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 ...

The Beachbody Company, Inc. (NYSE:BODY) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Bruce Williams - Managing Director, ICR Investor Relations Carl Daikeler - Co-Founder and CEO Mark Goldston - Executive Chairman Marc Suidan - Chief Financial Officer Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Jonathan Komp - Baird Darin Tuttle - Singular Research Operator Good afternoon, ladies and gentlemen. And welcome to The Beachbody Company Second Quarter Earnin ...

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]

Revenue The decrease in nutrition and other revenue for the three months ended March 31, 2023, as compared to the three months ended March 31, 2022, was primarily due to a $20.4 million decrease in revenue from nutritional products due to 30% fewer nutritional subscriptions and a $1.4 million decrease in fitness accessories revenue. Digital cost of revenue includes costs associated with digital content creation including amortization and revision of content assets, depreciation of streaming platforms, digit ...

Our primary model is selling directly to consumers. We attract new customer sign ups through three go-to-market models: 1) a proprietary network of Coaches that earns commissions on their sales, 2) contact with current and past customers by emails or through our social media followers and 3) direct response marketing media. Our Coach network drives the majority of our revenues. Coaches earn a share of the revenue generated by promoting our products and helping our customers succeed. They also earn additiona ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO Section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------|------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO Section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------|------------------------------------ ...