The Beachbody Company, Inc. saw sales decline 20 percent in the third quarter that ended September 30, but the subscription health and wellness company delivered third-quarter revenue and adjusted EBITDA results ahead of guidance.
“Our third quarter efforts reflect the solid progress we’re making to improve the business by generating demand through compelling content, and tightly controlling costs, all as we continue to navigate the challenging market dynamics facing our industry,” said Carl Daikeler, Beachbody’s Co-Founder, Chairman, and Chief Executive Officer. “Meanwhile, we’re focused on appropriately sizing and designing fitness and nutrition solutions to appeal to the millions of Americans who want to live happier and more fulfilling lives. Looking ahead, we will remain laser-focused on capitalizing on our growth opportunities as we drive towards profitability and free cash flow generation.”
Third Quarter 2022 Results
Total revenue was $165.9 million, a 20 percent decrease compared to 2021 and a 15 percent decrease compared to 2019. Revenue exceeded the mid-point of guidance by 7 percent. Digital revenue was $72.2 million, a 23 percent decrease compared to 2021. Digital subscriptions were 2.10 million, a 20 percent decrease compared to 2021 and a 24 percent increase compared to 2019. Nutrition and Other revenue was $90.4 million, a 16 percent decrease compared to 2021. Nutritional subscriptions were 0.24 million, a 29 percent decrease compared to 2021 and a 29 percent decrease to 2019. Connected Fitness revenue was $3.3 million, a 44 percent decrease compared to 2021. Delivered approximately 2,300 bikes in the third quarter.
Operating expenses were $140.9 million, a 32 percent decrease compared to 2021. Net loss was $33.9 million, compared to a net loss of $39.9 in 2021. Adjusted EBITDA1 was ($6.2) million, compared to ($43.4) million in 2021 and $19.5 million in 2019. Adjusted EBITDA exceeded the mid-point of guidance by $11.3 million.
Free cash flow was ($7.7) million, compared to ($147.6) million in 2021. Cash and cash equivalents were $94.1 million, a 53 percent decrease compared to 2021, but a 65 percent increase compared to the second quarter of 2022, driven by the August 2022 debt financing agreement, enhancing the company’s financial flexibility.
Fourth Quarter 2022 Expectations
Total revenue to be between $140 million and $150 million. Adjusted EBITDA loss to be between $9 million and $14 million.
Photo courtesy Beachbody
