Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries The Beachbody Company, Inc. Announces Q4 and FY 2023 Financial Results; Expects Positive Cash Flow from Operating Activities and Free Cash Flow in Q1 2024 By: The Beachbody Company, Inc. via Business Wire March 11, 2024 at 16:05 PM EDT The Beachbody Company, Inc. (NYSE: BODi) (“BODi” or the “Company”), a leading subscription health and wellness company, today announced financial results for its fourth quarter ended December 31, 2023. "2023 was a transformational year at BODi. Our turnaround plan successfully simplified our digital platform, lowering our breakeven point and enhancing our liquidity position,” said Carl Daikeler, BODi’s Co-Founder and Chief Executive Officer. "In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business. Our accomplishments in 2023 set the foundation for continued execution of our turnaround in 2024. We expect to have positive cash flow from operating activities and free cash flow in the first quarter.” Fourth Quarter 2023 Results Total revenue was $119.0 million compared to $148.2 million in the prior year period and exceeded the high end of the guidance range. Digital revenue was $64.0 million compared to $68.7 million in the prior year period and digital subscriptions totaled 1.31 million in the fourth quarter. Nutrition and Other revenue was $51.8 million compared to $74.7 million in the prior year period and nutritional subscriptions totaled 0.16 million in the fourth quarter. Connected Fitness revenue was $3.2 million compared to $4.7 million in the prior year period and approximately 4,100 bikes were delivered in the fourth quarter. Total operating expenses were $134.3 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $132.8 million in the prior year period, which included an $18.9 million impairment of intangible assets. Operating loss increased by $12.2 million to $60.4 million compared to an operating loss of $48.1 million in the prior year period. Net loss was $65.0 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $44.9 million in the prior year period, which included an $18.9 million impairment of intangible assets. Adjusted EBITDA1 was $2.8 million compared to $3.5 million in the prior year period. Full Year 2023 Results Total revenue was $527.1 million compared to $692.2 million in the prior year. Digital revenue was $258.4 million compared to $300.7 million in the prior year. Nutrition and Other revenue was $249.5 million compared to $353.3 million in the prior year. Connected Fitness revenue was $19.2 million compared to $38.2 million in the prior year and approximately 20,850 bikes were delivered in 2023. Total operating expenses were $464.1 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $572.7 million in the prior year, which included a $19.9 million impairment of intangible assets. Operating loss decreased by $62.2 million to $141.0 million compared to an operating loss of $203.2 million in the prior year. Net loss was $152.6 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $194.2 million in the prior year, which included a $19.9 million impairment of intangible assets. Adjusted EBITDA1 was $(8.7) million compared to $(23.3) million in the prior year. Cash used in operating activities for the year ended December 31, 2023 was $22.5 million compared to $47.2 million in the prior year, and cash used in investing activities was $10.8 million compared to $26.5 million in the prior year. Total cash used in operating activities minus the purchase of property and equipment, which we call free cash flow, was $29.1 million compared to $73.7 million in the prior year. Marc Suidan, Chief Financial Officer, stated: "With our new cost structure in place, we should have positive free cash flow in the first quarter of 2024. We have significantly reduced our breakeven point and are projecting to achieve approximately $200 million in fixed costs and capital expenditure savings in 2024 over 2021. The annualized cost savings increased from approximately $165 million in 2023 to an estimate of approximately $200 million in 2024, as compared to our 2021 cost structure." Key Operational and Business Metrics As of or for the Three Months Ended December 31, As of or for the Year Ended December 31, 2023 2022 Change v 2022 2023 2022 Change v 2022 Digital Subscriptions (in millions) 1.31 1.95 (33.0 %) 1.31 1.95 (33.0 %) Nutritional Subscriptions (in millions) 0.16 0.22 (25.0 %) 0.16 0.22 (25.0 %) Total Subscriptions (in millions) 1.47 2.17 (32.2 %) 1.47 2.17 (32.2 %) Average Digital Retention 96.9 % 96.8 % 10bps 96.0 % 95.9 % 10bps Total Streams (in millions) 20.4 23.8 (14.6 %) 98.2 120.5 (18.4 %) DAU/MAU 30.3 % 29.0 % 130bps 31.3 % 30.1 % 120 bps Connected Fitness Units Delivered (in thousands) 4.1 3.7 10.7 % 20.9 31.5 (33.6 %) Digital $ 64.0 $ 68.7 (6.8 %) $ 258.4 $ 300.7 (14.1 %) Nutrition & Other $ 51.8 $ 74.7 (30.7 %) $ 249.5 $ 353.3 (29.4 %) Connected Fitness $ 3.2 $ 4.8 (33.0 %) $ 19.2 $ 38.2 (49.7 %) Revenue (in millions) $ 119.0 $ 148.2 (19.7 %) $ 527.1 $ 692.2 (23.9 %) Net Loss (in millions) $ (65.0 ) $ (44.9 ) (44.6 %) $ (152.6 ) $ (194.2 ) 21.4 % Adjusted EBITDA (in millions) 1 $ 2.8 $ 3.5 (20.0 %) $ (8.7 ) $ (23.3 ) 62.7 % Outlook for The First Quarter of 2024 Outlook For Quarter Ending March 31, 2024 (in millions) Revenue $ 113 $ 121 Net Loss $ (15 ) $ (10 ) Adjustments: Depreciation and Amortization $ 5 $ 5 Amortization of Content Assets $ 5 $ 5 Interest Expense $ 2 $ 2 Equity-Based Compensation $ 5 $ 5 Other Adjustment Items $ (2 ) $ (2 ) Total Adjustments $ 15 $ 15 Adjusted EBITDA 1 — $ 5 1 A definition of Adjusted EBITDA and reconciliation to net loss is at the end of this release. Conference Call and Webcast Information BODi will host a conference call at 5:00pm ET on Monday, March 11, 2024, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 470-1428 (U.S. & Canada), or +1 (929) 526-1599 (all other locations) and provide the conference identification number: 485492. 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 18, 2024, by dialing (866) 813-9403 (U.S. & Canada), or + 44 (204) 525-0658 (all other locations). The replay passcode is 109802. After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year. About BODi and The Beachbody Company, Inc. Originally known as Beachbody, BODi has been innovating structured step-by-step home fitness and nutrition programs for 25 years such as P90X, Insanity, and 21-Day Fix, plus the first premium superfood nutrition supplement, Shakeology. Headquartered in El Segundo, California, BODi helps people feel great while they pursue extraordinary life-changing results. The BODi community represents millions of people helping each other stay accountable to goals of healthy weight loss, improved strength and energy, and resilient mental and physical well-being. Ticker Symbol Changed to BODi On March 4, 2024, the Company transitioned its stock ticker from "BODY" to "BODi" on the NYSE, in line with its rebrand from Beachbody to BODi. There were no changes made to the CUSIP or the stock's listing status on the NYSE. Safe Harbor Statement This press release of The Beachbody Company, Inc. (“we,” “us,” “our,” and similar terms) 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 second 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 11, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, 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. The Beachbody Company, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) As of December 31, 2023 2022 Assets Current assets: Cash and cash equivalents (restricted cash of $0.1 million and $0.0 million at December 31, 2023 and 2022, respectively) $ 33,409 $ 80,091 Restricted short-term investments 4,250 — Inventory 24,976 54,060 Prepaid expenses 10,715 13,055 Other current assets 45,923 39,248 Total current assets 119,273 186,454 Property and equipment, net 45,055 74,147 Content assets, net 21,359 34,888 Goodwill and intangible assets, net 85,166 133,370 Right-of-use assets, net 3,063 5,030 Other assets 2,923 9,506 Total assets $ 276,839 $ 443,395 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 10,659 $ 17,940 Accrued expenses 42,147 64,430 Deferred revenue 97,169 95,587 Current portion of lease liabilities 1,835 2,150 Current portion of Term Loan 8,068 1,250 Other current liabilities 5,325 3,283 Total current liabilities 165,203 184,640 Term Loan 21,491 39,735 Long-term lease liabilities, net 1,425 3,318 Deferred tax liabilities, net 10 181 Other liabilities 5,950 3,979 Total liabilities 194,079 231,853 Stockholders’ equity: Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding as of December 31, 2023 and 2022 — — Common stock, $0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000 Class X and 100,000,000 Class C); Class A: 3,978,356 and 3,418,237 shares issued and outstanding at December 31, 2023 and 2022, respectively; 1 1 Class X: 2,729,003 and 2,825,006 shares issued and outstanding at December 31, 2023 and 2022, respectively; 1 1 Class C: no shares issued and outstanding at December 31, 2023 and 2022 — — Additional paid-in capital 654,657 630,738 Accumulated deficit (571,876 ) (419,235 ) Accumulated other comprehensive income (loss) (23 ) 37 Total stockholders’ equity 82,760 211,542 Total liabilities and stockholders’ equity $ 276,839 $ 443,395 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three months ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenue: Digital $ 64,044 $ 68,685 $ 258,370 $ 300,673 Nutrition and other 51,781 74,735 249,510 353,331 Connected fitness 3,185 4,746 19,229 38,195 Total revenue 119,010 148,166 527,109 692,199 Cost of revenue: Digital 17,210 15,510 64,942 66,419 Nutrition and other 24,230 37,491 109,170 164,753 Connected fitness 3,598 10,544 29,910 91,454 Total cost of revenue 45,038 63,545 204,022 322,626 Gross profit 73,972 84,621 323,087 369,573 Operating expenses: Selling and marketing 59,952 73,774 282,147 359,987 Enterprise technology and development 17,782 20,847 74,407 104,363 General and administrative 13,570 19,237 57,932 78,426 Restructuring (53 ) — 6,497 10,047 Impairment of goodwill 40,000 — 40,000 — Impairment of intangible assets 3,092 18,907 3,092 19,907 Total operating expenses 134,343 132,765 464,075 572,730 Operating loss (60,371 ) (48,144 ) (140,988 ) (203,157 ) Other income (expense) Loss on partial debt extinguishment — — (3,168 ) — Impairment of other investment (4,000 ) — (4,000 ) — Change in fair value of warrant liabilities 1,175 3,626 2,679 8,322 Interest expense (2,101 ) (2,194 ) (8,874 ) (3,368 ) Other income, net 196 262 1,747 958 Loss before income taxes (65,101 ) (46,450 ) (152,604 ) (197,245 ) Income tax benefit (provision) 62 1,517 (37 ) 3,053 Net loss $ (65,039 ) $ (44,933 ) $ (152,641 ) $ (194,192 ) Net loss per common share, basic and diluted $ (10.31 ) $ (7.28 ) $ (24.47 ) $ (31.58 ) Weighted-average common shares outstanding, basic and diluted 6,307 6,168 6,239 6,150 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2023 2022 Cash flows from operating activities: Net loss $ (152,641 ) $ (194,192 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment of goodwill 40,000 — Impairment of intangible assets 3,092 19,907 Impairment of other investments 4,000 — Depreciation and amortization expense 39,573 74,848 Amortization of content assets 23,755 24,276 Provision for inventory and inventory purchase commitments 10,561 39,757 Realized losses on hedging derivative financial instruments 222 108 Change in fair value of warrant liabilities (2,679 ) (8,322 ) Equity-based compensation 23,891 17,620 Deferred income taxes (191 ) (2,961 ) Amortization of debt issuance costs 1,899 733 Paid-in-kind interest expense 1,310 598 Loss on partial debt extinguishment 3,168 — Change in lease assets 1,967 — Other non-cash items — 1,219 Changes in operating assets and liabilities: Inventory 17,508 41,510 Content assets (10,226 ) (19,787 ) Prepaid expenses 2,340 2,806 Other assets (4,438 ) 4,241 Accounts payable (7,103 ) (26,705 ) Accrued expenses (20,293 ) (8,673 ) Deferred revenue 2,163 (9,563 ) Other liabilities (415 ) (4,593 ) Net cash used in operating activities (22,537 ) (47,173 ) Cash flows from investing activities: Purchase of property and equipment (6,576 ) (26,493 ) Investment in restricted short-term investments (4,250 ) — Net cash used in investing activities (10,826 ) (26,493 ) Cash flows from financing activities: Proceeds from exercise of stock options — 3,162 Remittance of taxes withheld from employee stock awards — (308 ) Debt borrowings — 50,000 Debt repayments (17,000 ) (625 ) Proceeds from issuance of common shares in the Employee Stock Purchase Plan 553 — Tax withholdings payments for vesting of restricted stock (2,178 ) (183 ) Payment of debt issuance costs — (4,485 ) Proceeds from issuance of Equity Offering, net of issuance costs 4,908 — Net cash (used in) provided by financing activities (13,717 ) 47,561 Effect of exchange rates on cash 398 (858 ) Net decrease in cash, cash equivalents and restricted cash (46,682 ) (26,963 ) Cash, cash equivalents and restricted cash, beginning of year 80,091 107,054 Cash, cash equivalents and restricted cash, end of year $ 33,409 $ 80,091 The Beachbody Company, Inc. Non GAAP Information We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. 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 tax provision (benefit), equity-based compensation, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business as described in the reconciliation below. We include this non-GAAP financial measure because it is used by management to evaluate BODi’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, impairment of goodwill and intangible assets and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense). The table below presents our Adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated: Three months ended December 31, Year ended December 31, (in thousands) 2023 2022 2023 2022 Net loss $ (65,039 ) $ (44,933 ) $ (152,641 ) $ (194,192 ) Adjusted for: Impairment of goodwill 40,000 — 40,000 — Impairment of intangible assets 3,092 18,907 3,092 19,907 Impairment of other investment 4,000 — 4,000 — Loss on partial debt extinguishment (1) — — 3,168 — Depreciation and amortization 8,178 15,990 39,573 74,848 Amortization of capitalized cloud computing implementation costs 57 30 179 492 Amortization of content assets 7,268 5,603 23,755 24,276 Interest expense 2,101 2,194 8,874 3,368 Income tax provision (benefit) (62 ) (1,517 ) 37 (3,053 ) Equity-based compensation 4,739 4,454 23,891 17,620 Employee incentives, expected to be settled in equity (2) — 5,466 (5,466 ) 5,466 Inventory net realizable value adjustment (3) — 1,295 — 24,864 Restructuring and platform consolidation costs (4) (53 ) — 7,169 11,718 Change in fair value of warrant liabilities (1,175 ) (3,626 ) (2,679 ) (8,322 ) Non-operating (5) (309 ) (320 ) (1,649 ) (257 ) Adjusted EBITDA $ 2,797 $ 3,543 $ (8,697 ) $ (23,265 ) 1 Represents the loss related to the $15.0 million partial debt prepayment that the Company made on July 24, 2023. 2 The non-cash charge for employee incentives which were expected to be settled in equity was recorded and included in the Adjusted EBITDA calculation during the year ended December 31, 2022. During the three months ended March 31, 2023, we reclassified the non-cash charge from employee incentives expected to be settled in equity to equity-based compensation because we settled certain employee incentives with restricted stock unit awards during the period. 3 Represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. This adjustment was included during the three months and year ended December 31, 2022, because of its unusual magnitude due to disruptions in the connected fitness market. 4 Includes restructuring expense and personnel costs associated with executing our key growth priorities during the year ended December 31, 2023, and with the consolidation of our digital platforms during the three months and year ended December 31, 2022. The costs primarily relates to termination benefits related to headcount reductions. 5 Primarily includes interest income. 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The Beachbody Company, Inc. Announces Q4 and FY 2023 Financial Results; Expects Positive Cash Flow from Operating Activities and Free Cash Flow in Q1 2024 By: The Beachbody Company, Inc. via Business Wire March 11, 2024 at 16:05 PM EDT The Beachbody Company, Inc. (NYSE: BODi) (“BODi” or the “Company”), a leading subscription health and wellness company, today announced financial results for its fourth quarter ended December 31, 2023. "2023 was a transformational year at BODi. Our turnaround plan successfully simplified our digital platform, lowering our breakeven point and enhancing our liquidity position,” said Carl Daikeler, BODi’s Co-Founder and Chief Executive Officer. "In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business. Our accomplishments in 2023 set the foundation for continued execution of our turnaround in 2024. We expect to have positive cash flow from operating activities and free cash flow in the first quarter.” Fourth Quarter 2023 Results Total revenue was $119.0 million compared to $148.2 million in the prior year period and exceeded the high end of the guidance range. Digital revenue was $64.0 million compared to $68.7 million in the prior year period and digital subscriptions totaled 1.31 million in the fourth quarter. Nutrition and Other revenue was $51.8 million compared to $74.7 million in the prior year period and nutritional subscriptions totaled 0.16 million in the fourth quarter. Connected Fitness revenue was $3.2 million compared to $4.7 million in the prior year period and approximately 4,100 bikes were delivered in the fourth quarter. Total operating expenses were $134.3 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $132.8 million in the prior year period, which included an $18.9 million impairment of intangible assets. Operating loss increased by $12.2 million to $60.4 million compared to an operating loss of $48.1 million in the prior year period. Net loss was $65.0 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $44.9 million in the prior year period, which included an $18.9 million impairment of intangible assets. Adjusted EBITDA1 was $2.8 million compared to $3.5 million in the prior year period. Full Year 2023 Results Total revenue was $527.1 million compared to $692.2 million in the prior year. Digital revenue was $258.4 million compared to $300.7 million in the prior year. Nutrition and Other revenue was $249.5 million compared to $353.3 million in the prior year. Connected Fitness revenue was $19.2 million compared to $38.2 million in the prior year and approximately 20,850 bikes were delivered in 2023. Total operating expenses were $464.1 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $572.7 million in the prior year, which included a $19.9 million impairment of intangible assets. Operating loss decreased by $62.2 million to $141.0 million compared to an operating loss of $203.2 million in the prior year. Net loss was $152.6 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $194.2 million in the prior year, which included a $19.9 million impairment of intangible assets. Adjusted EBITDA1 was $(8.7) million compared to $(23.3) million in the prior year. Cash used in operating activities for the year ended December 31, 2023 was $22.5 million compared to $47.2 million in the prior year, and cash used in investing activities was $10.8 million compared to $26.5 million in the prior year. Total cash used in operating activities minus the purchase of property and equipment, which we call free cash flow, was $29.1 million compared to $73.7 million in the prior year. Marc Suidan, Chief Financial Officer, stated: "With our new cost structure in place, we should have positive free cash flow in the first quarter of 2024. We have significantly reduced our breakeven point and are projecting to achieve approximately $200 million in fixed costs and capital expenditure savings in 2024 over 2021. The annualized cost savings increased from approximately $165 million in 2023 to an estimate of approximately $200 million in 2024, as compared to our 2021 cost structure." Key Operational and Business Metrics As of or for the Three Months Ended December 31, As of or for the Year Ended December 31, 2023 2022 Change v 2022 2023 2022 Change v 2022 Digital Subscriptions (in millions) 1.31 1.95 (33.0 %) 1.31 1.95 (33.0 %) Nutritional Subscriptions (in millions) 0.16 0.22 (25.0 %) 0.16 0.22 (25.0 %) Total Subscriptions (in millions) 1.47 2.17 (32.2 %) 1.47 2.17 (32.2 %) Average Digital Retention 96.9 % 96.8 % 10bps 96.0 % 95.9 % 10bps Total Streams (in millions) 20.4 23.8 (14.6 %) 98.2 120.5 (18.4 %) DAU/MAU 30.3 % 29.0 % 130bps 31.3 % 30.1 % 120 bps Connected Fitness Units Delivered (in thousands) 4.1 3.7 10.7 % 20.9 31.5 (33.6 %) Digital $ 64.0 $ 68.7 (6.8 %) $ 258.4 $ 300.7 (14.1 %) Nutrition & Other $ 51.8 $ 74.7 (30.7 %) $ 249.5 $ 353.3 (29.4 %) Connected Fitness $ 3.2 $ 4.8 (33.0 %) $ 19.2 $ 38.2 (49.7 %) Revenue (in millions) $ 119.0 $ 148.2 (19.7 %) $ 527.1 $ 692.2 (23.9 %) Net Loss (in millions) $ (65.0 ) $ (44.9 ) (44.6 %) $ (152.6 ) $ (194.2 ) 21.4 % Adjusted EBITDA (in millions) 1 $ 2.8 $ 3.5 (20.0 %) $ (8.7 ) $ (23.3 ) 62.7 % Outlook for The First Quarter of 2024 Outlook For Quarter Ending March 31, 2024 (in millions) Revenue $ 113 $ 121 Net Loss $ (15 ) $ (10 ) Adjustments: Depreciation and Amortization $ 5 $ 5 Amortization of Content Assets $ 5 $ 5 Interest Expense $ 2 $ 2 Equity-Based Compensation $ 5 $ 5 Other Adjustment Items $ (2 ) $ (2 ) Total Adjustments $ 15 $ 15 Adjusted EBITDA 1 — $ 5 1 A definition of Adjusted EBITDA and reconciliation to net loss is at the end of this release. Conference Call and Webcast Information BODi will host a conference call at 5:00pm ET on Monday, March 11, 2024, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 470-1428 (U.S. & Canada), or +1 (929) 526-1599 (all other locations) and provide the conference identification number: 485492. 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 18, 2024, by dialing (866) 813-9403 (U.S. & Canada), or + 44 (204) 525-0658 (all other locations). The replay passcode is 109802. After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year. About BODi and The Beachbody Company, Inc. Originally known as Beachbody, BODi has been innovating structured step-by-step home fitness and nutrition programs for 25 years such as P90X, Insanity, and 21-Day Fix, plus the first premium superfood nutrition supplement, Shakeology. Headquartered in El Segundo, California, BODi helps people feel great while they pursue extraordinary life-changing results. The BODi community represents millions of people helping each other stay accountable to goals of healthy weight loss, improved strength and energy, and resilient mental and physical well-being. Ticker Symbol Changed to BODi On March 4, 2024, the Company transitioned its stock ticker from "BODY" to "BODi" on the NYSE, in line with its rebrand from Beachbody to BODi. There were no changes made to the CUSIP or the stock's listing status on the NYSE. Safe Harbor Statement This press release of The Beachbody Company, Inc. (“we,” “us,” “our,” and similar terms) 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 second 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 11, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, 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. The Beachbody Company, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) As of December 31, 2023 2022 Assets Current assets: Cash and cash equivalents (restricted cash of $0.1 million and $0.0 million at December 31, 2023 and 2022, respectively) $ 33,409 $ 80,091 Restricted short-term investments 4,250 — Inventory 24,976 54,060 Prepaid expenses 10,715 13,055 Other current assets 45,923 39,248 Total current assets 119,273 186,454 Property and equipment, net 45,055 74,147 Content assets, net 21,359 34,888 Goodwill and intangible assets, net 85,166 133,370 Right-of-use assets, net 3,063 5,030 Other assets 2,923 9,506 Total assets $ 276,839 $ 443,395 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 10,659 $ 17,940 Accrued expenses 42,147 64,430 Deferred revenue 97,169 95,587 Current portion of lease liabilities 1,835 2,150 Current portion of Term Loan 8,068 1,250 Other current liabilities 5,325 3,283 Total current liabilities 165,203 184,640 Term Loan 21,491 39,735 Long-term lease liabilities, net 1,425 3,318 Deferred tax liabilities, net 10 181 Other liabilities 5,950 3,979 Total liabilities 194,079 231,853 Stockholders’ equity: Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding as of December 31, 2023 and 2022 — — Common stock, $0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000 Class X and 100,000,000 Class C); Class A: 3,978,356 and 3,418,237 shares issued and outstanding at December 31, 2023 and 2022, respectively; 1 1 Class X: 2,729,003 and 2,825,006 shares issued and outstanding at December 31, 2023 and 2022, respectively; 1 1 Class C: no shares issued and outstanding at December 31, 2023 and 2022 — — Additional paid-in capital 654,657 630,738 Accumulated deficit (571,876 ) (419,235 ) Accumulated other comprehensive income (loss) (23 ) 37 Total stockholders’ equity 82,760 211,542 Total liabilities and stockholders’ equity $ 276,839 $ 443,395 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three months ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenue: Digital $ 64,044 $ 68,685 $ 258,370 $ 300,673 Nutrition and other 51,781 74,735 249,510 353,331 Connected fitness 3,185 4,746 19,229 38,195 Total revenue 119,010 148,166 527,109 692,199 Cost of revenue: Digital 17,210 15,510 64,942 66,419 Nutrition and other 24,230 37,491 109,170 164,753 Connected fitness 3,598 10,544 29,910 91,454 Total cost of revenue 45,038 63,545 204,022 322,626 Gross profit 73,972 84,621 323,087 369,573 Operating expenses: Selling and marketing 59,952 73,774 282,147 359,987 Enterprise technology and development 17,782 20,847 74,407 104,363 General and administrative 13,570 19,237 57,932 78,426 Restructuring (53 ) — 6,497 10,047 Impairment of goodwill 40,000 — 40,000 — Impairment of intangible assets 3,092 18,907 3,092 19,907 Total operating expenses 134,343 132,765 464,075 572,730 Operating loss (60,371 ) (48,144 ) (140,988 ) (203,157 ) Other income (expense) Loss on partial debt extinguishment — — (3,168 ) — Impairment of other investment (4,000 ) — (4,000 ) — Change in fair value of warrant liabilities 1,175 3,626 2,679 8,322 Interest expense (2,101 ) (2,194 ) (8,874 ) (3,368 ) Other income, net 196 262 1,747 958 Loss before income taxes (65,101 ) (46,450 ) (152,604 ) (197,245 ) Income tax benefit (provision) 62 1,517 (37 ) 3,053 Net loss $ (65,039 ) $ (44,933 ) $ (152,641 ) $ (194,192 ) Net loss per common share, basic and diluted $ (10.31 ) $ (7.28 ) $ (24.47 ) $ (31.58 ) Weighted-average common shares outstanding, basic and diluted 6,307 6,168 6,239 6,150 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2023 2022 Cash flows from operating activities: Net loss $ (152,641 ) $ (194,192 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment of goodwill 40,000 — Impairment of intangible assets 3,092 19,907 Impairment of other investments 4,000 — Depreciation and amortization expense 39,573 74,848 Amortization of content assets 23,755 24,276 Provision for inventory and inventory purchase commitments 10,561 39,757 Realized losses on hedging derivative financial instruments 222 108 Change in fair value of warrant liabilities (2,679 ) (8,322 ) Equity-based compensation 23,891 17,620 Deferred income taxes (191 ) (2,961 ) Amortization of debt issuance costs 1,899 733 Paid-in-kind interest expense 1,310 598 Loss on partial debt extinguishment 3,168 — Change in lease assets 1,967 — Other non-cash items — 1,219 Changes in operating assets and liabilities: Inventory 17,508 41,510 Content assets (10,226 ) (19,787 ) Prepaid expenses 2,340 2,806 Other assets (4,438 ) 4,241 Accounts payable (7,103 ) (26,705 ) Accrued expenses (20,293 ) (8,673 ) Deferred revenue 2,163 (9,563 ) Other liabilities (415 ) (4,593 ) Net cash used in operating activities (22,537 ) (47,173 ) Cash flows from investing activities: Purchase of property and equipment (6,576 ) (26,493 ) Investment in restricted short-term investments (4,250 ) — Net cash used in investing activities (10,826 ) (26,493 ) Cash flows from financing activities: Proceeds from exercise of stock options — 3,162 Remittance of taxes withheld from employee stock awards — (308 ) Debt borrowings — 50,000 Debt repayments (17,000 ) (625 ) Proceeds from issuance of common shares in the Employee Stock Purchase Plan 553 — Tax withholdings payments for vesting of restricted stock (2,178 ) (183 ) Payment of debt issuance costs — (4,485 ) Proceeds from issuance of Equity Offering, net of issuance costs 4,908 — Net cash (used in) provided by financing activities (13,717 ) 47,561 Effect of exchange rates on cash 398 (858 ) Net decrease in cash, cash equivalents and restricted cash (46,682 ) (26,963 ) Cash, cash equivalents and restricted cash, beginning of year 80,091 107,054 Cash, cash equivalents and restricted cash, end of year $ 33,409 $ 80,091 The Beachbody Company, Inc. Non GAAP Information We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. 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 tax provision (benefit), equity-based compensation, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business as described in the reconciliation below. We include this non-GAAP financial measure because it is used by management to evaluate BODi’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, impairment of goodwill and intangible assets and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense). The table below presents our Adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated: Three months ended December 31, Year ended December 31, (in thousands) 2023 2022 2023 2022 Net loss $ (65,039 ) $ (44,933 ) $ (152,641 ) $ (194,192 ) Adjusted for: Impairment of goodwill 40,000 — 40,000 — Impairment of intangible assets 3,092 18,907 3,092 19,907 Impairment of other investment 4,000 — 4,000 — Loss on partial debt extinguishment (1) — — 3,168 — Depreciation and amortization 8,178 15,990 39,573 74,848 Amortization of capitalized cloud computing implementation costs 57 30 179 492 Amortization of content assets 7,268 5,603 23,755 24,276 Interest expense 2,101 2,194 8,874 3,368 Income tax provision (benefit) (62 ) (1,517 ) 37 (3,053 ) Equity-based compensation 4,739 4,454 23,891 17,620 Employee incentives, expected to be settled in equity (2) — 5,466 (5,466 ) 5,466 Inventory net realizable value adjustment (3) — 1,295 — 24,864 Restructuring and platform consolidation costs (4) (53 ) — 7,169 11,718 Change in fair value of warrant liabilities (1,175 ) (3,626 ) (2,679 ) (8,322 ) Non-operating (5) (309 ) (320 ) (1,649 ) (257 ) Adjusted EBITDA $ 2,797 $ 3,543 $ (8,697 ) $ (23,265 ) 1 Represents the loss related to the $15.0 million partial debt prepayment that the Company made on July 24, 2023. 2 The non-cash charge for employee incentives which were expected to be settled in equity was recorded and included in the Adjusted EBITDA calculation during the year ended December 31, 2022. During the three months ended March 31, 2023, we reclassified the non-cash charge from employee incentives expected to be settled in equity to equity-based compensation because we settled certain employee incentives with restricted stock unit awards during the period. 3 Represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. This adjustment was included during the three months and year ended December 31, 2022, because of its unusual magnitude due to disruptions in the connected fitness market. 4 Includes restructuring expense and personnel costs associated with executing our key growth priorities during the year ended December 31, 2023, and with the consolidation of our digital platforms during the three months and year ended December 31, 2022. The costs primarily relates to termination benefits related to headcount reductions. 5 Primarily includes interest income. View source version on businesswire.com: https://www.businesswire.com/news/home/20240311877780/en/Contacts Investor Relations IR@BODi.com
The Beachbody Company, Inc. (NYSE: BODi) (“BODi” or the “Company”), a leading subscription health and wellness company, today announced financial results for its fourth quarter ended December 31, 2023. "2023 was a transformational year at BODi. Our turnaround plan successfully simplified our digital platform, lowering our breakeven point and enhancing our liquidity position,” said Carl Daikeler, BODi’s Co-Founder and Chief Executive Officer. "In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business. Our accomplishments in 2023 set the foundation for continued execution of our turnaround in 2024. We expect to have positive cash flow from operating activities and free cash flow in the first quarter.” Fourth Quarter 2023 Results Total revenue was $119.0 million compared to $148.2 million in the prior year period and exceeded the high end of the guidance range. Digital revenue was $64.0 million compared to $68.7 million in the prior year period and digital subscriptions totaled 1.31 million in the fourth quarter. Nutrition and Other revenue was $51.8 million compared to $74.7 million in the prior year period and nutritional subscriptions totaled 0.16 million in the fourth quarter. Connected Fitness revenue was $3.2 million compared to $4.7 million in the prior year period and approximately 4,100 bikes were delivered in the fourth quarter. Total operating expenses were $134.3 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $132.8 million in the prior year period, which included an $18.9 million impairment of intangible assets. Operating loss increased by $12.2 million to $60.4 million compared to an operating loss of $48.1 million in the prior year period. Net loss was $65.0 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $44.9 million in the prior year period, which included an $18.9 million impairment of intangible assets. Adjusted EBITDA1 was $2.8 million compared to $3.5 million in the prior year period. Full Year 2023 Results Total revenue was $527.1 million compared to $692.2 million in the prior year. Digital revenue was $258.4 million compared to $300.7 million in the prior year. Nutrition and Other revenue was $249.5 million compared to $353.3 million in the prior year. Connected Fitness revenue was $19.2 million compared to $38.2 million in the prior year and approximately 20,850 bikes were delivered in 2023. Total operating expenses were $464.1 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $572.7 million in the prior year, which included a $19.9 million impairment of intangible assets. Operating loss decreased by $62.2 million to $141.0 million compared to an operating loss of $203.2 million in the prior year. Net loss was $152.6 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $194.2 million in the prior year, which included a $19.9 million impairment of intangible assets. Adjusted EBITDA1 was $(8.7) million compared to $(23.3) million in the prior year. Cash used in operating activities for the year ended December 31, 2023 was $22.5 million compared to $47.2 million in the prior year, and cash used in investing activities was $10.8 million compared to $26.5 million in the prior year. Total cash used in operating activities minus the purchase of property and equipment, which we call free cash flow, was $29.1 million compared to $73.7 million in the prior year. Marc Suidan, Chief Financial Officer, stated: "With our new cost structure in place, we should have positive free cash flow in the first quarter of 2024. We have significantly reduced our breakeven point and are projecting to achieve approximately $200 million in fixed costs and capital expenditure savings in 2024 over 2021. The annualized cost savings increased from approximately $165 million in 2023 to an estimate of approximately $200 million in 2024, as compared to our 2021 cost structure." Key Operational and Business Metrics As of or for the Three Months Ended December 31, As of or for the Year Ended December 31, 2023 2022 Change v 2022 2023 2022 Change v 2022 Digital Subscriptions (in millions) 1.31 1.95 (33.0 %) 1.31 1.95 (33.0 %) Nutritional Subscriptions (in millions) 0.16 0.22 (25.0 %) 0.16 0.22 (25.0 %) Total Subscriptions (in millions) 1.47 2.17 (32.2 %) 1.47 2.17 (32.2 %) Average Digital Retention 96.9 % 96.8 % 10bps 96.0 % 95.9 % 10bps Total Streams (in millions) 20.4 23.8 (14.6 %) 98.2 120.5 (18.4 %) DAU/MAU 30.3 % 29.0 % 130bps 31.3 % 30.1 % 120 bps Connected Fitness Units Delivered (in thousands) 4.1 3.7 10.7 % 20.9 31.5 (33.6 %) Digital $ 64.0 $ 68.7 (6.8 %) $ 258.4 $ 300.7 (14.1 %) Nutrition & Other $ 51.8 $ 74.7 (30.7 %) $ 249.5 $ 353.3 (29.4 %) Connected Fitness $ 3.2 $ 4.8 (33.0 %) $ 19.2 $ 38.2 (49.7 %) Revenue (in millions) $ 119.0 $ 148.2 (19.7 %) $ 527.1 $ 692.2 (23.9 %) Net Loss (in millions) $ (65.0 ) $ (44.9 ) (44.6 %) $ (152.6 ) $ (194.2 ) 21.4 % Adjusted EBITDA (in millions) 1 $ 2.8 $ 3.5 (20.0 %) $ (8.7 ) $ (23.3 ) 62.7 % Outlook for The First Quarter of 2024 Outlook For Quarter Ending March 31, 2024 (in millions) Revenue $ 113 $ 121 Net Loss $ (15 ) $ (10 ) Adjustments: Depreciation and Amortization $ 5 $ 5 Amortization of Content Assets $ 5 $ 5 Interest Expense $ 2 $ 2 Equity-Based Compensation $ 5 $ 5 Other Adjustment Items $ (2 ) $ (2 ) Total Adjustments $ 15 $ 15 Adjusted EBITDA 1 — $ 5 1 A definition of Adjusted EBITDA and reconciliation to net loss is at the end of this release. Conference Call and Webcast Information BODi will host a conference call at 5:00pm ET on Monday, March 11, 2024, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 470-1428 (U.S. & Canada), or +1 (929) 526-1599 (all other locations) and provide the conference identification number: 485492. 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 18, 2024, by dialing (866) 813-9403 (U.S. & Canada), or + 44 (204) 525-0658 (all other locations). The replay passcode is 109802. After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year. About BODi and The Beachbody Company, Inc. Originally known as Beachbody, BODi has been innovating structured step-by-step home fitness and nutrition programs for 25 years such as P90X, Insanity, and 21-Day Fix, plus the first premium superfood nutrition supplement, Shakeology. Headquartered in El Segundo, California, BODi helps people feel great while they pursue extraordinary life-changing results. The BODi community represents millions of people helping each other stay accountable to goals of healthy weight loss, improved strength and energy, and resilient mental and physical well-being. Ticker Symbol Changed to BODi On March 4, 2024, the Company transitioned its stock ticker from "BODY" to "BODi" on the NYSE, in line with its rebrand from Beachbody to BODi. There were no changes made to the CUSIP or the stock's listing status on the NYSE. Safe Harbor Statement This press release of The Beachbody Company, Inc. (“we,” “us,” “our,” and similar terms) 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 second 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 11, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, 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. The Beachbody Company, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) As of December 31, 2023 2022 Assets Current assets: Cash and cash equivalents (restricted cash of $0.1 million and $0.0 million at December 31, 2023 and 2022, respectively) $ 33,409 $ 80,091 Restricted short-term investments 4,250 — Inventory 24,976 54,060 Prepaid expenses 10,715 13,055 Other current assets 45,923 39,248 Total current assets 119,273 186,454 Property and equipment, net 45,055 74,147 Content assets, net 21,359 34,888 Goodwill and intangible assets, net 85,166 133,370 Right-of-use assets, net 3,063 5,030 Other assets 2,923 9,506 Total assets $ 276,839 $ 443,395 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 10,659 $ 17,940 Accrued expenses 42,147 64,430 Deferred revenue 97,169 95,587 Current portion of lease liabilities 1,835 2,150 Current portion of Term Loan 8,068 1,250 Other current liabilities 5,325 3,283 Total current liabilities 165,203 184,640 Term Loan 21,491 39,735 Long-term lease liabilities, net 1,425 3,318 Deferred tax liabilities, net 10 181 Other liabilities 5,950 3,979 Total liabilities 194,079 231,853 Stockholders’ equity: Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding as of December 31, 2023 and 2022 — — Common stock, $0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000 Class X and 100,000,000 Class C); Class A: 3,978,356 and 3,418,237 shares issued and outstanding at December 31, 2023 and 2022, respectively; 1 1 Class X: 2,729,003 and 2,825,006 shares issued and outstanding at December 31, 2023 and 2022, respectively; 1 1 Class C: no shares issued and outstanding at December 31, 2023 and 2022 — — Additional paid-in capital 654,657 630,738 Accumulated deficit (571,876 ) (419,235 ) Accumulated other comprehensive income (loss) (23 ) 37 Total stockholders’ equity 82,760 211,542 Total liabilities and stockholders’ equity $ 276,839 $ 443,395 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three months ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenue: Digital $ 64,044 $ 68,685 $ 258,370 $ 300,673 Nutrition and other 51,781 74,735 249,510 353,331 Connected fitness 3,185 4,746 19,229 38,195 Total revenue 119,010 148,166 527,109 692,199 Cost of revenue: Digital 17,210 15,510 64,942 66,419 Nutrition and other 24,230 37,491 109,170 164,753 Connected fitness 3,598 10,544 29,910 91,454 Total cost of revenue 45,038 63,545 204,022 322,626 Gross profit 73,972 84,621 323,087 369,573 Operating expenses: Selling and marketing 59,952 73,774 282,147 359,987 Enterprise technology and development 17,782 20,847 74,407 104,363 General and administrative 13,570 19,237 57,932 78,426 Restructuring (53 ) — 6,497 10,047 Impairment of goodwill 40,000 — 40,000 — Impairment of intangible assets 3,092 18,907 3,092 19,907 Total operating expenses 134,343 132,765 464,075 572,730 Operating loss (60,371 ) (48,144 ) (140,988 ) (203,157 ) Other income (expense) Loss on partial debt extinguishment — — (3,168 ) — Impairment of other investment (4,000 ) — (4,000 ) — Change in fair value of warrant liabilities 1,175 3,626 2,679 8,322 Interest expense (2,101 ) (2,194 ) (8,874 ) (3,368 ) Other income, net 196 262 1,747 958 Loss before income taxes (65,101 ) (46,450 ) (152,604 ) (197,245 ) Income tax benefit (provision) 62 1,517 (37 ) 3,053 Net loss $ (65,039 ) $ (44,933 ) $ (152,641 ) $ (194,192 ) Net loss per common share, basic and diluted $ (10.31 ) $ (7.28 ) $ (24.47 ) $ (31.58 ) Weighted-average common shares outstanding, basic and diluted 6,307 6,168 6,239 6,150 The Beachbody Company, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2023 2022 Cash flows from operating activities: Net loss $ (152,641 ) $ (194,192 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment of goodwill 40,000 — Impairment of intangible assets 3,092 19,907 Impairment of other investments 4,000 — Depreciation and amortization expense 39,573 74,848 Amortization of content assets 23,755 24,276 Provision for inventory and inventory purchase commitments 10,561 39,757 Realized losses on hedging derivative financial instruments 222 108 Change in fair value of warrant liabilities (2,679 ) (8,322 ) Equity-based compensation 23,891 17,620 Deferred income taxes (191 ) (2,961 ) Amortization of debt issuance costs 1,899 733 Paid-in-kind interest expense 1,310 598 Loss on partial debt extinguishment 3,168 — Change in lease assets 1,967 — Other non-cash items — 1,219 Changes in operating assets and liabilities: Inventory 17,508 41,510 Content assets (10,226 ) (19,787 ) Prepaid expenses 2,340 2,806 Other assets (4,438 ) 4,241 Accounts payable (7,103 ) (26,705 ) Accrued expenses (20,293 ) (8,673 ) Deferred revenue 2,163 (9,563 ) Other liabilities (415 ) (4,593 ) Net cash used in operating activities (22,537 ) (47,173 ) Cash flows from investing activities: Purchase of property and equipment (6,576 ) (26,493 ) Investment in restricted short-term investments (4,250 ) — Net cash used in investing activities (10,826 ) (26,493 ) Cash flows from financing activities: Proceeds from exercise of stock options — 3,162 Remittance of taxes withheld from employee stock awards — (308 ) Debt borrowings — 50,000 Debt repayments (17,000 ) (625 ) Proceeds from issuance of common shares in the Employee Stock Purchase Plan 553 — Tax withholdings payments for vesting of restricted stock (2,178 ) (183 ) Payment of debt issuance costs — (4,485 ) Proceeds from issuance of Equity Offering, net of issuance costs 4,908 — Net cash (used in) provided by financing activities (13,717 ) 47,561 Effect of exchange rates on cash 398 (858 ) Net decrease in cash, cash equivalents and restricted cash (46,682 ) (26,963 ) Cash, cash equivalents and restricted cash, beginning of year 80,091 107,054 Cash, cash equivalents and restricted cash, end of year $ 33,409 $ 80,091 The Beachbody Company, Inc. Non GAAP Information We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. 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 tax provision (benefit), equity-based compensation, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business as described in the reconciliation below. We include this non-GAAP financial measure because it is used by management to evaluate BODi’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, impairment of goodwill and intangible assets and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense). The table below presents our Adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated: Three months ended December 31, Year ended December 31, (in thousands) 2023 2022 2023 2022 Net loss $ (65,039 ) $ (44,933 ) $ (152,641 ) $ (194,192 ) Adjusted for: Impairment of goodwill 40,000 — 40,000 — Impairment of intangible assets 3,092 18,907 3,092 19,907 Impairment of other investment 4,000 — 4,000 — Loss on partial debt extinguishment (1) — — 3,168 — Depreciation and amortization 8,178 15,990 39,573 74,848 Amortization of capitalized cloud computing implementation costs 57 30 179 492 Amortization of content assets 7,268 5,603 23,755 24,276 Interest expense 2,101 2,194 8,874 3,368 Income tax provision (benefit) (62 ) (1,517 ) 37 (3,053 ) Equity-based compensation 4,739 4,454 23,891 17,620 Employee incentives, expected to be settled in equity (2) — 5,466 (5,466 ) 5,466 Inventory net realizable value adjustment (3) — 1,295 — 24,864 Restructuring and platform consolidation costs (4) (53 ) — 7,169 11,718 Change in fair value of warrant liabilities (1,175 ) (3,626 ) (2,679 ) (8,322 ) Non-operating (5) (309 ) (320 ) (1,649 ) (257 ) Adjusted EBITDA $ 2,797 $ 3,543 $ (8,697 ) $ (23,265 ) 1 Represents the loss related to the $15.0 million partial debt prepayment that the Company made on July 24, 2023. 2 The non-cash charge for employee incentives which were expected to be settled in equity was recorded and included in the Adjusted EBITDA calculation during the year ended December 31, 2022. During the three months ended March 31, 2023, we reclassified the non-cash charge from employee incentives expected to be settled in equity to equity-based compensation because we settled certain employee incentives with restricted stock unit awards during the period. 3 Represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. This adjustment was included during the three months and year ended December 31, 2022, because of its unusual magnitude due to disruptions in the connected fitness market. 4 Includes restructuring expense and personnel costs associated with executing our key growth priorities during the year ended December 31, 2023, and with the consolidation of our digital platforms during the three months and year ended December 31, 2022. The costs primarily relates to termination benefits related to headcount reductions. 5 Primarily includes interest income. 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