The beachbody company, inc. announces first 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 first quarter ended march 31, 2022. “we were pleased to deliver top-and-bottom line results in the first quarter that were ahead of our guidance. this momentum, coupled with a positive response to new launches, demonstrates our ability to quickly create demand through compelling content as well as the power of our synergistic approach that combines digital fitness, nutrition and community within a single ecosystem,” said carl daikeler, beachbody’s co-founder, chairman, and chief executive officer. “our performance in a dynamic environment also reflects the resilience and agility of our content-driven business. with a steady cadence of exciting content launches throughout 2022, and a focus on disciplined marketing and efficient customer acquisition, we expect to not only drive revenue, but also further enhance our operating metrics. we remain on track to deliver significant cost savings this year as we implement our one brand strategy and other organizational efficiencies.” first quarter 2022 results total revenue was $198.9 million, a 12% decrease compared to 2021 and a 6% decrease compared to 2019 digital revenue was $81.7 million, a 14% decrease compared to 2021 digital subscriptions were 2.46 million, a 10% decrease compared to 2021 and a 48% increase compared to 2019 95.6% month-over-month average digital retention, a 20-basis point decrease compared to 2021 and a 60-basis point increase compared to 2019 38.2 million total streams, a 32% decrease compared to 2021, and a 44% increase compared to 2019 31.6% dau/mau, a 350-basis point decrease compared to 2021, and a 200-basis point increase compared to 2019 digital subscriptions were 2.46 million, a 10% decrease compared to 2021 and a 48% increase compared to 2019 95.6% month-over-month average digital retention, a 20-basis point decrease compared to 2021 and a 60-basis point increase compared to 2019 38.2 million total streams, a 32% decrease compared to 2021, and a 44% increase compared to 2019 31.6% dau/mau, a 350-basis point decrease compared to 2021, and a 200-basis point increase compared to 2019 connected fitness revenue was $19.5 million, compared to none in 2021, which preceded the myx fitness acquisition approximately 16,600 bikes delivered in the first quarter on a pre-merger basis, connected fitness revenue was $14.7 million in q1 2021, with approximately 11,900 bikes delivered approximately 16,600 bikes delivered in the first quarter on a pre-merger basis, connected fitness revenue was $14.7 million in q1 2021, with approximately 11,900 bikes delivered nutrition and other revenue was $97.7 million, a 25% decrease compared to 2021 nutritional subscriptions were 0.30 million, compared to 0.42 million in 2021 and 0.38 million in 2019 nutritional subscriptions were 0.30 million, compared to 0.42 million in 2021 and 0.38 million in 2019 net loss was $73.5 million, compared to a net loss of $30.1 million in 2021 and net income of $7.5 million in 2019 adjusted ebitda1 was ($19.1) million, compared to ($11.7) million in 2021 and $22.0 million in 2019 _______________ 1 a definition of adjusted ebitda and reconciliation to net loss is at the end of this release. key operational and business metrics for the three months ended march 31, 2022 2021 change v 2021 2019 change v 2019 pre-covid baseline 16.6 0.0 nm 0.0 nm 2.46 2.74 (10%) 1.66 48% 0.30 0.42 (29%) 0.38 (21%) 2.76 3.16 (13%) 2.04 35% 95.6% 95.8% (20bps) 95.0% 60bps 38.2 56.0 (32%) 26.5 44% 31.6% 35.1% (350bps) 29.6% 200bps $81.7 $95.1 (14%) $66.0 24% $19.5 $0.0 nm $0.0 nm $97.7 $131.1 (25%) $145.0 (33%) $198.9 $226.2 (12%) $211.0 (6%) ($73.5) ($30.1) (144%) $7.5 (1,080%) ($19.1) ($11.7) (63%) $22.0 (187%) 2022 financial outlook2 during fiscal 2022, the company expects to realize a combined adjusted ebitda loss improvement and capex reduction of approximately $120 million, $10 million more than previous guidance, compared to 2021. for the second quarter of 2022 the company expects: total revenue of $175 million to $185 million adjusted ebitda loss of $7 million to $12 million 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 monday, may 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: 442851. 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 16, 2022 by dialing (866) 813-9403 (u.s & canada), or (929) 458-6194 (all other locations). the replay passcode is 667125. 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 first 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 par value and share data) march 31, december 31, 2022 2021 $63,426 $104,054 — 3,000 99,993 132,730 16,154 15,861 40,975 43,727 220,548 299,372 102,978 113,098 39,749 39,347 166,947 171,533 13,972 14,262 $544,194 $637,612 $25,626 $48,379 69,897 74,525 108,977 107,095 5,785 6,233 210,285 236,232 2,382 3,165 13,300 12,830 225,967 252,227 — — 17 17 14 14 — — 616,905 610,418 (133 ) (21 ) (298,576 ) (225,043 ) 318,227 385,385 $544,194 $637,612 the beachbody company, inc. unaudited condensed consolidated statements of operations (in thousands, except per share data) three months ended march 31, 2022 2021 $81,745 $95,150 19,513 — 97,664 131,069 198,922 226,219 16,425 11,122 44,706 — 44,774 56,995 105,905 68,117 93,017 158,102 106,444 144,696 33,697 27,089 20,073 17,946 7,223 — 167,437 189,731 (74,420 ) (31,629 ) 264 — (19 ) (123 ) (64 ) 1,299 (74,239 ) (30,453 ) 706 395 ($73,533 ) ($30,058 ) ($0.24 ) ($0.12 ) 306,363 243,013 the beachbody company, inc. unaudited condensed consolidated statements of cash flows (in thousands) three months ended march 31, 2022 2021 ($73,533 ) ($30,058 ) 21,587 13,726 6,164 2,817 16,896 2,040 69 167 — (1,379 ) (264 ) — 4,564 2,573 (808 ) (528 ) 91 — 15,887 (2,321 ) (6,448 ) (7,425 ) (293 ) (2,139 ) 2,895 (8,476 ) (20,752 ) 7,137 (1,386 ) 6,136 2,370 9,224 (410 ) (374 ) (33,371 ) (8,880 ) (12,403 ) (13,299 ) — (5,000 ) (12,403 ) (18,299 ) 2,115 — (192 ) — — 20,000 — (2,242 ) 1,923 17,758 223 243 (43,628 ) (9,178 ) 107,054 56,827 $63,426 $47,649 $10 $58 32 16 $4,225 $6,196 — $3,812 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 march 31, 2022 2021 ($73,533 ) ($30,058 ) 21,587 13,726 168 168 6,164 2,817 19 123 (706 ) (395 ) 4,564 2,573 14,934 — 2 633 7,887 — (264 ) — 70 (1,331 ) ($19,108 ) ($11,744 ) (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) includes interest income, and during the three months ended march 31, 2021, also includes the gain on investment on the myx convertible instrument.
