MarketWise, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and a strategic reorganization following the winding down of its Legacy Research Group business. The company, which provides independent investment research and subscription-based software, experienced a decrease in net revenue, totaling $97.2 million for Q3 2024, down 8.4% from $106.2 million in Q3 2023. For the nine months ended September 30, 2024, net revenue was $311.2 million, a decrease of 7.4% compared to $336.0 million for the same period in 2023.

The decline in revenue was attributed to a significant drop in term subscription revenue, which fell by $7.7 million, alongside a $1.0 million decrease in membership subscription revenue. Despite the revenue drop, the company reported a notable increase in net income, which reached $22.7 million for Q3 2024, compared to $12.0 million in Q3 2023. For the nine-month period, net income was $66.7 million, up from $52.4 million in the prior year. This increase in profitability was supported by a reduction in total operating expenses, which decreased by 20.8% to $75.3 million in Q3 2024 from $95.1 million in Q3 2023.

MarketWise's strategic developments included the acquisition of Money Map Press, LLC, on January 1, 2024, and the announcement of a reorganization plan on February 8, 2024, which involved winding down the Legacy Research Group due to managerial misconduct. The reorganization resulted in separation costs of approximately $1.3 million for Q3 2024 and $2.3 million for the nine months ended September 30, 2024. The company also reported a goodwill balance of $8.6 million related to Legacy Research as of September 30, 2024.

The company’s cash and cash equivalents decreased to $94.1 million as of September 30, 2024, down from $155.2 million at the end of 2023. Total assets also declined to $278.4 million from $396.6 million at the end of the previous fiscal year. MarketWise's paid subscriber base fell to 592,000, a decrease of 23.5% from 774,000 in the prior year, reflecting challenges in customer retention and engagement.

In terms of stockholder equity, MarketWise reported a total stockholders’ deficit of $19.5 million as of September 30, 2024, compared to a deficit of $13.3 million a year earlier. The company continues to monitor its financial position closely, with management expressing confidence in its ability to meet working capital and capital expenditure requirements for the next 12 months.