The Beachbody Company, Inc. reported sales fell 18.3 percent in the second quarter ended June 30, but revenues still surpassed the midpoint of guidance with the net loss and adjusted EBITDA topping guidance.

Carl Daikeler, Beachbody’s co-founder and chief executive officer, commented: “Our focus is on returning to growth, particularly by focusing on the $164 billion nutrition market, which presents an opportunity more than 12 times larger than the $13 billion fitness market. Nutrition was once an $800 million product line for us, more than double our fitness offerings at the time.

“We are implementing multiple new strategies to recapture a significant portion of the vast nutrition market opportunity which is characterized by consistent growth. This is a market that the company knows extremely well. BODi has had a meaningful presence in the nutrition market dating back 20 years, and runs this business with very high gross margins.

“In parallel, we have significantly improved our operations and efficiency, reducing our revenue breakeven point1 by more than 40 percent from over $900 million to under $500 million. This positions us well to generate sustainable cash flows as we execute our growth initiatives, with a key focus on the nutrition business.”

Second Quarter 2024 Results

  • Total revenue was $110.2 million compared to $134.9 million in the prior year period.
  • Digital revenue was $58.8 million compared to $65.2 million in the prior year period and digital subscriptions totaled 1.15 million in the second quarter.
  • Nutrition and Other revenue was $50.1 million compared to $64.6 million in the prior year period and nutritional subscriptions totaled 0.14 million in the second quarter.
  • Connected Fitness revenue was $1.3 million compared to $5.1 million in the prior year period and approximately 1,600 bikes were delivered in the second quarter.
  • Total operating expenses were $85.9 million compared to $106.9 million in the prior year period.
  • Operating loss improved by $14.7 million to $9.5 million compared to an operating loss of $24.2 million in the prior year period.
  • Net loss was $10.9 million compared to a net loss of $25.7 million in the prior year period.
  • Adjusted EBITDA was $4.9 million compared to a loss of $4.8 million in the prior year period.
  • Cash provided by operating activities for the six months ended June 30, 2024 was $8.2 million compared to cash used in operating activities of $14.4 million in the prior year period, and cash provided by investing activities was $2.7 million compared to cash used in investing activities of $5.0 million in the prior year period. Free cash flow was $5.3 million compared to $(19.4) million in the prior year period.

For the third quarter, sales are expected in the range of $97 million and $107 million, Net loss is expected to range between a loss of $13 million and a loss of $9 million. In the year-ago period, the loss came to $32.7 million on sales of $128.3 million.

Founded in 1999, Beachbody (BODi) produces fitness and nutrition programs, including P90X, Insanity, 21-Day Fix, and manufactures the nutrition supplement Shakeology.

Image courtesy Beachbody