Wed, May 15, 9:18 PM (72 days ago)
MarketWise, Inc. reported its Q1 2024 financial results, highlighting a decline in net revenue to $108.99 million from $126.23 million in Q1 2023, attributed primarily to reduced term subscription revenue. Operating expenses decreased to $87.44 million from $95.63 million, driven by lower costs in salaries, credit card fees, and stock-based compensation. Net income for the quarter was $22.71 million, down from $30.61 million in the same period last year. The company experienced a significant drop in paid subscribers, down 12.1% year-over-year to 683,436, due to soft consumer engagement and the wind-down of the Legacy Research Group business. Cash flow from operations turned negative at -$18.51 million, primarily due to changes in operating assets and liabilities. MarketWise's liquidity remains strong with $131.18 million in cash and equivalents. The company continues to focus on its strategic realignment, including the wind-down of Legacy Research, which impacted its financial performance and subscriber base.