MarketWise Inc (MKTW) 2023 Q1 法說會逐字稿

Welcome to the MarketWise first quarter 2023 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to hand the conference over to Jonathan Shanfield, Vice President of Investor Relations at MarketWise. Please go ahead, sir.

歡迎參加 MarketWise 2023 年第一季度財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。我現在想將會議交給 MarketWise 投資者關係副總裁 Jonathan Shanfield。請繼續，先生。

Thank you, and good morning. We appreciate you joining us on today's conference call to discuss MarketWise's first quarter 2023 financial results. With me on the call today, we have Amber Mason, Chief Executive Officer; Stephen Park, our Interim Chief Financial Officer; and Lee Harris, Senior Vice President of Financial Planning and Analysis.

謝謝你，早上好。我們感謝您參加今天的電話會議，討論 MarketWise 2023 年第一季度的財務業績。今天與我一起參加電話會議的有首席執行官 Amber Mason； Stephen Park，我們的臨時首席財務官； Lee Harris，財務規劃與分析高級副總裁。

Before we get started, I want to point out that we've also published a supplemental earnings presentation on the Investors section of our website, www.marketwise.com under the Quarterly Results tab. This document is designed to provide additional information and context to our current earnings release and 10-Q filings. We hope you find it's helpful in understanding not just the current quarter's results, but also the way we look at the business.

在開始之前，我想指出的是，我們還在我們網站 www.marketwise.com 的投資者部分的“季度業績”選項卡下發布了補充收益報告。本文件旨在為我們當前的收益發布和 10-Q 報告提供更多信息和背景。我們希望您發現它不僅有助於了解當前季度的業績，而且有助於了解我們看待業務的方式。

We welcome your feedback as we work to improve our communications and give you the information most relevant to our performance. For those of you participating in our conference call via webcast, we are sharing a few slides to highlight certain information we are discussing during the call. All of the information present in the slides is also available in the contents of this call or in the supplemental earnings presentation I described above.

我們歡迎您提供反饋，我們將努力改善我們的溝通並向您提供與我們的績效最相關的信息。對於那些通過網絡廣播參加我們電話會議的人，我們將分享幾張幻燈片，以突出顯示我們在電話會議期間討論的某些信息。幻燈片中提供的所有信息也可以在本次電話會議的內容或我上面描述的補充收益演示中找到。

During the course of today's call, we may make forward-looking statements, including but not limited to statements regarding our guidance and future financial performance, market demand, growth prospects, business strategies and plans, and our ability to attract and retain subscribers.

在今天的電話會議期間，我們可能會做出前瞻性聲明，包括但不限於有關我們的指導和未來財務業績、市場需求、增長前景、業務戰略和計劃以及我們吸引和留住訂戶的能力的聲明。

These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date, and we disclaim any obligation to update any forward-looking statements.

這些前瞻性陳述基於管理層當前的觀點和假設，不應在任何後續日期被依賴，並且我們不承擔更新任何前瞻性陳述的義務。

Actual results may vary materially from today's statements. Information concerning our risks, uncertainties, and other factors that could cause results to differ from those forward-looking statements are contained in the company's SEC filings, earnings press release, and supplemental information posted on the Investors section of the company's website. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for or in isolation from GAAP measures. Reconciliations to non-GAAP measures can be found in our earnings press release and SEC filings. And now I'll turn the call over to Amber.

實際結果可能與今天的聲明存在重大差異。有關我們的風險、不確定性和其他可能導致結果與前瞻性陳述不同的因素的信息包含在公司向 SEC 提交的文件、收益新聞稿以及公司網站投資者部分發布的補充信息中。我們今天的討論將包括某些非公認會計準則財務指標。這些非公認會計原則財務措施應作為公認會計原則措施的補充，而不是替代或獨立於公認會計原則措施。您可以在我們的收益新聞稿和美國證券交易委員會 (SEC) 文件中找到與非公認會計原則 (non-GAAP) 衡量標準的調節表。現在我將把電話轉給 Amber。

Thanks, Jon, and good morning, everybody. Welcome to our first quarter 2023 earnings call. On this morning's call, I will provide a brief overview of our first quarter results. I'll tell you why I think we're in one of the greatest businesses in the world, and I'll show you some progress on our strategic plan. We've also put together a supplemental deck to this earnings call. There's some cool stuff in there that should give you more of an operator's perspective on the business. Steve will wrap up with a more detailed review of our financial results, and then we'll take your questions.

謝謝喬恩，大家早上好。歡迎參加我們的 2023 年第一季度財報電話會議。在今天早上的電話會議上，我將簡要概述我們第一季度的業績。我將告訴您為什麼我認為我們是世界上最偉大的企業之一，並且我將向您展示我們戰略計劃的一些進展。我們還為本次財報電話會議準備了補充資料。其中有一些很酷的東西，可以讓您更多地從運營商的角度看待業務。最後，史蒂夫將對我們的財務業績進行更詳細的審查，然後我們將回答您的問題。

Let's get started. First touching on our Q1 results, the market has been volatile and economic uncertainty persists as it has over the last 18 months. Through all of this, we have stayed committed to the course we set in 2022, specifically to rein in overhead costs and direct marketing spend. I'm pleased to report that we have maintained our expense discipline.

讓我們開始吧。首先談談我們第一季度的業績，市場一直波動，經濟不確定性持續存在，就像過去 18 個月一樣。通過這一切，我們始終致力於實現 2022 年設定的目標，特別是控制管理費用和直接營銷支出。我很高興地報告，我們一直遵守支出紀律。

In the first quarter of 2023, direct marketing spend was roughly $24 million lower on a cash basis than the first quarter 2022. Additionally, our overhead costs were down $6.3 million on the same basis. When times are tough, we tighten our belts to maintain profitability. Revenues on a GAAP basis were $126.2 million, a decline of 7.7% as compared to the prior year. Billings declined 28.5% year over year to $97.2 million.

2023 年第一季度，直接營銷支出按現金計算比 2022 年第一季度減少約 2400 萬美元。此外，我們的管理費用按現金計算減少了 630 萬美元。當形勢艱難時，我們會勒緊褲腰帶以保持盈利能力。按 GAAP 計算的收入為 1.262 億美元，比上年下降 7.7%。比林斯同比下降 28.5% 至 9,720 萬美元。

However, given our cost discipline over the past year, we delivered $30.6 million in net income from operations for the first quarter, an increase of $13.1 million or 75.7% as compared to the first quarter of 2022. In addition, our adjusted cash flow from operations was $3.9 million, an increase from $1.1 million from first quarter 2022.

然而，考慮到我們過去一年的成本紀律，我們第一季度的運營淨利潤為 3060 萬美元，比 2022 年第一季度增加了 1310 萬美元，即 75.7%。此外，我們調整後的運營現金流為 390 萬美元，比 2022 年第一季度的 110 萬美元增加了。

As we discussed on last quarter's call, we paid our annual employee and management bonuses in the first quarter where we reported higher adjusted cash flow from operations. As compared to the prior year, these bonus payments hit our cash flow results for the period. This will be our normal practice going forward, and we would expect our cash flow and adjusted cash flow from operations margins to be lower in each first quarter as compared to the remainder of the year.

正如我們在上季度電話會議上討論的那樣，我們在第一季度支付了年度員工和管理層獎金，我們報告了更高的調整後運營現金流。與上一年相比，這些獎金支付影響了我們當期的現金流結果。這將是我們未來的正常做法，我們預計第一季度的現金流和調整後的運營利潤現金流將低於今年剩餘時間。

Despite the difficult market environment, we're pleased with our ability to cut spending and achieve these results. So we know we can do better. As I mentioned on our last call, I've been in this business for over 17 years, many of them spent operating one of our largest revenue producing publishers. Given my experience, I know that MarketWise can create enormous value for all our stakeholders, including employees and shareholders.

儘管市場環境困難，但我們對削減支出並取得這些成果的能力感到滿意。所以我們知道我們可以做得更好。正如我在上次電話會議中提到的，我從事這一行業已超過 17 年，其中許多年都在運營我們最大的創收出版商之一。根據我的經驗，我知道 MarketWise 可以為我們所有利益相關者（包括員工和股東）創造巨大價值。

It's hard to see right now with the drop in the market and our results since we've gone public, what an extraordinary business financial publishing is. So I want to show you a little bit of what I've seen and learned during my career here, why I love working in this industry, why I think this business has such extraordinary potential. And before we begin I just want to give a little hat tip to Richard Russell, who wrote the well-known Dow Theory Letters for decades, and to my colleague, Brian Hunt, who helped me show me the ropes years ago.

現在，隨著市場的下跌和我們上市以來的業績，很難看出商業金融出版是多麼非凡。因此，我想向您展示我在職業生涯中所看到和學到的一些東西，為什麼我喜歡在這個行業工作，為什麼我認為這個行業具有如此非凡的潛力。在我們開始之前，我想向理查德·拉塞爾（Richard Russell）致以敬意，他幾十年來撰寫了著名的道氏理論快報，還有我的同事布萊恩·亨特（Brian Hunt），他多年前幫助我了解了其中的奧秘。

So why do I love what we do at MarketWise? First and foremost, financial publishing has an unlimited market because we sell online and not in a brick and mortar store. We reach people all over the country and the world. We are also scalable. We sell our product, data, and research to thousands or tens of thousands of people without increasing our cost of production. We have low overhead and we are capital efficient. We don't need an extremely large staff, just the right talent. And we don't need equipment or physical inventory to generate revenue our largest.

那麼為什麼我喜歡我們在 MarketWise 所做的事情呢？首先，財經出版擁有無限的市場，因為我們在網上銷售，而不是在實體店銷售。我們接觸到全國和世界各地的人們。我們也具有可擴展性。我們向成千上萬的人出售我們的產品、數據和研究成果，而不會增加我們的生產成本。我們的管理費用低，資本效率高。我們不需要大量的員工，只需要合適的人才。我們不需要設備或實物庫存來產生最大的收入。

Our largest investments are in people and marketing, and we can scale those up in boom times and scale them back when they need to. And we have an amazing file of customers. Once we develop a relationship with our subscribers and create a track record of success, we find they're willing to buy multiple products from us. The best potential subscriber is an existing subscriber.

我們最大的投資是在人員和營銷方面，我們可以在繁榮時期擴大投資規模，並在需要時縮小投資規模。我們擁有令人驚嘆的客戶檔案。一旦我們與訂閱者建立了關係並創造了成功的記錄，我們發現他們願意從我們這裡購買多種產品。最好的潛在訂戶是現有訂戶。

And on top of that, we get to help people. We're sharing ideas and giving them tools to control their financial future that wouldn't otherwise be accessible. In other words, financial publishing is an incredible industry. We can do good work, attract top-quality talent, charge premium prices, keep our costs low, and produce high margins. Even when subscriber engagement is down like now, this is still a great cash generating business, and I have great optimism for our future.

最重要的是，我們可以幫助人們。我們正在分享想法，並為他們提供工具來控制他們原本無法獲得的財務未來。換句話說，財經出版是一個令人難以置信的行業。我們可以做好工作，吸引頂尖人才，收取高價，保持低成本，並產生高利潤。即使訂戶參與度像現在這樣下降，這仍然是一項很好的創收業務，我對我們的未來非常樂觀。

On last quarter's call, I outlined five priorities for the coming year. Let's take a look at how we're doing. First, I believe it's most important to serve our subscribers well. Our publishers are working hard to provide great investing ideas for the current market. And more importantly, we're exploring what our experts believe are the big ideas in the next 12 months and beyond.

在上個季度的電話會議上，我概述了來年的五個優先事項。讓我們看看我們做得怎麼樣。首先，我認為為我們的訂閱者提供良好的服務是最重要的。我們的發行商正在努力為當前市場提供出色的投資理念。更重要的是，我們正在探索專家認為未來 12 個月及以後的重大想法。

For example, most recently, our biggest hits in terms of sales and subscribers are coming from trading and software products. As for investing themes, we're seeing increased interest in artificial intelligence and macroeconomic stories, what we like to call doom and gloom. As always, we look to enhance our lineup and bring new ideas to market.

例如，最近，我們在銷售額和訂戶方面最大的成功來自於交易和軟件產品。至於投資主題，我們看到人們對人工智能和宏觀經濟故事越來越感興趣，我們喜歡稱之為厄運和悲觀。一如既往，我們希望增強我們的產品陣容並向市場帶來新的想法。

In the quarter, we introduced 12 new products and retired another eight publications. Because we're always looking for ways to add value to our subscribers, our long-term leaders, the folks who know us well, including our high and ultra-high value subscribers, remain loyal to us. And that's what I want to show you.

本季度，我們推出了 12 種新產品，並淘汰了另外 8 種出版物。因為我們一直在尋找為我們的訂戶增加價值的方法，所以我們的長期領導者、熟悉我們的人，包括我們的高價值和超高價值訂戶，仍然對我們保持忠誠。這就是我想向您展示的。

In our new supplemental deck, we provide a few charts, which reveal more about the long-term nature of our subscribers and the impact of renewals and revenue retention on our cash flow. Let's take a look. On page 12, you'll see we have over 290,000 membership subscribers, what we used to call lifetime readers. And that number continues to grow even as we have navigated a difficult economy in the past 18 months.

在我們新的補充資料中，我們提供了一些圖表，更多地揭示了我們訂戶的長期性質以及續訂和收入保留對我們現金流的影響。讓我們來看看。在第 12 頁，您會看到我們擁有超過 290,000 名會員訂閱者，我們過去稱之為終身讀者。儘管我們在過去 18 個月裡經歷了經濟困難，但這個數字仍在繼續增長。

Also on that page, you'll see that on average, our membership subscribers purchase approximately five additional subscriptions, including an additional membership subscription. And membership subscribers typically spend over $5,000 after their initial membership subscription with us.

此外，在該頁面上，您還會看到，我們的會員訂閱者平均購買大約五個額外訂閱，其中包括額外的會員訂閱。會員訂閱者在我們首次訂閱會員後通常會花費超過 5,000 美元。

Then on page 11, you'll see our renewal revenue. I think this is one of the best measures of the success of our business. Over the past five quarters, we've averaged a total of $40 million in upgrade and renewal billings each quarter. Long term subscribers are the core of our business, and I'm proud of the trust they have in our publications and our company.

然後在第 11 頁上，您將看到我們的續訂收入。我認為這是衡量我們業務成功的最佳衡量標準之一。在過去的五個季度中，我們每個季度的升級和續訂賬單平均總計為 4000 萬美元。長期訂閱者是我們業務的核心，我為他們對我們的出版物和公司的信任感到自豪。

I wanted to point out that along with some other information in the supplemental earnings presentation, we have started highlighting a subset of our free subscriber base, which we call active free subscribers. Active free subscribers are those free subscribers we've engaged during the most recent quarter. This group of free subscribers is most likely to continue to consume content and convert to a paid subscriber in the short term.

我想指出的是，除了補充收益演示中的一些其他信息外，我們還開始強調免費訂閱者群體的一部分，我們稱之為活躍免費訂閱者。活躍的免費訂閱者是我們在最近一個季度吸引的免費訂閱者。這群免費訂閱者最有可能在短期內繼續消費內容並轉化為付費訂閱者。

Active free subscribers decreased by 0.6 million or 11.5% to 4 million this quarter as compared to 4.6 million as of March 31, 2022. The year-over-year decline in active free subscribers as a result of the general decrease in engagement in the retail investing community. I added this metric because this is how I track our success in converting free readers to paid readers. And I want to give you more insight into the way I look at our business.

截至 2022 年 3 月 31 日，活躍免費訂閱者數量為 460 萬，本季度活躍免費訂閱者減少 60 萬（即 11.5%），至 400 萬。活躍免費訂閱者同比下降是由於零售投資界參與度普遍下降。我添加這個指標是因為這是我跟踪我們將免費讀者轉變為付費讀者的成功程度的方法。我想讓您更深入地了解我對我們業務的看法。

Another key component of our strategic plan as you know, is to continue to focus on cost and improve our margins. We did a lot of work on this last year. And while our effort was successful, we're still looking for opportunities to become even more efficient and profitable.

如您所知，我們戰略計劃的另一個關鍵組成部分是繼續關注成本並提高我們的利潤率。去年我們在這方面做了很多工作。儘管我們的努力取得了成功，但我們仍在尋找機會提高效率和利潤。

Last quarter, I mentioned that our professional fees, mostly accounting and legal, had increased during our go public transaction and it was time to take a closer look. Year over year, we have reduced our professional fees approximately 24%, and we are still looking to bring additional work in house for additional savings.

上個季度，我提到我們的專業費用（主要是會計和法律費用）在上市交易期間有所增加，是時候仔細考慮一下了。與去年同期相比，我們的專業費用減少了約 24%，並且我們仍在尋求在內部開展更多工作以節省更多費用。

Talent, retention, and acquisition are critical for this business, and we are focused on retaining the best of the best and bringing in new talent to our lineup. We are well down the road, bringing a permanent Chief Financial Officer in house, someone who can be a partner to me in guiding the organization. Additionally, hiring a Chief Operating Officer to work between our revenue producers and our corporate services will improve our performance and align both sides of our business.

人才、保留和收購對於這項業務至關重要，我們致力於留住最優秀的人才，並為我們的陣容引進新人才。我們已經在路上，聘請了一名常任首席財務官，他可以成為我指導組織的合作夥伴。此外，聘請首席運營官在我們的收入產生者和我們的企業服務之間工作將提高我們的績效並使我們的業務雙方保持一致。

I'm also focused on the culture of our company and the work our teams do together. We have a fantastic group of people here. And when we all roll in the same direction, we get there faster. We also continue to work on ways to improve our share price, and our liquidity, and our stock. We just approved a quarterly dividend of $0.01 per share for our Class A public shareholders and a quarterly distribution of $0.01 per share for our Class B shareholders.

我還關注我們公司的文化和我們團隊一起做的工作。我們這裡有一群很棒的人。當我們都朝同一個方向滾動時，我們就能更快地到達那裡。我們還繼續致力於改善我們的股價、流動性和股票。我們剛剛批准為 A 類公眾股東派發每股 0.01 美元的季度股息，為 B 類股東派發每股 0.01 美元的季度股息。

As of this morning, this dividend represents a 2.4% annual yield, compared to the current S&P 500's yield of 1.7% and the Russell 2000 yield of 1.6%. We're able to establish this dividend because we generate positive annual cash flow even at the bottom of the cycle. And even after the dividend, we have plenty of cash available to take advantage of good future growth opportunities.

截至今天上午，該股息的年收益率為 2.4%，而當前標準普爾 500 指數的收益率為 1.7%，羅素 2000 指數的收益率為 1.6%。我們能夠建立這種股息，因為即使在周期的底部，我們也能產生正的年度現金流。即使在股息之後，我們也有充足的現金來利用未來良好的增長機會。

Over our 20-plus year history, our company has consistently returned capital to its owners. This dividend is another step in our evolution as a public company. As we've discussed before, the overall market for M&A remains attractive. We continue to look for ways to add existing businesses that will complement our operations, including bringing on new editorial teams, software, and technologies.

在我們 20 多年的歷史中，我們公司始終如一地將資本返還給其所有者。此次股息是我們作為上市公司發展的又一步。正如我們之前討論的，併購的整體市場仍然具有吸引力。我們繼續尋找方法來增加現有業務以補充我們的運營，包括引入新的編輯團隊、軟件和技術。

The current market for potential transactions remains active, and we are evaluating opportunities to determine the right fit strategies and valuation. Once again, while we are active in this market, we are also committed to sound financial transactions with acceptable levels of risk and return for our shareholders. Finally, before I turn it over to Steve to give you a rundown on the financials, I want to address a recent shareholder filing asking for engagement with the Board and management. I'm happy to share that we recently came to an agreement that all parties feel good about.

當前潛在交易市場仍然活躍，我們正在評估機會以確定合適的策略和估值。再次強調，在我們活躍於這個市場的同時，我們還致力於為股東提供穩健的金融交易，並為股東帶來可接受的風險和回報水平。最後，在我將其交給史蒂夫向您提供財務概要之前，我想談談最近提交的一份要求與董事會和管理層接觸的股東文件。我很高興告訴大家，我們最近達成了一項各方都感到滿意的協議。

Our proxy statement will include a Board slate that is a combination of our original Board members and some new faces. These folks are known to us and are working for the best interest of the company and our shareholders. With this agreement in place we can return our focus to our mission, delivering great investing ideas to the retail investor.

我們的委託書將包括由我們原來的董事會成員和一些新面孔組成的董事會名單。我們認識這些人，他們正在為公司和股東的最大利益而工作。有了這份協議，我們就可以把注意力集中在我們的使命上，為散戶投資者提供偉大的投資理念。

With that, I will turn the call over to Steve to review the financial results of the quarter.

這樣，我將把電話轉給史蒂夫，以審查本季度的財務業績。

Thanks, Amber, and good morning, everyone. As Amber described, market factors that impacted our business throughout 2022 continued through the first quarter of 2023. Retail investors remain uneasy. They continue to show concerns about the highly volatile economy, the trajectory of inflation, and the potential for a recession this year.

謝謝，安布爾，大家早上好。正如 Amber 所描述的，影響我們整個 2022 年業務的市場因素一直持續到 2023 年第一季度。散戶投資者仍然感到不安。他們繼續對高度波動的經濟、通脹軌跡以及今年經濟衰退的可能性表示擔憂。

Coupled with this uncertainty and volatility, investors were also impacted by recent bank failures, concern for additional failures, and the lingering issues of credit availability and deposit safety. As a result we continued to see retail and self-directed investors hesitate to engage in purchasing new investment research, and this continues to negatively impact our billings and financial results.

除了這種不確定性和波動性之外，投資者還受到近期銀行倒閉、對更多倒閉的擔憂以及揮之不去的信貸可用性和存款安全問題的影響。因此，我們繼續看到散戶和自主投資者猶豫是否購買新的投資研究，這繼續對我們的賬單和財務業績產生負面影響。

Just to remind you, and as Jon mentioned earlier, we published a supplemental earnings presentation this morning along with our press release. This information can be found on our website, www.marketwise.com under the Quarterly Results tab.

只是提醒您，正如喬恩之前提到的，我們今天早上隨新聞稿一起發布了補充收益報告。此信息可以在我們的網站 www.marketwise.com 的“季度結果”選項卡下找到。

In the first quarter of 2023, our landing page visits were approximately 24 million, up 3% from fourth quarter 2022 levels. However, our overall conversion rate was approximately 15 basis points lower this quarter as compared to the prior quarter. This is the first quarter in the past year we have seen a meaningful drop in the overall conversion rate of customers coming to our websites.

2023 年第一季度，我們的著陸頁訪問量約為 2400 萬次，比 2022 年第四季度的水平增長 3%。然而，本季度我們的整體轉化率比上一季度下降了約 15 個基點。這是去年第一季度我們網站的客戶整體轉化率大幅下降。

We believe daily average trading volumes at certain brokerages and our retail investor engagement tend to move similarly. In the first quarter, we saw daily average trading activity increased 9% compared to the prior quarter, which was higher than our 3% increase in landing page visits. We believe the higher trading volumes have coincided with the banking crisis, which resulted in significant retail trading outflows from retail investors liquidating positions in raising cash, given the panic that swept the banking sector in early March.

我們認為，某些經紀公司的日平均交易量和我們的散戶投資者參與度往往會發生類似的變化。第一季度，我們發現日均交易活動較上一季度增長了 9%，高於登陸頁面訪問量 3% 的增幅。我們認為，交易量的增加與銀行業危機同時發生，鑑於 3 月初席捲銀行業的恐慌情緒，銀行業危機導致散戶投資者清算頭寸以籌集現金，導致散戶交易大量外流。

As in the prior quarter, our subscribers were also slow at the pace of buying additional subscriptions given the macroeconomic conditions. So it is taking longer for our customer to move through their subscriber journey with us than in the past.

與上一季度一樣，考慮到宏觀經濟狀況，我們的訂閱者購買額外訂閱的速度也很緩慢。因此，與過去相比，我們的客戶需要更長的時間才能完成我們的訂閱旅程。

However, even in this environment, our high value and ultra-high value subscribers continue to purchase additional subscriptions. This led to an all-time high in active cumulative spend by all subscribers. We believe this is another indication of customer satisfaction and that subscribers find value in our products, which is why they remain with us for the long term.

然而，即使在這種環境下，我們的高價值和超高價值訂閱者仍在繼續購買額外的訂閱。這導致所有訂閱者的活躍累計支出創下歷史新高。我們相信，這是客戶滿意度的另一個指標，也是訂戶在我們的產品中發現價值的另一個跡象，這就是他們長期留在我們身邊的原因。

Turning to the financials, GAAP revenue was $126.2 million this quarter compared to $136.8 million for the first quarter of 2022, a decrease of $10.6 million or 7.7%. The decrease in revenue was driven by a $7.6 million decrease in term subscription revenue and a $3.1 million decrease in membership subscription revenue. Billings were $97.2 million compared to $136 million for the year ago quarter, a decline of $38.8 million.

轉向財務數據，本季度 GAAP 收入為 1.262 億美元，較 2022 年第一季度的 1.368 億美元減少 1,060 萬美元，即 7.7%。收入下降的原因是定期訂閱收入減少了 760 萬美元，會員訂閱收入減少了 310 萬美元。營業額為 9,720 萬美元，與去年同期的 1.36 億美元相比，下降了 3,880 萬美元。

Levels of engagement declined in early '22 and plateaued during the second quarter -- second half of 2022, continuing through the first quarter of 2023. We believe the decrease is due in large part to reduced engagement of prospective and existing subscribers.

參與度在 22 年初下降，並在第二季度（即 2022 年下半年）趨於穩定，並持續到 2023 年第一季度。我們認為，參與度下降在很大程度上是由於潛在和現有訂戶參與度的減少。

Sequentially, our $97.2 million in fourth quarter billings decreased (inaudible) $3.8 million or 3.7% from fourth quarter 2022. This decrease was primarily driven by lower conversion rates in our various marketing campaigns in the quarter. Approximately, 37% of our billings came from membership subscriptions, 62% from term subscriptions, and 1% from other billings in first quarter 2023. This composition of billings remains unchanged from first quarter of 2022.

隨後，我們第四季度的 9720 萬美元賬單比 2022 年第四季度減少了 380 萬美元（聽不清），即 3.7%。這一下降主要是由於本季度我們各種營銷活動的轉化率較低所致。 2023 年第一季度，我們的賬單大約有 37% 來自會員訂閱，62% 來自定期訂閱，1% 來自其他賬單。這一賬單構成與 2022 年第一季度相比保持不變。

As we discussed last quarter, our cost reduction initiative that we began in second quarter 2022 was successful in reducing both run rate overhead expense and direct marketing expense through the end of 2022. As a reminder, we achieved approximately $36 million in annualized run rate overhead savings as compared to first quarter of 2022. In addition, we reduced marketing over the second half of the year by approximately $40 million.

正如我們上季度所討論的，我們於 2022 年第二季度開始的成本削減計劃成功地減少了運行費用管理費用和直接營銷費用，直至 2022 年底。提醒一下，與 2022 年第一季度相比，我們實現了約 3600 萬美元的年化運行費用節省。此外，我們在下半年減少了約 4000 萬美元的營銷費用。

Throughout the first quarter of 2023, we have maintained this expense reductions and continue to look for further efficiencies in our overhead and marketing. Of course, as we have said before, marketing is our most significant variable cost. And our use of direct marketing and the related cost is dependent on market factors. If we see subscriber engagement in the per unit cost of acquisitions improve, we may look to increase our direct marketing spend from current levels and focus on subscriber acquisition.

在 2023 年第一季度，我們保持了這種費用削減，並繼續尋求進一步提高管理費用和營銷效率。當然，正如我們之前所說，營銷是我們最重要的可變成本。我們對直接營銷的使用以及相關成本取決於市場因素。如果我們看到訂戶參與度在單位獲取成本方面有所改善，我們可能會考慮在當前水平上增加直接營銷支出，並專注於訂戶獲取。

So even in the face of declining subscriber billings, as a result of these savings, we recorded GAAP net income from operations of approximately $30.6 million, an increase of approximately $13.1 million or 75.7% over the prior year's quarter. On a GAAP basis, total operating expenses were reduced approximately $23.8 million or 20% as compared to the first quarter 2022.

因此，即使面對訂戶賬單下降的情況，由於這些節省，我們的 GAAP 運營淨利潤仍約為 3060 萬美元，比上年同期增加了約 1310 萬美元，即 75.7%。按 GAAP 計算，總運營費用比 2022 年第一季度減少約 2380 萬美元，即 20%。

Cost of revenue was $15.3 million this quarter compared to $17.6 million for the year-ago quarter, a decline of $2.3 million. This decline was driven primarily by a decrease of $1 million in outsourced customer service fees, a $0.8 million decrease in credit card fees, and a $0.6 million decrease in salaries and related benefits expense.

本季度的收入成本為 1,530 萬美元，與去年同期的 1,760 萬美元相比，下降了 230 萬美元。這一下降主要是由於外包客戶服務費減少了 100 萬美元、信用卡費用減少了 80 萬美元以及工資和相關福利費用減少了 60 萬美元。

Sales and marketing costs were $48.7 million this quarter compared to $68.2 million in the year-ago quarter, a decrease of $19.5 million. This decrease was primarily driven by a $25.1 million decrease in direct marketing expense related to our cost reduction initiative, partially offset by a $4.4 million increase in the amortization of deferred contract acquisition costs and a $1 million increase in salaries and related benefits expense.

本季度銷售和營銷成本為 4870 萬美元，與去年同期的 6820 萬美元相比，減少了 1950 萬美元。這一下降主要是由於與我們的成本削減計劃相關的直接營銷費用減少了 2510 萬美元，部分被遞延合同採購成本攤銷增加 440 萬美元以及工資和相關福利費用增加 100 萬美元所抵消。

General and administrative costs this quarter were $28.0 million as compared to $30.5 million in the year-ago quarter, a decrease of $2.5 million. The decrease was primarily driven by a $1.6 million decrease in compensation, a $0.9 million reduction in state franchise and sales tax expense, a $0.7 million decrease in professional fees, and a $0.5 million decrease in dues and subscriptions. This was partially offset by a $1.6 million increase in incentive compensation and profits interest expense.

本季度的一般和行政費用為 2800 萬美元，與去年同期的 3050 萬美元相比，減少了 250 萬美元。這一下降主要是由於薪酬減少 160 萬美元、州特許經營和銷售稅費用減少 90 萬美元、專業費用減少 70 萬美元以及會費和訂閱費減少 50 萬美元。這被激勵薪酬和利潤利息支出增加 160 萬美元部分抵消。

Adjusted cash flow from operations was $3.9 million in the first quarter of 2023 compared to $1.1 million in the year-ago quarter. With the increase primarily due to a $7.6 million increase in net income and an $8 million change in the fair value of derivative liabilities, offset by a $13.5 million decrease from working capital accounts.

2023 年第一季度調整後的運營現金流為 390 萬美元，而去年同期為 110 萬美元。增加的主要原因是淨利潤增加了 760 萬美元，衍生負債公允價值變化了 800 萬美元，但被營運資金賬戶減少了 1,350 萬美元所抵消。

Adjusted cash flow from operations margin was 4.0% in the first quarter of 2023 as compared to 0.8% last year. As we discussed on our last quarterly earnings call, we made annual bonus payments for the company in the first quarter of the year. While we accrued for this expense on a GAAP basis throughout the year, the timing of the payments impacts our cash flow and adjusted cash flow from operations in the first quarter.

2023 年第一季度運營利潤調整後現金流量為 4.0%，而去年為 0.8%。正如我們在上一季度財報電話會議上討論的那樣，我們在今年第一季度為公司支付了年度獎金。雖然我們全年按照公認會計準則計算這筆費用，但付款時間會影響我們的現金流和第一季度運營調整後的現金流。

We believe that our cash flow margins will trend back towards prior period levels throughout the remainder of the year. Our paid subscriber base declined from 909,000 at the end of first quarter 2022 to 777,000 this quarter, a 14.5% decline, driven by a decrease in overall consumer engagement. As compared to fourth quarter 2022, our paid subscriber base was down 64,000 or 7.6%.

我們相信，我們的現金流利潤率將在今年剩餘時間內恢復到前期水平。由於整體消費者參與度下降，我們的付費用戶數量從 2022 年第一季度末的 909,000 人下降至本季度的 777,000 人，下降了 14.5%。與 2022 年第四季度相比，我們的付費用戶數量減少了 64,000 人，即 7.6%。

As Amber described earlier, we are now providing information on active free subscribers, a subset of a total free subscriber file. During the quarter, active free subscribers decreased by 0.6 million or 11.5% to 4 million as compared to 4.6 million as of March 31, 2022. The year-over-year decline in active free subscribers is a result of decreased engagement with our subscriber community as consumer engagement continues to be sought.

正如 Amber 之前所述，我們現在提供有關活躍免費訂閱者的信息，這是整個免費訂閱者文件的子集。本季度，活躍免費訂閱者數量減少 60 萬，即 11.5%，降至 400 萬，而截至 2022 年 3 月 31 日，活躍免費訂閱者數量為 460 萬。活躍免費訂閱者同比下降是由於我們繼續尋求消費者參與，導致我們的訂閱者社區參與度下降。

Average revenue per user declined to $493 this quarter from $636 in first quarter 2022, driven by a 31% decrease in average trailing fourth-quarter billings, combined with an 11% decrease in average trailing fourth-quarter paid subscribers. We believe the billings decline is primarily due to the volatile economy that persisted since first quarter of 2022. This is less subscribers and potential subscribers hesitant to purchase or upgrade as they assess the latest economic data and the impact of the Federal Reserve's recent and future interest rate decisions.

每位用戶的平均收入從 2022 年第一季度的 636 美元下降至本季度的 493 美元，原因是第四季度的平均賬單下降了 31%，加上第四季度的平均付費用戶下降了 11%。我們認為，比林斯的下降主要是由於自 2022 年第一季度以來持續的經濟波動。這是因為訂戶和潛在訂戶在評估最新經濟數據以及美聯儲近期和未來利率決策的影響時，在購買或升級方面猶豫不決。

As Amber discussed earlier, our initiation of a quarterly cash dividend earlier today is another step to increasing shareholder value. We view the pay per share quarterly dividend as a conservative capital return to our shareholders, allowing them to benefit from our cash flow generation, while still providing the company with more than sufficient cash balances for operation. We are also confident that providing this dividend does not impact our ability to take advantage of any future growth opportunities, including acquisitions that may become available to us.

正如 Amber 之前討論的那樣，我們今天早些時候啟動的季度現金股息是增加股東價值的又一步。我們將每股季度股息視為對股東的保守資本回報，使他們能夠從我們的現金流生成中受益，同時仍然為公司提供足夠的現金餘額用於運營。我們還相信，提供股息不會影響我們利用任何未來增長機會的能力，包括我們可能進行的收購。

Finally, before I turn it back to Amber, I wanted to emphasize that while our results are not where we want them to be, we have made progress in improving our efficiencies and are generally pleased with the financial results, given market conditions.

最後，在我回到 Amber 之前，我想強調，雖然我們的結果沒有達到我們想要的效果，但考慮到市場條件，我們在提高效率方面取得了進展，並且總體上對財務結果感到滿意。

As we continue to wrestle with the impact of declining subscriber counts, along with slower movement through our sales funnel, we have been able to deliver improved income, reduction in our operating expense base, and positive cash flow. We continue to look for further opportunities to create efficiencies, both in operating and overhead reductions, while we feel we can make meaningful improvements while maintaining the strength of our core businesses. And with that, I'll turn it back to Amber.

隨著我們繼續努力應對訂戶數量下降以及銷售渠道移動放緩的影響，我們已經能夠實現收入增加、運營費用基礎減少和正現金流。我們繼續尋找進一步提高運營效率和減少管理費用的機會，同時我們認為我們可以在保持核心業務實力的同時做出有意義的改進。有了這個，我會把它轉回琥珀。

Thanks, Steve. To conclude, I see great opportunity at MarketWise, and I'm excited to make progress every day. Our team is working hard to deliver high-quality service to our subscribers and improve profitability. I'm also extremely pleased that we're in a position to provide a dividend and begin a program where our shareholders can regularly participate in our profitability.

謝謝，史蒂夫。總而言之，我在 MarketWise 看到了巨大的機會，而且我很高興每天都能取得進步。我們的團隊正在努力為我們的訂戶提供高質量的服務並提高盈利能力。我也非常高興我們能夠提供股息並啟動一項計劃，讓我們的股東可以定期參與我們的盈利。

I know we've said this before, but this truly is a great business focused on serving the retail investor in a way, which we know is both unique and valuable. Our principles define our mission, deliver great investing ideas to the retail investor, deliver these ideas written in a way that is easy to understand and execute, and treat our subscribers the way we would want to be treated if the roles were reversed. I will now turn it over to the operator for your questions.

我知道我們之前已經說過這​​一點，但這確實是一項偉大的業務，專注於以某種方式為散戶投資者提供服務，我們知道這種方式既獨特又有價值。我們的原則定義了我們的使命，向散戶投資者提供偉大的投資理念，以易於理解和執行的方式提供這些想法，並以我們希望角色互換的方式對待我們的訂戶。我現在將其轉交給接線員詢問您的問題。

(Operator Instructions) Kyle Peterson, Needham.

（操作員說明）Kyle Peterson，Needham。

We will see if we could start out on churn, at least in the paid subscriber base. Could you guys give us an approximation as to where churn was in the quarter? Just trying to separate out where gross subscriber additions were and how churn impacted the change in paid subs this quarter.

我們將看看是否可以從流失開始，至少在付費用戶群中。你們能給我們一個關於本季度客戶流失情況的近似值嗎？只是試圖區分出總訂閱用戶增加情況以及用戶流失對本季度付費用戶變化的影響。

Hey Kyle, this is Lee Harris. So the churn was generally, we're still in this period of a normal range. We were in the slight in the higher end of the normal range this quarter, but really nothing out of the ordinary. The churn kind of ebbs and flows with the anniversary of certain campaigns from a year prior. And it's actually already looking quite a bit better as we go into Q2.

嘿凱爾，我是李·哈里斯。所以總體來說，流失率仍然處於正常範圍內。本季度我們的業績略高於正常範圍的高端，但實際上並沒有什麼異常。隨著一年前某些活動的周年紀念日的到來，這種流失會起起落落。當我們進入第二季度時，情況實際上已經看起來好多了。

Really what's happened with subscribers is we just don't have a lot of new subscribers coming onto our list right now. And of course, we've cut back our marketing spend, so that also impacts it. And honestly, I think the paid subscriber list is going to continue to be under pressure until we see a change in the macro environment that's going to find subscribers more willing to jump in and purchase new subscriptions. But it's really, in my mind, not a churn issue, it's an acquisition issue.

事實上，訂閱者的情況是，我們現在沒有很多新訂閱者進入我們的列表。當然，我們削減了營銷支出，這也對其產生了影響。老實說，我認為付費訂閱者名單將繼續面臨壓力，直到我們看到宏觀環境發生變化，發現訂閱者更願意加入併購買新訂閱。但在我看來，這實際上不是客戶流失問題，而是收購問題。

We are seeing some green shoots here and there for themes that subscribers are getting excited about. As I mentioned earlier, we're seeing good results in our higher-priced products for software and tools and themes around artificial intelligence and the macroeconomic environment. So we'll be moving those themes into the front end and looking to boost acquisition by talking about what subscribers want to hear about right now.

我們在這里或那裡看到一些令訂閱者感到興奮的主題的萌芽。正如我之前提到的，我們在圍繞人工智能和宏觀經濟環境的軟件和工具以及主題的高價產品中看到了良好的成果。因此，我們將把這些主題轉移到前端，並通過談論訂閱者現在想听到的內容來提高購買量。

Okay, that makes sense and is helpful. I wanted to squeeze in a follow-up here, particularly on G&A, nice to see the sequential improvement on G&A. It sounds like there's still some more wood to chop here. But I guess how should we think about G&A at least while we are in over the next few quarters, while we are in that challenging growth environment, like what's a good run rate for you guys?

好的，這很有道理並且很有幫助。我想在這裡進行後續跟進，特別是在 G&A 方面，很高興看到 G&A 的連續改進。看來這裡還有木頭要砍。但我想，至少在接下來的幾個季度，當我們處於充滿挑戰的增長環境中時，我們應該如何考慮一般行政費用，比如你們的良好運行率是多少？

I think Lee should take that one.

我覺得李應該選那個。

With G&A right now, we've cut expenses in the last year. We still have some professional fees and centralized services that we're looking to get a little leaner on. So I think there's going to be some incremental benefit in lowering of that rate. But right now, I don't think we're going to see a much larger decrease, right, unless we really get into a prolonged period where the revenues aren't going to start improving.

就目前的一般行政費用而言，我們去年削減了開支。我們仍然有一些專業費用和集中服務，我們希望能進一步精簡。因此，我認為降低該利率將會帶來一些增量好處。但現在，我認為我們不會看到更大幅度的下降，對吧，除非我們真的進入收入不會開始改善的很長一段時期。

Yeah, Kyle, it's Jon. If you look at the year-over-year change in the GAAP G&A as a proxy for everything we do with cash, we've done a lot of wood chopping, as you said before. And now we are at the stage where we're looking at some of these back end costs, the professional fees of the corporate overhead that came on, as Amber mentioned earlier during our go public transactions, and we're trying to take that even lower if necessary. We're going to have to bring some folks in and then stocks paying some outside vendor stuff.

是的，凱爾，我是喬恩。如果你把 GAAP G&A 的同比變化作為我們用現金所做的一切的代表，你就會發現，正如你之前所說，我們已經做了很多砍柴的工作。現在，我們正處於這樣的階段：我們正在考慮其中一些後端成本，即出現的公司管理費用的專業費用，正如 Amber 之前在我們的公開交易期間提到的那樣，如果有必要，我們正在努力降低這一成本。我們將不得不引進一些人，然後用庫存來支付一些外部供應商的費用。

So there's going to be a little bit of a put and take in there and we don't know what's going to all fall out. But we know that at the end of the process, we'll be in a better place than we are now. I just don't think we have [a dollar] change to report on the significance of that yet. I do think that we're going to maintain roughly where we are now from an efficiency standpoint and not slip backwards is the goal, and then add to it where we see significant savings, but there's going to be some puts and takes along the way.

因此，那裡將會有一些投入和吸收，但我們不知道會發生什麼。但我們知道，在這個過程結束時，我們將處於比現在更好的境地。我只是認為我們還沒有[一美元]零錢來報告這一點的重要性。我確實認為，從效率的角度來看，我們將大致保持現在的水平，不倒退是我們的目標，然後在我們看到顯著節省的地方添加它，但在此過程中將會有一些投入和支出。

Okay.

好的。

Yeah, Kyle. That's the continued area of focus for me where we want to stay lean on centralized costs.

是的，凱爾。這是我持續關注的領域，我們希望保持集中成本的精簡。

Okay. It's good to hear. Thank you, guys.

好的。很高興聽到。感謝你們。

(Operator Instructions) Jason Helfstein, Oppenheimer.

（操作員說明）Jason Helfstein，奧本海默。

Thanks. So Amber, now that you've had some time to really review the portfolio, I don't want to put words in your mouth, but it sounds like you are pretty confident in the content and no major changes there. You did talk about maybe prioritizing certain content and moving around. But there was really no major changes you wanted to make. That's question one.

謝謝。 Amber，既然你已經有一些時間來真正審查作品集，我不想在你嘴裡說什麼，但聽起來你對內容非常有信心，而且沒有重大變化。你確實談到了可能優先考慮某些內容並四處走動。但你確實沒有想做的重大改變。這是問題一。

And then question two, does it look like ARPU basically has bottomed at this point. And so really, again, to the point, it's really about adding new customers. It's not about existing customers buying less or paring back. Is that a fair way to look at where we are right now? Thank you.

然後問題二，目前看來 ARPU 基本上已經觸底了嗎？所以，再次強調，這實際上是為了增加新客戶。這並不是說現有客戶減少購買或削減開支。這是看待我們現在處境的公平方式嗎？謝謝。

Sure. So our content is constantly being crude and added to by the teams in our individual publishers. So day to day, quarter to quarter, they're looking at what's working and what's not working. So they're moving faster than I would be sort of up in a centralized position. My concern is that what we're doing is producing great results for our subscribers, and that's something I'm also keeping a close eye on day to day. So I think what we'll see going forward is a lot like what we've seen in the past. We will be rotating into new products, where subscribers have interest and sunsetting the products that are no longer performing for us.

當然。因此，我們的內容不斷是粗糙的，並由我們各個出版商的團隊添加。因此，他們日復一日，每個季度都在研究哪些有效，哪些無效。所以他們的移動速度比我在集中位置上的移動速度要快。我擔心的是，我們正在做的事情正在為我們的訂戶帶來良好的結果，這也是我每天都密切關注的事情。因此，我認為我們未來看到的情況與過去看到的情況非常相似。我們將轉向訂閱者感興趣的新產品，並淘汰不再為我們服務的產品。

And then ARPU, yes, we don't expect to see significant drops there. Our customer -- our loyal customer base is still there. They're still buying. People are moving through our funnel more slowly than they have been in the past. But we're confident with the base of folks who are with us. Do you want to add anything on that, Lee?

然後是 ARPU，是的，我們預計不會出現大幅下降。我們的客戶——我們忠實的客戶群仍然存在。他們還在買。人們在我們渠道中的移動速度比過去要慢。但我們對我們身邊的人充滿信心。李，你想對此補充什麼嗎？

No, that's right. I think we're going to stay in a pretty steady zone here in the near future. And then hopefully, we'll get some momentum going with revenue and acquisition and we'll start to turning other way.

不，沒錯。我認為在不久的將來我們將保持在一個相當穩定的區域。然後希望我們能在收入和收購方面獲得一些動力，然後我們將開始轉向其他方向。

And then maybe just one follow-up, I mean, are you looking at any M&A at this point or is the thought just head down on operations?

然後也許只是一個後續行動，我的意思是，您目前是否正在考慮任何併購，或者這個想法只是專注於運營？

So we're absolutely looking at M&A. So we're getting more inbound inquiries now that we're public and that folks are struggling a little bit. So we're getting more reach out than we have seen in the past. And we're also pursuing other ideas that we're excited about. So there's lots in our pipeline. We're just picky about it. We want to make sure we get the right deal on the right terms.

所以我們絕對會考慮併購。因此，既然我們是公開的，我們就會收到更多的入站詢問，而且人們也遇到了一些困難。因此，我們的接觸範圍比過去更加廣泛。我們還在追求其他令我們興奮的想法。所以我們的管道中有很多東西。我們只是對此很挑剔。我們希望確保以正確的條件獲得正確的交易。

Thank you.

謝謝。

There are no further questions at this time. I would now like to hand the call back over to Amber Lee Mason for any closing comments.

目前沒有其他問題。我現在想將電話轉回給安珀·李·梅森 (Amber Lee Mason)，徵求結束意見。

Great. Thanks, everyone, for participating in today's conference call and for your interest in MarketWise. Have a great day.

偉大的。感謝大家參加今天的電話會議以及對 MarketWise 的關注。祝你有美好的一天。

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。