Beachbody (BODi) Reports Q1 2024 Cash Flow from Operations of $9.1 Million and the First Sequential Quarterly Revenue Growth Sin
EL SEGUNDO, Calif. , May 06 /Businesswire/ - The Beachbody Company, Inc. (NYSE: BODi) (“BODi” or the “Company”), a leading subscription health and fitness company, today announced financial results for its first quarter ended March 31, 2024.
"We are pleased with our performance in the first quarter, beating the midpoint of our revenue and adjusted EBITDA guidance, all while delivering against our strategic initiatives. Most notably, we are excited to announce that we have achieved our first positive free cash flow quarter since 2020,” said Carl Daikeler, BODi’s Co-Founder and Chief Executive Officer. “We have had an excellent start to 2024 and for the remainder of the year, we will continue to deliver against the objectives in our turnaround plan."
First Quarter 2024 Results
-
Total revenue was $120.0 million compared to $144.9 million in the prior year period.
- Digital revenue was $61.5 million compared to $64.8 million in the prior year period and digital subscriptions totaled 1.22 million in the first quarter.
- Nutrition and Other revenue was $55.5 million compared to $74.1 million in the prior year period and nutritional subscriptions totaled 0.15 million in the first quarter.
- Connected Fitness revenue was $3.0 million compared to $6.0 million in the prior year period and approximately 3,500 bikes were delivered in the first quarter.
- Total operating expenses were $92.1 million compared to $118.8 million in the prior year period.
- Operating loss improved by $16.6 million to $10.8 million compared to an operating loss of $27.4 million in the prior year period.
- Net loss was $14.2 million compared to a net loss of $29.2 million in the prior year period.
- Adjusted EBITDA1 was $4.6 million compared to $(0.9) million in the prior year period.
- Cash provided by operating activities for the three months ended March 31, 2024 was $9.1 million compared to cash used in operating activities of $7.9 million in the prior year period, and cash provided by investing activities was $3.9 million compared to cash used in investing activities of $3.4 million in the prior year period. Free cash flow was $7.4 million compared to $(11.3) million in the prior year period.
Marc Suidan, Chief Financial Officer, stated: "We made a concerted effort to improve our liquidity position. Our net cash position1 increased from $3.9 million at December 31, 2023 to $14.4 million at March 31, 2024. This represents approximately a $10 million improvement in our liquidity in one quarter.”
1 A definition of (1) Adjusted EBITDA and reconciliation to net loss, (2) free cash flow and (3) net cash position are at the end of this release.
Key Operational and Business Metrics
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For the Three Months Ended March 31, |
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2024 |
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2023 |
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Change v 2023 |
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Digital Subscriptions (in millions) |
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1.22 |
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1.75 |
|
|
(30.4 |
%) |
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||
Nutritional Subscriptions (in millions) |
|
|
0.15 |
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|
0.21 |
|
|
(28.0 |
%) |
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||
Total Subscriptions (in millions) |
|
|
1.37 |
|
|
1.96 |
|
|
(30.2 |
%) |
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Average Digital Retention |
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|
95.7 |
% |
|
95.9 |
% |
|
(20 |
bps) |
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||
Total Streams (in millions) |
|
|
25.6 |
|
|
29.7 |
|
|
(13.6 |
%) |
|
||
DAU/MAU |
|
|
33.2 |
% |
|
32.5 |
% |
|
70 |
bps |
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||
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Connected Fitness Units Delivered (in thousands) |
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3.5 |
|
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4.7 |
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|
(24.4 |
%) |
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Digital |
|
$ |
61.5 |
|
$ |
64.8 |
|
|
(5.0 |
%) |
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||
Nutrition & Other |
|
$ |
55.5 |
|
$ |
74.1 |
|
|
(25.1 |
%) |
|
||
Connected Fitness |
|
$ |
3.0 |
|
$ |
6.0 |
|
|
(49.6 |
%) |
|
||
Revenue (in millions) |
|
$ |
120.0 |
|
$ |
144.9 |
|
|
(17.2 |
%) |
|
||
Net Loss (in millions) |
|
$ |
(14.2 |
) |
$ |
(29.2 |
) |
|
51.3 |
% |
|
||
Adjusted EBITDA (in millions) |
|
$ |
4.6 |
|
$ |
(0.9 |
) |
NM |
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NM: Not Meaningful |
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Outlook for The Second Quarter of 2024
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Outlook For Quarter Ending June 30, 2024 |
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(in millions) |
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Revenue |
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$ |
103 |
|
$ |
113 |
|
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|
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|
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Net Loss |
|
$ |
(20 |
) |
$ |
(14 |
) |
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Adjustments: |
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Depreciation |
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$ |
5 |
|
$ |
5 |
|
|
|
Amortization of Content Assets |
|
$ |
4 |
|
$ |
4 |
|
|
|
Interest Expense |
|
$ |
2 |
|
$ |
2 |
|
|
|
Equity-Based Compensation |
|
$ |
5 |
|
$ |
5 |
|
|
|
Other Adjustment Items |
|
$ |
1 |
|
$ |
1 |
|
|
|
Total Adjustments |
|
$ |
17 |
|
$ |
17 |
|
|
|
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Adjusted EBITDA |
|
$ |
(3 |
) |
$ |
3 |
|
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Conference Call and Webcast Information
BODi will host a conference call at 5:00pm ET on Monday, May 6, 2024, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 470-1428 (U.S. & Canada), or +1 (929) 526-1599 (all other locations) and provide the conference identification number: 460282. The conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/.
A replay of the call will be available until May 13, 2024, by dialing (866) 813-9403 (U.S & Canada), or + 44 (204) 525-0658 (all other locations). The replay passcode is 381485.
After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year.
About BODi and The Beachbody Company, Inc.
Originally known as Beachbody, BODi has been innovating structured step-by-step home fitness and nutrition programs for 25 years such as P90X, Insanity, and 21-Day Fix, plus the first premium superfood nutrition supplement, Shakeology. Since its inception in 1999 BODi has helped over 30 million customers pursue extraordinary life-changing results. The BODi community represents millions of people helping each other stay accountable to goals of healthy weight loss, improved strength and energy, and resilient mental and physical well-being. For more information, please visit TheBeachBodyCompany.com.
Safe Harbor Statement
This press release of The Beachbody Company, Inc. (“we,” “us,” “our,” and similar terms) contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical facts and statements in future tense. These statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the second quarter and full year, our business strategy, our plans, and our objectives and future operations.
Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; and litigation and the ability to adequately protect our intellectual property rights. You can identify these statements by the use of terminology such as "believe", “plans”, "expect", "will", "should," "could", "estimate", "anticipate" or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" section of our Securities and Exchange Commission (SEC) filings, including those risks and uncertainties included in the Form 10-K filed with the SEC on March 11, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, which are available on the Investor Relations page of our website at https://investors.thebeachbodycompany.com and on the SEC website at www.sec.gov.
All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements.
The Beachbody Company, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
|
|
(unaudited) |
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Assets |
|
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|
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Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents (restricted cash of $0.1 million at March 31, 2024 and December 31, 2023, respectively) |
|
$ |
38,929 |
|
|
$ |
33,409 |
|
Restricted short-term investments |
|
|
4,250 |
|
|
|
4,250 |
|
Inventory |
|
|
20,807 |
|
|
|
24,976 |
|
Prepaid expenses |
|
|
10,008 |
|
|
|
10,715 |
|
Other current assets |
|
|
42,448 |
|
|
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