- MarketWise (MKTW, Financial) reported Q1 2025 net revenue of $83.5 million and net income of $16.8 million.
- Total billings saw a significant rise, increasing by 27% from the prior quarter to $70.5 million.
- The company announced dividends totaling $0.30 per Class A share and initiated a $50 million stock buyback program.
MarketWise Inc. (MKTW), a prominent digital subscription services platform, released its financial results for the first quarter of 2025, showcasing a mixed performance. Despite a year-over-year decline in net revenue to $83.5 million from $109.0 million, and a fall in net income to $16.8 million from $22.7 million, the company demonstrated quarter-over-quarter improvements in several areas.
The total billings for Q1 2025 increased significantly by 27% from the fourth quarter of 2024, reaching $70.5 million. This growth can largely be attributed to strategic adjustments and optimization of the company's operations. Additionally, cash generated from operating activities saw a positive shift, improving by $20.2 million year-over-year to $1.7 million.
However, the company faced challenges with its subscriber base, as paid subscribers reduced from 683,000 in the previous year to 473,000, primarily due to the discontinuation of the Legacy Research business and higher churn among low average revenue per user (ARPU) customers. MarketWise anticipates a further decrease in subscribers in the second quarter of 2025, aligning with the continued churn from Legacy Research.
To enhance shareholder value, MarketWise announced a quarterly and special dividend of $0.30 per Class A share and initiated a $50 million stock repurchase program. The company projects that fiscal year 2025 will see a 20% increase in billings, targeting approximately $250 million, and expects cash from operating activities to reach $30 million, emphasizing a strategic focus on higher-value customers.
In regulatory compliance, MarketWise regained its Nasdaq listing after successfully completing a 1-for-20 reverse stock split, underscoring its commitment to maintaining a strong market presence. With a robust balance sheet featuring $79.2 million in cash and no debt, MarketWise is positioned to pursue strategic growth avenues while rewarding shareholders.
