighted average deleted shares were 156,7million. During the third quarter, we anticipate our weighted average diluted shares to be 147 to 148 million in the fourth quarter. Taking into consideration the full quarter impact of the '20 million shares repurchased in August.
As a reminder, this guidance does not take into consideration any variability in shares associated with our convertible notes.
Our compensation gross margin, third party distribution and tax guidance remains unchanged from last quarter.
That's all I have. I will now turn the call over to Jared.

Thank you, Bryan and good morning, everyone as Bryan noted the third quarter was driven by falling interest rates, a weaker dollar profit taking in commodities and typical summer seasonality which weighed on our net flows. However, despite these headwinds, we made meaningful progress across several fronts and ended the quarter at record levels. During the quarter, we achieved record as of 113 billion. Highlighting the sturdiness of our business model and the strength of our product offering.
Our disciplined execution and years of smart management are paying off as we also recorded our highest revenue figures to date and continued expanding our operating margins, scale benefits and cost discipline helped us deliver over 800 basis points of operating margin expansion compared to the same period. Last year, this margin growth coupled with state strategic actions such as the issuance of the convertible note and the simultaneous stock buyback that Brian mentioned significantly boosted shareholder value. This transaction alone resulted in a 9% boost to earnings versus prior forecast overall. Our focus on growth margin expansion, smart capital management and strategic growth initiatives helped drive an 80% increase in earnings versus the year ago period.
Looking ahead, we remain optimistic about our global product suite and our alignment with key secular growth drivers in both wealth and asset management. One of those secular drivers is our models, business driven by continued demand for flexible and efficient portfolio solutions. We continue to expand our accessible market with a number of advisors able to access our models set to grow from 70,000 to 85,000 in the coming weeks.
In addition to expanding our reach, deepening penetration within the existing adviser base remains a priority. The number of advisers actively using at least one of our models grew to more than 2,500 this quarter. Reflecting steady progress. There's still ample room for growth in building stronger relationships and broadening adoption continue to be key objectives. By fostering these deeper relationships. We are enhancing asset retention and generating more predictable higher quality revenue streams. In summary, despite market dynamics and seasonality, this was a strong quarter, achieving record AUM expanding margins and delivering robust earnings growth as we move forward, we will continue to align with key secular growth drivers and we will continue to leverage our scalable model and exercise, disciplined expense and capital management. I'll now turn it over to John to share more about our strategic initiatives.

Jonathan Steinberg

Thank you, Jared.
Good morning, everyone and thank you for joining us.
I'm pleased to share WisdomTree third quarter results and provide an update on the progress we've made as already discussed. We generated strong earnings this quarter and while the market has its challenges, we remain confident in our positioning and the steps we are taking to shape the future. Our assets under management reached a record 113 billion. Our operating margin expanded by 800 basis points to a 37.3% operating margin in the quarter. And we saw earnings per share grow by 80% year over year.
These results underscore our disciplined execution and the strength of our business model.
While today's call reflects strong financial performance, I want to focus on an area that we believe will be transformative for Wisdom tree in the future tokenization, we are positioning ourselves as an early mover in this space. And our strategy is anchored around three distinct platforms.
Wisdom tree, prime, wisdom tree connects, and both are built on top of our third, the Token issuance platform.
Let's start with an update on Wisdom Tree prime or direct retail platform. Many of you are already familiar with Prime, which is designed to bring Blockchain enabled finance directly to consumers. We are on track to make prime available across the US by year end. And we're continuing to build momentum by adding valuable features to enhance the user experience.
For example, we recently launched dynamic spending functionality that allows customers to spend directly from their money market fund balances via a debit card. This is just the beginning. We are planning to expand dynamic spending to other asset classes soon. And our product road roadmap is robust with several exciting updates on the horizon.
Now let me introduce a newer component to our tokenization vision Wisdom Tree connect the vision for Wisdom tree connect is to enable customers over time to interact with any wisdom tree issued token in any wallet across supported blockchains. Wisdom trees connect marks the first time Wisdom Tree digital funds will be available directly to clients with their own wallet infrastructure including businesses and other institutional users. Wisdom trees connect is our business-to-business platform for tokenized product distribution, but also sets Wisdom tree up to serve many other use cases in the future. We announced Wisdom Tree Connect just a few weeks ago and I'm happy to report that it is now live and is already onboarding institutional users.
Finally, let's talk about our infrastructure that underlies these customer facing platforms. Our token issuance platform, this platform represents our ability to tokenize a broad range of product either for ourselves or on behalf of or on behalf of others. The vertical integration of our tech stack is a key advantage allowing us to expand our Blockchain enabled products week without relying on external partners.
Looking ahead, the Token Issuance platform could open up additional growth opportunities for wisdom tree, whether through tokenization as a service or other an ancillary revenue streams.
We see significant potential in these three platforms as we continue to scale and innovate to meet the needs of this exciting emerging opportunity together, wisdom to prime wisdom to connect and the Token issuance platform form the backbone of our tokenization strategy. While we aren't disclosing every initiative because of competitive considerations. I want to emphasize that we are making substantial progress behind the scenes.
The optionality embedded in these platforms is considerable and we believe they will create meaningful revenue opportunities.
Looking ahead, we remain optimistic. The steps we are taking now are laying a foundation for sustainable growth.
Long term with our tokenization strategy in place along with our ongoing focus on innovation and customer centric product development in the global ETF industry. We believe wisdom tree is particularly well positioned to capitalize on the evolving financial landscape.
Thank you operator. Please turn the call over to our head of investor relations, Jeremy Campbell to take some questions from our shareholders.

Question and Answer Session

Campbell Jeremy

All right, thanks John and good morning, everybody. Some of the prior quarters, we're going to take a couple of questions from the retail shareholders and then open it up to the analyst community on the slide.
So I'm going to direct this first question to Jeremy Schwartz our global CIO and question for Jeremy is what are the implications of the election on your broad market outlook for the next year and wires, product suite in particular?

Jeremy Schwartz

All right, Jeremy, very good question. The most topical things around the election and the current market, I think centre on three core issues. First, the US markets look more expensive than normal and that implies a little bit lower, forward-looking returns and returns that they've experienced. You have debt and deficits abound and all forecasts regardless of the election outcomes say we still have a lot of debt issuance and there's sustainability questions around that and heavy countries managed these kind of debt loads and deficits. Well, it tends to be inflation and people countries tend to inflate away debt. So, there's no question. Investors are looking for assets that protect from inflation, especially right now. And with deficit concerns, you want less exposure to the long end of the bond market. The book I coauthored with Professor Siegel Stocks for the long run shows why we think stocks are the ultimate inflation hedge as companies pass along higher input costs for higher prices. So, stocks, we see as real assets and the ultimate real asset. But commodities in our book of Commodity Business like gold, you see that moving substantially higher this year is proving a very useful inflation hedge. With all the extra geopolitical conflicts we have around the world and the debt concerns the inflation concerns. We see clients still under allocated to commodities at large and we have opportunities to grow that space globally. But at a high level, I love our positioning of our and revenue breakdown. Given those three central considerations for the market, particularly think about a standard 6,040 stock bond portfolio for the markets at large. Our run rate revenue is now 70% global stocks, 20% commodities, a little bit less than 10% fixed income skewed to short duration solutions, which is very attractive given that market cycle and the market backdrop and on valuations. While the S&P is '22 times earnings, the US is definitely the best growth market in the world. Higher multiples bring higher risk of disappointment. When you look at our 60 billion in equities that we manage, we have an aggregate P/E ratio of just '16 times earnings across that 60 billion. And that's a 6.5% earnings yield versus you know, something like 4.6 for the S&P 500. That's a quite attractive value proposition for our equity book of business on fixed income after the fed cut 50 basis points. There's a lot of commentary about adding to duration.
Our economics team advised that was wrong. The eel curve remains inverted. That is not its natural state. We do not think the inversion will last forever. Our senior economist, again, Professor Siegel has said the '10 years should become union and closer to 4.5 to 5%. And so, you know, while we've diversified our fixed income exposures as a firm, we've had more launches innovative, interesting solutions to ad duration. We're also quite happy with the exposures that we have and where our Book of Business today is today, we see the 6 trillion in money market funds still growing. We see a compelling case for them to keep growing banks don't pay you appropriate interest rates on the vast majority of their client accounts. So, there's opportunities still to grow us for or floating rate treasury TF it's a compelling solution for advisers who want to earn better returns in their cash. And you heard John talk about the debit card that is also quite an exciting technology we could leverage across our client base spending off of higher earning assets. So that's also quite exciting. But in summarizing for the election for the current backdrop, we think we're very well positioned to address all the client needs. Looking ahead.

Campbell Jeremy

Great, thanks Jeremy. I going to direct this next question to our President and COO Jarrett Lillian Jarrett. The question is, can wisdom tree still expand operating margins from current levels?

R. Jarrett Lilien

Yeah, thanks. Look, operating margins are something that we pay close attention to, and we think we have years of margin expansion ahead of us. And that is due to our confidence, our confidence in growth, but coupled with our high incremental margins, which are over 50% and our confidence and growth stems from having a really broad and deep product set product suite that we feel can win business in any market environment. But then, you know, just jumping on to what Jeremy was just talking about, our outlook for the market seems to fit extremely well with our product suite. And then we've got our models business that provides steady and sticky flows, our leadership and tokenization. So, we have all of these growth initiatives that give us a lot of confidence in continued growth. And again, you take strong growth prospects, you couple those with high incremental margins and smart management. And the result is again, our confidence in margin growth that will continue to expand for the next several years.

Campbell Jeremy

Great, thanks, Jarrett. Operator. Please feel free to open up the lines to field some questions from our analysts.

Operator

Thank you. And I'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your slide as in the question queue, you may press star two to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Our first questions come from the line of Brennan Hawken with us. Please proceed with your questions.

Brennan Hawken

Good morning. Thanks for taking my question. Interesting to see the expansion that you laid out on prime. I don't think that you've indicated this in the past, but maybe as you continue to expand the use cases, we can get a little greater colour into, you know, what kind of impact the prime investments are having on the P&L you know, what's, what's a rough approximation for annual spend on this continued development?

Jonathan Steinberg

Brian, do you want to take this?

Bryan Edmiston

Yeah. Our forecast they were forecasted to be low in the low to mid 20s for, for this year, Brennon.

Brennan Hawken

Okay. Okay. Got it. I think, I think that's up from a few years ago where I want to say it was like high 10s,

Bryan Edmiston

It was high 10s, correct? That's right.

Brennan Hawken

Okay, great. Thanks. And then do you guys have any stats or indications? Of course, it's too early for the new B to B. But the consumer platform has been out there for a few years now, you know, what statistics can you share that would suggest the take up rate, you know, and, and where consumers are, you know, and how it's resonating so that we can understand, you know what the RO I has been on this.

Jonathan Steinberg

Thanks Brendan. So, as you said, I think on last fall, we'll update our statistics on digital asset on Q4 as we give guidance for the year ahead and we'll establish a baseline on digital assets. And though we began rolling out prime about a year ago, it's still only in something like 85% of the country. So, it has been a challenging regulatory environment to roll this out to, has taken longer than we anticipated. To that earlier question about the elections. We do think the upcoming election will be constructive for the development of digital AETS going forward regardless of who wins, maybe particularly if Trump wins, but regardless of who wins. And so, we'll give you more guidance on the next call.

Brennan Hawken

Okay. Didn't mean to try to front run there and, and yeah, I to that point, John O I saw it's, it's available in New York, I just downloaded this morning. So, looking forward to checking it out. Thanks.

Jonathan Steinberg

Good. Appreciate it.

Operator

Thank you. Our next questions come from the slide of George Sutton with Craig Hallum. Please proceed with your questions.

George Sutton

Thank you. I'm a wisdom, dream prime user here in Minnesota. So, I wondered if you could answer relative to what will soon be 85,000 advisors. What is currently 2,500 of those advisors using your models? Can you just talk about, you know, what is the midterm expectation for where that penetration can grow? You talked about trillions of dollars sort of being exposed as opportunity there just want to get a sense of what you're thinking more on a midterm basis.

Yeah. So, this is chair.
Yeah. Yeah, this is, this is Jared. So, you know, you put your finger on it. We've been focused on a couple of things growing that accessible market and, and actually it's, it's grown bigger. We've had some nice wins there. We had been talking about that being 70,000 and now we, we, we've got that to or to 85,000. And actually, I think that will continue to grow as well, but the rubber really hits the road with how with our penetration. And last year, we added 1,000 advisors. And I think that's a reasonable baseline. I'd hope we could actually do better than that as we get sort of better at onboarding. But as I've talked about many times before, there are really multiple wins. You first have to win to get yourself on the platform and then you need to really go into hand-to-hand combat and win each advisor. So, we've had great success with those first wins getting on the platforms. And now we're also having success with that hand-to-hand combat. So, there's a, there's momentum building, but I think a baseline expectation, you could, you could use 1,000 a year.

Jonathan Steinberg

But I will say that we recently added an expanded portfolio consultation service which I believe will lead to wider model adoption as well. So, I mean, it's an area that we've invested in like Jared had said on the earlier question and the baseline is 1,000 new advisors a year.

Yeah. And again, that's why I think it's a good baseline. But you know, our hope would be even to be able to do better net because as we get in there, we learn more about how to more quickly interact, how to better service things like John just mentioned, the consultations. That's a great example of a takeaway from onboarding that there are additional services that we can provide that make us a better partner. So, we're still, we're still very happy, very encouraged and very optimistic about the growth here.

George Sutton

Great. And then just my second and last question for Jono relative to broadening out wisdom free prime or adding wisdom tree connect. It's interesting because you're also bringing down your guidance a little bit for discretionary spend. So, I wondered if you could just sort of give us a sense of, are there new efficiencies you're finding or is it just holding off on some of the marketing spend until you have the national distribution?

Jonathan Steinberg

There's definitely more efficiencies. We're constantly looking at efficiencies. It's a constant part of the, the job. And we, and the business model is certainly showing that as we scale. It's just a very strong business model. There is a little bit of the rolling out prime a little more slowly as it's taken longer to get the full rollout of states as well as additional services. But it's very much as it was at the beginning of last year when we gave the guidance that it would be a very iterative approach to the rollout. It it'll be the same next year as well. I don't want to front run the guidance, but we're still in a very early stages but still very optimistic.

William Peck

And John, if I could jump in here, hey, it's will tech head of digital assets. I mean, one of the great things with WisdomTree Connect is that, you know, it's great to get that platform out there. That's always been part of the plans, part of the investment we've been making, excuse me in this platform and that's not reliant on kind of discretionary marketing spend, right? That's a people kind of a brand business where we've got lots of one-on-one relationships able to get different sort of institutional and platform sales. So that's something we're excited about, which should have a relatively high or I in terms of getting customers on that platform.

Jonathan Steinberg

Thanks for that.

Operator

Thank you. Our next questions come from the line of Michael Cyprus with Morgan Stanley. Please proceed with your questions.

Michael Cyprys

Oh, hey, good morning. Thanks for taking the question when we look at the 2,500 advisers that are using at least one of your models. Just curious how embedded you are with that group of 2,500 advisers. In other words, I guess, as you look across, you know, what portion have adopted your models across most of the book versus what portion of those 2,500 advisers have more limited usage of your models from, from, from their customer set. And what are some of the steps that you can take to drive greater penetration and adoption even within that 20,500 advisor force?

Jonathan Steinberg

Jared, do you mind if I start, you know, it's early days, it's early days in the models business and there definitely is a snowballing effect. And so, to your question of how we penetrated the 2,500 advisors, it's early days with many of them, performance has been very strong, and we are anticipating those 2,500 advisers will continue to roll our model's business out more broadly to their full book of business. So, to that point, very early, but Jared, please add anything.

The only thing I would just add is again, we always talk about, you know, positioning ourselves in front of the major secular moves in the industry. One of them, you know, you could say is tokenization. Another one obviously is ETF, but another one is the use of models by financial advisors. And so, we're out in front of a trend, the money is moving in that direction. So, the advisers that we are working towards some are new advisors who are starting their practice and they'll be models only. And we're in with them early and we'll grow as they grow and with others, we're transitioning, we're helping them transition from, you know, many models or, you know, no real centralized model to more of a centralized the, that makes them more scalable and more effective. So, I agree, agree entirely Jono, its early days, but we're there at the early stages of, of advisers utilizing models and so we will penetrate more. We're seeing that and we're also seeing that as our advisors grow, we grow

Michael Cyprys

And just any sense on how much that's contributing to flows. I think you mentioned 3.5 billion of AUM across these models today with the 2,500 advisers is how much to flows. How is that progressing? How persistent is that? What sort of volatility do you see associated With That?

You know, generally we've said between '10 and 12%. And again, I'd like to see that percentage increase, but that's been holding as a as a pretty good proxy.

Michael Cyprys

And if I could just ask a follow up question on the digital funds that you launched the digital Money Market Fund, I think you mentioned it's available for clients including institutions, just curious what sort of feedback you're hearing so far on the institutional customer side, maybe talk about your approach to building out that customer set a bit more and what's the scope for or interest in partnering with other maybe intermediary platforms, including those in the digital space that have large retail customer sets.

Jonathan Steinberg

Will you take that? Yeah.

William Peck

Yeah, definitely. So right now, there's $177 billion in Stablecoins, USD, stablecoins worldwide and we've got 2 billion in tokenized treasury money market funds a lot of that being kind of from offshore jurisdiction. So, I expect over time, the stablecoin market is going to continue to grow. And we're also going to see a much higher penetration of yield bearing assets like this, which really serves a similar need, but is a much better product in a lot of ways than what you're seeing out there. So right now, we're seeing a lot of great kind of initial demand for this type of product that's really meeting a need for the crypto native community. And we're looking forward to continuing to move the ball forward there.

Michael Cyprys

Any interest scope for partnerships with direct-to-consumer intermediary platforms that may have interest in. It seems like this could be an interesting product fit nicely on some of those platforms.

William Peck

100% I mean, I think the B to B to C model and this is exactly what wisdom to connect opens up for us. So, there's a lot of initial early conversations on that now and I expect over time that's going to really pick up going forward.

Jonathan Steinberg

Great. And we're onboarding customers already since we launched it just a few weeks ago.

Operator

Thank you. Our next questions come from the line of Mike Grondahl with Northland Securities. Please proceed with your questions.

Mike Grondahl

Hey, guys, thanks. Two questions. One is just any new or newer ETF just to call out how they're doing, what kind of reception you're seeing.
And then secondly, you've clearly had some really nice momentum here in the business. What is kind of two priorities you guys have for '25 to kind of keep this momentum going? Thank you,

Jonathan Steinberg

Jeremy. Would you talk about Q grow and maybe something else that you might want to highlight?

Jeremy Schwartz

Sure. Yeah, we, I mentioned in my opening comments about the market backdrop, just, you know, the, the valuations on our whole book of business being '16 times when the S '22 but we did launch one of our franchises is quality and we've always had a quality dividend franchise. And our largest fund in the US is quality dividend growth. It's approaching '15 billion in equity in in US assets with a decade history. But there are a lot of feedback is can you apply your quality franchise to the growth side of the universe? And when you think when you look at how QGRW launched at the end of 2022 so it's not quite even two years old. It's got about a half a billion. Now in the US, it's been beating the NASDAQ, which has been one of the toughest benchmarks to beat. And, you know, it, it's held a lot of those sort of large Magnis seven stocks. But it won't always, you know, it's got a bunch of proprietary screens to try to identify the best growth stocks in the market. And it will be interesting to see as that evolves over time. But it's been a strong performer since launch, both from an actual relative performance versus the NASDAQ, but also from an A UN perspective, we launched it in Europe. And so, I think we, we were very excited about that, which leverages the core wisdom tree process. And then we're doing other really interesting things in Europe. You know, we're doing a lot more with thematic. We were excited about a new megatrend fund that's sort of rotating between thematic and performance has been strong. We're excited about where that's going to go. And crypto in Europe has been, you know, one of the leading platforms for crypto products in Europe. We have good expectations for that continuing next year.

Jonathan Steinberg

Thanks Jeremy, Mike. What was the second half of your question?

Mike Grondahl

Yeah, just, hey, you guys have had really nice momentum in the business to keep that momentum going. What are, what are two major priorities for 2025 as you kind of start to look forward?

Jonathan Steinberg

You know, we're going to give our guidance next quarter, but I, I would just say that we'll continue on the secular trends that we've invested against for the last few years. So, we're going to continue to invest in product globally. We're going to continue to invest in our portfolio solutions. We're going to continue to roll out digital assets and tokenization of functionality and lastly, always watch for creating additional efficiencies throughout the business. So, I think it'll be more of the same, fair enough. It's working. Thanks guys. Thank you. I appreciate that.

Operator

Thank you. We have reached the end of our question-and-answer session. I would now like to hand the call back over to Jonathan Steinberg for any closing comments.

Jonathan Steinberg

I just want to thank all of you for your time and consideration and we will speak to you next quarter. Have a great day, everybody.

Operator

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.