The Beachbody Co Inc (BODI) Q1 2025 Earnings Call Highlights: Surpassing Expectations Amid ...

GuruFocus News

Thu, May 15, 2025, 4:02 PM 4 min read

• Revenue: $72.4 million, exceeding guidance of $60 cardinal to $70 million.

• Adjusted EBITDA: $3.7 million, surpassing guidance of a $2 cardinal nonaccomplishment to $2 million.

• Gross Margin: 71.2%, up 70 ground points from the erstwhile 4th and 350 ground points year-over-year.

• Digital Revenue: $42.9 million, a alteration of 14.8% from the anterior 4th and 30.2% year-over-year.

• Nutrition Revenue: $28.7 million, down 17.7% from the anterior 4th and 48.4% year-over-year.

• Net Loss: $5.7 million, an betterment of $8.5 cardinal compared to the aforesaid 4th past year.

• Cash Balance: $18.1 million, compared to $20.2 cardinal successful the anterior quarter.

• Digital Subscriber Count: 1.02 million, a diminution of 5.1% sequentially and 16.6% year-over-year.

• Nutrition Subscriptions: 80,000, a alteration of 13.1% sequentially and 47.7% year-over-year.

• Operating Expenses: $55.2 million, a diminution of 41.1% sequentially and 40.0% year-over-year.

• Warning! GuruFocus has detected 4 Warning Signs with BODI.

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• The Beachbody Co Inc (NYSE:BODI) achieved its sixth consecutive 4th of affirmative adjusted EBITDA, with $3.7 cardinal successful Q1 2025.

• The institution successfully reduced its currency breakeven level from implicit $900 cardinal successful 2022 to conscionable nether $225 cardinal successful 2025.

• A caller $25 cardinal indebtedness installation with Tiger Finance was secured, allowing for the aboriginal status of erstwhile indebtedness and providing further capital.

• The modulation from an MLM exemplary to a multi-channel approach, including direct-to-consumer and retail distribution, is expected to heighten maturation opportunities.

• The institution is launching caller retail initiatives with well-known brands similar Shakeology, P90X, and Insanity, aiming to grow its marketplace reach.

• Total revenues declined 39.7% twelvemonth implicit year, impacted by the modulation from the MLM model.

• Digital subscriber number decreased by 16.6% twelvemonth implicit year, affecting integer revenue.

• Nutrition gross fell 48.4% twelvemonth implicit year, with a important diminution successful nutrition subscriptions.

• The affiliate level has not yet met expectations, requiring further simplification to summation participation.

• The institution is phasing retired its connected fittingness equipment, specified arsenic bikes, which whitethorn bounds aboriginal gross streams from hardware sales.

Q: Can you supply immoderate colour connected the retention oregon modulation of sellers from the aged MLM exemplary to the caller nonstop affiliate model? Is it performing successful enactment with archetypal expectations? A: Carl Daikeler, CEO: We are pleased with immoderate beardown affiliates, but overall, the level is much organization than we hoped. We program to modulation to a much user-friendly exemplary successful mid-June, which volition let much subscribers to go affiliates. While the existent programme is productive, we expect maturation successful the coming quarters with the caller platform.