The Beachbody Company, Inc. reported a net loss in the second quarter as sales declined 20 percent year-over-year. Total subscriptions were down 18 percent year-over-year but ahead 26 percent against the pre-COVID 2019 quarter.
“Our results in the second quarter reflect continued progress on our One Brand strategy to make the business more efficient and more productive. With a strong focus and solid execution, we reduced cash usage by more than $30 million compared to the first quarter, drove profitable customer acquisition through new content releases, our highly effective proprietary sales network and disciplined marketing, and delivered Adjusted EBITDA above our guidance,” said Carl Daikeler, Beachbody’s co-founder, chairman, and chief executive officer. “While the near-term environment remains dynamic, the actions we are taking to adapt our business model position us to successfully navigate current market realities. We will continue to leverage our unique business model, significant scale and our talented and focused management team to capitalize on the significant long-term opportunity we see in what remains a large and massively underpenetrated market.”
Second Quarter 2022 Results
- Total revenue was $179.1 million, a 20 percent decrease compared to 2021 and a 3 percent decrease compared to 2019;
- Digital revenue was $78.0 million, a 17 percent decrease compared to 2021. Digital subscriptions were 2.28 million, a 16 percent decrease compared to 2021 and a 35 percent increase compared to 2019; 95.6 percent month-over-month average digital retention, a 70-basis point increase compared to 2021 and a 40-basis point increase compared to 2019;
31.0 million total streams, a 30 percent decrease compared to 2021, and a 22 percent increase compared to 2019; and
30.0 percent DAU/MAU, a 190-basis point decrease compared to 2021, and a 140-basis point increase compared to 2019
- Connected Fitness revenue was $10.6 million, compared to none in 2021. Approximately 8,800 bikes were delivered in the second quarter; on a pre-merger basis, Connected Fitness revenue was $11.0 million in Q2 2021, with approximately 10,200 bikes delivered;
- Nutrition and Other revenue was $90.5 million, a 30 percent decrease compared to 2021. Nutritional subscriptions were 0.28 million, compared to 0.42 million in 2021 and 0.34 million in 2019;
- Net loss was $41.9 million, compared to a net loss of $12.4 million in 2021 and a net income of $19.6 million in 2019; and
- Adjusted EBITDA was $1.5 million, compared to $4.4 million in 2021 and $17.7 million in 2019.
Balance Sheet Update
The company also announced it had entered into an agreement with Blue Torch Capital to provide $50 million in debt financing which will serve to enhance Beachbody’s financial flexibility. The agreement also includes the option for Beachbody to borrow up to an additional $25 million, subject to the terms of the credit agreement.
2022 Financial Outlook
During fiscal 2022, the company now expects to realize a combined Adjusted EBITDA loss improvement and capital expenditure reduction of approximately $110 million to $120 million, compared to 2021. For the third quarter of 2022 the company expects total revenue of $150 million to $160 million; and adjusted EBITDA loss of $15 million to $20 million.