Revenue Performance - Total revenue for Q3 2024 was $102.2 million, a 20% decrease compared to Q3 2023[141] - For the nine months ended September 30, 2024, total revenue was $332.4 million, a 19% decrease year-over-year[142] - Total revenue for the three months ended September 30, 2024, was $102,193,000, down 20% from $128,250,000 in the same period in 2023[167] - Total revenue for the nine months ended September 30, 2024, was $332,422 thousand, a decrease of 19% compared to $408,099 thousand in the same period of 2023[170] Digital Revenue - Digital revenue decreased by 17% to $53.7 million, while nutrition and other revenue also decreased by 20% to $47.4 million[141] - Digital revenue decreased by $10,637,000 (17%) to $53,702,000, primarily due to a 20% reduction in subscriptions[167] - Digital revenue decreased by $20,347 thousand, or 10%, for the nine months ended September 30, 2024, primarily due to a $19.9 million decrease in revenue from digital streaming services[170] Nutrition and Other Revenue - Nutrition and other revenue fell by $11,565,000 (20%) to $47,416,000, driven by a 27% decrease in nutritional subscriptions[168] - Nutrition and other revenue decreased by $44,700 thousand, or 23%, for the nine months ended September 30, 2024, attributed to a 27% decrease in nutritional subscriptions[171] Connected Fitness Revenue - Connected fitness revenue saw a significant decline of 78%, totaling $1.1 million[141] - Connected fitness revenue decreased by approximately 66% for the nine months ended September 30, 2024, from $16,044 thousand in 2023 to $5,414 thousand in 2024[170] Profit and Loss - The company reported a net loss of $12.0 million for Q3 2024, an improvement from a net loss of $32.7 million in Q3 2023[141] - The company experienced a net loss of $12,003,000 for the three months ended September 30, 2024, compared to a net loss of $32,666,000 for the same period in 2023, representing a significant improvement[160] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $10.1 million, compared to a loss of $5.8 million in the same period last year[141] - The company recorded an Adjusted EBITDA of $10,136,000 for the three months ended September 30, 2024, compared to an Adjusted EBITDA loss of $5,833,000 in the same period in 2023[160] Restructuring and Workforce Changes - The company announced a restructuring plan (the "Pivot") that will reduce headcount by approximately 170 employees, representing 33% of the workforce[141] - The Pivot is expected to incur costs of approximately $18.4 million, with $9.2 million recorded in Q3 2024[145] Subscriptions and User Engagement - Digital subscriptions decreased from 1.38 million in September 2023 to 1.11 million in September 2024[150] - Average digital retention improved to 97.3% in September 2024, up from 96.2% in September 2023[151] - Daily Active Users (DAU) to Monthly Active Users (MAU) ratio is used to measure subscriber engagement, indicating how frequently users utilize the service[156] Expenses and Cost Management - Selling and marketing expenses for the three months ended September 30, 2024, were $45,592 thousand, a decrease of 34% from $69,127 thousand in the same period of 2023[184] - Total cost of revenue for the three months ended September 30, 2024, was $33,382,000, down from $53,219,000 in the same period in 2023[164] - Total cost of revenue for the nine months ended September 30, 2024, was $105,953 thousand, a decrease of 33% from $158,984 thousand in 2023[180] Cash Flow and Financing - Net cash provided by operating activities was $9.3 million for the nine months ended September 30, 2024, compared to a net cash used of $(14.6) million in the same period of 2023, reflecting a decrease in net loss and changes in cash flows from various assets[204] - Net cash provided by investing activities was $1.6 million for the nine months ended September 30, 2024, an increase from $(9.7) million in the prior year, attributed to proceeds from the sale of the Van Nuys facility[204] - Net cash used in financing activities decreased to $11.8 million for the nine months ended September 30, 2024, down from $17.7 million in the same period of 2023, primarily due to reduced debt repayments[205] Interest and Tax Provisions - Interest expense for the three months ended September 30, 2024, decreased by $428 thousand (21%) compared to the same period in 2023, attributed to principal prepayments on the Term Loan[198] - The income tax provision increased by $52,000 (83%) for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to changes in valuation allowance and net expense from discrete events[201] Currency and Exchange Rate Impact - Approximately 10% of the company's revenue for the nine months ended September 30, 2024, was in foreign currencies, primarily Canadian dollars and British pounds[221] - A hypothetical 10% change in exchange rates would result in an approximate $2.8 million increase or decrease in cost of revenue and operating expenses[225]
The Beachbody Company(BODI) - 2024 Q3 - Quarterly Report