Beachbody (NASDAQ:BODI) Announces Earnings Results

Beachbody (NASDAQ:BODI) announced its earnings results on Tuesday. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.20) by $0.29, FiscalAI reports. Beachbody had a net margin of 5.68% and a return on equity of 44.34%. The firm had revenue of $45.19 million for the quarter, compared to analyst estimates of $46.26 million.

Here are the key takeaways from Beachbody’s conference call:

• Revenue and subscriber counts continued to decline. Third-quarter revenue fell 24.5% year over year to $45.2 million; digital subscriptions declined 23.3%, and management said customer attrition still exceeds new additions.
• Profitability beat guidance, and major cost cuts lowered the break-even point. Adjusted EBITDA was $6.4 million, above the company’s $3 million–$6 million range, while an announced $34 million in overhead and other savings is expected to bring the adjusted EBITDA break-even level to about $125 million.
• Fourth-quarter revenue is expected to fall further. BODi guided to revenue of $38 million–$42 million and net income ranging from a $2 million loss to $1 million in income, although it expects adjusted EBITDA of $6 million–$9 million.
• Cash flow and liquidity remain important watchpoints. Cash was $27.5 million and net cash was $4.6 million at quarter-end; free cash flow was negative $12.1 million for the first nine months, partly reflecting a $5 million inventory build.
• The nutrition-led, multi-channel growth plan is still early and faces retail timing delays. Shakeology is in 181 Sprouts stores and 481 Vitamin Shoppe stores, while new products are also launching online and in a Southern California test market; management said broader retail expansion is tied to retailers’ reset schedules and new-customer growth remains a work in progress.

Beachbody Price Performance

Beachbody stock traded down $0.18 during trading hours on Wednesday, reaching $4.33. 3,307 shares of the stock were exchanged, compared to its average volume of 47,440. The company has a market cap of $31.49 million, a P/E ratio of 2.65 and a beta of 0.96. The company has a current ratio of 0.79, a quick ratio of 0.61 and a debt-to-equity ratio of 0.58. Beachbody has a twelve month low of $4.01 and a twelve month high of $16.87. The stock has a 50 day moving average of $4.76 and a two-hundred day moving average of $8.89.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Roth Capital reiterated a “neutral” rating and issued a $9.00 price target on shares of Beachbody in a research report on Tuesday, August 11th. Weiss Ratings downgraded Beachbody from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, October 6th. Wall Street Zen lowered Beachbody from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Canaccord Genuity Group lowered their price objective on Beachbody from $19.00 to $16.00 and set a “buy” rating on the stock in a research note on Friday, October 30th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Beachbody currently has a consensus rating of “Hold” and an average target price of $13.33.

Beachbody Company Profile

Beachbody, operating under the BODi brand, is a digital fitness and wellness company that provides at-home workout programs, nutrition guidance and related products through online and mobile platforms. Its offerings are designed to support exercise, weight management and broader healthy-lifestyle goals. The company’s portfolio has included on-demand workout content led by professional trainers, personalized fitness and nutrition programs, meal-planning resources, supplements and other wellness products.