GlobeNewswire Inc | Jan 28, 2022 07:00AM EST

January 28, 2022

NEW YORK, Jan. 28, 2022 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (NASDAQ: WETF) today reported financial results for the fourth quarter of 2021.

$11.2 million of net income ($15.71 million net income, as adjusted), see Non-GAAP Financial Measurements for additional information.

$77.5 billion of ending AUM, an increase of 6.5% arising from market appreciation and net inflows.

$1.9 billion of net inflows, primarily driven by inflows into our fixed income, U.S. equity and international developed market equity products.

0.40% average advisory fee, a decrease of 1 basis point due to AUM mix shift.

$79.2 million of operating revenues, an increase of 1.4% due to higher average AUM.

80.5% gross margin1 is essentially unchanged from the previous quarter.

28.5% operating income margin, a 2.5 point decrease primarily due to higher operating expenses, partly offset by higher revenues.

$0.03 quarterly dividenddeclared, payable on February 23, 2022 to stockholders of record as of the close of business on February 9, 2022.

Update from Jarrett Lilien, WisdomTree COO and President

?We had a highly successful year in 2021 driven by smart investments in growth,increased efficiency and disciplined P&L management. This past quarter markedthe fifth consecutive quarter of organic growth. Our momentum has continuedinto the new year with more than $500 million of inflows in January so far,even in the face of a volatile market environment. As we look ahead to 2022 andbeyond, we are entering a new chapter, one that leverages core competencies andstays true to our core mission, vision and values. It will be marked by a focuson strengthening and evolving our business, capitalizing on our existingmomentum and adding additional fuel for future growth.?

Update from Jonathan Steinberg, WisdomTree CEO

?Over the past few years, WisdomTree in keeping with our longstanding trackrecord as an innovator and pioneer has, been positioning itself for the nextbig structural shift toward a truly digital financial services experience.Today I am very excited to introduce WisdomTree Prime, our newblockchain-native financial services mobile app, that will bring the look andfeel that users are accustomed to from traditional mobile apps, while alsooffering the benefits of a digital financial services experience built on DeFiprinciples of choice, transparency and inclusivity. WisdomTree Prime is beingbuilt for saving, spending, and investing ? in both native crypto assets or intokenized versions of mainstream financial assets and blockchain enabled funds? where we expect WisdomTree will be a product leader. We are playing for amuch larger role in the future of financial services and expect these digitalassets initiatives to generate new revenue streams that can scale quickly andaccelerate sustainable growth in the long-run.?

OPERATING AND FINANCIAL HIGHLIGHTS

Three Months Ended Dec. 31, Sept. 30, June 30, Mar.31, Dec. 31, 2021 2021 2021 2021 2020Consolidated OperatingHighlights ($ in billions):AUM $ 77.5 $ 72.8 $ 73.9 $ 69.5 $ 67.4 Net inflows/(outflows) $ 1.9 $ 0.5 $ 0.9 $ 1.3 $ 0.9 Average AUM $ 76.0 $ 74.6 $ 73.6 $ 69.6 $ 64.1 Average advisory fee 0.40 % 0.41 % 0.40 % 0.41 % 0.40 % Consolidated FinancialHighlights ($ in millions, except pershare amounts):Operating revenues $ 79.2 $ 78.1 $ 75.8 $ 71.3 $ 65.7 Net income/(loss) $ 11.2 $ 5.8 $ 17.6 $ 15.1 $ (13.5 )Diluted earnings/(loss) $ 0.07 $ 0.04 $ 0.11 $ 0.09 $ (0.10 )per shareOperating income margin 28.5 % 31.0 % 31.3 % 26.1 % 19.7 %As Adjusted (Non-GAAP^ 1):Gross margin 80.5 % 80.6 % 81.0 % 80.4 % 77.2 %Net income, as adjusted $ 15.7 $ 16.3 $ 16.8 $ 12.5 $ 9.2 Diluted earnings per $ 0.10 $ 0.10 $ 0.10 $ 0.08 $ 0.06 share, as adjusted

RECENT BUSINESS DEVELOPMENTS

Company News

* In November 2021, we expanded our global digital assets team, including hiring anti-money laundering veteran John Davidson as Global Head of Financial Crimes. With the recent additions, we now have a dedicated team of professionals across the U.S., U.K., and Ireland focused exclusively on technology, compliance, legal, product, marketing, research and education, related to digital assets, blockchain and decentralized finance. * In December 2021, we launched the following diversified crypto exposures: RWM WisdomTree Crypto Index in the U.S., and a trio of crypto asset basket ETPs in Europe: WisdomTree Crypto Mega Cap Equal Weight (MEGA), WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT); we were named a 2021 Best Places to Work in Money Management by Pensions & Investments; and were named ?ETF Provider of the Year? at the 2021 Funds Europe Awards. * In January 2022, we appointed Harold Singleton III to the Board of Directors.

Product News

* In November 2021, the WisdomTree Battery Solutions UCITS ETF (VOLT) won the award for ?Thematic ETF of the Year? by ETF Stream; and we listed the WisdomTree ex-State-Owned Enterprises ESG-screened UCITS ETF (XSOE) on the SIX, the Swiss stock exchange. * In December 2021, we launched the WisdomTree Artificial Intelligence and Innovation Fund (WTAI) on the CBOE; we completed forward share splits of 2:1 on the WisdomTree U.S. Total Dividend Fund (DTD) and the WisdomTree U.S. LargeCap Dividend Fund (DLN); we launched the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN) on the CBOE; we cross-listed the WisdomTree ex-State-Owned Enterprises ESG-screened UCITS ETF (XSOE) on the Mexican Stock Exchange; the WisdomTree Battery Solutions UCITS ETF (VOLT) won the award for ?European Fund Launch of the Year? at the 2021 Funds Europe Awards; we launched the WisdomTree Broad Commodities UCITS ETF (PCOM) on the London Stock Exchange and Brse Xetra; we listed the WisdomTree BioRevolution UCITS ETF (WDNA) on the London Stock Exchange and Brse Xetra; and we worked with Bloomberg and MSCI to develop new ESG screens to the following UCITS ETFs: the WisdomTree EUR Aggregate Bond ESG Enhanced Yield UCITS ETF (YLD) and the WisdomTree EUR Government Bond ESG Enhanced Yield UCITS ETF (GOVE). * In January 2022, we restructured the WisdomTree U.S. Dividend ex-Financials Fund (DTN) and International Dividend ex-Financials Fund (DOO) into the WisdomTree U.S. AI Enhanced Value Fund (AIVL) and International AI Enhanced Value Fund (AIVI) utilizing the Equity Machine Intelligence (EMI) proprietary model of Voya available on the NYSE; we launched the WisdomTree Broad Commodities UCITS ETF (PCOM) on the Borsa Italiana; and we listed the WisdomTree BioRevolution UCITS ETF (WDNA) on the Borsa Italiana.

WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited)

Three Months Ended Years Ended Dec. 31, Sept. 30, June 30, Mar.31, Dec. 31, Dec.31, Dec.31, 2021 2021 2021 2021 2020 2021 2020Operating Revenues:Advisory fees^2 $ 77,441 $ 76,400 $ 74,169 $ 70,042 $ 64,697 $ 298,052 $ 246,395 Other income 1,734 1,712 1,606 1,214 954 6,266 3,517 Total revenues 79,175 78,112 75,775 71,256 65,651 304,318 249,912 Operating Expenses:Compensation 23,178 22,027 20,331 22,627 20,827 88,163 74,675 and benefitsFund managementand 15,417 15,181 14,367 13,947 14,942 58,912 56,728 administration^2Marketing and 4,565 2,925 3,594 3,006 3,715 14,090 11,128 advertisingSales andbusiness 2,668 2,935 2,159 2,145 2,595 9,907 10,579 developmentContractual 4,262 4,250 4,314 4,270 4,449 17,096 16,811 gold paymentsProfessional 2,099 1,583 1,921 2,013 1,322 7,616 4,902 feesOccupancy,communications 725 1,163 1,266 1,475 1,622 4,629 6,427 and equipmentDepreciationand 45 185 256 252 261 738 1,021 amortizationThird-partydistribution 1,830 1,873 2,130 1,343 1,291 7,176 5,219 feesAcquisition anddisposition- ? ? ? ? ? ? 416 related costsOther 1,823 1,787 1,752 1,571 1,720 6,933 6,924 Total operating 56,612 53,909 52,090 52,649 52,744 215,260 194,830 expensesOperating 22,563 24,203 23,685 18,607 12,907 89,058 55,082 incomeOther Income/ (Expenses):Interest (3,740 ) (3,729 ) (2,567 ) (2,296 ) (2,694 ) (12,332 ) (9,668 )expense(Loss)/gain onrevaluation ofdeferred (3,048 ) 1,737 497 2,832 (22,385 ) 2,018 (56,821 )consideration ?gold paymentsInterest income 864 689 225 231 351 2,009 744 Impairments ? (15,853 ) ? (303 ) ? (16,156 ) (22,752 )Loss onextinguishment ? ? ? ? ? ? (2,387 )of debtOther losses (1,368 ) (714 ) 49 (5,893 ) 524 (7,926 ) 580 and gains, netIncome/(loss)before income 15,271 6,333 21,889 13,178 (11,297 ) 56,671 (35,222 )taxesIncome taxexpense/ 4,084 500 4,259 (1,969 ) 2,200 6,874 433 (benefit)Net income/ $ 11,187 $ 5,833 $ 17,630 $ 15,147 $ (13,497 ) $ 49,797 $ (35,655 )(loss)Earnings/(loss)per share ? $ 0.07^3 $ 0.04 $ 0.11^3 $ 0.09^3 ($0.10)^3 $ 0.31^3 ($0.25)^3basicEarnings/(loss)per share ? $ 0.07 $ 0.04 $ 0.11 $ 0.09 ($0.10)^3 $ 0.31 ($0.25)^3dilutedWeightedaverage common 142,070 142,070 145,542 145,649 145,096 143,847 148,682 shares ? basicWeightedaverage common 159,826 159,213 164,855 161,831 145,096 161,263 148,682 shares ?diluted As Adjusted (Non-GAAP^1)Income before $ 19,968 $ 20,991 $ 21,253 $ 15,583 $ 11,504 income taxesIncome tax $ 4,232 $ 4,674 $ 4,458 $ 3,079 $ 2,281 expenseNet income $ 15,736 $ 16,317 $ 16,795 $ 12,504 $ 9,223 Earnings per $ 0.10 $ 0.10 $ 0.10 $ 0.08 $ 0.06 share ? diluted

QUARTERLY HIGHLIGHTS

Operating Revenues

-- Operating revenues increased 1.4% and 20.6% from the third quarter of 2021 and fourth quarter of 2020, respectively, due to higher average AUM. -- Our average advisory fee was 0.40%, 0.41% and 0.40% during the fourth quarter of 2021, the third quarter of 2021 and the fourth quarter of 2020, respectively.

Operating Expenses

-- Operating expenses increased 5.0% from the third quarter of 2021 primarily due to higher marketing expenses, incentive compensation and headcount and professional fees, partly offset by lower occupancy expense. -- Operating expenses increased 7.3% from the fourth quarter of 2020 primarily due to higher incentive compensation and headcount, marketing expenses, fund management and administration costs, professional fees and third-party distribution fees, partly offset by lower occupancy and depreciation expenses and contractual gold payments.

Other Income/(Expenses)

-- Interest expense was essentially unchanged from the third quarter of 2021. This expense increased 38.8% from the fourth quarter of 2020 due to a higher level of debt outstanding, partly offset by a lower effective interest rate. -- We recognized a non-cash loss on revaluation of deferred consideration of $3.0 million during the fourth quarter of 2021. The loss was due to higher spot gold prices, partly offset by a flattening of the forward-looking gold curve. The magnitude of any gain or loss recognized is highly correlated to the magnitude of the change in the forward-looking price of gold. -- Interest income increased 25.4% and 146.2% from the third quarter of 2021 and fourth quarter of 2020, respectively, due to an increase in our securities owned. -- Other net losses were $1.4 million for the fourth quarter of 2021 and were primarily comprised of losses on our securities owned. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.

Income Taxes

-- Our effective income tax rate for the fourth quarter of 2021 of 26.7% resulted in income tax expense of $4.1 million. Our tax rate differs from the federal statutory rate of 21% primarily due to a non-deductible loss on revaluation of deferred consideration and state and local income taxes, partly offset by a lower tax rate on foreign earnings. -- Our adjusted effective income tax rate was 21.2%1.

ANNUAL HIGHLIGHTS

-- Operating revenues increased 21.8% as compared to 2020 due to higher average AUM and a 1 basis point increase in our average advisory fee arising from AUM mix shift. -- Operating expenses increased 10.5% as compared to 2020 primarily due to higher incentive compensation accruals and headcount, marketing expenses, professional fees, third-party distribution fees and fund management and administration costs. These increases were partly offset by lower occupancy expense and contractual gold payments. -- Significant items reported in other income/(expenses) in 2021 include an increase in interest expense of 27.6% due to a higher level of debt outstanding; a non-cash gain on revaluation of deferred consideration of $2.0 million; an increase in interest income of 170.0% due to an increase in our securities owned; impairment charges of $16.2 million; a non-cash charge of $5.2 million arising from the release of tax-related indemnification assets upon the expiration of the statute of limitations (an equal and offsetting benefit was recognized in income tax expense); losses on our securities owned of $3.8 million; a gain of $0.8 million related to the remeasurement of contingent consideration payable to us from the sale of our Canadian ETF business; and a gain of $0.4 million recognized on our investment in Securrency, Inc. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items. -- Our effective income tax rate for 2021 of 12.1% resulted in income tax expense of $6.9 million. Our tax rate differs from the federal statutory rate of 21% primarily due to a tax benefit of $5.2 million recognized in connection with the release of the tax-related indemnification asset described above and a lower tax rate on foreign earnings. These items were partly offset by tax shortfalls associated with the vesting and exercise of stock-based compensation awards and non-deductible executive compensation.

CONFERENCE CALL

WisdomTree will discuss its results and operational highlights during a conference call on Friday, January 28, 2022 at 9:00 a.m. ET. The call-in number is (877)303-7209.Anyone outside the U.S. or Canada should call (970)315-0420.The slides used during the presentation will be available at http://ir.wisdomtree.com. For those unable to join the conference call at the scheduled time, an audio replay will be available on http://ir.wisdomtree.com.

ABOUT WISDOMTREE

WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, WisdomTree), is an ETF and ETP sponsor and asset manager headquartered in New York.WisdomTree offers products covering equity, commodity, fixed income, leveraged and inverse, currency, cryptocurrency and alternative strategies. WisdomTree currently has over $76 billion in assets under management globally.

WisdomTree is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.



1 See Non-GAAP Financial Measurements.

2 Advisory fees and fund management and administration expenses previously reported for the year ended December 31, 2020 have been voluntarily revised by us due to an immaterial error correction. These line items have been reduced by $3.8 million with no impact to net income. The reductions represent the netting of expense reimbursements collected on behalf of a third party that were previously reported on a gross basis in our Consolidated Statements of Operations.

3 Earnings/(loss) per share (EPS) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method.

4 Cash flows from purchasing securities owned, at fair value of ($36,444) and selling securities owned, at fair value of $18,703 during the year ended December 31, 2020 that were not acquired specifically for resale or associated with our business activities have been reclassified from operating activities to investing activities to conform to our current presentation in the Consolidated Statements of Cash Flows.

Contact Information:

Investor Relations Media RelationsJeremy Campbell Jessica Zaloom+1.646.522.2602 +1.917.267.3735Jeremy.campbell@wisdomtree.com jzaloom@wisdomtree.com



WisdomTree Investments, Inc.

Key Operating Statistics (Unaudited) Three Months Ended Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2021 2021 2021 2021 2020GLOBAL ETPs ($ in millions)Beginning of period $ 72,780 $ 73,941 $ 69,532 $ 67,383 $ 60,707 assetsInflows/(outflows) 1,902 548 931 1,279 881 Market appreciation/ 2,811 (1,709 ) 3,482 870 5,795 (depreciation)Fund closures (15 ) ? (4 ) ? ? End of period assets $ 77,478 $ 72,780 $ 73,941 $ 69,532 $ 67,383 Average assets during $ 75,990 $ 74,556 $ 73,621 $ 69,575 $ 64,053 the periodAverage advisory fee 0.40 % 0.41 % 0.40 % 0.41 % 0.40 %during the periodRevenue days 92 92 91 90 92 Number of ETFs ? end 329 322 318 313 309 of the period U.S. LISTED ETFs ($ in millions)Beginning of period $ 44,742 $ 45,129 $ 42,163 $ 38,517 $ 33,310 assetsInflows/(outflows) 1,865 612 1,130 1,343 919 Market appreciation/ 1,618 (999 ) 1,836 2,303 4,288 (depreciation)Fund closures (15 ) ? ? ? ? End of period assets $ 48,210 $ 44,742 $ 45,129 $ 42,163 $ 38,517 Average assets during $ 46,943 $ 45,509 $ 44,183 $ 40,706 $ 35,926 the periodNumber of ETFs ? end 75 73 73 68 67 of the period EUROPEAN LISTED ETPs ($ in millions)Beginning of period $ 28,038 $ 28,812 $ 27,369 $ 28,866 $ 27,397 assetsInflows/(outflows) 37 (64 ) (199 ) (64 ) (38 )Market appreciation/ 1,193 (710 ) 1,646 (1,433 ) 1,507 (depreciation)Fund closures ? ? (4 ) ? ? End of period assets $ 29,268 $ 28,038 $ 28,812 $ 27,369 $ 28,866 Average assets during $ 29,047 $ 29,047 $ 29,438 $ 28,869 $ 28,127 the periodNumber of ETPs ? end 254 249 245 245 242 of the period PRODUCT CATEGORIES ($ in millions) Commodity & Currency Beginning of period $ 23,826 $ 24,772 $ 23,657 $ 25,880 $ 25,177 assetsInflows/(outflows) (251 ) (249 ) (318 ) (660 ) (296 )Market appreciation/ 1,023 (697 ) 1,433 (1,563 ) 999 (depreciation)End of period assets $ 24,598 $ 23,826 $ 24,772 $ 23,657 $ 25,880 Average assets during $ 24,422 $ 24,853 $ 25,549 $ 25,289 $ 25,596 the period U.S. Equity Beginning of period $ 21,383 $ 21,285 $ 20,018 $ 18,367 $ 15,612 assetsInflows/(outflows) 783 351 190 218 395 Market appreciation/ 1,694 (253 ) 1,077 1,433 2,360 (depreciation)End of period assets $ 23,860 $ 21,383 $ 21,285 $ 20,018 $ 18,367 Average assets during $ 22,963 $ 21,794 $ 20,982 $ 19,320 $ 17,070 the period InternationalDeveloped Market EquityBeginning of period $ 11,178 $ 10,790 $ 9,988 $ 9,406 $ 8,618 assetsInflows/(outflows) 440 404 399 17 (191 )Market appreciation/ 276 (16 ) 403 565 979 (depreciation)End of period assets $ 11,894 $ 11,178 $ 10,790 $ 9,988 $ 9,406 Average assets during $ 11,523 $ 11,144 $ 10,524 $ 9,790 $ 8,927 the period

Three Months Ended Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2021 2021 2021 2021 2020 Emerging Market Equity Beginning of period assets $ 10,666 $ 11,519 $ 10,477 $ 8,539 $ 5,979 Inflows/(outflows) (3 ) (149 ) 531 1,662 1,399 Market appreciation/ (288 ) (704 ) 511 276 1,161 (depreciation)End of period assets $ 10,375 $ 10,666 $ 11,519 $ 10,477 $ 8,539 Average assets during the $ 10,550 $ 11,038 $ 11,012 $ 9,875 $ 7,250 period Fixed Income Beginning of period assets $ 3,529 $ 3,440 $ 3,245 $ 3,308 $ 3,605 Inflows/(outflows) 838 115 168 10 (320 )Market appreciation/ (11 ) (26 ) 27 (73 ) 23 (depreciation)End of period assets $ 4,356 $ 3,529 $ 3,440 $ 3,245 $ 3,308 Average assets during the $ 4,118 $ 3,502 $ 3,337 $ 3,236 $ 3,449 period Leveraged & Inverse Beginning of period assets $ 1,666 $ 1,693 $ 1,521 $ 1,477 $ 1,423 Inflows/(outflows) 11 42 (2 ) (5 ) (125 )Market appreciation/ 100 (69 ) 174 49 179 (depreciation)End of period assets $ 1,777 $ 1,666 $ 1,693 $ 1,521 $ 1,477 Average assets during the $ 1,764 $ 1,717 $ 1,666 $ 1,556 $ 1,429 period Cryptocurrency Beginning of period assets $ 295 $ 229 $ 377 $ 167 $ 33 Inflows/(outflows) 28 12 8 36 48 Market appreciation/ 34 54 (156 ) 174 86 (depreciation)End of period assets $ 357 $ 295 $ 229 $ 377 $ 167 Average assets during the $ 406 $ 277 $ 300 $ 264 $ 79 period Alternatives Beginning of period assets $ 222 $ 198 $ 227 $ 215 $ 229 Inflows/(outflows) 56 22 (39 ) ? (26 )Market appreciation/ (17 ) 2 10 12 12 (depreciation)End of period assets $ 261 $ 222 $ 198 $ 227 $ 215 Average assets during the $ 229 $ 214 $ 231 $ 223 $ 224 period Closed ETPs Beginning of period assets $ 15 $ 15 $ 22 $ 24 $ 31 Inflows/(outflows) ? ? (6 ) 1 (3 )Market appreciation/ ? ? 3 (3 ) (4 )(depreciation)Fund closures (15 ) ? (4 ) ? ? End of period assets $ ? $ 15 $ 15 $ 22 $ 24 Average assets during the $ 15 $ 17 $ 20 $ 22 $ 29 period Headcount 241 235 227 227 217

Note: Previously issued statistics may be restated due to fund closures and trade adjustments Source: WisdomTree

WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)

Dec.31, Dec.31, 2021 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 140,709 $ 73,425 Securities owned, at fair value 127,166 34,895 Accounts receivable 31,864 29,455 Income taxes receivable ? ? Prepaid expenses 3,952 3,827 Other current assets 276 259 Total current assets 303,967 141,861 Fixed assets, net 557 7,579 Securities held-to-maturity 308 451 Deferred tax assets, net 8,881 8,063 Investments 14,238 8,112 Right of use assets ? operating leases 520 16,327 Goodwill 85,856 85,856 Intangible assets 601,247 601,247 Other noncurrent assets 361 180 Total assets $ 1,015,935 $ 869,676 LIABILITIES AND STOCKHOLDERS? EQUITY LIABILITIES Current liabilities: Fund management and administration payable $ 20,661 $ 19,564 Compensation and benefits payable 32,782 22,803 Deferred consideration ? gold payments 16,739 17,374 Operating lease liabilities 209 3,135 Income taxes payable 3,979 916 Accounts payable and other liabilities 9,297 10,207 Total current liabilities 83,667 73,999 Convertible notes 318,624 166,646 Deferred consideration ? gold payments 211,323 212,763 Operating lease liabilities 328 17,434 Total liabilities $ 613,942 470,842 Preferred stock ? Series A Non-Voting Convertible,par value $0.01; 14.750 shares authorized, issued and 132,569 132,569 outstandingSTOCKHOLDERS? EQUITY Common stock, par value $0.01; 250,000 shares authorized:Issued and outstanding: 145,107 and 148,716 at 1,451 1,487 December 31, 2021 and December31, 2020, respectivelyAdditional paid-in capital 289,736 317,075 Accumulated other comprehensive income 682 1,102 Accumulated deficit (22,445 ) (53,399 )Total stockholders? equity 269,424 266,265 Total liabilities and stockholders? equity $ 1,015,935 $ 869,676

WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)

Years Ended Dec. 31, Dec. 31, 2021 2020^4Cash flows from operating activities: Net income/(loss) $ 49,797 $ (35,655 )Adjustments to reconcile net income/(loss) to net cash provided by operating activities:Advisory fees received in gold and other precious (74,970 ) (62,416 )metalsContractual gold payments 17,096 16,811 Impairments 16,156 22,752 Stock-based compensation 9,998 11,706 Unrealized losses 3,781 ? Amortization of issuance costs ? convertible notes 2,187 1,710 (Gain)/loss on revaluation of deferred consideration (2,018 ) 56,821 ? gold paymentsAmortization of right of use asset 1,950 3,182 Gain on sale ? Canadian ETF business (787 ) (2,877 )Depreciation and amortization 738 1,021 Deferred income taxes 316 (2,192 )Loss on extinguishment of debt ? 2,387 Amortization of issuance costs ? former credit ? 1,328 facilityOther (272 ) (990 )Changes in operating assets and liabilities: Securities owned, at fair value (66 ) (14 )Accounts receivable (3,506 ) (193 )Prepaid expenses (139 ) (159 )Gold and other precious metals 57,417 45,087 Other assets (394 ) 107 Fund management and administration payable 1,348 (2,264 )Compensation and benefits payable 10,242 (3,804 )Income taxes payable 3,101 (2,441 )Securities sold, but not yet purchased, at fair value ? (582 )Operating lease liabilities (15,560 ) (3,517 )Accounts payable and other liabilities (1,097 ) 1,328 Net cash provided by operating activities 75,318 47,136 Cash flows from investing activities: Purchase of securities owned, at fair value (115,526 ) (36,444 )Purchase of investments (5,750 ) ? Purchase of fixed assets (293 ) (472 )Proceeds from the sale of securities owned, at fair 19,441 18,703 valueProceeds from the sale of Canadian ETF business, net, 2,360 2,774 including receipt of contingent considerationProceeds from held-to-maturity securities maturing or 136 16,488 called prior to maturityProceeds from the sale of the Company?s financial ? 9,592 interests in AdvisorEngine Inc.Net cash (used in)/provided by investing activities (99,632 ) 10,641 Cash flows from financing activities: Shares repurchased (34,506 ) (31,197 )Dividends paid (19,459 ) (20,113 )Convertible notes issuance costs (4,297 ) (5,411 )Repayment of debt ? (179,000 )Proceeds from the issuance of convertible notes 150,000 175,250 Proceeds from exercise of stock options 815 292 Net cash provided by/(used in) financing activities 92,553 (60,179 )(Decrease)/increase in cash flow due to changes in (955 ) 855 foreign exchange rateNet increase/(decrease) in cash and cash equivalents 67,284 (1,547 )Cash and cash equivalents?beginning of year 73,425 74,972 Cash and cash equivalents?end of year $ 140,709 $ 73,425 Supplemental disclosure of cash flow information: Cash paid for taxes $ 8,456 $ 10,131 Cash paid for interest $ 9,898 $ 7,088

Non-GAAP Financial Measurements

In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include:

Adjusted income before income taxes, income tax expense, net income and diluted earnings per share. We disclose adjusted income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measures provides investors with a consistent way to analyze our performance. These non-GAAP financial measures exclude the following:

-- Unrealized gains or losses on the revaluation of deferred consideration: Deferred consideration is an obligation we assumed in connection with the ETFS acquisition that is carried at fair value. This item represents the present value of an obligation to pay fixed ounces of gold into perpetuity and is measured using forward-looking gold prices. Changes in the forward-looking price of gold and changes in the discount rate used to compute the present value of the annual payment obligations may have a material impact on the carrying value of the deferred consideration and our reported financial results. We exclude this item when calculating our non-GAAP financial measurements as it is not core to our operating business. The item is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary of ours that is based in Jersey, a jurisdiction where we are subject to a zero percent tax rate. -- Gains or losses on securities owned: We account for our securities owned as trading securities which requires these instruments to be measured at fair value with gains and losses reported in net income. In the third quarter of 2021, we began excluding these items when calculating our non-GAAP financial measurements as these securities have become a more meaningful percentage of total assets and the gains and losses introduce volatility in earnings and are not core to our operating business. -- Tax shortfalls and windfalls upon vesting and exercise of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting and exercise of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce volatility in earnings and are not core to our operating business. -- Other items: Remeasurement of contingent consideration payable to us from the sale of our Canadian ETF business, unrealized gains recognized on our investment in Securrency, impairment charges, interest expense from the amortization of discount arising from the bifurcation of the conversion option embedded in the convertible notes (prior to January 1, 2021, the effective date of Accounting Standards Update 2020-06, Debt Debt with Conversion and Other Options, Cash Conversion), a loss on extinguishment of debt, the release of a deferred tax asset valuation allowance recognized on interest carryforwards arising from our debt previously outstanding in the United Kingdom and disposition-related costs are excluded when calculating our non-GAAP financial measurements.

Adjusted effective income tax rate. We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.

Gross margin and gross margin percentage. We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues.

WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIESGAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)(in thousands)(Unaudited)

Three Months EndedAdjusted NetIncome and Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,Diluted Earnings 2021 2021 2021 2021 2020per Share:Net income/(loss), as $ 11,187 $ 5,833 $ 17,630 $ 15,147 $ (13,497 )reportedAdd back/Deduct:Loss/(gain) onrevaluation of 3,048 (1,737 ) (497 ) (2,832 ) 22,385 deferredconsiderationAdd back: Losseson securities 1,501 1,006 ? ? ? owned, net ofincome taxesAdd back:Impairments, netof income taxes ? 12,002 ? 245 ? (whereapplicable)Deduct:Remeasurement ofcontingent ? (787 ) ? ? ? consideration ?sale of CanadianETF businessDeduct/Add back:Tax (windfalls)/shortfalls uponvesting and ? ? (233 ) 123 21 exercise ofstock-basedcompensationawardsDeduct:Unrealized gainrecognized on ? ? (105 ) (179 ) ? investment inSecurrency, netof income taxesAdd back:Interest expensefrom theamortization ofdiscount arisingfrom thebifurcation of ? ? ? ? 314 the conversionoption embeddedin theconvertiblenotes, net ofincome taxesAdjusted net $ 15,736 $ 16,317 $ 16,795 $ 12,504 $ 9,223 incomeWeighted averagecommon shares - 159,826 159,213 164,855 161,831 161,138 dilutedAdjusted earningsper share - $ 0.10 $ 0.10 $ 0.10 $ 0.08 $ 0.06 diluted Three Months EndedGross Margin and Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,Gross Margin 2021 2021 2021 2021 2020Percentage:

Operating $ 79,175 $ 78,112 $ 75,775 $ 71,256 $ 65,651 revenuesLess: Fundmanagement and (15,417 ) (15,181 ) (14,367 ) (13,947 ) (14,942 )administrationGross margin $ 63,758 $ 62,931 $ 61,408 $ 57,309 $ 50,709 Gross margin 80.5 % 80.6 % 81.0 % 80.4 % 77.2 %percentage

Three Months EndedAdjusted Income Before Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,Income Taxes: 2021 2021 2021 2021 2020Income/(loss) before $ 15,271 $ 6,333 $ 21,889 $ 13,178 $ (11,297 )income taxes Add back/Deduct: Loss/(gain) on revaluation 3,048 (1,737 ) (497 ) (2,832 ) 22,385 of deferredconsiderationAdd back: Losses onsecurities owned, 1,649 1,329 ? ? ? before income taxesAdd back: Impairments, ? 15,853 ? 303 ? before income taxesDeduct: Remeasurementof contingent ? (787 ) ? ? ? consideration ? sale ofCanadian ETF businessDeduct: Unrealized gainrecognized oninvestment in ? ? (139 ) (237 ) ? Securrency, beforeincome taxesAdd back: Lossrecognized uponreduction of a ? ? ? 5,171 ? tax-relatedindemnification assetAdd back: Interestexpense from theamortization ofdiscount arising fromthe bifurcation of the ? ? ? ? 416 conversion optionembedded in theconvertible notes,before income taxesAdjusted income before $ 19,968 $ 20,991 $ 21,253 $ 15,583 $ 11,504 income taxes

Three Months EndedAdjusted Income TaxExpense and Adjusted Dec. 31, Sept. 30, June 30, Mar 31, Dec. 31,Effective Income Tax 2021 2021 2021 2021 2020Rate:

Adjusted income before $ 19,968 $ 20,991 $ 21,253 $ 15,583 $ 11,504 income taxes (above) Income tax expense/ $ 4,084 $ 500 $ 4,259 $ (1,969 ) $ 2,200 (benefit)Add back: Tax benefitarising from ? 3,851 ? 58 ? impairmentsAdd back: Tax benefitarising from losses on 148 323 ? ? ? securities ownedAdd back/(Deduct): Taxwindfalls/(shortfalls)upon vesting and ? ? 233 (123 ) (21 )exercise ofstock-basedcompensation awardsDeduct: Tax expense onunrealized gainrecognized on ? ? (34 ) (58 ) ? investment inSecurrencyAdd back: Tax benefitarising from reduction ? ? ? 5,171 ? of a tax-relatedindemnification assetAdd back: Tax benefitarising from theamortization ofdiscount associated ? ? ? ? 102 with the bifurcationof the conversionoption embedded in theconvertible notesAdjusted income tax $ 4,232 $ 4,674 $ 4,458 $ 3,079 $ 2,281 expenseAdjusted effective 21.2 % 22.3 % 21.0 % 19.8 % 19.8 %income tax rate

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on our managements beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as may, will, should, expects, intends, plans, anticipates, believes, estimates, predicts, potential, continue or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include statements about

-- the ultimate duration of the COVID-19 pandemic and its short-term and long-term impact on our business and the global economy; -- anticipated trends, conditions and investor sentiment in the global markets and ETPs; -- anticipated levels of inflows into and outflows out of our ETPs; -- our ability to deliver favorable rates of return to investors; -- competition in our business; -- whether we will experience future growth; -- our ability to develop new products and services; -- our ability to maintain current vendors or find new vendors to provide services to us at favorable costs; -- our ability to successfully implement our digital assets strategy, including WisdomTree Prime, and achieve its objectives; -- our ability to successfully operate and expand our business in non-U.S. markets; and -- the effect of laws and regulations that apply to our business.

Our business is subject to many risks and uncertainties, including without limitation:

-- adverse market developments arising from the COVID-19 pandemic could negatively impact our assets under management, resulting in a decline in our revenues and other potential operational challenges; -- declining prices of securities, gold and other precious metals and other commodities can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions; -- fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, including but not limited to a pandemic event such as COVID-19, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity or, increase the cost of borrowing upon a refinancing; -- competitive pressures could reduce revenues and profit margins; -- we derive a substantial portion of our revenues from a limited number of products, and as a result, our operating results are particularly exposed to investor sentiment toward investing in the products strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk; -- a significant portion of our AUM is held in products with exposure to U.S. and international developed markets and we therefore have exposure to domestic and foreign market conditions and are subject to currency exchange rate risks; -- withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins; -- over the last few years, we have expanded our business internationally. This expansion subjects us to increased operational, regulatory, financial and other risks; -- many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline; -- we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors; and -- actions of activist stockholders against us could be disruptive and costly and may cause uncertainty about the strategic direction of our business.

Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see Risk Factors in our Annual Report on Form 10-K for the year ended December31, 2020 and our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2021 and September 30, 2021.

The forward-looking statements in this press release represent our views as of the date of this press release.We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law.Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.