BlackRock, Inc. Q1 FY2025 earnings call

• BlackRock achieved 6% organic base fee growth, with record AUM of $11.6 trillion and $84 billion net inflows in Q1.
• Key acquisitions include GIP, Preqin, and Viridium. Issued $1 billion of euro-denominated 10-year debt.
• Strong ETF performance with $107 billion net inflows; private markets saw growth in infrastructure and private credit.
• Technology services and subscription revenue up 16%, with annual contract value (ACV) increasing 30% year-over-year, including the Preqin acquisition.

BlackRock's first quarter of 2025 saw revenue of $5.3 billion, a 12% year-over-year increase. Base fees and securities lending revenue were $4.4 billion, up 16% year-over-year. Operating income was $2 billion, up 14%, and earnings per share were $11.30, up 15%. Total AUM reached a record $11.6 trillion. ETF net inflows were $107 billion, with core equity and fixed income ETFs leading with net inflows of $46 billion and $34 billion respectively. Private markets saw net inflows of $7 billion, driven by infrastructure and private credit. Organic base fee growth was 6%, driven by client demand for private markets, ETFs, and systematic strategies.

• Anticipate repurchasing at least $375 million of shares per quarter for the balance of 2025.
• HPS transaction expected to close mid-2025, subject to regulatory approvals.
• Viridium transaction expected to close in the second half of 2025, subject to regulatory approvals.
• Expect scaling of private credit AUM with the HPS acquisition, and continued growth in private markets and ETFs.

• Regulatory approvals needed for HPS and Viridium transactions.
• Uncertainty in fiscal and monetary policy impacting market conditions.
• Competition in the ETF market, such as Vanguard's fee cuts posing potential challenges.

Q: Thoughts on retail and institutional allocations shifting?

A: No capitulation seen, interest in fixed income and equities, with systematic equity inflows. Clients are also showing continued interest in infrastructure strategies.

Q: Private markets in retail target date funds?

A: BlackRock has glide path technology for target date style products, using Preqin data for better transparency, with plans for target date offerings embedding private markets.

Q: International expansion and acquisitions?

A: Strategic partnerships in India, LatAm, and Europe, with a strong presence in Europe (40% iShares market share) and ongoing local engagement in various countries.

Q: ETF fee rate and competition?

A: 6% organic base fee growth, no price changes in Q1, confident in positioning with $107 billion ETF net inflows, and expecting positive leverage to growing stock markets outside the US.