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Dec 30, 2024
Marketwise Q4 2024 Earnings Report
MarketWise reported its fourth quarter and full year 2024 financial results, showing a decrease in revenue but an increase in net income for the quarter.
Key Takeaways
MarketWise reported a net income of $26.4 million for Q4 2024, a significant increase from $1.9 million in Q4 2023, despite a decrease in total net revenue to $97.5 million from $112.2 million in the prior year's quarter. Full year 2024 net income was $93.1 million on $408.7 million in revenue.
Net income for Q4 2024 significantly increased to $26.4 million from $1.9 million in Q4 2023.
Total net revenue for Q4 2024 decreased to $97.5 million from $112.2 million in Q4 2023.
Paid Subscribers decreased to 506 thousand as of December 31, 2024, from 737 thousand as of December 31, 2023.
The Board authorized a new stock repurchase program of up to $50 million.
Marketwise
Marketwise
Forward Guidance
MarketWise expects continued growth in Billings into Q1 2025, driven by compelling content, customer acquisition, and strong pricing. The company plans a reverse stock split to improve share price and market perception, and will continue to evaluate opportunistic share repurchases.
Positive Outlook
- Billings increased sequentially in Q4 2024 and continued to grow over 10% in the first two months of Q1 2025.
- The company is returning to profitability, indicating progress on strategic pillars of growth and efficiency.
- A reverse stock split is planned to make the per share price more attractive to institutional investors and meet Nasdaq requirements.
- The Board approved a quarterly dividend, demonstrating commitment to returning capital to shareholders.
- A share repurchase program of up to $50 million was authorized, indicating confidence in future financial results.
Challenges Ahead
- Future tax distributions and special dividends will be dependent on a variety of factors.
- The company's credit facility matured in October 2024, with no immediate plans for a new one, though it may be considered in the future.
- Adjusted CFFO and Adjusted CFFO Margin are expected to fluctuate due to investments in growth strategy and non-recurring items.
- The ability to effectuate the reverse stock split is subject to risks and uncertainties.
- The company's ability to attract new subscribers and retain existing ones is a continuous challenge.