MarketWise Reports Strong Financial Results and Announces $50 Million Stock Repurchase Program

MarketWise, Inc. (NASDAQ: MKTW), a leading multi-brand digital subscription services platform, reported its financial results for the full year 2024, highlighting a net income of $93.1 million on net revenue of $408.7 million. The company also announced a stock repurchase program of up to $50 million.



Key financial highlights for the full year 2024 include:

* Net income of $93.1 million, up 71.5% year-over-year
* Net revenue of $408.7 million, down 8.8% year-over-year
* Total billings of $239.1 million, down 37.5% year-over-year
* Paid subscribers of 506,000, down 31.3% year-over-year

MarketWise's net income growth of 71.5% in 2024, despite a revenue decline of 8.8%, reflects the company's operational efficiency and cost-cutting measures. The sequential billings growth of 10% from Q3 to Q4 2024, coupled with management's claims of continued momentum into Q1 2025, suggests potential stabilization in the company's financial performance.



The $50 million stock repurchase program authorized by MarketWise's board of directors is expected to have a positive impact on shareholder value. This buyback authorization, which accounts for approximately 21.6% of the company's market capitalization, signals the board's confidence in the company's financial health and long-term prospects. The planned reverse stock split appears primarily aimed at maintaining Nasdaq listing requirements and attracting institutional investors rather than addressing fundamental business concerns.

MarketWise's business fundamentals remain challenging, with subscriber counts down 31.3% and the company's strong balance sheet with $97.9 million in cash providing considerable operational runway to execute its turnaround strategy focused on "growth, efficiency, and new business." The company's capital allocation strategy, which includes a balanced approach to shareholder returns and maintaining flexibility, is expected to drive strong returns for shareholders over time.

In conclusion, MarketWise's strong financial results and the announcement of a $50 million stock repurchase program demonstrate the company's commitment to shareholder returns and its confidence in its long-term prospects. Despite facing challenges in its business fundamentals, MarketWise's operational efficiency and cost-cutting measures, coupled with its strategic focus on growth and new business opportunities, position the company well for future success.