WW International, Inc. Announces Second Quarter 2024 Results

Core Insights - WW International, Inc. reported a total revenue of $202.1 million for Q2 2024, a decrease of 10.9% compared to the same period last year [2][4] - The company has announced a restructuring plan aimed at achieving $100 million in annual run-rate cost savings [1][6] - The end of period subscribers decreased by 6.1% year-over-year, with notable declines in Digital and Workshops + Digital segments [3][17] Financial Performance - Subscription revenues for Q2 2024 were $200.0 million, down 5.7% from $212.1 million in Q2 2023 [2][5] - Gross profit for Q2 2024 was $137.3 million, resulting in a gross margin of 67.9%, an increase from 63.1% in the prior year [4][5] - Operating income increased to $35.9 million, up 36.5% from $26.3 million in the prior year [2][5] Subscriber Metrics - Total end of period subscribers were 3.8 million, down from 4.1 million a year ago [2][3] - Digital subscribers decreased by 4.2% to 3.2 million, while Workshops + Digital subscribers fell by 21.4% to 0.6 million [3][17] - Clinical subscribers saw a significant increase of 119.8%, reaching 0.1 million [3][17] Cost Management and Restructuring - The company is implementing a 2024 Restructuring Plan, which includes a reduction in workforce and is expected to incur restructuring charges between $12 million to $15 million in the second half of fiscal 2024 [1][6] - The restructuring plan is part of a broader strategy to streamline operations and optimize the clinical and behavioral product portfolio [1][6] Guidance and Future Outlook - For the full year fiscal 2024, the company expects revenues to be at least $770.0 million and an operating loss of at most $180.7 million [7] - Adjusted operating income is projected to be at least $100.0 million, excluding non-cash intangible impairment charges and restructuring impacts [7]