Core Insights - MarketWise, Inc. is a leading multi-brand digital subscription services platform focused on providing premium financial research, software, education, and tools for self-directed investors [1][3][4] - The Chief Financial Officer, Erik Mickels, will host in-person meetings at the UBS Financial Services Forum on February 11, 2025 [1] Company Overview - MarketWise was founded with the mission to level the playing field for self-directed investors and has over 25 years of operating history [3][4] - The company serves millions of free and paid subscribers, offering trusted financial research, education, actionable investment ideas, and investment software [4] - MarketWise operates as a 100% digital, direct-to-customer company, providing research across various platforms including mobile, desktops, and tablets [4] - The company aims to become the leading financial solutions platform for self-directed investors with a proven, agile, and scalable platform [4]

Core Viewpoint - MarketWise, Inc. reported preliminary financial and operational updates for Q4 2024, highlighting a significant sequential increase in billings and a return to cash generation, with expectations to release full year 2024 results in March 2025 [1][4]. Financial Performance - Billings for Q4 2024 totaled approximately $55 million, representing over a 10% sequential increase compared to Q3 2024 [8]. - The estimated cash and cash equivalents increased from $94 million at September 30, 2024, to $98 million at December 31, 2024 [8]. - The company returned to positive cash flow generation in Q4 2024 after three quarters of negative cash flow [8]. Shareholder Returns - A special dividend of $0.03 per share was announced, totaling approximately $1.3 million, to be paid on February 26, 2025, to shareholders of record as of January 29, 2025 [6][8]. Subscriber Metrics - As of December 31, 2024, consolidated paid subscribers were 506 thousand, while active free subscribers were 3.3 million [8]. Strategic Outlook - The interim CEO expressed confidence in the company's strategic pillars of growth, efficiency, and new business, indicating potential for increasing intrinsic value per share over time [4]. - The company plans to report full and audited results for the fourth quarter and year ended December 31, 2024, no later than March 31, 2025 [7].

Core Viewpoint - MarketWise, Inc. is actively participating in the 27th Annual Needham Growth Conference, showcasing its commitment to engaging with investors and promoting its digital subscription services platform for self-directed investors [1][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 [1][4]. - The company has over 25 years of operating history and serves millions of free and paid subscribers, offering trusted financial research and actionable investment ideas [5]. - MarketWise operates as a 100% digital, direct-to-customer company, delivering its services across various platforms including mobile, desktops, and tablets [5]. Conference Details - The 27th Annual Needham Growth Conference is scheduled from January 9-17, 2025, featuring presentations, fireside chats, thematic panels, and one-on-one meetings for qualified institutional, private equity, and venture capital investors [3]. - Chief Financial Officer Erik Mickels will host virtual meetings during the conference on January 16, 2025 [1].

Company Overview - MarketWise is a leading multi-brand subscription services platform providing 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 [1] - MarketWise operates as a 100% digital, direct-to-customer company, offering its research across mobile, desktops, and tablets [1] - The company aims to become the leading financial solutions platform for self-directed investors [1] Emerging Growth Conference Participation - MarketWise has been invited to present at the Emerging Growth Conference on January 15, 2025 [5] - The presentation will be conducted by the company's Chief Financial Officer, Erik Mickels, and will include a live, interactive Q&A session [6][7] - The presentation is scheduled for 11:25 AM Eastern time and will last for 30 minutes [7] - The conference focuses on companies with strong management teams, innovative products, and long-term growth potential, targeting individual and institutional investors, as well as investment advisors and analysts [3][8] Investor Engagement - MarketWise invites individual and institutional investors, advisors, and analysts to attend its real-time, interactive presentation at the Emerging Growth Conference [6] - An archived webcast of the presentation will be available on the Emerging Growth Conference website and YouTube channel for those unable to attend live [7]

Financial Performance - Total Net Revenue for Q3 2024 was $97.2 million, a decrease of 8.4% compared to $106.2 million in Q3 2023[2] - Total net revenue for Q3 2024 was $97.186 million, a decrease of 8.9% compared to $106.150 million in Q3 2023[26] - Year-to-date Net Revenue for the nine months ended September 30, 2024 was $311.2 million, a decrease of 7% compared to the same period in the prior year[5] Subscriber Metrics - Paid Subscribers decreased to 592 thousand as of September 30, 2024, down from 774 thousand a year earlier, representing a decline of 23.5%[2] - The company plans to focus on attracting new subscribers and enhancing product offerings to drive future growth[24] Billing Information - Total Billings for Q3 2024 were $48.9 million, a significant decrease of 48.8% compared to $95.5 million in Q3 2023[2] - Year-to-date Total Billings for the nine months ended September 30, 2024 were $183.7 million, a decrease of 36.4% compared to the same period in the prior year[5] Income and Profitability - Net Income for Q3 2024 was $22.7 million, an increase of 89.2% compared to $12.0 million in Q3 2023[2] - Net income for Q3 2024 was $22.746 million, representing an increase of 88.5% from $12.044 million in Q3 2023[26] - Year-to-date Net Income for the nine months ended September 30, 2024 was $66.7 million, an increase of 27% compared to the same period in the prior year[5] - Net income for the year to date 2024 is $66,698, compared to $52,392 in the same period of 2023, representing a year-over-year increase of 27.5%[28] Cash and Liquidity - Cash and Cash Equivalents stood at $94.1 million as of September 30, 2024, down from $155.2 million at the end of 2023[8] - Cash and cash equivalents decreased to $94.111 million as of September 30, 2024, down from $155.174 million at the end of 2023[27] - Cash, cash equivalents, and restricted cash at the end of the period for 2024 is $94,111, down from $194,023 at the end of the same period in 2023[28] Operating Expenses - Operating expenses for Q3 2024 totaled $75.284 million, down 20.8% from $95.108 million in Q3 2023[26] Cash Flow - The company reported a Net Cash Used in Operating Activities of $28.1 million for the nine months ended September 30, 2024, compared to a Net Cash Provided of $44.9 million for the same period in the prior year[6] - Net cash used in operating activities for the year to date 2024 is $(28,135), a significant decrease from $44,901 in the same period of 2023[28] - Cash flows from investing activities show a net cash used of $(788) for the year to date 2024, compared to $(1,658) in the same period of 2023[28] - Net cash used in financing activities for the year to date 2024 is $(32,131), an increase from $(7,806) in the same period of 2023[28] Assets and Liabilities - Total current assets were $172.495 million, a significant decline from $267.841 million at the end of 2023[27] - Total liabilities decreased to $525.466 million as of September 30, 2024, compared to $685.498 million at the end of 2023[27] - The accumulated deficit improved to $(121.422) million as of September 30, 2024, from $(126.343) million at the end of 2023[27] Deferred Revenue and Costs - Deferred revenue for the year to date 2024 has increased to $(133,595) from $(44,288) in the same period of 2023, indicating a rise of 201.5%[28] - The company has incurred $50,397 in deferred contract acquisition costs for the year to date 2024, compared to $23,566 in the same period of 2023, reflecting a growth of 113%[28] Related Party Revenue - Related party revenue for Q3 2024 was $211 thousand, down from $351 thousand in Q3 2023[26] Stock-Based Compensation - The company reported a decrease in stock-based compensation to $8,668 for the year to date 2024, down from $10,956 in the same period of 2023[28] Accounts Receivable - The company reported a decrease in accounts receivable to $2,304 for the year to date 2024, compared to a negative $(1,918) in the same period of 2023[28]

Core Insights - MarketWise, Inc. reported a decline in paid subscribers and total net revenue for Q3 2024 compared to the same period in 2023, with paid subscribers decreasing from 774 thousand to 592 thousand and total net revenue dropping from $106.2 million to $97.2 million [2][4][5] - Despite the revenue decline, the company achieved a net income of $22.7 million in Q3 2024, up from $12.0 million in Q3 2023, indicating improved profitability [2][4][5] - The company is optimistic about future growth, citing an increase in October billings to approximately $19 million, suggesting potential recovery after several quarters of decline [3][4] Financial Performance - Total net revenue for the nine months ended September 30, 2024, was $311.2 million, a decrease of 7% compared to the same period in the prior year [4] - Total billings for the same period were $183.7 million, reflecting a significant decrease of 36.4% year-over-year [4] - The net income for the nine months ended September 30, 2024, was $66.7 million, an increase of 27% compared to the previous year [4] Subscriber Metrics - The number of paid subscribers decreased to 592 thousand as of September 30, 2024, down from 774 thousand a year earlier [2][5] - Average revenue per user (ARPU) for Q3 2024 was $417, down from $496 in Q3 2023 [6] Cash Flow and Capital Structure - As of September 30, 2024, the company had cash and cash equivalents of $94.1 million, a decrease from $155.2 million at the end of 2023 [7][25] - The company reported net cash used in operating activities of $28.1 million for the nine months ended September 30, 2024, compared to net cash provided of $44.9 million in the same period of the previous year [4][27] Strategic Outlook - The interim CEO emphasized ongoing efforts to optimize business operations, improve revenue and margins, and advance strategic priorities for growth [3] - The company plans to continue launching new brands and enhancing its product pipeline, which is expected to contribute to future revenue growth [3]

Subscriber Metrics - Paid Subscribers decreased to 592 thousand as of September 30, 2024, down 182 thousand or 23.5% from 774 thousand as of September 30, 2023[95] - Free Subscribers decreased by 1.0 million, or 6.4%, to 15.3 million as of September 30, 2024, compared to 16.3 million at the same date in 2023[107] - Active Free Subscribers decreased by 0.7 million, or 17.5%, to 3.3 million as of September 30, 2024, compared to 4.0 million as of September 30, 2023[107] - Total Paid Subscribers decreased by 182 thousand, or 23.5%, to 592 thousand as of September 30, 2024, compared to 774 thousand at the same date in 2023[110] - The high-value composition rate was 52% of Paid Subscribers as of September 30, 2024[100] Financial Performance - Total net revenue for Q3 2024 was $97.2 million, a decrease of 8.4% compared to $106.2 million in Q3 2023[95] - Net income increased to $22.7 million in Q3 2024, compared to $12.0 million in Q3 2023[95] - For the nine months ended September 30, 2024, net revenue was $311,223, a decrease of 7.4% from $336,027 in the same period of 2023[136] - The net income for the nine months ended September 30, 2024, was $66.7 million, up from $52.4 million in the same period of 2023[159] Revenue and Billings - Total Billings in Q3 2024 were $48.9 million, down 48.8% from $95.5 million in Q3 2023[95] - New Marketing Billings were $32.3 million in Q3 2024, down 56.1% from $73.7 million in Q3 2023[105] - Net Renewal Billings were $15.7 million in Q3 2024, a decrease of 24.2% from $20.8 million in Q3 2023[105] - The decrease in net revenue was primarily driven by a $7.7 million decrease in term subscription revenue and a $1.0 million decrease in membership subscription revenue[129] - Total Billings decreased by $46.6 million, or 48.8%, to $48.9 million for the third quarter 2024, compared to $95.5 million for the third quarter 2023[112] Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2024, were $75,284, down 20.8% from $95,108 in the same period of 2023[131] - Sales and marketing expenses decreased by 30.2% to $36,644, primarily due to a reduction in marketing spend and workforce[133] - Total operating expenses for the nine months ended September 30, 2024, were $246,432, down 13.7% from $285,458 in the same period of 2023[139] - Cost of revenue for the nine months ended September 30, 2024, decreased by 9.3% to $39,649, primarily due to a reduction in credit card fees and salaries[140] Cash Flow and Financing - Cash and cash equivalents stood at $94.1 million as of September 30, 2024[95] - The company reported a cash float of approximately $119.9 million as of September 30, 2024, compared to $120.5 million at the end of 2023[151] - For the nine months ended September 30, 2024, net cash used in operating activities was $28.1 million, a decrease from $44.9 million provided in the same period of 2023[159] - Net cash used in financing activities increased to $32.1 million for the nine months ended September 30, 2024, from $7.8 million in the same period of 2023[163] Management and Organizational Changes - The company appointed Dr. David Eifrig as Interim CEO in August 2024, with founder Porter Stansberry remaining on the Board[95] - The company plans to discontinue reporting Free Subscribers and will only report Active Free Subscribers starting from the first quarter of 2025[107] - The company incurred separation costs of approximately $1.3 million and $2.3 million for the three and nine months ended September 30, 2024, respectively, due to the Legacy Reorganization[154] - The annualized compensation cost savings associated with terminated employees from the Legacy Reorganization is estimated at $16.1 million[154] Other Financial Metrics - Average Revenue Per User (ARPU) was $417 as of September 30, 2024, a decrease of 15.9% from $496 as of September 30, 2023[100] - Adjusted CFFO for the three months ended September 30, 2024, was $(5,829) thousand, a decrease of 148.4% compared to $12,055 thousand for the same period in 2023[146] - Adjusted CFFO Margin for the three months ended September 30, 2024, was (11.9)%, down from 12.6% in the prior year[149] - Non-cash items in operating activities included stock-based compensation expense of $8.7 million and depreciation and amortization of $2.0 million for the nine months ended September 30, 2024[159]

Company Overview - MarketWise, Inc. is a leading multi-brand digital subscription services platform focused on providing premium financial research, software, education, and tools for self-directed investors [2] - The company has over 25 years of operating history and serves millions of Free and Paid Subscribers [2] - MarketWise aims to become the leading financial solutions platform for self-directed investors [2] Upcoming Financial Results - MarketWise plans to release its third quarter 2024 financial results before the market opens on November 7, 2024 [1] - An earnings press release will be provided alongside the required SEC filings, containing supplemental information [1] - Investors can submit written questions to the company via email [1]

Financial Results - MarketWise, Inc. announced its financial results for Q2 2024, ending June 30, 2024[3] - The letter to shareholders was issued on August 14, 2024[3] Company Classification - The company is classified as an emerging growth company[2] Reporting Details - The report includes a cover page interactive data file embedded within the Inline XBRL document[4] Management - Erik Mickels serves as the Chief Financial Officer of MarketWise, Inc.[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ 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: 001-39405 MarketWise, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 87-1767914 (State or other jurisdiction of incorpora ...