0001628280-23-028734 | 10-Q | XBRL Viewer

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Computation of Basic and Diluted Earnings Per Share

The following tables set forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Basic earnings per share:
Numerator:
Net income	$	9,743	$	34,037	$	40,348	$	57,060
Less: Net income attributable to noncontrolling interests	9,707		22,156		38,845		39,354
Net income attributable to Class A common stockholders	$	36	$	11,881	$	1,503	$	17,706

Denominator:
Weighted average shares outstanding (in thousands)	30,526		22,288		29,853		23,065

Basic earnings per share	$	—	$	0.53	$	0.05	$	0.77

Diluted earnings per share:
Numerator:
Net income	$	9,743	$	34,037	$	40,348	$	57,060
Less: Net income attributable to noncontrolling interests	9,707		22,156		38,845		39,354
Net income attributable to Class A common stockholders	$	36	$	11,881	$	1,503	$	17,706

Denominator:
Weighted average shares outstanding (in thousands)	31,837		22,296		31,162		23,069

Diluted earnings per share	$	—	$	0.53	$	0.05	$	0.77

Balance Sheet Components

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Capitalized Implementation Costs

We capitalized cloud computing implementation costs for customer-relationship management, revenue management, and enterprise resource planning systems of $66 and $492 for the three months ended June 30, 2023 and 2022, respectively, and $71 and $1,032 for the six months ended June 30, 2023 and 2022, respectively. The capitalized implementation costs are capitalized within other current assets and other assets on the condensed consolidated balance sheets. Amortization expense related to capitalized cloud computing implementation costs was $229 and $10, for the three months ended June 30, 2023 and 2022, respectively, and $451 and $12 for the six months ended June 30, 2023 and 2022, respectively.

Property and Equipment, Net

Property and equipment, net consists of the following:


		As of
	Estimated Useful Lives	June 30, 2023		December 31, 2022
Furniture and fixtures	5 years	$	960	$	960
Computers, software and equipment	3 years	1,504		1,458
Leasehold improvements	Shorter of estimated useful life or remaining term of lease	1,278		1,278
		3,742		3,696
Less: Accumulated depreciation and amortization		(2,943)		(2,804)
Total property and equipment, net		$	799	$	892

Depreciation and amortization expense for property and equipment was $69 and $81 for the three months ended June 30, 2023 and 2022, respectively, and $139 and $184 for the six months ended June 30, 2023 and 2022, respectively.

Accrued Expenses

Accrued expenses consist of the following:


	As of
	June 30, 2023		December 31, 2022
Commission and variable compensation	$	20,211	$	24,207
Payroll and benefits	4,568		5,258

Other accrued expenses	13,579		16,511
Total accrued expenses	$	38,358	$	45,976

Condensed Consolidated Statement of Stockholders’ Deficit (Unaudited) (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Common stock, dividend (in dollars per share)	$ 0.01	$ 0.01

Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income	$ 9,743	$ 34,037	$ 40,348	$ 57,060
Less: Net income attributable to noncontrolling interests	9,707	22,156	38,845	39,354
Net income attributable to Class A common stockholders	36	11,881	1,503	17,706
Net income attributable to Class A common stockholders	$ 36	$ 11,881	$ 1,503	$ 17,706
Denominator:
Weighted average shares outstanding (in shares)	30,526	22,288	29,853	23,065
Basic earnings per share (USD per share)	$ 0	$ 0.53	$ 0.05	$ 0.77
Weighted average shares outstanding (in shares)	31,837	22,296	31,162	23,069
Diluted earnings per share (USD per share)	$ 0	$ 0.53	$ 0.05	$ 0.77

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 925	$ 531	$ 1,839	$ 1,033
Amortization of capitalized software development costs	146	130	289	235
Additions to capitalized software development costs	$ 590	$ 50	$ 972	$ 81

Variable Interest Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Current assets	$ 304,305	$ 279,175
Total assets	445,596	442,508
Current liabilities	354,617	385,506
Total liabilities	702,847	740,891
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Current assets	1,106	3,678
Noncurrent assets	196	300
Total assets	1,302	3,978
Current liabilities	269	227
Total liabilities	$ 269	$ 227

- Definition

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.

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- Definition

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.

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+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2023

Variable Interest Entities [Abstract]

Schedule of Variable Interest Entities

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


	As of
	June 30, 2023		December 31, 2022
Current assets	$	1,106	$	3,678
Noncurrent assets	196		300
Total assets	$	1,302	$	3,978

Current liabilities	$	269	$	227

Total liabilities	$	269	$	227

- Definition

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.

+ References + Details

Revenue Recognition - Summary of Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 3,138	$ 4,040
Obligations for refunds	3,866	4,676
Deferred revenue – current	284,509	310,555
Deferred revenue – non-current	$ 340,032	$ 348,273

Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Included within cost of revenue, sales and marketing, and general and administrative expenses are total stock-based compensation expenses as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	683	$	525	$	1,691	$	1,059
Sales and marketing	716		577		1,808		1,142
General and administrative	2,279		1,347		3,882		2,836
Total stock based-compensation expense	$	3,678	$	2,449	$	7,381	$	5,037

Total stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 includes expenses related to our MarketWise, Inc. 2021 Incentive Award Plan (the “2021 Incentive Award Plan”) and our 2021 Employee Stock Purchase Plan (“ESPP”), as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
2021 Incentive Award Plan	$	3,587	$	2,312	$	7,190	$	4,742
Employee Stock Purchase Plan	91		137		191		295
Total stock-based compensation expense	$	3,678	$	2,449	$	7,381	$	5,037

2021 Incentive Award Plan

As of June 30, 2023, The Company has reserved a total of 33,960,802 shares of MarketWise Class A common stock for issuance pursuant to the 2021 Incentive Award Plan.

During the six months ended June 30, 2023, we granted 4,525,609 restricted stock units (“RSUs”) and 715,000 fully vested shares of Class A common stock to certain employees and service providers in aggregate under our 2021 Incentive Award Plan.

For employees and service providers, both RSUs and stock appreciation rights (“SARs”) are primarily time-based and typically vest ratably over four years, as specified in the individual grant notices. The RSUs may entitle the recipients to dividend equivalents if approved by the Plan Administrator, which are subject to the same vesting terms and accumulate during the vesting period. Upon vesting, the RSU holder will be issued a corresponding number of 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 of a SAR will have a total market value equal to the SAR value calculated as (x) number of shares underlying such 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 the 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.

The activities of the RSUs and SARs and the related weighted average grant-date fair value of the respective share classes, including granted, exercised and forfeited, from January 1, 2023 to June 30, 2023, are summarized as follows:


	RSUs			SARs
	Units	Weighted-Average Grant Date Fair Value		Units	Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2023	6,261,543	$	3.45	1,747,473	$	4.05
Granted	4,525,609	1.84		—	—
Exercised or vested	(1,488,543)	2.02		—	—
Forfeited	(567,488)	2.43		(84,226)	4.05

Outstanding at June 30, 2023	8,731,121	$	2.89	1,663,247	$	4.05
Exercisable at June 30, 2023	—	$	—	417,523	$	4.05

The stock compensation expense related to the RSU and SAR grants was $2,443 and $2,312 for the three months ended June 30, 2023 and 2022, respectively, and $6,046 and $4,742 for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, 417,523 of the SARs were exercisable and they have a remaining contractual term of 8.2 years. For the fully vested shares, during the six months ended June 30, 2023, we issued 417,684 shares of Class A common stock after withholding for taxes, resulting in compensation expense of $1,144.

Employee Stock Purchase Plan

As of June 30, 2023, The Company has reserved for issuance a total of 6,728,300 shares of Class A common stock for the ESPP. The most recent offering period began on January 1, 2023 and ended on June 30, 2023.

The Company recognized $91 and $137 of stock-based compensation expense related to the ESPP during the three months ended June 30, 2023 and 2022, respectively, and $191 and $295 for the six months ended June 30, 2023 and 2022, respectively. On each purchase date, eligible employees may purchase the shares at a price per share equal to 85% of the lesser of the fair market value of the Company’s Class A common stock on (1) the first trading day of the offering period, or (2) the last trading day of the offering period. The Company issued 231,165 shares of Class A common stock for $332,184 related to employee purchases under the ESPP on June 30, 2023.

Income Taxes - Narrative (Details)	3 Months Ended		6 Months Ended
Income Taxes - Narrative (Details)	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022	Jun. 30, 2023 USD ($)	Jun. 30, 2022	Dec. 31, 2022 USD ($)
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Effective income tax rate	4.20%	3.00%	3.30%	4.30%
Valuation allowance	$ 29,088,000		$ 29,088,000
Tax savings rate			0.85
Tax receivable agreement, percent of calculated tax savings retained	0.15		0.15
Tax receivable agreement liability, noncurrent	$ 1,095,000		$ 1,095,000		$ 0
Unrecognized tax positions	0		0
Change to uncertain tax positions within the next 12 months	$ 0		$ 0
Common Stock - Class B
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Issuance per redemption of Class B shares for Class A (in shares) \| shares	1,250,000
MarketWise, LLC Units
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Issuance per redemption of Class B shares for Class A (in shares) \| shares	1,250,000
Common Stock - Class A
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Stock issued during period, conversion of units (in shares) \| shares	1,250,000

Stockholders’ Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholders’ Equity

The Company’s capital stock consists of (i) issued and outstanding Class A common stock with a par value of $0.0001 per share, and (ii) issued and outstanding Class B common stock with a par value of $0.0001 per share.

The table set forth below reflects information about the Company’s equity, as of June 30, 2023. The 3,051,000 Sponsor earnout shares held in escrow and the 2,000,000 management member earnout shares 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	32,073,995	32,073,995
Common stock – Class B	300,000,000	289,842,303	289,842,303
Preferred stock	100,000,000	—	—
Total	1,350,000,000	321,916,298	321,916,298

Each share of Class A and Class B common stock entitles the holder to one vote per share. Only holders of Class A common stock have the right to receive dividends. 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 members of MarketWise, LLC, their respective successors and permitted transferees. Under the terms of the Third Amended and Restated Limited Liability Company Operating Agreement of MarketWise, LLC (the “MarketWise Operating Agreement”), and subject to certain restrictions set forth therein, the MarketWise Members are entitled to have their LLC Units redeemed or exchanged for shares of our Class A common stock, at our option. If redeemed for cash at the Company’s option, such cash would have to be generated through an offering of shares to the market such that there would not be any situation where there would be a net cash obligation to the Company for such redemption. Shares of our Class B common stock held by any such redeeming or exchanging MarketWise Member will be canceled for no additional consideration on a one-for-one basis with the redeemed or exchanged LLC Units whenever such MarketWise Member’s LLC Units are so redeemed or exchanged. The MarketWise Members may exercise such redemption rights for as long as their LLC Units remain outstanding. Our Board 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.

On May 11, 2023, our Board declared a cash dividend to its Class A common stockholders in the amount of $0.01 per share, totaling $0.4 million, and a cash distribution to holders of LLC Units in the amount of $0.01 per unit, totaling $2.9 million, to stockholders and unitholders of record as of the close of business on June 1, 2023.

Certain of the dividends are attributable to earnout shares and dividend equivalents are attributable to unvested RSUs, and are therefore forfeitable. The Company recorded the full dividend payable as a charge to additional paid-in capital on the declaration date, and forfeitures are reversed as they occur. On July 20, 2023, $0.3 million of the dividends and the full distribution of $2.9 million was paid to stockholders and unitholders, respectively.

The Company intends to pay dividends quarterly in the future, subject to Board approval of any such dividends. Dividends payable and distributions payable are included in other current liabilities in the condensed consolidated balance sheet.

During the three and six months ended June 30, 2023, MarketWise Members exchanged an aggregate of 1,250,000 LLC Units together with an equal number of shares of the Company’s Class B common stock for 1,250,000 newly-issued shares of the Company’s Class A common stock. As a result of the exchanges, the Company recognized adjustments to non-controlling interests. As of June 30, 2023, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 10.0% and the noncontrolling interest was 90.0%.

On November 4, 2021, our Board 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. We did not repurchase any shares during the three and six months ended June 30, 2023. We repurchased 341,271 shares totaling $1.6 million in the aggregate, including fees and commissions of $3, and 2,484,717 shares totaling $13.1 million in aggregate, including fees and commissions of $25, for the three and six months ended June 30, 2022, respectively. Since the inception of the program we have repurchased 2,984,987 total shares. The maximum dollar value of shares that may yet to be purchased under the plan was $18.6 million as of June 30, 2023.

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 LLC Unit held by the Company, decreasing

the percentage ownership of MarketWise, LLC by the Company and relatively increasing the ownership by the other unitholders.

- Definition

The entire disclosure for equity.

+ References

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-URI https://asc.fasb.org//505/tableOfContent

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+ Details

Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

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 June 30, 2023
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	103,148	$	—	$	—	$	—	$	103,148
Transferred at a point in time	—		169		281		46		496
Total	$	103,148	$	169	$	281	$	46	$	103,644


	Three Months Ended June 30, 2022
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	127,231	$	—	$	—	$	—	$	127,231
Transferred at a point in time	—		160		548		75		783
Total	$	127,231	$	160	$	548	$	75	$	128,014


	Six Months Ended June 30, 2023
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	228,560	$	—	$	—	$	—	$	228,560
Transferred at a point in time	—		316		899		102		1,317
Total	$	228,560	$	316	$	899	$	102	$	229,877


	Six Months Ended June 30, 2022
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	263,331	$	—	$	—	$	—	$	263,331
Transferred at a point in time	—		437		726		318		1,481
Total	$	263,331	$	437	$	726	$	318	$	264,812

Revenue recognition by subscription type was as follows:


	Three Months Ended June 30,	Six Months Ended June 30,
		2023		2022		2023		2022
Membership subscriptions		$	41,409	$	49,852	$	89,811	$	101,304
Term subscriptions		61,739		77,379		138,749		162,027
Non-subscription revenue		496		783		1,317		1,481
Total		$	103,644	$	128,014	$	229,877	$	264,812

Revenue for the membership and term subscription types are determined based on the terms of the subscription agreements. Non-subscription revenue consists of revenue from advertising and other revenue from revenue share arrangements and the sale of print products and events, such as webinars and conferences.

Net revenue by principal geographic areas was as follows:


	Three Months Ended June 30,	Six Months Ended June 30,
		2023		2022		2023		2022
United States		$	103,644	$	128,001	$	229,786	$	264,712
International		—		13		91		100
Total		$	103,644	$	128,014	$	229,877	$	264,812

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 condensed 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
	June 30, 2023		December 31, 2022
Contract balances
Accounts receivable	$	3,138	$	4,040
Obligations for refunds	$	3,866	$	4,676
Deferred revenue – current	$	284,509	$	310,555
Deferred revenue – non-current	$	340,032	$	348,273

We recognized $82,614 and $83,644 of revenue during the three months ended June 30, 2023 and 2022, respectively, and $186,649 and $193,394 during the six months ended June 30, 2023 and 2022, 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 $3,138 and $4,040 as of June 30, 2023 and December 31, 2022, respectively, related to the timing of cash settlement with our 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, 2023	$	197,618
Royalties and sales commissions – additions	15,049
Revenue share and cost per acquisition fees – additions	19,637
Amortization of capitalized costs	(54,628)
Balance at June 30, 2023	$	177,676

We did not recognize any impairment on capitalized costs associated with contracts with customers for the three and six months ended June 30, 2023 and 2022.

Remaining Performance Obligations

As of June 30, 2023, the Company had $628,407 of remaining performance obligations presented as deferred revenue in the condensed consolidated balance sheets. We expect to recognize approximately 46% of that amount as revenues over the next twelve months, with the remainder recognized thereafter.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 9
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-Publisher FASB
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+ Details

Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Commission and variable compensation	$ 20,211	$ 24,207
Payroll and benefits	4,568	5,258
Other accrued expenses	13,579	16,511
Total accrued expenses	$ 38,358	$ 45,976

Fair Value Measurements - Schedule of Changes in Fair Value of Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 1,281	$ 31,347
Ending balance	1,982	11,693
Other
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of derivative instruments	$ 701	$ (19,654)

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of MarketWise, Inc. and its subsidiary, MarketWise, LLC, a variable interest entity (“VIE”) for which MarketWise, Inc. is deemed to be the primary beneficiary. MarketWise, Inc. is a holding company that owns a minority economic interest in MarketWise, LLC but, through its role as the managing member of MarketWise, LLC, controls all of the business and operations of MarketWise, LLC. Therefore, MarketWise, LLC and its subsidiaries are included in the Company’s condensed consolidated financial statements. As of June 30, 2023, MarketWise, Inc. had a 10.0% ownership interest in MarketWise, LLC. The Company determined that MarketWise, LLC is the primary beneficiary of a VIE, Stansberry Pacific Research, and therefore, the assets, liabilities, and results of operations of that VIE are included in the Company’s condensed consolidated financial statements. For more information on Stansberry Pacific Research, see Note 12 – Variable Interest Entities. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. The accompanying statements of operations include certain expenses incurred by, and charged to us by, a related party for general corporate services. 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 condensed 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 condensed 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 condensed 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 condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2022 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 condensed consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly our financial position as of June 30, 2023, the results of operations, comprehensive income, stockholders’ deficit, and cash flows for the three and six months ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 and 2022 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 included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“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 condensed financial statements. Use of Estimates The preparation of condensed 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 condensed consolidated 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 of 1933, as amended (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 Securities Exchange Act of 1934, as amended) 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 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. 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. Net income for the three and six months ended June 30, 2023 and 2022 was attributable to consolidated MarketWise, Inc. and its respective noncontrolling interests. As of June 30, 2023, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 10.0% and the noncontrolling interest was 90.0%. For the three months ended June 30, 2023, net income attributable to controlling interests included a $0.4 million tax provision, and for the six months ended June 30, 2023, net income attributable to controlling interests included a $1.4 million tax provision, both of which were 100% attributable to the controlling interest. As of June 30, 2022, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 7.2% and the noncontrolling interest was 92.8%. For the three months ended June 30, 2022, net income attributable to controlling interests included a $12.1 million gain on warrant liabilities and a $1.0 million tax provision, and for the six months ended June 30, 2022, net income attributable to controlling interests included a $18.8 million gain on warrant liabilities and a $2.6 million tax provision, both of which were 100% attributable to the controlling interest.

Stock-Based Compensation - Stock Based Compensation Expense by Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 3,678	$ 2,449	$ 7,381	$ 5,037
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	91	137	191	295
2021 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 3,587	$ 2,312	$ 7,190	$ 4,742

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Instruments, Gains (Losses)


		Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income Statement
Warrants	Other income, net	$	—	$	12,082	$	—	$	18,799
Phantom Interests in Net Income	General and administrative	310		441		(701)		855
Total		$	310	$	12,523	$	(701)	$	19,654

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$ 479	$ 403
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	(994)	(1,259)
Operating lease right-of-use assets obtained in exchange for lease obligations	(76)	(795)
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Capitalized software included in accounts payable	59	167
Recording of deferred tax assets and capital contribution related to exchanges of Class B common stock to Class A common stock	1,289	0
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents	187,022	151,185	$ 158,575
Restricted cash	0	0
Total	$ 187,022	$ 151,185	$ 158,575	$ 139,578

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 40,348	$ 57,060
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,978	1,217
Impairment of right-of-use assets	0	287
Stock-based compensation	7,381	5,037
Change in fair value of warrant liabilities and other derivative liabilities	701	(19,654)
Deferred taxes	1,356	2,454
Unrealized gains on foreign currency	(26)	(132)
Noncash lease expense	1,053	906
Changes in operating assets and liabilities:
Accounts receivable	902	4,495
Related party receivables and payables, net	(78)	(479)
Prepaid expenses	1,309	3,802
Other current assets and other assets	666	(615)
Deferred contract acquisition costs	19,942	(5,617)
Trade and other payables	2,408	(2,804)
Accrued expenses	(7,618)	(2,586)
Deferred revenue	(35,097)	(9,120)
Operating lease liabilities	(731)	(981)
Other current and long-term liabilities	(1,648)	(5,408)
Net cash provided by operating activities	32,846	27,862
Cash flows from investing activities:
Purchases of property and equipment	(46)	(26)
Capitalized software development costs	(913)	(81)
Net cash used in investing activities	(959)	(107)
Cash flows from financing activities:
Proceeds from related party notes receivable, net	0	294
Proceeds from issuance of common stock	332	517
Repurchases of stock	0	(13,054)
Restricted stock units withheld to pay taxes	(1,106)	0
Distributions to noncontrolling interests	(2,652)	(3,799)
Net cash used in financing activities	(3,426)	(16,042)
Effect of exchange rate changes on cash	(14)	(106)
Net increase in cash, cash equivalents and restricted cash	28,447	11,607
Cash, cash equivalents and restricted cash — beginning of period	158,575	139,578
Cash, cash equivalents and restricted cash — end of period	$ 187,022	$ 151,185

Condensed Consolidated Statement of Stockholders’ Deficit (Unaudited) - USD ($) $ in Thousands	Total	Common Stock - Class A	Common Stock - Class B	Total Stockholders’ Deficit / Members’ Deficit Attributable to MarketWise, Inc.	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)	Noncontrolling Interest
Common stock, beginning balance (in shares) at Dec. 31, 2021					24,718,402	291,092,303
Beginning balance at Dec. 31, 2021	$ (405,262)			$ (48,545)	$ 2	$ 29	$ 0	$ 97,548	$ (146,115)	$ (9)	$ (356,717)
Preferred stock, beginning balance (in shares) at Dec. 31, 2021							0
Stockholders' Deficit
Equity-based compensation	5,037			5,037				5,037
Proceeds from issuance of common stock (in shares)					161,178
Proceeds from issuance of common stock	$ 517			517				517
Repurchases of stock (in shares)	(2,484,717)				(2,484,717)
Repurchases of stock	$ (13,054)			(13,054)				(13,054)
Vesting of restricted stock units (in shares)					110,240
Distributions	(3,799)										(3,799)
Foreign currency translation adjustments	(106)			(106)						(106)
Net income	57,060			17,706					17,706		39,354
Common stock, ending balance (in shares) at Jun. 30, 2022					22,505,103	291,092,303
Ending balance at Jun. 30, 2022	(359,607)			(38,445)	$ 2	$ 29	$ 0	90,048	(128,409)	(115)	(321,162)
Preferred stock, ending balance (in shares) at Jun. 30, 2022							0
Common stock, beginning balance (in shares) at Mar. 31, 2022					22,574,956	291,092,303
Beginning balance at Mar. 31, 2022	(394,011)			(51,640)	$ 2	$ 29	$ 0	88,645	(140,290)	(26)	(342,371)
Preferred stock, beginning balance (in shares) at Mar. 31, 2022							0
Stockholders' Deficit
Equity-based compensation	2,449			2,449				2,449
Proceeds from issuance of common stock (in shares)					161,178
Proceeds from issuance of common stock	$ 517			517				517
Repurchases of stock (in shares)	(341,271)				(341,271)
Repurchases of stock	$ (1,563)			(1,563)				(1,563)
Vesting of restricted stock units (in shares)					110,240
Distributions	(947)										(947)
Foreign currency translation adjustments	(89)			(89)						(89)
Net income	34,037			11,881					11,881		22,156
Common stock, ending balance (in shares) at Jun. 30, 2022					22,505,103	291,092,303
Ending balance at Jun. 30, 2022	(359,607)			(38,445)	$ 2	$ 29	$ 0	90,048	(128,409)	(115)	(321,162)
Preferred stock, ending balance (in shares) at Jun. 30, 2022							0
Common stock, beginning balance (in shares) at Dec. 31, 2022		29,039,655	291,092,303		29,039,655	291,092,303
Beginning balance at Dec. 31, 2022	$ (298,383)			(21,197)	$ 3	$ 29	$ 0	106,852	(128,125)	44	(277,186)
Preferred stock, beginning balance (in shares) at Dec. 31, 2022	0						0
Stockholders' Deficit
Equity-based compensation	$ 7,381			7,381				7,381
Proceeds from issuance of common stock (in shares)					648,849
Proceeds from issuance of common stock	$ 332			332				332
Repurchases of stock (in shares)	0
Vesting of restricted stock units (in shares)					1,135,491
Restricted stock units withheld to pay taxes	$ (1,106)			(1,106)				(1,106)
Cash dividends declared	(440)			(440)				(440)
Distributions	(5,563)										(5,563)
Issuance per redemption of Class B shares for Class A (in shares)					(1,250,000)	(1,250,000)
Issuance per redemption of Class B shares for Class A	194			(873)				(873)			1,067
Foreign currency translation adjustments	(14)			(14)						(14)
Net income	40,348			1,503					1,503		38,845
Common stock, ending balance (in shares) at Jun. 30, 2023		32,073,995	289,842,303		32,073,995	289,842,303
Ending balance at Jun. 30, 2023	$ (257,251)			(14,414)	$ 3	$ 29	$ 0	112,146	(126,622)	30	(242,837)
Preferred stock, ending balance (in shares) at Jun. 30, 2023	0						0
Common stock, beginning balance (in shares) at Mar. 31, 2023					29,913,490	291,092,303
Beginning balance at Mar. 31, 2023	$ (264,664)			(16,636)	$ 3	$ 29	$ 0	109,925	(126,658)	65	(248,028)
Preferred stock, beginning balance (in shares) at Mar. 31, 2023							0
Stockholders' Deficit
Equity-based compensation	3,678			3,678				3,678
Proceeds from issuance of common stock (in shares)					648,849
Proceeds from issuance of common stock	$ 332			332				332
Repurchases of stock (in shares)	0
Vesting of restricted stock units (in shares)					261,656
Restricted stock units withheld to pay taxes	$ (476)			(476)				(476)
Cash dividends declared	(440)			(440)				(440)
Distributions	(5,583)										(5,583)
Issuance per redemption of Class B shares for Class A (in shares)			(1,250,000)		1,250,000	(1,250,000)
Issuance per redemption of Class B shares for Class A	(194)			(873)				(873)			1,067
Foreign currency translation adjustments	(35)			(35)						(35)
Net income	9,743			36					36		9,707
Common stock, ending balance (in shares) at Jun. 30, 2023		32,073,995	289,842,303		32,073,995	289,842,303
Ending balance at Jun. 30, 2023	$ (257,251)			$ (14,414)	$ 3	$ 29	$ 0	$ 112,146	$ (126,622)	$ 30	$ (242,837)
Preferred stock, ending balance (in shares) at Jun. 30, 2023	0						0

Stock-Based Compensation - Stock-based Compensation Expense by Statement of Operations Line Item (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 3,678	$ 2,449	$ 7,381	$ 5,037
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	683	525	1,691	1,059
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	716	577	1,808	1,142
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,279	$ 1,347	$ 3,882	$ 2,836

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
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. Our effective income tax rate was 4.2% and 3.3% for the three and six months ended June 30, 2023, respectively, and 3.0% and 4.3% for the three and six months ended June 30, 2022, respectively. The main driver of the effective income tax rate for the three and six months ended June 30, 2022 was the income allocation to the non-controlling interest. The main driver of the increase in the effective tax rate from the three months ended June 30, 2022 is the change in the income allocation to the non-controlling interest. Our effective tax rate for the three and six months ended June 30, 2023 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 in 2021, we recorded a deferred tax asset resulting from the outside basis difference in our interest in MarketWise, LLC. The Company considers both positive and negative evidence when measuring the need for a valuation allowance. A valuation allowance is not required to the extent that, in management’s judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not (a likelihood of more than 50%) that the Company’s deferred tax assets will be realized. In evaluating the need for a valuation allowance on the deferred tax asset, the company considered positive evidence related to its historic earnings, forecasted income and reversal of temporary differences. Therefore, the Company recorded a valuation allowance in the amount of $29,088 for certain deferred tax assets that are not more likely than not to be realized. As part of the reverse capitalization in 2021, we entered into a Tax Receivable Agreement (“TRA”) with certain stockholders. Pursuant to our election under Section 754 of the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder, we expect to receive a step up in the tax basis of our ownership in MarketWise, LLC as exchanges of the LLC Units (as defined herein) occur. These increases in tax basis may reduce the amount we may otherwise pay to various tax authorities in the future. The TRA liability will represent approximately 85% of the calculated tax savings based on basis adjustments and other carryforward attributes assumed that we anticipate being able to utilize in future years. We will retain the remaining 15% of calculated tax savings. The payments contemplated by the TRA are not conditioned upon any continued ownership interest in MarketWise, LLC. The timing and amount of aggregate payments due pursuant to the TRA may vary based on several factors including the timing and amount of future taxable income, as well as future applicable tax rates. As such, significant inputs and assumptions are used to estimate the future expected payments under the TRA. During the three months ended June 30, 2023, Members of MarketWise, LLC exchanged an aggregate of 1,250,000 common units of MarketWise, LLC (“LLC Units”) together with an equal number of shares of Class B common stock for 1,250,000 newly-issued shares of Class A common stock. As a result, we have recorded a liability of $1,095 under the TRA as of June 30, 2023. No payments have been made under the TRA and no payments are expected in the next twelve months. As of June 30, 2023, we had no unrecognized tax positions and believe there will be no changes to uncertain tax positions within the next 12 months.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Stock-Based Compensation - Activities of RSUs and SARs (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
RSUs
Shares
Outstanding (in shares)	6,261,543
Granted (in shares)	4,525,609
Vested (RSUs) or Exercised (SARs) (in shares)	(1,488,543)
Forfeited (in shares)	(567,488)
Outstanding (in shares)	8,731,121
Exercisable (in shares)	0
Weighted-Average Grant Date Fair Value
Outstanding (in USD per share)	$ 2.89	$ 3.45
Granted (in USD per share)	1.84
Vested (RSUs) or Exercised (SARs) (in USD per share)	2.02
Forfeited (in USD per share)	2.43
Exercisable (in dollars per share)	$ 0
SARs
Shares
Outstanding (in shares)	1,747,473
Granted (in shares)	0
Vested (RSUs) or Exercised (SARs) (in shares)	0
Forfeited (in shares)	(84,226)
Outstanding (in shares)	1,663,247
Exercisable (in shares)	417,523
Weighted-Average Grant Date Fair Value
Outstanding (in USD per share)	$ 4.05	$ 4.05
Granted (in USD per share)	0
Vested (RSUs) or Exercised (SARs) (in USD per share)	0
Forfeited (in USD per share)	$ 4.05
Exercisable (in dollars per share)			$ 4.05

Related Party Transactions (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Dec. 31, 2022

Apr. 30, 2020

Net revenue

$ 103,644

$ 128,014

$ 229,877

$ 264,812

Cost of revenue

^[1]

14,635

16,229

29,925

33,846

Related party expense

204

332

194

Other income, net

238

11,923

625

19,219

Related party receivables

1,008

$ 1,512

Operating cash flows from operating leases

994

1,259

Operating lease right-of-use assets

8,459

9,468

Interest (expense) income, net

1,013

(218)

1,551

(389)

Net revenue

281

548

899

726

Trade and other payables

422

1,004

Operating cash flows from operating leases

435

528

868

919

Operating lease, expense

595

588

1,200

1,141

Operating lease right-of-use assets

8,295

9,210

Total lease liabilities

6,454

7,041

Revenue Share Expenses | Related Party

Deferred contract acquisition costs capitalized during the period

935

847

2,087

1,770

Call Center Support And Other Services Expense | Related Party

Cost of revenue

217

289

353

494

Marketing and Copywriting Services | Related Party

Cost of revenue

332

585

332

585

Corporate Functions | Related Party

Related party expense

Revenue Share Expenses, Call Center Support, and Corporate Functions | Related Party

Trade and other payables

296

1,043

Fees and Accounting and Marketing Services Revenue | Related Party

Other income, net

205

507

253

Related party receivables

$ 442

$ 403

Class A Unitholder Note Issued April 2020 | Related Party

Related party notes receivable, current

$ 1,148

Interest (expense) income, net

$ 6

$ 10

[1]	(1) 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

Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 31,307
Goodwill, ending balance	$ 31,307

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsSubsequent events have been evaluated through August 10, 2023, which is the date that the financial statements were issued.

Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

The carrying amounts of goodwill are as follows:





Balance at December 31, 2022	$	31,307

Balance at June 30, 2023	$	31,307

Intangible assets, net

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


	June 30, 2023
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	21,718	$	(11,241)	$	10,477	5.1
Tradenames	4,287		(2,499)		1,788		5.5
Capitalized software development costs	3,974		(2,146)		1,828		2.4
Finite-lived intangible assets, net	29,979		(15,886)		14,093

Indefinite-lived intangible assets:

Internet domain names	1,087		—		1,087
Indefinite-lived intangible assets, net	1,087		—		1,087
Intangible assets, net	$	31,066	$	(15,886)	$	15,180


	December 31, 2022
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	21,718	$	(9,924)	$	11,794	5.4
Tradenames	4,287		(2,265)		2,022		5.8
Capitalized software development costs	3,002		(1,858)		1,144		2.0
Finite-lived intangible assets, net	29,007		(14,047)		14,960

Indefinite-lived intangible assets:

Internet domain names	1,087		—		1,087
Indefinite-lived intangible assets, net	1,087		—		1,087
Intangible assets, net	$	30,094	$	(14,047)	$	16,047

We recorded amortization expense related to finite-lived intangible assets of $925 and $531 for the three months ended June 30, 2023 and 2022, respectively, and $1,839 and $1,033 for the six months ended June 30, 2023 and 2022, respectively, within depreciation and amortization in the accompanying condensed consolidated statement of operations. These amounts include amortization of capitalized software development costs of $146 and $130 for the three months ended June 30, 2023 and 2022, respectively, and $289 and $235 for the six months ended June 30, 2023 and 2022, respectively.

We recorded additions to capitalized software development costs of $590 and $972 for the three and six months ended June 30, 2023, respectively. We recorded additions to capitalized software development costs of $50 and $81 for the three and six months ended June 30, 2022, respectively.

As of June 30, 2023, the total expected future amortization expense for finite-lived intangible assets is as follows:


Remainder of 2023	$	1,699
2024	3,983
2025	2,539
2026	2,268
2027	1,647
Thereafter	1,957
Finite-lived intangible assets, net	$	14,093

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Net revenue

$ 103,644

$ 128,014

$ 229,877

$ 264,812

Operating expenses:

Cost of revenue

^[1]

14,635

16,229

29,925

33,846

Sales and marketing

^[1]

49,033

65,050

97,760

133,287

General and administrative

^[1]

27,629

20,364

55,662

50,909

Research and development

^[1]

2,230

2,289

4,693

4,567

Depreciation and amortization

994

613

1,978

1,217

Related party expense

204

332

194

Total operating expenses

94,725

104,642

190,350

224,020

Income from operations

8,919

23,372

39,527

40,792

Other income, net

238

11,923

625

19,219

Interest (expense) income, net

1,013

(218)

1,551

(389)

Income before income taxes

10,170

35,077

41,703

59,622

Income tax expense

427

1,040

1,355

2,562

Net income

9,743

34,037

40,348

57,060

Net income attributable to noncontrolling interests

9,707

22,156

38,845

39,354

Net income attributable to MarketWise, Inc.

$ 36

$ 11,881

$ 1,503

$ 17,706

Earnings per share - basic (USD per share)

$ 0

$ 0.53

$ 0.05

$ 0.77

Earnings per share - diluted (USD per share)

$ 0

$ 0.53

$ 0.05

$ 0.77

Weighted average shares outstanding - basic (in shares)

30,526

22,288

29,853

23,065

Weighted average shares outstanding - diluted (in shares)

31,837

22,296

31,162

23,069

Nonrelated Party

Net revenue

$ 103,363

$ 127,466

$ 228,978

$ 264,086

Related Party

Net revenue

$ 281

$ 548

$ 899

$ 726

[1]	(1) 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

Goodwill and Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-lived intangible assets:
Cost	$ 29,979	$ 29,007
Accumulated Amortization	(15,886)	(14,047)
Net Book Value	14,093	14,960
Indefinite-lived intangible assets:
Indefinite-lived intangible assets	1,087	1,087
Cost	31,066	30,094
Intangible assets, net	15,180	16,047
Internet domain names
Indefinite-lived intangible assets:
Indefinite-lived intangible assets	1,087	1,087
Customer relationships
Finite-lived intangible assets:
Cost	21,718	21,718
Accumulated Amortization	(11,241)	(9,924)
Net Book Value	$ 10,477	$ 11,794
Weighted-Average Remaining Useful Life (in years)	5 years 1 month 6 days	5 years 4 months 24 days
Tradenames
Finite-lived intangible assets:
Cost	$ 4,287	$ 4,287
Accumulated Amortization	(2,499)	(2,265)
Net Book Value	$ 1,788	$ 2,022
Weighted-Average Remaining Useful Life (in years)	5 years 6 months	5 years 9 months 18 days
Capitalized software development costs
Finite-lived intangible assets:
Cost	$ 3,974	$ 3,002
Accumulated Amortization	(2,146)	(1,858)
Net Book Value	$ 1,828	$ 1,144
Weighted-Average Remaining Useful Life (in years)	2 years 4 months 24 days	2 years

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Consolidation	Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of MarketWise, Inc. and its subsidiary, MarketWise, LLC, a variable interest entity (“VIE”) for which MarketWise, Inc. is deemed to be the primary beneficiary. MarketWise, Inc. is a holding company that owns a minority economic interest in MarketWise, LLC but, through its role as the managing member of MarketWise, LLC, controls all of the business and operations of MarketWise, LLC. Therefore, MarketWise, LLC and its subsidiaries are included in the Company’s condensed consolidated financial statements. As of June 30, 2023, MarketWise, Inc. had a 10.0% ownership interest in MarketWise, LLC. The Company determined that MarketWise, LLC is the primary beneficiary of a VIE, Stansberry Pacific Research, and therefore, the assets, liabilities, and results of operations of that VIE are included in the Company’s condensed consolidated financial statements. For more information on Stansberry Pacific Research, see Note 12 – Variable Interest Entities. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. The accompanying statements of operations include certain expenses incurred by, and charged to us by, a related party for general corporate services. 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 condensed 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 condensed 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	Unaudited Interim Financial Information The accompanying unaudited condensed 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 condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2022 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 condensed consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly our financial position as of June 30, 2023, the results of operations, comprehensive income, stockholders’ deficit, and cash flows for the three and six months ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 and 2022 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 included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“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 condensed financial statements.
Use of Estimates	Use of Estimates The preparation of condensed 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 condensed consolidated 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.
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.

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cloud computing implementation costs capitalized during the period	$ 66	$ 492	$ 71	$ 1,032
Capitalized cloud computing implementation costs amortization expense	229	10	451	12
Depreciation expense	$ 69	$ 81	$ 139	$ 184

Revenue Recognition - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
Revenue Recognition - Narrative (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract liability, revenue recognized	$ 82,614,000	$ 83,644,000	$ 186,649,000	$ 193,394,000
Accounts receivable	3,138,000		3,138,000		$ 4,040,000
Impairment on capitalized costs	0	$ 0	0	$ 0
Remaining performance obligation	$ 628,407,000		$ 628,407,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation, percentage	46.00%		46.00%
Remaining performance obligation, timing of satisfaction	12 months		12 months

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Revenue Recognition - Summary of Capitalized Costs Associated with Contracts With Customers (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Capitalized Contract Cost [Roll Forward]
Capitalized costs, beginning balance	$ 197,618
Royalties and sales commissions – additions	15,049
Revenue share and cost per acquisition fees – additions	19,637
Amortization of capitalized costs	(54,628)
Capitalized costs, ending balance	$ 177,676

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock-Based Compensation Expense

Included within cost of revenue, sales and marketing, and general and administrative expenses are total stock-based compensation expenses as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	683	$	525	$	1,691	$	1,059
Sales and marketing	716		577		1,808		1,142
General and administrative	2,279		1,347		3,882		2,836
Total stock based-compensation expense	$	3,678	$	2,449	$	7,381	$	5,037


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
2021 Incentive Award Plan	$	3,587	$	2,312	$	7,190	$	4,742
Employee Stock Purchase Plan	91		137		191		295
Total stock-based compensation expense	$	3,678	$	2,449	$	7,381	$	5,037

Summary of Activities of RSUs


	RSUs			SARs
	Units	Weighted-Average Grant Date Fair Value		Units	Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2023	6,261,543	$	3.45	1,747,473	$	4.05
Granted	4,525,609	1.84		—	—
Exercised or vested	(1,488,543)	2.02		—	—
Forfeited	(567,488)	2.43		(84,226)	4.05

Outstanding at June 30, 2023	8,731,121	$	2.89	1,663,247	$	4.05
Exercisable at June 30, 2023	—	$	—	417,523	$	4.05

Summary of Activities of SARs


	RSUs			SARs
	Units	Weighted-Average Grant Date Fair Value		Units	Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2023	6,261,543	$	3.45	1,747,473	$	4.05
Granted	4,525,609	1.84		—	—
Exercised or vested	(1,488,543)	2.02		—	—
Forfeited	(567,488)	2.43		(84,226)	4.05

Outstanding at June 30, 2023	8,731,121	$	2.89	1,663,247	$	4.05
Exercisable at June 30, 2023	—	$	—	417,523	$	4.05

Stockholders’ Equity - Stock by Class (Details) - shares	Jun. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Stock, authorized (in shares)	1,350,000,000
Preferred stock, issued (in shares)	0	0
Stock, issued (in shares)	321,916,298
Preferred stock, outstanding (in shares)	0	0
Stock, outstanding (in shares)	321,916,298
Common Stock - Class A
Class of Stock [Line Items]
Common stock, authorized (in shares)	950,000,000	950,000,000
Common stock, issued (in shares)	32,073,995	29,039,655
Common stock, outstanding (in shares)	32,073,995	29,039,655
Common Stock - Class B
Class of Stock [Line Items]
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	289,842,303	291,092,303
Common stock, outstanding (in shares)	289,842,303	291,092,303

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

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:


	June 30, 2023
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	90,560	$	—	$	—	$	90,560
Total assets	90,560		—		—		90,560
Liabilities:

Derivative liabilities, noncurrent	—		—		1,982		1,982



Total liabilities	$	—	$	—	$	1,982	$	1,982


	December 31, 2022
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	80,327	$	—	$	—	$	80,327
Total assets	80,327		—		—		80,327
Liabilities:
Derivative liabilities, noncurrent	—		—		1,281		1,281
Total liabilities	$	—	$	—	$	1,281	$	1,281

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
	June 30, 2023		December 31, 2022
Volatility	39.70	%	37.30	%
Discount rate	22.20	%	21.80	%
Credit spread	2.00	%	0.20	%
Risk-free rate	3.50	%	3.50	%

Schedule of Changes in Fair Value of Liabilities

The following table summarizes the change in fair value of the liabilities during the six months ended June 30, 2023 and 2022:


Balance at January 1, 2023	$	1,281
Change in fair value of derivative instruments	701
Balance at June 30, 2023	$	1,982

Balance at January 1, 2022	$	31,347
Change in fair value of derivative instruments	(19,654)
Balance at June 30, 2022	$	11,693

Stockholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Stock by Class


	Authorized	Issued	Outstanding
Common stock – Class A	950,000,000	32,073,995	32,073,995
Common stock – Class B	300,000,000	289,842,303	289,842,303
Preferred stock	100,000,000	—	—
Total	1,350,000,000	321,916,298	321,916,298

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
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-Topic 210
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

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-Section S99
-Paragraph 1
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-Section S99
-Paragraph 1
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 187,022	$ 158,575
Accounts receivable	3,138	4,040
Prepaid expenses	10,416	11,725
Related party receivables	1,008	1,512
Deferred contract acquisition costs	99,854	99,960
Other current assets	2,867	3,363
Total current assets	304,305	279,175
Property and equipment, net	799	892
Operating lease right-of-use assets	8,459	9,468
Intangible assets, net	15,180	16,047
Goodwill	31,307	31,307
Deferred contract acquisition costs, noncurrent	77,822	97,658
Deferred tax assets	7,265	7,332
Other assets	459	629
Total assets	445,596	442,508
Current liabilities:
Accrued expenses	38,358	45,976
Deferred revenue and other contract liabilities	288,375	315,231
Operating lease liabilities	1,507	1,484
Other current liabilities	22,828	21,125
Total current liabilities	354,617	385,506
Deferred revenue and other contract liabilities, noncurrent	340,032	348,273
Derivative liabilities, noncurrent	1,982	1,281
Tax receivable agreement liability, noncurrent	1,095	0
Operating lease liabilities, noncurrent	5,121	5,831
Total liabilities	702,847	740,891
Commitments and Contingencies	0	0
Stockholders’ deficit
Preferred stock - par value of $0.0001 per share, 100,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2022 and 2021, respectively	0	0
Additional paid-in capital	112,146	106,852
Accumulated other comprehensive income	30	44
Accumulated deficit	(126,622)	(128,125)
Total stockholders’ deficit attributable to MarketWise, Inc.	(14,414)	(21,197)
Noncontrolling interest	(242,837)	(277,186)
Total stockholders’ deficit	(257,251)	(298,383)
Total liabilities, noncontrolling interest, and stockholders’ deficit	445,596	442,508
Common Stock - Class A
Stockholders’ deficit
Common stock	3	3
Common Stock - Class B
Stockholders’ deficit
Common stock	29	29
Related Party
Current assets:
Operating lease right-of-use assets	8,295	9,210
Current liabilities:
Trade and other payables	422	1,004
Nonrelated Party
Current liabilities:
Trade and other payables	$ 3,127	$ 686

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

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:


	June 30, 2023
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	90,560	$	—	$	—	$	90,560
Total assets	90,560		—		—		90,560
Liabilities:

Derivative liabilities, noncurrent	—		—		1,982		1,982



Total liabilities	$	—	$	—	$	1,982	$	1,982


	December 31, 2022
	Level 1		Level 2		Level 3		Aggregate Fair Value
Assets:
Money market funds	$	80,327	$	—	$	—	$	80,327
Total assets	80,327		—		—		80,327
Liabilities:
Derivative liabilities, noncurrent	—		—		1,281		1,281
Total liabilities	$	—	$	—	$	1,281	$	1,281

The level 3 liabilities relate to certain employee contracts with embedded derivatives, see Note 7 – Derivative Financial Instruments.

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


	As of
	June 30, 2023		December 31, 2022
Volatility	39.70	%	37.30	%
Discount rate	22.20	%	21.80	%
Credit spread	2.00	%	0.20	%
Risk-free rate	3.50	%	3.50	%

The following table summarizes the change in fair value of the liabilities during the six months ended June 30, 2023 and 2022:


Balance at January 1, 2023	$	1,281
Change in fair value of derivative instruments	701
Balance at June 30, 2023	$	1,982

Balance at January 1, 2022	$	31,347
Change in fair value of derivative instruments	(19,654)
Balance at June 30, 2022	$	11,693

- Definition

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.

+ References + Details

Derivative Financial Instruments - Schedule of Location and Amounts and Derivative Instruments Gains and Losses (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative [Line Items]
Derivative gains (losses)	$ 310	$ 12,523	$ (701)	$ 19,654
Warrants
Derivative [Line Items]
Derivative gains (losses)	0	12,082	0	18,799
Phantom Interests in Net Income
Derivative [Line Items]
Derivative gains (losses)	$ 310	$ 441	$ (701)	$ 855

Earnings Per Share - Narrative (Details) - shares	3 Months Ended	6 Months Ended
Earnings Per Share - Narrative (Details) - shares	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants outstanding (in shares)		0
Public Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	20,699,993		20,699,993
Private Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	10,280,000		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

Variable Interest Entities

6 Months Ended

Jun. 30, 2023

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest EntitiesWe 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 June 30, 2023 and December 31, 2022. 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 condensed consolidated balance sheets:


	As of
	June 30, 2023		December 31, 2022
Current assets	$	1,106	$	3,678
Noncurrent assets	196		300
Total assets	$	1,302	$	3,978

Current liabilities	$	269	$	227

Total liabilities	$	269	$	227

Stockholders’ Equity - Narrative (Details) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended		20 Months Ended
	Jul. 20, 2023 USD ($)	May 11, 2023 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) vote $ / shares shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 $ / shares	Nov. 04, 2021 USD ($)
Class of Stock [Line Items]
Common stock, number of votes per share \| vote					1
Common stock, conversion ratio			1		1		1
Common stock, dividend (in dollars per share) \| $ / shares			$ 0.01		$ 0.01
Dividends, common stock			$ 440		$ 440
Distribution (in dollars per share) \| $ / shares		$ 0.01
Distributions		$ 2,900
Share repurchase program, amount authorized									$ 35,000
Shares repurchased (in shares) \| shares			0	341,271	0	2,484,717	2,984,987
Repurchases of stock				$ 1,600	$ 0	$ 13,054
Fees and commissions				$ 3		$ 25
Aggregate value of shares to be repurchased			$ 18,600		$ 18,600		$ 18,600
Number of common units redeemed for each share of Class A common stock repurchased (in shares) \| shares			1		1		1
Marketwise, LLC
Class of Stock [Line Items]
Ownership percentage			10.00%	7.20%	10.00%	7.20%	10.00%
Ownership percentage			90.00%	92.80%	90.00%	92.80%	90.00%
Subsequent Event
Class of Stock [Line Items]
Dividends, common stock	$ 300
Distributions	$ 2,900
Sponsor Earn Out Shares
Class of Stock [Line Items]
Earn out shares (in shares) \| shares			3,051,000		3,051,000		3,051,000
Management Earn Out Shares
Class of Stock [Line Items]
Earn out shares (in shares) \| shares			2,000,000		2,000,000		2,000,000
Common Stock - Class A
Class of Stock [Line Items]
Common stock, par value (USD per share) \| $ / shares			$ 0.0001		$ 0.0001		$ 0.0001	$ 0.0001
Common stock, dividend (in dollars per share) \| $ / shares		$ 0.01
Dividends, common stock		$ 400
Stock issued during period, conversion of units (in shares) \| shares			1,250,000
Common Stock - Class B
Class of Stock [Line Items]
Common stock, par value (USD per share) \| $ / shares			$ 0.0001		$ 0.0001		$ 0.0001	$ 0.0001
Issuance per redemption of Class B shares for Class A (in shares) \| shares			1,250,000
MarketWise, LLC Units
Class of Stock [Line Items]
Issuance per redemption of Class B shares for Class A (in shares) \| shares			1,250,000

Fair Value Measurements - Schedule of Fair Value Measurements Inputs (Details)	Jun. 30, 2023	Dec. 31, 2022
Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.3970	0.3730
Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.2220	0.2180
Credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0200	0.0020
Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0350	0.0350

Balance Sheet Components (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Property and Equipment, Net

Property and equipment, net consists of the following:


		As of
	Estimated Useful Lives	June 30, 2023		December 31, 2022
Furniture and fixtures	5 years	$	960	$	960
Computers, software and equipment	3 years	1,504		1,458
Leasehold improvements	Shorter of estimated useful life or remaining term of lease	1,278		1,278
		3,742		3,696
Less: Accumulated depreciation and amortization		(2,943)		(2,804)
Total property and equipment, net		$	799	$	892

Summary of Accrued Expenses

Accrued expenses consist of the following:


	As of
	June 30, 2023		December 31, 2022
Commission and variable compensation	$	20,211	$	24,207
Payroll and benefits	4,568		5,258

Other accrued expenses	13,579		16,511
Total accrued expenses	$	38,358	$	45,976

Goodwill and Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 1,699
2024	3,983
2025	2,539
2026	2,268
2027	1,647
Thereafter	1,957
Net Book Value	$ 14,093	$ 14,960

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial InstrumentsPrior 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 (the “Board”), that grant the holder value equal to a percentage of Net Income multiplied by a price multiple. All derivative instruments are recorded at fair value as derivative liabilities on our condensed consolidated balance sheets.

As of June 30, 2023, there is one embedded derivative instrument outstanding. The following table presents information on the location and amounts of derivative instrument gains and losses:


		Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income Statement
Warrants	Other income, net	$	—	$	12,082	$	—	$	18,799
Phantom Interests in Net Income	General and administrative	310		441		(701)		855
Total		$	310	$	12,523	$	(701)	$	19,654

See Note 5 – Fair Value Measurements for more information regarding the valuation of our derivative instruments.

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Liabilities:
Derivative liabilities, noncurrent	$ 1,982	$ 1,281
Recurring
Assets:
Total assets	90,560	80,327
Liabilities:
Total liabilities	1,982	1,281
Recurring \| Other
Liabilities:
Derivative liabilities, noncurrent	1,982	1,281
Recurring \| Money market funds
Assets:
Money market funds	90,560	80,327
Level 1 \| Recurring
Assets:
Total assets	90,560	80,327
Liabilities:
Total liabilities	0	0
Level 1 \| Recurring \| Other
Liabilities:
Derivative liabilities, noncurrent	0	0
Level 1 \| Recurring \| Money market funds
Assets:
Money market funds	90,560	80,327
Level 2 \| Recurring
Assets:
Total assets	0	0
Liabilities:
Total liabilities	0	0
Level 2 \| Recurring \| Other
Liabilities:
Derivative liabilities, noncurrent	0	0
Level 2 \| Recurring \| Money market funds
Assets:
Money market funds	0	0
Level 3 \| Recurring
Assets:
Total assets	0	0
Liabilities:
Total liabilities	1,982	1,281
Level 3 \| Recurring \| Other
Liabilities:
Derivative liabilities, noncurrent	1,982	1,281
Level 3 \| Recurring \| Money market funds
Assets:
Money market funds	$ 0	$ 0

Revenue Recognition - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net revenue	$ 103,644	$ 128,014	$ 229,877	$ 264,812
Related Party
Disaggregation of Revenue [Line Items]
Net revenue	281	548	899	726
Nonrelated Party
Disaggregation of Revenue [Line Items]
Net revenue	103,363	127,466	228,978	264,086
United States
Disaggregation of Revenue [Line Items]
Net revenue	103,644	128,001	229,786	264,712
International
Disaggregation of Revenue [Line Items]
Net revenue	0	13	91	100
Membership subscriptions
Disaggregation of Revenue [Line Items]
Net revenue	41,409	49,852	89,811	101,304
Term subscriptions
Disaggregation of Revenue [Line Items]
Net revenue	61,739	77,379	138,749	162,027
Non-subscription revenue
Disaggregation of Revenue [Line Items]
Net revenue	496	783	1,317	1,481
Transferred over time
Disaggregation of Revenue [Line Items]
Net revenue	103,148	127,231	228,560	263,331
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	496	783	1,317	1,481
Subscriptions
Disaggregation of Revenue [Line Items]
Net revenue	103,148	127,231	228,560	263,331
Subscriptions \| Transferred over time
Disaggregation of Revenue [Line Items]
Net revenue	103,148	127,231	228,560	263,331
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	169	160	316	437
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	169	160	316	437
Revenue Share \| Related Party
Disaggregation of Revenue [Line Items]
Net revenue	281	548	899	726
Revenue Share \| Nonrelated Party
Disaggregation of Revenue [Line Items]
Net revenue	46	75	102	318
Revenue Share \| Transferred over time \| Related Party
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Revenue Share \| Transferred over time \| Nonrelated Party
Disaggregation of Revenue [Line Items]
Net revenue	0	0	0	0
Revenue Share \| Transferred at a point in time \| Related Party
Disaggregation of Revenue [Line Items]
Net revenue	281	548	899	726
Revenue Share \| Transferred at a point in time \| Nonrelated Party
Disaggregation of Revenue [Line Items]
Net revenue	$ 46	$ 75	$ 102	$ 318

Organization	6 Months Ended
Organization	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization MarketWise, Inc. (“MarketWise,” “the Company,” “we,” “us,” or “our”) is a holding company that has no material assets other than its ownership in MarketWise, LLC, and operates and controls all of the businesses and operations of MarketWise, LLC and its subsidiaries. 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. On July 21, 2021, MarketWise, Inc. became a publicly traded company as a result of completing the business combination, recapitalization and other transactions with Ascendant Digital Acquisition Corp. (“ADAC” or “Sponsor”), a special purpose acquisition company, MarketWise, LLC, all of the members of MarketWise, LLC (the “MarketWise Members”), and Shareholder Representative Services LLC (collectively, the “Transactions”).

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Cash Flow Information

Supplemental cash flow disclosures are as follows:


	Six Months Ended June 30,
		2023		2022
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest		$	479	$	403
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		(994)		(1,259)
Operating lease right-of-use assets obtained in exchange for lease obligations		(76)		(795)


Supplemental Disclosures of Non-Cash Investing and Financing Activities:

Capitalized software included in accounts payable		59		167
Recording of deferred tax assets and capital contribution related to exchanges of Class B common stock to Class A common stock		1,289		—

		As of June 30,
		2023		2022
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents		$	187,022	$	151,185
Restricted cash		—		—
Total		$	187,022	$	151,185

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Significant Accounting Policies [Line Items]
Income tax expense	$ 427	$ 1,040	$ 1,355	$ 2,562
Gain on derivative warrant liabilities		$ 12,100		$ 18,800
Marketwise, LLC
Significant Accounting Policies [Line Items]
Ownership percentage	10.00%	7.20%	10.00%	7.20%
Noncontrolling interest ownership percentage	90.00%	92.80%	90.00%	92.80%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions We have certain revenue share agreements with related parties. Accordingly, we recognized revenue from related parties of $281 and $548 for the three months ended June 30, 2023 and 2022, respectively, and $899 and $726 for the six months ended June 30, 2023 and 2022, respectively. We incurred costs related to revenue share agreements with related parties which are capitalized within deferred contract acquisition costs. We capitalized $935 and $847 for the three months ended June 30, 2023 and 2022, respectively, and $2,087 and $1,770 for the six months ended June 30, 2023 and 2022, 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 $217 and $289 for the three months ended June 30, 2023 and 2022, respectively, and $353 and $494 for the six months ended June 30, 2023 and 2022, respectively. A related party provided marketing and copywriting services to the Company for which we recorded an expense within cost of revenue of $332 and $585 for the three and six months ended June 30, 2023, respectively. A related party also provided certain corporate functions to the Company and the costs of these services are charged to us. We recorded $27 and $22 for the three months ended June 30, 2023 and 2022, respectively, and $54 and $43 for the six months ended June 30, 2023 and 2022, respectively, within related party expense in the accompanying condensed consolidated statement of operations. We held balances of $296 and $1,043 as of June 30, 2023 and December 31, 2022, respectively, of related party payables related to revenue share expenses, call center support, and the services noted above. The balances with our related party are presented net and are included in related party payables, net in the condensed consolidated balance sheet. We earned fees and provided certain accounting and marketing services to companies owned by certain of MarketWise’s Class B stockholders. As a result, we recognized $205 and $86 in other income, net for the three months ended June 30, 2023 and 2022, respectively, and $507 and $253 for the six months ended June 30, 2023 and 2022, respectively. Related party receivables related to these services were $442 and $403 as of June 30, 2023 and December 31, 2022, respectively. We lease offices from related parties. Lease payments made to related parties were $435 and $528 for the three months ended June 30, 2023 and 2022, respectively, and $868 and $919 for the six months ended June 30, 2023 and 2022, respectively, and rent expense of $595 and $588 were recognized in general and administrative expenses for the three months ended June 30, 2023 and 2022, respectively, $1,200 and $1,141 for the six months ended June 30, 2023 and 2022, respectively, related to leases with related parties. At June 30, 2023 and December 31, 2022, ROU assets of $8,295 and $9,210 and lease liabilities of $6,454 and $7,041, respectively, are associated with leases with related parties. In April 2020 we provided a loan to a related party and recognized a related party note receivable from the unitholder of $1,148. We recognized $6 and $10 in interest income for the three and six months ended June 30, 2022, respectively. This loan was repaid in October 2022.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Goodwill and Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying amounts of goodwill are as follows:





Balance at December 31, 2022	$	31,307

Balance at June 30, 2023	$	31,307

Schedule of Indefinite-Lived Intangible Assets

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


	June 30, 2023
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	21,718	$	(11,241)	$	10,477	5.1
Tradenames	4,287		(2,499)		1,788		5.5
Capitalized software development costs	3,974		(2,146)		1,828		2.4
Finite-lived intangible assets, net	29,979		(15,886)		14,093

Indefinite-lived intangible assets:

Internet domain names	1,087		—		1,087
Indefinite-lived intangible assets, net	1,087		—		1,087
Intangible assets, net	$	31,066	$	(15,886)	$	15,180


	December 31, 2022
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	21,718	$	(9,924)	$	11,794	5.4
Tradenames	4,287		(2,265)		2,022		5.8
Capitalized software development costs	3,002		(1,858)		1,144		2.0
Finite-lived intangible assets, net	29,007		(14,047)		14,960

Indefinite-lived intangible assets:

Internet domain names	1,087		—		1,087
Indefinite-lived intangible assets, net	1,087		—		1,087
Intangible assets, net	$	30,094	$	(14,047)	$	16,047

Schedule of Finite-Lived Intangible Assets

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


	June 30, 2023
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	21,718	$	(11,241)	$	10,477	5.1
Tradenames	4,287		(2,499)		1,788		5.5
Capitalized software development costs	3,974		(2,146)		1,828		2.4
Finite-lived intangible assets, net	29,979		(15,886)		14,093

Indefinite-lived intangible assets:

Internet domain names	1,087		—		1,087
Indefinite-lived intangible assets, net	1,087		—		1,087
Intangible assets, net	$	31,066	$	(15,886)	$	15,180


	December 31, 2022
	Cost		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Finite-lived intangible assets:
Customer relationships	$	21,718	$	(9,924)	$	11,794	5.4
Tradenames	4,287		(2,265)		2,022		5.8
Capitalized software development costs	3,002		(1,858)		1,144		2.0
Finite-lived intangible assets, net	29,007		(14,047)		14,960

Indefinite-lived intangible assets:

Internet domain names	1,087		—		1,087
Indefinite-lived intangible assets, net	1,087		—		1,087
Intangible assets, net	$	30,094	$	(14,047)	$	16,047

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of June 30, 2023, the total expected future amortization expense for finite-lived intangible assets is as follows:


Remainder of 2023	$	1,699
2024	3,983
2025	2,539
2026	2,268
2027	1,647
Thereafter	1,957
Finite-lived intangible assets, net	$	14,093

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 9,743	$ 34,037	$ 40,348	$ 57,060
Other comprehensive loss:
Cumulative translation adjustment	(35)	(89)	(14)	(106)
Total comprehensive income	$ 9,708	$ 33,948	$ 40,334	$ 56,954

- Definition

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.

+ References + Details

- Definition

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

+ References

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+ Details

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue


	Three Months Ended June 30, 2023
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	103,148	$	—	$	—	$	—	$	103,148
Transferred at a point in time	—		169		281		46		496
Total	$	103,148	$	169	$	281	$	46	$	103,644


	Three Months Ended June 30, 2022
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	127,231	$	—	$	—	$	—	$	127,231
Transferred at a point in time	—		160		548		75		783
Total	$	127,231	$	160	$	548	$	75	$	128,014


	Six Months Ended June 30, 2023
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	228,560	$	—	$	—	$	—	$	228,560
Transferred at a point in time	—		316		899		102		1,317
Total	$	228,560	$	316	$	899	$	102	$	229,877


	Six Months Ended June 30, 2022
	Subscriptions		Advertising		Revenue Share (Related Party)		Revenue Share (Third-party)		Total
Timing of transfer:
Transferred over time	$	263,331	$	—	$	—	$	—	$	263,331
Transferred at a point in time	—		437		726		318		1,481
Total	$	263,331	$	437	$	726	$	318	$	264,812

Revenue recognition by subscription type was as follows:


	Three Months Ended June 30,	Six Months Ended June 30,
		2023		2022		2023		2022
Membership subscriptions		$	41,409	$	49,852	$	89,811	$	101,304
Term subscriptions		61,739		77,379		138,749		162,027
Non-subscription revenue		496		783		1,317		1,481
Total		$	103,644	$	128,014	$	229,877	$	264,812

Net revenue by principal geographic areas was as follows:


	Three Months Ended June 30,	Six Months Ended June 30,
		2023		2022		2023		2022
United States		$	103,644	$	128,001	$	229,786	$	264,712
International		—		13		91		100
Total		$	103,644	$	128,014	$	229,877	$	264,812

Summary of Contract Balances

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


	As of
	June 30, 2023		December 31, 2022
Contract balances
Accounts receivable	$	3,138	$	4,040
Obligations for refunds	$	3,866	$	4,676
Deferred revenue – current	$	284,509	$	310,555
Deferred revenue – non-current	$	340,032	$	348,273

Summary of Capitalized Costs Associated with Contracts With Customers

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














Balance at January 1, 2023	$	197,618
Royalties and sales commissions – additions	15,049
Revenue share and cost per acquisition fees – additions	19,637
Amortization of capitalized costs	(54,628)
Balance at June 30, 2023	$	177,676

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 07, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-39405
Entity Registrant Name	MarketWise, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1767914
Entity Address, Address Line One	1125 N. Charles Street
Entity Address, City or Town	Baltimore
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21201
City Area Code	(888)
Local Phone Number	261-2693
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	MKTW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001805651
Current Fiscal Year End Date	--12-31
Common Stock - Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		37,480,687
Common Stock - Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		289,842,303

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Preferred stock, par value (USD per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common Stock - Class A
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	950,000,000	950,000,000
Common stock, issued (in shares)	32,073,995	29,039,655
Common stock, outstanding (in shares)	32,073,995	29,039,655
Common Stock - Class B
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	289,842,303	291,092,303
Common stock, outstanding (in shares)	289,842,303	291,092,303

Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Supplemental Cash Flow Disclosures

Supplemental cash flow disclosures are as follows:


	Six Months Ended June 30,
		2023		2022
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest		$	479	$	403
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		(994)		(1,259)
Operating lease right-of-use assets obtained in exchange for lease obligations		(76)		(795)


Supplemental Disclosures of Non-Cash Investing and Financing Activities:

Capitalized software included in accounts payable		59		167
Recording of deferred tax assets and capital contribution related to exchanges of Class B common stock to Class A common stock		1,289		—

		As of June 30,
		2023		2022
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents		$	187,022	$	151,185
Restricted cash		—		—
Total		$	187,022	$	151,185

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,742	$ 3,696
Less: Accumulated depreciation and amortization	(2,943)	(2,804)
Total property and equipment, net	$ 799	892
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years
Property and equipment, gross	$ 960	960
Computers, software and equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Property and equipment, gross	$ 1,504	1,458
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,278	$ 1,278

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 3,678	$ 2,449	$ 7,381	$ 5,037
Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense			$ 1,144
Shares issued after withholding for tax (in shares)			417,684
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock (in shares)			4,525,609
Exercisable (in shares)	0		0
RSU and SAR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Total stock-based compensation expense	$ 2,443	2,312	$ 6,046	4,742
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock (in shares)			0
Exercisable (in shares)	417,523		417,523
Remaining contractual term			8 years 2 months 12 days
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)	6,728,300		6,728,300
Total stock-based compensation expense	$ 91	137	$ 191	295
Issued stock (in shares)			231,165,000
Purchase price of common stock, percent of fair market value			85.00%
Issued stock			$ 332,184
2021 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)	33,960,802		33,960,802
Total stock-based compensation expense	$ 3,587	$ 2,312	$ 7,190	$ 4,742
2021 Incentive Award Plan \| Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock (in shares)			715,000
2021 Incentive Award Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock (in shares)			4,525,609

Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

The following tables set forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Basic earnings per share:
Numerator:
Net income	$	9,743	$	34,037	$	40,348	$	57,060
Less: Net income attributable to noncontrolling interests	9,707		22,156		38,845		39,354
Net income attributable to Class A common stockholders	$	36	$	11,881	$	1,503	$	17,706

Denominator:
Weighted average shares outstanding (in thousands)	30,526		22,288		29,853		23,065

Basic earnings per share	$	—	$	0.53	$	0.05	$	0.77

Diluted earnings per share:
Numerator:
Net income	$	9,743	$	34,037	$	40,348	$	57,060
Less: Net income attributable to noncontrolling interests	9,707		22,156		38,845		39,354
Net income attributable to Class A common stockholders	$	36	$	11,881	$	1,503	$	17,706

Denominator:
Weighted average shares outstanding (in thousands)	31,837		22,296		31,162		23,069

Diluted earnings per share	$	—	$	0.53	$	0.05	$	0.77

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

▪Public and private placement warrants: the public and private placement warrants were "out of the money" during the three and six months ended June 30, 2022, therefore, net income per share excludes any impact of the 20,699,993 public warrants and 10,280,000 private placement warrants. The warrants were exchanged in September 2022 and there are no warrants outstanding as of June 30, 2023.

▪Sponsor and MarketWise management member earnout shares: the 3,051,000 Sponsor earnout shares and the 2,000,000 MarketWise management member earnout shares granted in connection with the closing of the Transactions held in escrow are excluded from the earnings per share computation in both periods since the earnout contingency has not been met.

▪Restricted stock units: The basic earnings per share calculation includes the impact of vested RSUs as of June 30, 2023 and June 30, 2022. The diluted earnings per share calculation includes the impact of dilutive RSUs and excludes the impact of antidilutive RSUs for the three and six months ended June 30, 2023 and 2022. The diluted earnings per share calculation for the three and six months ended June 30, 2023 excludes

certain RSUs with performance conditions, since the performance conditions have not been met as of June 30, 2022 and such RSUs were forfeited as of June 30, 2023.

▪Stock appreciation rights: The diluted earnings per share calculation for the three and six months ended June 30, 2023 and 2022 excludes the impact of SARs since the effect was antidilutive.

▪ESPP: The basic earnings per share calculation includes the impact of the shares that were issued under the ESPP as of June 30, 2023 and 2022.