Core Viewpoint - MarketWise, Inc. has filed its quarterly report for Q1 2024 and a CEO letter to shareholders, highlighting its position as a leading digital subscription services platform for self-directed investors [1]. Company Overview - MarketWise is a multi-brand subscription services platform focused on providing premium financial research, software, education, and tools for investors [2]. - The company has over 20 years of operational history and serves millions of Free and Paid Subscribers, offering trusted financial research and actionable investment ideas [3]. - MarketWise operates as a 100% digital, direct-to-customer company, delivering its services across various platforms including mobile, desktops, and tablets [3]. Recent Developments - The quarterly report on Form 10-Q for the quarter ended March 31, 2024, was filed with the SEC on May 15, 2024, and is accessible on the company's website [1].

Core Viewpoint - MarketWise, Inc. has filed its quarterly report for Q1 2024 and a CEO letter to shareholders, highlighting its ongoing commitment to providing premium financial research and tools for self-directed investors [1]. Company Overview - MarketWise is a leading multi-brand digital subscription services platform focused on leveling the playing field for self-directed investors by offering premium financial research, software, education, and tools [2]. - The company has over 20 years of operating history and serves millions of Free and Paid Subscribers, providing trusted financial research and actionable investment ideas [3]. - MarketWise operates as a 100% digital, direct-to-customer company, delivering its research across various platforms including mobile, desktops, and tablets [3]. - The company's vision is to become the leading financial solutions platform for self-directed investors, leveraging its proven, agile, and scalable platform [3].

[Shareholder Letter](index=1&type=section&id=Shareholder%20Letter) This letter details MarketWise's Q1 2024 financial performance, addresses operational challenges, outlines new growth strategies, and explains changes in compensation and capital allocation priorities [Q1 2024 Financial Highlights](index=1&type=section&id=Q1%202024%20Financial%20Highlights) MarketWise reported a decline in key financial metrics for the first quarter of 2024 compared to the same period in 2023 Q1 2024 Financial Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Revenue | $109.0 million | $126.2 million | -13.6% | | Net Income | $22.7 million | $30.6 million | -25.8% | | Paid Subscribers | 683,000 | 777,000 | -12.1% | [Addressing Recent Challenges](index=1&type=section&id=Addressing%20Recent%20Challenges) The company is navigating the after-effects of the 'Covid bubble' and a significant operational crisis at Legacy Research Group, leading to major realignment and negative impact on billings [Impact of the 'Covid Bubble'](index=1&type=section&id=Impact%20of%20the%20'Covid%20Bubble') The company experienced a surge of new subscribers during 2020-2021 who did not convert into long-term customers, leading to disappointing results - The company experienced a surge of new subscribers during 2020-2021, described as "stimulus check-sporting speculators chasing momentum," who did not convert into long-term customers at expected rates, leading to disappointing results in 2022 and 2023[4](index=4&type=chunk)[5](index=5&type=chunk) [Operational Restructuring and Legacy Research Realignment](index=1&type=section&id=Operational%20Restructuring%20and%20Legacy%20Research%20Realignment) The company implemented significant cost reductions and headcount cuts, while reorganizing Legacy Research Group due to ethical issues, impacting billings - Upon returning in October 2023, the CEO initiated cost-cutting measures, reducing G&A costs by about **15% YoY** and decreasing headcount by over **20%** (from 672 to 535) between September 2023 and April 2024[6](index=6&type=chunk)[7](index=7&type=chunk) - The company had to wind down and reorganize its Legacy Research Group due to serious ethical departures, including an editor being paid to recommend low-quality stocks[8](index=8&type=chunk) - The realignment of Legacy Research led to a sharp decline in its billings, from **$30 million** in Q4 2023 to **$16 million** in Q1 2024, with further declines expected[9](index=9&type=chunk) - The company repurchased **7.2 million** MarketWise LLC units for **$10.8 million** from two terminated senior managers of Legacy Research, acquiring the equity at a discount to market value[12](index=12&type=chunk) [New Growth Initiatives](index=2&type=section&id=New%20Growth%20Initiatives) MarketWise is focusing on re-launching proven brands like Brownstone Research and Wide Moat Research, emphasizing high-quality content and brand-building marketing to attract long-term subscribers - The company is re-launching Brownstone Research, with founder Jeff Brown returning to the company after leaving in early 2023 due to conflicts with previous management[19](index=19&type=chunk)[20](index=20&type=chunk) - Wide Moat Research, founded by REIT expert Brad Thomas, is being relaunched with an expanded mandate to cover long-term investing across the entire financial landscape[20](index=20&type=chunk) - New and re-born franchises will be characterized by: ultra-high-quality content at premium rates, analysts with bona fide expertise, and marketing designed for brand value and immediate ROI[21](index=21&type=chunk)[24](index=24&type=chunk) - Future marketing will focus more on branding and offering tools for specific investor types, capitalizing on the "democratization" of finance trend[28](index=28&type=chunk)[29](index=29&type=chunk) [Our New Compensation Structure](index=4&type=section&id=Our%20New%20Compensation%20Structure) The company has fundamentally restructured its compensation to eliminate incentives for inefficient marketing, aligning employee incentives with long-term shareholder value and profitable growth - The previous compensation structure, based on fixed-rate royalty payments on net Billings, incentivized maximizing marketing spending, even on unprofitable campaigns like selling **$49** subscriptions that did not lead to long-term customers[30](index=30&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk) - Senior operators will now be paid a salary with bonuses based on a formula rewarding a combination of revenue growth and operating margin, shifting the focus from 'growth at any cost'[36](index=36&type=chunk) - Across the company, bonus and incentive pay will be split **50/50** between cash and stock, with a four-year vesting schedule to promote long-term alignment[37](index=37&type=chunk) - All employees will receive an initial stock grant, with future grants contingent on the company increasing its per-share intrinsic value[39](index=39&type=chunk) [Capital Allocation](index=5&type=section&id=Capital%20Allocation) The company prioritizes share repurchases, plans to continue regular quarterly dividends, and may consider a special dividend, while earning interest on cash - The company has four main options for its cash: invest in its brands, repurchase shares, invest in other industries, or pay dividends[43](index=43&type=chunk) - Share buybacks are considered the best use of excess cash, but are not practical currently because the limited public float of A-shares would make a significant buyback 'tantamount to taking the company private'[44](index=44&type=chunk) - The company plans to continue paying its regular quarterly dividend and will evaluate a potential special dividend at the end of the year[46](index=46&type=chunk) [Additional Performance Measures and Intrinsic Value](index=6&type=section&id=Additional%20Performance%20Measures%20and%20Intrinsic%20Value) The CEO advocates using non-GAAP 'Billings' to assess intrinsic value, distinguishing between lower-margin 'New Marketing Billings' and higher-margin 'Renewal Billings' to focus on long-term recurring revenue growth - The CEO uses a model based on 'Billings' (cash received from customers) rather than GAAP 'Revenue' to evaluate the business, due to the lag in revenue recognition for multi-year subscriptions[48](index=48&type=chunk)[51](index=51&type=chunk) Billings Performance (in millions) | Billings Category (in millions) | 2022 | 2023 | TTM 3/31/24 | | :--- | :--- | :--- | :--- | | New "Marketing" Billings | $333.6 | $278.3 | $266.3 | | Net "Renewal" Billings | $120.3 | $96.8 | $89.1 | | **Total Billings** | **$459.5** | **$382.4** | **$362.5** | - In the CEO's valuation model, high-margin 'Renewal Billings' are the most important factor and are assigned a higher multiple than 'Marketing Billings'[52](index=52&type=chunk)[53](index=53&type=chunk) - Increasing Recurring and Membership Billings is identified as critical to increasing the company's overall intrinsic value, a goal now directly supported by the new compensation structure[55](index=55&type=chunk) [Conclusion](index=7&type=section&id=Conclusion) Despite recent difficulties and the effort to wind down Legacy Research, the CEO expresses strong confidence in the company's future, anticipating positive developments - The CEO reiterates confidence in the company's people, products, and processes, and is more certain of future success today than at the start of the year[56](index=56&type=chunk)

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, 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 incorpor ...

BALTIMORE, May 03, 2024 (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 self-directed investors, today announced that its Board of Directors declared a quarterly cash dividend to holders of Class A common stock of $0.01 per share. A comparable distribution of $0.01 per unit has also been approved to holders of MarketWise, LLC units. The ...

MarketWise Inc. To the Shareholders of MarketWise, Inc.: Since I last wrote, an unfortunate series of events has unfolded at a business unit within our company. A former employee of one of our subsidiaries was criminally charged by federal prosecutors last month. According to the charges, from December 2019 through August 2021, Jon Mikula was surreptitiously receiving large payments for recommending low-quality stocks to subscribers of Palm Beach Venture, while claiming falsely that his work was independent ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 organization) 11 ...

The best way to earn our customers' trust is to deserve it. That's why we have long insisted on testing our good intentions with track records that we review and publish. And that's why we routinely cancel publications that can't meet basic performance standards. We won't publish investment research that we don't believe is useful and reliable. Our culture of putting the subscribers first – even if doing so harms our revenues (in the short term) or even when doing so may put us in jeopardy of offending powe ...

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 September 30, 2023 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 organiz ...

• Incremental Paid Subscribers Total Revenue 128,014 103,644 -19% | --- | --- | |-------|-------| | 2Q22 | 2Q23 | | | | | | | | | | | 0% | 1% | | 0% | 1% | | 1% | 2% | | | | Our high-value Membership subscribers continue to add to the recurring revenue stream Appendix Income Tax Expense/(Benefit) 1,040 427 -59% 2Q23 Investor Presentation 2 The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" ...