The Beachbody Company, Inc. reported sales declined 22.7 percent in the third quarter but revenue and cash used in operations ahead of the midpoint of guidance and the subscription health and wellness company indicated the company is making progress with its transformation efforts.

“We are pleased with our third quarter results, with revenue, Adjusted EBITDA and cash used in operations once again within our guidance range. We are encouraged by the advancements we have made in our company transformation, particularly in our cost reduction efforts and reinventing our digital platform,” said Carl Daikeler, BODi’s co-founder and chief executive officer. “For the remainder of the year, we are intensely focused on the execution of our sales and marketing initiatives, which we believe will drive activation, engagement and increased efficiency. Our turnaround is in place and we are building towards increasing liquidity and driving revenues that are more profitable. I would like to thank the BODi team for their extremely hard work, as we continue on our transformation.”

Third Quarter 2023 Results

  • Total revenue was $128.3 million compared to $166.0 million in the prior year period.
    • Digital revenue was $64.3 million compared to $72.2 million in the prior year period and digital subscriptions totaled 1.38 million in the third quarter.
    • Nutrition and Other revenue was $59.0 million compared to $90.4 million in the prior year period and nutritional subscriptions totaled 0.18 million in the third quarter.
    • Connected Fitness revenue was $4.9 million compared to $3.3 million in the prior year period and approximately 6,500 bikes were delivered in the third quarter.
  • Total operating expenses were $104.0 million compared to $140.9 million in the prior year period.
  • Operating loss improved by $7.2 million to $29.0 million compared to an operating loss of $36.2 million in the prior year period.
  • Net loss was $32.7 million compared to a net loss of $33.9 million in the prior year period.
  • Adjusted EBITDA was $(5.8) million compared to $(6.2) million in the prior year period.
  • Cash used in operating activities for the nine months ended September 30, 2023, was $14.6 million compared to $36.9 million in the prior year period, and cash used in investing activities was $9.7 million compared to $23.2 million in the prior year period. Total cash used in operating and investing activities was $24.3 million compared to $60.1 million in the prior year period.

Marc Suidan, CFO, stated: “In the quarter, our cash used in operations was $0.2 million compared to our guidance of cash used of less than $5 million. Year to date, cash used in operating and investing activities was $24 million, compared to $60 million last year and $248 million from 2021. We continue to manage our cash use and are reducing cash needs.”