NASDAQ$MKTW

Marketwise Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$97.5M

Previous: $112M-13.1%
EPS (adj)

$0.08

Previous: $0.05+60.0%
Total Billings

$55.4M

No prior period
Paid Subscribers

506.0K

No prior period
Cash From Operations

$5.99M

No prior period
Capital Expenditures

$107K

Previous: -$239K+144.8%
Net Income

$26.4M

Previous: $139K+18892.8%
Operating Income

$89M

Previous: $6.19M+1337.8%
Gross Profit

$85.7M

Previous: $98.2M-12.8%
R&D Expense

$2.97M

Previous: $2.05M+44.9%

Revenue & EPS history

Marketwise · Revenue · Quarterly

$97.5M

Q4 2024-13.1%vs Q4 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-1.4%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-3.4%

Avg return

30 days after

46%

11 / 24 earnings

Positive

+18.7%

Q2 2024

Best reaction

-30.3%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+7.5%-2.1%
Q4 2025+0.3%+1.8%+29.0%
Q4 2024-10.4%+1.8%+29.0%
Q4 2026-0.5%-4.3%-14.9%
Q3 2025+0.0%+0.1%-4.9%
Q2 2025-3.2%-0.3%-8.6%
Q1 2025+2.7%+7.8%+7.5%
Q3 2024-4.0%-13.7%-13.1%
Q2 2024+18.7%+10.0%-0.9%
Q1 2024+2.5%+0.0%-22.2%
Q4 2023+3.3%+4.9%-10.9%
Q3 2023-1.2%+17.2%+12.3%
Q2 2023-5.4%-10.5%-25.4%
Q1 2023+9.6%+7.8%+45.2%
Q4 2022+8.2%-5.3%+7.6%
Q3 2022-17.5%-7.3%-17.9%
Q2 2022+15.0%+27.7%-15.0%
Q1 2022-30.3%-29.2%-25.1%
Q4 2021-7.4%-11.3%-9.3%
Q3 2021+2.7%+3.4%-15.5%
Q2 2021-18.5%-23.9%-30.0%
Q1 2021+0.1%+0.0%+0.5%
Q4 2020+0.0%+0.3%+0.2%
Q3 2020+1.0%+1.0%+3.9%
Q2 2020
Q1 2020

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