Company Overview - MarketWise, Inc. is a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors [4] - The company has over 25 years of operating history and serves millions of free and paid subscribers [5] - MarketWise operates as a 100% digital, direct-to-customer company, offering its research across various platforms including mobile, desktops, and tablets [5] Upcoming Events - The Chief Financial Officer, Erik Mickels, will host virtual meetings at the UBS SMID-Cap Multisector Virtual Conference on June 24, 2025 [1] - The inaugural UBS SMID-Cap Multisector Virtual Conference aims to showcase small and mid-cap companies and connect them with diverse investors across multiple US regions [3]

Core Points - MarketWise, Inc. declared a quarterly cash dividend of $0.20 per share for Class A common stock and a comparable distribution for MarketWise, LLC units [1] - A special dividend of $0.10 per share for Class A common stock was also announced, totaling approximately $0.3 million [2] - Both the regular and special dividends will be paid on June 25, 2025, with a Record Date of May 15, 2025 [2] Company Overview - MarketWise is a leading multi-brand digital subscription services platform focused on providing premium financial research, software, education, and tools for self-directed investors [3] - The company has over 25 years of operating history and serves millions of free and paid subscribers [4] - MarketWise operates as a 100% digital, direct-to-customer company, offering its research across various platforms including mobile, desktops, and tablets [4] - The company's vision is to become the leading financial solutions platform for self-directed investors [4]

Core Insights - MarketWise (NASDAQ: MKTW) is identified as an interesting business but is described as a "mess" [1] - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] Company Offerings - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] - A promotional offer is available for a two-week free trial to engage with oil and gas investment opportunities [3]

Core Insights - MarketWise, Inc. reported preliminary financial and operational updates for Q1 2025, highlighting a strong performance with a focus on strategic priorities [1][4] - The company experienced a billings increase of over 26% compared to Q4 2024, totaling approximately $70 million for Q1 2025 [4][8] - MarketWise has a solid balance sheet with estimated cash and cash equivalents of $79 million and no debt, allowing for operational flexibility [5][4] Financial Performance - Billings for Q1 2025 reached approximately $70 million, representing a sequential increase of over 26% compared to Q4 2024 [4][8] - Dividends paid in the last twelve months totaled $1.60 per share, equating to a cash yield of over 16% based on the stock price as of March 31, 2025 [4][8] - The company has initiated share buybacks in Q2 2025 under a previously announced buyback program [8] Subscriber Metrics - As of March 31, 2025, MarketWise had 473 thousand consolidated paid subscribers and 3.0 million active free subscribers [8] Capital Structure - Following a 1-for-20 reverse stock split on April 2, 2025, the company had approximately 2,572,676 Class A common shares and 13,732,864 Class B common shares outstanding, totaling 16,305,540 shares on a post-split basis [6]

Financial Updates - MarketWise, Inc. announced preliminary selected unaudited financial and operational updates for Q1 2025 on April 11, 2025[6]. - The press release detailing the financial results is included as Exhibit 99.1[8]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4].

Core Insights - MarketWise, Inc. (NASDAQ: MKTW) is currently underfollowed and undercovered among investors, indicating a potential opportunity for investment [1] - The company faced significant challenges last year, including the closure of one of its business units and the resignation of its founder and CEO, which may impact its future performance [1] Company Overview - MarketWise, Inc. operates in a sector that has seen limited investor attention, suggesting that it may be undervalued [1] - The company is part of a broader market trend where small to mid-cap companies are often less researched, presenting asymmetric investment opportunities [1] Investment Perspective - The analysis highlights the importance of diligent research in identifying potential investment opportunities within undercovered companies [1] - The focus on technology, software, electronics, and energy transition sectors aligns with current market trends and investor interests [1]

Core Viewpoint - MarketWise, Inc. will implement a 1-for-20 reverse stock split to enhance its stock price and meet Nasdaq listing requirements, effective April 2, 2025 [1][6]. Group 1: Reverse Stock Split Details - The reverse stock split will reduce the number of issued and outstanding Class A common stock from approximately 49,487,262 shares to about 2,474,363 shares, and Class B common stock from approximately 276,623,803 shares to about 13,831,190 shares [3]. - The authorized Class A common stock will decrease from 950,000,000 shares to 47,500,000 shares, and Class B common stock from 300,000,000 shares to 15,000,000 shares [5]. - Fractional shares resulting from the reverse stock split will be paid in cash based on the closing price on April 2, 2025 [6]. Group 2: Rationale and Expectations - The reverse stock split aims to bring the stock price into a range more aligned with the company's market capitalization, making it more appealing to institutional investors and improving market perception [3]. - The company believes that the higher share price will help meet Nasdaq's minimum bid price requirement of $1.00 per share [6]. Group 3: Company Overview - MarketWise is a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors [7]. - The company has over 25 years of operating history and serves millions of subscribers, offering its products through various digital platforms [8].

Subscriber Metrics - Paid Subscribers decreased by 231 thousand, or 31.4%, to 506 thousand as of December 31, 2024, compared to 737 thousand as of December 31, 2023[272]. - Free Subscribers decreased by 2.4 million, or 14.4%, to 14.1 million as of December 31, 2024, compared to 16.4 million as of December 31, 2023[292]. - Active Free Subscribers decreased by 0.7 million, or 18.1%, to 3.3 million as of December 31, 2024, compared to 4.1 million as of December 31, 2023[292]. - The high-value composition rate was 56% of Paid Subscribers as of December 31, 2024, indicating a strong retention of high-value customers[280]. - Subscriber churn rate ranged from approximately 2.4% to 3.3% per month between 2022 and 2024, with a net revenue retention rate averaging over 55% during the same period[298]. Financial Performance - Total net revenue was $408.7 million for the full year 2024, down from $448.2 million for the full year 2023, representing a decrease of 8.8%[272]. - Net revenue for 2024 was $405.357 million, a decrease from $443.245 million in 2023, reflecting ongoing challenges in subscriber engagement[331]. - Net income increased to $93.1 million for the full year 2024, compared to $54.3 million for the full year 2023, marking a growth of 71.6%[272]. - Average Revenue Per User (ARPU) decreased by 21.7% to $394 as of December 31, 2024, down from $503 as of December 31, 2023[279]. - Total Billings were $239.1 million for the full year 2024, a decline of 37.4% from $382.4 million for the full year 2023[272]. Revenue and Billing Details - Total Billings decreased by $143.3 million, or 37.5%, to $239.1 million in 2024 compared to $382.4 million in 2023, primarily due to the winding down of Legacy Research Group brands[312]. - New Marketing Billings decreased by $115.5 million, or 41.5%, to $162.8 million in 2024 compared to $278.3 million in 2023, driven by ceasing new sales campaigns within Legacy Research Group brands[307]. - Net Renewal Billings decreased by $26.5 million, or 27.3%, to $70.3 million in 2024 compared to $96.8 million in 2023, due to a significant decrease in average Paid Subscribers[309]. - Term subscription revenue decreased by $41.4 million, while membership subscription revenue increased by $3.6 million during the same period[335]. Operating Expenses and Cost Management - Operating expenses totaled $319.713 million in 2024, down from $396.377 million in 2023, indicating cost management efforts[331]. - Sales and marketing expenses decreased by $37.9 million or 19.1%, primarily due to reduced marketing spend and lower amortization of deferred contract acquisition costs[339]. - General and administrative expenses decreased by $34.5 million or 27.5%, driven by a reduction in headcount and stock-based compensation[340]. - The company incurred separation costs of approximately $2.3 million related to the Legacy Reorganization within general and administrative expenses[383]. Cash Flow and Liquidity - Adjusted cash flow from operations (CFFO) was $(22.15) million in 2024, a decline of 133.4% from $66.4 million in 2023[353]. - The estimated amount of cash float was approximately $119.7 million as of December 31, 2024, slightly down from $120.5 million in 2023[362]. - Interest income earned on cash portfolio was $5.9 million in 2024, compared to $5.7 million in 2023[364]. - As of December 31, 2024, the company's principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $97.9 million[367]. - For the year ended December 31, 2024, net cash used in operating activities was $22.2 million, primarily due to a net income of $93.1 million adjusted for non-cash items and changes in operating assets and liabilities[387]. Impairment and Tax Obligations - Impairment losses related to Legacy Research and Buttonwood Publishing businesses amounted to $4.445 million in 2024[324]. - Impairment losses increased by 72.1% to $4.4 million in 2024, attributed to charges related to deferred contract acquisition costs and intangible assets[341]. - The company expects to incur significant payment obligations under the Tax Receivable Agreement, which may adversely affect its liquidity and financial condition if not managed properly[370]. Shareholder Returns and Capital Management - The share repurchase program authorized up to $35.0 million, with $13.1 million spent to repurchase 2,484,717 shares during the year ended December 31, 2022[376]. - In 2023, the company initiated paying dividends to Class A common stockholders and distributions to holders of LLC Units, totaling $5.7 million in dividends paid[393]. - The company made a quarterly tax distribution of $15.1 million in January 2025, which exceeded its corporate tax liability and allowed for a special dividend declaration[371]. Accounting and Revenue Recognition - Subscription revenues are recognized evenly over the duration of the subscriptions, reflecting the consideration expected in exchange for services[399]. - The estimated life of membership customers was determined to be five years for the years ended December 31, 2024, 2023, and 2022[400]. - The amortization period for capitalized contract costs was approximately four years for each of the years ended December 31, 2024, 2023, and 2022[402]. - Management evaluates significant accounting estimates and assumptions that affect reported amounts of assets, liabilities, revenue, costs, and expenses[396]. - The company recognizes revenue related to membership subscriptions over the estimated customer lives, which is five years[400].

Core Insights - MarketWise, Inc. reported a sequential increase in Billings of over $55 million for Q4 2024, reflecting a 10% growth compared to Q3 2024, and a return to profitability [3] - The company anticipates continued growth in Q1 2025, with Billings over 10% higher than the same period in Q4 2024, driven by compelling content and successful customer acquisition [3] - A reverse stock split is expected to enhance the company's market perception and attract institutional investors [3] - The Board approved a quarterly dividend of $0.01 and authorized a share repurchase program of up to $50 million, indicating a commitment to return capital to shareholders [3] Q4 2024 Highlights - Paid Subscribers decreased to 506 thousand from 737 thousand year-over-year [5] - Total Net Revenue for Q4 2024 was $97.5 million, down from $112.2 million in Q4 2023 [5] - Total Billings for Q4 2024 were $55.4 million, a decrease from $93.6 million in Q4 2023 [5] - Net Income for Q4 2024 was $26.4 million, significantly up from $1.9 million in Q4 2023 [5] - Cash from Operating Activities was $6.0 million, down from $17.5 million in Q4 2023 [5] Full Year 2024 Highlights - Total Net Revenue for the year was $408.7 million, an 8.8% decrease from the previous year [6] - Total Billings for the year were $239.1 million, a 37.5% decrease compared to the prior year [6] - Net Income for the year was $93.1 million, a 71.5% increase from the previous year [6] - Net Cash Used in Operating Activities was $22.2 million, compared to a net cash provided of $62.4 million in the prior year [6] Financial Metrics - The company reported an Average Revenue Per User (ARPU) of $394 for Q4 2024, down from $503 in Q4 2023 [7] - Adjusted Cash Flow from Operations (CFFO) for Q4 2024 was $5.985 million, a 72.1% decrease from $21.467 million in Q4 2023 [24] - The Adjusted CFFO Margin for Q4 2024 was 10.8%, down from 22.9% in Q4 2023 [24] Balance Sheet and Capital Structure - As of December 31, 2024, cash and cash equivalents were $97.9 million, down from $155.2 million at the end of 2023 [8] - Total assets decreased to $259.5 million from $396.6 million year-over-year [31] - Total liabilities were $477.4 million, down from $685.5 million at the end of 2023 [31]

Financial Results - MarketWise, Inc. announced preliminary selected unaudited financial results for Q4 2024 on January 15, 2025[6]. - The financial updates include operational metrics that will be detailed in the press release[6]. Dividends - The Board of Directors declared a special dividend of $0.03 per share for Class A common stock, payable on February 26, 2025[9]. - The Record Date for the special dividend is set for January 29, 2025[9]. Investor Relations - The company has prepared an investor presentation to discuss its business with investors and analysts[8]. - The investor presentation is available on the company's investor relations site[8]. - The press release detailing financial updates is available as Exhibit 99.1[11]. - The company continues to engage with stakeholders to provide insights into its business strategy[8]. Company Classification - MarketWise, Inc. is classified as an emerging growth company under the Securities Act[4]. Accounting Standards - The company is not using the extended transition period for new financial accounting standards[5].