MarketWise Reports Net Income of $93.1 Million and Net Revenue of $408.7 Million for Full Year 2024, and Announces Stock Repurchase Program of up to $50 Million

Core Insights - MarketWise, Inc. reported a sequential increase in Billings of over $55 million for Q4 2024, reflecting a 10% growth compared to Q3 2024, and a return to profitability [3] - The company anticipates continued growth in Q1 2025, with Billings over 10% higher than the same period in Q4 2024, driven by compelling content and successful customer acquisition [3] - A reverse stock split is expected to enhance the company's market perception and attract institutional investors [3] - The Board approved a quarterly dividend of $0.01 and authorized a share repurchase program of up to $50 million, indicating a commitment to return capital to shareholders [3] Q4 2024 Highlights - Paid Subscribers decreased to 506 thousand from 737 thousand year-over-year [5] - Total Net Revenue for Q4 2024 was $97.5 million, down from $112.2 million in Q4 2023 [5] - Total Billings for Q4 2024 were $55.4 million, a decrease from $93.6 million in Q4 2023 [5] - Net Income for Q4 2024 was $26.4 million, significantly up from $1.9 million in Q4 2023 [5] - Cash from Operating Activities was $6.0 million, down from $17.5 million in Q4 2023 [5] Full Year 2024 Highlights - Total Net Revenue for the year was $408.7 million, an 8.8% decrease from the previous year [6] - Total Billings for the year were $239.1 million, a 37.5% decrease compared to the prior year [6] - Net Income for the year was $93.1 million, a 71.5% increase from the previous year [6] - Net Cash Used in Operating Activities was $22.2 million, compared to a net cash provided of $62.4 million in the prior year [6] Financial Metrics - The company reported an Average Revenue Per User (ARPU) of $394 for Q4 2024, down from $503 in Q4 2023 [7] - Adjusted Cash Flow from Operations (CFFO) for Q4 2024 was $5.985 million, a 72.1% decrease from $21.467 million in Q4 2023 [24] - The Adjusted CFFO Margin for Q4 2024 was 10.8%, down from 22.9% in Q4 2023 [24] Balance Sheet and Capital Structure - As of December 31, 2024, cash and cash equivalents were $97.9 million, down from $155.2 million at the end of 2023 [8] - Total assets decreased to $259.5 million from $396.6 million year-over-year [31] - Total liabilities were $477.4 million, down from $685.5 million at the end of 2023 [31]