What caused BLK's revenue surprises in Q3 and Q4 2024?

BlackRock's (BLK) revenue surprises in Q3 and Q4 2024 can be attributed to several key factors: 1. **Net Inflows and Organic Asset Growth**: In Q3 2024, BlackRock experienced $360 billion of year-to-date total net inflows, surpassing the full year net inflows of 2022 and 2023. This reflects continued strength in its broad-based platform and indicates a robust demand for its investment services. The record $221 billion of quarterly total net inflows represent an 8% annualized organic asset growth, which was positive across client type, product type, active and index, and regions. This diversified growth contributes to the company's revenue outperformance. 2. **Market Conditions and Performance Fees**: The revenue growth in Q3 and Q4 2024 can also be attributed to the positive impact of markets on average AUM (Assets Under Management) and higher performance fees. The 15% increase in revenue year-over-year, as reported in Q3 2024, was driven by these factors, indicating that the company's investment performance is directly contributing to its revenue growth. 3. **Strategic Acquisitions**: BlackRock's acquisition of Global Infrastructure Partners (GIP) on October 1, 2024, added $116 billion of client AUM and $70 billion of fee-paying AUM. This strategic move has enhanced the company's AUM and fee-paying assets, thereby boosting its revenue potential. 4. **Bitcoin ETF Inflows**: The remarkable inflows into BlackRock's iShares Bitcoin Trust, amounting to $4.7 billion, have been a significant contributor to the company's revenue. This trend highlights investor interest and market confidence in the cryptocurrency investment space, positioning BlackRock as a leading player in the Bitcoin ETF market. In conclusion, BlackRock's revenue surprises in Q3 and Q4 2024 are primarily driven by net inflows and organic asset growth, market conditions and performance fees, strategic acquisitions, and the inflows into its Bitcoin ETF. These factors combined have contributed to the company's robust revenue performance and underscore its strategic positioning in the investment market.