The beachbody company, inc. announces third quarter 2022 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 third quarter ended september 30, 2022. “our third quarter efforts reflect the solid progress we’re making to improve the business by generating demand through compelling content, and tightly controlling costs, all as we continue to navigate the challenging market dynamics facing our industry,” said carl daikeler, beachbody’s co-founder, chairman, and chief executive officer. “meanwhile, we’re focused on appropriately sizing and designing fitness and nutrition solutions to appeal to the millions of americans who want to live happier and more fulfilling lives. looking ahead, we will remain laser-focused on capitalizing on our growth opportunities as we drive towards profitability and free cash flow generation.” third quarter 2022 results total revenue was $165.9 million, a 20% decrease compared to 2021 and a 15% decrease compared to 2019 revenue exceeded the mid-point of guidance by 7% revenue exceeded the mid-point of guidance by 7% digital revenue was $72.2 million, a 23% decrease compared to 2021 digital subscriptions were 2.10 million, a 20% decrease compared to 2021 and a 24% increase compared to 2019 digital subscriptions were 2.10 million, a 20% decrease compared to 2021 and a 24% increase compared to 2019 nutrition and other revenue was $90.4 million, a 16% decrease compared to 2021 nutritional subscriptions were 0.24 million, a 29% decrease compared to 2021 and a 29% decrease to 2019 nutritional subscriptions were 0.24 million, a 29% decrease compared to 2021 and a 29% decrease to 2019 connected fitness revenue was $3.3 million, a 44% decrease compared to 2021 delivered approximately 2,300 bikes in the third quarter delivered approximately 2,300 bikes in the third quarter operating expenses were $140.9 million, a 32% decrease compared to 2021 net loss was $33.9 million, compared to a net loss of $39.9 in 2021 adjusted ebitda1 was ($6.2) million, compared to ($43.4) million in 2021 and $19.5 million in 2019 adjusted ebitda exceeded the mid-point of guidance by $11.3 million adjusted ebitda exceeded the mid-point of guidance by $11.3 million free cash flow was ($7.7) million, compared to ($147.6) million in 2021 cash and cash equivalents were $94.1 million, a 53% decrease compared to 2021, but a 65% increase compared to the second quarter of 2022, driven by the august 2022 debt financing agreement, enhancing the company’s financial flexibility key operational and business metrics for the three months ended september 30, for the nine months ended september 30, 2022 2021 change v 2021 2019 change v 2019 pre-covid baseline 2022 2021 change v 2021 2019 change v 2019 pre-covid baseline 2.10 2.64 (20%) 1.70 24% 2.10 2.64 (20%) 1.70 24% 0.24 0.34 (29%) 0.34 (29%) 0.24 0.34 (29%) 0.34 (29%) 2.34 2.98 (21%) 2.04 15% 2.34 2.98 (21%) 2.04 15% 95.7% 95.6% 10bps 95.2% 50bps 95.6% 95.5% 10bps 95.1% 50bps 27.5 35.9 (23%) 26.5 4% 96.7 136.4 (29%) 78.5 23% 29.5% 29.6% (10bps) 29.4% 10bps 30.4% 32.1% (170bps) 29.2% 120bps 2.3 6.5 (64%) 0.0 nm 27.7 7.0 299% 0.0 nm $72.2 $94.1 (23%) $68.1 6% $232.0 $283.5 (18%) $192.8 20% $90.4 $108.1 (16%) $127.9 (29%) $278.6 $367.9 (24%) $397.8 (30%) $3.3 $5.9 (44%) $- nm $33.4 $5.9 466% $- nm $165.9 $208.1 (20%) $196.0 (15%) $544.0 $657.3 (17%) $590.7 (8%) $(33.9) $(39.9) 15% $3.4 (1099%) $(149.3) $(82.4) (81%) $30.5 (589%) $(6.2) $(43.4) 86% $19.5 (132%) $(26.8) $(59.5) 55% $59.2 (145%) 2022 financial outlook 2 for the fourth quarter of 2022 the company expects: total revenue to be between $140 million and $150 million adjusted ebitda loss to be between $9 million and $14 million ---------------- 1 a definition of adjusted ebitda and reconciliation to net loss is at the end of this release. 2 net loss guidance is not reasonably available due to potential changes in matters that we cannot forecast at this time. conference call and webcast information beachbody will host a conference call at 5:00pm et on wednesday, november 9, 2022 to discuss its financial results. to participate in the live call, please dial (844) 200-6205 (u.s. & canada), or (646) 904-5544 (all other locations) and provide the conference identification number: 577340. 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 november 16, 2022 by dialing (866) 813-9403 (u.s & canada), or (929) 458-6194 (all other locations). the replay passcode is 137285. after the conference call, a webcast replay will remain available on the investor relations section of the company’s website for one year. about the beachbody company, inc. headquartered in southern california, beachbody is a leading digital fitness and nutrition subscription company with over two decades of creating innovative content and powerful brands. the beachbody company is the parent company of the beachbody on demand streaming platform (bod), including its live digital streaming subscription bodi, and the beachbody bike powered by myxfitness, the company's connected indoor bike. for more information, please visit thebeachbodycompany.com. safe harbor statement this press release contains "forward-looking" statements pursuant to the safe harbor provisions of the securities litigation reform act of 1995, which are statements other than historical fact or in the 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 second quarter and full year, 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 1, 2022 and quarterly reports on form 10-q, which are available on the investor relations page of the beachbody 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. condensed consolidated balance sheets 2022 2021 $ 94,063 $ 104,054 - 3,000 67,993 132,730 7,181 15,861 41,028 43,727 210,265 299,372 82,030 113,098 36,783 39,347 156,800 171,533 12,727 14,262 $ 498,605 $ 637,612 $ 13,867 $ 48,379 71,695 74,525 102,086 107,095 1,250 - 3,879 6,233 192,777 236,232 39,474 - 1,319 3,165 12,702 12,830 246,272 252,227 — — 17 17 14 14 — — 626,255 610,418 349 (21 ) (374,302 ) (225,043 ) 252,333 385,385 $ 498,605 $ 637,612 the beachbody company, inc. unaudited condensed consolidated statements of operations three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 $ 72,228 $ 94,072 $ 231,988 $ 283,547 90,416 108,053 278,596 367,895 3,331 5,927 33,449 5,937 165,975 208,052 544,033 657,379 16,078 12,124 50,909 34,858 40,486 50,682 127,262 164,679 4,745 10,261 80,910 10,417 61,309 73,067 259,081 209,954 104,666 134,985 284,952 447,425 93,145 153,782 286,213 438,672 25,686 29,680 83,516 83,718 19,532 23,346 59,189 58,523 1,492 — 10,047 — 1,000 — 1,000 — 140,855 206,808 439,965 580,913 (36,189 ) (71,823 ) (155,013 ) (133,488 ) 2,362 30,274 4,696 35,664 (1,152 ) (62 ) (1,174 ) (490 ) 571 202 696 3,155 (34,408 ) (41,409 ) (150,795 ) (95,159 ) 549 1,487 1,536 12,739 $ (33,859 ) $ (39,922 ) $ (149,259 ) $ (82,420 ) $ (0.11 ) $ (0.13 ) $ (0.49 ) $ (0.31 ) 307,949 304,599 307,178 265,117 the beachbody company, inc. unaudited condensed consolidated statements of cash flows (in thousands) 2022 2021 $ (149,259 ) $ (82,420 ) 1,000 — 58,858 40,557 18,673 10,008 35,195 4,431 141 481 — (3,114 ) (4,696 ) (35,664 ) 13,166 10,839 (1,754 ) (12,964 ) 262 — 221 — 311 — 31,676 (68,765 ) (16,111 ) (21,958 ) 8,681 (5,364 ) 4,496 (5,762 ) (30,379 ) 9,095 (209 ) (406 ) (3,690 ) 27,041 (3,525 ) (5,294 ) (36,943 ) (139,259 ) (23,236 ) (61,065 ) — (5,000 ) — (5,000 ) — (37,280 ) (23,236 ) (108,345 ) 3,162 4,477 (308 ) (3,154 ) — 42,000 — (42,000 ) — 389,125 (183 ) — 50,000 — (313 ) — (4,075 ) — 48,283 390,448 (1,095 ) 168 (12,991 ) 143,012 107,054 56,827 $ 94,063 $ 199,839 $ 738 $ 389 365 389 $ 789 $ 13,640 — 162,558 — 22,618 $ — $ 293 5,236 — 136 — 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 impairment of goodwill and intangible assets, depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income taxes, equity-based compensation, net realizable value adjustment, 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 loss can be found below: three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 $ (33,859 ) $ (39,922 ) $ (149,259 ) $ (82,420 ) 1,000 — 1,000 — 17,306 14,616 58,858 40,557 126 168 462 504 5,493 3,889 18,673 10,008 1,152 62 1,174 490 (549 ) (1,487 ) (1,536 ) (12,739 ) 5,601 5,744 13,166 10,839 (1,867 ) — 23,569 — — 677 2 2,819 1,745 — 11,718 — (2,362 ) (30,274 ) (4,696 ) (35,664 ) — 3,044 — 9,082 (15 ) 71 61 (3,017 ) $ (6,229 ) $ (43,412 ) $ (26,808 ) $ (59,541 ) (1) represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. this adjustment is included because of its unusual magnitude due to disruptions in the connected fitness market. (2) includes restructuring expense and non-recurring personnel costs associated primarily with the consolidation of our digital platforms. (3) incremental costs associated with covid-19. (4) includes interest income, and during the nine months ended september 30, 2021, also includes the gain on investment on the myx convertible instrument.
