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The Beachbody pany(BODY) - 2024 Q3 - Quarterly Results
BODYThe Beachbody pany(BODY)2024-11-12 21:17

Revenue Performance - Total revenue for Q3 2024 was 102.2million,adecreaseof20.3102.2 million, a decrease of 20.3% compared to 128.3 million in Q3 2023[3]. - Digital revenue was 53.7million,down16.553.7 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 47.4million,adecreaseof19.647.4 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 1.1million,down78.21.1 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 77millionand77 million and 87 million[8]. - Digital revenue decreased to 53.7millioninQ32024from53.7 million in Q3 2024 from 64.3 million in Q3 2023, representing a decline of 16.8%[18]. - Nutrition and other revenue fell to 47.4millioninQ32024,down19.547.4 million in Q3 2024, down 19.5% from 59.0 million in Q3 2023[18]. Profitability and Loss - Adjusted EBITDA for Q3 2024 was 10.1million,comparedtoalossof10.1 million, compared to a loss of 5.8 million in the prior year[4]. - Net loss for Q3 2024 was 12.0million,significantlyimprovedfromanetlossof12.0 million, significantly improved from a net loss of 32.7 million in the prior year, including 9.2millioninrestructuringcosts[4].−Thecompanyreportedanetlossof9.2 million in restructuring costs[4]. - The company reported a net loss of 12.0 million in Q3 2024, compared to a net loss of 32.7millioninQ32023,showinganimprovementof63.332.7 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 29.0millioninQ32023[18].−AdjustedEBITDAisusedtoevaluatethecompany′scoreoperatingperformance,excludingnon−cashandnon−recurringexpenses[20][21][22].−Thecompanyreportedanetlossof29.0 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 32,666,000forthesameperiodin2023,representinga63.232,666,000 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 5,833,000inthesameperiodof2023,indicatingasignificantturnaround[23].OperatingExpensesandCashFlow−Totaloperatingexpensesdecreasedto5,833,000 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 104.0millionintheprioryear[4].−CashprovidedbyoperatingactivitiesfortheninemonthsendedSeptember30,2024,was104.0 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 14.6millionintheprioryear[4].−Cashflowsfromoperatingactivitiesprovided14.6 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 14.6millioninQ32023[19].−ThecompanyendedQ32024withcash,cashequivalents,andrestrictedcashof14.6 million in Q3 2023[19]. - The company ended Q3 2024 with cash, cash equivalents, and restricted cash of 32.3 million, down from 38.2millionattheendofQ32023[19].−FreecashflowfortheninemonthsendedSeptember30,2024,was38.2 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 20,082,000forthesameperiodin2023,showingapositiveshiftincashgeneration[28].StrategicInitiatives−Thecompanyannouncedastrategicshiftfromamulti−levelmarketingmodeltoasingle−levelaffiliatenetwork,aimingforlong−termprofitablegrowth[2].−Thecompanyplanstocontinuefocusingondigitalandnutritionsegmentswhilemanagingcoststoimproveprofitability[20].−ThecompanyannouncedarestructuringinitiativecalledthePivot,whichwillconvertitsMLMmodeltoasingle−levelaffiliatemodelandreduceitsworkforcebyapproximately170employees,or3320,082,000 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 9.2millionrecordedinthethreeandninemonthsendedSeptember30,2024[29].−Thecompanyexpectstorecordanadditional9.2 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 2.9millionwasrecordedduetothePivot,impactingcertainlong−livedassetsthatwillnotbeusedafterDecember31,2024[30].−Inventoryadjustmentsof2.9 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 1,928,000fortheninemonthsendedSeptember30,2024,comparedtoalossof1,928,000 for the nine months ended September 30, 2024, compared to a loss of 3,168,000 for the same period in 2023[23].