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MarketWise(MKTW) - 2024 Q3 - Quarterly Results
MKTWMarketWise(MKTW)2024-11-07 14:10

Financial Performance - Total Net Revenue for Q3 2024 was 97.2million,adecreaseof8.497.2 million, a decrease of 8.4% compared to 106.2 million in Q3 2023[2] - Total net revenue for Q3 2024 was 97.186million,adecreaseof8.997.186 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 311.2million,adecreaseof7311.2 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 95.5millioninQ32023[2]−Year−to−dateTotalBillingsfortheninemonthsendedSeptember30,2024were95.5 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 22.7million,anincreaseof89.222.7 million, an increase of 89.2% compared to 12.0 million in Q3 2023[2] - Net income for Q3 2024 was 22.746million,representinganincreaseof88.522.746 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 66.7million,anincreaseof2766.7 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 52,392inthesameperiodof2023,representingayear−over−yearincreaseof27.552,392 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 155.2millionattheendof2023[8]−Cashandcashequivalentsdecreasedto155.2 million at the end of 2023[8] - Cash and cash equivalents decreased to 94.111 million as of September 30, 2024, down from 155.174millionattheendof2023[27]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodfor2024is155.174 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 194,023attheendofthesameperiodin2023[28]OperatingExpenses−OperatingexpensesforQ32024totaled194,023 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 95.108millioninQ32023[26]CashFlow−ThecompanyreportedaNetCashUsedinOperatingActivitiesof95.108 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 44.9millionforthesameperiodintheprioryear[6]−Netcashusedinoperatingactivitiesfortheyeartodate2024is44.9 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 44,901inthesameperiodof2023[28]−Cashflowsfrominvestingactivitiesshowanetcashusedof44,901 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)inthesameperiodof2023[28]−Netcashusedinfinancingactivitiesfortheyeartodate2024is(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)inthesameperiodof2023[28]AssetsandLiabilities−Totalcurrentassetswere(7,806) in the same period of 2023[28] Assets and Liabilities - Total current assets were 172.495 million, a significant decline from 267.841millionattheendof2023[27]−Totalliabilitiesdecreasedto267.841 million at the end of 2023[27] - Total liabilities decreased to 525.466 million as of September 30, 2024, compared to 685.498millionattheendof2023[27]−Theaccumulateddeficitimprovedto685.498 million at the end of 2023[27] - The accumulated deficit improved to (121.422) million as of September 30, 2024, from (126.343)millionattheendof2023[27]DeferredRevenueandCosts−Deferredrevenuefortheyeartodate2024hasincreasedto(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)inthesameperiodof2023,indicatingariseof201.5(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 23,566inthesameperiodof2023,reflectingagrowthof11323,566 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 351thousandinQ32023[26]Stock−BasedCompensation−Thecompanyreportedadecreaseinstock−basedcompensationto351 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 10,956inthesameperiodof2023[28]AccountsReceivable−Thecompanyreportedadecreaseinaccountsreceivableto10,956 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]