0001628280-21-022965 | 10-Q | XBRL Viewer

Total Class B stock-based compensation expense

412,565

73,451

1,061,085

172,575

Vested Class B units and change in fair value of Class B liability awards

409,922

73,451

1,058,442

172,575

Profits distributions to Class B unitholders

292,580

66,210

934,993

127,264

2021 Incentive Award Plan stock-based compensation expense

117,342

7,241

123,449

45,311

$ 2,643

$ 0

$ 2,643

$ 0

[1]

(2) Cost of revenue, sales and marketing, general and administrative, and research and development expenses are exclusive of depreciation and amortization shown as a separate line item

[2]


Included within cost of revenue, sales and marketing, and general and administrative expenses are stock-based compensation expenses as follows (see Note 9):
	Three Months Ended September 30,	Nine Months Ended September 30,
		2021		2020		2021		2020

Vested Class B units and change in fair value of Class B liability awards		$	292,580	$	66,210	$	934,993	$	127,264

Profits distributions to Class B unitholders		117,342		7,241		123,449		45,311

Total Class B stock-based compensation expense		409,922		73,451		1,058,442		172,575

2021 Incentive Award Plan stock-based compensation expense		2,643		—		2,643		—

Total stock-based compensation expense		$	412,565	$	73,451	$	1,061,085	$	172,575

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (366,285)	$ (68,293)	$ (989,764)	$ (165,711)
Other comprehensive (loss) income:
Cumulative translation adjustment	(40)	(57)	(141)	(30)
Total comprehensive (loss) income	$ (366,325)	$ (68,350)	$ (989,905)	$ (165,741)

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Revenue from Contract with Customer [Abstract]

Condensed Consolidated Statements of Stockholders' Deficit / Members' Deficit (Unaudited) - USD ($) $ in Thousands	Total	Marketwise, LLC	Common Stock - Class B	Class A Members’ units	Common Stock Common Stock - Class A	Common Stock Common Stock - Class B	Preferred Stock	Additional paid-in capital	Accumulated deficit	Accumulated Other Comprehensive Income (Loss)	Total Stockholders’ Deficit / Members’ Deficit Attributable to MarketWise, Inc.	Noncontrolling Interest
Class A members' units, beginning balance (in shares) at Dec. 31, 2019				605,352
Class A members' units, beginning balance at Dec. 31, 2019	$ (268,064)			$ (262,293)						$ (3)	$ (262,296)	$ (5,768)
Members' Deficit
Class A units transferred to Class B (in shares)				(57,886)
Acquisition of noncontrolling interest - TradeSmith	(9,164)			$ (12,295)							(12,295)	3,131
Distributions	(66,568)			(66,145)							(66,145)	(423)
Net (loss) income	(97,418)			$ (96,546)							(96,546)	(872)
Class A members' units, ending balance (in shares) at Jun. 30, 2020				547,466
Class A members' units, ending balance at Jun. 30, 2020	(441,187)			$ (437,279)						24	(437,255)	(3,932)
Stockholders' Deficit
Foreign currency translation adjustments	27									27	27
Net income	(97,418)			(96,546)							(96,546)	(872)
Total	(97,418)			$ (96,546)							(96,546)	(872)
Class A members' units, beginning balance (in shares) at Dec. 31, 2019				605,352
Class A members' units, beginning balance at Dec. 31, 2019	(268,064)			$ (262,293)						(3)	(262,296)	(5,768)
Members' Deficit
Net (loss) income	(165,711)
Class A members' units, ending balance (in shares) at Sep. 30, 2020				547,466
Class A members' units, ending balance at Sep. 30, 2020	(521,443)			$ (516,697)						(33)	(516,730)	(4,713)
Stockholders' Deficit
Foreign currency translation adjustments	(30)
Net income	(165,711)
Income tax provision	0
Controlling interests	(164,145)
Noncontrolling interests	(1,566)
Total	(165,711)
Class A members' units, beginning balance (in shares) at Jun. 30, 2020				547,466
Class A members' units, beginning balance at Jun. 30, 2020	(441,187)			$ (437,279)						24	(437,255)	(3,932)
Members' Deficit
Distributions	(11,906)			(11,819)							(11,819)	(87)
Net (loss) income	(68,293)			$ (67,599)							(67,599)	(694)
Class A members' units, ending balance (in shares) at Sep. 30, 2020				547,466
Class A members' units, ending balance at Sep. 30, 2020	(521,443)			$ (516,697)						(33)	(516,730)	(4,713)
Stockholders' Deficit
Foreign currency translation adjustments	(57)									(57)	(57)
Net income	(68,293)			(67,599)							(67,599)	(694)
Income tax provision	0
Controlling interests	(67,599)
Noncontrolling interests	(694)
Total	$ (68,293)			$ (67,599)							(67,599)	(694)
Class A members' units, beginning balance (in shares) at Dec. 31, 2020	547,466			547,466
Class A members' units, beginning balance at Dec. 31, 2020	$ (920,610)			$ (914,728)						(17)	(914,745)	(5,865)
Members' Deficit
Class A units transferred to Class B (in shares)				(18,947)
Acquisition of Chaikin	810											810
Distributions	(15,929)			$ (15,098)							(15,098)	(831)
Net (loss) income	(623,479)			$ (622,348)							(622,348)	(1,131)
Class A members' units, ending balance (in shares) at Jun. 30, 2021				528,519
Class A members' units, ending balance at Jun. 30, 2021	(1,559,309)			$ (1,552,174)						(118)	(1,552,292)	(7,017)
Stockholders' Deficit
Foreign currency translation adjustments	(101)									(101)	(101)
Net income	(623,479)			(622,348)							(622,348)	(1,131)
Total	$ (623,479)			$ (622,348)							(622,348)	(1,131)
Class A members' units, beginning balance (in shares) at Dec. 31, 2020	547,466			547,466
Class A members' units, beginning balance at Dec. 31, 2020	$ (920,610)			$ (914,728)						(17)	(914,745)	(5,865)
Members' Deficit
Net (loss) income	$ (989,764)
Stockholders' Deficit
Equity-based compensation (in shares)	309,500
Foreign currency translation adjustments	$ (141)
Net income	(989,764)
Income tax provision	3,085
Controlling interests	(1,021,881)
Noncontrolling interests	32,117
Total	(989,764)
Class A members' units, beginning balance (in shares) at Jun. 30, 2021				528,519
Class A members' units, beginning balance at Jun. 30, 2021	(1,559,309)			$ (1,552,174)						(118)	(1,552,292)	(7,017)
Members' Deficit
Net (loss) income	(409,132)			$ (409,213)							(409,213)	81
Distributions related to the recapitalization (in shares)				(120,353,000)
Distributions related to the recapitalization	(120,353)										(120,353)
Stockholders' Deficit
Net income	(409,132)			$ (409,213)							(409,213)	81
Gain on derivative warrant liabilities	9,900
Income tax provision	3,100
Controlling interests	(409,213)
Noncontrolling interests	81
Total	(409,132)			$ (409,213)							(409,213)	81
Class A members' units, beginning balance (in shares) at Jun. 30, 2021				528,519
Class A members' units, beginning balance at Jun. 30, 2021	(1,559,309)			$ (1,552,174)						(118)	(1,552,292)	(7,017)
Members' Deficit
Net (loss) income	(366,285)
Stockholders' Deficit
Foreign currency translation adjustments	(40)
Net income	(366,285)
Income tax provision	3,085
Controlling interests	(399,533)
Noncontrolling interests	33,248
Total	(366,285)
Class A members' units, beginning balance (in shares) at Jul. 20, 2021			589,465
Members' Deficit
Stock issued during reverse recapitalization (in shares)			291,092,303	(528,519)
Reverse capitalization on July 21, 2021				$ 2,081,740					$ (164,367)		1,917,373	(1,917,373)
Stockholders' Deficit
Net proceeds	113,291							$ (113,291)			113,291
Reclassification of Class B Units from liability to equity on July 21, 2021 (date of the Transactions)	1,528,228							1,528,228			1,528,228
Reverse capitalization on July 21, 2021				$ 2,081,740					(164,367)		1,917,373	(1,917,373)
Issuance of Common Stock - Class A and Class B (in shares)					24,952,096	291,092,303
Issuance of Common Stock - Class A and Class B					$ 2	$ 29		(31)
Establishment of derivative warrant liabilities	(45,021)							(45,021)			(45,021)
Establishment of deferred taxes	10,056							10,056			10,056
Establishment of noncontrolling interest								(1,511,911)		109	(1,511,802)	1,511,802
Ownership percentage		7.90%
Noncontrolling interest ownership percentage		92.10%
Net (loss) income	42,847								9,680		9,680	33,167
Equity-based compensation (in shares)					200,373
Equity-based compensation	1,732							1,732			1,732
Distributions	(4,226)											(4,226)
Foreign currency translation adjustments	(40)									(40)	(40)
Net income	42,847								9,680		9,680	33,167
Controlling interests	9,680
Noncontrolling interests	33,167
Total	42,847								9,680		9,680	33,167
Balance	$ (441,927)				$ 2	$ 29	$ 0	$ 96,344	$ (154,687)	$ (49)	$ (58,361)	$ (383,566)
Balance (in shares)					25,152,469	291,092,303	0

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net (loss) income	$ (989,764)	$ (165,711)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,076	1,912
Stock-based compensation	208,646	13,398
Change in fair value of derivative liabilities – Class B Units	728,079	113,866
Change in fair value of derivative liabilities – other	(11,543)	1,874
Deferred taxes	3,085	0
Unrealized losses on foreign currency	(62)	13
Noncash lease expense	1,375	2,106
Gain on sale of cryptocurrencies	(105)	0
Changes in operating assets and liabilities:
Accounts receivable	5,581	(456)
Related party receivables and payables, net	(906)	(5,010)
Prepaid expenses	(4,396)	(2,552)
Other current assets and other assets	26	(838)
Cryptocurrency intangible assets	109	31
Deferred contract acquisition costs	(82,050)	(37,185)
Trade and other payables	(7,667)	(960)
Accrued expenses	31,005	17,950
Deferred revenue	170,239	128,036
Operating lease liabilities	(859)	(1,865)
Other current and long-term liabilities	5,751	8,375
Net cash provided by operating activities	58,620	72,984
Cash flows from investing activities:
Cash paid for Chaikin acquisition, net of cash acquired	(7,139)	0
Acquisition of non-controlling interests, including transaction costs	0	(9,164)
Purchases of property and equipment	(73)	(229)
Purchases of intangible assets	(890)	(195)
Capitalized software development costs	(100)	0
Net cash (used in) provided by investing activities	(8,202)	(9,588)
Cash flows from financing activities:
Principal payments on long-term debt – related party	0	(5,390)
Net proceeds from the Transactions	113,291	0
Issuance of related party notes receivable	(8)	(1,437)
Proceeds from related party notes receivable	0	5,446
Distributions to members	(135,451)	(77,964)
Distributions to noncontrolling interests	(5,057)	(510)
Net cash used in financing activities	(27,225)	(79,855)
Effect of exchange rate changes on cash	(32)	(32)
Net increase in cash, cash equivalents and restricted cash	23,161	(16,491)
Cash, cash equivalents and restricted cash — beginning of year	114,927	172,084
Cash, cash equivalents and restricted cash — end of year	$ 138,088	$ 155,593

Organization	9 Months Ended
Organization	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Description of Business and Basis of Presentation MarketWise Inc, and its predecessor for accounting purposes, MarketWise, LLC (formerly Beacon Street Group, LLC) are collectively referred to herein as “MarketWise,” “the Company,” “we,” “us,” or “our”. The Company provides independent investment research for investors around the world. We believe we are a leading content and technology multi-brand platform for self-directed investors. We offer a comprehensive portfolio of high-quality, independent investment research, as well as several software and analytical tools, on a subscription basis. While our headquarters are in Baltimore, Maryland, we operate multiple subsidiaries in the United States. We also have operations in China and Singapore. Reverse Recapitalization with Ascendant Digital Acquisition Corp. On July 21, 2021, as contemplated by the Business Combination Agreement, dated as of March 1, 2021, by and among Ascendant Digital Acquisition Corp. (“ADAC”), MarketWise, LLC, all of the members of MarketWise, LLC (the “MarketWise Members”), and Shareholder Representative Services LLC, (as amended, the “Transaction Agreement”), ADAC was domesticated and continues as a Delaware corporation, changing its name to “MarketWise, Inc.” As a result of, and upon the effective time thereof, among other things, (1) each of the then issued and outstanding Class A ordinary shares, par value $0.0001 per share, of ADAC (the “ADAC Class A ordinary shares”) automatically converted, on a one-for-one basis, into a share of Class A common stock, par value $0.0001 per share, of MarketWise, Inc. (the “Class A common stock”); (2) each of the then issued and outstanding redeemable warrants of ADAC automatically converted into a redeemable warrant to acquire one share of Class A common stock (the “warrants”); and (3) each of the then issued and outstanding units of ADAC that had not been previously separated into the underlying ADAC Class A ordinary shares and underlying warrants upon the request of the holder thereof were cancelled and entitled the holder thereof to one share of Class A common stock and one-half of one warrant. No fractional warrants were issued upon such separation. On July 21, 2021, as contemplated by the Transaction Agreement, MarketWise, Inc. and MarketWise, LLC consummated the business combination contemplated by the Transaction Agreement whereby (i) MarketWise, LLC restructured its capitalization, appointed MarketWise, Inc. as its managing member, and issued to MarketWise, Inc. 28,003,096 common units of MarketWise, LLC (the “MarketWise Units”), and 30,979,993 warrants to purchase MarketWise Units and (ii) MarketWise, Inc. issued 291,092,303 shares of Class B common stock, par value $0.0001 per share, of MarketWise, Inc. (the “Class B common stock” and, together with the Class A common stock, the “common stock”) to the MarketWise Members. As previously announced, on March 1, 2021, concurrently with the execution of the Transaction Agreement, ADAC entered into subscription agreements (the “Subscription Agreements”) with certain investors (collectively, the “PIPE Investors”) who subscribed for 15,000,000 shares of Class A common stock at $10.00 per share for an aggregate commitment amount of $150,000 (the “PIPE Investment” and, together with the other transactions described above and all transactions contemplated by or pursuant to the Transaction Agreement, the “Transactions”). The PIPE Investment was consummated on July 21, 2021 substantially concurrently with the closing of the other Transactions. Immediately after giving effect to the Transactions, there were 28,003,096 shares of Class A common stock (including 3,051,000 Sponsor Earn Out Shares (as defined and discussed in our Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on July 28, 2021) the “Original Report”), 291,092,303 shares of Class B common stock, and 30,979,993 warrants outstanding (including 10,280,000 Private Placement Warrants (as defined in the Original Report)). Upon the consummation of the Transactions, ADAC’s ordinary shares, warrants, and units ceased trading on The New York Stock Exchange, and MarketWise, Inc.’s Class A common stock and warrants began trading on the Nasdaq under the symbols “MKTW” and “MKTW W,” respectively. Immediately after giving effect to the Transactions, (1) ADAC’s public shareholders owned approximately 0.1% of the outstanding MarketWise, Inc. common stock, (2) the MarketWise Members owned approximately 91.2% of the outstanding MarketWise, Inc. common stock, (3) Ascendant Sponsor LP, a Cayman Islands exempted limited partnership and related parties (the “Sponsor”) collectively owned approximately 3.2% of the outstanding MarketWise, Inc. common stock (including 3,051,000 Sponsor Earn Out Shares), and (4) the PIPE Investors owned approximately 4.7% of the outstanding MarketWise, Inc. common stock. The Transaction was accounted for as a reverse recapitalization in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Under the guidance in Accounting Standards Codifications (“ASC”) Topic 805, MarketWise, LLC is treated as the “acquirer” for financial reporting purposes. As such, MarketWise, LLC is deemed the accounting predecessor of the combined business and MarketWise, Inc. the successor registrant for SEC purposes, meaning that MarketWise, LLC’s financial statements for previous periods will be disclosed in the registrant’s future periodic reports filed with the SEC. The reverse recapitalization was treated as the equivalent of MarketWise, LLC issuing stock for the net assets of ADAC, accompanied by a recapitalization. As part of the recapitalization Transactions, we recorded net cash proceeds from the Transactions of $113.3 million in equity. This cash amount includes: (1) the reclassification of ADAC’s Trust Account of $414.3 million to cash and cash equivalents that became available at the time of the Transactions; (2) proceeds of $150.0 million from the issuance and sale of MarketWise Class A common stock in the PIPE investment; (3) payment of $48.8 million in non-recurring transaction costs; (4) settlement of $14.5 million in deferred underwriters’ discount; and (5) the payment of $387.7 million to redeeming shareholders of ADAC. We also recorded (1) $45.0 million in equity related to the establishment of the initial value of the warrants; and (2) $10.1 million in equity related to the establishment of the initial value of deferred taxes.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements include the accounts of MarketWise and its wholly owned subsidiaries. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated in consolidation. The accompanying statements of operations include expenses for certain functions historically performed by a related party, including general corporate services, such as legal, accounting, treasury, information technology, human resources and administration. These expenses are based primarily on direct usage when identifiable, direct capital expenditures or other relevant allocations during the respective periods. We believe the assumptions underlying the accompanying consolidated financial statements, including the assumptions regarding these expenses from this related party, are reasonable. Actual results may differ from these expenses, assumptions and estimates. The amounts recorded in the accompanying consolidated financial statements are not necessarily indicative of the actual amount of such indirect expenses that would have been recorded had we been a separate independent entity. Unaudited Interim Financial Information The accompanying unaudited consolidated financial statements and the related footnote disclosures have been prepared by us in accordance with GAAP for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2020 consolidated balance sheet data included herein was derived from audited financial statements but does not include all disclosures required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2021, the results of operations, comprehensive income (loss), stockholders’ deficit / members’ deficit, and cash flows for the three and nine months ended September 30, 2021 and 2020. The results of operations for the three and nine months ended September 30, 2021 and 2020 are not necessarily indicative of the results to be expected for the full year. The information contained herein should be read in conjunction with the audited financial statements for the year ended December 31, 2020 filed with the SEC. Management considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying financial statements include, but are not limited to, the fair value of common units, derivatives, warrants, valuation of assets acquired and liabilities assumed in business combinations, useful lives of intangible assets with definite lives, benefit period of deferred contract acquisition costs, determination of standalone selling prices, estimated life of lifetime customers, recoverability of goodwill and long-lived assets, valuation allowances on deferred tax assets, the incremental borrowing rates to calculate lease liabilities and right-of-use (“ROU”) assets and certain accruals. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. Emerging Growth Company We are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our unaudited condensed financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by our chief operating decision-maker (“CODM”) in deciding how to allocate resources and assess performance. Our Chief Executive Officer serves as the CODM. Based on the financial information presented to and reviewed by our CODM in assessing our performance and for the purposes of allocating resources, we have determined our operating subsidiaries represent individual operating segments with similar economic characteristics that meet the criteria for aggregation into a single reporting segment for financial statement purposes. Accordingly, we have a single reportable segment. Long-lived assets outside the United States were immaterial as of September 30, 2021 and December 31, 2020. Derivative Financial Instruments From time to time, we utilize instruments which may contain embedded derivative instruments as part of our overall strategy to compensate and retain key employees and independent contractors (see Derivative Financial Instruments note below for additional information). Our derivative instruments are recorded at fair value on the consolidated balance sheets. Our derivative instruments have not been designated as hedges; therefore, both realized and unrealized gains and losses are recognized in earnings. For the purposes of cash flow presentation, realized and unrealized gains or losses are included within cash flows from operating activities. Upfront cash payments received upon the issuance of derivative instruments are included within cash flows from financing activities within the consolidated statements of cash flows. Stock-Based Compensation Stock-based compensation expenses are included in cost of revenue, sales and marketing, and general and administrative expenses in a manner consistent with the employee’s salary and benefits in the consolidated statements of operations. 2021 Incentive Award Plan On July 21, 2021, the MarketWise, Inc. 2021 Incentive Award Plan (the “2021 Incentive Award Plan”) became effective. MarketWise has reserved a total of 32,045,000 shares of MarketWise Class A common stock for issuance pursuant to the 2021 Incentive Award Plan and the maximum number of shares that may be issued pursuant to the exercise of incentive stock options granted under the 2021 Incentive Award Plan is 32,045,000, in each case, subject to certain adjustments set forth therein. See also Note 9, Stock-Based Compensation. The 2021 Incentive Award Plan provides for the grant of stock options, including incentive stock options, or ISOs, and nonqualified stock options, or NSOs; restricted stock; restricted stock units, or RSUs; stock appreciation rights, or SARs; and other stock or cash-based awards. Equity-based compensation with service conditions made to employees is measured based on the grant date fair value of the awards and recognized as compensation expense over the period during which the recipient is required to perform services in exchange for the award (the requisite service period). We have elected to use a straight-line attribution method for recognizing compensation costs relating to awards that have service conditions only. Forfeitures are recorded as they occur. Class B Units As more fully described above, we completed our Transactions in July 2021, and all Class B Units fully vested as of the transaction date, and the original operating agreement was terminated and replaced by a new operating agreement consistent with the Company’s Up-C structure. This new operating agreement does not contain the put and call options that existed under the previous operating agreement, and the Common Units are treated as common equity under the new operating agreement and do not generate stock-based compensation expense. Prior to the Transactions, under the old operating agreement, and as part of our compensation and retention strategy, we granted incentive compensation units (“Class B Units”) to certain key employees, which are profit interests for United States federal income tax purposes. The Class B Units were accounted for as a substantive class of equity and allowed the recipient to realize value only to the extent that the value of the award appreciated. The Class B Units contained service-based vesting conditions and had different vesting terms depending upon the employee which ranged from vesting immediately to eight years; vesting was accelerated upon the completion of the Transactions. Compensation cost was recognized on a straight-line basis over the requisite service period until vesting for the entire award, but at least equaled the number of vested units determined by the underlying vesting schedule. Forfeitures were accounted for in the period in which they occur. The Class B Units were subject to a put and call option whereby we could elect to redeem or be required to redeem these units at a value determined by a predefined formula based on a multiplier of our net income as defined by management. Employees may not exercise the put option until 25 months have elapsed from the issuance date. Since the redemption price is not representative of fair value, the employees are not considered to be subject to the risks and rewards of share ownership, and the Class B Units were classified as liabilities in the accompanying consolidated balance sheet. Prior to the completion of the Transactions, the liability for Class B units was remeasured to fair value at the end of each reporting period. Since Class B Units were classified as liabilities, all cash distributions made to the unitholders of the Class B Units pursuant to our operating agreement were considered to be stock-based compensation expenses. Upon consummation of the Transactions, the old operating agreement was terminated and a new operating agreement was adopted. This new operating agreement does not contain the put and call options that existed under the previous operating agreement, and the Common Units are treated as common equity under the new operating agreement and do not generate stock-based compensation expense. Fair Value Measurement Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amount of our financial instruments, including accounts receivable, trade and other payables, accrued expenses and related party receivables and payables, approximate their respective fair values because of their short maturities. The fair value of stock-based compensation liabilities for Class B Units, the derivatives liabilities associated with our deferred compensation arrangements, and the derivative warrant liabilities were determined using unobservable Level 3 inputs. We have not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. Warrant Liability Warrants are accounted for as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. As of September 30, 2021, all of our warrants are classified as liabilities. Income Taxes Prior to the Transactions, we were a pass-through entity for income tax purposes. Subsequent to the Transactions, the portion of earnings allocable to MarketWise, Inc. is subject to corporate level tax rates at the federal, state and local levels. Therefore, the amount of income taxes recorded prior to the Transaction are not representative of the expenses expected in the future. The computation of the effective tax rate and provision at each interim period requires the use of certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income that is subject to tax, permanent differences between our GAAP earnings and taxable income, and the likelihood of recovering deferred tax assets existing as of the balance sheet date. The estimates used to compute the provision for income taxes may change throughout the year as new events occur, additional information is obtained or as tax laws and regulations change. Accordingly, the effective tax rate for future interim periods may vary materially. We account for income taxes pursuant to the asset and liability method which requires us to recognize current tax liabilities or receivables for the amount of taxes we estimate are payable or refundable for the current year, deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in our income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents a potential future obligation to the taxing authority for a tax position that was not recognized. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable and are recognized as general and administrative expenses. Tax Receivable Agreement Obligation In connection with the Transactions, concurrently with the Closing, we have entered into Tax Receivable Agreements (“TRA”) with owners of MarketWise, LLC prior to the Transactions (the “TRA Parties”). The TRAs generally provide for the payment by us to the TRA Parties of 85% of the cash tax benefits, if any, that we are deemed to realize as a result of tax basis adjustments as a result of sales and exchanges of units of MarketWise, LLC in connection with, or following the Transactions, and certain distributions with respect to units. These tax basis adjustments generated over time may increase (for tax purposes) the depreciation and amortization deductions available to us and, therefore, may reduce the amount of U.S. federal, state and local tax that we would otherwise be required to pay in the future, although the IRS may challenge all or part of the validity of that tax basis, and a court could sustain such challenge. The tax basis adjustments upon sales or exchanges of units for shares of Class A Common Stock and certain distributions with respect to Class A LLC Units may also decrease gains (or increase losses) on future dispositions of certain assets to the extent tax basis is allocated to those assets. Actual tax benefits realized by us may differ from tax benefits calculated under the Tax Receivable Agreements as a result of the use of certain assumptions in the TRAs, including the use of an assumed weighted average state and local income tax rate to calculate tax benefits. The payments that we may make under the TRAs are expected to be substantial. We account for the effects of these increases in tax basis and associated payments under the TRAs if and when exchanges occur as follows: a.recognizes a contingent liability for the TRA obligation when it is deemed probable and estimable, with a corresponding adjustment to additional paid-in-capital, based on the estimate of the aggregate amount that MarketWise, Inc. will pay; b.records an increase in deferred tax assets for the estimated income tax effects of the increases in tax basis based on enacted federal and state tax rates at the date of the exchange; c.to the extent we estimate that we will not realize the full benefit represented by the deferred tax asset, based on an analysis that will consider, among other things, our expectation of future earnings, we reduce the deferred tax asset with a valuation allowance; and, d.The effects of changes in any of the estimates and subsequent changes in the enacted tax rates after the initial recognition will be included in our net income. As of September 30, 2021, there has been no exchange of MarketWise, LLC units and therefore no TRA liability has been recognized. Earnout Shares Pursuant to the Transaction Agreement, at the closing of the Transactions, we placed 3,051,000 shares of MarketWise, Inc. Class A Common Stock into escrow to be released to the Sponsor if certain conditions are met. In addition, certain management members of the Company will be allocated from time to time up to 2,000,000 shares of Class A Common Stock in aggregate, with shares to be placed in escrow upon allocation, and released at any time during a four-year period following closing of the Transaction, if certain conditions are met. The sponsor and management earnout shares will be released as follows: 1) 50% when the volume weighted average price (the “VWAP) of Class A Common Stock is greater than or equal to $12.00 for a period of at 20 trading days within a consecutive 30-trading-day period, or based on the per share equity value in a transaction in which our shareholders sell their shares; and 2) 50% when the volume weighted average price (the “VWAP) of Class A Common Stock is greater than or equal to $14.00 for a period of at 20 trading days within a consecutive 30-trading-day period, or based on the per share equity value in a transaction in which our shareholders sell their shares. The sponsor and management earnout shares are classified as equity transactions at initial issuance and at settlement when the release conditions are met. Until the shares are issued and released, the earnout shares are not included in shares outstanding. The earnout shares are not considered stock-based compensation. As of the transaction date, the sponsor and management earnout shares had a fair value of $26.0 million. Noncontrolling Interest Noncontrolling interest represents the Company’s noncontrolling interest in consolidated subsidiaries which are not attributable, directly or indirectly, to the controlling Class A Common Stock ownership of the Company. The Transactions occurred on July 21, 2021. As a result, net income (loss) for the three months ended September 30, 2021 was attributed to the pre-Transaction period from July 1, 2021 through July 21, 2021 and to the post-Transaction period from July 22, 2021 through September 30, 2021. During the pre-Transaction period, net income (loss) was attributable to consolidated MarketWise, LLC and its respective noncontrolling interests. During the post-Transaction period, net income was attributable to consolidated MarketWise, Inc. and its respective noncontrolling interests. Following the Transactions, MarketWise, Inc.’s ownership percentage in MarketWise, LLC’s controlling and noncontrolling interests was 7.9% and 92.1%, respectively. For the post-Transaction period, net income attributable to controlling interests included a $9.9 million gain on derivative warrant liabilities and a $3.1 million tax provision, both of which are 100% attributable to the controlling interest. Earnings Per Share Basic net income per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding after the closing of the Transactions. Diluted net income per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding and the effect of all dilutive common stock equivalents and potentially dilutive share based compensation awards outstanding during the period after the closing of the Transactions.

Revenue Recognition

9 Months Ended

Sep. 30, 2021

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.


	Three Months Ended September 30, 2021
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	139,831	$	—	$	—	$	—	$	139,831
Transferred at a point in time	—		423		245		168		836
Total	$	139,831	$	423	$	245	$	168	$	140,667


	Three Months Ended September 30, 2020
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	95,763	$	—	$	—	$	—	$	95,763
Transferred at a point in time	—		437		1,041		918		2,396
Total	$	95,763	$	437	$	1,041	$	918	$	98,159


	Nine Months Ended September 30, 2021
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	398,362	$	—	$	—	$	—	$	398,362
Transferred at a point in time	—		1,968		864		1,317		4,149
Total	$	398,362	$	1,968	$	864	$	1,317	$	402,511


	Nine Months Ended September 30, 2020
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	251,685	$	—	$	—	$	—	$	251,685
Transferred at a point in time	—		1,443		2,479		1,729		5,651
Total	$	251,685	$	1,443	$	2,479	$	1,729	$	257,336

Revenue recognition by subscription type was as follows:


	Three Months Ended September 30,	Nine Months Ended September 30,
		2021		2020		2021		2020
Lifetime subscriptions		$	50,862	$	35,005	$	140,893	$	97,093
Term subscriptions		88,970		60,759		257,470		154,593
Non-subscription revenue		835		2,395		4,148		5,650
Total		$	140,667	$	98,159	$	402,511	$	257,336

Revenue for the Lifetime 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.

Net revenue by principal geographic areas was as follows:


	Three Months Ended September 30,	Nine Months Ended September 30,
		2021		2020		2021		2020
United States		$	139,998	$	97,369	$	400,871	$	255,142
International		669		790		1,640		2,194
Total		$	140,667	$	98,159	$	402,511	$	257,336

Revenue by location is determined by the billing entity for the customer.

Contract Balances

The timing of revenue recognition, billings, cash collections and refunds affects the recognition of accounts receivable, contract assets and deferred revenue. Our current deferred revenue balance in the consolidated balance sheets 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
	September 30, 2021		December 31, 2020
Contract balances
Accounts receivable	$	6,817	$	12,398
Obligations for refunds	$	5,403	$	3,448
Deferred revenue – current	$	332,783	$	274,819
Deferred revenue – non-current	$	366,676	$	254,481

We recognized $63,960 and $43,107 of revenue during the three months ended September 30, 2021 and 2020, and $240,638 and $156,084 during the nine months ended September 30, 2021 and 2020, 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 $6,817 and $12,398 as of September 30, 2021 and December 31, 2020, 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, 2021	$	107,236
Royalties and sales commissions – additions	55,502
Revenue share and cost per acquisition fees – additions	77,437
Amortization of capitalized costs	(50,889)
Balance at September 30, 2021	$	189,286

We did not recognize any impairment on capitalized costs associated with contracts with customers for the three and nine months ended September 30, 2021 and 2020.

Remaining Performance Obligations

As of September 30, 2021, the Company had $704,862 of remaining performance obligations presented as deferred revenue in the consolidated balance sheets. We expect to recognize approximately 47% of that amount as revenues over the next twelve months, with the remainder recognized thereafter.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Goodwill and Intangible Assets Disclosure [Abstract]

Acquisitions

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Acquisitions

Chaikin

On January 21, 2021, we acquired 90% ownership of Chaikin Holdings LLC (“Chaikin”) a provider of analytical tools and software for investors, for cash of $7,139, net of cash acquired. We acquired Chaikin to expand our product offerings and our customer base. The Chaikin acquisition was accounted for using the acquisition method of accounting for business combinations. The purchase price allocation is preliminary pending completion of valuations of certain acquired assets and liabilities. The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:


Cash	$	151
Other current assets	152
Customer relationships	3,664
Tradenames	657
Software	247
Goodwill	5,237
Other noncurrent assets	443
Total assets acquired	10,551
Liabilities assumed	(2,451)
Net assets acquired	$	8,100

Cash consideration	$	7,290
Noncontrolling interest	810
Total consideration	$	8,100

The excess purchase consideration over the fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill arising from the acquisition is largely attributable to synergies which we expect to achieve from cross-marketing and providing complementary products to our existing and acquired customers, and is expected to be fully deductible for tax purposes. The acquired intangible assets of Chaikin are amortized over their estimated useful lives. Accordingly, the trade name will be amortized over 8.5 years and customer relationships will be amortized over 6 years. Amortization for the acquired intangible assets was $115 and $477 for the three and nine months ended September 30, 2021, respectively.

TradeSmith

On January 5, 2020, we acquired the noncontrolling interest of 25% in an affiliate, TradeSmith, to obtain 100% ownership for $9,164, including transaction costs. We incurred transaction costs of $164 during the nine months ended September 30, 2021 and elected to record these costs as a reduction in equity.

Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets, Net

Goodwill

The changes in the carrying amounts of goodwill are as follows:





Balance at January 1, 2021	$	18,101
Acquisition of Chaikin	5,237
Balance at September 30, 2021	$	23,338

Intangible assets, net

Intangible assets, net consisted of the following as of the dates indicated:


	September 30, 2021
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	12,369	$	(7,799)	$	4,570	4.6
Tradenames	3,578		(1,739)		$	1,839	5.5
Capitalized software development costs	2,842		(1,240)		1,602		3.1
Finite-lived intangible assets, net	18,789		(10,778)		8,011

Indefinite-lived intangible assets:
Cryptocurrencies	—		—		—
Internet domain names	1,085		—		1,085
Indefinite-lived intangible assets, net	1,085		—		1,085
Intangible assets, net	$	19,874	$	(10,778)	$	9,096


	December 31, 2020
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	8,705	$	(6,675)	$	2,030	2.7
Tradenames	2,921		(1,433)		1,488		4.9
Capitalized software development costs	2,495		(934)		1,561		3.8
Finite-lived intangible assets, net	14,121		(9,042)		5,079

Indefinite-lived intangible assets:
Cryptocurrencies	4		—		4
Internet domain names	195		—		195
Indefinite-lived intangible assets, net	199		—		199
Intangible assets, net	$	14,320	$	(9,042)	$	5,278

We recorded amortization expense related to finite-lived intangible assets of $513 and $529 for the three months ended September 30, 2021 and 2020, and $1,736 and $1,575 for the nine months ended September 30, 2021 and 2020, respectively, within depreciation and amortization in the accompanying consolidated statement of operations. These amounts include amortization of capitalized software development costs of $103 and $104 for the

three months ended September 30, 2021 and 2020, and $306 and $311 for the nine months ended September 30, 2021 and 2020, respectively.

We recorded additions to capitalized software development costs of $347 for the nine months ended September 30, 2021. This amount includes acquired software of $247.

As of September 30, 2021, the total expected future amortization expense for finite-lived intangible assets is as follows:


Remainder of 2021	$	515
2022	2,116
2023	1,953
2024	1,460
2025	1,005
Thereafter	962
Finite-lived intangible assets, net	$	8,011

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of the dates indicated:


	September 30, 2021
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	42,800	$	—	$	—	$	42,800
Total assets	42,800		—		—		42,800
Liabilities:
Derivative liabilities, current	—		—		547		547
Derivative liabilities, noncurrent	—		—		2,205		2,205

Derivative warrant liabilities - Public Warrants	23,402		—		—		23,402
Derivative warrant liabilities - Private Placement Warrants	—		—		11,667		11,667
Total liabilities	$	23,402	$	—	$	14,419	$	37,821


	December 31, 2020
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	25,016	$	—	$	—	$	25,016
Total assets	25,016		—		—		25,016
Liabilities:
Derivative liabilities, noncurrent	—		—		4,343		4,343
Class B Units - related party	—		—		593,235		593,235
Total liabilities	$	—	$	—	$	597,578	$	597,578

The level 3 liabilities that related to our Class B Units and certain employee and non-employee contracts with embedded derivatives, see Note 8, Derivative Financial Instruments and Note 9, Stock-Based Compensation.

On the date of the Transactions, the fair value of the Public Warrants and the Private Placement Warrants was estimated using a Monte Carlo simulation model. The fair value of the Public Warrants was subsequently measured based on the listed market price of such warrants at the end of the reporting period. The fair value of the Private Placement Warrants was subsequently estimated using a Monte Carlo simulation model at the end of the reporting period. The Company estimates the fair value of the warrants at each reporting period, with changes in fair value recognized in the condensed consolidated statements of operations.

The estimated fair value of the derivative warrant liabilities – Public Warrants is determined using Level 1 inputs. The estimated fair value of the derivative warrant liabilities – Private Placement Warrants is determined using Level 3 inputs. Inherent in a Monte Carlo simulation are assumptions related to expected stock-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its ordinary shares based on historical volatility of select peer companies that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term.

The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates:


	As of
	September 30, 2021
Stock price	$	8.26
Exercise Price	$	11.50
Expected life of the warrants to convert (years)	4.81
Volatility	27.80		%
Risk-free rate	0.93		%

The following table summarizes the change in fair value of the derivative liabilities during the nine months ended September 30, 2021 and 2020:


















Balance at January 1, 2021	$	597,578
Incremental Class B Units	206,914
Establishment of derivative warrant liabilities on July 21, 2021 (date of the Transactions)	45,021
Change in fair value of derivative instruments	(11,543)
Change in fair value of Class B Units	728,079
Reclassification of Class B Units from liability to equity on July 21, 2021 (date of the Transactions)	$	(1,528,228)
Balance at September 30, 2021	$	37,821

Balance at January 1, 2020	$	119,307
Incremental Class B Units	13,398
Change in fair value of derivative instruments	1,874
Change in fair value of Class B Units	113,866
Balance at September 30, 2020	$	248,445

The following table summarizes the change in fair value of the Class B Units by income statement line item during the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of revenue	$	24,028	$	12,167	$	136,417	$	22,052
Sales and marketing	2,607		943		10,870		1,965
General and administrative	102,911		50,960		580,792		89,849
Total change in fair value of Class B Units	$	129,546	$	64,070	$	728,079	$	113,866

To derive the fair value of the Class B Units, we estimated the fair value of Class B Units using a valuation technique. For more information regarding the valuation of the Class B Units, see Note 9, Stock-Based Compensation.

As more fully described in Note 1, we completed our Transactions in July 2021, and all Class B Units fully vested as of the transaction date, and the original operating agreement was terminated and replaced by a new operating agreement consistent with the Company’s Up-C structure. This new operating agreement does not contain the put and call options that existed under the previous operating agreement, and the Common Units under the new operating agreement are treated as common equity and do not generate stock-based compensation expense. The Class B Units liability was reclassified to equity as of the transaction date.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

9 Months Ended

Sep. 30, 2021

Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consists of the following:


		As of
	Estimated Useful Lives	September 30, 2021		December 31, 2020
Furniture and fixtures	5 years	$	960	$	960
Computers, software and equipment	3 years	1,338		1,220
Leasehold improvements	Shorter of estimated useful life or remaining term of lease	1,278		1,278
		3,576		3,458
Less: Accumulated depreciation and amortization		(2,381)		(2,041)
Total property and equipment, net		$	1,195	$	1,417

Depreciation and amortization expense for property and equipment was $116 and $111 for the three months ended September 30, 2021 and 2020, and $340 and $337 for the nine months ended September 30, 2021 and 2020, respectively.

Accrued Expenses

Accrued expenses consist of the following:


	As of
	September 30, 2021		December 31, 2020
Commission and variable compensation	$	42,661	$	17,271
Payroll and benefits	4,505		3,645

Other accrued expenses	16,151		11,218
Total accrued expenses	$	63,317	$	32,134

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Prior to the closing of the Transactions, as part of our compensation and employee retention strategy, we entered into contracts with key employees and independent contractors which contain embedded derivatives. These contracts are intended to compensate the employees or independent contractors for services provided and retain their future services. These embedded derivative instruments are issued in the form of phantom interests in Net Income, as defined by our board of directors, that grant the holder value equal to a percentage of Net Income multiplied by a price multiple, or contain an option that granted appreciation rights upon exercise, and which become exercisable upon occurrence of an initial public offering. All derivative instruments are recorded at fair value as derivative liabilities on our consolidated balance sheets.

As of September 30, 2021, there are both Private Placement Warrants and public warrants outstanding; each of which is exercisable for one share of Class A common stock of MarketWise, Inc. Additionally, there are embedded derivative instruments outstanding. The following table presents information on the location and amounts of derivative instruments gains and losses:


		Three Months Ended September 30,	Nine Months Ended September 30,
			2021		2020		2021		2020
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income Statement
Warrants	Other income, net		$	9,952	$	—	$	9,952	$	—
Phantom Interests in Net Income	Other income, net		—		(877)		—		(1,874)
Phantom Interests in Net Income	General and administrative		(250)		—		2,138		—
Option	General and administrative		115		—		(547)		—
Total			$	9,817	$	(877)	$	11,543	$	(1,874)

See Fair Value Measurements note for more information regarding the valuation of our derivative instruments.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based CompensationDuring the three and nine months ended September 30, 2021, we recorded stock-based compensation related to our 2021 Incentive Award Plan and our Class B Units. As more fully described in Note 1, we completed our Transactions in July 2021, and all Class B Units fully vested as of the transaction date, and the original operating agreement was terminated and replaced by a new operating agreement consistent with the Company’s Up-C structure. This new operating agreement does not contain the put and call options that existed under the previous

operating agreement, and the Common Units are treated as common equity under the new operating agreement and do not generate stock-based compensation expense.

2021 Incentive Award Plan

On September 27, 2021, as a result of Board approval and the successful filing of a registration statement on Form S-8, we granted 500 Class A common stock of MarketWise, Inc. to all employees who were actively employed as of both March 2, 2021 and September 27, 2021. Total shares granted were 309,500 and we issued 200,373 shares after withholding for taxes. All shares immediately vested at the time of grant, resulting in compensation expense of $2,569.

On September 27, 2021, we granted certain employees restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) under our 2021 Incentive Award Plan.

Both RSUs and SARs are time based and vest ratably over four years, as specified in the individual grant notices. The RSUs granted in September 2021 entitle the recipients dividend equivalents which are subject to the same vesting terms and accumulate during the vesting period. Upon vesting, the RSU holder will be issued the Company’s Class A common stock. The SARs will be settled in the Company’s Class A common stock upon exercise. The shares to be issued upon exercise will have a total market value equal to the SAR value calculated as (x) number of shares underlying SAR, multiplied by (y) any excess of the Company’s share value on the date of exercise over the exercise price set in each individual grant notice.

The fair value of RSU is the same as the Company’s share price on the date of grant. The fair value of the SARs was determined using a Black-Scholes model using the following assumptions:


	As of
	September 30, 2021
Volatility	50.0		%
Stock price	$	8.30
Strike price	$	8.30
Expected life of the options to convert (years)	6.25
Risk-free rate	1.20		%
Dividend yield	0.0		%

The activities of the RSUs and SARs are summarized as follows, including granted, exercised and forfeited from September 27, 2021, the date of the initial establishment of the new incentive plan and grants to September 30, 2021.


	Fully Vested Shares	RSUs	SARs
Outstanding at January 1, 2021	—	—	—
Granted	309,500	2,334,490	1,935,131
Exercised or vested	(309,500)	—	—
Forfeited	—	—	—
Expired	—	—	—
Outstanding at September 30, 2021	—	2,334,490	1,935,131

The stock compensation expense related to the new RSU and SAR grants was $74 for the three and nine months ending September 30, 2021. The weighted average grant-date fair value of the respective share classes are as follows:


	As of
	September 30, 2021
Fully vested shares	$	8.30
RSUs	$	8.30
SARs	$	4.05

As of September 30, 2021, none of the SARs were exercisable and they have a remaining contractual term of ten years.

Class B Units

We recognized stock-based compensation expenses of $409,922 and $73,451 for the three months ended September 30, 2021 and 2020, and $1,058,442 and $172,575 for the nine months ended September 30, 2021 and 2020, respectively. These amounts include profits distributions to Class B unitholders of $117,342 and $7,241 for the three months ended September 30, 2021 and 2020, and $123,449 and $45,311 for the nine months ended September 30, 2021 and 2020, respectively. The amount of stock-based compensation expense related to the Class B Units included in each of the line items in the accompanying consolidated statement of operations is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of revenue	$	45,618	$	13,717	$	170,536	31,943
Sales and marketing	31,507		943		46,417		3,168
General and administrative	332,797		58,791		841,489		137,464
Total stock based-compensation expense	$	409,922	$	73,451	$	1,058,442	$	172,575

The following is a rollforward of Class B Units activity for the nine months ended September 30, 2021:










Unvested at January 1, 2021			75,044
Granted			17,690
Vested			(92,734)
Unvested at September 30, 2021			—

Immediately prior to the closing of the Transactions, there were 589,465 Class B units of MarketWise, LLC outstanding. All Class B units were converted into 152,822,842 Common Units of MarketWise, LLC and became immediately vested, resulting in an incremental stock-based compensation expense of $292,580.

The weighted-average grant-date fair value of Class B Units granted was $2,195.16 and $178.69 per unit during the nine months ended September 30, 2021 and 2020, respectively.

Because the Class B Units were not publicly traded, we estimated the fair value of its Class B Units in each reporting period. The fair values of Class B Units were estimated by the board of managers based on our equity value. The board of managers considered, among other things, contemporaneous valuations of our equity value prepared by an unrelated third-party valuation firm in accordance with the guidance provided by the American Institute of Certified Public Accountants Practice Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation.

For the three and nine months ended September 30, 2020, the fair value of the Class B Units was estimated using an option pricing model to allocate the equity value of the Company to the Class B Units based on their distribution rights. To derive the fair value of the Class B Unit liability, a two-step valuation approach was used. First the equity value of the Company was estimated. The Company considers asset, market, and income-based approaches. The Company determined that an income-based approach presented the best indication of value. As such, the Company relied upon a discounted cash flow approach using a five-year discrete projection period,

discounting expected future cash flows back to that date. This calculated equity value was then allocated to the common units held by various stockholders using an option pricing model.

At the date of the Transactions on July 21, 2021, the $10 market value per share was used.

For the three and six months ended June 30, 2021, the fair value of the Class B Units was estimated using a probability-weighted expected return method. This method considered two scenarios: one based on a market approach according to a proposed acquisition of the Company and allocated through a liquidation waterfall, and the other based on the Company continuing as a private entity according to a discounted cash flow analysis, and allocated using an option pricing model. The results of these two methods were weighted to derive the fair value of the Class B Units as of March 31, 2021 and June 30, 2021.

The discounted cash flow method estimates the equity value of the Company by projecting the Company’s net cash flows into the future and discounting these net cash flows to present value by applying a discount rate. Key inputs for this valuation include the Company’s projected cash flows and discount rate. Changes to these inputs could have a material impact on the accompanying consolidated financial statements.

The option pricing model allocates the equity value to each class of common units by preparing a breakpoint analysis to determine which securities would receive value at each threshold of a hypothetical liquidation. Then applying a Black-Scholes option pricing analysis to determine the incremental value of each respective breakpoint and allocating that value to each participating security based on its pro-rata ownership in the breakpoint. Key inputs for this valuation include the equity value of the Company, risk-free rate, allocation thresholds, and stock volatility.

The Company considered several objective and subjective factors to determine the best estimate of the fair value of the Class B Units, including:

▪the Company’s historical and expected operating and financial performance;

▪current business conditions;

▪indications of value from external investors and their proposed value for the business;

▪the Company’s stage of development and business strategy;

▪macroeconomic conditions;

▪the Company’s weighted average cost of capital;

▪risk-free rates of return;

▪the volatility of comparable publicly traded peer companies; and

▪the lack of an active public market for the Company’s equity units.

See also Note 2, Stock Based Compensation.

Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

On July 21, 2021, we completed the Transactions pursuant to the Transaction Agreement which materially impacted the number of shares outstanding. We analyzed the calculation of earnings per share for periods prior to the Transactions, and determined that it resulted in values that would not be meaningful to the users of the condensed consolidated financial statements, as our capital structure completely changed as a result of the Transactions. Therefore, earnings per share information has not been presented for periods prior to the Transactions.

Weighted average shares outstanding in the table below have not been retroactively restated to give effect to the reverse recapitalization for periods prior to the date of the Transactions. See Note 1 – Description of Organization

and Reverse Recapitalization with Ascendant Digital Acquisition Corp. for more information regarding the Transactions.

The following table sets forth the computation of basic and diluted earnings per share for the period from July 22, 2021 through September 30, 2021:




Numerator:
Net income for the period from July 22, 2021 through September 30, 2021	$	42,847
Less: Net income attributable to noncontrolling interests for the period from July 22, 2021 through September 30, 2021	33,167
Net income for the period from July 22, 2021 through September 30, 2021 attributable to common shareholders, basic and dilutive	$	9,680

Denominator:
Weighted average shares outstanding, basic and diluted (in thousands)	$	24,963

Net income per share attributable to common shares, basic and diluted	$	0.39

The Company’s potentially dilutive securities and their impact on the computation of earnings per share is as follows:

•Public and Private Placement Warrants: the public and Private Placement Warrants are "out of the money" for the period from July 22, 2021 through September 30, 2021, therefore, net income per share excludes any impact of the 20,699,993 public warrants and 10,280,000 Private Placement Warrants.

•Sponsor and MarketWise Management Member Earnout shares: the 3,051,000 Sponsor Earn Out shares held in escrow are excluded from the earnings per share computation since the earnout contingency has not been met. The 2,000,000 MarketWise Management Member Earn Out shares (as defined and discussed in the Original Report) held in escrow are excluded from the earnings per share computation since the earnout contingency has not been met.

•Restricted stock units: The earnings per share calculation excludes the impact of RSUs since no units were vested as of September 30, 2021.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We are subject to U.S. federal and state taxes with respect to our allocable share of any taxable income or loss of MarketWise, LLC, as well as any stand-alone income or loss we generate. MarketWise, LLC is treated as a partnership for U.S. income tax purposes and for most applicable state and local income tax purposes and generally does not pay income taxes in most jurisdictions. Instead, MarketWise, LLC’s taxable income or loss is passed through to its members, including us. The effective income tax rates for the three and nine months ended September 30, 2021 were (0.8)% and (0.3)%, respectively. We did not record any income taxes for the three and nine months ended September 30, 2020 as we were a pass-through entity for tax purposes prior to the closing of the Transactions. Our effective tax rate in 2021 differs from the U.S. federal statutory rate primarily because we generally do not record income taxes for the noncontrolling portion of pre-tax income. As a result of the reverse capitalization, we recorded a deferred tax asset resulting from the outside basis difference in our interest in MarketWise, LLC, a portion of which related to net assets with tax basis that is ordinary in nature and a portion of which related to the residual outside basis that is capital in nature. The residual outside basis that is capital in nature would only be recognized upon disposition of our interest in MarketWise, LLC, for which there are no foreseeable plans. The residual outside basis difference would also only offset with a capital gain, which is not expected to arise for the Company. Therefore, a valuation allowance in the amount of $28,947 was recorded, as we determined that it was more likely than not that this portion of the deferred tax asset will not be realized. As part of the reverse capitalization, we are now a taxable corporation, subject to federal and state income taxes. We entered into Tax Receivable Agreements (“TRAs”) with certain shareholders that will represent approximately 85% of the calculated tax savings based on the portion of basis adjustments on future exchanges of MarketWise, LLC units and other carryforward attributes assumed that we anticipate to be able to utilize in future years. There was no exchange of MarketWise, LLC units as part of the Transactions and there has been no exchange since the closing; therefore, we have not recorded a liability under the TRAs as of September 30, 2021. As of September 30, 2021, we had no unrecognized tax positions and believe there will be no changes to uncertain tax positions within the next 12 months.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Variable Interest Entities [Abstract]

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In July 2021, the Company’s board approved and made a discretionary, one-time, lifetime-award, non-employee bonus payment of $10.0 million to the Company’s founder, who is a Class B common stockholder, which was recorded within related party expense in the condensed consolidated statement of operations. We have certain revenue share agreements with related parties. Accordingly, we recognized revenue from related parties of $245 and $1,041 for the three months ended September 30, 2021 and 2020, and $864 and $2,479 for the nine months ended September 30, 2021 and 2020, respectively. We also incurred revenue share expenses paid to related parties of $1,337 and $1,255 which were capitalized as contract origination costs for the three months ended September 30, 2021 and 2020, and $8,921 and $2,884 which were capitalized as contract origination costs for the nine months ended September 30, 2021 and 2020, respectively. Additionally, a related party provided call center support and other services to the Company for which we recorded an expense within cost of revenue of $347 and $98 for the three months ended September 30, 2021 and 2020, and $960 and $941 for the nine months ended September 30, 2021, respectively. A related party also provided certain corporate functions to MarketWise and the costs of these services are charged to MarketWise and recorded within related party expense in the accompanying consolidated statement of operations. We held balances of $1,338 and $3,288 as of September 30, 2021 and December 31, 2020 of related party payables related to these services. The balances with our related party are presented net and are included in related party payables, net in the consolidated balance sheet. We earned fees and provided certain accounting and marketing services to companies owned by certain of MarketWise’s Class B unitholders. As a result, we recognized $93 and $86 in other income, net for the three months ended September 30, 2021 and 2020, and $235 and $280 for the nine months ended September 30, 2021 and 2020, respectively. Related party receivables related to these services were $582 and $689 as of September 30, 2021 and December 31, 2020, respectively. We lease offices from related parties. Lease payments made to related parties were $383 and $376 for the three months ended September 30, 2021 and 2020, and $1,150 and $1,128 for the nine months ended September 30, 2021 and 2020, respectively, and rent expense of $556 and $556 were recognized in general and administrative expenses for the three months ended September 30, 2021 and 2020, and $1,668 and $1,668 for the nine months ended September 30, 2021 and 2020, related to leases with related parties. At September 30, 2021 and December 31, 2020, ROU assets of $10,738 and $11,957 and lease liabilities of $7,789 and $8,490 are associated with leases with related parties. We incurred costs related to lead generation marketing from a related party vendor which was partially owned by a shareholder through November 2020. We purchased lead generation marketing of $4,292 and $12,336 for the three and nine months ended September 30, 2020, respectively, which was recorded in sales and marketing expenses. In August 2019 we provided an additional loan to a Class B unitholder and recognized a related party note receivable from the unitholder of $3,000. We recognized $25 in interest income for the nine months ended September 30, 2020. This loan was repaid in June 2020. In April 2020 we provided a loan to a Class A unitholder and recognized a related party note receivable from the unitholder of $1,155 as of September 30, 2021. We recognized $2 and $2 in interest income for the three months ended September 30, 2021 and 2020, and $7 and $3 for the nine months ended September 30, 2021 and 2020, respectively. The interest rate on the loan is variable and was 0.86% as of September 30, 2021. The loan is due in April 2025, but is required to be repaid within 30 days after we complete an initial public offering, including expiration of any related lockup conditions, which is expected to be met in 2022.

Variable Interest Entities

9 Months Ended

Sep. 30, 2021

Variable Interest Entities

We consolidated a VIE based on our ability to exercise power and being the primary beneficiary of the entity including directing the operations and marketing campaigns and sharing customer lists and publications, as of September 30, 2021 and December 31, 2020. There have been no reconsideration events during these periods. The assets of consolidated variable interest entities may only be used to settle obligations of these entities. In addition, there is no recourse to MarketWise for the consolidated VIE’s liabilities. The following represents financial information for the consolidated VIE included in the consolidated balance sheets:


	As of
	September 30, 2021		December 31, 2020
Current assets	$	1,048	$	3,787
Noncurrent assets	5		22
Total assets	$	1,053	$	3,809

Current liabilities	$	564	$	3,265
Noncurrent liabilities	—		—
Total liabilities	$	564	$	3,265

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Cash Flow Information

Supplemental cash flow disclosures are as follows:


	Nine Months Ended September 30,
		2021		2020
Supplemental Disclosures of Cash Flow Information:

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	(1,317)	$	(2,389)
Operating lease right-of-use assets obtained in exchange for lease obligations		—		409
Operating lease right-of-use assets obtained in exchange for lease obligations from acquisitions		(398)		—




		As of September 30,
		2021		2020
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents		$	137,588	$	155,089
Restricted cash		500		504
Total		$	138,088	$	155,593

Shareholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Upon closing of the Transactions on July 21, 2021, as discussed in Note 1, Description of Organization and Merger Transaction, the Company’s capital stock consists of (i) issued and outstanding Class A Common Stock of the Company, par value $0.0001 per share, as a result of the automatic conversion of ADAC Class A ordinary shares on a one-for-one basis, (ii) issued and outstanding 15,000,000 shares of Class A Common Stock of the Company at $10.00 per share to PIPE investors, pursuant to the Transaction Agreement, and (iii) issued and outstanding Class B Common Stock, par value $0.0001 per share, issued to the MarketWise Members.

In connection with the 2021 Award Incentive Plan, we issued 309,500 shares net of 109,127 shares withheld to pay taxes.

The table set forth below reflects information about the Company’s equity, as of September 30, 2021. The 3,051,000 shares of Sponsor Earn Out shares held in escrow are considered contingently issuable shares and therefore excluded from the number of Class A Common Stock issued and outstanding in the table below.


	Authorized	Issued	Outstanding
Common Stock - Class A	950,000,000	25,152,469	25,152,469
Common Stock - Class B	300,000,000	291,092,303	291,092,303
Preferred Stock	100,000,000	—	—
Total	1,350,000,000	316,244,772	316,244,772

Each share of Class A and Class B Common stock entitles the holder one vote per share. Only holders of Class A Common Stock have the right to receive dividend distributions. In the event of liquidation, dissolution or winding up of the affairs of the Company, only holders of Class A Common Stock have the right to receive liquidation proceeds, while the holders of Class B Common Stock are entitled to only the par value of their shares. Class B Common Stock can be issued only to MarketWise Members, their respective successors and permitted transferees. Our board of directors has discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock.

Warrants	9 Months Ended
Warrants	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Warrants	Warrants In connection with the closing of the Transaction, outstanding public redeemable warrants and Sponsor held private warrants of ADAC were converted into warrants to purchase Class A common stock of MarketWise, Inc., with substantively identical terms. Immediately after giving effect to the Transaction, there were 20,699,993 public warrants and 10,280,000 private warrants held by the Sponsor, each exercisable for one share of Class A common stock of MarketWise, Inc. at $11.50 per share. As of September 30, 2021, the number of warrants outstanding remained unchanged. The warrants may be exercised only during the period commencing on August 20, 2021 (30 days after the closing of the Transaction) through August 20, 2026 (five years after the closing of the Transaction). The private warrants are identical to the public warrants, except that the private warrants will be non-redeemable (except as set forth below under “-Redemption of warrants when the price per share equals or exceeds $10.00”) so long as they are held by the Sponsor or their permitted transferees. Redemption of warrants when the price per share equals or exceeds $10.00 Once the warrants become exercisable, the Company may redeem the outstanding warrants for Class A common stock: •in whole and not in part; • at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of Class A common stock to be determined by reference to an agreed table based on the redemption date and the “fair market value” of the Class A common stock; •if, and only if, the last reported sale price (the “closing price”) of the Class A common stock equals or exceeds $10.00 per share (as adjusted) for any 20 trading days within the 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and •if the closing price of the Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the private warrants must also be concurrently called for redemption on the same terms as the outstanding public warrants, as described above. The “fair market value” of the Class A common stock shall mean the volume weighted average price of the Class A common stock during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. The Company will provide warrant holders with the final fair market value no later than one business day after the 10-trading day period described above ends. In no event will the warrants be exercisable in connection with this redemption feature for more than 0.361 Class A common stock per warrant (subject to adjustment). Redemption of warrants when the price per share equals or exceeds $18.00 Once the warrants become exercisable, the Company may redeem the outstanding warrants for cash (except the private warrants): •in whole and not in part; •at a price of $0.01 per warrant; •upon a minimum of 30 days’ prior written notice of redemption; and •if, and only if, the closing price of the Class A common stock equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30- trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. The Company has reviewed the terms of warrants to purchase its Class A common stock to determine whether warrants should be classified as liabilities or equity in its consolidated balance sheet. In order for a warrant to be classified in stockholders’ equity, the warrant must be (a) indexed to the Company’s equity and (b) meet the conditions for equity classification in ASC 815-40, Derivatives and Hedging - Contracts in an Entity’s Own Equity. If a warrant does not meet the conditions for equity classification, it is carried on the consolidated balance sheet as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in the consolidated statement of operations as change in fair value of warrants in Other income (expense), net. The Company determined that all warrants are required to be classified as liability in the condensed consolidated balance sheet at fair value, with changes in fair value recorded in the consolidated statement of operations. At the closing of the Transaction on July 21, 2021, the warrants had an initial fair value of $45,021, which was recorded as liability and a reduction to additional paid-in capital in the consolidated balance sheet. As of September 30, 2021, the fair value of the warrants was $35,069.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Subsequent events have been evaluated through November 12, 2021, which is the date that the financial statements were available to be issued. On November 4, 2021, our Board of Directors authorized the repurchase of up to $35.0 million in aggregate of shares of the Company’s Class A common stock, with the authorization to expire on November 3, 2023. Stock repurchases under this program will be made from time to time, on the open market, in privately negotiated transactions or by other methods, at the discretion of the management of the Company and in accordance with the limitations set forth in Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, and other applicable legal requirements. The timing of the repurchases will depend on market conditions and other requirements. The Company currently anticipates the share repurchase program will extend over a two-year period, or such shorter period if $35.0 million in aggregate of shares have been repurchased. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended, or discontinued at any time. For each share of Class A common stock the Company repurchases under the share repurchase program, MarketWise, LLC, the Company’s direct subsidiary, will redeem one common unit of MarketWise, LLC held by the Company, decreasing the percentage ownership of MarketWise, LLC by the Company and relatively increasing the ownership by the other unitholders. On October 29, 2021, we entered into a Loan and Security Agreement with a syndicate of five banks, providing for a revolving credit facility of up to $150.0 million (the “Credit Facility”). The relevant terms and covenants contained in the new Credit Facility are summarized below: •Provides maximum revolving loans up to $150.0 million, and contains a $5.0 million sub-facility for letters of credit. •Provides for uncommitted incremental revolving commitments or term loans of up to an additional $65 million, subject to obtaining the consent of each lender providing the commitments or loans. •Borrowings under the Credit Facility as a spread to LIBOR will be at a range of 150 bps to 225 bps, and there is an unused commitment fee of 25 bps to 35 bps based on unused capacity. •The Credit Facility has a term of three-years, maturing on October 29, 2024, and is secured by a first priority lien on substantially all of the assets of the Borrower and the Guarantors. •The Credit Facility has two financial covenants, an interest coverage covenant and a leverage covenant, as well as customary affirmative and negative covenants. With HSBC Bank USA, N.A. and BMO Capital Markets Corp. as joint lead arrangers and joint bookrunners, the syndicate bank group includes BMO Harris Bank N.A., Silicon Valley Bank, Wells Fargo Bank, N.A. and PNC Bank National Association. HSBC Bank USA, N.A. is the administrative agent. The Company may use the proceeds of the Credit Facility to finance permitted acquisitions and for working capital and other general corporate purposes. The advances under Credit Facility are subject to conditions customary for facilities of this nature.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Consolidation	Basis of Consolidation The accompanying consolidated financial statements include the accounts of MarketWise and its wholly owned subsidiaries. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated in consolidation. The accompanying statements of operations include expenses for certain functions historically performed by a related party, including general corporate services, such as legal, accounting, treasury, information technology, human resources and administration. These expenses are based primarily on direct usage when identifiable, direct capital expenditures or other relevant allocations during the respective periods. We believe the assumptions underlying the accompanying consolidated financial statements, including the assumptions regarding these expenses from this related party, are reasonable. Actual results may differ from these expenses, assumptions and estimates. The amounts recorded in the accompanying consolidated financial statements are not necessarily indicative of the actual amount of such indirect expenses that would have been recorded had we been a separate independent entity.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying financial statements include, but are not limited to, the fair value of common units, derivatives, warrants, valuation of assets acquired and liabilities assumed in business combinations, useful lives of intangible assets with definite lives, benefit period of deferred contract acquisition costs, determination of standalone selling prices, estimated life of lifetime customers, recoverability of goodwill and long-lived assets, valuation allowances on deferred tax assets, the incremental borrowing rates to calculate lease liabilities and right-of-use (“ROU”) assets and certain accruals. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates.
Segment Information	Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by our chief operating decision-maker (“CODM”) in deciding how to allocate resources and assess performance. Our Chief Executive Officer serves as the CODM. Based on the financial information presented to and reviewed by our CODM in assessing our performance and for the purposes of allocating resources, we have determined our operating subsidiaries represent individual operating segments with similar economic characteristics that meet the criteria for aggregation into a single reporting segment for financial statement purposes. Accordingly, we have a single reportable segment.
Derivative Financial Instruments	Derivative Financial Instruments From time to time, we utilize instruments which may contain embedded derivative instruments as part of our overall strategy to compensate and retain key employees and independent contractors (see Derivative Financial Instruments note below for additional information). Our derivative instruments are recorded at fair value on the consolidated balance sheets. Our derivative instruments have not been designated as hedges; therefore, both realized and unrealized gains and losses are recognized in earnings. For the purposes of cash flow presentation, realized and unrealized gains or losses are included within cash flows from operating activities. Upfront cash payments received upon the issuance of derivative instruments are included within cash flows from financing activities within the consolidated statements of cash flows.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expenses are included in cost of revenue, sales and marketing, and general and administrative expenses in a manner consistent with the employee’s salary and benefits in the consolidated statements of operations. 2021 Incentive Award Plan On July 21, 2021, the MarketWise, Inc. 2021 Incentive Award Plan (the “2021 Incentive Award Plan”) became effective. MarketWise has reserved a total of 32,045,000 shares of MarketWise Class A common stock for issuance pursuant to the 2021 Incentive Award Plan and the maximum number of shares that may be issued pursuant to the exercise of incentive stock options granted under the 2021 Incentive Award Plan is 32,045,000, in each case, subject to certain adjustments set forth therein. See also Note 9, Stock-Based Compensation. The 2021 Incentive Award Plan provides for the grant of stock options, including incentive stock options, or ISOs, and nonqualified stock options, or NSOs; restricted stock; restricted stock units, or RSUs; stock appreciation rights, or SARs; and other stock or cash-based awards. Equity-based compensation with service conditions made to employees is measured based on the grant date fair value of the awards and recognized as compensation expense over the period during which the recipient is required to perform services in exchange for the award (the requisite service period). We have elected to use a straight-line attribution method for recognizing compensation costs relating to awards that have service conditions only. Forfeitures are recorded as they occur. Class B Units As more fully described above, we completed our Transactions in July 2021, and all Class B Units fully vested as of the transaction date, and the original operating agreement was terminated and replaced by a new operating agreement consistent with the Company’s Up-C structure. This new operating agreement does not contain the put and call options that existed under the previous operating agreement, and the Common Units are treated as common equity under the new operating agreement and do not generate stock-based compensation expense. Prior to the Transactions, under the old operating agreement, and as part of our compensation and retention strategy, we granted incentive compensation units (“Class B Units”) to certain key employees, which are profit interests for United States federal income tax purposes. The Class B Units were accounted for as a substantive class of equity and allowed the recipient to realize value only to the extent that the value of the award appreciated. The Class B Units contained service-based vesting conditions and had different vesting terms depending upon the employee which ranged from vesting immediately to eight years; vesting was accelerated upon the completion of the Transactions. Compensation cost was recognized on a straight-line basis over the requisite service period until vesting for the entire award, but at least equaled the number of vested units determined by the underlying vesting schedule. Forfeitures were accounted for in the period in which they occur. The Class B Units were subject to a put and call option whereby we could elect to redeem or be required to redeem these units at a value determined by a predefined formula based on a multiplier of our net income as defined by management. Employees may not exercise the put option until 25 months have elapsed from the issuance date. Since the redemption price is not representative of fair value, the employees are not considered to be subject to the risks and rewards of share ownership, and the Class B Units were classified as liabilities in the accompanying consolidated balance sheet. Prior to the completion of the Transactions, the liability for Class B units was remeasured to fair value at the end of each reporting period. Since Class B Units were classified as liabilities, all cash distributions made to the unitholders of the Class B Units pursuant to our operating agreement were considered to be stock-based compensation expenses. Upon consummation of the Transactions, the old operating agreement was terminated and a new operating agreement was adopted. This new operating agreement does not contain the put and call options that existed under the previous operating agreement, and the Common Units are treated as common equity under the new operating agreement and do not generate stock-based compensation expense.
Fair Value Measurement	Fair Value Measurement Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amount of our financial instruments, including accounts receivable, trade and other payables, accrued expenses and related party receivables and payables, approximate their respective fair values because of their short maturities. The fair value of stock-based compensation liabilities for Class B Units, the derivatives liabilities associated with our deferred compensation arrangements, and the derivative warrant liabilities were determined using unobservable Level 3 inputs. We have not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted.
Warrant Liability	Warrant Liability Warrants are accounted for as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. As of September 30, 2021, all of our warrants are classified as liabilities.
Income Taxes	Income Taxes Prior to the Transactions, we were a pass-through entity for income tax purposes. Subsequent to the Transactions, the portion of earnings allocable to MarketWise, Inc. is subject to corporate level tax rates at the federal, state and local levels. Therefore, the amount of income taxes recorded prior to the Transaction are not representative of the expenses expected in the future. The computation of the effective tax rate and provision at each interim period requires the use of certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income that is subject to tax, permanent differences between our GAAP earnings and taxable income, and the likelihood of recovering deferred tax assets existing as of the balance sheet date. The estimates used to compute the provision for income taxes may change throughout the year as new events occur, additional information is obtained or as tax laws and regulations change. Accordingly, the effective tax rate for future interim periods may vary materially. We account for income taxes pursuant to the asset and liability method which requires us to recognize current tax liabilities or receivables for the amount of taxes we estimate are payable or refundable for the current year, deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in our income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents a potential future obligation to the taxing authority for a tax position that was not recognized. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable and are recognized as general and administrative expenses.
Tax Receivable Agreement Obligation	Tax Receivable Agreement Obligation In connection with the Transactions, concurrently with the Closing, we have entered into Tax Receivable Agreements (“TRA”) with owners of MarketWise, LLC prior to the Transactions (the “TRA Parties”). The TRAs generally provide for the payment by us to the TRA Parties of 85% of the cash tax benefits, if any, that we are deemed to realize as a result of tax basis adjustments as a result of sales and exchanges of units of MarketWise, LLC in connection with, or following the Transactions, and certain distributions with respect to units. These tax basis adjustments generated over time may increase (for tax purposes) the depreciation and amortization deductions available to us and, therefore, may reduce the amount of U.S. federal, state and local tax that we would otherwise be required to pay in the future, although the IRS may challenge all or part of the validity of that tax basis, and a court could sustain such challenge. The tax basis adjustments upon sales or exchanges of units for shares of Class A Common Stock and certain distributions with respect to Class A LLC Units may also decrease gains (or increase losses) on future dispositions of certain assets to the extent tax basis is allocated to those assets. Actual tax benefits realized by us may differ from tax benefits calculated under the Tax Receivable Agreements as a result of the use of certain assumptions in the TRAs, including the use of an assumed weighted average state and local income tax rate to calculate tax benefits. The payments that we may make under the TRAs are expected to be substantial. We account for the effects of these increases in tax basis and associated payments under the TRAs if and when exchanges occur as follows: a.recognizes a contingent liability for the TRA obligation when it is deemed probable and estimable, with a corresponding adjustment to additional paid-in-capital, based on the estimate of the aggregate amount that MarketWise, Inc. will pay; b.records an increase in deferred tax assets for the estimated income tax effects of the increases in tax basis based on enacted federal and state tax rates at the date of the exchange; c.to the extent we estimate that we will not realize the full benefit represented by the deferred tax asset, based on an analysis that will consider, among other things, our expectation of future earnings, we reduce the deferred tax asset with a valuation allowance; and, d.The effects of changes in any of the estimates and subsequent changes in the enacted tax rates after the initial recognition will be included in our net income. As of September 30, 2021, there has been no exchange of MarketWise, LLC units and therefore no TRA liability has been recognized.
Earnout Shares	Earnout Shares Pursuant to the Transaction Agreement, at the closing of the Transactions, we placed 3,051,000 shares of MarketWise, Inc. Class A Common Stock into escrow to be released to the Sponsor if certain conditions are met. In addition, certain management members of the Company will be allocated from time to time up to 2,000,000 shares of Class A Common Stock in aggregate, with shares to be placed in escrow upon allocation, and released at any time during a four-year period following closing of the Transaction, if certain conditions are met. The sponsor and management earnout shares will be released as follows: 1) 50% when the volume weighted average price (the “VWAP) of Class A Common Stock is greater than or equal to $12.00 for a period of at 20 trading days within a consecutive 30-trading-day period, or based on the per share equity value in a transaction in which our shareholders sell their shares; and 2) 50% when the volume weighted average price (the “VWAP) of Class A Common Stock is greater than or equal to $14.00 for a period of at 20 trading days within a consecutive 30-trading-day period, or based on the per share equity value in a transaction in which our shareholders sell their shares. The sponsor and management earnout shares are classified as equity transactions at initial issuance and at settlement when the release conditions are met. Until the shares are issued and released, the earnout shares are not included in shares outstanding. The earnout shares are not considered stock-based compensation. As of the transaction date, the sponsor and management earnout shares had a fair value of $26.0 million.
Noncontrolling Interest	Noncontrolling Interest Noncontrolling interest represents the Company’s noncontrolling interest in consolidated subsidiaries which are not attributable, directly or indirectly, to the controlling Class A Common Stock ownership of the Company. The Transactions occurred on July 21, 2021. As a result, net income (loss) for the three months ended September 30, 2021 was attributed to the pre-Transaction period from July 1, 2021 through July 21, 2021 and to the post-Transaction period from July 22, 2021 through September 30, 2021. During the pre-Transaction period, net income (loss) was attributable to consolidated MarketWise, LLC and its respective noncontrolling interests. During the post-Transaction period, net income was attributable to consolidated MarketWise, Inc. and its respective noncontrolling interests. Following the Transactions, MarketWise, Inc.’s ownership percentage in MarketWise, LLC’s controlling and noncontrolling interests was 7.9% and 92.1%, respectively. For the post-Transaction period, net income attributable to controlling interests included a $9.9 million gain on derivative warrant liabilities and a $3.1 million tax provision, both of which are 100% attributable to the controlling interest.
Earnings Per Share	Earnings Per Share Basic net income per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding after the closing of the Transactions. Diluted net income per share is based on the weighted average number of shares of Class A Common Stock issued and outstanding and the effect of all dilutive common stock equivalents and potentially dilutive share based compensation awards outstanding during the period after the closing of the Transactions.

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue


	Three Months Ended September 30, 2021
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	139,831	$	—	$	—	$	—	$	139,831
Transferred at a point in time	—		423		245		168		836
Total	$	139,831	$	423	$	245	$	168	$	140,667


	Three Months Ended September 30, 2020
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	95,763	$	—	$	—	$	—	$	95,763
Transferred at a point in time	—		437		1,041		918		2,396
Total	$	95,763	$	437	$	1,041	$	918	$	98,159


	Nine Months Ended September 30, 2021
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	398,362	$	—	$	—	$	—	$	398,362
Transferred at a point in time	—		1,968		864		1,317		4,149
Total	$	398,362	$	1,968	$	864	$	1,317	$	402,511


	Nine Months Ended September 30, 2020
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	251,685	$	—	$	—	$	—	$	251,685
Transferred at a point in time	—		1,443		2,479		1,729		5,651
Total	$	251,685	$	1,443	$	2,479	$	1,729	$	257,336

Revenue recognition by subscription type was as follows:


	Three Months Ended September 30,	Nine Months Ended September 30,
		2021		2020		2021		2020
Lifetime subscriptions		$	50,862	$	35,005	$	140,893	$	97,093
Term subscriptions		88,970		60,759		257,470		154,593
Non-subscription revenue		835		2,395		4,148		5,650
Total		$	140,667	$	98,159	$	402,511	$	257,336

Revenue for the Lifetime 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.

Net revenue by principal geographic areas was as follows:


	Three Months Ended September 30,	Nine Months Ended September 30,
		2021		2020		2021		2020
United States		$	139,998	$	97,369	$	400,871	$	255,142
International		669		790		1,640		2,194
Total		$	140,667	$	98,159	$	402,511	$	257,336

Summary of Contract Balances

Accounts receivable, deferred revenue and obligation for refunds are as follows:


	As of
	September 30, 2021		December 31, 2020
Contract balances
Accounts receivable	$	6,817	$	12,398
Obligations for refunds	$	5,403	$	3,448
Deferred revenue – current	$	332,783	$	274,819
Deferred revenue – non-current	$	366,676	$	254,481

Capitalized Contract Cost

The following table presents the opening and closing balances of our capitalized costs associated with contracts with customers:














Balance at January 1, 2021	$	107,236
Royalties and sales commissions – additions	55,502
Revenue share and cost per acquisition fees – additions	77,437
Amortization of capitalized costs	(50,889)
Balance at September 30, 2021	$	189,286

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:


Cash	$	151
Other current assets	152
Customer relationships	3,664
Tradenames	657
Software	247
Goodwill	5,237
Other noncurrent assets	443
Total assets acquired	10,551
Liabilities assumed	(2,451)
Net assets acquired	$	8,100

Cash consideration	$	7,290
Noncontrolling interest	810
Total consideration	$	8,100

Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amounts of goodwill are as follows:





Balance at January 1, 2021	$	18,101
Acquisition of Chaikin	5,237
Balance at September 30, 2021	$	23,338

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net consisted of the following as of the dates indicated:


	September 30, 2021
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	12,369	$	(7,799)	$	4,570	4.6
Tradenames	3,578		(1,739)		$	1,839	5.5
Capitalized software development costs	2,842		(1,240)		1,602		3.1
Finite-lived intangible assets, net	18,789		(10,778)		8,011

Indefinite-lived intangible assets:
Cryptocurrencies	—		—		—
Internet domain names	1,085		—		1,085
Indefinite-lived intangible assets, net	1,085		—		1,085
Intangible assets, net	$	19,874	$	(10,778)	$	9,096


	December 31, 2020
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	8,705	$	(6,675)	$	2,030	2.7
Tradenames	2,921		(1,433)		1,488		4.9
Capitalized software development costs	2,495		(934)		1,561		3.8
Finite-lived intangible assets, net	14,121		(9,042)		5,079

Indefinite-lived intangible assets:
Cryptocurrencies	4		—		4
Internet domain names	195		—		195
Indefinite-lived intangible assets, net	199		—		199
Intangible assets, net	$	14,320	$	(9,042)	$	5,278

Schedule of Finite-Lived Intangible Assets

Intangible assets, net consisted of the following as of the dates indicated:


	September 30, 2021
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	12,369	$	(7,799)	$	4,570	4.6
Tradenames	3,578		(1,739)		$	1,839	5.5
Capitalized software development costs	2,842		(1,240)		1,602		3.1
Finite-lived intangible assets, net	18,789		(10,778)		8,011

Indefinite-lived intangible assets:
Cryptocurrencies	—		—		—
Internet domain names	1,085		—		1,085
Indefinite-lived intangible assets, net	1,085		—		1,085
Intangible assets, net	$	19,874	$	(10,778)	$	9,096


	December 31, 2020
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	8,705	$	(6,675)	$	2,030	2.7
Tradenames	2,921		(1,433)		1,488		4.9
Capitalized software development costs	2,495		(934)		1,561		3.8
Finite-lived intangible assets, net	14,121		(9,042)		5,079

Indefinite-lived intangible assets:
Cryptocurrencies	4		—		4
Internet domain names	195		—		195
Indefinite-lived intangible assets, net	199		—		199
Intangible assets, net	$	14,320	$	(9,042)	$	5,278

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of September 30, 2021, the total expected future amortization expense for finite-lived intangible assets is as follows:


Remainder of 2021	$	515
2022	2,116
2023	1,953
2024	1,460
2025	1,005
Thereafter	962
Finite-lived intangible assets, net	$	8,011

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of the dates indicated:


	September 30, 2021
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	42,800	$	—	$	—	$	42,800
Total assets	42,800		—		—		42,800
Liabilities:
Derivative liabilities, current	—		—		547		547
Derivative liabilities, noncurrent	—		—		2,205		2,205

Derivative warrant liabilities - Public Warrants	23,402		—		—		23,402
Derivative warrant liabilities - Private Placement Warrants	—		—		11,667		11,667
Total liabilities	$	23,402	$	—	$	14,419	$	37,821


	December 31, 2020
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	25,016	$	—	$	—	$	25,016
Total assets	25,016		—		—		25,016
Liabilities:
Derivative liabilities, noncurrent	—		—		4,343		4,343
Class B Units - related party	—		—		593,235		593,235
Total liabilities	$	—	$	—	$	597,578	$	597,578

Schedule of Fair Value Measurements Inputs

The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates:


	As of
	September 30, 2021
Stock price	$	8.26
Exercise Price	$	11.50
Expected life of the warrants to convert (years)	4.81
Volatility	27.80		%
Risk-free rate	0.93		%

Schedule of Changes in Fair Value of Liabilities

The following table summarizes the change in fair value of the derivative liabilities during the nine months ended September 30, 2021 and 2020:


















Balance at January 1, 2021	$	597,578
Incremental Class B Units	206,914
Establishment of derivative warrant liabilities on July 21, 2021 (date of the Transactions)	45,021
Change in fair value of derivative instruments	(11,543)
Change in fair value of Class B Units	728,079
Reclassification of Class B Units from liability to equity on July 21, 2021 (date of the Transactions)	$	(1,528,228)
Balance at September 30, 2021	$	37,821

Balance at January 1, 2020	$	119,307
Incremental Class B Units	13,398
Change in fair value of derivative instruments	1,874
Change in fair value of Class B Units	113,866
Balance at September 30, 2020	$	248,445

Schedule of Changes in Fair Value by Income Statement Location

The following table summarizes the change in fair value of the Class B Units by income statement line item during the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of revenue	$	24,028	$	12,167	$	136,417	$	22,052
Sales and marketing	2,607		943		10,870		1,965
General and administrative	102,911		50,960		580,792		89,849
Total change in fair value of Class B Units	$	129,546	$	64,070	$	728,079	$	113,866

Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consists of the following:


		As of
	Estimated Useful Lives	September 30, 2021		December 31, 2020
Furniture and fixtures	5 years	$	960	$	960
Computers, software and equipment	3 years	1,338		1,220
Leasehold improvements	Shorter of estimated useful life or remaining term of lease	1,278		1,278
		3,576		3,458
Less: Accumulated depreciation and amortization		(2,381)		(2,041)
Total property and equipment, net		$	1,195	$	1,417

Schedule of Accrued Expenses

Accrued expenses consist of the following:


	As of
	September 30, 2021		December 31, 2020
Commission and variable compensation	$	42,661	$	17,271
Payroll and benefits	4,505		3,645

Other accrued expenses	16,151		11,218
Total accrued expenses	$	63,317	$	32,134

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The following table presents information on the location and amounts of derivative instruments gains and losses:


		Three Months Ended September 30,	Nine Months Ended September 30,
			2021		2020		2021		2020
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income Statement
Warrants	Other income, net		$	9,952	$	—	$	9,952	$	—
Phantom Interests in Net Income	Other income, net		—		(877)		—		(1,874)
Phantom Interests in Net Income	General and administrative		(250)		—		2,138		—
Option	General and administrative		115		—		(547)		—
Total			$	9,817	$	(877)	$	11,543	$	(1,874)

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Fair Value Measurements Inputs

The fair value of the SARs was determined using a Black-Scholes model using the following assumptions:


	As of
	September 30, 2021
Volatility	50.0		%
Stock price	$	8.30
Strike price	$	8.30
Expected life of the options to convert (years)	6.25
Risk-free rate	1.20		%
Dividend yield	0.0		%

Summary of Activities of RSUs


	Fully Vested Shares	RSUs	SARs
Outstanding at January 1, 2021	—	—	—
Granted	309,500	2,334,490	1,935,131
Exercised or vested	(309,500)	—	—
Forfeited	—	—	—
Expired	—	—	—
Outstanding at September 30, 2021	—	2,334,490	1,935,131


	As of
	September 30, 2021
Fully vested shares	$	8.30
RSUs	$	8.30
SARs	$	4.05

Summary of Activities of SARs


	Fully Vested Shares	RSUs	SARs
Outstanding at January 1, 2021	—	—	—
Granted	309,500	2,334,490	1,935,131
Exercised or vested	(309,500)	—	—
Forfeited	—	—	—
Expired	—	—	—
Outstanding at September 30, 2021	—	2,334,490	1,935,131


	As of
	September 30, 2021
Fully vested shares	$	8.30
RSUs	$	8.30
SARs	$	4.05

Summary of Stock-Based Compensation Expense

The amount of stock-based compensation expense related to the Class B Units included in each of the line items in the accompanying consolidated statement of operations is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of revenue	$	45,618	$	13,717	$	170,536	31,943
Sales and marketing	31,507		943		46,417		3,168
General and administrative	332,797		58,791		841,489		137,464
Total stock based-compensation expense	$	409,922	$	73,451	$	1,058,442	$	172,575

Schedule of Unvested Share Activity

The following is a rollforward of Class B Units activity for the nine months ended September 30, 2021:










Unvested at January 1, 2021			75,044
Granted			17,690
Vested			(92,734)
Unvested at September 30, 2021			—

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the period from July 22, 2021 through September 30, 2021:




Numerator:
Net income for the period from July 22, 2021 through September 30, 2021	$	42,847
Less: Net income attributable to noncontrolling interests for the period from July 22, 2021 through September 30, 2021	33,167
Net income for the period from July 22, 2021 through September 30, 2021 attributable to common shareholders, basic and dilutive	$	9,680

Denominator:
Weighted average shares outstanding, basic and diluted (in thousands)	$	24,963

Net income per share attributable to common shares, basic and diluted	$	0.39

Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2021

Variable Interest Entities [Abstract]

Schedule of Variable Interest Entities

The following represents financial information for the consolidated VIE included in the consolidated balance sheets:


	As of
	September 30, 2021		December 31, 2020
Current assets	$	1,048	$	3,787
Noncurrent assets	5		22
Total assets	$	1,053	$	3,809

Current liabilities	$	564	$	3,265
Noncurrent liabilities	—		—
Total liabilities	$	564	$	3,265

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Cash Flow, Supplemental Disclosures

Supplemental cash flow disclosures are as follows:


	Nine Months Ended September 30,
		2021		2020
Supplemental Disclosures of Cash Flow Information:

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	(1,317)	$	(2,389)
Operating lease right-of-use assets obtained in exchange for lease obligations		—		409
Operating lease right-of-use assets obtained in exchange for lease obligations from acquisitions		(398)		—




		As of September 30,
		2021		2020
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents		$	137,588	$	155,089
Restricted cash		500		504
Total		$	138,088	$	155,593

Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Stock by Class


	Authorized	Issued	Outstanding
Common Stock - Class A	950,000,000	25,152,469	25,152,469
Common Stock - Class B	300,000,000	291,092,303	291,092,303
Preferred Stock	100,000,000	—	—
Total	1,350,000,000	316,244,772	316,244,772

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Organization (Details) $ / shares in Units, $ in Thousands	Jul. 21, 2021 USD ($) $ / shares shares	Sep. 30, 2021 $ / shares shares	Jul. 22, 2021 shares
Subsidiary, Sale of Stock [Line Items]
Recapitalization exchange ratio	1
Number of shares called by each warrant	1
Recapitalization units exchange ratio, shares (in shares)	1
Recapitalization units exchange ratio, warrants (in shares)	0.5
Reverse recapitalization, common units issued (in shares)	28,003,096
Warrants issued (in shares)	30,979,993
PIPE Investors shares subscribed (in shares)	15,000,000
Sale of stock price per share (in USD per share) \| $ / shares	$ 10.00
Consideration received \| $	$ 150,000
Sponsor Earn Out Shares (in shares)	3,051,000
Warrants outstanding (in shares)	30,979,993
Reverse Recapitalization cash proceeds \| $	$ (113,291)
Proceeds from recapitalization, reclassification of Trust Account \| $	414,300
Proceeds from PIPE investment \| $	150,000
Payment of non-recurring transaction costs \| $	48,800
Settlement of deferred underwriters' discount \| $	14,500
Payments to redeeming shareholders \| $	387,700
Establishment of derivative warrant liabilities \| $	45,021
Establishment of deferred taxes \| $	$ 10,056
Sponsor
Subsidiary, Sale of Stock [Line Items]
Sponsor Earn Out Shares (in shares)	3,051,000
Private Warrants
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding (in shares)	10,280,000
Ascendant Digital Acquisition Corp Public Shareholders \| MarketWise, Inc.
Subsidiary, Sale of Stock [Line Items]
Ownership percentage	0.10%
MarketWise Members \| MarketWise, Inc.
Subsidiary, Sale of Stock [Line Items]
Ownership percentage	91.20%
Ascendant Sponsor LP \| MarketWise, Inc.
Subsidiary, Sale of Stock [Line Items]
Ownership percentage	3.20%
PIPE Investors \| MarketWise, Inc.
Subsidiary, Sale of Stock [Line Items]
Ownership percentage	4.70%
Common Stock - Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (USD per share) \| $ / shares	$ 0.0001	$ 0.0001
Common stock, outstanding (in shares)	15,000,000	25,152,469	28,003,096
Common Stock - Class A \| Ascendant Digital Acquisition Corp.
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (USD per share) \| $ / shares	$ 0.0001
Common Stock - Class B
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (USD per share) \| $ / shares	$ 0.0001	$ 0.0001
Stock issued during reverse recapitalization (in shares)	291,092,303
Common stock, outstanding (in shares)	291,092,303	291,092,303

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 21, 2021 USD ($) tradingDay $ / shares shares	Jul. 21, 2021 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)
Significant Accounting Policies [Line Items]
Number of reportable segments \| segment					1
Common stock reserved for issuance (in shares)	32,045,000	32,045,000
Maximum number of shares that may be issued (in shares)	32,045,000	32,045,000
Sponsor Earn Out Shares (in shares)	3,051,000	3,051,000
Earnout period	4 years
Earnout fair value \| $	$ 26,000	$ 26,000
Gain on derivative warrant liabilities \| $		9,900
Income tax provision \| $		$ 3,100	$ 3,085	$ 0	$ 3,085	$ 0
Marketwise, LLC
Significant Accounting Policies [Line Items]
Ownership percentage	7.90%	7.90%
Noncontrolling interest ownership percentage	92.10%	92.10%
Earnout period one
Significant Accounting Policies [Line Items]
Earnout shares percentage released	50.00%
VWAP threshold (in USD per share) \| $ / shares	$ 12.00
VWAP trading days threshold \| tradingDay	20
VWAP consecutive trading days threshold \| tradingDay	30
Earnout period two
Significant Accounting Policies [Line Items]
Earnout shares percentage released	50.00%
VWAP threshold (in USD per share) \| $ / shares	$ 14.00
VWAP trading days threshold \| tradingDay	20
VWAP consecutive trading days threshold \| tradingDay	30
Sponsor
Significant Accounting Policies [Line Items]
Sponsor Earn Out Shares (in shares)	3,051,000	3,051,000
Management members
Significant Accounting Policies [Line Items]
Sponsor Earn Out Shares (in shares)	2,000,000	2,000,000
Common Stock - Class B
Significant Accounting Policies [Line Items]
Vesting period					8 years
Exercise of put option, period from issuance date					25 months

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Net revenue	$ 140,422	$ 97,118	$ 401,647	$ 254,857
Related party revenue	245	1,041	864	2,479
Total net revenue	140,667	98,159	402,511	257,336
United States
Disaggregation of Revenue [Line Items]
Total net revenue	139,998	97,369	400,871	255,142
International
Disaggregation of Revenue [Line Items]
Total net revenue	669	790	1,640	2,194
Lifetime subscriptions
Disaggregation of Revenue [Line Items]
Total net revenue	50,862	35,005	140,893	97,093
Term subscriptions
Disaggregation of Revenue [Line Items]
Total net revenue	88,970	60,759	257,470	154,593
Non-subscription revenue
Disaggregation of Revenue [Line Items]
Total net revenue	835	2,395	4,148	5,650
Transferred over time
Disaggregation of Revenue [Line Items]
Related party revenue	0	0	0	0
Total net revenue	139,831	95,763	398,362	251,685
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total net revenue	836	2,396	4,149	5,651
Subscriptions
Disaggregation of Revenue [Line Items]
Net revenue	139,831	95,763	398,362	251,685
Subscriptions \| Transferred over time
Disaggregation of Revenue [Line Items]
Net revenue	139,831	95,763	398,362	251,685
Subscriptions \| Transferred at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Advertising
Disaggregation of Revenue [Line Items]
Net revenue	423	437	1,968	1,443
Advertising \| Transferred over time
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Advertising \| Transferred at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	423	437	1,968	1,443
Revenue Share (Third-party)
Disaggregation of Revenue [Line Items]
Net revenue	168	918	1,317	1,729
Revenue Share (Third-party) \| Transferred over time
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Revenue Share (Third-party) \| Transferred at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	$ 168	$ 918	$ 1,317	$ 1,729

Revenue Recognition - Summary of Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 6,817	$ 12,398
Obligations for refunds	5,403	3,448
Deferred revenue – current	332,783	274,819
Deferred revenue – non-current	$ 366,676	$ 254,481

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract liability, revenue recognized	$ 63,960	$ 43,107	$ 240,638	$ 156,084
Accounts receivable	6,817		6,817		$ 12,398
Impairment on capitalized costs	0	$ 0	0	$ 0
Remaining performance obligation	$ 704,862		$ 704,862
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, percentage	47.00%		47.00%
Remaining performance obligation, timing of satisfaction	12 months		12 months
Disaggregation of Revenue [Line Items]
Remaining performance obligation, timing of satisfaction	12 months		12 months

Revenue Recognition - Capitalized Service Contract Costs (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Capitalized Contract Cost [Roll Forward]
Capitalized costs, beginning balance	$ 107,236
Royalties and sales commissions – additions	55,502
Revenue share and cost per acquisition fees – additions	77,437
Amortization of capitalized costs	(50,889)
Capitalized costs, ending balance	$ 189,286

Acquisitions - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Thousands	Jan. 21, 2021	Jan. 05, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Cash paid for acquisitions, net of cash acquired	$ 7,139				$ 7,139	$ 0
Amortization of intangible assets			$ 513	$ 529	1,736	$ 1,575
Chaikin Holdings LLC.
Business Acquisition [Line Items]
Percentage of interests acquired	90.00%
Amortization of intangible assets			115		477
Total consideration, up to	$ 8,100
Chaikin Holdings LLC. \| Tradenames
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (years)	8 years 6 months
Chaikin Holdings LLC. \| Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (years)	6 years
TradeSmith
Business Acquisition [Line Items]
Percentage of interests acquired		25.00%
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition, percentage		100.00%
Total consideration, up to		$ 9,164
Business acquisition, transaction costs			$ 164		$ 164

Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jan. 21, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 23,338	$ 18,101
Chaikin Holdings LLC.
Business Acquisition [Line Items]
Cash	$ 151
Other current assets	152
Goodwill	5,237
Other noncurrent assets	443
Total assets acquired	10,551
Liabilities assumed	(2,451)
Net assets acquired	8,100
Cash consideration	7,290
Noncontrolling interest	810
Total purchase price	8,100
Chaikin Holdings LLC. \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles	3,664
Chaikin Holdings LLC. \| Tradenames
Business Acquisition [Line Items]
Finite-lived intangibles	657
Chaikin Holdings LLC. \| Capitalized software development costs
Business Acquisition [Line Items]
Finite-lived intangibles	$ 247

Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 18,101
Acquisition	5,237
Goodwill, ending balance	$ 23,338

Goodwill and Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Cost	$ 18,789	$ 14,121
Accumulated Amortization	(10,778)	(9,042)
Net Book Value	8,011	5,079
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets	1,085	199
Cost	19,874	14,320
Intangible assets, net	9,096	5,278
Cryptocurrencies
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets	0	4
Internet domain names
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets	1,085	195
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Cost	12,369	8,705
Accumulated Amortization	(7,799)	(6,675)
Net Book Value	$ 4,570	$ 2,030
Weighted-Average Remaining Useful Life (in years)	4 years 7 months 6 days	2 years 8 months 12 days
Tradenames
Finite-Lived Intangible Assets, Net [Abstract]
Cost	$ 3,578	$ 2,921
Accumulated Amortization	(1,739)	(1,433)
Net Book Value	$ 1,839	$ 1,488
Weighted-Average Remaining Useful Life (in years)	5 years 6 months	4 years 10 months 24 days
Capitalized software development costs
Finite-Lived Intangible Assets, Net [Abstract]
Cost	$ 2,842	$ 2,495
Accumulated Amortization	(1,240)	(934)
Net Book Value	$ 1,602	$ 1,561
Weighted-Average Remaining Useful Life (in years)	3 years 1 month 6 days	3 years 9 months 18 days

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 513	$ 529	$ 1,736	$ 1,575
Amortization of capitalized software development costs	$ 103	$ 104	306	$ 311
Additions to capitalized software development costs			347
Acquired software development costs			$ 247

Goodwill and Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 515
2022	2,116
2023	1,953
2024	1,460
2025	1,005
Thereafter	962
Net Book Value	$ 8,011	$ 5,079

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Jul. 21, 2021	Dec. 31, 2020
Liabilities:
Derivative liabilities, current	$ 547		$ 0
Derivative warrant liabilities	35,069		0
Other
Liabilities:
Liabilities, noncurrent	2,205		4,343
Class B Units
Liabilities:
Liabilities, noncurrent	0		593,235
Recurring
Assets:
Total assets	42,800		25,016
Liabilities:
Total liabilities	37,821		597,578
Recurring \| Public Warrants
Liabilities:
Derivative warrant liabilities	23,402
Recurring \| Private Warrants
Liabilities:
Derivative warrant liabilities	11,667
Recurring \| Other
Liabilities:
Derivative liabilities, current	547
Liabilities, noncurrent	2,205		4,343
Recurring \| Class B Units
Liabilities:
Liabilities, noncurrent			593,235
Recurring \| Money market funds
Assets:
Money market funds	42,800		25,016
Level 1 \| Recurring
Assets:
Total assets	42,800		25,016
Liabilities:
Total liabilities	23,402		0
Level 1 \| Recurring \| Public Warrants
Liabilities:
Derivative warrant liabilities	23,402
Level 1 \| Recurring \| Private Warrants
Liabilities:
Derivative warrant liabilities	0
Level 1 \| Recurring \| Other
Liabilities:
Derivative liabilities, current	0
Liabilities, noncurrent	0		0
Level 1 \| Recurring \| Class B Units
Liabilities:
Liabilities, noncurrent			0
Level 1 \| Recurring \| Money market funds
Assets:
Money market funds	42,800		25,016
Level 2 \| Recurring
Assets:
Total assets	0		0
Liabilities:
Total liabilities	0		0
Level 2 \| Recurring \| Public Warrants
Liabilities:
Derivative warrant liabilities	0
Level 2 \| Recurring \| Private Warrants
Liabilities:
Derivative warrant liabilities	0
Level 2 \| Recurring \| Other
Liabilities:
Derivative liabilities, current	0
Liabilities, noncurrent	0		0
Level 2 \| Recurring \| Class B Units
Liabilities:
Liabilities, noncurrent			0
Level 2 \| Recurring \| Money market funds
Assets:
Money market funds	0		0
Level 3 \| Recurring
Assets:
Total assets	0		0
Liabilities:
Total liabilities	14,419		597,578
Level 3 \| Recurring \| Public Warrants
Liabilities:
Derivative warrant liabilities	0
Level 3 \| Recurring \| Private Warrants
Liabilities:
Derivative warrant liabilities	11,667
Level 3 \| Recurring \| Other
Liabilities:
Derivative liabilities, current	547
Liabilities, noncurrent	2,205		4,343
Level 3 \| Recurring \| Class B Units
Liabilities:
Liabilities, noncurrent		$ 45,021	593,235
Level 3 \| Recurring \| Money market funds
Assets:
Money market funds	$ 0		$ 0

Fair Value Measurements - Schedule of Fair Value Measurements Inputs (Details)	Sep. 30, 2021
Stock price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	8.26
Exercise Price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	11.50
Expected life of warrants to convert
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	4.81
Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.2780
Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0093

Fair Value Measurements - Schedule of Changes in Fair Value of Derivative Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 597,578	$ 119,307
Incremental Class B Units	206,914	13,398
Establishment of derivative warrant liabilities on July 21, 2021 (date of the Transactions)	45,021
Reclassification of Class B Units from liability to equity on July 21, 2021 (date of the Transactions)	(1,528,228)
Ending balance	37,821	248,445
Other
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value	(11,543)	1,874
Class B Units
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value	$ 728,079	$ 113,866

Fair Value Measurements - Schedule of Fair Value Changes by Income Statement Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total change in fair value of Class B Units			$ (728,079)	$ (113,866)
Common Stock - Class B
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total change in fair value of Class B Units	$ 129,546	$ 64,070	728,079	113,866
Cost of revenue \| Common Stock - Class B
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total change in fair value of Class B Units	24,028	12,167	136,417	22,052
Sales and marketing \| Common Stock - Class B
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total change in fair value of Class B Units	2,607	943	10,870	1,965
General and administrative \| Common Stock - Class B
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total change in fair value of Class B Units	$ 102,911	$ 50,960	$ 580,792	$ 89,849

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,576		$ 3,576		$ 3,458
Less: Accumulated depreciation and amortization	(2,381)		(2,381)		(2,041)
Property and equipment, net	1,195		1,195		1,417
Depreciation expense	116	$ 111	340	$ 337
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	960		$ 960		960
Estimated Useful Lives			5 years
Computers, software and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,338		$ 1,338		1,220
Estimated Useful Lives			3 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,278		$ 1,278		$ 1,278

Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Commission and bonus	$ 42,661	$ 17,271
Payroll and benefits	4,505	3,645
Other accrued expenses	16,151	11,218
Accrued expenses	$ 63,317	$ 32,134

Derivative Financial Instruments - Schedule of Location and Amounts and Derivative Instruments Gains and Losses (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative [Line Items]
Derivative gains (losses)	$ 9,817	$ (877)	$ 11,543	$ (1,874)
Other income, net \| Warrants
Derivative [Line Items]
Derivative gains (losses)	9,952	0	9,952	0
Other income, net \| Phantom Interests in Net Income
Derivative [Line Items]
Derivative gains (losses)	0	(877)	0	(1,874)
General and administrative \| Phantom Interests in Net Income
Derivative [Line Items]
Derivative gains (losses)	(250)	0	2,138	0
General and administrative \| Option
Derivative [Line Items]
Derivative gains (losses)	$ 115	$ 0	$ (547)	$ 0

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended
	Sep. 27, 2021	Jul. 20, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jul. 21, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants, net of withholding taxes (in shares)	200,373
Compensation expense			$ 412,565	$ 73,451	$ 1,061,085	$ 172,575
Common unit, outstanding (in shares)								547,466
Stock price (USD per share)							$ 10
Total Class B stock-based compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			409,922	73,451	1,058,442	172,575
RSU and SAR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 74		$ 74
Vesting period					4 years
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock (in shares)					1,935,131
Remaining contractual term					10 years
Stock price (USD per share)			$ 8.30		$ 8.30
Common Stock - Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock (in shares)					17,690
Compensation expense			$ 117,342	$ 7,241	$ 123,449	$ 45,311
Vesting period					8 years
Common unit, outstanding (in shares)		589,465
Conversion of Common Units (in shares)		152,822,842
Incremental compensation expense					$ 292,580
Weighted-average grant date fair value (in dollars per share)					$ 2,195.16	$ 178.69
Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period to each employee (in shares)	500
Granted stock (in shares)	309,500
Compensation expense	$ 2,569
Stock price (USD per share)							$ 10.00

Stock-Based Compensation - Fair Value Assumptions (Details) - $ / shares	9 Months Ended
	Sep. 30, 2021	Jul. 21, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price (USD per share)		$ 10
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	50.00%
Stock price (USD per share)	$ 8.30
Strike Price (USD per share)	$ 8.30
Expected life of the warrants to convert (years)	6 years 3 months
Risk-free rate	1.20%
Dividend yield	0.00%

Stock-Based Compensation - Activities of RSUs and SARs (Details)	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Weighted-Average Grant Date Fair Value
Fully vested shares (in USD per share) \| $ / shares	$ 8.30
Fully Vested Shares
Shares
Fully Vested Shares Outstanding (in shares)	0
Granted (in shares)	309,500
Exercised or vested (in shares)	(309,500)
Forfeited (in shares)	0
Expired (in shares)	0
Fully Vested Shares Outstanding (in shares)	0
RSUs
Shares
Outstanding (in shares)	0
Granted (in shares)	2,334,490
Exercised or vested (in shares)	0
Forfeited (in shares)	0
Expired (in shares)	0
Outstanding (in shares)	2,334,490
Weighted-Average Grant Date Fair Value
Nonvested shares (in USD per share) \| $ / shares	$ 8.30
SARs
Shares
Outstanding (in shares)	0
Granted (in shares)	1,935,131
Exercised or vested (in shares)	0
Forfeited (in shares)	0
Expired (in shares)	0
Outstanding (in shares)	1,935,131
Weighted-Average Grant Date Fair Value
Nonvested shares (in USD per share) \| $ / shares	$ 4.05

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 412,565	$ 73,451	$ 1,061,085	$ 172,575
Total Class B stock-based compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	409,922	73,451	1,058,442	172,575
Cost of revenue \| Total Class B stock-based compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	45,618	13,717	170,536	31,943
Sales and marketing \| Total Class B stock-based compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	31,507	943	46,417	3,168
General and administrative \| Total Class B stock-based compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 332,797	$ 58,791	$ 841,489	$ 137,464

Stock-Based Compensation - Option Activity (Details) - Common Stock - Class B	9 Months Ended
	Sep. 30, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding (in shares)	75,044
Granted stock (in shares)	17,690
Vested (in shares)	(92,734)
Outstanding (in shares)	0

Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended		9 Months Ended
	Jul. 21, 2021	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator
Net (loss) income	$ (409,132)	$ 42,847	$ (366,285)	$ (68,293)	$ (623,479)	$ (97,418)	$ (989,764)	$ (165,711)
Net (loss) income attributable to non-controlling interests	$ 81	33,167	$ 33,248	$ (694)			$ 32,117	$ (1,566)
Net income attributable to common shareholders, basic		9,680
Net income attributable to common shareholders, dilutive		$ 9,680
Denominator
Weighted average shares outstanding, basic (in shares)		24,963
Weighted average shares outstanding, diluted (in shares)		24,963
Earnings per share
Net income per share attributable to common shares, basic (in usd per share)		$ 0.39
Net income per share attributable to common shares, diluted (in usd per share)		$ 0.39

Earnings Per Share - Additional Information (Details)	2 Months Ended
Earnings Per Share - Additional Information (Details)	Sep. 30, 2021 shares
Public Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	20,699,993
Private Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	10,280,000
Sponsor Earn Out Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	3,051,000
Member Earn Out Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,000,000

Income Taxes (Details)	3 Months Ended	9 Months Ended
Income Taxes (Details)	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Income Tax Disclosure [Abstract]
Effective income tax rate	(0.80%)	(0.30%)
Valuation allowance	$ 28,947,000	$ 28,947,000
Unrecognized tax positions	$ 0	$ 0

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Aug. 31, 2019
Related Party Transaction [Line Items]
Related party revenue		$ 245	$ 1,041	$ 864	$ 2,479
Related party payables, net		1,238		1,238		$ 2,515
Related party receivables		503		503		874
Operating cash flows from operating leases				1,317	2,389
Operating lease right-of-use assets		11,360		11,360		12,337
Notes receivable		1,155		1,155
Related Party Owner
Related Party Transaction [Line Items]
Operating cash flows from operating leases		383	376	1,150	1,128
Operating lease, expense		556	556	1,668	1,668
Operating lease right-of-use assets		10,738		10,738		11,957
Total lease liabilities		7,789		7,789		8,490
One-Time Bonus Payment \| Founder
Related Party Transaction [Line Items]
Expenses from transactions with related party	$ 10,000
Revenue Share Expenses \| Related Party Owner And Affiliates
Related Party Transaction [Line Items]
Expenses from transactions with related party		1,337	1,255	8,921	2,884
Call Center Support And Other Services Expense \| Related Party Owner And Affiliates
Related Party Transaction [Line Items]
Expenses from transactions with related party		347	98	960	941
Corporate Functions \| Related Party Owner
Related Party Transaction [Line Items]
Related party payables, net		1,338		1,338		3,288
Fees And Accounting And Marketing Services Revenue \| Class B Unitholders
Related Party Transaction [Line Items]
Related party revenue		93	86	235	280
Related party receivables		582		$ 582		$ 689
Lead Generation Marketing Expense \| Related Party Vendor
Related Party Transaction [Line Items]
Expenses from transactions with related party			4,292		12,336
Class B Unitholder Note, Issued August 2019 \| Class B Unitholders
Related Party Transaction [Line Items]
Interest income					25
Notes receivable							$ 3,000
Class A Unitholder Note Issued April 2020 \| Class A Unitholders
Related Party Transaction [Line Items]
Interest rate				0.86%
Interest income		$ 2	$ 2	$ 7	$ 3
Repayment period following IPO				30 days

Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Current assets	$ 235,751	$ 180,637
Total assets	403,429	284,813
Current liabilities	434,216	345,538
Total liabilities	845,356	1,205,423
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Current assets	1,048	3,787
Noncurrent assets	5	22
Total assets	1,053	3,809
Current liabilities	564	3,265
Noncurrent liabilities	0	0
Total liabilities	$ 564	$ 3,265

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (bb)
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Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.

Amount of obligation due after one year or beyond the normal operating cycle, if longer.

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