The Beachbody pany(BODY) - 2024 Q2 - Quarterly Results

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].