BALTIMORE, May 27, 2025 (GLOBE NEWSWIRE) -- MarketWise, Inc. (NASDAQ: MKTW) ("MarketWise" or "the Company"), a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for investors, today announced that Dr. David "Doc" Eifrig has been appointed Chief Executive Officer of the Company on a permanent basis, effective immediately. Dr. Eifrig has served as interim Chief Executive Officer since August 2024. Dr. Eifrig has overseen notable ...

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].

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 March 31, 2025 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) (State or other jurisdiction of incorporation or organizatio ...

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]

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].