No bad stock

BlackRock, Inc.
CEO : Mr. Laurence Douglas Fink

Quarterly earnings growth(YoY,%)

Laurence Fink says,

Financial Results and Growth

• BlackRock generated $307 billion in net new assets and positive organic base fees in 2022, reflecting the trust of thousands of organizations and investors in BlackRock.
• We estimate that BlackRock captured over 1/3 of the long-term industry flows in 2022, leading the industry and delivering positive organic base fees for the year.
• BlackRock has delivered an aggregate $1.8 trillion in net inflows or 5% average organic asset growth compared to flat or negative industry flows over the past five years.
• BlackRock ended the year with very strong momentum with $114 billion of fourth-quarter net inflows representing 3% annualized organic growth based fees.

Market Environment and Opportunities

• 2022 was a year of transition and a complex market environment, with geopolitical world order transformation and inflation hitting a 40-year high.
• The role of business becomes even more critical than ever, investing to improve long-term prospects and offering hope about the future.
• BlackRock sees many opportunities for our clients to capitalize on market disruption, to rethink portfolio construction, and to consider the renewed income generation potential of bonds or to reallocate sectors that may be more resilient in the phase of elevated inflation.
• Clients are coming to BlackRock to help them pursue generational opportunities in the bond market, and our leading $3.2 trillion fixed income and cash platform is well positioned to capture accelerating demand.
• The need for income and uncorrelated returns against the backdrop of higher inflation and a more challenged market for public equities will continue to drive demand for private markets.

iShares ETFs

• iShares led the industry with $220 billion of net inflows in 2022, offering the most choice in the industry with over 450 ETF choices across our $760 billion iShare fixed income platform.
• iShares bond ETFs generated a record $123 billion of net inflows, with six of the top 10 asset-gathering bond ETFs in 2022 were iShares.
• iShares growth was well diversified across our core equity, our fixed income, factors, sustainable and thematic ETF product categories.

Private Markets and Infrastructure

• BlackRock raised $35 billion in client capital in 2022 led by private credit and infrastructure, successfully scaling successor funds.
• One of the largest opportunities in infrastructure investing over the coming years will be renewable infrastructure.
• Our diversified infrastructure funds are providing social and economic benefits to communities in the United States and around the world.

Aladdin Technology Platform

• Aladdin is foundational to how we serve clients across our platform, delivering precise tracking for our iShares ETFs, allowing us to onboard and service increasingly large complex mandates.
• Periods of market volatility have historically underscored the importance of Aladdin, and in 2022, we saw record net sales of Aladdin contributing to 10% growth in our annual contract value on a constant currency basis.
• We see clients doubling down on technology and leveraging fewer providers to do more with less, evidenced by our mandate this year about half spanning multiple Aladdin products.

Gary Shedlin says,

BlackRock Q4 2022 Earnings Call Summary

• Generated total net inflows of over $300 billion in 2022, with $114 billion of total net inflows in Q4 2022.
• Full-year revenue of $17.9 billion, down 8% YoY while operating income and eps declined 13% compared to 2021.
• Fourth quarter revenue of $4.3 billion, down 15% YoY primarily driven by the impact of lower markets and dollar appreciation on average AUM and lower performance fees.
• Generated record net new sales in 2022 with demand for Aladdin technology solutions never being stronger. Quarterly technology services revenue increased 4% YoY and full year revenue of $1.4 billion increased 7%.
• Full-year as-adjusted operating margin of 42.8% was down 400 basis points YoY primarily reflecting the negative impact of markets and foreign exchange movements on revenue and the ongoing longer-term strategic investments in technology and people.

Q & A sessions,

Aladdin Expansion and Growth

• Aladdin is becoming one of the key enterprise components of the ecosystem in various parts of the world
• Aladdin is well positioned to meet the needs of clients and enhance the Aladdin value proposition
• Aladdin enterprise system can actually lower expenses in a holistic way

Fixed Income ETFs

• The majority of investors in fixed income ETFs are active, not passive
• ETFs are becoming a key component of the entire bond market
• Using bond ETFs to actively invest and express exposures is only the beginning

Organic Growth and Financials

• Driving organic growth is critical for BlackRock’s PE multiple
• Despite revenue run rate being down, BlackRock delivered over $300 billion of net inflows in 2022
• Aggressively managing the pace of hiring and discretionary spend to free up investment capacity
• Expecting a mid- to high single-digit increase in core G&A expense for next year