BlackRock Reports Full Year 2023 Diluted EPS of $36.51, or $37.77 as Adjusted

January 12, 2024 at 05:59 AM EST

BlackRock Announces Agreement to Acquire Global Infrastructure Partners (“GIP”) – Creating a World Leading Infrastructure Investment Platform

BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2023.

BlackRock’s acquisition of GIP will create a combined infrastructure platform of over $150 billion*, well positioned to meet fast-growing investor demand

$10 trillion in AUM following $289 billion of full year net inflows, including $96 billion in the fourth quarter

Flat full year revenue primarily driven by the negative impact of markets on average AUM, partially offset by higher technology services revenue

Restructuring charge of $61 million from initiative to reorganize specific platforms, primarily Aladdin and illiquid alternative investments, to stay ahead of client needs, excluded from as adjusted results

2% decrease in full year operating income

7% increase in full year diluted EPS also reflects significantly higher nonoperating income, partially offset by a higher effective tax rate in the current year

$4.5 billion returned to shareholders in 2023, including $1.5 billion of share repurchases

2% increase in quarterly cash dividend to $5.10 per share approved by Board of Directors

Laurence D. Fink, Chairman and CEO:

“BlackRock delivered differentiated organic growth and operating margin through historically challenging market and industry conditions in 2022 and 2023. As we’ve seen before, when investors were ready to put money back to work, they did it with BlackRock. Clients entrusted us with $289 billion of net inflows in 2023, including $96 billion in the fourth quarter. We enter 2024 with strong momentum – $10 trillion in AUM, accelerating flows, and an organization positioned for the future.

“Today, we are announcing two transformational changes in anticipation of the evolution we see ahead for asset management and the capital markets. The strategic re-architecture of our organization will simplify and improve how we work and deliver for clients. And our acquisition of GIP will propel our leadership in the fast-growing market for hard-asset infrastructure.

“Our clients’ needs have been our compass. Listening to them and applying that to our vision for the future of our industry drove our innovation in Aladdin, and how we led a revolution that made iShares ETFs ubiquitous.

“We always viewed ETFs as a technology, a technology that facilitated investing. And just as our Aladdin technology has become core to asset management, so too have ETFs. That’s why we believe embedding our ETF and Index business across the entire firm will accelerate the growth of iShares and every investment strategy at BlackRock.

“The combination of BlackRock infrastructure with GIP will make us the second largest private markets infrastructure manager with over $150 billion in total AUM, providing clients – especially those saving for retirement – with the high-coupon, inflation-protected, long-duration investments they need.

“We are incredibly excited about this next chapter in BlackRock’s history. This ambitious transformation of our firm positions us better than ever. Our clients, shareholders and employees will be its biggest beneficiaries.”

FINANCIAL RESULTS													NET FLOW HIGHLIGHTS⁽¹⁾
(in millions,	Q4			Q4			Full Year									Q4			Full Year
except per share data)	2023			2022			2023			2022			(in billions)			2023			2023
AUM	$	10,008,995		$	8,594,485		$	10,008,995		$	8,594,485		Long-term net flows:			$	63		$	209
% change		16	%					16	%
Average AUM	$	9,384,929		$	8,417,215		$	9,220,700		$	8,948,570		By region:
% change		11	%					3	%					Americas		$	54		$	138
Total net flows	$	95,647		$	113,725		$	288,695		$	306,570			EMEA			8			27
														APAC			1			44
GAAP basis:
Revenue	$	4,631		$	4,337		$	17,859		$	17,873		By client type:
% change		7	%					-	%
Operating income	$	1,585		$	1,427		$	6,275		$	6,385			*Retail:*		$	(9	)	$	(8
% change		11	%					(2	)%						US		(6	)		(5
Operating margin		34.2	%		32.9	%		35.1	%		35.7	%			International		(3	)		(4
Net income⁽¹⁾	$	1,375		$	1,259		$	5,502		$	5,178
% change		9	%					6	%					*ETFs:*		$	88		$	186
Diluted EPS	$	9.15		$	8.29		$	36.51		$	33.97				Core equity		32			83
% change		10	%					7	%						Strategic		28			104
Weighted-average diluted shares		150.2			151.8			150.7			152.4				Precision		28			(1
% change		(1	)%					(1	)%
														*Institutional:*		$	(16	)	$	32
As Adjusted⁽²⁾:															Active		8			87
Operating income	$	1,716		$	1,577		$	6,593		$	6,711				Index		(24	)		(55
% change		9	%					(2	)%
Operating margin		41.6	%		41.2	%		41.7	%		42.8	%
Net income⁽¹⁾	$	1,451		$	1,356		$	5,692		$	5,391		Cash management net flows			$	33		$	79
% change		7	%					6	%
Diluted EPS	$	9.66		$	8.93		$	37.77		$	35.36
% change		8	%					7	%				Total net flows			$	96		$	289
_________________________													_________________________
⁽¹⁾ Net income represents net income attributable to BlackRock, Inc. ⁽²⁾ See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.													⁽¹⁾ Totals may not add due to rounding.

* Combined infrastructure platform represents client assets (AUM and non-fee paying committed capital) of BlackRock and GIP as of December 31, 2023 and September 30, 2023, respectively.

BUSINESS RESULTS

											Q4 2023
						Q4 2023					Base fees⁽¹⁾
						Base fees⁽¹⁾		December 31, 2023			and securities
	Q4 2023			December 31, 2023		and securities		AUM			lending revenue
(in millions), (unaudited)	Net flows			AUM		lending revenue		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	(8,959	)	$	929,697	$	993		9	%		28	%
ETFs		87,721			3,499,299		1,458		35	%		40	%
Institutional:
Active		7,511			1,912,673		691		19	%		19	%
Index		(23,576	)		2,902,489		223		29	%		6	%
Total institutional		(16,065	)		4,815,162		914		48	%		25	%
Long-term		62,697			9,244,158		3,365		92	%		93	%
Cash management		32,950			764,837		240		8	%		7	%
Total	$	95,647		$	10,008,995	$	3,605		100	%		100	%

RESULTS BY INVESTMENT STYLE
Active	$	(5,762	)	$	2,621,178	$	1,631		26	%		45	%
Index and ETFs		68,459			6,622,980		1,734		66	%		48	%
Long-term		62,697			9,244,158		3,365		92	%		93	%
Cash management		32,950			764,837		240		8	%		7	%
Total	$	95,647		$	10,008,995	$	3,605		100	%		100	%

RESULTS BY PRODUCT TYPE
Equity	$	34,086		$	5,293,344	$	1,769		52	%		49	%
Fixed income		32,180			2,804,026		864		28	%		24	%
Multi-asset		(1,051	)		870,804		299		9	%		8	%
Alternatives:
Illiquid alternatives		3,561			136,909		251		1	%		7	%
Liquid alternatives		(3,289	)		74,233		138		1	%		4	%
Currency and commodities		(2,790	)		64,842		44		1	%		1	%
Total Alternatives		(2,518	)		275,984		433		3	%		12	%
Long-term		62,697			9,244,158		3,365		92	%		93	%
Cash management		32,950			764,837		240		8	%		7	%
Total	$	95,647		$	10,008,995	$	3,605		100	%		100	%

Base fees include investment advisory and administration fees.

INVESTMENT PERFORMANCE AT DECEMBER 31, 2023⁽¹⁾

	One-year period		Three-year period		Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	84	%	78	%	92	%
Tax-exempt	75	%	61	%	45	%
Index AUM within or above applicable tolerance	98	%	97	%	97	%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	69	%	47	%	87	%
Systematic	87	%	83	%	89	%
Index AUM within or above applicable tolerance	96	%	99	%	100	%

Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 14 for performance disclosure detail.

CAPITAL MANAGEMENT

BlackRock's Board of Directors approved a 2% increase in the quarterly cash dividend to $5.10 per share, payable March 22, 2024, to shareholders of record at the close of business on March 7, 2024.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Friday, January 12, 2024 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (313) 209-4913, or from outside the United States, (866) 400-0049, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 3392098). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Friday, January 12, 2024. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com.

ABOUT BLACKROCK

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
*(in millions, except per share data), (unaudited)*

											Three Months
	Three Months Ended										Ended
	December 31,										September 30,
	2023			2022			Change				2023			Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	3,448		$	3,260		$	188			$	3,514		$	(66	)
Securities lending revenue		157			139			18				167			(10	)
Total investment advisory, administration fees and securities lending revenue		3,605			3,399			206				3,681			(76	)
Investment advisory performance fees		311			228			83				70			241
Technology services revenue		379			353			26				407			(28	)
Distribution fees		303			314			(11	)			321			(18	)
Advisory and other revenue		33			43			(10	)			43			(10	)
Total revenue		4,631			4,337			294				4,522			109

Expense
Employee compensation and benefits		1,503			1,430			73				1,420			83
Distribution and servicing costs		502			497			5				526			(24	)
Direct fund expense		318			275			43				354			(36	)
General and administration expense		624			580			44				546			78
Restructuring charge		61			91			(30	)			-			61
Amortization of intangible assets		38			37			1				39			(1	)
Total expense		3,046			2,910			136				2,885			161

Operating income		1,585			1,427			158				1,637			(52	)

Nonoperating income (expense)
Net gain (loss) on investments		265			207			58				114			151
Interest and dividend income		159			72			87				139			20
Interest expense		(82	)		(54	)		(28	)			(82	)		-
Total nonoperating income (expense)		342			225			117				171			171

Income before income taxes		1,927			1,652			275				1,808			119
Income tax expense		438			345			93				213			225
Net income		1,489			1,307			182				1,595			(106	)
Less:
Net income (loss) attributable to noncontrolling interests		114			48			66				(9	)		123
Net income attributable to BlackRock, Inc.	$	1,375		$	1,259		$	116			$	1,604		$	(229	)

Weighted-average common shares outstanding
Basic		148.7			150.0			(1.4	)			149.2			(0.5	)
Diluted		150.2			151.8			(1.6	)			150.5			(0.3	)
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	9.25		$	8.39		$	0.86			$	10.75		$	(1.50	)
Diluted	$	9.15		$	8.29		$	0.86			$	10.66		$	(1.51	)
Cash dividends declared and paid per share	$	5.00		$	4.88		$	0.12			$	5.00		$	-

Supplemental information:

AUM (end of period)	$	10,008,995		$	8,594,485		$	1,414,510			$	9,100,825		$	908,170
Shares outstanding (end of period)		148.5			149.8			(1.3	)			148.9			(0.4	)
GAAP:
Operating margin		34.2	%		32.9	%		130		bps		36.2	%		(200	)	bps
Effective tax rate		24.2	%		21.5	%		270		bps		11.7	%		1,250		bps
As adjusted:
Operating income (1)	$	1,716		$	1,577		$	139			$	1,691		$	25
Operating margin (1)		41.6	%		41.2	%		40		bps		42.3	%		(70	)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	199		$	177		$	22			$	184		$	15
Net income attributable to BlackRock, Inc. (3)	$	1,451		$	1,356		$	95			$	1,642		$	(191	)
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)	$	9.66		$	8.93		$	0.73			$	10.91		$	(1.25	)
Effective tax rate		24.2	%		22.7	%		150		bps		12.4	%		1,180		bps

See pages 10 through 12 for the reconciliation to accounting principles generally accepted in the United States ('GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
*(in millions, except per share data), (unaudited)*

	Year Ended
	December 31,
	2023			2022			Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	13,724		$	13,852		$	(128	)
Securities lending revenue		675			599			76
Total investment advisory, administration fees and securities lending revenue		14,399			14,451			(52	)
Investment advisory performance fees		554			514			40
Technology services revenue		1,485			1,364			121
Distribution fees		1,262			1,381			(119	)
Advisory and other revenue		159			163			(4	)
Total revenue		17,859			17,873			(14	)

Expense
Employee compensation and benefits		5,779			5,681			98
Distribution and servicing costs		2,051			2,179			(128	)
Direct fund expense		1,331			1,226			105
General and administration expense		2,211			2,160			51
Restructuring charge		61			91			(30	)
Amortization of intangible assets		151			151			-
Total expense		11,584			11,488			96

Operating income		6,275			6,385			(110	)

Nonoperating income (expense)
Net gain (loss) on investments		699			(35	)		734
Interest and dividend income		473			152			321
Interest expense		(292	)		(212	)		(80	)
Total nonoperating income (expense)		880			(95	)		975

Income before income taxes		7,155			6,290			865
Income tax expense		1,479			1,296			183
Net income		5,676			4,994			682
Less:
Net income (loss) attributable to noncontrolling interests		174			(184	)		358
Net income attributable to BlackRock, Inc.	$	5,502		$	5,178		$	324

Weighted-average common shares outstanding
Basic		149.3			150.9			(1.6	)
Diluted		150.7			152.4			(1.7	)
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	36.85		$	34.31		$	2.54
Diluted	$	36.51		$	33.97		$	2.54
Cash dividends declared and paid per share	$	20.00		$	19.52		$	0.48

Supplemental information:

AUM (end of period)	$	10,008,995		$	8,594,485		$	1,414,510
Shares outstanding (end of period)		148.5			149.8			(1.3	)
GAAP:
Operating margin		35.1	%		35.7	%		(60	)	bps
Effective tax rate		21.2	%		20.0	%		120		bps
As adjusted:
Operating income (1)	$	6,593		$	6,711		$	(118	)
Operating margin (1)		41.7	%		42.8	%		(110	)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	648		$	89		$	559
Net income attributable to BlackRock, Inc. (3)	$	5,692		$	5,391		$	301
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)	$	37.77		$	35.36		$	2.41
Effective tax rate		21.4	%		20.7	%		70		bps

See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Client Type and Product Type
			Net
	September 30,		inflows			Market					December 31,
	2023		(outflows)			change			FX impact⁽¹⁾		2023		Average AUM⁽²⁾
Retail:
Equity	$	396,030	$	(370	)	$	36,080		$	3,994	$	435,734	$	407,368
Fixed income		300,232		(6,552	)		16,437			2,682		312,799		303,171
Multi-asset		129,177		(33	)		9,904			489		139,537		131,663
Alternatives		43,001		(2,004	)		303			327		41,627		42,041
Retail subtotal		868,440		(8,959	)		62,724			7,492		929,697		884,243
ETFs:
Equity		2,234,275		58,211			230,034			10,111		2,532,631		2,329,035
Fixed income		818,744		31,225			43,359			5,075		898,403		849,776
Multi-asset		7,716		746			614			64		9,140		8,251
Alternatives		57,674		(2,461	)		3,829			83		59,125		59,058
ETFs subtotal		3,118,409		87,721			277,836			15,333		3,499,299		3,246,120
Institutional:
Active:
Equity		167,917		704			14,966			3,101		186,688		174,135
Fixed income		771,581		6,012			52,739			6,491		836,823		792,981
Multi-asset		646,993		(1,244	)		62,463			8,970		717,182		667,841
Alternatives		166,771		2,039			1,239			1,931		171,980		168,608
Active subtotal		1,753,262		7,511			131,407			20,493		1,912,673		1,803,565
Index:
Equity		1,943,069		(24,459	)		190,759			28,922		2,138,291		1,998,882
Fixed income		685,648		1,495			46,049			22,809		756,001		709,186
Multi-asset		4,986		(520	)		437			42		4,945		4,747
Alternatives		3,330		(92	)		(15	)		29		3,252		3,307
Index subtotal		2,637,033		(23,576	)		237,230			51,802		2,902,489		2,716,122
Institutional subtotal		4,390,295		(16,065	)		368,637			72,295		4,815,162		4,519,687
Long-term		8,377,144		62,697			709,197			95,120		9,244,158		8,650,050
Cash management		723,681		32,950			2,770			5,436		764,837		734,879
Total	$	9,100,825	$	95,647		$	711,967		$	100,556	$	10,008,995	$	9,384,929
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
			Net
	September 30,		inflows			Market					December 31,
	2023		(outflows)			change			FX impact⁽¹⁾		2023		Average AUM⁽²⁾
Active:
Equity	$	393,690	$	(5,489	)	$	34,238		$	5,009	$	427,448	$	402,817
Fixed income		1,046,705		970			67,480			8,267		1,123,422		1,070,626
Multi-asset		776,158		(1,278	)		72,367			9,458		856,705		799,493
Alternatives		209,769		35			1,542			2,257		213,603		210,648
Active subtotal		2,426,322		(5,762	)		175,627			24,991		2,621,178		2,483,584
Index and ETFs:
ETFs:
Equity		2,234,275		58,211			230,034			10,111		2,532,631		2,329,035
Fixed income		818,744		31,225			43,359			5,075		898,403		849,776
Multi-asset		7,716		746			614			64		9,140		8,251
Alternatives		57,674		(2,461	)		3,829			83		59,125		59,058
ETFs subtotal		3,118,409		87,721			277,836			15,333		3,499,299		3,246,120
Non-ETF Index:
Equity		2,113,326		(18,636	)		207,567			31,008		2,333,265		2,177,568
Fixed income		710,756		(15	)		47,745			23,715		782,201		734,712
Multi-asset		4,998		(519	)		437			43		4,959		4,758
Alternatives		3,333		(92	)		(15	)		30		3,256		3,308
Non-ETF Index subtotal		2,832,413		(19,262	)		255,734			54,796		3,123,681		2,920,346
Index and ETFs subtotal		5,950,822		68,459			533,570			70,129		6,622,980		6,166,466
Long-term	$	8,377,144	$	62,697		$	709,197		$	95,120	$	9,244,158	$	8,650,050
Current Quarter Component Changes by Product Type (Long-Term)
			Net
	September 30,		inflows			Market					December 31,
	2023		(outflows)			change			FX impact⁽¹⁾		2023		Average AUM⁽²⁾
Equity	$	4,741,291	$	34,086		$	471,839		$	46,128	$	5,293,344	$	4,909,420
Fixed income		2,576,205		32,180			158,584			37,057		2,804,026		2,655,114
Multi-asset		788,872		(1,051	)		73,418			9,565		870,804		812,502
Alternatives:
Illiquid alternatives		131,937		3,561			(205	)		1,616		136,909		133,889
Liquid alternatives		75,139		(3,289	)		1,805			578		74,233		74,188
Currency and commodities⁽³⁾		63,700		(2,790	)		3,756			176		64,842		64,937
Alternatives subtotal		270,776		(2,518	)		5,356			2,370		275,984		273,014
Long-term	$	8,377,144	$	62,697		$	709,197		$	95,120	$	9,244,158	$	8,650,050

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
Amounts include commodity ETFs.

ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Client Type and Product Type
			Net
	December 31,		inflows					Market						December 31,
	2022		(outflows)			Acquisition⁽¹⁾		change			FX impact⁽²⁾			2023		Average AUM⁽³⁾
Retail:
Equity	$	370,612	$	2,810		$	-	$	58,248		$	4,064		$	435,734	$	403,530
Fixed income		299,114		(2,471	)		-		11,821			4,335			312,799		306,232
Multi-asset		125,168		(236	)		-		14,022			583			139,537		131,236
Alternatives		48,581		(8,576	)		-		1,286			336			41,627		45,319
Retail subtotal		843,475		(8,473	)		-		85,377			9,318			929,697		886,317
ETFs:
Equity		2,081,742		81,223			-		362,885			6,781			2,532,631		2,262,361
Fixed income		758,093		111,956			-		24,544			3,810			898,403		824,832
Multi-asset		8,875		(746	)		-		949			62			9,140		8,024
Alternatives		60,900		(6,491	)		-		4,626			90			59,125		61,439
ETFs subtotal		2,909,610		185,942			-		393,004			10,743			3,499,299		3,156,656
Institutional:
Active:
Equity		168,734		(13,301	)		-		29,088			2,167			186,688		174,967
Fixed income		774,955		4,714			-		53,538			3,616			836,823		798,832
Multi-asset		544,469		85,665			-		79,644			7,404			717,182		642,051
Alternatives		153,433		10,028			2,177		4,925			1,417			171,980		162,871
Active subtotal		1,641,591		87,106			2,177		167,195			14,604			1,912,673		1,778,721
Index:
Equity		1,814,266		(82,222	)		-		401,047			5,200			2,138,291		1,979,704
Fixed income		704,661		28,888			-		17,774			4,678			756,001		713,802
Multi-asset		6,392		(1,896	)		-		559			(110	)		4,945		5,882
Alternatives		3,296		105			-		(138	)		(11	)		3,252		3,263
Index subtotal		2,528,615		(55,125	)		-		419,242			9,757			2,902,489		2,702,651
Institutional subtotal		4,170,206		31,981			2,177		586,437			24,361			4,815,162		4,481,372
Long-term		7,923,291		209,450			2,177		1,064,818			44,422			9,244,158		8,524,345
Cash management		671,194		79,245			-		8,732			5,666			764,837		696,355
Total	$	8,594,485	$	288,695		$	2,177	$	1,073,550		$	50,088		$	10,008,995	$	9,220,700
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)
			Net
	December 31,		inflows					Market						December 31,
	2022		(outflows)			Acquisition⁽¹⁾		change			FX impact⁽²⁾			2023		Average AUM⁽³⁾
Active:
Equity	$	392,836	$	(26,772	)	$	-	$	57,431		$	3,953		$	427,448	$	409,687
Fixed income		1,053,083		(882	)		-		64,203			7,018			1,123,422		1,080,917
Multi-asset		669,629		85,424			-		93,665			7,987			856,705		773,278
Alternatives		202,012		1,451			2,177		6,210			1,753			213,603		208,189
Active subtotal		2,317,560		59,221			2,177		221,509			20,711			2,621,178		2,472,071
Index and ETFs:
ETFs:
Equity		2,081,742		81,223			-		362,885			6,781			2,532,631		2,262,361
Fixed income		758,093		111,956			-		24,544			3,810			898,403		824,832
Multi-asset		8,875		(746	)		-		949			62			9,140		8,024
Alternatives		60,900		(6,491	)		-		4,626			90			59,125		61,439
ETFs subtotal		2,909,610		185,942			-		393,004			10,743			3,499,299		3,156,656
Non-ETF Index:
Equity		1,960,776		(65,941	)		-		430,952			7,478			2,333,265		2,148,514
Fixed income		725,647		32,013			-		18,930			5,611			782,201		737,949
Multi-asset		6,400		(1,891	)		-		560			(110	)		4,959		5,891
Alternatives		3,298		106			-		(137	)		(11	)		3,256		3,264
Non-ETF Index subtotal		2,696,121		(35,713	)		-		450,305			12,968			3,123,681		2,895,618
Index and ETFs subtotal		5,605,731		150,229			-		843,309			23,711			6,622,980		6,052,274
Long-term	$	7,923,291	$	209,450		$	2,177	$	1,064,818		$	44,422		$	9,244,158	$	8,524,345
Year-over-Year Component Changes by Product Type (Long-Term)
			Net
	December 31,		inflows					Market						December 31,
	2022		(outflows)			Acquisition⁽¹⁾		change			FX impact⁽²⁾			2023		Average AUM⁽³⁾
Equity	$	4,435,354	$	(11,490	)	$	-	$	851,268		$	18,212		$	5,293,344	$	4,820,562
Fixed income		2,536,823		143,087			-		107,677			16,439			2,804,026		2,643,698
Multi-asset		684,904		82,787			-		95,174			7,939			870,804		787,193
Alternatives:
Illiquid alternatives		117,751		13,665			2,177		1,885			1,431			136,909		127,655
Liquid alternatives		80,654		(11,370	)		-		4,548			401			74,233		77,595
Currency and commodities⁽⁴⁾		67,805		(7,229	)		-		4,266			-			64,842		67,642
Alternatives subtotal		266,210		(4,934	)		2,177		10,699			1,832			275,984		272,892
Long-term	$	7,923,291	$	209,450		$	2,177	$	1,064,818		$	44,422		$	9,244,158	$	8,524,345

Amounts include AUM attributable to the acquisition of Kreos Capital in August 2023 (the "Kreos Transaction").
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Amounts include commodity ETFs.

SUMMARY OF REVENUE
	Three Months							Three Months
	Ended							Ended					Year Ended
	December 31,							September 30,					December 31,
(in millions), (unaudited)	2023		2022		Change			2023		Change			2023		2022		Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	484	$	478	$	6		$	510	$	(26	)	$	2,000	$	2,147	$	(147	)
ETFs		1,102		1,021		81			1,136		(34	)		4,418		4,345		73
Non-ETF Index		183		159		24			186		(3	)		743		711		32
Equity subtotal		1,769		1,658		111			1,832		(63	)		7,161		7,203		(42	)
Fixed income:
Active		468		462		6			479		(11	)		1,897		1,977		(80	)
ETFs		311		283		28			315		(4	)		1,230		1,122		108
Non-ETF Index		85		85		-			93		(8	)		353		396		(43	)
Fixed income subtotal		864		830		34			887		(23	)		3,480		3,495		(15	)
Multi-asset		299		293		6			308		(9	)		1,203		1,299		(96	)
Alternatives:
Illiquid alternatives		251		194		57			231		20			889		741		148
Liquid alternatives		138		150		(12	)		143		(5	)		572		633		(61	)
Currency and commodities		44		47		(3	)		46		(2	)		185		216		(31	)
Alternatives subtotal		433		391		42			420		13			1,646		1,590		56
Long-term		3,365		3,172		193			3,447		(82	)		13,490		13,587		(97	)
Cash management		240		227		13			234		6			909		864		45
Total investment advisory, administration fees and securities lending revenue		3,605		3,399		206			3,681		(76	)		14,399		14,451		(52	)
Investment advisory performance fees:
Equity		61		36		25			17		44			99		49		50
Fixed income		2		6		(4	)		1		1			4		25		(21	)
Multi-asset		5		11		(6	)		5		-			28		25		3
Alternatives:
Illiquid alternatives		149		115		34			24		125			273		296		(23	)
Liquid alternatives		94		60		34			23		71			150		119		31
Alternatives subtotal		243		175		68			47		196			423		415		8
Total investment advisory performance fees		311		228		83			70		241			554		514		40
Technology services revenue		379		353		26			407		(28	)		1,485		1,364		121
Distribution fees		303		314		(11	)		321		(18	)		1,262		1,381		(119	)
Advisory and other revenue:
Advisory		15		17		(2	)		21		(6	)		81		56		25
Other		18		26		(8	)		22		(4	)		78		107		(29	)
Total advisory and other revenue		33		43		(10	)		43		(10	)		159		163		(4	)
Total revenue	$	4,631	$	4,337	$	294		$	4,522	$	109		$	17,859	$	17,873	$	(14	)

Highlights

Investment advisory, administration fees and securities lending revenue increased $206 million from the fourth quarter of 2022, primarily driven by the impact of market beta on average AUM, positive organic base fee growth and higher securities lending revenue. Securities lending revenue of $157 million increased from $139 million in the fourth quarter of 2022, primarily reflecting higher spreads.

Investment advisory, administration fees and securities lending revenue decreased $76 million from the third quarter of 2023, primarily driven by the negative impact of market beta on average AUM and lower securities lending revenue. Securities lending revenue of $157 million decreased from $167 million in the third quarter of 2023, primarily reflecting lower spreads.
Performance fees increased $83 million from the fourth quarter of 2022 and $241 million from the third quarter of 2023, reflecting higher revenue from alternatives and long-only products.
Technology services revenue increased $26 million from the fourth quarter of 2022, reflecting the onboarding of several large clients. Technology services annual contract value (“ACV”)⁽¹⁾ increased 10% from the fourth quarter of 2022.

Technology services revenue decreased $28 million from the third quarter of 2023, reflecting third-quarter renewals of eFront on-premise licenses, for which a majority of the revenue is recognized at the time of renewal.

(1) See note (4) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV.

SUMMARY OF OPERATING EXPENSE

	Three Months								Three Months
	Ended								Ended						Year Ended
	December 31,								September 30,						December 31,
(in millions), (unaudited)	2023			2022		Change			2023			Change			2023			2022		Change
Operating expense
Employee compensation and benefits	$	1,503		$	1,430	$	73		$	1,420		$	83		$	5,779		$	5,681	$	98
Distribution and servicing costs		502			497		5			526			(24	)		2,051			2,179		(128	)
Direct fund expense		318			275		43			354			(36	)		1,331			1,226		105
General and administration expense:
Marketing and promotional		100			100		-			82			18			344			331		13
Occupancy and office related		105			99		6			103			2			418			403		15
Portfolio services		68			71		(3	)		65			3			270			280		(10	)
Sub-advisory		22			17		5			20			2			81			80		1
Technology		186			151		35			145			41			607			600		7
Professional services		67			51		16			51			16			195			180		15
Communications		11			12		(1	)		12			(1	)		47			44		3
Foreign exchange remeasurement		(4	)		8		(12	)		(3	)		(1	)		(6	)		10		(16	)
Contingent consideration fair value adjustments		2			1		1			-			2			3			3		-
Product launch costs		-			6		(6	)		-			-			-			6		(6	)
Other general and administration		67			64		3			71			(4	)		252			223		29
Total general and administration expense		624			580		44			546			78			2,211			2,160		51
Restructuring charge		61			91		(30	)		-			61			61			91		(30	)
Amortization of intangible assets		38			37		1			39			(1	)		151			151		-
Total operating expense	$	3,046		$	2,910	$	136		$	2,885		$	161		$	11,584		$	11,488	$	96

Highlights

Employee compensation and benefits expense increased $73 million from the fourth quarter of 2022 and $83 million from the third quarter of 2023, reflecting higher incentive compensation, primarily as a result of higher performance fees, and higher severance.
Direct fund expense increased $43 million from the fourth quarter of 2022, primarily reflecting higher average index AUM.

Direct fund expense decreased $36 million from the third quarter of 2023, primarily reflecting lower average index AUM and certain rebates that seasonally occur in the fourth quarter.

General and administrative expense increased $44 million from the fourth quarter of 2022, primarily due to higher technology and professional services expenses, partially offset by the impact of foreign exchange remeasurement.

General and administrative expense increased $78 million from the third quarter of 2023, primarily due to higher technology, marketing and promotional and professional services expense.

A restructuring charge of $61 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in the fourth quarter of 2023 in connection with initiatives to reorganize specific platforms, primarily Aladdin and alternative investments. The restructuring charge has been excluded from our “as adjusted” financial results. See pages 10 through 12 for the reconciliation to GAAP and notes (1) and (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

SUMMARY OF NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
	Three Months									Three Months
	Ended									Ended						Year Ended
	December 31,									September 30,						December 31,
(in millions), (unaudited)	2023			2022			Change			2023			Change			2023				2022			Change
Nonoperating income (expense), GAAP basis	$	342		$	225		$	117		$	171		$	171		$	880			$	(95	)	$	975
Less: Net income (loss) attributable to noncontrolling interests ("NCI")		114			48			66			(9	)		123			174				(184	)		358
Nonoperating income (expense), net of NCI		228			177			51			180			48			706				89			617
Less: Hedge gain (loss) on deferred cash compensation plans⁽¹⁾		29			-			29			(4	)		33			58				-			58
Nonoperating income (expense), net of NCI, as adjusted⁽²⁾	$	199		$	177		$	22		$	184		$	15		$	648			$	89		$	559

	Three Months									Three Months
	Ended									Ended						Year Ended
	December 31,									September 30,						December 31,
(in millions), (unaudited)	2023			2022			Change			2023			Change			2023				2022			Change
Net gain (loss) on investments, net of NCI
Private equity	$	68		$	66		$	2		$	91		$	(23	)	$	349			$	88		$	261
Real assets		2			5			(3	)		3			(1	)		13				28			(15	)
Other alternatives⁽³⁾		17			5			12			22			(5	)		49				5			44
Other investments⁽⁴⁾		15			44			(29	)		46			(31	)		66				(201	)		267
Hedge gain (loss) on deferred cash compensation plans⁽¹⁾		29			-			29			(4	)		33			58				-			58
Subtotal		131			120			11			158			(27	)		535				(80	)		615
Other gains (losses)⁽⁵⁾		20			39			(19	)		(35	)		55			(10	)			229			(239	)
Total net gain (loss) on investments, net of NCI		151			159			(8	)		123			28			525				149			376
Interest and dividend income		159			72			87			139			20			473		��		152			321
Interest expense		(82	)		(54	)		(28	)		(82	)		-			(292	)			(212	)		(80	)
Net interest income (expense)		77			18			59			57			20			181				(60	)		241
Nonoperating income (expense), net of NCI		228			177			51			180			48			706				89			617
Less: Hedge gain (loss) on deferred cash compensation plans⁽¹⁾		29			-			29			(4	)		33			58				-			58
Nonoperating income (expense), net of NCI, as adjusted⁽²⁾	$	199		$	177		$	22		$	184		$	15		$	648			$	89		$	559

Amount relates to the gain (loss) from economically hedging certain BlackRock deferred cash compensation plans.
Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP see notes to the condensed consolidated statements of income and supplemental information on pages 10 through 12.
Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.
The amounts for the year ended December 31, 2022, primarily include nonoperating noncash pre-tax gains in connection with the Company's strategic minority investment in iCapital Network, Inc. of approximately $267 million. Additional amounts include noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.

SUMMARY OF INCOME TAX EXPENSE
	Three Months								Three Months
	Ended								Ended						Year Ended
	December 31,								September 30,						December 31,
(in millions), (unaudited)	2023			2022			Change		2023				Change		2023			2022			Change
Income tax expense	$	438		$	345		$	93		$	213		$	225	$	1,479		$	1,296		$	183
Effective tax rate		24.2	%		21.5	%	270 bps				11.7	%	1,250 bps			21.2	%		20.0	%	120 bps

Highlights

Fourth quarter 2022 income tax expense included a $28 million net discrete tax benefit, of which $17 million is associated with the net noncash tax benefit related to the revaluation of certain deferred income tax liabilities.
Third quarter 2023 income tax expense included approximately $223 million of discrete tax benefits related to the resolution of certain outstanding tax matters.

RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended									Year Ended
	December 31,						September 30,			December 31,
(in millions), (unaudited)	2023			2022			2023			2023			2022
Operating income, GAAP basis	$	1,585		$	1,427		$	1,637		$	6,275		$	6,385
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans (a)		28			-			(3	)		57			-
Amortization of intangible assets (b)		38			37			39			151			151
Acquisition-related compensation costs (b)		2			6			6			17			24
Acquisition-related transaction costs (b)⁽¹⁾		-			-			4			7			-
Contingent consideration fair value adjustments (b)		2			1			-			3			3
Lease costs - New York (c)		-			15			-			14			57
Restructuring charge (d)		61			91			-			61			91
Reduction of indemnification asset (e)⁽¹⁾		-			-			8			8			-
Operating income, as adjusted (1)		1,716			1,577			1,691			6,593			6,711
Product launch costs and commissions		-			6			-			-			6
Operating income used for operating margin measurement	$	1,716		$	1,583		$	1,691		$	6,593		$	6,717
Revenue, GAAP basis	$	4,631		$	4,337		$	4,522		$	17,859		$	17,873
Non-GAAP adjustments:
Distribution fees		(303	)		(314	)		(321	)		(1,262	)		(1,381	)
Investment advisory fees		(199	)		(183	)		(205	)		(789	)		(798	)
Revenue used for operating margin measurement	$	4,129		$	3,840		$	3,996		$	15,808		$	15,694
Operating margin, GAAP basis		34.2	%		32.9	%		36.2	%		35.1	%		35.7	%
Operating margin, as adjusted (1)		41.6	%		41.2	%		42.3	%		41.7	%		42.8	%

Amounts included within general and administration expense.

See note (1) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.

RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED
	Three Months Ended							Year Ended
	December 31,				September 30,			December 31,
(in millions), (unaudited)	2023		2022		2023			2023		2022
Nonoperating income (expense), GAAP basis	$	342	$	225	$	171		$	880	$	(95	)
Less: Net income (loss) attributable to NCI		114		48		(9	)		174		(184	)
Nonoperating income (expense), net of NCI		228		177		180			706		89
Less: Hedge gain (loss) on deferred cash compensation plans (a)		29		-		(4	)		58		-
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2)	$	199	$	177	$	184		$	648	$	89

See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.

RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
	Three Months Ended								Year Ended
	December 31,						September 30,		December 31,
(in millions, except per share data), (unaudited)	2023			2022			2023		2023			2022
Net income attributable to BlackRock, Inc., GAAP basis	$	1,375		$	1,259		$	1,604	$	5,502		$	5,178
Non-GAAP adjustments⁽¹⁾:
Net impact of hedged deferred cash compensation plans (a)		(1	)		-			1		(1	)		-
Amortization of intangible assets (b)		28			27			30		114			114
Acquisition-related compensation costs (b)		1			5			4		12			19
Acquisition-related transaction costs (b)		-			-			3		5			-
Contingent consideration fair value adjustments (b)		2			1			-		3			3
Lease costs - New York (c)		-			12			-		11			43
Restructuring charge (d)		46			69			-		46			69
Income tax matters		-			(17	)		-		-			(35	)
Net income attributable to BlackRock, Inc., as adjusted (3)	$	1,451		$	1,356		$	1,642	$	5,692		$	5,391
Diluted weighted-average common shares outstanding		150.2			151.8			150.5		150.7			152.4
Diluted earnings per common share, GAAP basis	$	9.15		$	8.29		$	10.66	$	36.51		$	33.97
Diluted earnings per common share, as adjusted (3)	$	9.66		$	8.93		$	10.91	$	37.77		$	35.36

Non-GAAP adjustments, excluding income tax matters, are net of tax.

See note (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(unaudited)

BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

Operating income, as adjusted, includes the following non-GAAP expense adjustments:

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. Beginning in the first quarter of 2023, the Company updated its definition of operating income, as adjusted, to exclude compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company began hedging economically in 2023. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.
Acquisition related costs. Acquisition related costs include adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.
Lease costs – New York. In 2022 and 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
Restructuring charge. In the fourth quarter of 2023, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with initiatives to reorganize specific platforms, primarily Aladdin and alternative investments. In the fourth quarter of 2022, the Company recorded a restructuring charge primarily comprised of severance and accelerated amortization expense of previously granted deferred compensation awards in connection with an initiative to modify the size and shape of the workforce to align more closely with strategic priorities. Management believes excluding the impact of these restructuring charges when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
Reduction of indemnification asset. In the third quarter of 2023, BlackRock recorded $8 million of general and administration expense to reflect the reduction of the indemnification asset and an offsetting $8 million tax benefit due to the resolution of certain tax matters. The $8 million general and administrative expense and $8 million tax benefit have been excluded from as adjusted results as there is no impact on BlackRock’s book value.

Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably, and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.
Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

See notes (1) and (2) above regarding operating income, as adjusted, for information on the updated presentation of non-GAAP adjustments. For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters represent net noncash (benefit) expense primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. These amounts have been excluded from the as adjusted results as these items will not have a cash flow impact and to enhance comparability among periods presented.

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.

(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.

FORWARD-LOOKING STATEMENTS

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of AUM; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of future acquisitions or divestitures, including the acquisition of GIP (the "GIP Transaction"); (7) BlackRock’s ability to integrate acquired businesses successfully, including the GIP Transaction; (8) risks related to the GIP Transaction, including the expected closing date of the GIP Transaction, the possibility that the GIP Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions, the possibility that expected synergies and value creation from the GIP Transaction will not be realized, or will not be realized within the expected time period, and impacts to business and operational relationships related to disruptions from the GIP Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of AI; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding ESG matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock's business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of the Company; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to the Company; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s ETF platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

PERFORMANCE NOTES

Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2023 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of November 30, 2023. The performance data does not include accounts terminated prior to December 31, 2023 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of December 31, 2023 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240112651860/en/

Contacts

INVESTOR RELATIONS:

Caroline Rodda 212.810.3442

MEDIA RELATIONS:

Ed Sweeney 646.231.0268

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BlackRock Reports Full Year 2023 Diluted EPS of $36.51, or $37.77 as Adjusted

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