Earnings call transcript Q4 2022

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Operator

Thank you for standing by, and welcome to the MarketWise Fourth Quarter 2022 Earnings Call.

During today’s presentation all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions with instructions to follow at that time.

As a reminder, this conference call is being recorded.

I would now like to hand the conference over to Jonathan Shanfield, Vice-President of Investor Relations at MarketWise. sir. ahead go Please

Jonathan Shanfield

the and Interim today's Thank Financial MarketWise's conference quarter Harris, Officer, Vice me and operator Mason, Senior have joining Chief our Financial our full all & Officer us Planning fourth Executive on With results. on call Park financial of today, good you Analysis we you Amber our morning. Stephen for year call Chief Thank President to Lee discuss and

disclaim factors SEC forward-looking demand, be update may of statements, statements concerning plans, course date, call, views business obligation press contained other attract and today's subscribers. forward-looking assumptions to vary subsequent of limited and company's cause may make and should strategies ability any forward-looking on but in from statements the upon section to, current our These release, including, and from are website. and earnings During these forward-looking statements results regarding future relied we not of financial growth and guidance as based our are the our our today's the management's not retain materially performance, any and market we prospects, information statements. Information posted results to supplemental that statements. Investors uncertainties Actual company's and differ filings, and to could risks, any on

release non-GAAP filings. These GAAP but our financial non-GAAP non-GAAP from and press certain measures. can to measures considered financial in include a as found not to, measures will substitute in Reconciliations SEC in be today addition discussion for, earnings Our measures. be isolation should or

the call over turn Now to Amber. I'll

Amber Mason

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fell market continued in as dynamics Turning XXXX that fourth engagement in uncertainty early increased. to Investor quarter. volatility the results, began economic and our the

$XXX.X the revenue million down operations adjusted compared XX% on we million $XXX.X XXXX. prior generated year-over-year a Billings to and $XX.X a from full cash of million for declined X.X% basis, GAAP measured all from year. decline flow in $XXX.X was the our year to For as of million

a second realized half will aimed cash costs One manage years have of of million the portion lowering million of marketing, in response representing improvement approximately important direct overhead overhead took rate in XXXX margin to realized a results, these annualized immediately strengths from recognized basis, summer. is not at We last to on flow our market In that of total so made various reductions and over of significant them overall was through savings what of million last and $XX the it are our has our improving our time. year. XXXX, environments. in which ability target reflected It's and quickly are and achieved costs, GAAP XX second in our $XX implemented saving, savings. business resilient half we we over of $XX margin marketing the we series action, measures a Because cash run note but and our of the since to the be over

the the CFFO, first of in CFFO and of billing XXXX, $XXX we in half in resulting though margin $XXX XX.X%. of million, recognize even declined collected of in million billings adjusted CFFO for year, million margin we the adjusted an in CFFO half $XX.X adjusted Specifically $XX second adjusted million XX%. In to an recognize

and initiative, margin This quarter direct Additionally, cost improved a margins our cutting fourth our on XX.X%. year. continue margin adjusted this XXXX our result CFFO for is to focus of improvement to we

many market, covering energy. of Beyond the topics notable the accomplishments our strategies XXXX, a of trading relevant options, XX had financial investing as results, healthcare, range and including in the to new such team publications introduction

strive or the on reflect In effective were did current not we that focused more efficient, be that addition, retired were as as we publications XX not to themes market.

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our a brought brand successfully Similarly, marketed billing. we much chicken and Altimetry audience. tremendous brand and year, to larger XXXX, in last to platform growth the our experienced we In success

years. Altimetry terms most proved of over our result, their campaign last a two As billings in marketing for the most recent to successful be

another to evolved empower began analysis a quantitative buy Additionally, investor. brands sell robust tools brand portfolio screener and we of using and place and alerts, financial trading our powerful successful TradeSmith, has options very further tools. systems of business. a and stock of rating This all technology simple Investor self-directed suite track as suite portfolio based tools, which aligned leading features tool, our with stops management trailing risk of TradeSmith a a volatility technology and into our way the system

user that recent products subscriber proven along these combinations with brands to for experience has content leads to average higher with per subscribers and better Our our retention. our technology revenue ARPU, offering

tools offer As look efforts. and research, our we quantitative through with investment our well go to both products existing as as in our forward, we M&A more brands

during a private tender common improve exchange, completed Class meaningful to shares our capital offer outstanding structure We for of and warrants of quarter we outstanding this Through a In A warrants. XXXX. the million stock. took exchange total a we retired XX step also third public to all

million float increased This issued with which XX%. liquidity common total than and shares we base. added public approximately X%, to shares, our X our result, our increase As our approximately in Class being shares to less a by trading diluted A shareholder public

our a Winans their eliminating those capital coming talented existing organization, organization, our our including of contribution. look simplifies overall ways we are and to we market and The to for the and activities. join financing to technologies, well to for structure, our making the recruit to software to that from corporate corporate the can combine know forward us looking finance we attractive We warrants to it success complement transaction and media future we further individuals enhance editorial and easier From add execute look teams, to perspective, believe teams key continue analysts to to MarketWise. remains and businesses as as M&A continue

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Stephen Park

and Amber Thanks morning good everyone.

bare Amber throughout of the As U.S. of in recession the our equity market quarter. as first they and business experience quarters. described, in uncertainty third impact The half increasing higher impacted persist of on continues the fourth to factors markets continue during economy to upcoming and rates the the inflation, the interest that remained year territory

Not retail investment hesitate to and investors market self-directed surprisingly, remains see purchasing elevated. we engage research, to continue new as volatility in

with landing down our the of and X% quarter a direct our second In during quarter $XX approximately expenses XXXX, marketing the fourth As XXXX initiative levels. savings in a lower we quarter cost result, page visits million engagement third from we began reduced levels XXXX. experienced were quarter consistent certain to that

this in impact resulting subscriber this to quarters, new page landing quarter. Similar decline acquisitions billings both prior an visits and had on

conversion However, our declined rate contrast prior our to exactly approximately basis the five rate points. were the page our by landing In XXXX visits is and quarter. full same approximately overall conversion as year in down overall XXXX, XX%

Our also subscribers have the result journey through past. than macroeconomic longer buying us subscriber move as current additional of with slowed conditions, to the taking for as these their pace a is of our it subscriptions customer somewhat in

this by satisfaction, cumulative our value for long-term. to another subscriptions, this customer high subscribers in purchase is products, that why in to the subscribers. is remain subscribers which all-time additional We in with paced spend believe our an active these even in and continued slower of environment, leading However, value value high all indication they ultra high find us

in the was was compared Turning the million the in The that decline -- the $XX.X or decrease subscription this to $XX.X existing $XX.X revenue. We purchases. prospective Billings a revenue were of GAAP reduced quarter, decrease to compared by continued XX%. their further driven the and The the throughout large ended revenue of decrease year, existing $XXX.X million million our to remainder we and to term XXXX year of to for $XXX.X is new a new of $XXX.X in million decrease million year of for of part first the quarter financials. believe fourth million XXXX, for our ago due subscribers. a delaying believe engagement subscribers half quarter which the million. contributed in emerged challenges $XXX.X

decrease XXXX. driven our quarter decreased landing through quarter as or from primarily This XXXX. subscriptions, billings billings subscriptions, page XX% Sequentially, other by $X.X billings in membership decrease quarter X%, the was third quarter. from compares prior conversion in X%, other rate X% XX% subscriptions, we billings billings of to maintained million our term quarter $XXX.X from million, from fourth XX% same membership and in visits, Approximately This XXXX. a XX% from group fourth X% came subscriptions from term our fourth in of from and the

reduction have the the on executed as been working Amber two we touched XXXX, parts. year targeting earlier, As million expenses initiative of disclosed to expense throughout in second of in on $XX the reduce middle and actively and we savings. half a in cost total This came

equal or we an First, amount approximately budgeted $XX of by anticipated reducing million, XX% annualized overhead overhead. to

result, fourth overhead $XX annualized as first quarter in we million compared a quarter, As of achieved run and to rate approximately through the the reduction XXXX.

$X the in savings Additionally, total budgeted our for we realized spend million related XXXX savings identified to annualized in $XX bringing year, million. overhead eliminated to overhead

of the approximately expenditures half an targeted XXXX. the in compared half we to first second marketing to the Second, $XX direct of year, as reduction million

of which half by our reduced approximately $X or exceeded million. marketing $X.X month, million, $XX by million XXXX, second expense we approximately direct per During the targets our total

instead everyone focus I cost decide the to marketing our significant that cost variable acquisition cut improve is spend per may factors. going and the If not on marketing the should degree on marketing, use in dictates, forward market of acquisition. most our remind and unit dependent same direct costs subscriber related and market to we is

successfully our both total, the direct the of In we savings targets through achieved end and year, marketing. overhead for cost identified

these where improve additional we have protect we savings cash work to we While and appropriate margins look and to pleased efficiencies continue to savings, are flow. realized both as for

service $X.X $X.X card decline this year ago was to a point reduction and primarily of in quarter, driven a million benefits million was revenue outsource million compared $XX.X credit decrease the decline This in in $XX.X for a customer decrease by and million million a related quarter, of million. of expense. Cost $X.X $X.X salaries fees, fees contracting

our reduction million $XX.X by marketing million. decrease quarter this by was primarily decrease $XX.X a decrease and This quarter, contract costs million amortization compared were offset ago related the costs. $XX.X of increase deferred initiative, year in direct Sales of a million to million the cost $XX.X marketing $X.X expense to partially in a driven acquisition in

with $X.X compensation $X.X Administrative million travel reduction fees. the by million driven ago executive quarter, a an reduction million in million year costs and to in primarily contract offset a by $XX.X partially employee was expense, donations million compensation, compared was $X.X in a $X.X a of expense. professional and a increase in quarter, to in in This and this as increase General million million. decrease $X.X increase $XX.X $X.X million increase related severance The

in the $X.X to compensation XXXX. to quarter compared Net $X.X income quarter in as XXXX in compared XXXX. million XXXX fourth $X.X expenses We million million of million $X.X quarter was in quarter fourth fourth stock-based fourth recognized

both $XX.X Adjusted in overhead compared as year payments in XXXX. the million CFFO fourth and quarter, was the of ago reduction in reduction increase first Adjusted the XX.X% annual bonus to was expense, quarter the to by of into to quarter margin compared moving XXXX, direct with marketing a In offset in XXXX due CFFO quarter last primarily XXXX fourth $X X.X% buildings. year. million

cost margin CFFO year XX.X% cutting for first for half of direct of improved initiative. half the second as from the XXXX result However, adjusted to a XX% for the our

continue We margin in improvement XXXX. on to focus

XXXX by engagement. at this Our a XXX,XXX paid end subscriber a driven base in of decrease to quarter, overall the decline declined consumer fourth of from quarter XX.X% XXX,XXX

in average billings, XX% trailing decrease by a increased with a from XX.X% decrease increase. fourth X by quarter, to average quarter in trailing in quarter declined for of ARPU XXXX However, course a million $XXX subscriber paid combined XXXX quarter $XXX this base our driven XX% subscribers. we four free the during

since they economy persisted interest decline quarter has purchase data to future Reserve's the from the is upgrade Federal XXXX, due leaving rate as the volatile billings the subscribers and impact potential believe assess We latest hesitant to economic that subscribers and decisions. first primarily or and recent the

Before our with cost reduction that I back to I pleased initiatives improved emphasize we want are margins. turn Amber, of to the results and it

We continue find we the businesses. overhead both of and reduction, meaningful core create our feel to while improvements efficiencies, where in can look strength for further maintaining to opportunities we operating

Amber Mason

control. most conclude, within To Steve. MarketWise performance opportunity Thanks, ahead for and our see operations our is improving I and great largely importantly,

recruiting subscribers. will We efficiency, to our quality on delivering our marketing focus research increasing high and talented extremely individuals

in clean have efficient people ensure and to right to are that operating business right spend the the a We make and marketing manner in sure effective. committed our is maximally we the to role,

our treat understand stable operating past the will subscribers so XXXX, all focusing to and which our in long-term great has experience on attain XX Finally, company are and with over the to immense principles way to ideas start level, These We this the the see business. success operational treated have that ideas been a CFO informed that recurring and continue a hire achieved we revenue. way a core a years and our looking execute, and we're three me our philosophy on the retail delivered at COO of is and deep to future. investor, we Since we reversed. public base potential deliver I leadership that easy where to principles to in it this also investing Central's much foundation opportunity. do with be to we in And these if growth our the of we ensure relationship value lifelong partner excellence, corporate a subscribers is is by written partners. to be would were consider roles want provides

remain business operating to have in of employees. actions as with and continue shareholders, throughout the line we The our taken simple philosophy the for subscribers that benefit manage year long-term we the

I your will now for question. it over operator turn to the

Operator

Helfstein Thank with Instructions] Please with first proceed Jason Our from you. comes question line your [Operator the of question. Oppenheimer.

Jason Helfstein

CEO new title. on congratulations and Thanks as the role

in you with questions; consistent of it's help comments not data, a your trading bridge activity. around Schwab the kind just which can is quarter rebound trading the first, three first the showing So outlook

quarter think it XX the plus minus five was quarter. in it's think fourth and like I in I trending first the

your do disconnect So, a think a that? how good if there's And should there, then, think investors indicative indicator why that's that? you if business of not about

over as efficiency about guys of expect second percent quarters? to this a the The think then something the we last is should in more few sequentially of next you flat marketing Or question, question, was for this XXXX? Do bookings? question. quarter And ratio improve CFO

severance, you professional expense, you. of for Can million give a a $X.X which of both us to was the not fees? you onetime million but numbers $X.X there fees, expense, expect one those said professional something and improve. Thank obviously is You full year severance time

Lee Harris

first Hey, hey, I'll Harris. two the Lee pick Jason. those. It's of

far the DAT’s As as question.

you you maybe trending So DAT’s saw we nine, see at plus think I plus said XX.

page in visits what line the that. late, modestly they that tracking eyes the that of with down. are is issues you call And us a Our surfaced just Right? But wouldn't weeks. I quarter. have yet. rates they of the have last deteriorated through trend since those the just obviously, our are are in couple the banking on industry keeping three compound have a we're DAT’s in hurting first what's And months it the Really, very those improved landing of subdued, first rates with much bit quarter. conversion our fourth

terms know, level critical achieving see. rates of billings want you are us as conversion of the that we to So, in

news between of is, on a in we're visits is the So little there's what terms that conversion. why landing a perhaps good that versus of the some disconnect page bit seeing

are, In terms you correct. of the you're marketing efficiency,

are flat, fourth third fairly the quarter quarter. rates from Our to the

XQ between talked first our the pace on XQ we've about, were into length, fairly continues spend and cut at those right cash quarter. back marketing we've that significantly and and a basis numbers flat As

compared to the to continue we pick kind Right? improve in looking we're a that we and not going trends obviously we're the continue our So spend to to and some get have billing on are the spend today. sales terms of So on billings, we that, and in money, at not we of will GAAP, to going if you're we overall need keep what economy, really to eyes to spend, The at is start spend we're payback. going up. favor until the conversion to where that marketing rate we marketing the our good seeing will not P&L

Stephen Park

on your million to to of worth expect $X.X to responsibility severance, regards is CEO. opportunity With of correct our don't With the of a million you’re forward. But as contractual charge. typically move we professional to Obviously, those a the recur. that we regards not question former on that that that onetime the that portion $X.X fees Again, on our something And was comment to basis. that's that an something we have and control we future manage

Lee Harris

again… Yes, I think

Jason Helfstein

Lee, let asking XXXX. the not full asking for I'm future me for clarify, I'm year

just other about any with Was first come as three there kind other any quarters their there people in of up severance number? was So we think the a want severance, models? if to

Lee Harris

initiated cost itself. I through think and when in the our some plan, Jason, did the when the was look quarter, third reduction program was we our we prior, which one cost severance, delineate it's reduction if that to time -- related you Yes, did we

So I know I it's wrong say our I want number. want don't say prior it's, the remember to I can't in release. But to

Jason Helfstein

know it’s… so Okay, you

Lee Harris

Yes.

Jason Helfstein

what of you want fees for do And XXXX? all were the to give professional

Stephen Park

right I as our order of costs. there's to for lot on along came whether a to that or something and on of with provided fees But were haven't kind It's she that don't her looking away something can of of to diligently that's in that's, past. It's with because the know she's mentioned to public Amber you transaction. and talk speak that something to, kind layered house in now I focusing in we Amber. do those at And it's we're about in but comments, mean kind size bring way,

Amber Mason

it's a ripe opportunity. Yes,

Stephen Park

later. as a provide get get -- to -- as and form kind that into more of some have putting I to think to strategic we we to going review, Amber's we more a that may if And we

Amber Mason

Yes.

Operator

from line with question. comes Please Our next question of proceed Devin Securities. with Ryan the JMP your

Michael Falco

And Devin. relationship Hi, the standing I'll the this Falco start to is actually on and between customer on paid in new Amber, reiterate frame for congratulations Michael Wanting morning. role. Good engagement subscribers. just

As and subscribers grow. thinking you declined prepared products any or noted strategy subscribers macro customers. remarks, But and audiences potential convert last broadly both new are has Obviously, in continuing the have to about you on paying of to number free subscribers content into engagement. but free reach weighed paid year, over maybe a how new the volatility the also are greater

Amber Mason

responding there's reduced them. So free lists free from our looking I subscribers, our seeing the rates aren't there, engagement when than all think normal. subscribers same we're who as way our folks active And on at from our we're are at conversions lower

testing list day increased different out rates the board. free of figure their market, out to our affiliates. messages all find need just that of we're readers, And along, as the among as we'll we're doing kinds what our think every what the So been doing inspire them wallet. is that from and we've And I higher see what of we take our we to conversion ideas well do find pulse pulse when engagement the across all

Stephen Park

lagged -- things we say, that control comfortable to we investing. visits us, I’d to second landing conducive control has themes Mike our look outlined, a Lee, there's macroeconomic writing. that on. I page do. to starting the our market the part think this, can also listen, getting But seeing we be two are our trading make and which going better. the It's control to been of And We that. What retail content, for follow people in on as factors, fall purchase, we're can I this is hate seeing hasn't but second stats we that it's final little back We're bit. what our step of around can't

bit. the over market hasn't that really, a some But been think, last kind happened that's see starting weeks little to to we're help, what's that's three given mentioned see markets, starting this, financial the really dependent traction. we're I so And of Lee in a we're some, again

two to sentiment the And together can ability to in, get balance things little the in will, those other of out then control trying a in if ease on control that and the favourability help we've provide our got market So to side. best of we perform bit to to to opportunity. we're you of us investors, get

Michael Falco

sense. wanted the you for What in opportunities makes as acquisition about you be to Obviously, guess near double M&A possible pipeline it like? that appetite are fall. overall market term? seeing? growth attractive. for small And strategic click just And the what did how we remains look notice kinds on the the well. thinking then a of in opportunities Sure I does that And should inorganic transactions

Amber Mason

transaction. I our that that we've pipeline. could have So opportunities be that toward year and looking we do get transactions at accretive to specifics shareholders. last maturing are at reward we're been a possibly capital can't And our for that interested, and And dividends. deploy in also looking into other since looking But buybacks to will strategies bringing ways that on like we're mean

Michael Falco

back in I'll Right, queue. hop Thanks. the

Operator

Kramm proceed the comes question from of line next with your UBS. Please with Alex Our question.

Alex Kramm

everyone. Yes. Hey, morning, good

left the give can I bait. like fairly wondering the I on just business. Obviously, you the quarter coming if of numbers to in comments helpful, one Again, the the maybe a of flow in billings, some first in should more, back or with Just the feel ranges tracking quarter, day left, little guess, we're But how you be generation thank or cash transparency bit of for one there's interest day quarter. you. made the

give helpful. us you So will any help be can

Lee Harris

anyone if I'll Alex. this start Yes, and to off jump wants see in

day listen, left right. the quarter. It's So you're in one

same at can our people but not from rates. that, think they're the you seen I converting get comments, if think we've you refer coming I

Okay.

to is what So level to we're XXX%. seen we've that at be same probably of think the going not given

continue you in I decline been, that. conversion like markets think the rush some It's We've seeing like impact business. not to mentioned moment profitability. been of or and able saw. market And other. that moment, to do we're we're rush our in continue just everybody I I getting subscribers it's one active that and banking the to been seen, Fed feel there's just divergent a that continue into the in specific, from we're hit efficiency looking whether going we've to not the flows We like be volatile general it's Without we call this confident themes from or to we're cash think, of front paid with the of, and So as transfers or sentiment we to it's And from some on on reacting. buildings world, the themes, get -- a be obviously ago, cost active way obviously so a maintain etcetera. been we've news too

could I think, a, I a you give tone? think So that

Stephen Park

flow can just we're in to so limited, us And reductions we to ways cash look what the while generate earlier, to, profitable. to and, expense keep add just, just said helps and continue to I we our reinforce speak. storm, stay to It helps continuing to continue which that for us marketing we spend on further weather

Lee Harris

may it's be some, to starting Yes, at the, want honestly, team, feel and so. of the but ahead there don't the I ourselves. a quarter, get of that end to sentiment, way some We're to capitulations the, hoping there's at hit we as

Alex Kramm

I to more. right. little Figured I, at need least ask bit maybe All thinking Understood. a then

For can controlling the, for control. you the much what very hear of message the full year

know don't minimum I particular, think what? no to, the no I matter that your all have you, shakes the minimum you don't on a where matter get something can what. deliver there think but fluid obviously steps, line, you full again, or cash So you hopefully it's flow in is a so flow margin margin necessary you're year how taking a where and you guidance, is certain as mind can depending but you know, you you I the again, guess about the provide environment, on out, there, environment think in know cash I certain

just just, that perspective. from how think So about the wondering full year you

Amber Mason

can you to over results with to So improve can but that think I working that I can we year's are pleased last absolutely to do year. we we commit number, a weren't everything and don't tell last we

this And flow is in even cash worst the positive. times, of business

cash of year So the at working have the to I too. we'll expect that that be end

Lee Harris

part buying decrease it for been long the, Alex, business, that They, still are a that revenue, they in recurring of so And significant rapidity year, have buy. and seen And time recurring. of talked we've their we're and is with before, And a our or us Yes. in seeing we've members people subscriptions. though this some right? of even amount buy the velocity there's the about

year course look at if more you investor and on think And deck, minimum you it every there's on. So our like about a memberships almost get level. our that's shows subscriptions chart that we new in that then kind of is of what

a of I there. level to a business want Amber comfortable portion I commit which but don't is as, be still a don't, is improved to just we margins certain in And said, we've revenue, to margin. we say would key as number there's recurring obviously, the of as to that going feel a, our

be. the this really it's don't cash Again, it flow still adjusted cash we is the margin. margin, And where flow should think

So getting we're there.

then course, we revenue well. to to focus the, expense takes. We today. and side, than always is better control side There's on it even focused that continue puts the, on we're know We're of as that. We to of control, where trying trying The it. and make on

Alex Kramm

the, I guess. you that when to maybe maybe chart on one could I the just XXXX different churn all referring highlighted, just kind still same I the come I to one when cohort, compare optically, cohorts. working mean just of just topic, looked one it's That you were when looks just, that the against at you the I I cohorts last I, huge obviously think Then more, because were XXXX, mean, more and be Again of of out like. normal. churn. that

do look that new through need actually at gained, to again? the is you So you churn last now? feel start you years paid can when work you those customers worry of have that biggest growing customers, before stabilized Or two has you terms incremental you that like still is, maybe that of in

Lee Harris

through largest we those already cohorts. think Hey, processed churn have from the we, that Alex we

cohorts of other of the terms cohort our in those we churn and left list. them. is studied what them before fact, still we, since on And In percentage are every now behaving them, exactly like

from a there say always our those We'll two because we surges churn's certain And coming speaking, I churn campaigns some cohorts, to be could when one have generally have churn right? So our an they a you year some renew, outsized have to that stable. don't seasonality been year But or are, term term. expect pretty in churn.

we've right the, We churn But been average range. largest the our this since one, one historical in saw quarter the really first of cohort. year in heavy was year, of which anniversary the then, the

Amber Mason

Yes. And that chart the Alex, that's I most in deck. think important the investor

in talked bit see of that layer deposits, cohort little sort the a recurring time, business. revenues, is that that and of base really that new in, in can is, this over we of You comments, the that every a of sediment core mountain we bring about strength which

Lee Harris

Yes.

a we've there's about this, the two to and of believe two to that churn's we have couple ads and now know this. the talked and churn, should lagged for new You the it's parts ads as kind that questions. parts right? The be. subscribers, and, new behaving Hey, it quarters It's

in we that think line. so much is And churn the pretty

typical right now we're But kind a, appropriately, were have cohorts in, subscribed weren't on people we're think in there who state thinking our I steady We, exited came churn I a those that that guess. that and found the that think I customer giant on of we side.

Alex Kramm

back into Excellent. I’ll you. Thank queue. jump

Lee Harris

Alex. Thanks

Operator

Needham with line of questions. Company. Kyle with question from comes next & your the Our Please proceed Peterson

Sam Salvas

the guys. taking actually hey Kyle This Thanks Sam today. is on for Salvas questions. Hey, for

had couple ones. a Just quick

mentioned were on content. last and you some year rolling of when out working the guys You newer

Can this, expectations? relevant we're recent performed how about and more of it's received you how relative content your your environment talk has been by market in Given today. consumers maybe this kind to

Amber Mason

speak talked that we've in results, that, really with that Altimetry, we're in little are and of about bit see messages. our our place. good to a excited to business technology to They're I'd have offerings. folks and Check-in investor [Ph] to comments of and really like So I combination those think the seen I comes churns. to TradeSmith what Those lower stickier tend our particularly products responding

think as successful. far those last us rolling out they So products as I year, were

doing we that the they're products they You found quality our every the thinking quite we've can and to see publishers they're haven't spend for the better how from market. the message using that that day that consume it's producing, something whether can readers the out, our want, what we the research rolled engagement that of want about but position

Sam Salvas

guys question. prior for there appetite still you pretty are the and are just the role like is searching should open the CFO something that burner to looking helpful. having actively sounds guys an of Thanks. be given a M&A you would we filled, That's expect pulling Great. trigger CFO, on It And until then. the that then one quick on currently But prior guys you kind permanent back to be healthy. put or deal to a still on is M&A

Amber Mason

with have doing. is team Ferri, M&A Development the is we're his our Chief work hand. no problem [Ph] Corporate lawyer, on without we the who's an with No, Marco and Officer FP&A a our experienced comfortable CFO pulling trigger valuation and work that

Sam Salvas

Thanks. it. right, great. Got All

Operator

of from questions. question question Kramm. the your up Alex follow with next The Please line is proceed a

Alex Kramm

I squeeze again. in to Hello Hey. just Yes. wanted here.

how Can give of first bonus just You quarter fourth the sense us big mentioned and decision? to led from the to a what that was that you you moved quarter. the that

Lee Harris

the company, decision think kind whom formed. public results most was I act of, most like every year of bonuses of end a, there other aligned public, after are

fully of kind moving. ended that's full the number. know up don't So where we we provide if bonus the, I

Is what and would was a I year think indication you cash years, the at if an say. looked correct? that get quarter-over-quarter to some level third of the prior that high you flow, and I is very in changes from fourth

Alex Kramm

Yes.

Lee Harris

high very due going the public from That private tremendous company was growth situation, in public. a to to year the pump

year. So I be high wouldn't to as expect this it

I'd it think wanted if start. way, that's kind So that of about to where you Alex,

Alex Kramm

cash something on certainly that years. to first But flow prior the weighs in Right. relatively quarter,

Lee Harris

Absolutely. Yes. Absolutely.

there said XXXX looked from quarter. if you quarter, X% for So was noise was last operations flow our well. fourth XX% it the cash comparison, in quarter fourth And is adjusted some at as then margin, in this there we a just

Absolutely. number? impact cash that the for to leaving flow expect bonuses you'd expect You'd

Alex Kramm

mean, maybe value yes, that Because value. and to and value upselling I touched talked you But that's marketing of are, high Because the in guess, upselling. just, continued already, we high the between that's subscribers on paying. on last this I to quarter. every types again paid go different, selling one at the and, that, ultrahigh just on to costs, at then looking you really this really the I customer just do already looking be that's, one maybe should year, those here? success up high you're think over like already, into last paid on basically and the define but. but base ultra up and And you on, has get What on, right? better same I So down think, lower, you've come Right? really can the value subscribers

that what's So what, a maybe been and bigger missing forward? going is there what's, focus

Stephen Park

Yes, Lee then want I'll start and add may to in.

the most the of So longest membership dollar are so and the course, the folks those subscriptions ultrahigh us the have been value, that with they're that with higher spend value. folks money,

think I X,XXX. it's we say over

or you this folks website. to to a people, visits, in about, talked aren't and they're improve. situation the landing is in third long We interested to composition, start we've dynamics should and, again, long-term. think those us we've of product past. cause to this the it hesitation the see cycle see how that paid that And some if page value. high idea impacting of and second I They've just that the one trends consuming talked been know to will subscription committed I about we that with come our subscribers, they is It's following parties purchased say, to people still is moving And enough really, So, of this from is, that subscription, more subscription are which our the those the number.

first conversions well. as paid the But it's the conversion is just subscription, the secondary to a not in subscription

if change showing, we're will. the is, the those quarters think we're I seeing that So you those of least. if a showing what of last couple two rate if will And we're at parties, slowing, between of subsets, that's in you two

Lee Harris

Yes.

Just to to color more add that. a little

the, subscribers our break you if at, look a into have of you a, segment We into If certain membership subscribers. right? pieces,

had, than the been. as we've amount people We have it's ever that more than money right ever is subscribers spend high as membership we've, now of those and

cases loyal it's is keep, which next get there, you're Jon a the to for spending. it's, range new do subscription, be bucks which how keep going generally subscribers talking It those you a to really, but many echo subscription, the a the year be in what said, from wide subscribers So about to there first is $X,XXX, hundred there, right? could

super this out in wallet the like going people take of about kind not and are, So time longer. pulling excited are it's charging to where $XXXX, naturally,

believe once think it we're just past. going will right that in I economy, and, has momentum we sales to we the get bit positive So of firm as to little pattern with our a work and always the get back that

Alex Kramm

All it color. Thanks. me. right. That's from the appreciate I

Lee Harris

Thanks.

Amber Mason

you. Thank

Operator

questions for further no are queue. call closing the management the There to to remarks. I'd back in like hand

Amber Mason

for It next to look was be of all to pleasure with forward a everyone great being time. you Have I you, here. day. here and a Thank

Operator

Thank today's does this gentlemen, conclude and for Ladies participation. teleconference. your you

You day. at time and lines a this disconnect wonderful may your have

MarketWise (MKTW) 30 Mar 232022 Q4 Earnings call transcript