MarketWise, Inc. Q1 FY2022 earnings call

• Market Dynamics: Impacted by Russia-Ukraine war, inflation, Fed rate hikes, and bond market havoc, leading to investor hesitance. - Financials: Revenue grew 14% YOY to $136.8M, billings down 47% YOY to $136M, adjusted cash flow from operations $1.1M. - Investment Themes: Focus on deglobalization, oil prices, commodity inflation, inflation protection, income investing, deep value themes. - Strategic Initiatives: Acquisition of Chaikin Analytics, development of pan MarketWise content and tech platform, partnership with SubScale for data science. - Platform Updates: Full rollout of new platform for Stansberry Research, seeing threefold increase in average time on page with interactive features.

For the first quarter of 2022, MarketWise's revenues grew 14% year-over-year to $136.8 million. Billings declined 47% year-over-year to $136 million. Adjusted cash flow from operations was $1.1 million. Revenue contribution: No specific product segments detailed, but overall revenue breakdown includes lifetime subscription revenue ($11.3M increase), term subscription revenue ($7.2M increase), and a $1.4M decrease in nonsubscription revenue. Billings composition: Approximately 37% from lifetime subscriptions, 62% from term, and 1% from other.

• No specific numerical guidance provided. - Continues to focus on executing strategic initiatives like M&A, tech platform development, and content rollout, expecting these to drive future performance. - Highlights ongoing M&A opportunities as potentially adding value.

• Volatile market conditions affecting investor behavior and conversion rates. - Higher subscriber acquisition costs and lower consumer engagement. - Timing differences in working capital accruals impacting cash flow.

Q: Jason Helfstein asks about committing to minimum free cash flow and G&A flexibility.

A: Mark Arnold states they don't give guidance but have flexibility in G&A, focusing on long-term growth.

Q: Alexander Kramm asks about monetizing free subscriber base.

A: Mark Arnold mentions modest ad revenue but not a focus, with free users attracted to unique content.