MARKETWISE, INC.MKTW
MARKETWISE, INC. Revenue Disclosure
Revenue Recognition
Disaggregation of revenues
The following table depicts the disaggregation of revenue according to customer type and is consistent with how we evaluate our financial performance. We believe this depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Subscriptions | Advertising | Revenue Share (Related Party) | Revenue Share (Third-party) | Total | |||||||||||||||||||||||||
| Timing of transfer: | |||||||||||||||||||||||||||||
| Transferred over time | $ | 404,504 | $ | — | $ | — | $ | — | $ | 404,504 | |||||||||||||||||||
| Transferred at a point in time | — | 766 | 3,344 | 87 | 4,197 | ||||||||||||||||||||||||
| Total | $ | 404,504 | $ | 766 | $ | 3,344 | $ | 87 | $ | 408,701 | |||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Subscriptions | Advertising | Revenue Share (Related Party) | Revenue Share (Third-party) | Total | |||||||||||||||||||||||||
| Timing of transfer: | |||||||||||||||||||||||||||||
| Transferred over time | $ | 442,333 | $ | — | $ | — | $ | — | $ | 442,333 | |||||||||||||||||||
| Transferred at a point in time | — | 732 | 4,937 | 180 | 5,849 | ||||||||||||||||||||||||
| Total | $ | 442,333 | $ | 732 | $ | 4,937 | $ | 180 | $ | 448,182 | |||||||||||||||||||
| Year Ended December 31, 2022 | |||||||||||||||||||||||||||||
| Subscriptions | Advertising | Revenue Share (Related Party) | Revenue Share (Third-party) | Total | |||||||||||||||||||||||||
| Timing of transfer: | |||||||||||||||||||||||||||||
| Transferred over time | $ | 508,894 | $ | — | $ | — | $ | — | $ | 508,894 | |||||||||||||||||||
| Transferred at a point in time | — | 744 | 2,363 | 402 | 3,509 | ||||||||||||||||||||||||
| Total | $ | 508,894 | $ | 744 | $ | 2,363 | $ | 402 | $ | 512,403 | |||||||||||||||||||
Revenue recognition by subscription type was as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Membership subscriptions | $ | 188,905 | $ | 185,354 | $ | 195,370 | |||||||||||
| Term subscriptions | 215,599 | 256,979 | 313,524 | ||||||||||||||
| Non-subscription revenue | 4,197 | 5,849 | 3,509 | ||||||||||||||
| Total | $ | 408,701 | $ | 448,182 | $ | 512,403 | |||||||||||
Revenue for the membership and term subscription types are determined based on the terms of the subscription agreements. Non-subscription revenue consists of revenue from advertising and other revenue from revenue share arrangements and the sale of print products and events, such as webinars and conferences.
Net revenue by principal geographic areas was as follows:
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| United States | $ | 408,701 | $ | 448,091 | $ | 512,083 | |||||||||||
| International | — | 91 | 320 | ||||||||||||||
| Total | $ | 408,701 | $ | 448,182 | $ | 512,403 | |||||||||||
Revenue by location is determined by the billing entity for the customer.
Contract Balances
The timing of revenue recognition, amounts invoiced to customers, cash collections and refunds affects the recognition of accounts receivable, contract assets and deferred revenue. Our current deferred revenue balance is presented within the deferred revenue and other contract liabilities line item in the consolidated balance sheets and includes an obligation for refunds for contracts where the provision for refund has not lapsed. Accounts receivable, deferred revenue and obligation for refunds are as follows:
| As of December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Contract balances | |||||||||||
| Accounts receivable | $ | 1,876 | $ | 4,528 | |||||||
| Obligations for refunds | 2,647 | 3,157 | |||||||||
| Deferred revenue – current | 215,326 | 284,594 | |||||||||
| Deferred revenue – non-current | 209,013 | 304,342 | |||||||||
We recognized $288,266 and $315,066 of revenue during the years ended December 31, 2024 and 2023, respectively, that was included within the beginning contract liability balance of the respective periods. The Company has collected all amounts included in deferred revenue other than $1,876 and $4,528 as of December 31, 2024 and 2023, respectively, related to the timing of cash settlement with credit card processors.
Assets Recognized from Costs to Obtain a Contract with a Customer
The following table presents the opening and closing balances of our capitalized costs associated with contracts with customers:
| Balance at January 1, 2022 | $ | 203,071 | |||
| Royalties and sales commissions – additions | 35,223 | ||||
| Revenue share and cost per acquisition fees – additions | 57,173 | ||||
| Amortization of capitalized costs | (97,849) | ||||
| Balance at December 31, 2022 | $ | 197,618 | |||
| Royalties and sales commissions – additions | 28,609 | ||||
| Revenue share and cost per acquisition fees – additions | 52,131 | ||||
| Amortization of capitalized costs | (112,069) | ||||
| Impairment of capitalized costs | (1,389) | ||||
| Balance at December 31, 2023 | $ | 164,900 | |||
| Royalties and sales commissions – additions | 13,507 | ||||
| Revenue share and cost per acquisition fees – additions | 20,505 | ||||
| Amortization of capitalized costs | (97,480) | ||||
| Impairment of capitalized costs | (2,097) | ||||
| Balance at December 31, 2024 | $ | 99,335 | |||
We recognized impairment on capitalized costs associated with contracts with customers during the year ended December 31, 2024, related to the disposal of certain Legacy Research brands as part of the Legacy reorganization. We recognized an impairment of capitalized costs associated with contracts with customers during the year ended December 31, 2023 which was related to the sale of Buttonwood Publishing. See Note 5 – Acquisitions and Disposals. We did not recognize any impairment on capitalized costs associated with contracts with customers for the years ended December 31, 2022.
Remaining Performance Obligations
As of December 31, 2024, the Company had $426,986 of remaining performance obligations presented as deferred revenue in the consolidated balance sheets. We expect to recognize approximately 51% of that amount as revenues over the next twelve months, with the remainder recognized thereafter.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.