How did T. Rowe Price's revenue and expenses trend in Q4 2024?

**T. Rowe Price's revenue and expenses in Q4 2024 showed a positive revenue growth and a notable increase in net income compared to the same period last year, reflecting improved financial performance.** 1. **Revenue Growth**: The company reported a revenue of $1.79 billion for the quarter ended September 2024, marking a 6.9% increase year-over-year. This growth in revenue indicates a strong market performance and increased investor interest in T. Rowe Price's services. 2. **Net Income Increase**: The net income for the quarter was $603 million, with earnings per share (EPS) of $2.57, surpassing the same quarter last year's EPS of $2.17. This represents a significant year-over-year increase, reflecting improved profitability and operational efficiency. 3. **Expenses Analysis**: T. Rowe Price's net revenues-capital allocation-based income were $4.60 million, a notable decrease from the $42.37 million estimated by analysts, indicating a potential shift in capital allocation strategies. Additionally, net revenues-administrative, distribution, and servicing fees stood at $148.10 million, slightly higher than the $156 million average estimate. This suggests that while administrative expenses were managed well, there may have been some unexpected costs associated with distribution and servicing fees. 4. **Assets Under Management (AUM)**: The AUM for equity was $813.1 billion, slightly lower than the estimated $833.99 billion. The AUM for multi-asset was $542.3 billion, also below the estimated $554.11 billion. This indicates that while the company has a strong AUM base, it has not yet reached its full potential in terms of asset growth. 5. **Cash Flows**: The company experienced a total net cash inflow of -$12.2 billion, which was worse than the estimated -$4 billion. This negative cash flow could be a concern for investors, especially if it indicates a decline in investor confidence or a shift in investor behavior. In conclusion, T. Rowe Price's Q4 2024 financial performance demonstrates a positive revenue trend and a significant improvement in net income. However, there are areas of concern, such as the negative cash flow and the slight miss in revenue compared to estimates. The company's strategic shifts in capital allocation and distribution fees will be crucial to monitor for future performance.