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By James Blacker, Benzinga
Subscription health and fitness firm The Beachbody Company, Inc (NYSE: BODI) saw a significant turnaround in its financial results for the first quarter ending March 31, reporting higher revenue and adjusted EBITDA compared to the previous quarter as well as the first positive free cash flow quarter since 2020.
Positive Financial Metrics
The company, which now goes by BODi, reported a total revenue of $120 million for the first quarter, exceeding the midpoint of guidance. While revenue was down around 17% from $144.9 million in the same period of 2023, the figure grew from $119 million in the previous quarter – representing the first quarter-on-quarter revenue growth since 2021.
BODi’s increase in revenue compared to the previous quarter was driven by a more than 7% increase in revenue from its Nutrition & Other segment, while the Digital and Connected Fitness segments saw slight dips in revenue over the same period.
A key highlight for the quarter was the company’s first positive free cash flow since 2020, which was $7.4 million, compared to negative $11.3 million in the first quarter of 2023. BODi said it generated $9.1 million from operating activities in Q1 2024, in stark contrast to a cash outflow of $7.9 million from operating activities in the same period of 2023. The company also saw an inflow of $3.9 million from investing activities, compared to an outflow of $3.4 million last year.
"Our net cash position increased from $3.9 million at December 31, 2023 to $14.4 million at March 31, 2024, representing approximately a $10 million improvement in our liquidity in one quarter,” noted Marc Suidan, BODi’s Chief Financial Officer.
Other key financial metrics also showed positive improvements, with a substantial rise in adjusted EBITDA at $4.6 million, compared to a negative $0.9 million in the first quarter of last year. Moreover, the company narrowed its net loss to $14.2 million in the first quarter from $29.2 million in the year-ago period.
BODi’s financial improvement in Q1 2024 was bolstered by a reduction in total operating expenses, which fell to $92.1 million in the first quarter from $118.8 million a year earlier. This helped slash the operating loss by $16.6 million (over 60%!), from $27.4 million to $10.8 million.
Outlook For Q2
Looking ahead to the second quarter of 2024 ending June 30, BODi expects to see revenue fall within the range of $103 million to $113 million, with a net loss of between $14 million and $20 million. Adjusted EBITDA in Q2 is projected to be between negative $3 million and positive $3 million.
While BODi appears to remain cautious in its Q2 outlook, the positive Q1 results mark a potential turning point for the company. The revenue growth, positive free cash flow and improved adjusted EBITDA signify robust progress in its turnaround plan.
Things could be looking up for BODi, provided it can capitalize on the booming online/virtual fitness market, which is projected to grow at a CAGR of 32.7% through 2032, becoming a $250.7 billion market.
Key Financial Metrics For The Quarter Ended 31 March
| The Beachbody Company (NYSE: BODI) | Peloton Interactive (NASDAQ: PTON)
| GAIA Inc. (NASDAQ: GAIA) | WW International (NASDAQ: WW)? |
Revenue | $ 120 million | $ 717.7 million | $ 21.7 million | $ 206.5 million |
Market cap (as of 22 May) | $ 58.135 million | $ 1.235 billion | $ 94.253 million | $ 136.232 million |
Subscriptions | 1.37 million | 6.6 million | 839,000 | 4 million |
Gross Profit | $ 81.28 million | $ 309.7 million | $ 18.5 million | $ 137.8 million |
Adjusted EBITDA | $ 4.6 million | $ 5.8 million |
| $ 8.8 million |
Additionally, a comparison of the Market Cap to Last Twelve Months (LTM) Revenue ratio can be found below:
The Beachbody Company (NYSE: BODI) | Peloton Interactive (NASDAQ: PTON)
| GAIA Inc. (NASDAQ: GAIA) | WW International (NASDAQ: WW)? | |
Market Capitalization | $ 58.135 million | $ 1,235 million | $ 94.253 million | $ 136.232 million |
Revenue (LTM) | $ 502 million | $ 2,699 million | $ 82 million | $ 854 million |
Revenue / Market Cap Ratio | 0.12 | 0.46 | 1.15 | 0.16 |
Featured photo by StockSnap on Pixabay.
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