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

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BALTIMORE, Feb. 28, 2025 (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 reported financial results for fourth quarter 2024.⁽¹⁾

Fourth Quarter 2024 Highlights⁽¹⁾⁽²⁾

• Paid Subscribers were 506 thousand as of December 31, 2024 compared with 737 thousand as of December 31, 2023
• Total Net Revenue was $97.5 million in 4Q 2024 compared with $112.2 million in 4Q 2023
• Total Billings was $55.4 million in 4Q 2024 compared with $93.6 million in 4Q 2023
• Net Income was $26.4 million in 4Q 2024 compared with $1.9 million in 4Q 2023
• Cash from Operating Activities of $6.0 million in 4Q 2024 compared with $17.5 million in 4Q 2023
• Cash and Cash Equivalents were $97.9 million as of December 31, 2024

^{(1) The fourth quarter 2024 and full year 2024 results reported herein are unaudited.}

^{(2) See "Key Business Metrics and Non-GAAP Financial Measures” below. For a reconciliation of Adjusted CFFO and Adjusted CFFO margin, see "Non-GAAP Measures” below.}

Dr. David "Doc” Eifrig, Interim Chief Executive Officer, commented, "I am pleased with the results for the fourth quarter where we generated Billings of over $55 million, or a 10% sequential increase compared to the third quarter. This top line growth, along with a return to profitability in the quarter, evidences that we are making progress on our strategic pillars of growth, efficiency, and new business. The encouraging trends we saw in the fourth quarter of 2024 have continued into the first quarter of 2025. Through the first two months of the first quarter, our Billings are over 10% higher than the comparable period of the fourth quarter. We attribute this continued top line growth to compelling content offerings, successful customer acquisition efforts, and strong overall price points. As we look ahead into 2025, I continue to be excited about our growth opportunities and I believe we have the team and strategic plan in place to drive higher returns for our shareholders.”

Eifrig continued, "In the coming weeks we expect the Company will complete a reverse stock split bringing our per share price into a range that is more commensurate with our current market capitalization. Further, we believe the higher price per share will be more attractive to certain institutional investors, will enable us to meet the Nasdaq exchange requirements, and will increase the overall market perception of our business. When coupled with our double-digit top line growth and improving margins, we believe this decision positions us well to execute our strategic plan.”

"Lastly, our Board approved another $0.01 quarterly dividend demonstrating our commitment to return excess capital to shareholders, while providing a reasonable yield on our stock. Also, as we have communicated previously, we will continue to evaluate opportunistic share repurchases as part of our broader capital allocation strategy. To this end, the board authorized a share repurchase program of up to $50 million. We believe improved financial results combined with a wise capital allocation strategy will result in strong returns for our shareholders over time.”

Full Year 2024 Highlights⁽¹⁾

• Total Net Revenue for the year ended December 31, 2024 was $408.7 million, a decrease of 8.8% compared with the same period in prior year.
• Total Billings for the year ended December 31, 2024 was $239.1 million, a decrease of 37.5% compared with the same period in prior year.
• Net Income for the year ended December 31, 2024 was $93.1 million, an increase of 71.5% compared with the same period in prior year.
• Net Cash Used in Operating Activities was $22.2 million for the year ended December 31, 2024, compared with Net Cash Provided by Operating Activities of $62.4 million for the same period in prior year.

Our summary results are as follows:

Balance Sheet and Capital Structure

As of December 31, 2024 the consolidated Cash balance was $97.9 million as compared with $155.2 million at December 31, 2023. The majority of the decline in cash related to activity that occurred in the first half of 2024.

For the year ended December 31, 2024, interest income earned totaled $5.9 million.

In the third quarter of 2024, we began making required tax distribution payments to MarketWise, LLC's members, including MarketWise, Inc. of approximately $6 million. These tax distributions are reflected in our statement of cash flows as cash used in financing activities.

In January 2025, we made a quarterly tax distribution of $15.1 million proportionately to MarketWise, LLC's members, including MarketWise, Inc. This quarterly tax distribution to MarketWise, Inc. exceeded its corporate tax liability and enabled the Company to declare and pay a special dividend of $0.03 per Class A share with the excess tax distribution proceeds. This previously announced special dividend was paid on February 26, 2025.

We will continue to make required quarterly tax distributions in future periods, which we expect to be significant. The amount of future tax distributions, and the related special dividend to Class A shareholders, will be dependent on a variety of factors.

The Company's $150 million credit facility matured on October 29, 2024, with no amounts outstanding. While the Company currently has no immediate needs for external capital, and the business plan is fully funded, the Company may in the future consider entering into a new credit facility to enhance optionality around capital allocation alternatives.

On February 28, 2025, the Board of Directors authorized a stock repurchase program of up to $50 million of Class A common stock. Repurchases of Class A common stock may be made from time to time, either through open market transactions (including pre-set trading plans) or through other transactions in accordance with applicable securities laws. Repurchases under the program have been authorized for the next 12 months but the program may be modified, suspended, or terminated at any time.

MarketWise Inc.'s Class A common stock trades on the Nasdaq Global Market under the symbol "MKTW." As of December 31, 2024, the Company had 39,562,797 shares of Class A common stock and 279,890,147 shares of Class B common stock issued and outstanding. Net Income attributable to non-controlling interest on the Income Statement is primarily associated with these B shares and is a result of our corporate structure.

About MarketWise

Founded with a mission to level the playing field for self-directed investors, today MarketWise is a leading multi- brand subscription services platform providing premium financial research, software, education, and tools for investors.

With more than 25 years of operating history, MarketWise serves a community of millions of free and paid subscribers. MarketWise's products are a trusted source for high-value financial research, education, actionable investment ideas, and investment software. MarketWise is a 100% digital, direct-to-customer company offering its research across a variety of platforms including mobile, desktops, and tablets. MarketWise has a proven, agile, and scalable platform and our vision is to become the leading financial solutions platform for self-directed investors.

Key Business Metrics and Non-GAAP Financial Measures

In this release we discuss certain key business metrics, which we believe provide useful information about the Company's business and the operational factors underlying the Company's financial performance. We are not aware of any uniform standards for calculating these key metrics, which may hinder comparability with other companies who may calculate similarly titled metrics in a different way.

Billings is defined as amounts invoiced to customers.

Paid Subscribers are defined as the total number of unique subscribers with at least one paid subscription at the end of the period.

Average revenue per user or ARPU is defined as the trailing four quarters of net Billings divided by the average number of quarterly total Paid Subscribers over that period.

In addition to our results determined in accordance with GAAP, we believe that the below non-GAAP financial measures are useful in evaluating operating performance. We use the below non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. This non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related

GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

Adjusted CFFO is defined as cash flow from operations plus or minus any non-recurring items.

Adjusted CFFO Margin is defined as Adjusted CFFO as a percentage of Billings.

We believe that Adjusted CFFO and Adjusted CFFO Margin are useful indicators that provide information to management and investors about our ability to generate cash (without the effects of non-recurring items), and for internal planning and forecasting purposes.

We expect Adjusted CFFO and Adjusted CFFO Margin to fluctuate in future periods as we invest in our business to execute our growth strategy. These activities, along with any non-recurring items as described above, may result in fluctuations in Adjusted CFFO and Adjusted CFFO Margin in future periods.

Non-GAAP Measures

The following table provides a reconciliation of net cash provided by operating activities to Adjusted CFFO, and net cash provided by operating activities margin as a percentage of total net revenue to Adjusted CFFO Margin, in each case, the most directly comparable financial measure calculated in accordance with generally accepted accounting principles in the United States ("GAAP”):