DBRG - DigitalBridge Dips With Growth In Cash Compensation I'm Still Holding

2024-05-08 14:37:43 ET

Summary

• DigitalBridge fell heavily following the release of its fiscal 2024 first-quarter earnings that saw cash and equity-based compensation expenses form 68.8% of revenue.
• Fee-earning equity under management in the first quarter was up 17% year-over-year to reach $32.5 billion, with revenue up 302%.
• The company raised $1.1 billion in new capital during the first quarter and is targeting capital formation of $7 billion through 2024.

DigitalBridge's ( DBRG ) double-digit dip immediately following the publication of its fiscal 2024 first-quarter earnings was not a surprise. The alternative asset manager recorded a GAAP net loss of $44 million , around $0.28 per share. This came as revenue grew by a remarkable 302% over its year-ago comp to reach $74.4 million. I bought the dip even as concerns over profitability and compensation are set to linger. DBRG spent $51.18 million on cash and equity-based compensation expenses during the first quarter, 68.8% of its revenue and up $3.7 million from its year-ago comp....

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