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Related Party Transactions
12 Months Ended
Dec. 31, 2022
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 $2,363, $1,284 and $3,386 for the years ended December 31, 2022, 2021 and 2020, respectively.
We incurred costs related to revenue share agreements with related parties which are capitalized within deferred contract acquisition costs. We capitalized $3,110, $10,326 and $5,891 for the years ended December 31, 2022, 2021 and 2020, respectively.
A related party provided call center support and other services to the Company for which we recorded an expense within cost of revenue of $800, $1,260 and $1,005 for the years ended December 31, 2022, 2021 and 2020, respectively.
We recorded fees paid to members of our Board of Directors of $293, $152 and $0 for the years ended December 31, 2022, 2021 and 2020, respectively, within related party expense in the accompanying consolidated statement of operations.
A related party also provided certain corporate functions to the Company and the costs of these services are recorded within related party expense in the accompanying consolidated statement of operations. We recorded $85, $92 and $122 for the years ended December 31, 2022, 2021 and 2020, respectively. We held balances of $1,043 and $1,037 as of December 31, 2022 and December 31, 2021 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 consolidated balance sheet.
We earned fees and provided certain accounting and marketing services to companies owned by certain of MarketWise’s Class B unitholders. As a result, we recognized $656, $358 and $348 in other income, net for the years ended December 31, 2022, 2021 and 2020, respectively. Related party receivables related to these services were $403 and $358 as of December 31, 2022 and 2021, respectively.
We lease offices from related parties. Lease payments made to related parties were $1,824, $1,536 and $1,505 for the years ended December 31, 2022, 2021 and 2020, respectively, and rent expense of $2,378, $2,224 and $2,224 were recognized in general and administrative expenses for the years ended December 31, 2022, 2021 and 2020,
respectively, related to leases with related parties. At December 31, 2022 and 2021, respectively, ROU assets of $9,210 and $10,323 and lease liabilities of $7,041 and $7,545 are associated with leases with related parties.
In April 2020 we provided a loan to a Class A unitholder and recognized a related party note receivable from the unitholder of $1,148. We recognized $17 and $10 in interest income for the years ended December 31, 2022 and 2021, respectively. The related party note receivable balance was $1,158 as of December 31, 2021. This loan was repaid in October 2022.
In July 2021, the Company’s board approved and made a discretionary, one-time, lifetime-award, non-employee bonus payment of $10,000 to the Company’s founder, who is a Class B common stockholder, which was recorded within related party expense in the consolidated statement of operations.
We incurred costs related to lead generation marketing from a related party vendor which was partially owned by a shareholder through November 2020. We purchased lead generation marketing totaling $15,326 for the year ended December 31, 2020, which was recorded in sales and marketing expenses.
In August 2019, we provided an additional loan to a Class B unitholder and recognized a related party note receivable from the unitholder of $3,000. We recognized $25 in interest income for the year ended December 31, 2020. This loan was repaid in June 2020.