MarketWise ( NASDAQ: MKTW ) saw its average revenue per user slide 8.8% in Q2 from the previous quarter and the number of paid subscribers slip 1.2% as individual investors shied away from volatile markets, it said Monday.
"The macroeconomic environment has been challenging for many companies, including companies like ours involved with the financial markets," said CEO Mark Arnold. "As the markets declined sharply, many individual investors moved to the sidelines, and this continues to impact our business."
As slumping markets in Q2 led to lower subscriber numbers and engagement, the financial research, software and education platform focused on cost-cutting. The company expects to reduce overhead by an annualized amount of ~$37M, or 15% of 2022 budgeted overhead. It also expects to spend $37M less in direct marketing in H2 2022 compared with the first half, representing an ~20% reduction to the annualized direct marketing spend originally expected.
MarketWise ( MKTW ) shares rose 0.8% in Monday midmorning trading.
Total subscribers were 15.9M increased from 15.4M in Q1 and 13.0M in Q2 2021; it had 898K paid subscribers in Q2, down from 909K in Q1 and 994K in the year-ago quarter.
Q2 total net revenue of $128.0M, trailing the $131.0M consensus, declined from $136.8M in the prior quarter and from $142.1M in the year-ago quarter.
Average revenue per user sank to $580 vs. $636 in the previous quarter and $823 a year ago.
Total billings of $117.5M dropped from $136.0M in Q1 and from $185.1M in Q2 2021.
Q2 adjusted cash flow from operations increased to $26.8M from $1.1M in Q1 and declined from $59.4M in Q2 2021.
Conference call at 11:00 AM ET.
Earlier, MarketWise ( MKTW ) reports Q2 results
For further details see:
MarketWise turns to cost-cutting after ARPU, total billings decline in Q2