MarketWise(US:MKTW)2024-11-07 14:10Financial 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]