Beachbody reported earnings Q2’22 earnings on August 8. The digital fitness and nutrition company posted mounting losses as it pivots back to its core business.
By the numbers:
- Q2 revenue was $179.1M, down 20% from Q2’21 and 3% from Q2’19.
- Digital revenue dropped 17%, while digital subscriptions fell 16% YoY.
- Nutrition revenue fell 30%, with nutrition subscriptions declining from 420K to 280K.
- Net loss was $41.9M vs. a loss of $12.4 million in 2021 and net income of $19.6M in ’19.
Between the lines: Chasing growth, many digital fitness companies overindexed on pandemic-era demand. Complicating matters, Beachbody admits it made some operational miscues along the way.
Shifting its strategy, the company plans to revisit its 2019 playbook. To help weather the storm, Beachbody secured $50M in debt financing from Blue Torch Capital (with an option to borrow $25M more).
Disconnected. The company’s 2021 SPAC merger with connected bike company MYXfitness hasn’t gone as planned. In Q2, it shipped 8.8K rebranded bikes and achieved $10.6M in related revenue. Pre-merger, and still in the height of pandemic restrictions, MYXfitness’s Q2’21 hit $11M on 10.2K shipped.
The secret sauce. Attempting to correct course, CEO Carl Daikeler told Fitt Insider that Beachbody needs to get back to its core:
“Sometimes an industry can chase so much innovation that the real solution is overlooked. What people need are the information and tools to make the few simple lifestyle changes that will improve everything. That’s our focus.”
Harkening back to its viral hits with P90X, INSANITY, and 21 Day Fix, Beachbody will try to revamp its subscriptions with new signature workout and nutrition programs.
Takeaway: By creating effective, results-oriented, and serialized content, Daikeler & Co. can lean on old avenues like word-of-mouth buzz and affiliate marketing to sell its platform, not a smart bike. Easier said than done.