BlackRock 8K Reports Third Quarter 2024 Diluted EPS of $10.90, or $11.46 as adjusted | BLK 11 Oct 24

Exhibit 99.1


INVESTOR RELATIONS: Caroline Rodda 212.810.3442	MEDIA RELATIONS: Ed Sweeney 646.231.0268

BlackRock Reports Third Quarter 2024 Diluted EPS of $10.90, or $11.46 as adjusted
New York, October 11, 2024 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2024.

$360 billion of year-to-date total net inflows reflect continued strength of broad-based platform, and surpass full year net inflows of 2022 and 2023

Record $221 billion of quarterly total net inflows represent 8% annualized organic asset growth and were positive across client type, product type, active and index, and regions

$11.5 trillion in AUM, up $2.4 trillion year-over-year, driven by $456 billion of net inflows and positive market movements

15% increase in revenue year-over-year, driven by the positive impact of markets on average AUM, organic base fee growth, and higher performance fees

23% increase in operating income year-over-year (26% as adjusted)

2% increase in diluted EPS year-over-year (5% as adjusted) also reflects a higher effective tax rate in the current quarter

$375 million of share repurchases in the current quarter

Closed acquisition of Global Infrastructure Partners ("GIP") on October 1st, adding $116 billion of client AUM and $70 billion of fee-paying AUM

Laurence D. Fink, Chairman and CEO:

“Our strategy is ambitious, and our strategy is working. The assets we manage on behalf of our clients reached a new high, ending the third quarter at $11.5 trillion, having grown $2.4 trillion over the last twelve months. In that time, clients have entrusted BlackRock with $456 billion of net inflows, including a record $221 billion in the third quarter. Third quarter organic base fee growth of 5% and technology services ACV growth of 15% are each at multi-year highs.

“We are effectively leveraging our technology, scale, and global footprint to deliver profitable growth. Quarterly revenue and operating income both set new records, up 15% and 26% year-over-year, respectively. Our 45.8% operating margin is up 350 basis points.

“Through coordinated investments and initiatives, we are evolving our private markets capabilities to best serve our clients. We’re already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation. We believe the model portfolio solution we are building will democratize retail access to private markets. And our planned acquisition of Preqin will enhance data and risk analytics needed to support growing private markets allocations.

“Our relentless focus on clients, growth mindset and willingness to evolve has generated a compounded annual total return of over 20% for our shareholders since our IPO 25 years ago, well in excess of broader markets. The opportunities ahead of us have never been greater, and we look forward to driving growth for our clients, shareholders and employees in the years to come.”


FINANCIAL RESULTS							NET FLOW HIGHLIGHTS(1)
	Q3			Q3						Q3		YTD
(in millions, except per share data)	2024			2023			(in billions)			2024		2024
AUM	$	11,475,362		$	9,100,825		Long-term net flows:			$	160	$	288
% change		26	%
Average AUM	$	11,070,964		$	9,396,597		By region:
% change		18	%					Americas		$	111	$	200
Total net flows	$	221,180		$	2,569			EMEA			20		76
								APAC			29		12
GAAP basis:
Revenue	$	5,197		$	4,522		By client type:
% change		15	%
Operating income	$	2,006		$	1,637			Retail:		$	7	$	20
% change		23	%						US		7		16
Operating margin		38.6	%		36.2	%			International		-		4
Net income(1)	$	1,631		$	1,604
% change		2	%					ETFs:		$	97	$	248
Diluted EPS	$	10.90		$	10.66				Core equity		32		101
% change		2	%						Strategic		45		96
Weighted-average diluted shares		149.6			150.5				Precision		20		51
% change		(1	)%
								Institutional:		$	56	$	20
As Adjusted(2):									Active		27		39
Operating income	$	2,128		$	1,691				Index		29		(19	)
% change		26	%
Operating margin		45.8	%		42.3	%
Net income(1)	$	1,715		$	1,642		Cash management net flows			$	61	$	72
% change		4	%
Diluted EPS	$	11.46		$	10.91
% change		5	%				Total net flows			$	221	$	360
_________________________							_________________________
(1) Net income represents net income attributable to BlackRock, Inc. (2) See pages 11 through 13 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.

BUSINESS RESULTS


											Q3 2024
						Q3 2024					Base fees(1)
						Base fees(1)		September 30, 2024			and securities
	Q3 2024			September 30, 2024		and securities		AUM			lending revenue
(in millions), (unaudited)	Net flows			AUM		lending revenue		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	6,863		$	1,041,201	$	1,085		9	%		27	%
ETFs		97,409			4,188,335		1,726		37	%		42	%
Institutional:
Active		26,695			2,110,944		720		18	%		18	%
Index		29,206			3,285,495		235		29	%		6	%
Total institutional		55,901			5,396,439		955		47	%		24	%
Long-term		160,173			10,625,975		3,766		93	%		93	%
Cash management		61,007			849,387		264		7	%		7	%
Total	$	221,180		$	11,475,362	$	4,030		100	%		100	%

RESULTS BY INVESTMENT STYLE
Active	$	28,045		$	2,871,791	$	1,739		25	%		43	%
Index and ETFs		132,128			7,754,184		2,027		68	%		50	%
Long-term		160,173			10,625,975		3,766		93	%		93	%
Cash management		61,007			849,387		264		7	%		7	%
Total	$	221,180		$	11,475,362	$	4,030		100	%		100	%

RESULTS BY PRODUCT TYPE
Equity	$	74,144		$	6,280,999	$	2,060		55	%		51	%
Fixed income		62,740			3,023,694		940		26	%		23	%
Multi-asset		17,814			1,001,515		325		9	%		8	%
Alternatives:
Illiquid alternatives		1,527			141,409		235		1	%		6	%
Liquid alternatives		(851	)		75,990		143		1	%		3	%
Currency and commodities(2)		4,799			102,368		63		1	%		2	%
Total alternatives		5,475			319,767		441		3	%		11	%
Long-term		160,173			10,625,975		3,766		93	%		93	%
Cash management		61,007			849,387		264		7	%		7	%
Total	$	221,180		$	11,475,362	$	4,030		100	%		100	%

(1)

Base fees include investment advisory and administration fees.

(2)

Amounts include commodity ETFs and exchange-traded products ("ETPs").

INVESTMENT PERFORMANCE AT September 30, 2024(1)


	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	81%	79%	87%
Tax-exempt	56%	50%	52%
Index AUM within or above applicable tolerance	98%	100%	100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	41%	44%	66%
Systematic	93%	91%	92%
Index AUM within or above applicable tolerance	93%	100%	100%

(1)

Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 15 for performance disclosure detail.

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, October 11, 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, (786) 460-7166, or from outside the United States, (888) 600-4862, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 3678546). 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, October 11, 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
	September 30,										June 30,
	2024			2023			Change				2024			Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	3,881		$	3,514		$	367			$	3,721		$	160
Securities lending revenue		149			167			(18	)			154			(5	)
Total investment advisory, administration fees and securities lending revenue		4,030			3,681			349				3,875			155
Investment advisory performance fees		388			70			318				164			224
Technology services revenue		403			407			(4	)			395			8
Distribution fees		323			321			2				318			5
Advisory and other revenue		53			43			10				53			-
Total revenue		5,197			4,522			675				4,805			392

Expense
Employee compensation and benefits		1,578			1,420			158				1,503			75
Sales, asset and account expense:
Distribution and servicing costs		549			526			23				539			10
Direct fund expense		379			354			25				358			21
Sub-advisory and other		34			28			6				32			2
Total sales, asset and account expense		962			908			54				929			33
General and administration expense		562			518			44				534			28
Amortization and impairment of intangible assets		89			39			50				39			50
Total expense		3,191			2,885			306				3,005			186

Operating income		2,006			1,637			369				1,800			206

Nonoperating income (expense)
Net gain (loss) on investments		177			114			63				162			15
Interest and dividend income		236			139			97				178			58
Interest expense		(154	)		(82	)		(72	)			(126	)		(28	)
Total nonoperating income (expense)		259			171			88				214			45

Income before income taxes		2,265			1,808			457				2,014			251
Income tax expense		574			213			361				477			97
Net income		1,691			1,595			96				1,537			154
Less:
Net income (loss) attributable to noncontrolling interests		60			(9	)		69				42			18
Net income attributable to BlackRock, Inc.	$	1,631		$	1,604		$	27			$	1,495		$	136

Weighted-average common shares outstanding
Basic		148.0			149.2			(1.1	)			148.4			(0.4	)
Diluted		149.6			150.5			(0.9	)			149.7			(0.0	)
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	11.02		$	10.75		$	0.27			$	10.07		$	0.95
Diluted	$	10.90		$	10.66		$	0.24			$	9.99		$	0.91
Cash dividends declared and paid per share	$	5.10		$	5.00		$	0.10			$	5.10		$	-

Supplemental information:

AUM (end of period)	$	11,475,362		$	9,100,825		$	2,374,537			$	10,645,721		$	829,641
Shares outstanding (end of period)		148.0			148.9			(1.0	)			148.2			(0.2	)
GAAP:
Operating margin		38.6	%		36.2	%		240		bps		37.5	%		110		bps
Effective tax rate		26.0	%		11.7	%		1,430		bps		24.2	%		180		bps
As adjusted:
Operating income (1)	$	2,128		$	1,691		$	437			$	1,881		$	247
Operating margin (1)		45.8	%		42.3	%		350		bps		44.1	%		170		bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	190		$	184		$	6			$	165		$	25
Net income attributable to BlackRock, Inc. (3)	$	1,715		$	1,642		$	73			$	1,550		$	165
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)	$	11.46		$	10.91		$	0.55			$	10.36		$	1.10
Effective tax rate		26.0	%		12.4	%		1,360		bps		24.2	%		180		bps

See pages 11 through 13 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. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except per share data), (unaudited)



	Nine Months Ended
	September 30,
	2024			2023			Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	11,229		$	10,276		$	953
Securities lending revenue		454			518			(64	)
Total investment advisory, administration fees and securities lending revenue		11,683			10,794			889
Investment advisory performance fees		756			243			513
Technology services revenue		1,175			1,106			69
Distribution fees		951			959			(8	)
Advisory and other revenue		165			126			39
Total revenue		14,730			13,228			1,502

Expense
Employee compensation and benefits		4,661			4,276			385
Sales, asset and account expense:
Distribution and servicing costs		1,606			1,549			57
Direct fund expense		1,075			1,013			62
Sub-advisory and other		98			81			17
Total sales, asset and account expense		2,779			2,643			136
General and administration expense		1,625			1,506			119
Amortization and impairment of intangible assets		166			113			53
Total expense		9,231			8,538			693

Operating income		5,499			4,690			809

Nonoperating income (expense)
Net gain (loss) on investments		510			434			76
Interest and dividend income		555			314			241
Interest expense		(372	)		(210	)		(162	)
Total nonoperating income (expense)		693			538			155

Income before income taxes		6,192			5,228			964
Income tax expense		1,341			1,041			300
Net income		4,851			4,187			664
Less:
Net income (loss) attributable to noncontrolling interests		152			60			92
Net income attributable to BlackRock, Inc.	$	4,699		$	4,127		$	572

Weighted-average common shares outstanding
Basic		148.4			149.6			(1.2	)
Diluted		149.8			150.9			(1.1	)
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	31.67		$	27.60		$	4.07
Diluted	$	31.37		$	27.36		$	4.01
Cash dividends declared and paid per share	$	15.30		$	15.00		$	0.30

Supplemental information:

AUM (end of period)	$	11,475,362		$	9,100,825		$	2,374,537
Shares outstanding (end of period)		148.0			148.9			(1.0	)
GAAP:
Operating margin		37.3	%		35.5	%		180		bps
Effective tax rate		22.2	%		20.1	%		210		bps
As adjusted:
Operating income (1)	$	5,784		$	4,877		$	907
Operating margin (1)		44.1	%		41.8	%		230		bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	494		$	449		$	45
Net income attributable to BlackRock, Inc. (3)	$	4,738		$	4,241		$	497
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)	$	31.63		$	28.11		$	3.52
Effective tax rate		24.5	%		20.4	%		410		bps

See pages 11 through 13 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. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)


Current Quarter Component Changes by Client Type and Product Type
			Net
	June 30,		inflows			Market				September 30,
	2024		(outflows)			change		FX impact(1)		2024		Average AUM(2)
Retail:
Equity	$	490,427	$	5,234		$	19,005	$	6,604	$	521,270	$	506,725
Fixed income		313,632		2,718			7,127		768		324,245		318,285
Multi-asset		147,719		(1,304	)		7,209		454		154,078		150,787
Alternatives		40,374		215			638		381		41,608		40,911
Retail subtotal		992,152		6,863			33,979		8,207		1,041,201		1,016,708
ETFs:
Equity		2,830,268		44,548			174,748		12,276		3,061,840		2,951,255
Fixed income		931,217		47,810			34,440		5,709		1,019,176		979,055
Multi-asset		9,204		314			472		46		10,036		9,605
Alternatives		85,085		4,737			7,394		67		97,283		91,437
ETFs subtotal		3,855,774		97,409			217,054		18,098		4,188,335		4,031,352
Institutional:
Active:
Equity		208,177		3,743			8,173		5,268		225,361		216,753
Fixed income		823,716		3,504			36,659		9,506		873,385		852,571
Multi-asset		761,194		18,866			42,870		11,045		833,975		793,568
Alternatives		175,145		582			431		2,065		178,223		176,059
Active subtotal		1,968,232		26,695			88,133		27,884		2,110,944		2,038,951
Index:
Equity		2,298,263		20,619			109,142		44,504		2,472,528		2,387,641
Fixed income		747,319		8,708			12,778		38,083		806,888		778,392
Multi-asset		3,295		(62	)		130		63		3,426		3,348
Alternatives		2,644		(59	)		11		57		2,653		2,603
Index subtotal		3,051,521		29,206			122,061		82,707		3,285,495		3,171,984
Institutional subtotal		5,019,753		55,901			210,194		110,591		5,396,439		5,210,935
Long-term		9,867,679		160,173			461,227		136,896		10,625,975		10,258,995
Cash management		778,042		61,007			3,092		7,246		849,387		811,969
Total	$	10,645,721	$	221,180		$	464,319	$	144,142	$	11,475,362	$	11,070,964
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
			Net
	June 30,		inflows			Market				September 30,
	2024		(outflows)			change		FX impact(1)		2024		Average AUM(2)
Active:
Equity	$	466,518	$	2,733		$	14,916	$	8,026	$	492,193	$	479,372
Fixed income		1,112,578		6,954			43,054		9,153		1,171,739		1,145,337
Multi-asset		908,897		17,561			50,079		11,498		988,035		944,338
Alternatives		215,513		797			1,068		2,446		219,824		216,968
Active subtotal		2,703,506		28,045			109,117		31,123		2,871,791		2,786,015
Index and ETFs:
ETFs:
Equity		2,830,268		44,548			174,748		12,276		3,061,840		2,951,255
Fixed income		931,217		47,810			34,440		5,709		1,019,176		979,055
Multi-asset		9,204		314			472		46		10,036		9,605
Alternatives		85,085		4,737			7,394		67		97,283		91,437
ETFs subtotal		3,855,774		97,409			217,054		18,098		4,188,335		4,031,352
Non-ETF index:
Equity		2,530,349		26,863			121,404		48,350		2,726,966		2,631,747
Fixed income		772,089		7,976			13,510		39,204		832,779		803,911
Multi-asset		3,311		(61	)		130		64		3,444		3,365
Alternatives		2,650		(59	)		12		57		2,660		2,605
Non-ETF index subtotal		3,308,399		34,719			135,056		87,675		3,565,849		3,441,628
Index and ETFs subtotal		7,164,173		132,128			352,110		105,773		7,754,184		7,472,980
Long-term	$	9,867,679	$	160,173		$	461,227	$	136,896	$	10,625,975	$	10,258,995
Current Quarter Component Changes by Product Type (Long-Term)
			Net
	June 30,		inflows			Market				September 30,
	2024		(outflows)			change		FX impact(1)		2024		Average AUM(2)
Equity	$	5,827,135	$	74,144		$	311,068	$	68,652	$	6,280,999	$	6,062,374
Fixed income		2,815,884		62,740			91,004		54,066		3,023,694		2,928,303
Multi-asset		921,412		17,814			50,681		11,608		1,001,515		957,308
Alternatives:
Illiquid alternatives		137,868		1,527			226		1,788		141,409		139,173
Liquid alternatives		75,483		(851	)		821		537		75,990		75,532
Currency and commodities(3)		89,897		4,799			7,427		245		102,368		96,305
Alternatives subtotal		303,248		5,475			8,474		2,570		319,767		311,010
Long-term	$	9,867,679	$	160,173		$	461,227	$	136,896	$	10,625,975	$	10,258,995

(1)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(2)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

(3)

Amounts include commodity ETFs and ETPs.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)


Year-to-Date Component Changes by Client Type and Product Type
			Net
	December 31,		inflows					Market						September 30,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)			2024		Average AUM(3)
Retail:
Equity	$	435,734	$	15,411		$	4,074	$	61,467		$	4,584		$	521,270	$	476,890
Fixed income		312,799		7,517			-		6,306			(2,377	)		324,245		315,181
Multi-asset		139,537		(1,904	)		-		16,329			116			154,078		145,865
Alternatives		41,627		(1,306	)		-		1,078			209			41,608		41,077
Retail subtotal		929,697		19,718			4,074		85,180			2,532			1,041,201		979,013
ETFs:
Equity		2,532,631		125,756			-		402,936			517			3,061,840		2,769,010
Fixed income		898,403		100,506			-		18,665			1,602			1,019,176		932,580
Multi-asset		9,140		(45	)		-		994			(53	)		10,036		9,178
Alternatives		59,125		21,574			-		16,587			(3	)		97,283		79,853
ETFs subtotal		3,499,299		247,791			-		439,182			2,063			4,188,335		3,790,621
Institutional:
Active:
Equity		186,688		7,431			-		28,443			2,799			225,361		204,027
Fixed income		836,823		(1,334	)		-		35,143			2,753			873,385		840,954
Multi-asset		717,182		31,043			-		80,939			4,811			833,975		755,639
Alternatives		171,980		2,182			-		3,169			892			178,223		174,049
Active subtotal		1,912,673		39,322			-		147,694			11,255			2,110,944		1,974,669
Index:
Equity		2,138,291		(49,596	)		-		373,927			9,906			2,472,528		2,283,907
Fixed income		756,001		33,196			-		9,321			8,370			806,888		756,389
Multi-asset		4,945		(1,723	)		-		205			(1	)		3,426		3,813
Alternatives		3,252		(755	)		-		147			9			2,653		2,791
Index subtotal		2,902,489		(18,878	)		-		383,600			18,284			3,285,495		3,046,900
Institutional subtotal		4,815,162		20,444			-		531,294			29,539			5,396,439		5,021,569
Long-term		9,244,158		287,953			4,074		1,055,656			34,134			10,625,975		9,791,203
Cash management		764,837		71,982			-		8,084			4,484			849,387		779,369
Total	$	10,008,995	$	359,935		$	4,074	$	1,063,740		$	38,618		$	11,475,362	$	10,570,572
Year-to-Date Component Changes by Investment Style and Product Type (Long-Term)
			Net
	December 31,		inflows					Market						September 30,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)			2024		Average AUM(3)
Active:
Equity	$	427,448	$	1,724		$	4,074	$	54,677		$	4,270		$	492,193	$	457,176
Fixed income		1,123,422		7,604			-		41,139			(426	)		1,171,739		1,130,958
Multi-asset		856,705		29,133			-		97,271			4,926			988,035		901,490
Alternatives		213,603		873			-		4,247			1,101			219,824		215,123
Active subtotal		2,621,178		39,334			4,074		197,334			9,871			2,871,791		2,704,747
Index and ETFs:
ETFs:
Equity		2,532,631		125,756			-		402,936			517			3,061,840		2,769,010
Fixed income		898,403		100,506			-		18,665			1,602			1,019,176		932,580
Multi-asset		9,140		(45	)		-		994			(53	)		10,036		9,178
Alternatives		59,125		21,574			-		16,587			(3	)		97,283		79,853
ETFs subtotal		3,499,299		247,791			-		439,182			2,063			4,188,335		3,790,621
Non-ETF index:
Equity		2,333,265		(28,478	)		-		409,160			13,019			2,726,966		2,507,648
Fixed income		782,201		31,775			-		9,631			9,172			832,779		781,566
Multi-asset		4,959		(1,717	)		-		202			-			3,444		3,827
Alternatives		3,256		(752	)		-		147			9			2,660		2,794
Non-ETF index subtotal		3,123,681		828			-		419,140			22,200			3,565,849		3,295,835
Index and ETFs subtotal		6,622,980		248,619			-		858,322			24,263			7,754,184		7,086,456
Long-term	$	9,244,158	$	287,953		$	4,074	$	1,055,656		$	34,134		$	10,625,975	$	9,791,203
Year-to-Date Component Changes by Product Type (Long-Term)
			Net
	December 31,		inflows					Market						September 30,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)			2024		Average AUM(3)
Equity	$	5,293,344	$	99,002		$	4,074	$	866,773		$	17,806		$	6,280,999	$	5,733,834
Fixed income		2,804,026		139,885			-		69,435			10,348			3,023,694		2,845,104
Multi-asset		870,804		27,371			-		98,467			4,873			1,001,515		914,495
Alternatives:
Illiquid alternatives		136,909		4,727			-		(1,056	)		829			141,409		137,718
Liquid alternatives		74,233		(3,774	)		-		5,241			290			75,990		75,139
Currency and commodities(4)		64,842		20,742			-		16,796			(12	)		102,368		84,913
Alternatives subtotal		275,984		21,695			-		20,981			1,107			319,767		297,770
Long-term	$	9,244,158	$	287,953		$	4,074	$	1,055,656		$	34,134		$	10,625,975	$	9,791,203

(1)

Amounts include AUM attributable to the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction").

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing ten months.

(4)

Amounts include commodity ETFs and ETPs.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)


Year-over-Year Component Changes by Client Type and Product Type
			Net
	September 30,		inflows					Market					September 30,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)		2024		Average AUM(3)
Retail:
Equity	$	396,030	$	15,041		$	4,074	$	97,548		$	8,577	$	521,270	$	458,663
Fixed income		300,232		965			-		22,742			306		324,245		311,669
Multi-asset		129,177		(1,937	)		-		26,233			605		154,078		141,981
Alternatives		43,001		(3,311	)		-		1,383			535		41,608		41,333
Retail subtotal		868,440		10,758			4,074		147,906			10,023		1,041,201		953,646
ETFs:
Equity		2,234,275		183,966			-		632,970			10,629		3,061,840		2,651,816
Fixed income		818,744		131,732			-		62,024			6,676		1,019,176		909,731
Multi-asset		7,716		701			-		1,608			11		10,036		8,896
Alternatives		57,674		19,112			-		20,417			80		97,283		75,049
ETFs subtotal		3,118,409		335,511			-		717,019			17,396		4,188,335		3,645,492
Institutional:
Active:
Equity		167,917		8,135			-		43,409			5,900		225,361		196,163
Fixed income		771,581		4,677			-		87,883			9,244		873,385		826,510
Multi-asset		646,993		29,799			-		143,402			13,781		833,975		731,583
Alternatives		166,771		4,221			-		4,408			2,823		178,223		172,534
Active subtotal		1,753,262		46,832			-		279,102			31,748		2,110,944		1,926,790
Index:
Equity		1,943,069		(74,055	)		-		564,686			38,828		2,472,528		2,207,409
Fixed income		685,648		34,692			-		55,369			31,179		806,888		741,895
Multi-asset		4,986		(2,243	)		-		641			42		3,426		4,013
Alternatives		3,330		(846	)		-		131			38		2,653		2,914
Index subtotal		2,637,033		(42,452	)		-		620,827			70,087		3,285,495		2,956,231
Institutional subtotal		4,390,295		4,380			-		899,929			101,835		5,396,439		4,883,021
Long-term		8,377,144		350,649			4,074		1,764,854			129,254		10,625,975		9,482,159
Cash management		723,681		104,933			-		10,853			9,920		849,387		766,798
Total	$	9,100,825	$	455,582		$	4,074	$	1,775,707		$	139,174	$	11,475,362	$	10,248,957
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)
			Net
	September 30,		inflows					Market					September 30,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)		2024		Average AUM(3)
Active:
Equity	$	393,690	$	(3,764	)	$	4,074	$	88,915		$	9,278	$	492,193	$	442,736
Fixed income		1,046,705		8,574			-		108,618			7,842		1,171,739		1,112,973
Multi-asset		776,158		27,855			-		169,637			14,385		988,035		873,550
Alternatives		209,769		908			-		5,789			3,358		219,824		213,864
Active subtotal		2,426,322		33,573			4,074		372,959			34,863		2,871,791		2,643,123
Index and ETFs:
ETFs:
Equity		2,234,275		183,966			-		632,970			10,629		3,061,840		2,651,816
Fixed income		818,744		131,732			-		62,024			6,676		1,019,176		909,731
Multi-asset		7,716		701			-		1,608			11		10,036		8,896
Alternatives		57,674		19,112			-		20,417			80		97,283		75,049
ETFs subtotal		3,118,409		335,511			-		717,019			17,396		4,188,335		3,645,492
Non-ETF index:
Equity		2,113,326		(47,115	)		-		616,728			44,027		2,726,966		2,419,499
Fixed income		710,756		31,760			-		57,376			32,887		832,779		767,101
Multi-asset		4,998		(2,236	)		-		639			43		3,444		4,027
Alternatives		3,333		(844	)		-		133			38		2,660		2,917
Non-ETF index subtotal		2,832,413		(18,435	)		-		674,876			76,995		3,565,849		3,193,544
Index and ETFs subtotal		5,950,822		317,076			-		1,391,895			94,391		7,754,184		6,839,036
Long-term	$	8,377,144	$	350,649		$	4,074	$	1,764,854		$	129,254	$	10,625,975	$	9,482,159
Year-over-Year Component Changes by Product Type (Long-Term)
			Net
	September 30,		inflows					Market					September 30,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)		2024		Average AUM(3)
Equity	$	4,741,291	$	133,087		$	4,074	$	1,338,613		$	63,934	$	6,280,999	$	5,514,051
Fixed income		2,576,205		172,066			-		228,018			47,405		3,023,694		2,789,805
Multi-asset		788,872		26,320			-		171,884			14,439		1,001,515		886,473
Alternatives:
Illiquid alternatives		131,937		8,289			-		(1,261	)		2,444		141,409		136,603
Liquid alternatives		75,139		(7,063	)		-		7,046			868		75,990		74,916
Currency and commodities(4)		63,700		17,950			-		20,554			164		102,368		80,311
Alternatives subtotal		270,776		19,176			-		26,339			3,476		319,767		291,830
Long-term	$	8,377,144	$	350,649		$	4,074	$	1,764,854		$	129,254	$	10,625,975	$	9,482,159

(1)

Amounts include AUM attributable to the SpiderRock Transaction.

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

(4)

Amounts include commodity ETFs and ETPs.

SUMMARY OF REVENUE


	Three Months							Three Months					Nine Months
	Ended							Ended					Ended
	September 30,							June 30,					September 30,
(in millions), (unaudited)	2024		2023		Change			2024		Change			2024		2023		Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	553	$	510	$	43		$	539	$	14		$	1,608	$	1,516	$	92
ETFs		1,309		1,136		173			1,250		59			3,749		3,316		433
Non-ETF index		198		186		12			190		8			575		560		15
Equity subtotal		2,060		1,832		228			1,979		81			5,932		5,392		540
Fixed income:
Active		493		479		14			481		12			1,458		1,429		29
ETFs		354		315		39			326		28			1,007		919		88
Non-ETF index		93		93		-			88		5			273		268		5
Fixed income subtotal		940		887		53			895		45			2,738		2,616		122
Multi-asset		325		308		17			313		12			952		904		48
Alternatives:
Illiquid alternatives		235		231		4			241		(6	)		716		638		78
Liquid alternatives		143		143		-			141		2			422		434		(12	)
Currency and commodities(1)		63		46		17			59		4			167		141		26
Alternatives subtotal		441		420		21			441		-			1,305		1,213		92
Long-term		3,766		3,447		319			3,628		138			10,927		10,125		802
Cash management		264		234		30			247		17			756		669		87
Total investment advisory, administration fees and securities lending revenue		4,030		3,681		349			3,875		155			11,683		10,794		889
Investment advisory performance fees:
Equity		13		17		(4	)		28		(15	)		49		38		11
Fixed income		3		1		2			5		(2	)		12		2		10
Multi-asset		1		5		(4	)		11		(10	)		14		23		(9	)
Alternatives:
Illiquid alternatives		7		24		(17	)		68		(61	)		200		124		76
Liquid alternatives		364		23		341			52		312			481		56		425
Alternatives subtotal		371		47		324			120		251			681		180		501
Total investment advisory performance fees		388		70		318			164		224			756		243		513
Technology services revenue		403		407		(4	)		395		8			1,175		1,106		69
Distribution fees		323		321		2			318		5			951		959		(8	)
Advisory and other revenue:
Advisory		11		21		(10	)		11		-			35		66		(31	)
Other		42		22		20			42		-			130		60		70
Total advisory and other revenue		53		43		10			53		-			165		126		39
Total revenue	$	5,197	$	4,522	$	675		$	4,805	$	392		$	14,730	$	13,228	$	1,502

(1)

Amounts include commodity ETFs and ETPs.

Highlights

•

Investment advisory and administration fees and securities lending revenue increased $349 million from the third quarter of 2023 and $155 million from the second quarter of 2024, primarily driven by positive organic base fee growth and the impact of market beta on average AUM, partially offset by lower securities lending revenue. The increase in revenue from the second quarter of 2024 also reflected the impact of one additional day in the quarter.

Securities lending revenue of $149 million decreased from $167 million in the third quarter of 2023 and $154 million in the second quarter of 2024, primarily reflecting lower spreads partially offset by higher average balances of securities on loan.

•

Performance fees increased $318 million from the third quarter of 2023 and $224 million from the second quarter of 2024, primarily driven by strong performance in the third quarter of 2024 from a single hedge fund with an annual performance measurement period that ends in the third quarter, partially offset by lower revenue from illiquid alternatives.

•

Technology services revenue decreased $4 million from the third quarter of 2023, due to the revenue impact linked to several large client renewals of their eFront “on-premises” licenses during the third quarter of 2023. Technology services annual contract value (“ACV”)(1) increased 15% from the third quarter of 2023, driven by sustained demand for a full range of Aladdin technology offerings.

Technology services revenue increased $8 million from the second quarter of 2024, reflecting successful client go-lives.

(1)

See note (4) to the condensed consolidated statements of income and supplemental information on page 13 for more information on ACV.

SUMMARY OF OPERATING EXPENSE


	Three Months									Three Months					Nine Months
	Ended									Ended					Ended
	September 30,									June 30,					September 30,
(in millions), (unaudited)	2024			2023			Change			2024		Change			2024			2023			Change
Operating expense
Employee compensation and benefits	$	1,578		$	1,420		$	158		$	1,503	$	75		$	4,661		$	4,276		$	385
Sales, asset and account expense(1):
Distribution and servicing costs		549			526			23			539		10			1,606			1,549			57
Direct fund expense		379			354			25			358		21			1,075			1,013			62
Sub-advisory and other		34			28			6			32		2			98			81			17
Total sales, asset and account expense		962			908			54			929		33			2,779			2,643			136
General and administration expense:
Marketing and promotional		64			74			(10	)		76		(12	)		222			222			-
Occupancy and office related		105			103			2			102		3			308			313			(5	)
Portfolio services		65			65			-			63		2			194			202			(8	)
Technology		175			145			30			157		18			492			421			71
Professional services		67			51			16			64		3			189			128			61
Communications		10			12			(2	)		9		1			29			36			(7	)
Foreign exchange remeasurement		3			(3	)		6			2		1			7			(2	)		9
Contingent consideration fair value adjustments		(2	)		-			(2	)		1		(3	)		(8	)		1			(9	)
Other general and administration		75			71			4			60		15			192			185			7
Total general and administration expense		562			518			44			534		28			1,625			1,506			119
Amortization and impairment of intangible assets		89			39			50			39		50			166			113			53
Total operating expense	$	3,191		$	2,885		$	306		$	3,005	$	186		$	9,231		$	8,538		$	693

(1)

Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

Highlights

•

Employee compensation and benefits expense increased $158 million from the third quarter of 2023 and $75 million from the second quarter of 2024, reflecting higher incentive compensation, primarily as a result of higher performance fees and operating income.

•

Sales, asset and account expense increased $54 million from the third quarter of 2023 and $33 million from the second quarter of 2024, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.

•

General and administration expense increased $44 million from the third quarter of 2023 and $28 million from the second quarter of 2024, primarily due to higher technology expense and higher professional services expense, including higher acquisition-related transaction costs, partially offset by lower marketing and promotional expense.

•

Amortization and impairment of intangible assets expense increased $50 million from the third quarter of 2023 and the second quarter of 2024, driven by a $50 million noncash impairment charge related to certain of the Company’s indefinite-lived management contracts. Amortization and impairment of intangible assets is excluded from the Company’s “as adjusted” financial results. See pages 11 through 13 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests


	Three Months									Three Months						Nine Months
	Ended									Ended						Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2024			2023			Change			2024			Change			2024			2023			Change
Nonoperating income (expense), GAAP basis	$	259		$	171		$	88		$	214		$	45		$	693		$	538		$	155
Less: Net income (loss) attributable to noncontrolling interests ("NCI")		60			(9	)		69			42			18			152			60			92
Nonoperating income (expense), net of NCI		199			180			19			172			27			541			478			63
Less: Hedge gain (loss) on deferred cash compensation plans(1)		9			(4	)		13			7			2			47			29			18
Nonoperating income (expense), net of NCI, as adjusted(2)	$	190		$	184		$	6		$	165		$	25		$	494		$	449		$	45

	Three Months									Three Months						Nine Months
	Ended									Ended						Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2024			2023			Change			2024			Change			2024			2023			Change
Net gain (loss) on investments, net of NCI
Private equity	$	9		$	91		$	(82	)	$	15		$	(6	)	$	32		$	281		$	(249	)
Real assets		13			3			10			9			4			19			11			8
Other alternatives(3)		9			22			(13	)		10			(1	)		33			32			1
Other investments(4)		20			46			(26	)		34			(14	)		85			51			34
Hedge gain (loss) on deferred cash compensation plans(1)		9			(4	)		13			7			2			47			29			18
Subtotal		60			158			(98	)		75			(15	)		216			404			(188	)
Other income/gain (expense/loss)(5)		57			(35	)		92			45			12			142			(30	)		172
Total net gain (loss) on investments, net of NCI		117			123			(6	)		120			(3	)		358			374			(16	)
Interest and dividend income		236			139			97			178			58			555			314			241
Interest expense		(154	)		(82	)		(72	)		(126	)		(28	)		(372	)		(210	)		(162	)
Net interest income (expense)		82			57			25			52			30			183			104			79
Nonoperating income (expense), net of NCI		199			180			19			172			27			541			478			63
Less: Hedge gain (loss) on deferred cash compensation plans(1)		9			(4	)		13			7			2			47			29			18
Nonoperating income (expense), net of NCI, as adjusted(2)	$	190		$	184		$	6		$	165		$	25		$	494		$	449		$	45

(1)

Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.

(2)

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 11 through 13.

(3)

Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.

(4)

Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.

(5)

Amounts for the three and nine months ended September 30, 2024 include a pre-tax gain of approximately $66 million in connection with a transaction related to a minority investment in EquiLend Holdings, LLC. Amount for the nine months ended September 30, 2024 includes a noncash pre-tax gain in connection with the SpiderRock Transaction of approximately $19 million. In addition, amounts for the three and nine months ended September 30, 2024, include earnings (losses) from certain equity method minority investments, which the Company recorded within nonoperating income (expense) beginning in the first quarter of 2024 and noncash pre-tax gains (losses) related to the revaluation of certain minority investments.

summary of INCOME TAX EXPENSE


	Three Months								Three Months						Nine Months
	Ended								Ended						Ended
	September 30,								June 30,						September 30,
(in millions), (unaudited)	2024			2023			Change		2024				Change		2024			2023			Change
Income tax expense	$	574		$	213		$	361		$	477		$	97	$	1,341		$	1,041		$	300
Effective tax rate		26.0	%		11.7	%	1,430 bps				24.2	%	180 bps			22.2	%		20.1	%	210 bps

Highlights

•

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									Nine Months Ended
	September 30,						June 30,			September 30,
(in millions), (unaudited)	2024			2023			2024			2024			2023
Operating income, GAAP basis	$	2,006		$	1,637		$	1,800		$	5,499		$	4,690
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans (a)		7			(3	)		9			43			29
Amortization and impairment of intangible assets (b)		89			39			39			166			113
Acquisition-related compensation costs (b)		11			6			19			32			15
Acquisition-related transaction costs (b)(1)		17			4			13			52			7
Contingent consideration fair value adjustments (b)		(2	)		-			1			(8	)		1
Lease costs - New York (c)		-			-			-			-			14
Reduction of indemnification asset (d)(1)		-			8			-			-			8
Operating income, as adjusted (1)	$	2,128		$	1,691		$	1,881		$	5,784		$	4,877
Revenue, GAAP basis	$	5,197		$	4,522		$	4,805		$	14,730		$	13,228
Non-GAAP adjustments:
Distribution fees		(323	)		(321	)		(318	)		(951	)		(959	)
Investment advisory fees		(226	)		(205	)		(221	)		(655	)		(590	)
Revenue used for operating margin measurement	$	4,648		$	3,996		$	4,266		$	13,124		$	11,679
Operating margin, GAAP basis		38.6	%		36.2	%		37.5	%		37.3	%		35.5	%
Operating margin, as adjusted (1)		45.8	%		42.3	%		44.1	%		44.1	%		41.8	%

(1)

Amounts included within general and administration expense.

See note (1) to the condensed consolidated statements of income and supplemental information on pages 12 and 13 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							Nine Months Ended
	September 30,					June 30,		September 30,
(in millions), (unaudited)	2024		2023			2024		2024		2023
Nonoperating income (expense), GAAP basis	$	259	$	171		$	214	$	693	$	538
Less: Net income (loss) attributable to NCI		60		(9	)		42		152		60
Nonoperating income (expense), net of NCI		199		180			172		541		478
Less: Hedge gain (loss) on deferred cash compensation plans (a)		9		(4	)		7		47		29
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2)	$	190	$	184		$	165	$	494	$	449

See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 12 and 13 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							Nine Months Ended
	September 30,					June 30,		September 30,
(in millions, except per share data), (unaudited)	2024			2023		2024		2024			2023
Net income attributable to BlackRock, Inc., GAAP basis	$	1,631		$	1,604	$	1,495	$	4,699		$	4,127
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)		(2	)		1		2		(3	)		-
Amortization and impairment of intangible assets (b)		67			30		29		124			86
Acquisition-related compensation costs (b)		8			4		13		23			11
Acquisition-related transaction costs (b)		13			3		10		38			5
Contingent consideration fair value adjustments (b)		(2	)		-		1		(6	)		1
Lease costs - New York (c)		-			-		-		-			11
Income tax matters		-			-		-		(137	)		-
Net income attributable to BlackRock, Inc., as adjusted (3)	$	1,715		$	1,642	$	1,550	$	4,738		$	4,241
Diluted weighted-average common shares outstanding		149.6			150.5		149.7		149.8			150.9
Diluted earnings per common share, GAAP basis	$	10.90		$	10.66	$	9.99	$	31.37		$	27.36
Diluted earnings per common share, as adjusted (3)	$	11.46		$	10.91	$	10.36	$	31.63		$	28.11

(1)

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 13 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:

(a)

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. 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 net 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.

(b)

Acquisition-related costs. Acquisition related costs include adjustments related to amortization and noncash impairment of intangible assets, other acquisition-related costs, including professional services expense and 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.

(c)

Lease costs – New York. In 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.

(d)

Reduction of indemnification asset. In connection with a previous acquisition, BlackRock recorded an $8 million indemnification asset. Due to the resolution of certain tax matters 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. The $8 million general and administrative expense and $8 million tax benefit have been excluded from as adjusted results as there was no impact on BlackRock’s book value.

•

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.

For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amount for income tax matters in 2024 includes a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization.

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 have 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 and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. 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 assets under management; (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 recent or future acquisitions or divestitures, including the acquisitions of GIP and Preqin Holding Limited (“Preqin” and together with GIP, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the Transactions, including the possibility that the Preqin acquisition does not close, including, but not limited to, due to the failure to satisfy closing conditions, the possibility that expected synergies and value creation from either of the Transactions 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 Transactions; (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 artificial intelligence; (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 environmental, social and governance 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 BlackRock; (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 BlackRock; (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 exchange-traded funds 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 September 30, 2024 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 August 31, 2024. The performance data does not include accounts terminated prior to September 30, 2024 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 September 30, 2024 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.

BlackRock (BLK) 8-KBlackRock Reports Third Quarter 2024 Diluted EPS of $10.90, or $11.46 as adjusted