With at-home fitness demand on the decline, Beachbody is betting on content, nutrition, and new product launches to turn things around.
The latest: A digital fitness brand and owner of connected equipment maker MYXfitness, Beachbody reported its Q1 2022 earnings.
- The company brought in $198.9M in total revenue, a 12% decline from Q1’21 but outpacing forecasts of $170–180M.
- Adjusted EBITDA losses came in at $19.1M, compared to a loss of $11.7M in 2021; guidance had predicted $20–25M.
- Digital subscriptions totaled 2.46M, down 10% YoY from 2.74M.
Shifting gears. Recognizing slowdowns in at-home fitness, leadership promised a shift in priorities:
“Connected fitness will always be a part of the business, but the tail won’t wag the dog as much as it did… on the back half of 2021 or the first quarter [of] 2022.”
Looking elsewhere to turn its subscription flywheel, the company is banking on content- and nutrition-based launches to improve Q2 margins.
Blending its bread-and-butter content model with current trends, its newly released Job One (a program of time-saving, 20-minute workouts) and Gut Protocol (a nutritional course for better gut health) have already contributed to narrowing losses.
Moving parts. Leaving the company, Beachbody president and CFO Sue Collyns will be replaced by Marc Suidan, a former partner at PWC. This comes weeks after Beachbody laid off 10% of its workforce to lower expenses.
Punchline: As enthusiasm for at-home fitness fizzles, Beachbody is struggling to find its footing. Can priority pivots and workforce reorgs get it back on track? Wall Street isn’t so sure — following its earnings release, stocks fell 11.74% to $1.28.