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MarketWise Reports Net Income of $22.7 Million and Net Revenue of $97.2 Million for Third Quarter 2024
MKTWMarketWise(MKTW) GlobeNewswire News Room·2024-11-07 14:08

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 106.2millionto106.2 million to 97.2 million [2][4][5] - Despite the revenue decline, the company achieved a net income of 22.7millioninQ32024,upfrom22.7 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 19million,suggestingpotentialrecoveryafterseveralquartersofdecline[3][4]FinancialPerformanceTotalnetrevenuefortheninemonthsendedSeptember30,2024,was19 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 183.7million,reflectingasignificantdecreaseof36.4183.7 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,downfrom417, 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 94.1million,adecreasefrom94.1 million, a decrease from 155.2 million at the end of 2023 [7][25] - The company reported net cash used in operating activities of 28.1millionfortheninemonthsendedSeptember30,2024,comparedtonetcashprovidedof28.1 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]