Insanity

Search documents
The Beachbody Company (BODI) Conference Transcript
2025-08-20 21:00
Summary of The Beachbody Company (BODI) Conference Call - August 20, 2025 Company Overview - The Beachbody Company, now rebranded as Body, is undergoing a significant turnaround after facing financial challenges. The company has a vast library of over 135 fitness programs, totaling more than 9,000 hours of video content, including popular programs like P90X and Insanity [2][3][4]. Financial Turnaround - The company has successfully reduced its cash breakeven point from $900 million to less than $200 million, achieving a reduction of over $700 million [7][8]. - Body has reported seven consecutive quarters of positive adjusted EBITDA, totaling approximately $39.5 million, and has achieved positive free cash flow of $4.1 million for the first half of 2025 [8][10][58]. - The company's debt has been significantly reduced from $50 million to under $20 million, with a refinancing that lowered the cost of capital by nearly 40% [9][10][54]. - The marketing expense as a percentage of revenue has decreased from 51.1% to 39.5%, with a target to reduce it further below 35% [18][19]. Future Growth Initiatives - In 2026, Body plans to launch its products into the retail market, including nutritional supplements under the P90X and Insanity brands, leveraging its established brand recognition [12][13][14]. - The company aims to cross-promote fitness programs with nutritional products, offering consumers incentives such as free access to exercise programs with supplement purchases [13][14]. - Body is transitioning to a virtual consumer packaged goods (CPG) model, outsourcing production and logistics while keeping product development and marketing in-house [39][40][41]. Market Opportunity - The company is targeting a broader market, addressing health issues such as obesity and lifestyle diseases, with a potential customer base of approximately 230 million adults in the U.S. [31][32][35]. - Body's extensive library of fitness content positions it as a unique player in the market, akin to a "Netflix of fitness," appealing to a wide range of consumers [33][34]. Strategic Positioning - The transition to NASDAQ is seen as a strategic move to align with a platform that supports emerging technologies and innovative companies [50][51]. - Body has a strong balance sheet with more cash than debt and significant net operating losses (NOLs) that can be utilized for future growth and acquisitions [55][56]. Investor Value Proposition - The company is currently undervalued with a market cap of approximately $40 million, despite being cash flow positive and having a strong asset base [15][16][64]. - The management believes that the financial turnaround has been successfully executed, and the company is poised for significant growth with new product launches and market expansion [66][67]. Conclusion - Body is positioned for a promising future with a solid financial foundation, innovative product strategies, and a commitment to addressing significant health challenges in the market. The management encourages potential investors to consider the company's growth trajectory as it embarks on this new phase [66][67].
The Beachbody Company (BODI) FY Conference Transcript
2025-08-12 14:30
Summary of The Beachbody Company (BODI) FY Conference Call - August 12, 2025 Company Overview - The Beachbody Company has been a significant player in the fitness industry for over 25 years, known for popular programs like P90X and Insanity [2][3] - The company underwent a financial turnaround after going public in 2021, transitioning from a multi-level marketing (MLM) model to a direct-to-consumer approach [4][7] Financial Performance - The breakeven revenue requirement was reduced from $900 million to $200 million, indicating a significant improvement in financial health [4][5] - Gross margin increased by over 1,000 basis points, with seven consecutive quarters of positive adjusted EBITDA totaling nearly $40 million [5][32] - The company has a market cap of $30 million with $25 million in debt and $25 million in cash, positioning it for future growth [32][25] Growth Strategy - The company plans to launch a retail line in 2026, introducing products like P90X and Shakeology into mainstream retail channels [8][9] - New fitness programs are being developed to coincide with retail product launches, enhancing the overall offering [9][15] - The company aims to leverage its existing subscriber base to cross-sell nutritional products, with a focus on health and longevity rather than just aesthetics [17][19] Market Position and Opportunities - The fitness market is seen as counter-cyclical, with the subscription cost being less than $0.50 a day, making it an attractive option even in weaker economic conditions [43][44] - The company is positioned to address broader health issues, targeting a large total addressable market (TAM) of overweight and obese individuals [56][67] - The introduction of new nutritional products is expected to capitalize on existing brand awareness, with over 60% recognition of the P90X supplement line before its launch [23][24] Competitive Landscape - The company differentiates itself by offering a vast library of high-quality fitness content, which is not easily replicable by competitors [55][67] - The shift from equipment-based fitness solutions to content-driven offerings provides agility and flexibility in responding to market trends [64][66] Future Outlook - The company anticipates significant growth in 2026 and 2027, with a focus on expanding its market presence and improving financial performance [25][32] - The management emphasizes the importance of communicating the company's value proposition to potential investors and consumers [25][52] Additional Insights - The impact of GLP-1 medications on weight loss is seen as an opportunity for the company, as users will need to maintain muscle mass through exercise [59][60] - The company is exploring partnerships with health insurance companies to promote at-home fitness solutions as an alternative to gym memberships [70][71]
The Beachbody Company(BODI) - 2025 Q2 - Earnings Call Transcript
2025-08-05 22:00
Financial Data and Key Metrics Changes - The company reported revenues of $63.9 million for Q2 2025, exceeding guidance of $51 million to $61 million, but reflecting an 11.6% sequential decline and a 42% year-over-year decline [22][23] - Gross margin improved to 72.3%, a 300 basis point increase year-over-year, exceeding the long-term target of 65% to 70% [5][23] - Adjusted EBITDA was $4.6 million, marking the seventh consecutive quarter of positive adjusted EBITDA [22][28] - The company achieved a cumulative $39.5 million in adjusted EBITDA over the past seven quarters [6] Business Line Data and Key Metrics Changes - Digital revenue decreased by 7.5% sequentially to $39.7 million and declined 32.5% year-over-year, with digital subscribers down 7.8% sequentially to 940,000 [25][26] - Nutrition revenue fell 15.6% sequentially to $24.2 million and decreased 51.8% year-over-year, with nutrition subscriptions down 12.5% sequentially to 70,000 [25][26] - Digital gross margin was 87.7%, an increase from the prior quarter and year, while nutrition gross margin was 51.4%, reflecting a decline due to promotional offerings [26] Market Data and Key Metrics Changes - The company is transitioning from a multilevel marketing (MLM) model to an omnichannel model, which has impacted revenue in the near term [22][23] - The anticipated revenue split moving forward is approximately 63% digital and 37% nutrition [31] Company Strategy and Development Direction - The company plans to launch Shakeology in retail in early 2026, marking its first entry into brick-and-mortar sales [7][45] - A new P90X nutritional line and Insanity branded supplements are also set for retail launch, creating cross-marketing opportunities [8][20] - The strategic focus is on building a diverse product portfolio and leveraging brand equity to drive growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while 2025 may see temporary revenue declines, it is building towards significant growth opportunities [7][10] - The company is focused on disciplined execution and believes it is well-positioned for long-term success [11][21] - Management expressed confidence in achieving positive free cash flow for the full year of 2025 for the first time since 2020 [6][30] Other Important Information - The company reduced its revenue breakeven point from approximately $900 million in 2022 to about $200 million in 2025 [6] - Operating expenses decreased by 9.1% sequentially and 41.5% year-over-year, reflecting the shift away from the MLM model [27] Q&A Session Summary Question: What drove the higher gross margin in the quarter? - The higher gross margin was driven by reduced production spend and fewer fixed costs allocated to production [34] Question: What is the expected level of selling and marketing expenses going forward? - Selling and marketing expenses have decreased significantly since exiting the MLM model, with a goal to reduce them to the mid-thirties percentage of revenue [36][37] Question: Are there plans to roll out new supplements to complement the nutrition business? - Yes, the company plans to launch new nutritional products in retail starting in 2026, including Shakeology and P90X supplements [45][46] Question: What is the status of the nutrition retail launch? - The company is preparing sales presentations for major retailers and expects to begin retail sales in early 2026 [55] Question: Will the Shakeology product have new packaging for retail? - Yes, Shakeology will have a complete packaging refresh designed for retail, highlighting its major brand status [58][59]
Tiger Finance Provides $35 Million in Funding for The Beachbody Co.
Prnewswire· 2025-06-10 14:32
Group 1: Financing Details - Tiger Finance has provided $35 million in financing to The Beachbody Company, Inc., which includes a $25 million term loan and a $10 million uncommitted accordion [1][2] - The financing allows Beachbody to retire $17.3 million of outstanding debt and adds approximately $5 million of capital to its balance sheet [2] Group 2: Strategic Partnership and Business Model Transition - The financing is part of a turnaround strategy to support Beachbody's transition to a new business model focused on digital fitness and nutrition [1][3] - Management believes that this partnership will position Beachbody for greater profitability and long-term growth [3] Group 3: Company Background - The Beachbody Company, originally known as Beachbody, has been innovating home fitness and nutrition programs for 25 years, helping over 30 million customers [5] - The company is known for programs like P90X, Insanity, and Shakeology, and has a community focused on health and wellness [5]
The Beachbody Company(BODI) - 2025 Q1 - Earnings Call Transcript
2025-05-14 22:02
Financial Data and Key Metrics Changes - The company generated revenue of $72.4 million in Q1 2025, exceeding the guidance range of $60 million to $70 million, but reflecting a 16.2% sequential decline and a 39.7% year-over-year decline [24][25] - Adjusted EBITDA was $3.7 million, significantly exceeding the guidance range of a $2 million loss to $2 million profit, marking the sixth consecutive quarter of positive adjusted EBITDA [24][31] - The net loss for Q1 2025 was $5.7 million, an improvement from a net loss of $14.2 million in the prior year [31] Business Line Data and Key Metrics Changes - Digital revenue decreased 14.8% sequentially to $42.9 million and decreased 30.2% year-over-year, with digital subscribers declining 5.1% sequentially to 1,020,000 [26] - Nutrition revenue decreased 17.7% sequentially to $28.7 million and fell 48.4% year-over-year, with nutrition subscriptions declining 13.1% sequentially to 80,000 [26] Market Data and Key Metrics Changes - The company has transitioned from a multilevel marketing (MLM) model to an omnichannel approach, which is expected to provide additional flexibility and revenue growth over the next 24 months [25][33] - The cash breakeven level has been significantly reduced from over $900 million in 2022 to just under $225 million in 2025 [6][7] Company Strategy and Development Direction - The company has eliminated the MLM model and is focusing on a multichannel approach with an emphasis on direct-to-consumer and retail distribution channels [8] - A new lending agreement with Tiger Finance for a $25 million loan facility has been established to retire existing debt and provide additional capital [7][60] - The company plans to launch nutritional products in retail channels starting late Q4 2025, with a focus on well-known brands [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, emphasizing the need for patience and discipline as the company transitions to its new business model [11][12] - The company anticipates growth as new products are launched and the affiliate program is simplified to attract more participants [15][19] Other Important Information - The company has seen improvements in gross margins, with consolidated gross margins at 71.2%, exceeding the long-term target of 65% to 70% [25] - The transition to the new affiliate model is expected to enhance customer engagement and retention [15][19] Q&A Session Summary Question: How is the transition of sellers from the old model to the new direct affiliate model performing? - Management is pleased with some strong affiliates but acknowledges that overall performance has not met expectations due to the complexity of the current platform. A simpler model is set to launch in mid-June [37][38] Question: How will selling and marketing be balanced going forward? - The company plans to reinvest savings from the new business model into marketing to maximize gross profit dollars, focusing on the relationship between lifetime value and customer acquisition cost [39][40] Question: What changes are being made to the new affiliate platform? - The new platform will be user-friendly, integrating community features and simplifying the process for subscribers to become affiliates, launching in mid-June [46][50] Question: How is the nutrition business adjusting pricing ahead of retail launches? - The company is focusing on one-time purchases to attract new customers, which may lower overall gross margins but is expected to increase gross profit through higher unit sales [52][55] Question: What are the terms of the new credit facility? - The new loan has an interest rate of SOFR plus nine, approximately 13.3%, with a one-year moratorium on principal repayment, significantly improving the company's financial flexibility [58][60]
The Beachbody Company(BODI) - 2025 Q1 - Earnings Call Transcript
2025-05-14 22:00
Financial Data and Key Metrics Changes - The company generated revenue of $72.4 million in Q1 2025, exceeding the guidance range of $60 million to $70 million [25] - Adjusted EBITDA was $3.7 million, significantly above the guidance range of a $2 million loss to $2 million [25] - Total revenues declined 16.2% sequentially and 39.7% year over year, aligning with expectations due to the strategic transition [25][26] - Consolidated gross margins were 71.2%, reflecting an increase of 70 basis points over the prior quarter and an increase of 350 basis points year over year [26] Business Line Data and Key Metrics Changes - Digital revenue decreased 14.8% from the prior quarter to $42.9 million and decreased 30.2% year over year [27] - Nutrition revenue decreased 17.7% from the prior quarter to $28.7 million and fell 48.4% year over year [27] - Digital subscriber count decreased 5.1% sequentially to 1,020,000 and declined 16.6% compared to the same period a year ago [27] Market Data and Key Metrics Changes - The company is transitioning from a multilevel marketing (MLM) model to an omnichannel model, which is expected to provide additional flexibility and revenue growth over the next 24 months [26] - The shift to the new model has impacted nutritional subscribers significantly, as these products were historically sold through the MLM network [27] Company Strategy and Development Direction - The company has eliminated the MLM business model and transitioned to a multichannel approach, emphasizing direct-to-consumer and retail distribution channels [8] - A new lending agreement with Tiger Finance for a $25 million loan facility has been established, allowing the company to retire existing debt and improve its financial position [7][56] - The company plans to launch nutritional products in retail channels, starting with Shakeology in late Q4 2025, followed by P90X and Insanity nutritional lines in 2026 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting the importance of patience and discipline in executing the new business model [11] - The company anticipates growth as it builds out its retail distribution strategy and launches new products [12][34] - Management acknowledged the challenges faced during the transition but remains optimistic about future performance and profitability [33] Other Important Information - The company has cut its debt by more than 50% to $18 million and reduced its cash breakeven level from over $900 million in 2022 to just under $225 million [6][7] - The company is focusing on performance marketing to improve customer acquisition and retention, with a new digital agency hired to enhance marketing efforts [19][20] Q&A Session Summary Question: How is the transition of sellers from the old model to the new direct affiliate model performing? - Management indicated that while there are strong affiliates, overall performance has not met expectations due to the complexity of the current platform. A simpler model is expected to launch in June [38][39] Question: How is management balancing reinvestment in marketing with the new business model? - Management stated that selling and marketing expenses as a percentage of revenue have decreased, and they plan to reinvest cash generated into marketing to maximize gross profit dollars [40][41] Question: What changes are being made to the new affiliate platform? - The new platform will be user-friendly, allowing subscribers to easily promote programs and earn commissions, which is expected to enhance affiliate participation [44][46] Question: How is the company tracking customer migration from subscriptions to one-time purchases? - Management noted that they are institutionalizing a Subscribe and Save program to rebuild the nutritional subscription file while also focusing on one-time purchases to attract new customers [62][63] Question: Is the Connected Fitness segment being phased out? - Management confirmed that no new bikes will be produced, but they will continue to support existing customers and explore partnerships for content delivery [67][68]
The Beachbody Company(BODI) - 2024 Q4 - Earnings Call Transcript
2025-03-27 22:02
Financial Data and Key Metrics Changes - The company generated revenue of $86.4 million in Q4 2024, which was at the high end of the guidance range of $77 million to $87 million [31] - Adjusted EBITDA was $8.7 million, significantly exceeding the guidance range of $2 million to $6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [10][31] - The company reported a net loss of $34.6 million in Q4 2024, compared to a net loss of $12 million in the prior quarter, which included $20 million of goodwill impairment expenses [36][37] - Cash generated from operations improved to $2.6 million for the year 2024, compared to cash used in operations of $22.5 million in 2023, representing a $25.1 million improvement year over year [11][38] Business Line Data and Key Metrics Changes - Digital revenue decreased by 6.2% sequentially to $50.4 million and decreased by 21.4% year over year [32] - Nutrition revenue decreased by 26.6% sequentially to $34.8 million and decreased by 32.8% year over year [33] - Digital subscriber count decreased by 3.4% sequentially to 1.07 million and declined by 19.1% compared to the same period a year ago [32] Market Data and Key Metrics Changes - The transition from a multi-level marketing (MLM) model to an omni-channel model has impacted revenue, particularly in the nutrition segment [32][33] - The company is seeing strong growth in its Amazon business and has launched on Walmart.com, which is expected to grow significantly [23][24][66] Company Strategy and Development Direction - The company has restructured into a single-level affiliate model, phasing out the MLM structure to enhance revenue streams and improve profitability [5][6] - The focus is on an omnichannel strategy that includes direct-to-consumer marketing, Amazon, and conventional retail distribution for nutrition products [7][8] - The company aims to introduce new products under popular brand names like T90X and Insanity within the next twelve months [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 will be a transition year as the new business model is implemented, which may involve short-term dislocation [12] - There is optimism about the growth potential ahead, particularly in the nutrition segment, as the company can now market products outside the former MLM network [10][26] - The management emphasizes the importance of building profitable revenue and cash flow while leveraging strategic partnerships and new sales channels [30] Other Important Information - The company has retained more of the legacy nutrition subscription file than expected during the transition, indicating a positive customer experience [26] - Partnerships with telehealth providers and initiatives to leverage HSA and FSA accounts are being pursued to enhance product accessibility [28][29] Q&A Session Summary Question: What was the reaction to the transition to the new affiliate model? - Management indicated that the transition was moderately successful, with some affiliates migrating over, but new affiliate acquisition has been slower than desired [44][45] Question: How should the P&L structure be viewed moving forward? - The company expects revenues to approximate 60% digital and 40% nutrition, with gross margins of approximately 85% for digital and 50% for nutrition [48][51] Question: What is the outlook for the nutrition business and retail expansion? - The nutrition segment is seen as a major opportunity, with plans to market products like Shakeology in retail for the first time, which could significantly increase revenue [65][66]
The Beachbody Company(BODI) - 2024 Q4 - Earnings Call Transcript
2025-03-27 21:00
Financial Data and Key Metrics Changes - The company generated revenue of $86.4 million in Q4 2024, which was at the high end of the guidance range of $77 million to $87 million, but represented a 15% sequential decline and a 27% year-over-year decline [31][32] - Adjusted EBITDA for Q4 was $8.7 million, significantly exceeding the guidance range of $2 million to $6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [10][31] - The company achieved a dramatic improvement in cash flow, generating $2.6 million from operations in 2024 compared to a cash use of $22.5 million in 2023, representing a $25.1 million improvement year-over-year [11][38] Business Line Data and Key Metrics Changes - Digital revenue decreased by 6.2% sequentially to $50.4 million and decreased by 21.4% year-over-year, impacted by a decline in digital subscriber count [32][33] - Nutrition revenue decreased by 26.6% sequentially to $34.8 million and decreased by 32.8% year-over-year, with nutrition subscriptions declining by 29.2% sequentially [33][34] - Digital gross margin was 85.9% for the quarter, exceeding the long-term target of 80%, while nutrition gross margin was 52.3%, reflecting a decline due to the discontinuation of preferred customer fees [34][35] Market Data and Key Metrics Changes - The transition from a multi-level marketing (MLM) model to an omnichannel model has significantly impacted revenue streams, particularly in the nutrition segment [32][33] - The company is seeing strong growth in its Amazon business and has launched on Walmart.com, with expectations for significant growth in these channels [23][24][65] Company Strategy and Development Direction - The company has restructured its business model by phasing out the MLM structure and adopting an omnichannel strategy focused on direct-to-consumer marketing [5][6] - The new affiliate model aims to enhance revenue streams and empower affiliates with performance-based compensation, aligning with the company's direct marketing roots [8][17] - The company plans to introduce new products under popular brand names and expand distribution through various channels, including retail [9][26][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 will be a transition year as the company implements its new business model, which is crucial for long-term competitiveness [12][39] - There is optimism about the growth potential ahead, particularly in the nutrition segment, as the company can now market its products outside the former MLM network [10][66] - The management emphasizes the importance of building profitable revenue and cash flow while navigating the challenges of the transition [17][30] Other Important Information - The company reported a net loss of $34.6 million in Q4, which included $20 million in goodwill impairment expenses, but this represents an improvement compared to the same quarter last year [36][37] - The cash balance at the end of the year was $20.2 million, reflecting a reduction in outstanding debt [38] Q&A Session Summary Question: What was the reaction to the transition to the new affiliate model? - Management indicated that the transition was moderately successful, with some affiliates migrating over, but new affiliate acquisition has been slower than desired. Plans are in place to attract more affiliates from both internal and external sources [43][44][46] Question: How should the P&L structure be viewed moving forward? - The company expects revenues to approximate 60% digital and 40% nutrition, with gross margins of approximately 85% for digital and 50% for nutrition [47][48] Question: What factors contributed to the sequential revenue decline? - The decline is attributed primarily to the transition from the MLM model, with many former affiliates not migrating to the new model [57][58] Question: What is the outlook for the nutrition business? - The nutrition segment is seen as a major opportunity, with plans to market products like Shakeology through retail channels for the first time, which is expected to significantly increase revenue [64][66]
The Beachbody pany(BODY) - 2024 4 - Earnings Call Transcript
2025-03-27 21:00
Financial Data and Key Metrics Changes - The company generated revenue of $86.4 million in Q4 2024, which was at the high end of the guidance range of $77 million to $87 million [44] - Adjusted EBITDA was $8.7 million, significantly exceeding the guidance range of $2 million to $6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [15][44] - Total revenues declined 15% sequentially and 27% year over year, primarily due to the transition from a multi-level marketing (MLM) platform to an omnichannel model [45] - Cash flow from operations improved dramatically to $2.6 million for 2024, compared to a cash usage of $22.5 million in 2023, representing a $25 million improvement [17][56] Business Line Data and Key Metrics Changes - Digital revenue decreased 6.2% from the prior quarter to $50.4 million and decreased 21.4% year over year, impacted by a decline in digital subscriber count [47] - Nutrition revenue decreased 26.6% sequentially to $34.8 million and decreased 32.8% year-over-year, with nutrition subscriptions declining 29.2% sequentially [48] - Digital gross margin was 85.9% for the quarter, exceeding the long-term target of 80% [49] Market Data and Key Metrics Changes - The transition to the new affiliate model has resulted in a moderate success, with some affiliates migrating over while new affiliate acquisition has been slower than desired [70] - The company is seeing strong growth in its Amazon business and has launched on Walmart.com, with expectations for significant growth potential [34][36] Company Strategy and Development Direction - The company has restructured into a new business model, phasing out the MLM structure in favor of an omni-channel strategy focused on direct-to-consumer marketing [10][11] - The strategic shift aims to enhance revenue streams and empower affiliates with a performance-based compensation structure [11] - The company is focused on building profitable revenue and cash flow, with plans to expand into retail and leverage partnerships to enhance product accessibility [25][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 will be a transition year as the new business model is implemented, with expectations for short-term dislocation but long-term competitive positioning [18] - The company is optimistic about the growth potential of its new initiatives, particularly in the nutrition segment and direct response marketing [24][30] Other Important Information - The company has retained more of its legacy nutrition subscription file than expected during the transition, indicating a positive customer experience [38] - The launch of new products under popular brand names is anticipated within the next 12 months, which will be marketed through various channels [13][36] Q&A Session Summary Question: Can you provide more color on the movement with affiliates during the transition to the new business model? - Management indicated that the transition was as expected, with some affiliates migrating over, but new affiliate acquisition has been slower than desired. Plans are in place to attract more affiliates from both internal and external sources [68][70] Question: How should we think about the P&L structure moving forward? - The company expects revenues to approximate 60% digital and 40% nutrition, with gross margins of approximately 85% for digital and 50% for nutrition [72][76] Question: Can you clarify the sequential revenue decline and its attribution? - The decline is attributed to the transition from the MLM model, with many former active sellers not migrating to the new affiliate model [85][86] Question: What is the outlook for the nutrition business, particularly regarding retail? - The nutrition business is seen as a major opportunity, with plans to market products like Shakeology in retail for the first time, which is expected to significantly enhance revenue [92][96] Question: How will the company manage potential cannibalization between direct-to-consumer and affiliate channels? - Management believes the channels are complementary, with direct marketing efforts expected to enhance affiliate sales through increased exposure [112][115]