WW International Inc.(US:WW)2024-05-02 20:05Subscriber Metrics - End of period subscribers reached 4.0 million, including 91 thousand clinical subscribers[4] - End of period total subscribers slightly decreased by 0.4% to 4,008 from 4,022 year-over-year[31] Financial Performance - Revenues for Q1 2024 were $206.5 million, a decrease of 14.6% compared to the prior year[10] - Total revenues for Q1 2024 were $206,548, down 14.6% from $241,895 in Q1 2023[25] - Subscription revenues were $204.1 million, down 3.3% year-over-year, including $18.8 million from clinical subscriptions[10] - Subscription revenues for Q1 2024 were $204,056, a decrease of 3.7% from $211,032 in Q1 2023[25] - Other revenues decreased by 91.9% to $2.5 million, primarily due to the wind down of the consumer products business[10] - Digital subscription revenues decreased by 7.8% to $137,633 from $149,344 year-over-year[35] Profitability and Losses - Operating loss for Q1 2024 was $269.3 million, primarily due to $258.0 million in non-cash intangible impairment charges[10] - The company reported an operating loss of $269,332 for Q1 2024, compared to an operating loss of $28,583 in Q1 2023[25] - Net loss for Q1 2024 was $347.9 million, compared to a net loss of $118.7 million in the prior year[12] - The net loss for Q1 2024 was $347,902, compared to a net loss of $118,679 in Q1 2023, representing a significant increase in losses[25] - Adjusted EBITDAS for Q1 2024 was $8,803, down from $11,068 in Q1 2023[47] Guidance and Projections - The company maintains revenue guidance for fiscal 2024 in the range of $830.0 million to $860.0 million[16] - Adjusted operating income is expected to be in the range of $100.0 million to $110.0 million, excluding impairment and restructuring charges[16] - The Company provided operating loss guidance for Full Year 2024 in the range of $(163.7) million to $(153.7) million[56] - Adjusted operating income is projected to be between $100.0 million and $110.0 million for Full Year 2024[56] Impairment Charges - The company recognized impairment charges of $257,988 related to franchise rights acquired in Q1 2024[25] - The Company reported impairment charges of $2,383 million and $1,203 million related to its Republic of Ireland and Northern Ireland reporting units, respectively[52] - Impairment charges for franchise rights acquired totaled $251,431 million, $4,074 million, $2,328 million, and $155 million for the United States, Australia, New Zealand, and United Kingdom units, respectively[52] - The impairment charges related to franchise rights acquired in the first quarter of fiscal 2024 are reflected in the overall impairment totals[57] Cash and Assets - Cash and cash equivalents decreased to $66,615 at the end of Q1 2024 from $109,366 at the end of Q4 2023, a decline of 39%[29] - Total assets decreased to $654,248 as of March 30, 2024, down from $982,030 as of December 30, 2023[23] - Total liabilities increased to $1,766,547 as of March 30, 2024, compared to $1,743,124 as of December 30, 2023[23] - Total debt as of Q1 2024 was $1,427,509, with net debt of $1,360,894 after accounting for cash[51] Operational Changes - The company is focused on expanding its community offerings and enhancing its existing services to meet evolving consumer preferences[20] - The Company is undergoing a restructuring plan disclosed for 2023, with associated charges impacting financial results[53] - Non-recurring transaction costs were incurred in connection with the Company's acquisition of Sequence[54] Paid Weeks - Total paid weeks increased by 1.7% year-over-year, driven by the digital business and clinical paid weeks[10] - Total paid weeks increased by 1.7% to 51,799 in Q1 2024 from 50,952 in Q1 2023[31] Share Metrics - The weighted average common shares outstanding for Q1 2024 were 79,208, an increase from 70,596 in Q1 2023[25]