MarketWise, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total net revenue of $83.5 million, down 23.4% from $109.0 million in the same period last year. The decrease was primarily attributed to a reduction in subscription revenue, particularly from the Legacy Research business, which has been winding down. The company recorded a net income of $16.8 million, a decrease from $22.7 million in the prior year, resulting in a net income per Class A common share of $0.43, compared to $0.90 in the first quarter of 2024.
In terms of operational metrics, MarketWise's paid subscriber count fell to 473,000 as of March 31, 2025, a 30.7% decrease from 683,000 a year earlier. This decline was largely due to lower customer acquisition and increased churn rates associated with the cessation of the Legacy Research business. The average revenue per user (ARPU) also decreased by 14.8% to $419, reflecting the challenges in retaining subscribers and the impact of reduced engagement with existing products.
Strategically, MarketWise has been focusing on improving its marketing efficiency and subscriber acquisition strategies. The company reported total billings of $70.5 million for the first quarter, which was an 8.8% decline compared to the same period in 2024. However, this figure represented a 27.3% increase from the previous quarter, indicating some recovery in marketing effectiveness. The company has also initiated a stock repurchase program, authorizing up to $50 million in buybacks, which reflects its commitment to returning value to shareholders.
MarketWise's cash position as of March 31, 2025, stood at $79.2 million, down from $131.2 million a year prior. The company generated $1.7 million in cash from operating activities, a notable improvement from the cash outflow of $18.5 million in the first quarter of 2024. This positive cash flow was driven by net income adjustments and a reduction in operating liabilities. Looking ahead, MarketWise anticipates continued challenges in subscriber retention and acquisition but remains focused on enhancing its product offerings and marketing strategies to stabilize and grow its subscriber base.
About MARKETWISE, INC.
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