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 ...

"2023 was a transformational year at BODi. Our turnaround plan successfully simplified our digital platform, lowering our breakeven point and enhancing our liquidity position," said Carl Daikeler, BODi's Co-Founder and Chief Executive Officer. "In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business. Our accomplishments in 2023 set the foundation for continued execution of our turnaround in 2024. We expect ...

A summary of the unvested option activity is as follows: RSUs granted to employees generally vest over four years, based on continued employment, while RSUs granted to members of the Board generally vest approximately one year after grant date. 101 Employee Stock Purchase Plan Repricing of Stock Options Equity-Based Compensation Expense The vesting periods are based on the terms of the option grant agreements, generally four to five years. The risk-free interest rates are based on the U.S. Treasury rates as ...

EL SEGUNDO, Calif.--(BUSINESS WIRE)--The Beachbody Company, Inc. (NYSE: BODY) (“BODi” or the “Company”), today announced that its Class A common stock will begin trading on the New York Stock Exchange (“NYSE”) under the new ticker symbol “BODI” prior to the market open on March 4, 2024. This will replace the company’s current ticker symbol, “BODY”. This new ticker symbol aligns with the company’s rebrand from Beachbody to BODi, announced on March 9, 2023. The Company’s Class A common stock, par value $0.000 ...

Financial Data and Key Metrics Changes - Revenues for Q3 2023 were $128.3 million, which was 5% lower than the previous quarter and a 23% decline year-over-year [45] - Adjusted EBITDA loss was $5.8 million, an improvement from a loss of $6.2 million in the prior year [75] - Cash balance decreased to $38.2 million, primarily due to a debt repayment of $15.3 million [76] Business Line Data and Key Metrics Changes - Nutrition revenue was $59 million, down 9% from the previous quarter, with a subscriber file size of 177,000, a 10% decrease [47] - Digital revenue was $64.3 million, down 1% from Q2, with a digital subscriber count of 1.4 million, a 10% decrease [68] - Connected Fitness revenue was $4.9 million, down 3% from Q2, with bike sales increasing to 6,500 units, an 18% increase [69] Market Data and Key Metrics Changes - Overall digital subscriber count decreased by 10% sequentially to 1.38 million in Q3 [27] - The company is focusing on the growing market for weight loss solutions, viewing GLP-1 treatments as a tailwind rather than a headwind [26] Company Strategy and Development Direction - The company is executing a turnaround plan focused on cash flow generation and profitable revenue, with a target of $165 million in annual cost savings [6][13] - A new free preview tier is being introduced to attract potential subscribers and improve conversion rates [36] - The company aims to reduce selling and marketing expenses from approximately 55% of revenue to 45% during 2024 [72] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the direct selling model but is optimistic about increasing momentum through partnerships and new initiatives [89] - The company believes it is well-positioned to capitalize on the growing focus on weight loss and health [90] - Future guidance for Q4 anticipates revenues between $105 million to $150 million, with a net loss expected in the range of $25 million to $30 million [79] Other Important Information - The company has significantly reduced its bike inventory and plans to launch a new offer appealing to price-conscious consumers [51] - A partnership with Brendon Burchard is expected to enhance the performance of the company's partner network [62] Q&A Session Summary Question: Regarding the recent debt payment, is this a one-off or part of a longer-term strategy? - Management indicated that the recent debt payment was part of a negotiation with lenders and there are no current plans for further accelerated debt repayments [87] Question: What are the expectations for the upcoming quarters in terms of cash flow and operations? - Management expressed confidence in managing capital effectively and executing the turnaround plan, with a focus on generating positive cash flows [87]

In connection with the Term Loan, the Company issued to certain holders affiliated with Blue Torch warrants for the purchase of 4,716,756 shares of the Company's Class A Common Stock at an exercise price of $1.85 per share (the "Term Loan Warrants"). The Term Loan Warrants vest on a monthly basis over four years, with 30%, 30%, 20% and 20% vesting in the first, second, third and fourth years, respectively. The Term Loan Warrants have a seven-year term from the Effective Date. See Note 3, Fair Value Measurem ...

This presentation contains forward-looking statements within the meaning of federal and state securities laws, including, without limitation, our expectations, forecasts, plans and opinions regarding our strategic plans, market opportunities, product development initiatives, financial performance, expected revenue growth and adjusted EBITDA margin for 2023, restructuring initiatives and planned expense reductions. These statements involve risks and uncertainties that could cause actual events to differ mate ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $134.9 million, which was 7% lower than the previous quarter and above the midpoint of guidance [25] - Net loss improved to $25.7 million compared to a net loss of $41.9 million in the prior year and $29.2 million in the prior quarter [31] - Adjusted EBITDA was a loss of $4.8 million, which was worse than the loss of $1.5 million in the prior year but better than the loss of $0.9 million in the prior quarter [31] Business Line Data and Key Metrics Changes - Nutrition revenue was $64.6 million, down 13% from $74.1 million in the prior quarter, with subscriber count decreasing by 6% [8] - Connected Fitness revenue was $5.1 million, down 15% from $6 million in Q1, despite a 17% increase in units delivered [9] - Digital revenue was $65.2 million, slightly up from $64.8 million in Q1, but overall digital subscriber count decreased by 12% [26] Market Data and Key Metrics Changes - The company is focusing on transitioning its subscriber base to a more profitable average revenue per user (ARPU) [38] - The company has a customer database of over 14 million former customers, which presents a significant opportunity for reactivation with minimal acquisition costs [67] Company Strategy and Development Direction - The company has implemented a turnaround plan focusing on launching a new digital platform, cutting costs, and aiming for sequential revenue improvement [4][5] - The strategy includes activating a coach and partner network, enhancing performance marketing, and expanding sales channels, including Amazon [20][50] - The company aims to prioritize profitable revenue rather than growth at all costs, focusing on cash generation and targeting valuable subscribers [88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that sequential improvement in revenue has not occurred as expected, leading to the implementation of a turnaround plan [3] - The company expects revenue for Q3 to be in the range of $120 million to $130 million, with adjusted EBITDA losses projected between $3 million and $8 million [35] - Management expressed confidence in the transformation journey and the potential for long-term profitability and cash flow generation [36][71] Other Important Information - The company amended its financing agreement with Blue Torch Capital, allowing for lower revenue covenants and providing flexibility for the turnaround plan [23] - Cash balance at the end of the quarter was $59 million, down from $66 million in the prior quarter, with cash used in operations at $6.5 million [32][33] Q&A Session Summary Question: Why is EBITDA negative in Q3 guidance? - Management clarified that the $7 million convention expense was incurred in Q2 and will not recur in Q3, leading to an expected sequential improvement in EBITDA [29] Question: What are the expectations for subscriber renewal rates? - Management reported that customers are renewing at a rate of 60%, exceeding expectations, and indicated a focus on higher value customers [27] Question: How will the company manage potential channel conflict with Amazon sales? - Management acknowledged the sensitivity to channel conflict but emphasized the broad total addressable market (TAM) and the importance of leveraging all sales channels [95]

24 BODi is a leading subscription health and wellness company. We focus primarily on digital content, supplements, connected fitness, and consumer health and wellness. Our goal is to continue to provide holistic health and wellness content and subscription-based solutions. We are the creator of some of the world's most popular fitness programs, including P90X, Insanity, and 21 Day Fix, which transformed the at-home fitness market and disrupted the global fitness industry by making it accessible for people t ...

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $144.9 million, which was ahead of guidance and 2.2% below the prior quarter, marking the smallest quarter-over-quarter contraction since Q4 2021 [34] - Adjusted EBITDA loss was $1 million, a significant improvement from a loss of $19 million in the prior year and a profit of $3.5 million in the prior quarter, indicating a 95% improvement year-over-year [39] - Gross margin improved to 63% compared to 47% in the prior year and 57% in the prior quarter, driven by improved nutrition gross margins and a product mix with more digital and nutrition revenues [35] Business Line Data and Key Metrics Changes - Digital revenue was $64.8 million, down from $68.7 million in the prior quarter, with digital subscribers decreasing by 10% quarter-over-quarter to 1.75 million [34] - Nutrition revenue remained stable at $74 million, with subscriptions decreasing by 5% to 210,000 [13] - Connected Fitness revenue increased by 27% to $6 million, primarily driven by New Year's marketing campaigns [13] Market Data and Key Metrics Changes - BODi surpassed 500,000 subscriptions as of April 30th, doubling since the end of Q4 2022, driven by digital renewals and upgrades [5] - Google searches for BODi increased by 287% year-over-year in Q1, indicating significant interest in the health esteem category [6] - Digital LTV increased by 13% in March compared to February, reflecting the positive impact of the new subscription model [6] Company Strategy and Development Direction - The company has transitioned to a single subscription model called BODi, which integrates mental health into its offerings and aims to create the largest health and fitness community [25][29] - The focus is on increasing customer lifetime value (LTV) through enhanced programming and customer engagement strategies, including CRM and database marketing [9][11] - The company is optimistic about achieving EBITDA profitability by the end of the year, despite a conservative outlook for Q2 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning during potential economic downturns, citing a cost-effective alternative to traditional gyms [22][58] - The company is seeing early signs of demand and customer renewals, with expectations for the second half of the year to be more favorable than the first half [87] - Management highlighted the importance of the upcoming Partner Summit to align the partner network with the company's strategy [70] Other Important Information - The cash balance decreased to $66 million from $80 million in the prior quarter, with non-recurring payments impacting cash flow [16] - Inventory levels decreased to $48 million, down from $54 million in the prior quarter, reflecting disciplined demand and supply chain management [16] - The company confirmed that it will not be delisted from the New York Stock Exchange [80] Q&A Session Summary Question: Can you help us understand renewal rates and churn after the price change? - Management reported that the churn rate is favorable, with customers engaging more with the platform and appreciating the value [44] Question: How do you think reopening and macro challenges will impact Beachbody this year? - Management believes the company is well-positioned to navigate economic challenges, having performed well during past recessions [22][58] Question: Can you quantify the non-recurring cash payments that impacted operating cash flow? - Non-recurring cash payments, including severance and bonuses, were estimated to be in the $10 million to $15 million range [52] Question: What is the most misunderstood aspect of the company by investors? - Management emphasized the company's strong track record of innovation and cash flow preservation while pursuing growth opportunities [60] Question: How will the deferred revenue change with the new premium subscription model? - As more customers sign up at the higher price point, the average revenue per user (ARPU) will increase, favorably impacting deferred revenue [104]