The beachbody company, inc. announces fourth quarter and full year 2021 financial results and strategic realignment initiatives
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 fourth quarter and full year ended december 31, 2021. “our performance in the fourth quarter reflects disciplined execution against the plan we laid out in november to prioritize the highest return marketing opportunities, which in conjunction with a strong portfolio of new product offerings, enabled us to exceed our previous guidance,” said carl daikeler, beachbody’s co-founder, chairman, and chief executive officer. “our content-driven model, powerful flywheel of fitness combined with nutrition and unique coach network, provides an incredibly strong foundation unlike any other in the industry. we are capitalizing on the strengths we’ve built to adjust our business back to the profitable playbook that has served us well for more than two decades: narrowing our focus to the strongest elements of our business, investing in the highest return, lowest risk opportunities, and maintaining an unwavering commitment to disciplined cost management and capital efficiency. we believe these efforts best position us to deliver positive earnings and cash flow in 2023.” fourth quarter 2021 results total revenue was $216.3 million, a 4% decrease compared to 2020 and a 31% increase compared to 2019 digital revenue was $81.9 million, a 14% decrease compared to 2020 and a 41% increase compared to 2019 digital subscriptions were 2.54 million, a 3% decrease compared to 2020 and a 50% increase compared to 2019 96.5% month-over-month average digital retention, a 90-basis point increase compared to 2020 and a 90-basis point increase compared to 2019 30.8 million total streams, a 27% decrease compared to 2020, and a 21% increase compared to 2019 28.9% dau/mau, a 240-basis point decrease compared to 2020, and a 10-basis point decrease compared to 2019 digital subscriptions were 2.54 million, a 3% decrease compared to 2020 and a 50% increase compared to 2019 96.5% month-over-month average digital retention, a 90-basis point increase compared to 2020 and a 90-basis point increase compared to 2019 30.8 million total streams, a 27% decrease compared to 2020, and a 21% increase compared to 2019 28.9% dau/mau, a 240-basis point decrease compared to 2020, and a 10-basis point decrease compared to 2019 connected fitness revenue was $36.8 million, compared to none in 2020, which preceded the myx fitness acquisition approximately 23,900 bikes sold in the fourth quarter, with a bikes-delivered to sales ratio of 124% on a pre-merger basis, connected fitness revenue was $17.6 million in q4 2020, with approximately 12,300 bikes sold and a bikes-delivered to sales ratio of 114% in the quarter approximately 23,900 bikes sold in the fourth quarter, with a bikes-delivered to sales ratio of 124% on a pre-merger basis, connected fitness revenue was $17.6 million in q4 2020, with approximately 12,300 bikes sold and a bikes-delivered to sales ratio of 114% in the quarter nutrition and other revenue was $97.6 million, a 25% decrease compared to 2020 and a 9% decrease compared to 2019 nutritional subscriptions were 0.30 million, compared to 0.39 million in 2020 and 0.31 million in 2019 nutritional subscriptions were 0.30 million, compared to 0.39 million in 2020 and 0.31 million in 2019 net loss was $146.0 million, compared to a net loss of $16.9 million in 2020 and net income of $1.8 million in 2019 adjusted ebitda was ($26.6) million, compared to $16.5 million in 2020 and $19.2 million in 2019 we recorded goodwill and intangibles impairment charges of $94.9 million in the fourth quarter. these impairment charges are non-cash and excluded from net loss in our adjusted ebitda calculation full year 2021 results total revenue was $873.6 million, a 1% increase compared to 2020 and a 16% increase compared to 2019 digital revenue was $365.4 million, a 9% increase compared to 2020 and a 46% increase compared to 2019 connected fitness revenue was $42.7 million, following the myx fitness acquisition in june 2021 nutrition and other revenue was $465.5 million, a 12% decrease compared to 2020 and an 8% decrease compared to 2019 net loss was $228.4 million, compared to a net loss of $21.4 million in 2020 and net income of $32.3 million in 2019 adjusted ebitda was ($86.1) million, compared to $51.5 million in 2020 and $78.4 million in 2019 2021 2020 change v 2020 2019 change v 2019 2021 2020 change v 2020 2019 change v 2019 23.9 0.0 nm 0.0 nm 39.1 0.0 nm 0.0 nm 29.7 0.0 nm 0.0 nm 36.2 0.0 nm 0.0 nm 124% 93% 2.54 2.63 (3%) 1.69 50% 2.54 2.63 (3%) 1.69 50% 0.30 0.39 (23%) 0.31 (3%) 0.30 0.39 (23%) 0.31 (3%) 2.84 3.02 (6%) 2.00 42% 2.84 3.02 (6%) 2.00 42% 96.5% 95.6% 90bps 95.6% 90bps 95.7% 95.5% 20bps 95.3% 40bps 30.8 42.4 (27%) 25.4 21% 167.1 179.6 (7%) 103.8 61% 28.9% 31.3% (240bps) 29.0% (10bps) 31.4% 31.6% (20bps) 29.2% 220bps $36.8 $0.0 nm $0.0 nm $42.7 $0.0 nm $0.0 nm $81.9 $94.8 (14%) $57.9 41% $365.4 $334.8 9% $250.8 46% $97.6 $129.4 (25%) $107.2 (9%) $465.5 $528.8 (12%) $505.0 (8%) $216.3 $224.3 (4%) $165.1 31% $873.6 $863.6 1% $755.8 16% ($146.0) ($16.9) (764%) $1.8 (8,211%) ($228.4) ($21.4) (967%) $32.3 (807%) ($26.6) $16.5 (261%) $19.2 (239%) ($86.1) $51.5 (267%) $78.4 (210%) strategy to accelerate path to profitability and enhance competitive position the company also announced today that it is moving swiftly to streamline its business model, accelerate its path to profitability and ensure it is positioned to deliver profits and cash flow in a variety of demand environments, and return to positive earnings and cash flow in 2023 through the following initiatives: 2022 financial outlook 1 as a result of the actions outlined above, during fiscal 2022, the company expects to reduce its cash use from operating activities by approximately $110 million as compared to 2021 and meaningfully reduce its full year net loss and adjusted ebitda loss. for the first quarter of 2022 the company expects: total revenue of $170 million to $180 million adjusted ebitda loss of $20 million to $25 million 1 net loss guidance is not reasonably available due to 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 tuesday, march 1, 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: 653651. 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 march 8, 2022 by dialing (866) 813-9403 (u.s & canada), or (929) 458-6194 (all other locations). the replay passcode is 665771. 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 worldwide 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), the live digital streaming platforms beachbody on demand interactive (bodi) and openfit, and the beachbody bike by myx, the company’s connected indoor bike. for more information, please visit thebeachbodycompany.com. safe harbor statement this press release 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 1, 2022, 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. as of december 31, 2021 2020 $104,054 $56,827 3,000 — 132,730 65,354 15,861 8,650 43,727 38,219 299,372 169,050 113,098 80,169 39,347 19,437 171,533 40,101 6,613 33,272 7,649 14,224 $637,612 $356,253 $48,379 $28,981 74,525 79,955 107,095 97,504 2,307 10,371 3,926 3,106 236,232 219,917 4,823 31,252 3,165 3,729 8,007 2,097 252,227 256,995 — — — — 17 10 14 14 — — 610,418 96,097 (21 ) (202 ) (225,043 ) 3,339 385,385 99,258 $637,612 $356,253 three months ended december 31, years ended december 31, 2021 2020 2021 2020 $81,865 $94,840 $365,412 $334,804 36,801 — 42,738 — 97,600 129,443 465,495 528,778 216,266 224,283 873,645 863,582 13,454 10,778 48,312 38,285 56,626 — 67,043 — 48,628 59,768 213,307 211,422 118,708 70,546 328,662 249,707 97,558 153,737 544,983 613,875 109,458 111,128 548,130 464,000 36,197 25,478 119,915 93,036 21,159 18,589 79,682 64,818 (320 ) — (320 ) (1,677 ) 94,894 — 94,894 — 261,388 155,195 842,301 620,177 (163,830 ) (1,458 ) (297,318 ) (6,302 ) 15,065 — 50,729 — (46 ) (95 ) (536 ) (527 ) 49 111 3,204 666 (148,762 ) (1,442 ) (243,921 ) (6,163 ) 2,800 (15,430 ) 15,539 (15,269 ) ($145,962 ) ($16,872 ) ($228,382 ) ($21,432 ) ($0.48 ) ($0.07 ) ($0.83 ) ($0.09 ) ($0.48 ) ($0.07 ) ($0.83 ) ($0.09 ) 305,750 243,013 275,359 239,540 305,750 243,013 275,359 239,540 years ended december 31, 2021 2020 ($228,382 ) ($21,432 ) 94,894 — 59,597 44,257 14,838 7,485 17,488 2,759 550 92 (3,114 ) (288 ) (50,729 ) — (6,500 ) — 16,413 5,398 (15,862 ) 15,595 — 93 (74,257 ) (27,754 ) (31,349 ) (15,555 ) (6,761 ) 5,732 (2,023 ) (1,772 ) 8,307 10,619 (11,273 ) 21,804 7,435 24,770 (4,521 ) (10,373 ) (215,249 ) 61,430 (77,911 ) (37,933 ) (5,000 ) (10,000 ) (5,000 ) — (37,280 ) 1,247 (125,191 ) (46,686 ) 4,680 — (3,154 ) — 42,000 32,000 (42,000 ) (32,000 ) 389,125 — — (240 ) — 405 390,651 165 16 354 50,227 15,263 56,827 41,564 $107,054 $56,827 $466 $206 $385 $333 $9,657 $5,614 $162,558 $27,889 — ($135 ) — $1,593 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, transaction costs, restructuring gain, 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 december 31, years ended december 31, 2021 2020 2021 2020 ($145,962 ) ($16,872 ) ($228,382 ) ($21,432 ) 94,894 - 94,894 - 19,040 12,376 59,597 44,257 168 186 672 186 4,830 2,382 14,838 7,485 46 95 536 527 (2,800 ) 15,430 (15,539 ) 15,269 5,574 2,229 16,413 5,398 10,082 - 10,082 - 209 855 3,028 1,467 (320 ) — (320 ) (1,677 ) (15,065 ) — (50,729 ) — 2,619 - 11,701 — 118 (151 ) (2,899 ) (20 ) ($26,567 ) $16,530 ($86,108 ) $51,460 (1) other adjustment items include incremental costs associated with covid-19. (2) non-operating primarily includes interest income and gain on investment on the myx convertible instrument.
