Beachbody (BODi) Reports Fourth Quarter and FY 2024 Financial Results
Revenues in-line with the high-end of Guidance
Gross Margin of 70.5%-up 830 bps over prior year
Net Loss of $35 million includes Goodwill Impairment
Achieves Fifth Consecutive Quarter of Positive Adjusted EBITDA
EL SEGUNDO, Calif.--(BUSINESS WIRE)--March 27, 2025--
The Beachbody Company, Inc. (NYSE: BODi) ("BODi" or the "Company"), a leading fitness and nutrition company, today announced financial results for its fourth quarter ended December 31, 2024.
"2024 was a pivotal year at BODi, as we continued to build upon our strategy to transform the Company. Our turnaround plan successfully streamlined our digital platform, lowering our breakeven point and enhancing our liquidity position," said Carl Daikeler, BODi's Co-Founder and Chief Executive Officer. "We generated higher margin revenue streams and achieved positive operating cash flows while successfully rearchitecting the company from a Multi-Level Marketing network to a single level affiliate model. As we move into 2025, we have laid the foundation to execute the next phase of our turnaround which will maximize our market opportunities, and continue to generate positive operating cash flow through our multi-channel strategy and new innovative products."
Fourth Quarter 2024 Results
-- Total revenue was $86.4 million compared to $119.0 million in the prior
year period and was at the high end of the guidance range.
-- Digital revenue was $50.4 million compared to $64.0 million in the
prior year period and digital subscriptions totaled 1.07 million
in the fourth quarter.
-- Nutrition and Other revenue was $34.8 million compared to $51.8
million in the prior year period and nutritional subscriptions
totaled 0.09 million in the fourth quarter.
-- Connected Fitness revenue was $1.2 million compared to $3.2
million in the prior year period and approximately 2,700 bikes
were delivered in the fourth quarter.
-- Total operating expenses were $93.8 million, which included a $20.0
million impairment of goodwill, compared to $134.3 million in the prior
year period, which included a $43.1 million impairment of goodwill and
intangible assets.
-- Operating loss decreased by $27.5 million to $32.9 million compared to an
operating loss of $60.4 million in the prior year period.
-- Net loss was $34.6 million, which included a $20.0 million impairment of
goodwill, compared to a net loss of $65.0 million in the prior year
period, which included a $43.1 million impairment of goodwill and
intangible assets.
-- Adjusted EBITDA1 was $8.7 million compared to $2.8 million in the prior
year period.
Full Year 2024 Results
-- Total revenue was $418.8 million compared to $527.1 million in the prior
year.
-- Digital revenue was $224.3 million compared to $258.4 million in
the prior year.
-- Nutrition and Other revenue was $187.8 million compared to $249.5
million in the prior year.
-- Connected Fitness revenue was $6.6 million compared to $19.2
million in the prior year and approximately 9,000 bikes were
delivered in 2024.
-- Total operating expenses were $353.6 million, which included a $20.0
million impairment of goodwill, compared to $464.1 million in the prior
year, which included a $43.1 million impairment of goodwill and
intangible assets.
-- Operating loss decreased by $74.8 million to $66.2 million compared to an
operating loss of $141.0 million in the prior year.
-- Net loss was $71.6 million, which included a $20.0 million impairment of
goodwill, compared to a net loss of $152.6 million in the prior year,
which included a $43.1 million impairment of goodwill and intangible
assets.
-- Adjusted EBITDA1 was $28.3 million compared to a loss of $8.7 million in
the prior year.
-- Cash provided by operating activities for the year ended December 31,
2024 was $2.6 million compared to cash used in operating activities of
$22.5 million in the prior year, and cash provided by investing
activities was $1.1 million compared to cash used in investing activities
of $10.8 million in the prior year. Free cash flow1 was $(2.0) million
compared to $(29.1) million in the prior year.
(1) Definitions of (1) Adjusted EBITDA, (2) free cash flow and (3) net cash position, and reconciliations to the comparable GAAP metrics, are at the end of this release.
Key Operational and Business Metrics
As of or for the Three Months As of or for the Year Ended
Ended December 31, December 31,
-------------------------------- ---------------------------------
Change v Change v
2024 2023 2023 2024 2023 2023
------ ------ -------- ------ ------- --------
Digital
Subscriptions
(in millions) 1.07 1.31 (18.1%) 1.07 1.31 (18.1%)
Nutritional
Subscriptions
(in millions) 0.09 0.16 (44.1%) 0.09 0.16 (44.1%)
----- ----- -------- ----- ------ --------
Total
Subscriptions
(in millions) 1.16 1.47 (21.0%) 1.16 1.47 (21.0%)
Average Digital
Retention 97.8% 96.9% 90bps 96.8% 96.0% 80bps
Total Streams
(in millions) 18.2 20.4 (10.5%) 87.4 98.2 (11.1%)
DAU/MAU 30.7% 30.3% 40bps 31.7% 31.3% 40 bps
Connected
Fitness Units
Delivered (in
thousands) 2.7 4.1 (35.7%) 9.0 20.9 (56.9%)
Digital $ 50.4 $ 64.0 (21.4%) $224.3 $ 258.4 (13.2%)
Nutrition &
Other $ 34.8 $ 51.8 (32.8%) $187.8 $ 249.5 (24.7%)
Connected
Fitness $ 1.2 $ 3.2 (61.9%) $ 6.6 $ 19.2 (65.5%)
----- ----- -------- ----- ------ --------
Revenue (in
millions) $ 86.4 $119.0 (27.4%) $418.8 $ 527.1 (20.5%)
Net Loss (in
millions) $(34.6) $(65.0) 46.8% $(71.6) $(152.6) 53.1%
Adjusted EBITDA
(in millions) $ 8.7 $ 2.8 NM $ 28.3 $ (8.7) NM
----- ----- -------- ----- ------ --------
NM: Not
Meaningful
Outlook for The First Quarter of 2025
Outlook For Quarter Ending March 31, 2025
-------------------------------------------------
(in millions) Low High
----------------------- ----- -----------------
Revenue $ 60 $ 70
Net Loss $ (11) $ (7)
------ --------------- ---- ----- ----------
Adjustments:
-------------------
Depreciation and
Amortization $ 3 $ 3
Amortization of
Content Assets $ 3 $ 3
Interest Expense $ 1 $ 1
Equity-Based
Compensation $ 2 $ 2
------ --------------- ----- ----- ----------
Total Adjustments $ 9 $ 9
Adjusted EBITDA $ (2) $ 2
------ --------------- ---- ----- ----------
Conference Call and Webcast Information
BODi will host a conference call at 5:00pm ET on Thursday, March 27, 2025, 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) and provide the conference identification number: 112560. 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 April 3, 2025, by dialing (866) 813-9403 (U.S. & Canada). The replay passcode is 284281.
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 $(SEC.UK)$ 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)
As of December 31,
---------------------
2024 2023
--------- ---------
Assets
Current assets:
Cash and cash equivalents (restricted
cash of $0.1 million at December 31,
2024 and 2023, respectively) $ 20,187 $ 33,409
Restricted short-term investments 4,250 4,250
Inventory 16,303 24,976
Prepaid expenses 9,034 10,715
Other current assets 28,911 45,923
-------- --------
Total current assets 78,685 119,273
Property and equipment, net 12,749 45,055
Content assets, net 12,179 21,359
Goodwill 65,166 85,166
Right-of-use assets, net 3,063 3,063
Other assets 2,714 2,923
-------- --------
Total assets $ 174,556 $ 276,839
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 9,534 $ 10,659
Accrued expenses 24,982 42,147
Deferred revenue 77,273 97,169
Current portion of lease liabilities 1,338 1,835
Current portion of Term Loan 9,500 8,068
Other current liabilities 5,011 5,325
-------- --------
Total current liabilities 127,638 165,203
Term Loan 9,668 21,491
Long-term lease liabilities, net 1,973 1,425
Deferred tax liabilities, net 1 10
Other liabilities 7,106 5,950
-------- --------
Total liabilities 146,386 194,079
-------- --------
Stockholders' equity:
Preferred stock, $0.0001 par value;
100,000,000 shares authorized, none
issued and outstanding as of December
31, 2024 and 2023 -- --
Common stock, $0.0001 par value,
1,900,000,000 shares authorized
(1,600,000,000 Class A, 200,000,000
Class X and 100,000,000 Class C);
Class A: 4,218,828 and 3,978,356
shares issued and outstanding at
December 31, 2024 and 2023,
respectively; 1 1
Class X: 2,729,003 shares issued
and outstanding at December 31,
2024 and 2023, respectively; 1 1
Class C: no shares issued and
outstanding at December 31, 2024
and 2023 -- --
Additional paid-in capital 671,735 654,657
Accumulated deficit (643,518) (571,876)
Accumulated other comprehensive loss (49) (23)
-------- --------
Total stockholders' equity 28,170 82,760
-------- --------
Total liabilities and
stockholders' equity $ 174,556 $ 276,839
======== ========
The Beachbody Company, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Year Ended December
December 31, 31,
-------------------- --------------------
2024 2023 2024 2023
-------- --------- -------- ---------
Revenue:
Digital $ 50,356 $ 64,044 $224,335 $ 258,370
Nutrition and
other 34,806 51,781 187,835 249,510
Connected
fitness 1,212 3,185 6,626 19,229
------- -------- ------- --------
Total
revenue 86,374 119,010 418,796 527,109
Cost of revenue:
Digital 7,095 17,210 41,884 64,942
Nutrition and
other 16,614 24,230 78,172 109,170
Connected
fitness 1,790 3,598 11,396 29,910
------- -------- ------- --------
Total cost
of revenue 25,499 45,038 131,452 204,022
Gross profit 60,875 73,972 287,344 323,087
Operating expenses:
Selling and
marketing 38,984 59,952 200,145 282,147
Enterprise
technology and
development 22,109 17,782 76,370 74,407
General and
administrative 11,559 13,570 49,190 57,932
Restructuring 1,116 (53) 7,847 6,497
Impairment of
goodwill 20,000 40,000 20,000 40,000
Impairment of
intangible
assets -- 3,092 -- 3,092
------- -------- ------- --------
Total operating
expenses 93,768 134,343 353,552 464,075
------- -------- ------- --------
Operating
loss (32,893) (60,371) (66,208) (140,988)
Other income
(expense)
Loss on partial
debt
extinguishment (451) -- (2,379) (3,168)
Impairment of
other
investment -- (4,000) -- (4,000)
Change in fair
value of
warrant
liabilities (189) 1,175 1,144 2,679
Interest expense (1,709) (2,101) (6,882) (8,874)
Other income,
net 679 196 2,922 1,747
------- -------- ------- --------
Loss before income
taxes (34,563) (65,101) (71,403) (152,604)
Income tax benefit
(provision) 5 62 (239) (37)
------- -------- ------- --------
Net loss $(34,558) $ (65,039) $(71,642) $(152,641)
======= ======== ======= ========
Net loss per common
share, basic and
diluted $ (5.04) $ (10.31) $ (10.51) $ (24.47)
======= ======== ======= ========
Weighted-average
common shares
outstanding, basic
and diluted 6,857 6,307 6,818 6,239
======= ======== ======= ========
The Beachbody Company, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31,
---------------------------
2024 2023
------------- -----------
Cash flows from operating activities:
Net loss $ (71,642) $ (152,641)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Impairment of goodwill 20,000 40,000
Impairment of intangible assets -- 3,092
Impairment of other investments -- 4,000
Depreciation and amortization
expense 31,439 39,573
Amortization of content assets 15,667 23,755
Provision for inventory 4,204 10,561
Realized losses on hedging
derivative financial instruments 64 222
Change in fair value of warrant
liabilities (1,144) (2,679)
Equity-based compensation 17,069 23,891
Deferred income taxes 5 (191)
Amortization of debt issuance
costs 2,490 1,899
Paid-in-kind interest expense 808 1,310
Loss on partial debt
extinguishment 2,379 3,168
Change in lease assets -- 1,967
Gain on sale of property and
equipment (784) --
Changes in operating assets and
liabilities:
Inventory 4,376 17,508
Content assets (6,487) (10,226)
Prepaid expenses 1,681 2,340
Other assets 17,237 (4,438)
Accounts payable (906) (7,103)
Accrued expenses (16,570) (20,293)
Deferred revenue (16,693) 2,163
Other liabilities (631) (415)
--------- ----------
Net cash provided by (used
in) operating activities 2,562 (22,537)
--------- ----------
Cash flows from investing activities:
Purchase of property and equipment (4,542) (6,576)
Investment in restricted short-term
investments -- (4,250)
Proceeds from sale of property and
equipment 5,600 --
--------- ----------
Net cash provided by (used
in) investing activities 1,058 (10,826)
--------- ----------
Cash flows from financing activities:
Debt repayments (15,877) (17,000)
Proceeds from issuance of common
shares in the Employee Stock Purchase
Plan 272 553
Tax withholdings payments for vesting
of restricted stock (263) (2,178)
Proceeds from issuance of Equity
Offering, net of issuance costs -- 4,908
--------- ----------
Net cash used in financing
activities (15,868) (13,717)
--------- ----------
Effect of exchange rates on cash, cash
equivalents and restricted cash (974) 398
Net decrease in cash, cash equivalents
and restricted cash (13,222) (46,682)
Cash, cash equivalents and restricted
cash, beginning of year 33,409 80,091
--------- ----------
Cash, cash equivalents and restricted
cash, end of year $ 20,187 $ 33,409
========= ==========
The Beachbody Company, Inc.
Non GAAP Information
We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
We define and calculate Adjusted EBITDA as net income (loss) adjusted for impairment of goodwill and intangible assets, depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income tax provision, equity-based compensation, restructuring costs and other items that are not normal, recurring, operating expenses necessary to operate the Company's business as described in the reconciliation below.
We include this non-GAAP financial measure because it is used by management to evaluate BODi's core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, impairment of goodwill and intangible assets and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense).
The table below presents our Adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated:
Three months ended Year ended December
December 31, 31,
-------------------- --------------------
(in thousands) 2024 2023 2024 2023
-------- --------- -------- ---------
Net loss $(34,558) $ (65,039) $(71,642) $(152,641)
Adjusted for:
Impairment of
goodwill 20,000 40,000 20,000 40,000
Impairment of
intangible
assets -- 3,092 -- 3,092
Impairment of
other
investment -- 4,000 -- 4,000
Loss on partial
debt
extinguishment
(1) 451 -- 2,379 3,168
Depreciation and
amortization
(2) 12,683 8,178 31,439 39,573
Amortization of
capitalized
cloud computing
implementation
costs 38 57 150 179
Amortization of
content assets 3,142 7,268 15,667 23,755
Interest expense 1,709 2,101 6,882 8,874
Income tax
provision
(benefit) (5) (62) 239 37
Equity-based
compensation
(3) 4,374 4,739 17,069 23,891
Employee
incentives,
expected to be
settled in
equity (4) -- -- -- (5,466)
Pivot
restructuring
(5) 1,116 -- 7,647 --
Restructuring
and platform
consolidation
costs (6) -- (53) 1,644 7,169
Change in fair
value of
warrant
liabilities 189 (1,175) (1,144) (2,679)
Gain on sale of
property and
equipment -- -- (784) --
Non-operating
(7) (440) (309) (1,229) (1,649)
------- -------- ------- --------
Adjusted EBITDA $ 8,699 $ 2,797 $ 28,317 $ (8,697)
======= ======== ======= ========
(1) Represents the loss related to the $1.0 million, $5.5 million,
$4.0 million and $3.2 million partial debt prepayments that the
Company made on January 9, 2024, February 29, 2024, April 5, 2024
and October 18, 2024, respectively, and the $15.0 million partial
debt prepayment that the Company made on July 24, 2023.
(2) Includes accelerated depreciation expense of $8.2 million and
$11.1 million for the three months and year ended December 31, 2024,
respectively, related to certain long-lived assets that due to the
Company's announcement on September 30, 2024 that it was
transitioning its network business from a Multi-Level marketing
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