The Beachbody Company, Inc., the subscription health and wellness company, reported a wider loss in Q1 ended March 31 as sales declined 12 percent.

“We were pleased to deliver top-and-bottom line results in the first quarter that were ahead of our guidance. This momentum, coupled with a positive response to new launches, demonstrates our ability to quickly create demand through compelling content as well as the power of our synergistic approach that combines digital fitness, nutrition and community within a single ecosystem,” said Carl Daikeler, Beachbody co-founder, chairman, and chief executive officer. “Our performance in a dynamic environment also reflects the resilience and agility of our content-driven business. With a steady cadence of exciting content launches throughout 2022 and a focus on disciplined marketing and efficient customer acquisition, we expect to not only drive revenue but also further enhance our operating metrics. We remain on track to deliver significant cost savings this year as we implement our One Brand strategy and other organizational efficiencies.”

First Quarter 2022 Results

  • Total revenue was $198.9 million, a 12 percent decrease compared to 2021 and a 6 percent decrease compared to 2019;
  • Digital revenue was $81.7 million, a 14 percent decrease compared to 2021;
  • Digital subscriptions were 2.46 million, a 10 percent decrease compared to 2021 and a 48 percent increase compared to 2019;
  • 95.6 percent month-over-month average digital retention, a 20-basis point decrease compared to 2021 and a 60-basis point increase compared to 2019;
  • 38.2 million total streams, a 32 percent decrease compared to 2021, and a 44 percent increase compared to 2019;
  • 31.6 percent DAU/MAU, a 350-basis point decrease compared to 2021, and a 200-basis point increase compared to 2019;
  • Connected Fitness’ revenue was $19.5 million, compared to none in 2021, which preceded the Myx Fitness acquisition;
  • Approximately 16,600 bikes were delivered in Q1;
  • On a pre-merger basis, Connected Fitness’ revenue was $14.7 million in Q1 2021, with approximately 11,900 bikes delivered;
  • Nutrition and Other revenue was $97.7 million, a 25 percent decrease compared to 2021;
  • Nutritional subscriptions were 0.30 million, compared to 0.42 million in 2021 and 0.38 million in 2019;
  • Net loss was $73.5 million, compared to a net loss of $30.1 million in 2021 and a net income of $7.5 million in 2019; and
  • Adjusted EBITDA1 was ($19.1) million, compared to ($11.7) million in 2021 and $22.0 million in 2019.

2022 Financial Outlook
During fiscal 2022, the company expects to realize a combined Adjusted EBITDA loss improvement and CAPEX reduction of approximately $120 million, $10 million more than previous guidance, compared to 2021.

For the second quarter of 2022 the company expects:

  • Total revenue of $175 million to $185 million;
  • Adjusted EBITDA loss of $7 million to $12 million; and
  • Net loss guidance is not reasonably available due to potential changes in matters that we cannot forecast at this time.

Headquartered in Southern California, Beachbody is the parent company of the Beachbody On Demand streaming platform, including its live digital streaming subscription BODi and the Beachbody Bike powered by MYXfitness, the company’s connected indoor bike.

Photo courtesy Beachbody/MYXfitness