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MarketWise Inc Q3 revenue beats estimates on billings growth

By Reuters News


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:


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

  • Nov 3 - Varonis Q3 revenue rises 17%, beats analyst expectations

  • Nov 4 - HubSpot Q3 revenue beats estimates driven by subscription growth

  • 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.)

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