Thu, Mar 6, 1:38 PM (52 days ago)
**MarketWise, Inc. (MKTW) 2024 Annual Report Summary** MarketWise, Inc. reported a decline in financial performance for the year ended December 31, 2024. Total net revenue was $408.7 million, down from $448.2 million in 2023, driven by a decrease in Paid Subscribers from 737,140 to 506,000. Net income rose to $93.1 million, compared to $54.3 million in the previous year, aided by reduced operating expenses of $319.7 million, down 19.3% from 2023. Operating expenses included $50.7 million in cost of revenue and $160.7 million in sales and marketing. The company faced challenges, including the wind-down of its Legacy Research business due to misconduct, impacting subscriber engagement and overall revenue. Billings fell sharply to $239.1 million, down 37.5% year-over-year. The company also reported negative cash flow from operations at -$22.2 million. Looking forward, MarketWise aims to stabilize its subscriber base and enhance product offerings while navigating risks such as compliance issues and market competition. The company’s liquidity remains strong with $97.9 million in cash, but it will need to manage tax obligations under its Tax Receivable Agreement carefully. The stock is under scrutiny for compliance with Nasdaq listing standards, prompting discussions of a potential reverse stock split.