Marketwise, Inc. · NASDAQ:MKTW
Marketwise — Investor Presentation (January 2025)
19 slides from Marketwise's investor presentation, January 2025
Slide 1: MarketWise (MKTW) Investor Presentation January 2025
MarketWise (MKTW) Investor Presentation January 2025
Slide 2: Important information
Important information Cautionary Statement Regarding Forward-Looking Statements: This presentation contains forward-looking statements about MarketWise’s financial position, business strategy, and objectives for future operations. These forward-looking statements are generally identified by the word
Slide 3: About MarketWise
About MarketWise • Founded with a mission to level the playing field for self-directed investors • MarketWise is a leading multi-brand subscription services platform providing premium financial research, software, education, and tools for investors. • We serve a community of millions of free and pai
Slide 4: Our Core Principles
Our Core Principles • MarketWise was founded in 1999 with three core principles: • To deliver great investing ideas to investors • To present these ideas in a manner that can be easily understood • To treat our subscribers the way we would want to be treated if roles were reversed • These core princ
Slide 5: Company Timeline
Company Timeline July 2021, Company Early signs of Stansberry rebrands as recovery in Q4 Research MarketWise and 2024. launches goes public at Strategic Refresh $3 billion for 2025. 2000-2021 valuation 2022-2024 1999 Company grows organically and 2022 Period of Billings decline post the Covid relate
Slide 6: Investment Thesis
Investment Thesis 1. Massive Market Opportunity • Large and growing market • Strong secular tailwinds with overall democratization of investing • 3.8M active platform members1 2. Robust Ecosystem with Diversified Product Set • Installed base of over 500K paid subscribers • 12 market facing brands wi
Slide 7: Key Drivers Of Our Success
Key Drivers Of Our Success POWERFUL CONTENT CUSTOMER FOCUS SCALABLE MODEL DATA / TECHNOLOGY PLATFORM • Compelling content • Emphasis on developing • Industry-leading ROI on • Real-time campaign fosters relationships long-term relationship new customer feedback between readers and with the subscriber
Slide 8: Premium Subscription Content, Software & Tools
Premium Subscription Content, Software & Tools ACTIONABLE IDEAS SOFTWARE & TOOLS 8
Slide 9: Diverse Research Portfolio Across Different Asset Classes
Diverse Research Portfolio Across Different Asset Classes DIVERSE RESEARCH PRODUCTS (% OF BILLINGS - 2024) • 140+ product offerings at 12/31/24 • Provides a portfolio of investing ideas for self- directed investors • Breadth of ideas provides relevant content in most market conditions 9
Slide 10: Provides Diverse, Actionable & Affordable Content
Provides Diverse, Actionable & Affordable Content
Slide 11: Subscriber Composition
Subscriber Composition # OF CUMULATIVE SUBSCRIBERS1 LIFETIME SPEND1 SELECTED EXAMPLES Active Free • Stansberry Digest General market commentary, current 3.3M • Whitney Tilson’s Daily events - Insightful and educational • Hypergrowth Investing Paid • Fry’s Investment Report - $249 Mega Cap equities a
Slide 12: Financial Summary and Capital Structure
Financial Summary and Capital Structure
Slide 13: Financial Summary (3Q24)
Financial Summary (3Q24) REVENUE ($ IN MILLIONS)1 BILLINGS ($ IN MILLIONS)1,2 ADJUSTED CFFO ($ IN MILLIONS)1,3 Margin 27% 13% 17% 13% -12% • Estimated and unaudited Q4 2024 Billings were approximately $55m, more than a 10% sequential increase • Significant difference between Revenue and Billings due
Slide 14: Recovery in Billings Expected to Result in Higher Adj CFFO
Recovery in Billings Expected to Result in Higher Adj CFFO1 3 • While Billings have been in decline, cash generation has remained resilient • Negative cash flow in 2024 largely due to reorganization and restructuring efforts (headcount declined by 145 or 25% year over year) • Some seasonality in Adj
Slide 15: Capital Structure
Capital Structure As of December 31, 2024 TYPE SHARES OWNERSHIP Class A Shareholders 39,562,797 12.4% Class B Unitholders 279,890,147 87.6% Total 319,452,9441 100.0% Share Price as of Dec. 31, 2024 $0.57 Market Cap as of Dec. 31, 2024 $182.1M 15 1.Excludes 24M unvested RSUs that vest over time
Slide 16: Appendix
MarketWise Appendix
Slide 17: Our Customer-Facing Brands
Our Customer-Facing Brands 17
Slide 18: Income Statement (3Q24)
Income Statement (3Q24) 1 ($ in 000's) 3Q23 3Q24 % Variance 3Q23 3Q24 Total Revenue 106,150 97,186 -8% Total Revenue 100% 100% Operating Expenses Operating Expenses Cost of Revenue 13,812 12,902 -7% Cost of Revenue 13% 13% Sales and Marketing 52,466 36,644 -30% Sales and Marketing 49% 38% General an
Slide 19: Balance Sheet (as of September 30, 2024)
Balance Sheet (as of September 30, 2024) 1 1 ($ in 000's) Dec 31, 2023 Sep 30, 2024 ($ in 000's) Dec 31, 2023 Sep 30, 2024 Assets Liabilities and Stockholders' Deficit Current Assets Current Liabilities Cash and Cash Equivalents 155,174 94,111 Trade and Other Payables 559 2,326 Accounts Receivable 4