Inside The Call: Beachbody’s Q3 Misses Plan On Weakening At-Home Fitness Demand

BichBod, which was recently unveiled to the public at IPO, said sales fell 17 percent in the third quarter.

Beachbody is a member of BichBob on Demand (BOD) Fitness Streaming Service, a live digital streaming platform Openfit and MYXfitness, the parent company of bicycle bicycles.

In a call to analysts, Carl Dickel, founder, CEO and CEO of BichBod, said: During the quarter we have seen people spend more than a year and a half on travel, social and outdoor activities for personal and social distractions.

He said the most challenging media environment, the rising cost of media and the new privacy situation associated with Apple IOS 14.5, was the soft demand for external challenges. Media challenges have made performance marketing more expensive and efficient, resulting in lower ROI than historical standards.

Also, high line growth was measured by a short delay in production from September to October, including BOD Interactive (BODI), a new premium level live team fitness registration. More time is needed to produce the product.

“BOD Interactive technology is an important step that our customers have requested when it comes to delivering engaging, affordable and persuasive content that is unique in the marketplace,” said Dickel. “However, this delay has limited our coaches’ network to the ability to purchase new subscribers and sell related dietary supplements.”

Since the BOD Interactive Registration also includes interactive cycling content, the start of October had a domino effect on cycling sales. As a result, the bicycle supply was not widely advertised in coaching networks and social media until the end of October. Dickler added, “Now that we are going to the holidays and the first quarter of people are focusing on health and wellness, we will be implementing our business plan.

Dickler said that although the digital subscriber base is strong and highly maintained, the new subscriber speed was lower than expected due to external challenges.

In the last quarter of September 30, total revenues showed $ 208.1 million, a 17 percent decrease compared to 2020 and a 6 percent increase compared to 2019.

Digital revenue was $ 94.1 million, down 5 percent compared to 2020 and up 38 percent compared to 2019.

BichBod has maintained an average of 95.6 percent per month, a 50-point increase compared to 2020 and a 40-point increase compared to 2019. In terms of engagement, the daily active users were 29.6 percent of the monthly active users. It dropped by 250 points compared to last year, but increased by 20 points compared to 2019. Digital streaming decreased by 26 percent compared to the previous year, but increased by 35 percent compared to the third quarter of 2019. Engagement is high over the next two years, and this is a long-term positive indicator.

Connected fitness income was $ 5.9 million, compared to 2020, before the acquisition of Myx Fitness. In the third quarter, about 14,700 bicycles were sold. However, only 44 percent of bicycles are offered to customers, which determines when the revenue will be known. According to Proforma, the combined revenue for Q3 2020 was $ 8.9 million, about 8,600 bicycles were sold and 118 percent of bicycles were sold in the quarter.

Nutrition and other revenues are $ 108.1 million, down 29 percent compared to 2020 and 16 percent down 2019. Diet subscriptions were 0.34 million, by 0.44 million by 2020 and by 0.34 million by 2019.

BichBodi’s net loss was $ 39.9 million, up from $ 13.8 million in 2020 and $ 3.4 million in 2019. Fixed EBITDA was $ 43.4 million, $ 31.4 million in 2020 and $ 19.5 million in 2019.

Looking ahead, Beechwood has reduced its sales forecast for $ 2021 by $ 820.0 million and $ 830.0 million, down from $ 930.0 million and $ 960.0 million. Adjusted EBTA is estimated to be between $ 110.0 million loss and $ 100.0 million loss, in line with previous expectations.
Beach Bodi said it has taken a number of steps to stimulate growth, streamline media investments, increase the acquisition and lifetime value of the BODi platform, and continue to expand its connected fitness business on BichBodi’s interests and openfit platforms. Santa Monica’s office is moving to a lease allocation as part of a new cost-effective measure. Many new employees have also been hired.

“My confidence in the future is stronger than ever,” says Dichael. “We have built our business by attracting a large number of customers, focusing on helping keep the broad market healthy and healthy. As we continue to increase our supply, we intend to increase our market share by providing proven and accessible fitness and nutrition solutions that will put everything in the market place ahead of any price point.

BichBod’s three million digital fitness and nutrition subscriptions support more than 75 percent of the recurring revenue base, with more than 95 percent monthly digital retention rates. He added, “All of this is driven by our participatory content, combined with a high-quality diet that produces human results. It is the content that allows us to relate not only to our flywheel but also to our way of life. We create ourselves with our content.

Dickler concludes, “While external factors remain uncontrollable, we focus on aggression by keeping our eyes on the ball. While we are expecting continued pressure in the fourth quarter, by 2022, I look forward to seeing these actions begin to move the needle up and down the lines.

Photo courtesy of The Beachbody Company