MarketWise, Inc. (NASDAQ:MKTW) Q3 2022 Results Conference Call November 3, 2022 11:00 AM ET

Company Participants

Jonathan Shanfield - Director of Investor Relations

Mark Arnold - Chairman & Chief Executive Officer

James McGinness - Acting Chief Financial Officer

Conference Call Participants

Alex Kramm - UBS

Devin Ryan - JMP Securities

Jeffrey Meuler - Robert W. Baird

Kyle Peterson - Needham

Jason Helfstein - Oppenheimer

Operator

Thank you for standing by, and welcome to the MarketWise Third Quarter 2022 Earnings Call. I would now like to hand the conference over to Jonathan Shanfield, Head of Investor Relations at MarketWise. Thank you.

Jonathan Shanfield

Good morning, and thank you for joining us on today's conference call to discuss MarketWise's Third quarter 2022 financial results. On the call today, we have Mark Arnold, our Chief Executive Officer; and James McGinness, our acting Chief Financial Officer.

During the course of today's call, we may make forward-looking statements, including, but not limited to, statements regarding our guidance and future financial performance, market demand, growth prospects, business strategies and plans, and our ability to attract and retain customers. These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date, and we disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements. Information concerning our risks, uncertainties and other factors that could cause results to differ from these forward-looking statements are contained in our company's SEC filings, earnings press release, and supplemental information posted on the Investors section of the company's website.

Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, or in isolation from GAAP measures. Reconciliations to non-GAAP measures can be found in our earnings press release and SEC filings.

Now I'll turn the call over to Mark.

Mark Arnold

Thanks, John, and good morning, everybody. Welcome to our third-quarter 2022 earnings call. Before I get into our results, I want to comment on some of the forces impacting our business. The dynamics that we saw in the first half of this year with respect to the financial markets and macroeconomic conditions continued in the third quarter. Investor engagement continued to be subdued, given the heightened level of market volatility and macroeconomic uncertainty.

The Federal Reserve's aggressive efforts to combat inflation, including yesterday's rate increase, as many, believing that we are already in or soon will be in a recession. As a result, and as you might expect, investors remain cautious and continue to sit on the sidelines until there is more clarity on the direction of the financial markets. Our subscribers, both new and existing, are no different. They continue to evaluate market trends and the impact of monetary policy while delaying purchases of investment research before fully stepping back into the market. We have seen similar behavior patterns by retail investors and the industry force and metrics that we monitor. Industry trading platforms have recently reported declines in the number of daily average trades to levels last seen in late 2020.