WW International Inc.(US:WW)2024-11-06 12:05Subscriber Metrics - End of Period Subscribers decreased by 8.8% year-over-year to 3.7 million, with a notable increase of 71.5% in Clinical Subscribers to 78,000[4] - Total end of period subscribers decreased to 3,667 in September 2024, down 8.8% from 4,022 in September 2023[25] - Digital subscribers at the end of the period were 3,043, a decline of 7.3% from 3,284 in the previous year[25] - Clinical subscribers increased significantly by 71.5% to 78 in September 2024, compared to 45 in September 2023[25] Revenue Performance - Revenues for Q3 2024 were $192.9 million, reflecting a 10.2% decline compared to the prior year, with Subscription Revenues at $191.2 million, down 6.0%[3] - Total revenues for the three months ended September 28, 2024, were $192,887, a decrease of 10.2% compared to $214,871 for the same period last year[18] - Subscription revenues for the three months ended September 28, 2024, were $191,248, down 6.3% from $203,496 in the same period last year[18] - Year-to-date total revenues for 2024 were $601,508, down 12.0% from $683,594 in 2023[27] - Year-to-date digital subscription revenues were $399,364, a decrease of 8.7% from $437,613 in 2023[27] - Other revenues plummeted 89.0% to $6,248 in 2024, compared to $56,927 in 2023[27] Profitability and Loss - Operating Loss for Q3 2024 was $39.0 million, compared to an Operating Income of $30.6 million in the prior year, with Adjusted Operating Income at $35.7 million[5] - Net Loss for Q3 2024 was $46.2 million, compared to a Net Income of $43.7 million in the prior year, resulting in a Diluted Net Loss per share of $0.58[5] - Operating loss for the three months ended September 28, 2024, was $(39,045), a significant decline from operating income of $30,607 in the same period last year[18] - Net loss for the three months ended September 28, 2024, was $(46,192), compared to a net income of $43,731 in the same period last year[18] - The company experienced a 205.6% increase in net loss compared to the previous year[28] - Net Loss for YTD 2024 was $(370,824), representing an increase of 1,438.8% compared to a net loss of $(24,120) in YTD 2023[29] - Diluted Net Loss Per Share for YTD 2024 was $(4.67), compared to $(0.32) in YTD 2023, marking an increase of 1,368.8%[29] Margins and Expenses - Gross Margin improved to 67.1%, up from 66.0% in the prior year, while Adjusted Gross Margin increased to 69.1% from 66.2%[4] - Gross Profit for Q3 2024 was $129,496 thousand, with a gross margin of 67.1%[28] - Adjusted gross profit increased to $133,316 thousand, reflecting a gross margin of 69.1%[28] - Selling, general and administrative expenses totaled $67,094 thousand, with an adjusted figure of $53,250 thousand[28] - Selling, General and Administrative Expenses decreased by 8.0% to $154,534 in YTD 2024 from $168,423 in YTD 2023[29] Cash and Assets - Cash balance as of September 28, 2024, was $57.2 million, with no outstanding borrowings under its revolving credit facility[6] - Total current assets decreased from $179,474 million on December 30, 2023, to $101,228 million on September 28, 2024, a decline of approximately 43.5%[17] - Cash and cash equivalents dropped from $109,366 million to $57,181 million, representing a decrease of about 47.8%[17] Impairments and Charges - The company reported an impairment of franchise rights acquired amounting to $315,033 for the nine months ended September 28, 2024[21] - The company reported a significant impairment charge of $54,295 thousand related to franchise rights acquired[28] - The company incurred impairment charges of $315 million related to franchise rights acquired in the first nine months of fiscal 2024[35] Guidance and Future Outlook - The Company is reiterating its full year fiscal 2024 guidance of at least 3.1 million total subscribers and revenues of at least $770.0 million[7] - Adjusted Operating Income guidance for fiscal 2024 is set at a minimum of $100.0 million, excluding certain charges[7] - Forward-looking statements indicate potential risks related to competition and market dynamics in the weight management sector[15] - Future outlook includes ongoing restructuring efforts with associated charges impacting financial performance[28]