MARKETWISE INC
For the period ended Mar 31, 2024. Filed May 15, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 15, 2024
MKTW$21.47-1.2%Stored close · as of Nov 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 1. Financial Statements
| March 31, 2024 | December 31, 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $131,175 | $155,174 |
| Accounts receivable | 3,350 | 4,528 |
| Prepaid expenses | 10,555 | 9,305 |
| Related party receivables | 2,008 | 5,182 |
| Deferred contract acquisition costs | 83,423 | 91,480 |
| Other current assets | 2,046 | 2,172 |
| Total current assets | 232,557 | 267,841 |
| Property and equipment, net | 630 | 690 |
| Operating lease right-of-use assets | 6,827 | 7,331 |
| Intangible assets, net | 8,437 | 6,255 |
| Goodwill | 33,560 | 31,038 |
| Deferred contract acquisition costs, noncurrent | 67,713 | 73,420 |
| Deferred tax assets | 9,367 | 9,693 |
| Other assets | 199 | 287 |
| Total assets | $359,290 | $396,555 |
| Liabilities and stockholders’ deficit | ||
| Current liabilities: | ||
| Trade and other payables | $2,936 | $559 |
| Related party payables, net | 344 | 1,137 |
| Accrued expenses | 22,048 | 55,041 |
| Deferred revenue and other contract liabilities | 280,314 | 287,751 |
| Operating lease liabilities | 1,474 | 1,446 |
| Other current liabilities | 26,787 | 27,959 |
| Total current liabilities | 333,903 | 373,893 |
| Long-term liabilities - related party | 707 | — |
| Deferred revenue and other contract liabilities, noncurrent | 285,231 | 304,342 |
| Related party tax receivable agreement liability, noncurrent | 2,470 | 2,151 |
| Other liabilities, noncurrent | 2,378 | 746 |
| Operating lease liabilities, noncurrent | 3,987 | 4,366 |
| Total liabilities | 628,676 | 685,498 |
| Commitments and Contingencies | — | — |
| Stockholders’ deficit: | ||
| Common stock - Class A, par value of $0.0001 per share, 950,000,000 shares authorized; 38,122,283 and 36,384,981 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 4 | 4 |
| Common stock - Class B, par value of $0.0001 per share, 300,000,000 shares authorized; 287,592,303 and 288,092,303 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 29 | 29 |
| Preferred stock - par value of $0.0001 per share, 100,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | — | — |
Condensed Consolidated Balance Sheets (Unaudited)
| Additional paid-in capital | 115,259 | 115,164 |
|---|---|---|
| Accumulated other comprehensive income | 27 | 65 |
| Accumulated deficit | (124,686) | (126,343) |
| Total stockholders’ deficit attributable to MarketWise, Inc. | (9,367) | (11,081) |
| Noncontrolling interest | (260,019) | (277,862) |
| Total stockholders’ deficit | (269,386) | (288,943) |
| Total liabilities and stockholders’ deficit | $359,290 | $396,555 |
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
| Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net revenue | $108,612 | $125,615 |
| Related party revenue | 379 | 618 |
| Total net revenue | 108,991 | 126,233 |
| Operating expenses: | ||
| Cost of revenue (1) | 13,368 | 15,290 |
| Sales and marketing (1) | 47,297 | 48,727 |
| General and administrative (1) | 23,802 | 28,033 |
| Research and development (1) | 2,149 | 2,463 |
| Depreciation and amortization | 693 | 984 |
| Related party expense | 127 | 128 |
| Total operating expenses | 87,436 | 95,625 |
| Income from operations | 21,555 | 30,608 |
| Other income, net | 234 | 387 |
| Interest income, net | 1,658 | 538 |
| Income before income taxes | 23,447 | 31,533 |
| Income tax expense | 735 | 928 |
| Net income | 22,712 | 30,605 |
| Net income attributable to noncontrolling interests | 21,055 | 29,138 |
| Net income attributable to MarketWise, Inc. | $1,657 | $1,467 |
| Net income per Class A common share – basic | $0.05 | $0.05 |
| Net income per Class A common share – diluted | $0.04 | $0.05 |
| Weighted average shares outstanding – basic | 36,726 | 29,172 |
| Weighted average shares outstanding – diluted | 39,436 | 30,496 |
| (1) Cost of revenue, sales and marketing, general and administrative, and research and development expenses are exclusive of depreciation and amortization shown as a separate line item | ||
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In thousands)
| Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net income | $22,712 | $30,605 |
| Other comprehensive (loss) income: | ||
| Cumulative translation adjustment | (38) | 21 |
| Total comprehensive income | $22,674 | $30,626 |
Condensed Consolidated Statement of Stockholders’ Deficit (Unaudited)
| Common Stock - Class A · Common Stock - Class B · Preferred Stock · Additional paid-in capital · Accumulated deficit · Accumulated Other Comprehensive Income (Loss) · Total Stockholders’ Deficit Attributable to MarketWise, Inc. · Noncontrolling Interest · Total Stockholders’ Deficit | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares · Amount · Shares · Amount · Shares · Amount | ||||||||||||
| Balance at January 1, 2023 | 29,039,655 | $3 | 291,092,303 | $29 | — | $— | $106,852 | $(128,125) | $44 | $(21,197) | $(277,186) | $(298,383) |
| Equity-based compensation | — | — | — | — | — | — | 3,703 | — | — | 3,703 | — | 3,703 |
| Vesting of restricted stock units | 873,835 | — | — | — | — | — | — | — | — | — | — | — |
| Restricted stock units withheld to pay taxes | — | — | — | — | — | — | (630) | — | — | (630) | — | (630) |
| Distributions | — | — | — | — | — | — | — | — | — | — | 20 | 20 |
| Foreign currency translation adjustments | — | — | — | — | — | — | — | — | 21 | 21 | — | 21 |
| Net income (loss) | — | — | — | — | — | — | — | 1,467 | — | 1,467 | 29,138 | 30,605 |
| Balance at March 31, 2023 | 29,913,490 | $3 | 291,092,303 | $29 | — | $— | $109,925 | $(126,658) | $65 | $(16,636) | $(248,028) | $(264,664) |
Condensed Consolidated Statement of Stockholders’ Deficit (Unaudited)
| Common Stock - Class A · Common Stock - Class B · Preferred Stock · Additional paid-in capital · Accumulated deficit · Accumulated Other Comprehensive Income (Loss) · Total Stockholders’ Deficit Attributable to MarketWise, Inc. · Noncontrolling Interest · Total Stockholders’ Deficit | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares · Amount · Shares · Amount · Shares · Amount | ||||||||||||
| Balance at January 1, 2024 | 36,384,981 | $4 | 288,092,303 | $29 | — | $— | $115,164 | $(126,343) | $65 | $(11,081) | $(277,862) | $(288,943) |
| Equity-based compensation | — | — | — | — | — | — | 2,175 | — | — | 2,175 | — | 2,175 |
| Vesting of restricted stock units | 1,796,681 | — | — | — | — | — | — | — | — | — | — | — |
| Restricted stock units withheld to pay taxes | (559,379) | — | — | — | — | — | (1,172) | — | — | (1,172) | — | (1,172) |
| Dividends declared | — | — | — | — | — | — | (493) | — | — | (493) | — | (493) |
| Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | (3,683) | (3,683) |
| Issuance per redemption of Class B shares for Class A shares | 500,000 | — | (500,000) | — | — | — | (471) | — | — | (471) | 471 | — |
| Foreign currency translation adjustments | — | — | — | — | — | — | — | — | (38) | (38) | — | (38) |
| Remeasurement of deferred taxes due to change in noncontrolling interest | — | — | — | — | — | — | 56 | — | — | 56 | — | 56 |
| Net income (loss) | — | — | — | — | — | — | — | 1,657 | — | 1,657 | 21,055 | 22,712 |
| Balance at March 31, 2024 | 38,122,283 | $4 | 287,592,303 | $29 | — | $— | $115,259 | $(124,686) | $27 | $(9,367) | $(260,019) | $(269,386) |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.