Slide 1: First Quarter 2023 Earnings Supplemental Presentation
First Quarter 2023 Earnings Supplemental Presentation
Slide 2: Important Information: Cautionary Statement Regarding Forward-Looking Statements
2 IMPORTANT INFORMATION Cautionary Statement Regarding Forward-Looking Statements This presentation (this “Presentation”) contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the financial position, business strategy, and the plans and
Slide 3: Important Information: Non-GAAP Financial Measures
3 IMPORTANT INFORMATION Cautionary Statement Regarding Forward-Looking Statements Non-GAAP Financial Measures This Presentation also includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to, Adjusted CFFO, Ad
Slide 4: First Quarter 2023 Highlights
MARKETWISE – FIRST QUARTER 2023 HIGHLIGHTS 4 • Market volatility and macroeconomic uncertainty continues to impact subscriber engagement and conversion metrics • Landing page visits were up approximately 3%, in 1Q23 compared to 4Q22 • Recent turmoil in the banking market contributed to increased vol
Slide 5: First Quarter 2023 Financial Overview
MARKETWISE - FIRST QUARTER 2023 FINANCIAL OVERVIEW 5 4.0M (11%) YoY ARPU 777K (14%) YoY PAID SUBSCRIBERS $30.6M +33% YoY NET INCOME CFFO $3.9M +262% YoY $493 (22%) YoY $126.2M (8%) YoY TOTAL NET REVENUEACTIVE FREE SUBSCRIBERS $97.2M (29%) YoY BILLINGS ADJUSTED CFFO $3.9M +262% YoY
Slide 6: Revenue & Billings
MARKETWISE – REVENUE & BILLINGS 6 • 1Q23 Revenues of $126.2 million, down $1.5 million, or 1.2%, from 4Q22 • 1Q23 Billings of $97.2 million, down $3.7 million, or 3.7%, as compared to prior quarter - Membership Billings made up 37% of total in 1Q23 as compared to 35% in 4Q22 • Continued impact of ma
Slide 7: Subscribers
MARKETWISE – SUBSCRIBERS 7 • Active Free Subscribers measures currently targeted members of our free subscriber community – those who have been actively engaged in our communications and offerings over the past 90 days • Active Free Subscribers declined 262K, or 6.1%, from 4Q22 reflecting continued
Slide 8: Adjusted CFFO & Margin
MARKETWISE – ADJUSTED CFFO & MARGIN 8 • Adjusted CFFO of $3.9 million for 1Q23 as compared to $18.4 million for 4Q22 • Current quarter includes annual corporate bonus payments • Prior to 2023, annual bonuses were paid in the fourth quarter of the current year 1% 23% 12% 18% 4% 24% 27% 13%22%
Slide 9: Average Revenue Per User
MARKETWISE – AVERAGE REVENUE PER USER 9 • ARPU declined to $493 in 1Q, down 5.0% from the prior quarter • Over the past year, Billings have declined faster than the decline in Paid Subscribers – further reducing ARPU • Subscribers have slowed the pace of additional purchases likely related to the im
Slide 10: MarketWise – Revenue Retention
10 • Existing cohorts represent long-term subscribers providing a stable recurring revenue base • Our goal is to establish multi-year relationships with our subscribers • High-Value Membership subscribers continue to add to the recurring revenue stream MARKETWISE – REVENUE RETENTION
Slide 11: Net Renewal and Upgrade Revenue
MARKETWISE – NET RENEWAL AND UPGRADE REVENUE 11 • Renewal Billings and Upgrades produce reliable and steady billings from current customer base • Approximately $40 million on average in net renewal and upgrade billings over past 5 quarters
Slide 12: Membership Subscribers
MARKETWISE – MEMBERSHIP SUBSCRIBERS 12 • Membership subscribers make up the majority of our high- and ultra-high value subscribers • On average membership subscribers purchase approximately 5 additional subscriptions – including an additional membership subscription • Membership subscribers typicall
Slide 13: Active Cumulative Spend
MARKETWISE – ACTIVE CUMULATIVE SPEND 13 • Active Cumulative spend at 1Q23 equal to $3,644 per paid subscriber, an increase of 9% from 4Q22 and 27% since 1Q22 • Majority of subscriber churn tends to be from introductory, low-cost subscriptions with a total value of less than $100
Slide 14: MarketWise – Market Observations 1Q23
14 MARKETWISE – MARKET OBSERVATIONS 1Q23 • Markets continued to be impacted by the ongoing economic and market volatility • Engagement, as measured by landing page visits, was up 3% sequentially between 4Q22 and 1Q23 but is still down 20% since 2Q22 • Schwab DAT’s during 1Q23 increased 9%. The spike
Slide 15: Appendix
MarketWise Appendix
Slide 16: Non-GAAP Reconciliation – 1Q23
NON-GAAP RECONCILIATION – 1Q23 161.In 3Q21, represents a discretionary, one-time, lifetime-award non-employee bonus payment of $10M to the Company’s founder, who is a Class B stockholder. In 3Q22, represents costs associated with our warrant tender offer ($2.1M) and severance costs related to our co
Slide 17: GAAP Income Statements – 1Q23
GAAP INCOME STATEMENTS – 1Q23 17 1.Stock-based compensation expense is related to our Incentive Award Plan and our Employee Stock Purchase Plan (ESPP) 1Q22 1Q23 Total Revenue 100% 100% Operating Expenses Cost of Revenue 13% 12% Sales and Marketing 50% 39% General and Administrative 22% 22% Research
Slide 18: Glossary and Definitions
GLOSSARY AND DEFINITIONS 18 • Active Cumulative Spend - (cumulative lifetime net cash collections)/(year end active subscribers) • Adjusted CFFO - net cash provided by operating activities plus profits distributions to Class B unitholders included in stock-based compensation expense plus or minus an