Moelis & Co [MC] Filings

10-Q 1 mc-20240630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36418

Moelis & Company

(Exact name of registrant as specified in its charter)


Delaware		46-4500216
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
399 Park Avenue, 4th Floor, New York NY		10022
(Address of principal executive offices)		(Zip Code)

(212) 883-3800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title	Trading Symbol	Name of Exchange on which registered
Class A Common Stock	MC	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of July 10, 2024, there were 70,362,748 shares of Class A common stock, par value $0.01 per share, and 4,432,288 shares of Class B common stock, par value $0.01 per share, outstanding.

TABLE OF CONTENTS


		Page

Part I. Financial Information			3
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
Part II. Other Information			36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures		39

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Financial Statements (Unaudited)


	Page

Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023	4
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023	5
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023	6
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	7
Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023	8
Notes to Condensed Consolidated Financial Statements	10

Moelis & Company

Condensed Consolidated Statements of Financial Condition

(Unaudited)

(dollars in thousands, except per share amounts)


	June 30,		December 31,
	2024		2023
Assets
Cash and cash equivalents	$	150,434	$	186,417
Restricted cash		809		798
Receivables:
Accounts receivable, net of allowance for credit losses of $2,286 and $1,263 as of June 30, 2024 and December 31, 2023, respectively		51,590		51,219
Accrued and other receivables		22,939		12,416
Total receivables		74,529		63,635
Deferred compensation		33,111		17,133
Investments		87,153		210,357
Right-of-use assets		165,158		171,998
Equipment and leasehold improvements, net		66,696		63,803
Deferred tax assets		444,034		437,238
Prepaid expenses and other assets		28,905		28,380
Total assets	$	1,050,829	$	1,179,759
Liabilities and Equity
Compensation payable	$	139,941	$	259,771
Accounts payable, accrued expenses and other liabilities		25,136		32,626
Amount due pursuant to tax receivable agreement		288,410		304,567
Deferred revenue		3,671		4,649
Lease liabilities		209,220		215,684
Total liabilities		666,378		817,297
Commitments and Contingencies (See Note 11)
Class A common stock, par value $0.01 per share (1,000,000,000 shares authorized, 80,712,812 issued and 70,362,748 outstanding at June 30, 2024; 1,000,000,000 authorized, 76,859,499 issued and 66,675,039 outstanding at December 31, 2023)		807		768
Class B common stock, par value $0.01 per share (1,000,000,000 shares authorized, 4,432,288 issued and outstanding at June 30, 2024; 1,000,000,000 authorized, 4,489,778 issued and outstanding at December 31, 2023)		44		45
Treasury stock, at cost; 10,350,064 and 10,184,460 shares at June 30, 2024 and December 31, 2023, respectively		(459,585)		(450,859)
Additional paid-in-capital		1,651,502		1,573,702
Retained earnings (accumulated deficit)		(831,053)		(767,587)
Accumulated other comprehensive income (loss)		(4,171)		(3,928)
Total Moelis & Company equity		357,544		352,141
Noncontrolling interests		26,907		10,321
Total equity		384,451		362,462
Total liabilities and equity	$	1,050,829	$	1,179,759

See notes to the condensed consolidated financial statements (unaudited).

Moelis & Company

Condensed Consolidated Statements of Operations

(Unaudited)

(dollars in thousands, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues	$	264,586	$	179,871	$	482,071	$	367,691
Expenses
Compensation and benefits		197,873		145,794		362,348		294,033
Occupancy		7,073		6,872		14,162		12,706
Professional fees		5,961		6,907		12,126		11,853
Communication, technology and information services		11,990		11,215		24,234		22,049
Travel and related expenses		8,511		9,213		20,474		20,181
Depreciation and amortization		2,434		1,936		4,809		4,009
Other expenses		10,676		7,520		18,048		13,837
Total expenses		244,518		189,457		456,201		378,668
Operating income (loss)		20,068		(9,586)		25,870		(10,977)
Other income and (expenses)		1,708		(5,629)		5,937		(3,883)
Income (loss) before income taxes		21,776		(15,215)		31,807		(14,860)
Provision (benefit) for income taxes		6,855		(1,969)		(599)		(5,177)
Net income (loss)		14,921		(13,246)		32,406		(9,683)
Net income (loss) attributable to noncontrolling interests		1,760		(1,272)		2,679		(1,375)
Net income (loss) attributable to Moelis & Company	$	13,161	$	(11,974)	$	29,727	$	(8,308)
Weighted-average shares of Class A common stock outstanding
Basic		72,148,948		68,504,772		71,239,595		67,852,077
Diluted		75,788,525		68,504,772		75,593,865		67,852,077
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	0.18	$	(0.17)	$	0.42	$	(0.12)
Diluted	$	0.17	$	(0.17)	$	0.39	$	(0.12)

See notes to the condensed consolidated financial statements (unaudited).

Moelis & Company

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(dollars in thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income (loss)	$	14,921	$	(13,246)	$	32,406	$	(9,683)
Foreign currency translation adjustment, net of tax		504		305		(275)		589
Other comprehensive income (loss)		504		305		(275)		589
Comprehensive income (loss)		15,425		(12,941)		32,131		(9,094)
Less: Comprehensive income (loss) attributable to noncontrolling interests		1,788		(1,252)		2,647		(1,327)
Comprehensive income (loss) attributable to Moelis & Company	$	13,637	$	(11,689)	$	29,484	$	(7,767)

See notes to the condensed consolidated financial statements (unaudited).

Moelis & Company

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(dollars in thousands)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities
Net income (loss)	$	32,406	$	(9,683)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Bad debt expense (benefit)		1,667		42
Depreciation and amortization		4,809		4,009
Equity-based compensation		85,935		93,219
Deferred tax provision (benefit)		(599)		(5,135)
Other		(881)		(2,881)
Changes in assets and liabilities:
Accounts receivable		(2,122)		11,948
Accrued and other receivables		(4,214)		(6,947)
Prepaid expenses and other assets		(550)		1,956
Deferred compensation		(15,986)		(12,555)
Compensation payable		(119,829)		(174,492)
Accounts payable, accrued expenses and other liabilities		(6,849)		14,681
Deferred revenue		(978)		2,661
Dividends received		2,155		2,189
Net cash provided by (used in) operating activities		(25,036)		(80,988)
Cash flows from investing activities
Purchases of investments		(40,890)		(34,615)
Proceeds from sales of investments		163,684		213,331
Notes issued to employees		(6,330)		—
Purchases of equipment and leasehold improvements		(7,704)		(6,684)
Net cash provided by (used in) investing activities		108,760		172,032
Cash flows from financing activities
Payments for dividends and tax distributions		(90,726)		(92,953)
Payments for treasury stock purchases		(8,726)		(44,756)
Payments under tax receivable agreement		(20,103)		—
Net cash provided by (used in) financing activities		(119,555)		(137,709)
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash		(141)		(60)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(35,972)		(46,725)
Cash, cash equivalents, and restricted cash, beginning of period		187,215		207,539
Cash, cash equivalents, and restricted cash, end of period	$	151,243	$	160,814
Supplemental cash flow disclosure
Cash paid (received) during the period for:
Income taxes, net	$	1,244	$	2,622
Other non-cash activity:
Class A Partnership Units or other equity converted into Class A Common Stock	$	1,092	$	302
Dividends in kind	$	8,915	$	11,199
Non-cash settlement of accounts receivable	$	261	$	—
Forfeiture of fully-vested Group LP units or other equity units	$	82	$	—

See notes to the condensed consolidated financial statements (unaudited).

Moelis & Company

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

(dollars in thousands, except share amounts)


	Shares											Retained		Accumulated
	Class A	Class B		Class A		Class B				Additional		Earnings		Other
	Common	Common	Treasury	Common		Common		Treasury		Paid-In		(Accumulated		Comprehensive		Noncontrolling		Total
	Stock	Stock	Stock	Stock		Stock		Stock		Capital		Deficit)		Income (Loss)		Interests		Equity
Balance as of January 1, 2024	76,859,499	4,489,778	(10,184,460)	$	768	$	45	$	(450,859)	$	1,573,702	$	(767,587)	$	(3,928)	$	10,321	$	362,462
Net income (loss)	—	—	—		—		—		—		—		16,566		—		919		17,485
Equity-based compensation	3,436,930	—	—		34		—		—		45,618		—		—		14,326		59,978
Other comprehensive income (loss)	—	—	—		—		—		—		—		—		(719)		(60)		(779)
Dividends declared ($0.60 per share of Class A Common Stock) and tax distributions	—	—	—		—		—		—		6,007		(48,066)		—		2,796		(39,263)
Treasury Stock Purchases	—	—	(158,878)		—		—		(8,394)		—		—		—		—		(8,394)
Class A Partnership Units or other equity converted into Class A Common Stock	401,562	(57,490)	—		5		(1)		—		980		—		—		63		1,047
Equity-based payments to non-employees	—	—	—		—		—		—		307		—		—		—		307
Other	—	—	—		—		—		—		—		—		—		(82)		(82)
Balance as of March 31, 2024	80,697,991	4,432,288	(10,343,338)	$	807	$	44	$	(459,253)	$	1,626,614	$	(799,087)	$	(4,647)	$	28,283	$	392,761
Net income (loss)	—	—	—		—		—		—		—		13,161		—		1,760		14,921
Equity-based compensation	14,821	—	—		—		—		—		21,644		—		—		4,313		25,957
Other comprehensive income (loss)	—	—	—		—		—		—		—		—		476		28		504
Dividends declared ($0.60 per share of Class A Common Stock) and tax distributions	—	—	—		—		—		—		2,908		(45,127)		—		(7,485)		(49,704)
Treasury Stock Purchases	—	—	(6,726)		—		—		(332)		—		—		—		—		(332)
Class A Partnership Units or other equity converted into Class A Common Stock	—	—	—		—		—		—		37		—		—		8		45
Equity-based payments to non-employees	—	—	—		—		—		—		299		—		—		—		299
Balance as of June 30, 2024	80,712,812	4,432,288	(10,350,064)	$	807	$	44	$	(459,585)	$	1,651,502	$	(831,053)	$	(4,171)	$	26,907	$	384,451

Condensed Consolidated Statements of Changes in Equity (continued)

(Unaudited)

(dollars in thousands, except share amounts)


	Shares											Retained		Accumulated
	Class A	Class B		Class A		Class B				Additional		Earnings		Other
	Common	Common	Treasury	Common		Common		Treasury		Paid-In		(Accumulated		Comprehensive		Noncontrolling		Total
	Stock	Stock	Stock	Stock		Stock		Stock		Capital		Deficit)		Income (Loss)		Interests		Equity
Balance as of January 1, 2023	73,063,181	4,635,898	(9,076,777)	$	730	$	46	$	(403,857)	$	1,412,795	$	(560,690)	$	(4,529)	$	14,443	$	458,938
Net income (loss)	—	—	—		—		—		—		—		3,666		—		(103)		3,563
Equity-based compensation	3,396,802	—	—		34		—		—		48,656		—		—		10,948		59,638
Other comprehensive income (loss)	—	—	—		—		—		—		—		—		256		28		284
Dividends declared ($0.60 per share of Class A Common Stock) and tax distributions	—	—	—		—		—		—		5,711		(46,097)		—		(5,645)		(46,031)
Treasury Stock Purchases	—	—	(1,057,278)		—		—		(44,526)		—		—		—		—		(44,526)
Class A Partnership Units or other equity converted into Class A Common Stock	240,027	(146,120)	—		3		(1)		—		(1,101)		—		—		1,325		226
Equity-based payments to non-employees	—	—	—		—		—		—		18		—		—		—		18
Balance as of March 31, 2023	76,700,010	4,489,778	(10,134,055)	$	767	$	45	$	(448,383)	$	1,466,079	$	(603,121)	$	(4,273)	$	20,996	$	432,110
Net income (loss)	—	—	—		—		—		—		—		(11,974)		—		(1,272)		(13,246)
Equity-based compensation	13,662	—	—		—		—		—		30,817		—		—		2,764		33,581
Other comprehensive income (loss)	—	—	—		—		—		—		—		—		285		20		305
Dividends declared ($0.60 per share of Class A Common Stock) and tax distributions	—	—	—		—		—		—		5,488		(45,434)		—		(6,976)		(46,922)
Treasury Stock Purchases	—	—	(6,132)		—		—		(230)		—		—		—		—		(230)
Class A Partnership Units or other equity converted into Class A Common Stock	—	—	—		—		—		—		71		—		—		5		76
Equity-based payments to non-employees	—	—	—		—		—		—		15		—		—		—		15
Balance as of June 30, 2023	76,713,672	4,489,778	(10,140,187)	$	767	$	45	$	(448,613)	$	1,502,470	$	(660,529)	$	(3,988)	$	15,537	$	405,689

See notes to the condensed consolidated financial statements (unaudited).

Moelis & Company

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

(dollars in thousands, except share amounts and where explicitly stated)

ORGANIZATION AND BASIS OF PRESENTATION

Moelis & Company and its consolidated subsidiaries (the “Company,” “we,” “our,” or “us”) is a leading global investment bank, incorporated in Delaware. Prior to the Company’s Initial Public Offering (“IPO”), the business operated as a Delaware limited partnership that commenced operations during 2007. Following the IPO, the operations are owned by Moelis & Company Group LP (“Group LP”), a U.S. Delaware limited partnership, and Group LP is controlled by Moelis & Company. Moelis & Company’s shareholders are entitled to receive a portion of Group LP’s economics through their direct ownership interests in shares of Class A common stock of Moelis & Company. The noncontrolling interest owners of Group LP (not Moelis & Company) receive economics of the operations primarily through their ownership interests in Group LP partnership units.

The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, financial sponsors and governments, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings and other corporate finance matters.

Basis of Presentation — The condensed consolidated financial statements of Moelis & Company include its partnership interests in Group LP, its equity interest in the sole general partner of Group LP, Moelis & Company Group GP LLC (“Group GP”), and its interests in its subsidiaries. Moelis & Company will operate and control all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP. The Company operates through the following subsidiaries:

•

Moelis & Company LLC (“U.S. Broker Dealer”), a Delaware limited liability company, a registered broker-dealer with the U.S. Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”).

•

Moelis & Company Israel Ltd., a limited company incorporated in Israel.

•

Moelis & Company International Holdings LLC (“Moelis International”), a Delaware limited liability company, owns the following entities and investments, directly or indirectly:

•

Moelis & Company UK LLP (“Moelis UK”), a limited liability partnership registered under the laws of England and Wales. In addition to the United Kingdom, Moelis UK maintains operations through the following branches:

•

Moelis & Company Europe Limited, Frankfurt am Main Branch (German branch)

•

Moelis & Company UK LLP, DIFC Branch (Dubai branch)

•

Moelis & Company Asia Limited (“Moelis Asia”), a limited company incorporated in Hong Kong licensed under the Hong Kong Securities and Futures Ordinance to provide financial advisory services. In addition to Hong Kong, Moelis Asia maintains operations in Beijing, China through a wholly-owned Chinese subsidiary, Moelis & Company Consulting (Beijing) Company Limited.

•

Moelis & Company Netherlands B.V., a private limited company incorporated in Amsterdam, Netherlands. In addition to Amsterdam, Moelis Netherlands maintains operations in Paris, France through a branch, Moelis & Company Netherlands B.V. French Branch

•

Moelis & Company Europe B.V., a private limited company incorporated in Amsterdam, Netherlands.

•

Moelis & Company India Private Limited, a private limited company incorporated in Mumbai, India.

•

Moelis & Company Assessoria Financeira Ltda. (“Moelis Brazil”), a limited liability company incorporated

in São Paulo, Brazil.

•

Moelis & Company Saudi Limited, a limited liability company incorporated in Riyadh, Saudi Arabia.

•

An equity method investment in MA Financial Group Limited ("MA Financial", previously known as Moelis Australia Limited), a public company listed on the Australian Securities Exchange.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting — The Company prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the combined operations, assets and liabilities of the Company. The Notes are an integral part of the Company's condensed consolidated financial statements. As permitted by the interim reporting rules and regulations set forth by the SEC, the condensed consolidated financial statements presented exclude certain financial information and footnote disclosures normally included in audited financial statements prepared in accordance with U.S. GAAP. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to fairly present the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Consolidation — The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation.

Use of Estimates — The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary.

In preparing the condensed consolidated financial statements, management makes estimates and assumptions regarding:

•

the adequacy of the allowance for credit losses;

•

the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal;

•

the assessment of probable lease terms and the measurement of the present value of such obligations;

•

the assessment of long-lived assets for impairment and measurement of impairment, if applicable;

•

the measurement and realization of deferred taxes;

•

the measurement of amount due pursuant to tax receivable agreement; and

•

other matters that affect the reported amounts and disclosures of contingencies in the condensed consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase.

The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance

Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. and U.K. sovereign debt securities and money market funds.

The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future U.S. medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of June 30, 2024 and 2023, is presented below.


	June 30,
	2024		2023
Cash	$	47,837	$	34,741
Cash equivalents		102,597		125,458
Restricted cash		809		615
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	151,243	$	160,814

Additionally, as of December 31, 2023, the Company held cash of $49,054 and cash equivalents of $137,363.

Receivables — The accompanying condensed consolidated statements of financial condition present accounts receivable balances net of allowance for credit losses based on the Company’s assessment of the collectability of customer accounts.

Included in the accounts receivable balances at June 30, 2024 and December 31, 2023 were $2,432 and $4,422, respectively, of long-term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years. Long-term receivables generated interest income of $23 and $53 for the three months ended June 30, 2024 and 2023, respectively, and $55 and $123 for the six months ended June 30, 2024 and 2023, respectively.

The Company maintains an allowance for credit losses that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. For purposes of determining appropriate allowances, the Company stratifies its population of accounts receivable into two categories, one for short-term receivables and a second for private funds advisory receivables. Each population is separately evaluated using an aging method that results in a percentage reserve based on the age of the receivable, in addition to considerations of historical charge-offs and current economic conditions.

After concluding that a reserved accounts receivable is no longer collectible, the Company will charge-off the receivable. This has the effect of reducing both the gross receivable and the allowance for credit losses. If a reserved accounts receivable is subsequently collected, such recoveries reduce the gross receivable and the allowance for credit losses and is a reduction of bad debt expense, which is recorded within other expenses on the condensed consolidated statement of operations. The combination of recoveries and the provision for credit losses of a reported period comprise the Company’s bad debt expense.

The following tables summarize credit loss allowance activity for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	Accounts Receivable						Accounts Receivable
	Short-term Receivables		Private Funds Advisory Receivables		Total		Short-term Receivables		Private Funds Advisory Receivables		Total
Allowance for Credit Losses, beginning balance	$	1,920	$	35	$	1,955	$	1,043	$	582	$	1,625
Charge-offs, foreign currency translation and other adjustments		(371)		—		(371)		71		—		71
Recoveries		(980)		(4)		(984)		(593)		(19)		(612)
Provision for credit losses		1,682		4

Moelis & Co [MC] Filings
10-Q	[2024-07-25]
10-Q	[2024-04-25]
10-K	[2024-02-22]
10-Q	[2023-11-03]
10-Q	[2023-07-27]
10-Q	[2023-04-27]
10-K	[2023-02-23]
10-Q	[2022-11-03]
10-Q	[2022-07-28]
10-Q	[2022-04-28]
10-K	[2022-02-23]
10-Q	[2021-10-28]
10-Q	[2021-07-28]
10-Q	[2021-04-29]
10-K	[2021-02-24]
10-Q	[2020-10-28]
10-Q	[2020-07-30]
10-Q	[2020-04-29]
10-K	[2020-02-27]
10-Q	[2019-10-31]
10-Q	[2019-07-31]
10-Q	[2019-05-01]
10-K	[2019-02-27]
10-Q	[2018-10-31]
10-Q	[2018-07-27]
10-Q	[2018-05-03]
10-K	[2018-02-28]
10-Q	[2017-11-02]
10-Q	[2017-08-02]
10-Q	[2017-05-04]
10-K	[2017-02-28]
10-Q	[2016-11-03]
10-Q	[2016-08-05]
10-Q	[2016-05-05]
10-K	[2016-03-14]
10-Q	[2015-11-04]
10-Q	[2015-08-06]
10-Q	[2015-05-08]
10-K	[2015-02-27]
S-1	[2014-11-10]
10-Q	[2014-11-07]
10-Q	[2014-08-13]
10-Q	[2014-05-22]
S-1	[2014-03-04]