MarketWise, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total net revenue of $408.7 million, down 8.8% from $448.2 million in 2023. The company experienced a significant drop in its paid subscriber base, which fell to approximately 506,000 from 737,000 in the previous year, marking a decrease of 31.4%. Despite the revenue decline, MarketWise achieved a net income of $93.1 million, an increase from $54.3 million in 2023, attributed to reduced operating expenses and improved cost management.
The company's total billings also decreased sharply, falling to $239.1 million from $382.4 million in 2023, a decline of 37.5%. This drop was primarily driven by the winding down of its Legacy Research Group business, which began in February 2024 due to misconduct issues. The company has since shifted its focus to other brands within its portfolio, including Stansberry Research and TradeSmith, to maintain subscriber engagement and revenue generation.
In terms of operational metrics, MarketWise reported a decrease in average revenue per user (ARPU), which fell to $394 from $503 in 2023, reflecting the challenges in retaining subscribers and upselling higher-value products. The company also noted a significant reduction in marketing spend as it adjusted its strategies to focus on profitability amid declining subscriber engagement. As of December 31, 2024, the company had approximately 15 million total subscribers, with a notable decrease in both free and active free subscribers.
Looking ahead, MarketWise plans to continue its strategic realignment following the Legacy Research wind-down, focusing on enhancing its product offerings and marketing strategies to attract new subscribers. The company has also declared a special dividend for Class A shareholders, reflecting its commitment to returning value to investors despite the operational challenges faced in 2024. The outlook remains cautious as MarketWise navigates the impacts of its recent restructuring and aims to stabilize its subscriber base while exploring growth opportunities in its remaining brands.
About MARKETWISE, INC.
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