Delivered Third Quarter Revenue and Cash
Used in Operations Ahead of the Midpoint of Guidance
Reduced Our Cash Used in Operations to $0.2
Million from $6.5 Million in the Second Quarter
Turnaround Plan Underway
The Beachbody Company, Inc. (NYSE: BODY) (“BODi” or the
“Company”), a leading subscription health and wellness company,
today announced financial results for its third quarter ended
September 30, 2023.
"We are pleased with our third quarter results, with revenue,
Adjusted EBITDA and cash used in operations once again within our
guidance range. We are encouraged by the advancements we have made
in our company transformation, particularly in our cost reduction
efforts and reinventing our digital platform,” said Carl Daikeler,
BODi’s Co-Founder and Chief Executive Officer. “For the remainder
of the year, we are intensely focused on the execution of our sales
and marketing initiatives, which we believe will drive activation,
engagement and increased efficiency. Our turnaround is in place and
we are building towards increasing liquidity and driving revenues
that are more profitable. I would like to thank the BODi team for
their extremely hard work, as we continue on our
transformation.”
Third Quarter 2023 Results
- Total revenue was $128.3 million compared to $166.0 million in
the prior year period.
- Digital revenue was $64.3 million compared to $72.2 million in
the prior year period and digital subscriptions totaled 1.38
million in the third quarter.
- Nutrition and Other revenue was $59.0 million compared to $90.4
million in the prior year period and nutritional subscriptions
totaled 0.18 million in the third quarter.
- Connected Fitness revenue was $4.9 million compared to $3.3
million in the prior year period and approximately 6,500 bikes were
delivered in the third quarter.
- Total operating expenses was $104.0 million compared to $140.9
million in the prior year period.
- Operating loss improved by $7.2 million to $29.0 million
compared to an operating loss of $36.2 million in the prior year
period.
- Net loss was $32.7 million compared to a net loss of $33.9
million in the prior year period.
- Adjusted EBITDA1 was $(5.8) million compared to $(6.2) million
in the prior year period.
- Cash used in operating activities for the nine months ended
September 30, 2023 was $14.6 million compared to $36.9 million in
the prior year period, and cash used in investing activities was
$9.7 million compared to $23.2 million in the prior year period.
Total cash used in operating and investing activities was $24.3
million compared to $60.1 million in the prior year period.
Marc Suidan, Chief Financial Officer, stated: "In the quarter,
our cash used in operations was $0.2 million compared to our
guidance of cash used of less than $5 million. Year to date, cash
used in operating and investing activities was $24 million,
compared to $60 million last year and $248 million from 2021. We
continue to manage our cash use and are reducing cash needs.”
Key Operational and Business
Metrics
For the
Three Months Ended
September 30,
For the
Nine Months Ended
September 30,
2023
2022
Change v
2022
2023
2022
Change v
2022
Digital Subscriptions (in millions)
1.38
2.10
(34.3
%)
1.38
2.10
(34.3
%)
Nutritional Subscriptions (in
millions)
0.18
0.24
(25.2
%)
0.18
0.24
(25.2
%)
Total Subscriptions
1.56
2.34
(33.4
%)
1.56
2.34
(33.4
%)
Average Digital Retention
96.2
%
95.7
%
50bps
95.7
%
95.6
%
10bps
Total Streams (in millions)
22.9
27.5
(16.6
%)
77.9
96.7
(19.4
%)
DAU/MAU
30.8
%
29.5
%
130bps
31.6
%
30.4
%
120bps
Connected Fitness Units Delivered (in
thousands)
6.5
2.3
182.7
%
16.7
27.7
(39.6
%)
Digital
$
64.3
$
72.2
(10.9
%)
$
194.3
$
232.0
(16.2
%)
Nutrition & Other
$
59.0
$
90.4
(34.8
%)
$
197.7
$
278.6
(29.0
%)
Connected Fitness
$
4.9
$
3.3
48.0
%
$
16.0
$
33.4
(52.0
%)
Revenue (in millions)
$
128.3
$
166.0
(22.7
%)
$
408.1
$
544.0
(25.0
%)
Net Income/(Loss) (in millions)
$
(32.7
)
$
(33.9
)
3.5
%
$
(87.6
)
$
(149.3
)
41.3
%
Adjusted EBITDA (in millions)
$
(5.8
)
$
(6.2
)
6.5
%
$
(11.5
)
$
(26.8
)
57.1
%
Outlook for The Fourth Quarter of
2023
Outlook
For Quarter Ending December 31, 2023
(in millions)
Revenue
$
105
$
115
Net Loss
$
(30
)
$
(25
)
Adjustments:
Depreciation and Amortization
$
8
$
8
Amortization of Content Assets
$
5
$
5
Interest Expense
$
2
$
2
Equity-Based Compensation
$
5
$
5
Other Adjustment Items
$
4
$
4
Total Adjustments
$
24
$
24
Adjusted EBITDA
$
(6
)
$
(1
)
1 A definition of Adjusted EBITDA
and reconciliation to net loss is at the end of this release.
Conference Call and Webcast Information
BODi will host a conference call at 5:00pm ET on Tuesday,
November 7, 2023, to discuss its financial results and matters
other than past results, such as guidance. To participate in the
live call, please dial (833) 470-1428 (U.S. & Canada), or +1
(929) 526-1599 (all other locations) and provide the conference
identification number: 617252. The conference call will also be
available to interested parties through a live webcast at
https://investors.thebeachbodycompany.com/.
A replay of the call will be available until November 14, 2023,
by dialing (866) 813-9403 (U.S & Canada), or + 44 (204)
525-0658 (all other locations). The replay passcode is 696320.
After the conference call, a webcast replay will remain
available on the investor relations section of the Company’s
website for one year.
About BODi and The Beachbody Company, Inc.
Known as Beachbody for 24 years with such innovations such as
P90X, Insanity, 21-Day Fix and Shakeology, the Company recently
began referring to itself as BODi, which stands for Beachbody On
Demand Interactive. The Company is headquartered in El Segundo,
California. BODi is a leading company in the Health Esteem
category, which combines digital fitness, nutrition, and mindset
content with exceptional nutritional supplements. The BODi
community represents millions of people supporting each other in
their pursuit of a better life through weight loss, fitness,
nutrition, and an improved mindset. The Beachbody Company, Inc. is
the parent company of BODi. For more information, please visit
TheBeachbodyCompany.com.
Safe Harbor Statement
This press release of The Beachbody Company, Inc. (“we,” “us,”
“our,” and similar terms) contains "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are statements other than statements of historical
facts and statements in future tense. These statements include but
are not limited to, statements regarding our future performance and
our market opportunity, including expected financial results for
the second quarter and full year, our business strategy, our plans,
and our objectives and future operations.
Forward-looking statements are based upon various estimates and
assumptions, as well as information known to us as of the date
hereof, and are subject to risks and uncertainties. Accordingly,
actual results could differ materially due to a variety of factors,
including: our ability to effectively compete in the fitness and
nutrition industries; our ability to successfully acquire and
integrate new operations; our reliance on a few key products;
market conditions and global and economic factors beyond our
control; intense competition and competitive pressures from other
companies worldwide in the industries in which we operate; and
litigation and the ability to adequately protect our intellectual
property rights. You can identify these statements by the use of
terminology such as "believe", “plans”, "expect", "will", "should,"
"could", "estimate", "anticipate" or similar forward-looking terms.
You should not rely on these forward-looking statements as they
involve risks and uncertainties that may cause actual results to
vary materially from the forward-looking statements. For more
information regarding the risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in these forward-looking statements, as well as risks relating to
our business in general, we refer you to the "Risk Factors" section
of our Securities and Exchange Commission (SEC) filings, including
those risks and uncertainties included in the Form 10-K filed with
the SEC on March 16, 2023 and any subsequent Quarterly Reports on
Form 10-Q or Current Reports on Form 8-K, which are available on
the Investor Relations page of our website at
https://investors.thebeachbodycompany.com and on the SEC website at
www.sec.gov.
All forward-looking statements contained herein are based on
information available to us as of the date hereof and you should
not rely upon forward-looking statements as predictions of future
events. The events and circumstances reflected in the
forward-looking statements may not be achieved or occur. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
performance, or achievements. We undertake no obligation to update
any of these forward-looking statements for any reason after the
date of this press release or to conform these statements to actual
results or revised expectations, except as required by law. Undue
reliance should not be placed on forward-looking statements.
The Beachbody Company,
Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except share
and per share data)
September 30,
December 31,
2023
2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
38,191
$
80,091
Restricted short-term investments
4,250
—
Inventory, net
31,747
54,060
Prepaid expenses
8,753
13,055
Other current assets
47,733
39,248
Total current assets
130,674
186,454
Property and equipment, net
50,328
74,147
Content assets, net
26,605
34,888
Goodwill
125,166
125,166
Intangible assets, net
4,370
8,204
Right-of-use assets, net
3,541
5,030
Other assets
6,640
9,506
Total assets
$
347,324
$
443,395
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
16,116
$
17,940
Accrued expenses
46,190
64,430
Deferred revenue
101,812
95,587
Current portion of lease liabilities
2,089
2,150
Current portion of Term Loan
1,250
1,250
Other current liabilities
5,307
3,283
Total current liabilities
172,764
184,640
Term Loan
27,742
39,735
Long-term lease liabilities, net
1,698
3,318
Deferred tax liabilities
60
181
Other liabilities
3,989
3,979
Total liabilities
206,253
231,853
Stockholders’ equity:
Preferred stock, $0.0001 par value;
100,000,000 shares authorized, none issued and outstanding at
September 30, 2023 and December 31, 2022
—
—
Common stock, $0.0001 par value,
1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000
Class X and 100,000,000 Class C);
Class A: 176,264,868 and 170,911,819
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively;
18
17
Class X: 136,450,256 and 141,250,310
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively;
14
14
Class C: no shares issued and outstanding
at September 30, 2023 and December 31, 2022
—
—
Additional paid-in capital
648,071
630,709
Accumulated deficit
(506,837
)
(419,235
)
Accumulated other comprehensive income
(loss)
(195
)
37
Total stockholders’ equity
141,071
211,542
Total liabilities and stockholders’
equity
$
347,324
$
443,395
The Beachbody Company,
Inc.
Unaudited Condensed
Consolidated Statements of Operations
(in thousands, except per
share data)
Three months ended
September 30,
Nine months ended
September 30,
2023
2022
2023
2022
Revenue:
Digital
$
64,339
$
72,228
$
194,326
$
231,988
Nutrition and other
58,981
90,416
197,729
278,596
Connected fitness
4,930
3,331
16,044
33,449
Total revenue
128,250
165,975
408,099
544,033
Cost of revenue:
Digital
16,429
16,078
47,732
50,909
Nutrition and other
26,699
40,486
84,940
127,262
Connected fitness
10,091
4,745
26,312
80,910
Total cost of revenue
53,219
61,309
158,984
259,081
Gross profit
75,031
104,666
249,115
284,952
Operating expenses:
Selling and marketing
69,127
93,145
222,195
286,213
Enterprise technology and development
18,879
25,686
56,625
83,516
General and administrative
14,759
19,532
44,362
59,189
Restructuring
1,270
1,492
6,550
10,047
Impairment of intangible assets
—
1,000
—
1,000
Total operating expenses
104,035
140,855
329,732
439,965
Operating loss
(29,004
)
(36,189
)
(80,617
)
(155,013
)
Other income (expense):
Loss on partial debt extinguishment
(3,168
)
—
(3,168
)
—
Change in fair value of warrant
liabilities
1,072
2,362
1,504
4,696
Interest expense
(2,074
)
(1,152
)
(6,773
)
(1,174
)
Other income, net
571
571
1,551
696
Loss before income taxes
(32,603
)
(34,408
)
(87,503
)
(150,795
)
Income tax (provision) benefit
(63
)
549
(99
)
1,536
Net loss
$
(32,666
)
$
(33,859
)
$
(87,602
)
$
(149,259
)
Net loss per common share, basic and
diluted
$
(0.11
)
$
(0.11
)
$
(0.28
)
$
(0.49
)
Weighted-average common shares
outstanding, basic and diluted
308,931
307,949
310,794
307,178
The Beachbody Company,
Inc.
Unaudited Condensed
Consolidated Statements of Cash Flows
(in thousands)
Nine months ended September
30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(87,602
)
$
(149,259
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Impairment of intangible assets
—
1,000
Depreciation and amortization expense
31,395
58,858
Amortization of content assets
16,487
18,673
Provision for inventory and inventory
purchase commitments
9,370
35,195
Realized (gains) losses on hedging
derivative financial instruments
131
141
Change in fair value of warrant
liabilities
(1,504
)
(4,696
)
Equity-based compensation
19,152
13,166
Deferred income taxes
(166
)
(1,754
)
Amortization of debt issuance costs
1,288
262
Paid-in-kind interest expense
1,042
221
Non-cash component of loss on partial debt
extinguishment
2,418
—
Other non-cash items
—
311
Changes in operating assets and
liabilities:
Inventory
11,884
31,676
Content assets
(8,201
)
(16,111
)
Prepaid expenses
4,302
8,681
Other assets
(4,531
)
4,496
Accounts payable
(1,471
)
(30,379
)
Accrued expenses
(15,809
)
(209
)
Deferred revenue
6,995
(3,690
)
Other liabilities
237
(3,525
)
Net cash used in operating activities
(14,583
)
(36,943
)
Cash flows from investing
activities:
Purchase of property and equipment
(5,499
)
(23,236
)
Investment in restricted short-term
investments
(4,250
)
—
Net cash used in investing activities
(9,749
)
(23,236
)
Cash flows from financing
activities:
Proceeds from exercise of stock
options
—
3,162
Remittance of taxes withheld from employee
stock awards
—
(308
)
Debt borrowings
—
50,000
Debt repayments
(15,938
)
(313
)
Proceeds from issuance of common shares in
the Employee Stock Purchase Plan
384
—
Tax withholding payments for vesting of
restricted stock
(2,173
)
(183
)
Payment of debt issuance costs
—
(4,075
)
Net cash (used in) provided by financing
activities
(17,727
)
48,283
Effect of exchange rates on cash and cash
equivalents
159
(1,095
)
Net decrease in cash and cash
equivalents
(41,900
)
(12,991
)
Cash, cash equivalents and restricted
cash, beginning of period
80,091
107,054
Cash and cash equivalents, end of
period
$
38,191
$
94,063
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest
$
4,177
$
738
Cash (received) paid during the period for
income taxes, net
(10
)
365
Supplemental disclosure of noncash
investing activities:
Property and equipment acquired but not
yet paid for
$
267
$
789
Supplemental disclosure of noncash
financing activities:
Warrants issued in relation to Term
Loan
$
—
$
5,236
Change in fair value of Term Loan warrants
due to amended exercise price
802
—
Debt issuance costs, accrued but not
paid
—
136
Paid-in-kind fee recorded as incremental
debt issuance cost
488
—
The Beachbody Company, Inc. Adjusted EBITDA
In addition to our results determined in accordance with
accounting principles generally accepted in the United States, or
GAAP, we believe the following non-GAAP financial measure of
Adjusted EBITDA is useful in evaluating our operating
performance.
We define and calculate Adjusted EBITDA as net income (loss)
adjusted for depreciation and amortization, amortization of
capitalized cloud computing implementation costs, amortization of
content assets, interest expense, income taxes, equity-based
compensation, inventory net realizable value adjustments,
restructuring, change in fair value of warrant liabilities, and
other items that are not normal, recurring, operating expenses
necessary to operate the Company’s business.
The presentation of this non-GAAP financial measure is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in
accordance with GAAP. Investors are encouraged to review the
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP financial measure. A reconciliation of our
non-GAAP Adjusted EBITDA to GAAP net income (loss) can be found
below:
Three months ended
September 30,
Nine months ended
September 30,
(in thousands)
2023
2022
2023
2022
Net loss
$
(32,666
)
$
(33,859
)
$
(87,602
)
$
(149,259
)
Adjusted for:
Impairment of intangible assets
—
1,000
—
1,000
Loss on partial debt extinguishment
(1)
3,168
—
3,168
—
Depreciation and amortization
9,763
17,306
31,395
58,858
Amortization of capitalized cloud
computing implementation costs
41
126
122
462
Amortization of content assets
5,467
5,493
16,487
18,673
Interest expense
2,074
1,152
6,773
1,174
Income tax provision (benefit)
63
(549
)
99
(1,536
)
Equity-based compensation
6,436
5,601
19,152
13,166
Employee incentives, expected to be
settled in equity (2)
—
—
(5,466
)
—
Inventory net realizable value adjustment
(3)
—
(1,867
)
—
23,569
Restructuring and platform consolidation
costs (4)
1,270
1,745
7,222
11,718
Change in fair value of warrant
liabilities
(1,072
)
(2,362
)
(1,504
)
(4,696
)
Non-operating (5)
(377
)
(15
)
(1,340
)
63
Adjusted EBITDA
$
(5,833
)
$
(6,229
)
$
(11,494
)
$
(26,808
)
1 Represents the loss related to the $15.0 million partial debt
prepayment that the Company made on July 24, 2023. 2 The non-cash
charge for employee incentives which were expected to be settled in
equity was recorded and included in the Adjusted EBITDA calculation
during the year ended December 31, 2022. During the three months
ended March 31, 2023, we reclassified the non-cash charge from
employee incentives expected to be settled in equity to
equity-based compensation because we settled certain employee
incentives with RSU awards during the period. 3 Represents a
non-cash expense to reduce the carrying value of our connected
fitness inventory and related future commitments. This adjustment
was included during the three and nine months ended September 30,
2022, because of its unusual magnitude due to disruptions in the
connected fitness market. 4 Includes restructuring expense and
personnel costs associated with executing our key growth priorities
during the three and nine months ended September 30, 2023, and with
the consolidation of our digital platforms during the three and
nine months ended September 30, 2022. 5 Primarily includes interest
income.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107266487/en/
Investor Relations ICR, Inc. BeachbodyIR@icrinc.com
Grafico Azioni Beachbody (NYSE:BODY)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Beachbody (NYSE:BODY)
Storico
Da Giu 2023 a Giu 2024