The beachbody company, inc. announces second 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 second quarter ended june 30, 2022. “our results in the second quarter reflect continued progress on our one brand strategy to make the business more efficient and more productive. with 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% decrease compared to 2021 and a 3% decrease compared to 2019 digital revenue was $78.0 million, a 17% decrease compared to 2021 digital subscriptions were 2.28 million, a 16% decrease compared to 2021 and a 35% increase compared to 2019 95.6% 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% decrease compared to 2021, and a 22% increase compared to 2019 30.0% dau/mau, a 190-basis point decrease compared to 2021, and a 140-basis point increase compared to 2019 digital subscriptions were 2.28 million, a 16% decrease compared to 2021 and a 35% increase compared to 2019 95.6% 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% decrease compared to 2021, and a 22% increase compared to 2019 30.0% 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 20211 approximately 8,800 bikes 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 approximately 8,800 bikes 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% decrease compared to 2021 nutritional subscriptions were 0.28 million, compared to 0.42 million in 2021 and 0.34 million in 2019 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 net income of $19.6 million in 2019 adjusted ebitda2 was ($1.5) million, compared to ($4.4) million in 2021 and $17.7 million in 2019 key operational and business metrics for the three months ended june 30, for the six months ended june 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 8.8 0.5 nm 0.0 nm 25.4 0.5 nm 0.0 nm 2.28 2.72 (16%) 1.69 35% 2.28 2.72 (16%) 1.69 35% 0.28 0.42 (33%) 0.34 (18%) 0.28 0.42 (33%) 0.34 (18%) 2.56 3.14 (18%) 2.03 26% 2.56 3.14 (18%) 2.03 26% 95.6% 94.9% 70bps 95.2% 40bps 95.6% 95.4% 20bps 95.1% 50bps 31.0 44.5 (30%) 25.5 22% 69.2 100.4 (31%) 52.0 33% 30.0% 31.9% (190bps) 28.6% 140bps 31.6% 33.5% (190bps) 29.1% 250bps $78.0 $94.3 (17%) $58.8 33% $159.8 $189.5 (16%) $124.8 28% $10.6 $0.0 nm $0.0 nm $30.1 $0.0 nm $0.0 nm $90.5 $128.8 (30%) $124.9 (28%) $188.2 $259.8 (28%) $269.9 (30%) $179.1 $223.1 (20%) $183.7 (3%) $378.1 $449.3 (16%) $394.7 (4%) ($41.9) ($12.4) (238%) $19.6 (314%) ($115.4) ($42.5) (172%) $27.1 (526%) ($1.5) ($4.4) 66% $17.7 (108%) ($20.6) ($16.1) (28%) $39.7 (152%) balance sheet update the company also announced that it has 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 3 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 adjusted ebitda loss of $15 million to $20 million _______________ 1 q2 2021 only included 5 days of results for connected fitness. 2 a definition of adjusted ebitda and reconciliation to net loss is at the end of this release. 3 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 monday, august 8, 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: 440786. 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 august 15, 2022 by dialing (866) 813-9403 (u.s & canada), or (929) 458-6194 (all other locations). the replay passcode is 669965. 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 (in thousands, except share and per share data) 2022 2021 $57,060 $104,054 — 3,000 72,271 132,730 10,317 15,861 44,828 43,727 184,476 299,372 92,301 113,098 38,098 39,347 162,361 171,533 12,803 14,262 $490,039 $637,612 $22,676 $48,379 62,349 74,525 107,282 107,095 4,564 6,233 196,871 236,232 2,031 3,165 10,981 12,830 209,883 252,227 — — 17 17 14 14 — — 620,643 610,418 (75 ) (21 ) (340,443 ) (225,043 ) 280,156 385,385 $490,039 $637,612 the beachbody company, inc. unaudited condensed consolidated statements of operations (in thousands, except per share data) 2022 2021 2022 2021 $78,015 $94,325 $159,760 $189,475 10,605 10 30,118 10 90,516 128,773 188,180 259,842 179,136 223,108 378,058 449,327 18,406 11,612 34,831 22,734 31,459 156 76,165 156 42,002 57,002 86,776 113,997 91,867 68,770 197,772 136,887 87,269 154,338 180,286 312,440 86,624 140,194 193,068 284,890 24,133 26,949 57,830 54,038 19,584 17,231 39,657 35,177 1,332 — 8,555 — 131,673 184,374 299,110 374,105 (44,404 ) (30,036 ) (118,824 ) (61,665 ) 2,070 5,390 2,334 5,390 (3 ) (305 ) (22 ) (428 ) 189 1,654 125 2,953 (42,148 ) (23,297 ) (116,387 ) (53,750 ) 281 10,857 987 11,252 ($41,867 ) ($12,440 ) ($115,400 ) ($42,498 ) ($0.14 ) ($0.05 ) ($0.38 ) ($0.17 ) 307,205 247,062 306,786 245,049 the beachbody company, inc. unaudited condensed consolidated statements of cash flows (in thousands) six months ended june 30, 2022 2021 ($115,400 ) ($42,498 ) 41,552 25,941 13,180 6,119 32,019 2,791 143 339 — (3,114 ) (2,334 ) (5,390 ) 7,565 5,095 (1,143 ) (11,349 ) 311 — 28,400 (194 ) (11,940 ) (14,237 ) 5,545 (1,789 ) 167 (5,774 ) (22,753 ) 6,656 (7,739 ) (461 ) 1,000 16,547 (1,829 ) (4,169 ) (33,256 ) (25,487 ) (19,222 ) (27,200 ) — (5,000 ) — (5,000 ) — (37,280 ) (19,222 ) (74,480 ) 2,968 — (308 ) — — 42,000 — (42,000 ) — 389,775 2,660 389,775 (176 ) 594 (49,994 ) 290,402 107,054 56,827 $57,060 $347,229 $17 $283 310 198 $2,330 $15,322 — 162,558 — 22,618 — — — 650 — 293 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, net realizable value adjustment, transaction costs, restructuring expense, 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 loss can be found below: three months ended june 30, six months ended june 30, 2022 2021 2022 2021 ($41,867 ) ($12,440 ) ($115,400 ) ($42,498 ) 19,965 12,215 41,552 25,941 168 168 336 336 7,016 3,302 13,180 6,119 3 305 22 428 (281 ) (10,857 ) (987 ) (11,252 ) 3,001 2,522 7,565 5,095 10,502 — 25,436 — — 1,509 2 2,142 2,086 — 9,973 — (2,070 ) (5,390 ) (2,334 ) (5,390 ) — 6,038 — 6,038 5 (1,757 ) 76 (3,088 ) ($1,472 ) ($4,385 ) ($20,579 ) ($16,129 ) (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 with the consolidation of our digital platforms. (3) incremental costs associated with covid-19. (4) includes interest income, and during the three and six months ended june 30, 2021, also includes the gain on investment on the myx convertible instrument.
