The beachbody company, inc. announces first quarter 2023 financial results
El segundo, calif.--(business wire)--the beachbody company, inc. (nyse: body) (“beachbody” or the “company”), a leading subscription health and wellness company, today announced financial results for its first quarter ended march 31, 2023. "during the quarter we successfully completed the transition to our expanded bodi platform", said carl daikeler, beachbody’s co-founder, chairman, and chief executive officer. "while we are still in the early stages of scaling this transformation, our subscribers clearly recognize the unrivaled value bodi offers with renewals and upgrades ahead of our expectations. we are also seeing the intended increase in ltv with higher than expected nutrition retention and healthy nutrition attachment rates. the early indications we have witnessed from the launch of bodi, along with the positive customer response to our health esteem platform and nutrition initiatives, give us confidence in our strategy as we progress towards a return to profitable growth by the end of the year.” first quarter 2023 results total revenue was $144.9 million compared to $198.9 million in the prior year period. digital revenue was $64.8 million compared to $81.7 million in the prior year and digital subscriptions totaled 1.75 million in the first quarter. nutrition and other revenue was $74.1 million compared to $97.7 million in the prior year and nutritional subscriptions totaled 0.21 million in the first quarter. connected fitness revenue was $6.0 million compared to $19.5 million in the prior year and approximately 4,700 bikes were delivered in the first quarter. digital revenue was $64.8 million compared to $81.7 million in the prior year and digital subscriptions totaled 1.75 million in the first quarter. nutrition and other revenue was $74.1 million compared to $97.7 million in the prior year and nutritional subscriptions totaled 0.21 million in the first quarter. connected fitness revenue was $6.0 million compared to $19.5 million in the prior year and approximately 4,700 bikes were delivered in the first quarter. operating loss improved by $47.0 million to $27.4 million compared to an operating loss of $74.4 million in the prior year period. net loss was $29.2 million compared to a net loss of $73.5 million in the prior year period. adjusted ebitda1 was ($0.9) million compared to ($19.1) million in the prior year period. cash used in operating activities was $7.9 million compared to $33.4 million in the prior year period, and cash used in investing activities was $3.4 million compared to $12.4 million in the prior year period. total cash used in operating and investing activities was $11.3 million compared to $45.8 million in the prior year period. key operational and business metrics 2023 2022 change v 2022 1.75 2.46 (28.9%) 0.21 0.30 (30.0%) 1.96 2.76 (29.0%) 95.9% 95.6% 29.7 38.2 (22.3%) 32.5% 31.6% 4.7 16.6 (71.7%) $64.8 $81.7 (20.7%) $74.1 $97.7 (24.2%) $6.0 $19.5 (69.2%) $144.9 $198.9 (27.1%) ($29.2) ($73.5) 60.3% ($0.9) ($19.1) 95.3% outlook for the second quarter of 2023 $125 $140 ($35) ($30) $11 $11 $6 $6 $2 $2 $6 $6 $1 $1 $25 $25 ($10) ($5) ---------------- 1 a definition of adjusted ebitda and reconciliation to net loss is at the end of this release. conference call and webcast information beachbody will host a conference call at 5:00pm et on monday, may 8, 2023, to discuss its financial results. to participate in the live call, please dial (833) 470-1428 (u.s. & canada), or +1 (404) 975-4839 (all other locations) and provide the conference identification number: 878296. the conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/. a replay of the call will be available until may 15, 2023, by dialing (866) 813-9403 (u.s & canada), or +1 (929) 458-6194 (all other locations). the replay passcode is 649427. after the conference call, a webcast replay will remain available on the investor relations section of the company’s website for one year. about bodi and the beachbody company, inc. headquartered in southern california, bodi is a leading digital fitness, nutrition, and mindset subscription company with over two decades of creating innovative content and nutritional supplements designed to support and enrich strong health esteem. the beachbody company, inc. is the parent company of bodi. for more information, please visit thebeachbodycompany.com. safe harbor statement this press release of the beachbody company, inc. (“we,” “us,” “our,” and similar terms) contains "forward-looking" statements within the meaning of section 27a of the securities act of 1933, as amended, and section 21e of the securities exchange act of 1934, as amended, which are statements other than statements of historical facts and statements in future tense. these statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the first quarter and full year, the potential impact of covid-19 on the fitness and wellness industry in general as well as our business, our business strategy, our plans, and our objectives and future operations. forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof, and are subject to risks and uncertainties. accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; and litigation and the ability to adequately protect our intellectual property rights. you can identify these statements by the use of terminology such as "believe", “plans”, "expect", "will", "should," "could", "estimate", "anticipate" or similar forward-looking terms. you should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. for more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "risk factors" section of our securities and exchange commission (sec) filings, including those risks and uncertainties included in the form 10-k filed with the sec on march 16, 2023 and any subsequent quarterly reports on form 10-q or current reports on form 8-k, which are available on the investor relations page of our website at https://investors.thebeachbodycompany.com and on the sec website at www.sec.gov. all forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. the events and circumstances reflected in the forward-looking statements may not be achieved or occur. although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. we undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. undue reliance should not be placed on forward-looking statements. the beachbody company, inc. consolidated balance sheets 2023 2022 $ 66,393 $ 80,091 48,304 54,060 11,403 13,055 45,687 39,248 171,787 186,454 67,395 74,147 31,551 34,888 125,166 125,166 6,926 8,204 4,520 5,030 8,428 9,506 $ 415,773 $ 443,395 $ 16,754 $ 17,940 54,784 64,430 99,894 95,587 2,100 2,150 1,250 1,250 3,513 3,283 178,295 184,640 40,276 39,735 2,794 3,318 172 181 4,679 3,979 226,216 231,853 — — 18 17 14 14 — — 638,135 630,709 (448,423) (419,235) (187) 37 189,557 211,542 $ 415,773 $ 443,395 the beachbody company, inc. consolidated statements of operations 2023 2022 $ 64,773 $ 81,745 74,120 97,664 6,008 19,513 144,901 198,922 14,967 16,425 31,039 44,774 7,555 44,706 53,561 105,905 91,340 93,017 76,576 106,444 19,096 33,697 17,716 20,073 5,387 7,223 118,775 167,437 (27,435) (74,420) 57 264 (2,331) (19) 569 (64) (29,140) (74,239) (48) 706 $ (29,188) $ (73,533) $ (0.09) $ (0.24) 309,141 306,363 the beachbody company, inc. consolidated statements of cash flows 2023 2022 $ (29,188) $ (73,533) 10,713 21,587 5,561 6,164 2,734 16,896 (87) 69 (57) (264) 9,555 4,564 (53) (808) 479 — 374 — — 91 3,056 15,887 (2,224) (6,448) 1,652 (293) (4,958) 2,895 (1,366) (20,752) (8,768) (1,386) 4,746 2,370 (38) (410) (7,869) (33,371) (3,417) (12,403) (3,417) (12,403) — 2,115 — (192) (313) — (2,128) — (2,441) 1,923 29 223 (13,698) (43,628) 80,091 107,054 $ 66,393 $ 63,426 $ 1,464 $ 10 (265) 32 $ 1,291 $ 4,225 the beachbody company, inc. adjusted ebitda in addition to our results determined in accordance with accounting principles generally accepted in the united states, or gaap, we believe the following non-gaap financial measure of adjusted ebitda is useful in evaluating our operating performance. we define and calculate adjusted ebitda as net income (loss) adjusted for depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income taxes, equity-based compensation, inventory net realizable value adjustments, restructuring, change in fair value of warrant liabilities, and other items that are not normal, recurring, operating expenses necessary to operate the company’s business. the presentation of this non-gaap financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with gaap. investors are encouraged to review the reconciliation of this non-gaap financial measure to its most directly comparable gaap financial measure. a reconciliation of our non-gaap adjusted ebitda to gaap net income (loss) can be found below: three months ended march 31, 2023 2022 $ (29,188) $ (73,533) 10,713 21,587 41 168 5,561 6,164 2,331 19 48 (706) 9,555 4,564 (5,466) — — 14,934 6,059 7,887 (57) (264) (484) 72 $ (887) $ (19,108) 1 the non-cash charge for employee incentives which were expected to be settled in equity was recorded and included in the adjusted ebitda calculation during the year ended december 31, 2022. during the three months ended march 31, 2023, we reclassified the non-cash charge from employee incentives expected to be settled in equity to equity-based compensation because we settled certain employee incentives with rsu awards during the period. 2 represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. this adjustment was included during the three months ended march 31, 2022, because of its unusual magnitude due to disruptions in the connected fitness market. 3 includes restructuring expense and non-recurring personnel costs associated with executing our key growth priorities during the three months ended march 31, 2023, and with the consolidation of our digital platforms during the three months ended march 31, 2022. 4 primarily includes interest income.
