How did MKTW's Q4 2024 earnings surprise investors?

**MarketWise Inc. (MKTW) delivered mixed results in Q4 2024**, leading to varied reactions from investors:

1. **Financial Performance**: MKTW reported actual EPS of $0.06 and actual revenue of $97.5 million for Q4 2024. This performance was somewhat disappointing compared to analysts' expectations. The company's earnings per share (EPS) missed estimates by $0.08, coming in at $0.04, which led to concerns over profitability.

2. **Revenue Decline**: The total net revenue for the year 2024 was $408.7 million, marking a decrease of 8.8% year-over-year. Concurrently, total billings fell by 37.5% for the year. These declines indicated a challenging sales environment for the company.
3. **Subscriber Decline**: The number of paid subscribers dropped from 737,000 to 506,000, reflecting a decline of 31.3%. This reduction in subscribers contributed to the revenue decline, as each subscriber generates less revenue.
4. **Positive Aspects**: Despite the revenue challenges, MKTW showed resilience in net income, achieving $93.1 million for the year, a significant increase of 71.5% compared to the previous year. The company's efforts to optimize business segments and improve operational efficiencies were evident, as shown by the return to positive cash flow in Q4 2024, following three quarters of negative cash flow.
5. **Dividend Announcement**: MKTW announced a special dividend of $0.03 per share, which was a positive move to return capital to shareholders. This move could have been appreciated by income-focused investors, helping to mitigate the impact of the revenue miss.
6. **Stock Buyback Program**: The company also introduced a stock repurchase program of up to $50 million, signaling confidence in its financial health and potential for long-term growth.

In conclusion, while MKTW's Q4 2024 earnings report highlighted revenue shortfalls and missed EPS targets, the company's strategic initiatives to improve profitability, positive cash flow generation, and shareholder return efforts through dividends and buybacks may have provided some solace to investors. The mixed results suggest that investor reactions could vary, with a focus on both the challenges and the potential for future growth.