MarketWise Inc Q3 revenue beats estimates on billings growth

MarketWise

Yesterday 13:46

Overview
US digital financial research platform's Q3 revenue rose 27% yr/yr, beating analyst expectations
Company shifted focus to monetization and margin, reducing new subscriber acquisition in Q3

Outlook
MarketWise affirms FY 2026 Billings target of about $330 mln, up 22% from FY 2025
Company maintains FY 2026 CFFO target of about $50 mln
MarketWise keeps FY 2026 dividend target at $1.80 per share for Class A stock

Result Drivers
BILLINGS GROWTH - Co said Q3 billings rose 27% yr/yr due to higher customer acquisition in Q1 and Q2, improved retention, and strong conversion of higher-priced products, per CEO David Eifrig
SHIFT TO MONETIZATION - Co said it scaled back marketing spend in Q3 to focus on monetizing existing subscribers, resulting in fewer new subscribers and lower sequential billings

Company press release: ID:nGNX7mW6GH

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$80.10 mln
$78.47 mln (3 Analysts)
Q3 Net Income
 
$15.10 mln
 
Q3 Billings
 
$80.70 mln
 
Q3 Operating Cash Flow
 
$7.80 mln
 

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the professional information services peer group is "buy."
Wall Street's median 12-month price target for MarketWise Inc is $23.24, about 8.9% above its November 4 closing price of $21.35
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
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Nov 3 - Freshworks Q3 adjusted profit beats estimates on upmarket momentum

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)