WisdomTree, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the WisdomTree Q4 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to turn the call over to your host, Jessica Zalou, WisdomTree's Head of Corporate Communications. You may begin.

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 1995. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation and in the Risk Factors section of the WisdomTrees Annual Report on Form 10-K for the year ended December 31, 2020, and quarterly reports on Form 10-Q for the quarters ended June 30th, 2021 and September 30th, 2021. WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to WisdomTree President and COO, Jared Lillian.

Thanks, Jess, and welcome, everyone. I'm going to start the call today discussing the highly successful quarter and year we just concluded. the strong momentum we are riding into 2022, and some high-level thoughts on our 2022 plan. I will then turn it over to Brian to walk through Q4 results in more detail and provide an update on 2022 expense guidance. After Brian, Jono will provide an update on our strategic initiatives and digital assets, including WisdomTree Prime, our new direct-to-customer mobile app, And then we'll open it up for Q&A. So, starting with Q4, the momentum has continued with strong organic growth in the quarter. Our 1.9 billion of organic flows marked our fifth consecutive quarter of inflows, accentuated by tremendous breadth and depth, with three times as many funds having inflows and outflows. And the momentum has continued into January, where we have generated over 600 million of net inflows, a rate that is outpacing 2021 flow levels, even in the face of a volatile market environment. Looking at 2021 in total, it was a highly successful year, showcasing smart investments and growth, coupled with increased efficiency and disciplined P&L management. For 2021, revenues increased 22%, operating margins expanded by over 30%, and operating income increased by 60%. As we look ahead to 2022 and beyond, we are entering a new chapter, one that leverages core competencies and stays true to our core mission, vision, and values, and is marked by a focus on strengthening and evolving our business, leveraging existing momentum, and adding additional fuel for future growth. In distribution, we will continue to invest in sales and marketing to gain even greater client mindshare. We will also launch WisdomTree Prime, adding a new direct-to-client distribution channel that brings us even closer to the end customer. On product, we remain committed to being an industry leader and on the cutting edge of providing products and solutions. In 2022, we plan to launch as many as 30 new exchange-traded products globally, including our recently announced family of artificial intelligence funds. We will also gain further traction in our managed models business, reaching more advisors through our current partners while also winning new mandates. At the same time, we will gain further traction in transparent crypto exposures through ETPs in Europe, and direct indexing in the U.S. And as Jono will unpack further in a bit, we will launch tokenized versions of mainstream assets. At the same time, we will continue to find ways to leverage our increasing scale, continue to exercise disciplined expense management, and continue to strengthen and evolve our operating model. Whether it's through ETPs and model flows or unlocking new revenue streams through tokenized assets and WisdomTree Prime, our revenue and operating income over the next several years will be stronger, more diverse, with better organic growth than in prior years. Finally, we will continue to leverage and invest in our talented team. In addition to the recent announcement that Harold Singleton has joined our board of directors, adding expertise and a fresh perspective, I was proud to see us recognized for the second consecutive year as the best places to work in the US and a great place to work in the UK. All in all, we had a very successful Q4 in 2021. We are executing well and carrying momentum into 2022, and we are excited about our positioning in the US and in Europe and in our ability to differentiate, generate organic growth and fuel upside. And now I'll turn it over to Brian to walk through the numbers.