The Beachbody Co., in its first report since going public, reported total revenue in the second quarter was $223.1 million, a 2 percent increase compared to 2020 and a 21 percent increase compared to 2019.

Other highlights for the quarter for the subscription health and wellness company include:

  • Digital revenue was $94.3 million, a 20 percent increase compared to 2020 and a 61 percent increase compared to 2019;
  • Digital subscriptions were 2.7 million at period end, a 13 percent increase compared to 2020 and a 61 percent increase compared to 2019;
  • 9 percent DAU/MAU, a 130-basis point decrease compared to 2020 and a 330 basis points increase compared to 2019;
  • 5 million total streams, a 20 percent decrease compared to 2020 and a 75 percent increase compared to 2019;
  • 9 percent month-over-month digital retention, 140-basis point decrease compared to 2020 and 30-basis point decrease compared to 2019;
  • Nutrition and other revenue was $128.8 million, an 8 percent decrease compared to 2020 and a 3 percent increase compared to 2019;
  • Nutritional subscriptions were 0.4 million compared to 0.5 million in 2020 and 0.3 million in 2019;
  • Net loss was $12.4 million compared to a net loss of $10.0 million in 2020 and net income of $19.6 million in 2019; and
  • Adjusted EBITDA was ($4.4) million, compared to $0.9 million in 2020 and $17.7 million in 2019.

Beachbody completed a three-way business combination with Myx Fitness Holdings and Forest Road Acquisition Corp. on June 25, 2021. Results for its second quarter and six months ended June 30, 2021 include five days of results for Myx. Due to the impact of COVID-19 on its second-quarter 2020 results, the company also provided comparisons to its second quarter of 2019.

“Over the last two decades, Beachbody has established itself as a worldwide leader in subscription health & wellness through the development of compelling digital fitness content and proprietary nutritional products that deliver results for millions of customers,” said Carl Daikeler, Beachbody’s co-founder, chairman and CEO. “Completing our merger, adding connected fitness to the Beachbody portfolio and bringing Beachbody to the public market has now set the stage for a multi-year period of accelerated growth,” he added. “The addition of Myx enhances our holistic approach to health & wellness and provides us with tremendous opportunity to serve our customers with the enhancements they have been asking for, specifically a high quality connected indoor bike and live content produced with the same innovation that has been Beachbody’s signature since the days of P90X. Looking ahead, we believe the business is poised to benefit from several drivers, including our first ever Beachbody brand advertising campaign, the launch of our new live interactive content subscription offering BOD Interactive (BODi) and the sell-in of the MYX bike to our customer base and powerful network of coaches and influencers.”

“We continued to execute to our proven business model during the second quarter, introducing new digital content and nutritional products that have been well received by our subscribers,” said Sue Collyns, Beachbody’s president and chief financial officer. “However, the delay in closing our business combination resulted in us deferring $12 million of media investments and postponing the launch of the MYX bike within our coach ecosystem until the second half of the year,” she added. “Moving forward, we are well-positioned to execute on our strategic objectives with over $347 million of cash on our balance sheet, a decision to ramp up connected fitness unit projections, and increase media investment by an incremental $33 million in the second half of 2021 compared to previous forecasts.”

“The digital disruption of fitness is here, unlocking and expanding the total addressable market. Beachbody is uniquely positioned at the forefront of three megatrends driving this shift—the rise of digital streaming subscriptions, the popularity of connected fitness and the heightened demand for effective health & wellness solutions,” stated Daikeler. “Beachbody has a proven approach, with entry points across multiple platforms and our long history of successfully acquiring, engaging and retaining subscribers. While we remain keenly aware that the near-term COVID variant and macro conditions present heightened uncertainty as we head into the second half of the year, I remain very upbeat on our long-term prospects and confident in our ability to scale the business and create significant shareholder value as conditions begin to normalize.”

Financial Performance Guidance
The merger between Beachbody, Forest Road Acquisition Corp. and Myx Fitness Holdings, LLC on June 25, 2021 occurred one quarter after the forecasted date and resulted in deferring $12.0 million of media investments to the second half of the year. With the merger complete, the company now plans to integrate the content of both digital platforms onto the bike in September 2021. In addition, given its strong cash position of $347.2 million, it also plans to increase its media investment in the second half of 2021 compared to previous forecasts by $33.0 million for a total of $189.0 million in 2021. Beachbody also said it is increasing its estimated connected fitness bike forecasts by approximately 30 percent to 95,000 units.

“While we expect these initiatives to drive long-term value, they are projected to negatively impact Adjusted EBITDA in the second half of 2021 as they are not forecasted to generate a meaningful in-year payback. Given the many consumer and supply chain variables created by the pandemic, we feel it is prudent to present a more conservative view with respect to our outlook for the remainder of the year,” said Beachbody.

For the fiscal year ending December 31, 2021, the company currently expects:

  • Total revenue between $930.0 million and $960.0 million; and
  • Adjusted EBITDA between ($110.0) million and ($100.0) million.

Photo courtesy Beachbody