Financial Performance - The Beachbody Company reported a quarterly loss of $1.75 per share, slightly better than the Zacks Consensus Estimate of a loss of $1.76, and a significant improvement from a loss of $5 per share a year ago, indicating an earnings surprise of 0.57% [1] - The company posted revenues of $102.19 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.40%, and down from $128.25 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - The Beachbody Company shares have declined approximately 19.7% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.57 on revenues of $98.2 million, and for the current fiscal year, it is -$7.02 on revenues of $431.1 million [7] Industry Outlook - The Consumer Services - Miscellaneous industry, to which The Beachbody Company belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of The Beachbody Company stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Revenue Performance - Total revenue for Q3 2024 was $102.2 million, a 20% decrease compared to Q3 2023[141] - For the nine months ended September 30, 2024, total revenue was $332.4 million, a 19% decrease year-over-year[142] - Total revenue decreased by 20% to $102,193,000 for the three months ended September 30, 2024, down from $128,250,000 in the same period of 2023[167] - Total revenue for the nine months ended September 30, 2024, was $332,422 thousand, a decrease of 19% compared to $408,099 thousand in 2023[170] Digital Revenue - Digital revenue decreased by 17% to $53.7 million, while nutrition and other revenue also decreased by 20% to $47.4 million[141] - Digital revenue declined by 17% to $53,702,000 for the three months ended September 30, 2024, primarily due to a 20% decrease in subscriptions[167] - Digital revenue decreased by $20,347 thousand, or 10%, for the nine months ended September 30, 2024, primarily due to a $19.9 million decrease in digital streaming services revenue[170] Nutrition and Other Revenue - Nutrition and other revenue fell by 20% to $47,416,000 for the three months ended September 30, 2024, attributed to a 27% decrease in nutritional subscriptions[168] - Nutrition and other revenue decreased by $44,700 thousand, or 23%, for the nine months ended September 30, 2024, attributed to a 27% decrease in nutritional subscriptions[170] Connected Fitness Revenue - Connected fitness revenue saw a significant decline of 78%, totaling $1.1 million[141] - Connected fitness revenue decreased by approximately 66% for the nine months ended September 30, 2024, from $16,044 thousand in 2023 to $5,414 thousand in 2024[170] Profit and Loss - The company reported a net loss of $12.0 million for Q3 2024, an improvement from a net loss of $32.7 million in Q3 2023[141] - The company experienced a net loss of $12,003,000 for the three months ended September 30, 2024, compared to a net loss of $32,666,000 for the same period in 2023[160] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $10.1 million, compared to a loss of $5.8 million in the same period last year[141] - Adjusted EBITDA for the three months ended September 30, 2024, was $10,136,000, compared to an Adjusted EBITDA loss of $5,833,000 for the same period in 2023[160] Restructuring and Workforce Changes - The company announced a restructuring plan (the "Pivot") that will reduce headcount by approximately 170 employees, representing 33% of the workforce[141] - The Pivot is expected to incur approximately $18.4 million in costs, with $9.2 million recorded in Q3 2024[145] Expenses - Operating expenses totaled $81,821,000 for the three months ended September 30, 2024, compared to $104,035,000 for the same period in 2023[164] - Selling and marketing expenses for the three months ended September 30, 2024, were $45,592 thousand, a decrease of 34% from $69,127 thousand in 2023[184] - General and administrative expenses for the three months ended September 30, 2024, decreased by $2.999 million (20%) compared to the same period in 2023, mainly due to a $1.5 million decrease in professional and accounting fees[191] Cash Flow and Liquidity - As of September 30, 2024, the company had cash and cash equivalents totaling $32.3 million, with net cash used in financing activities decreasing to $11.8 million from $17.7 million in the previous year[203][205] - The company generated $1.6 million in net cash from investing activities for the nine months ended September 30, 2024, compared to $(9.7) million in the same period of 2023, driven by proceeds from the sale of the Van Nuys facility[204] - The company expects to generate additional liquidity through continued cost control initiatives and believes existing cash and cash equivalents will meet anticipated cash needs for the next twelve months[210] Tax and Compliance - The income tax provision increased by $52,000 (83%) for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to changes in valuation allowance and net expense from discrete events[201] - The company is in compliance with financial covenants, including a minimum liquidity requirement of $18.0 million as of September 30, 2024, which will be amended to $9.5 million through December 31, 2024[207][208] Other Financial Metrics - The company recorded a gross profit of $68,811,000 for the three months ended September 30, 2024, down from $75,031,000 in the same period of 2023[164] - The principal balance outstanding under the Term Loan was $25.3 million as of September 30, 2024, with an effective interest rate of 23.35% for the nine months ended September 30, 2024[206]

Revenue Performance - Total revenue for Q3 2024 was $102.2 million, a decrease of 20.3% compared to $128.3 million in Q3 2023[3]. - Digital revenue was $53.7 million, down 16.5% from $64.3 million in the prior year, with digital subscriptions totaling 1.11 million, a decline of 19.7%[4]. - Nutrition and Other revenue was $47.4 million, a decrease of 19.6% from $59.0 million in the prior year, with nutritional subscriptions totaling 0.13 million, down 27.3%[4]. - Connected Fitness revenue fell to $1.1 million, down 78.2% from $4.9 million in the prior year, with approximately 1,300 bikes delivered in Q3[4]. - The outlook for Q4 2024 projects revenue between $77 million and $87 million[8]. - Digital revenue decreased to $53.7 million in Q3 2024 from $64.3 million in Q3 2023, representing a decline of 16.8%[18]. - Nutrition and other revenue fell to $47.4 million in Q3 2024, down 19.5% from $59.0 million in Q3 2023[18]. Profitability and Loss - Adjusted EBITDA for Q3 2024 was $10.1 million, compared to a loss of $5.8 million in the prior year[4]. - Net loss for Q3 2024 was $12.0 million, significantly improved from a net loss of $32.7 million in the prior year, including $9.2 million in restructuring costs[4]. - The company reported a net loss of $12.0 million in Q3 2024, compared to a net loss of $32.7 million in Q3 2023, showing an improvement of 63.3%[18]. - Operating loss for Q3 2024 was $13.0 million, significantly reduced from an operating loss of $29.0 million in Q3 2023[18]. - Adjusted EBITDA is used to evaluate the company's core operating performance, excluding non-cash and non-recurring expenses[20][21][22]. - The company reported a net loss of $12,003,000 for the three months ended September 30, 2024, compared to a net loss of $32,666,000 for the same period in 2023, representing a 63.2% improvement[23]. - Adjusted EBITDA for the three months ended September 30, 2024, was $10,136,000, compared to an Adjusted EBITDA loss of $5,833,000 in the same period of 2023, indicating a significant turnaround[23]. Operating Expenses and Cash Flow - Total operating expenses decreased to $81.8 million, down from $104.0 million in the prior year[4]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $9.3 million, compared to cash used of $14.6 million in the prior year[4]. - Cash flows from operating activities provided $9.3 million in Q3 2024, a significant improvement compared to cash used of $14.6 million in Q3 2023[19]. - The company ended Q3 2024 with cash, cash equivalents, and restricted cash of $32.3 million, down from $38.2 million at the end of Q3 2023[19]. - Free cash flow for the nine months ended September 30, 2024, was $5,317,000, compared to a negative free cash flow of $20,082,000 for the same period in 2023, showing a positive shift in cash generation[28]. Strategic Initiatives - The company announced a strategic shift from a multi-level marketing model to a single-level affiliate network, aiming for long-term profitable growth[2]. - The company plans to continue focusing on digital and nutrition segments while managing costs to improve profitability[20]. - The company announced a restructuring initiative called the Pivot, which will convert its MLM model to a single-level affiliate model and reduce its workforce by approximately 170 employees, or 33% of its workforce[29]. - Total restructuring costs associated with the Pivot are expected to be approximately $18.4 million, with $9.2 million recorded in the three and nine months ended September 30, 2024[29]. - The company expects to record an additional $1.1 million in restructuring expenses in the three months ended December 31, 2024, related to the Pivot[30]. Asset Management - Accelerated depreciation expense of $2.9 million was recorded due to the Pivot, impacting certain long-lived assets that will not be used after December 31, 2024[30]. - Inventory adjustments of $1.2 million were made due to the decision to cease the sale of connected fitness inventory after December 31, 2024[30]. - The company recorded a loss on partial debt extinguishment of $1,928,000 for the nine months ended September 30, 2024, compared to a loss of $3,168,000 for the same period in 2023[23].

Core Viewpoint - Beachbody is restructuring its business model by transitioning from a multi-level marketing structure to a single-level affiliate program, resulting in significant layoffs and cost-cutting measures [1][2][4]. Group 1: Business Model Changes - The company will lay off nearly 200 workers, which is about one-third of its workforce of approximately 580 employees, as part of the restructuring [2][3]. - The new affiliate model will financially reward individuals for driving traffic, leads, or sales through promotional and marketing efforts, aiming for a simpler and more modern approach [2][3]. Group 2: Financial Implications - Beachbody anticipates that the cost-cutting measures will save the company $54 million on overhead [4]. - The restructuring will lower the revenue break-even point from less than $430 million to less than $225 million in annual revenue [4]. - The company expects its revenue for the third quarter ending September 30 to be in the range of $97 million to $107 million [4].

分组1 - The Beachbody Company reported a quarterly loss of $1.59 per share, which was better than the Zacks Consensus Estimate of a loss of $2.30, and an improvement from a loss of $4 per share a year ago, resulting in an earnings surprise of 30.87% [1] - The company posted revenues of $110.18 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.47%, and down from $134.95 million in the same quarter last year [2] - The stock has underperformed the market, losing about 15.4% since the beginning of the year compared to the S&P 500's gain of 8.7% [3] 分组2 - The current consensus EPS estimate for the coming quarter is -$1.81 on revenues of $106.6 million, and for the current fiscal year, it is -$7.83 on revenues of $442.9 million [7] - The Zacks Industry Rank for Consumer Services - Miscellaneous is in the top 44% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Financial Performance - For the three months ended June 30, 2024, total revenue was $110.2 million, an 18% decrease compared to $134.9 million for the same period in 2023[115] - Digital revenue was $58.8 million, a 10% decrease, while nutrition and other revenue was $50.1 million, a 22% decrease[115] - Connected fitness revenue was $1.3 million, reflecting a 74% decrease[115] - Net loss for the three months was $10.9 million, compared to a net loss of $25.7 million in the prior year[115] - Adjusted EBITDA was $4.9 million, compared to a loss of $4.8 million in the same period last year[115] - Total revenue for Q2 2024 was $110.2 million, a decrease of 18% compared to $134.9 million in Q2 2023[130] - For the six months ended June 30, 2024, total revenue was $230.2 million, down 18% from $279.8 million in the same period of 2023[135] Revenue Breakdown - Digital revenue decreased by 10% to $58.8 million in Q2 2024 from $65.2 million in Q2 2023, primarily due to a 25% reduction in subscriptions[133] - Nutrition and other revenue fell by 22% to $50.1 million in Q2 2024 from $64.6 million in Q2 2023, driven by a 26% decrease in nutritional subscriptions[134] - Connected fitness revenue dropped 74% to $1.3 million in Q2 2024 from $5.1 million in Q2 2023, attributed to a 70% decrease in bikes delivered[134] Operating Expenses - Operating expenses were $85.9 million, down from $106.9 million[115] - Total operating expenses for Q2 2024 were $85.9 million, down from $106.9 million in Q2 2023[130] - Selling and marketing expenses decreased by 26% to $56,308,000 in Q2 2024 from $76,492,000 in Q2 2023, representing 51.1% of total revenue[145] - General and administrative expenses for the three months ended June 30, 2024, were $12.4 million, an increase of $0.5 million (4%) compared to $11.9 million for the same period in 2023[153] - General and administrative expenses as a percentage of total revenue increased by 240 basis points to 11.2% for the three months ended June 30, 2024, compared to 8.8% in the prior year[154] - For the six months ended June 30, 2024, general and administrative expenses decreased by $3.7 million (13%) to $25.9 million from $29.6 million in the same period in 2023[155] Profitability Metrics - Digital gross profit decreased by 3% to $47,295,000 in Q2 2024 compared to $48,878,000 in Q2 2023, while gross margin increased to 80.5% from 75.0%[141] - Nutrition and other gross profit decreased by 19% to $30,480,000 in Q2 2024 from $37,426,000 in Q2 2023, with gross margin improving to 60.8% from 57.9%[141] - Connected fitness cost of revenue decreased by 69% to $2,710,000 in Q2 2024 from $8,666,000 in Q2 2023, with a gross margin improvement to -106.7% from -69.7%[141] - Total gross profit for the first six months of 2024 was $157,658,000, down 9% from $174,084,000 in the same period of 2023[143] - The gross margin for total revenue improved to 68.5% in the first six months of 2024 from 62.2% in the same period of 2023[143] Cash Flow and Debt - Net cash provided by operating activities was $8.2 million for the six months ended June 30, 2024, compared to a net cash used of $(14.4) million in the same period in 2023[165] - As of June 30, 2024, the principal balance outstanding under the Term Loan was $25.4 million, following several partial prepayments totaling $15.5 million in 2024[167] - The company made a partial prepayment of $4.0 million on the Term Loan as part of the Fifth Amendment to the Financing Agreement[116] - The company incurred a loss of $719,000 on partial debt extinguishment in Q2 2024[130] - The loss on partial debt extinguishment for the three months ended June 30, 2024, was $0.7 million, attributed to a partial prepayment of $4.0 million on the Term Loan[160] Future Outlook - The company expects continued challenges in digital and nutrition segments due to lower demand and subscription declines[134] - The company plans to explore additional debt or equity financing to strengthen its financial position, although the terms and amounts are currently uncertain[172] - The company expects to remain in compliance with financial covenants, including a minimum revenue requirement of $100.0 million for each fiscal quarter ending on or prior to December 31, 2024[168] Foreign Currency Exposure - Approximately 10% of the company's revenue for the six months ended June 30, 2024, was in foreign currencies, primarily in Canadian dollars and British pounds[175] - The notional amount of the company's outstanding foreign exchange options decreased to zero at June 30, 2024, as all options expired prior to March 31, 2024[176] - A hypothetical 10% change in exchange rates would result in an approximate $2.2 million increase or decrease in cost of revenue and operating expenses[178] - The aggregate notional amount of foreign exchange derivative instruments was $4.4 million at the year ended December 31, 2023[178]

Revenue Performance - Total revenue for Q2 2024 was $110.2 million, a decrease of 18.4% compared to $134.9 million in the prior year period[2]. - Digital revenue was $58.8 million, down 9.9% from $65.2 million in the prior year, with digital subscriptions totaling 1.15 million, a decline of 24.9%[2][4]. - Nutrition and Other revenue was $50.1 million, a decrease of 22.5% from $64.6 million in the prior year, with nutritional subscriptions totaling 0.14 million, down 26.2%[2][4]. - Total revenue for Q2 2024 was $110.2 million, a decrease of 18.4% compared to $134.9 million in Q2 2023[13]. - Digital revenue decreased to $58.8 million in Q2 2024 from $65.2 million in Q2 2023, representing a decline of 6.8%[13]. - Nutrition and other revenue fell to $50.1 million in Q2 2024, down 22.4% from $64.6 million in Q2 2023[13]. Profitability and Loss - Adjusted EBITDA was $4.9 million, compared to a loss of $4.8 million in the prior year, marking the third consecutive quarter of positive adjusted EBITDA[2][3]. - Net loss improved to $10.9 million, a 57.8% reduction from a net loss of $25.7 million in the prior year[2][4]. - Operating loss for Q2 2024 was $9.5 million, an improvement from a loss of $24.2 million in Q2 2023[13]. - Net loss for the six months ended June 30, 2024, was $25.1 million, compared to a net loss of $54.9 million in the same period of 2023[14]. - The company reported a net loss of $10,865,000 for the three months ended June 30, 2024, compared to a net loss of $25,748,000 for the same period in 2023, representing a 57.8% improvement[17]. Cash Flow and Liquidity - Cash provided by operating activities for the first half of 2024 was $8.2 million, compared to cash used of $14.4 million in the prior year[3]. - Cash provided by operating activities was $8.2 million for the six months ended June 30, 2024, compared to cash used of $14.4 million in the same period of 2023[14]. - The company reported a decrease in cash, cash equivalents, and restricted cash to $32.3 million at the end of Q2 2024 from $58.7 million at the end of Q2 2023[14]. - The net cash position as of June 30, 2024, was $10,868,000, an increase from $3,850,000 on December 31, 2023[19]. - Free cash flow for the six months ended June 30, 2024, was $5,264,000, compared to $(19,397,000) for the same period in 2023, showing a substantial improvement in liquidity[21]. - Cash and cash equivalents were $32,327,000 as of June 30, 2024, down from $33,409,000 on December 31, 2023[19]. Operational Efficiency - The company reduced its revenue breakeven point by over 40%, from over $900 million to under $500 million, enhancing its ability to generate sustainable cash flows[1]. - Average digital retention increased to 96.5%, up from 95.2% in the prior year, reflecting improved customer engagement[4]. - The company plans to continue focusing on key growth priorities and restructuring efforts to enhance operational efficiency[17]. Market Focus - The company is focusing on the $164 billion nutrition market, which is over 12 times larger than the $13 billion fitness market, to drive future growth[1]. Depreciation and Interest - The company incurred $5,411,000 in depreciation and amortization for the three months ended June 30, 2024, compared to $10,919,000 for the same period in 2023, reflecting a decrease of 50.5%[17]. - Interest expense for the three months ended June 30, 2024, was $1,652,000, down from $2,368,000 in the same period of 2023, a reduction of 30.1%[17]. - The company recorded a loss on partial debt extinguishment of $719,000 for the three months ended June 30, 2024[17]. - The current portion of the term loan decreased to $2,188,000 as of June 30, 2024, from $8,068,000 on December 31, 2023[19].

Group 1 - The Beachbody Company, Inc. (BODi) will present at Water Tower Research's inaugural Consumer Products Virtual Investor Conference on June 5, 2024, at 1:00 p.m. ET [1][2] - BODi has been innovating home fitness and nutrition programs for 25 years, with notable programs including P90X, Insanity, and 21-Day Fix, and has helped over 30 million customers [2] - The BODi community focuses on accountability for health goals, including weight loss, improved strength, and overall well-being [2] Group 2 - Water Tower Research aims to modernize Investor Relations through research-driven communications and engagement, providing equal access to high-quality company research for all investors [3] - The conference will feature presentations and fireside chats from various branded consumer products companies and is complimentary for investors [5]

400 Continental Blvd, Suite 400 El Segundo, California 90245 (Address of principal executive offices) (Zip Code) (310) 883-9000 Registrant's telephone number, including area code Title of each classTrading Symbol(s)Name of each exchange on which registered Class A Common Stock, par value $0.0001 per share BODI The New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preced ...

El Segundo, Calif. (May 6, 2024) – The Beachbody Company, Inc. (NYSE: BODi) ("BODi" or the "Company"), a leading subscription health and fitness company, today announced financial results for its first quarter ended March 31, 2024. • Total revenue was $120.0 million compared to $144.9 million in the prior year period. Revenue Exceeds the Midpoint of Guidance First Quarterly Positive Free Cash Flow1 since 2020 First Quarter 2024 Results • Adjusted EBITDA 1 was $4.6 million compared to $(0.9) million in the p ...