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    Charles Larkin

    Research Analyst at Oppenheimer & Co. Inc.

    Charles Larkin's questions to MARKETWISE (MKTW) leadership

    Charles Larkin's questions to MARKETWISE (MKTW) leadership • Q2 2023

    Question

    Charles Larkin of Oppenheimer & Co. Inc. questioned the divergence between MarketWise's improving churn and Schwab's weaker Q2 trading data, and asked if the positive outlook implies potential for sequential revenue growth.

    Answer

    SVP Lee Harris clarified that Schwab's Q1 data was an anomaly due to mini-bank runs and that Schwab's metrics began improving in July, lagging MarketWise slightly. Regarding revenue, CEO Amber Mason and Lee Harris explained that GAAP revenue lags billings due to amortization. While new subscribers are a positive leading indicator for future billings, it will take several quarters of billing growth for GAAP revenue to show a significant increase.

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    Charles Larkin's questions to MARKETWISE (MKTW) leadership • Q2 2023

    Question

    Charles Larkin from Oppenheimer asked about the disconnect between MarketWise's improving subscriber metrics and worsening external indicators like Schwab's daily active trades, and also questioned if sequential revenue growth is expected.

    Answer

    SVP of Financial Planning and Analysis, Lee Harris, clarified that Schwab's Q1 data was an anomaly due to mini-bank runs and that recent trends appear to lag MarketWise's own improvements. CEO Amber Mason and Lee Harris both cautioned that while billings may rise with new subscribers, GAAP revenue growth will lag significantly due to the amortization of subscription revenue over time.

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