BODi, formerly known as Beachbody, the OG of subscription health and fitness systems, expects positive cash flow in Q1 — the first time since 2020 — following a “transformational” 2023. The company just released its financial earnings, reporting a total revenue of $119.0 million in Q4 of 2024, compared to $148 million in the prior year period. Total revenue for the full year 2023 was $527.1 million, compared to $692.2 million in the prior year.

Despite the seemingly lackluster financial results, BODi’s executive team tells Athletech News they’re bullish on the company’s future, driven by a focus on improving cash flow and leaning into digital fitness and holistic wellness content, including an embrace of GLP-1s.

The company known for its high-energy fitness coaches such as Autumn Calabrese, Shaun T, Tony Horton and Shakeology protein shakes, underwent a major rebrand from Beachbody to BODi last year, adopting a more holistic approach to health and wellness. The move also included a major declaration from Carl Daikeler, the company’s co-founder and CEO: “Beachbody is dead.”

In place of the old and tired diet and fitness industry playbook, Daikeler explained his vision for the future — one in which a positive mindset was woven into the health and fitness experience, combatting what he called a “permanent dissatisfaction” that many consumers experience.

It’s not a quick fix, especially in a highly competitive industry, but BODi is encouraged by early results, including high search traffic volume following its makeover. Reflecting on 2023’s earnings, Daikeler says BODi’s self-described “turnaround plan” has been successful so far, with the company lowering its breakeven point and enhancing its liquidity.

“In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business,” Daikeler said. “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.”

BODi has also offloaded its Van Nuys, California, production facility for $6.2 million, using the net proceeds to make a partial prepayment on its $5.5 million term loan.

BODi’s Financial Overhaul

Mark Goldston, executive chairman of BODi’s board of directors, partnered with Daikeler last year to guide the company’s transformation, drive profitability and unlock growth opportunities. He also serves as chairman and CEO of The Goldston Group and is a general partner of Athletic Propulsion Labs, a high-end performance athletic footwear company — lending his expertise to revitalize and reposition BODi back on its fitness throne.

“Since the start of the program, we are on track to achieve over $200 million in fixed costs and CapEx savings in 2024 over 2021, and introduced a more efficient sales and marketing model that aims to deliver a 1,000 (basis points) bps improvement in 2024,” Goldston tells Athletech News. “This dramatically lowers the revenue breakeven for the company. By building operating leverage into the P&L, our dramatically lower cost base has the potential to generate strong incremental profitability when we return to revenue growth.”

Last year, the company also introduced a new “Growth Game Plan” that rewards high-performing network sales partners within its subscription health and fitness system.

King of Fitness Content

Touting its extensive digital fitness library of 134-plus programs with widely-known titles such as P90X, Insanity, 21-Day Fix and Lift More, BODi is leaning into its content offering, having refined its appeal.

“We think of BODi as being the ‘Netflix’ of the digital fitness industry, and we are doing a much better job of leveraging that library,” Goldston said. “That includes creating our first-ever free BODi Previews tool that features over 120 individual workouts and allowing even more consumers to enter into our community.”

Goldston also shared that BODi is expanding its retail and direct marketing business to bring the benefits of its fitness content and nutritional products to a broader audience.

“Our BODi digital fitness app was recently named the #1 workout app last year by CNN Underscored, so we’re being recognized for the impact we’re making for modern fitness consumers,” Goldston said.

Embracing Wellness & Weight Loss Drugs

Unafraid of GLP-1 weight loss drugs, BODi instead sees a significant opportunity. 

“With over 145 million American adults categorized as overweight and more than 75 million of those people considered clinically obese, the TAM for BODi is massive,” Goldston predicts, adding that many people who are considerably overweight may experience difficulty starting an exercise program and are self-conscious about going to a gym. 

“The GLP-1 drug movement is designed to address the 145 million people who are overweight, especially the clinically obese, and we strongly believe that those drugs will unlock a major TAM opportunity for BODi largely because a large group of people will lose enough weight to safely and comfortably consider starting an exercise program in the privacy of their own home,” he continued.

Goldston also referenced the need for GLP-1 users to maintain a healthy eating regimen, which he sees as a major “boon for BODI” in terms of its meal plans and nutritional supplement offerings. 

As for BODi’s fitness content, Goldston pointed out that the platform’s fitness programs can help offset the loss of muscle mass. 

“The GLP-1 drugs have been known to have an adverse effect on lean muscle mass, and therefore, the use of programs like those contained in the BODi library will help reduce the risk of losing lean muscle mass and help people maintain and gain strength while getting their weight under control and improving their overall level of fitness,” he said.

While BODi forges ahead, fortified by its vast digital fitness content and nutritional supplements, Goldston also sees the subscription health and fitness system taking center stage to meet an even bigger trend.

“I believe that the industry has truly embraced a more holistic approach to fitness,” he said. “While there is no easy fix to maintaining a healthy life, there are benefits to a balanced approach. Consumers continue to look for guidance and that is a fundamental core principle of our approach at BODi. At BODi, it’s that balanced approach that makes us unique.”

This article has been updated.

The post Inside BODi’s Plan To Become the ‘Netflix of Digital Fitness’ appeared first on Athletech News.

The Beachbody Company, the subscription health and wellness company now doing business as BODi, has entered into a definitive securities purchase agreement with institutional investors for the purchase and sale of 543,590 shares at a purchase price of $9.75 per share in a registered direct offering.

The California-based health and wellness company says the closing of its offering is expected to occur on or about December 13, 2023. The offering is expected to generate approximately $5.3 million in gross proceeds to BODi, before placement agent’s fees and other offering expenses. BODi says it will use the net proceeds for general corporate purposes.

BODi will also issue to the investors warrants to purchase up to 543,590 shares of common stock, with an exercise price of $11.24 per share, which will be exercisable six months following the date of issuance and have a term of five and one-half years following the date of issuance.

The health and wellness platform has been in the midst of an ongoing strategy to restore the brand to its former glory, but it has proven to be a rocky road. The registered direct offering follows a reverse stock split the BeachBody Company instituted last month.

“We are confident that our recently developed turnaround plan will help drive profitability, free cash flow and help to increase our cash on the balance sheet,” said Mark Goldston, executive chairman, of last month’s reverse stock split completion. “In addition to the major cost savings program we have implemented, we are aggressively developing new programs to unlock incremental revenue opportunities.”

Goldston added that BODi’s execution of its “robust turnaround plan” will put the company on the right path to regain compliance with the New York Stock Exchange’s minimum closing price requirements and “drive long-term shareholder value.”

BODi posted its Q3 2023 results in November, showing a total revenue decline — $128.3 million compared to $166.0 million in the prior year period. Carl Daikeler, BODi’s co-founder and CEO, noted that for the remainder of the year, the company would be “intensely focused” on executing its sales and marketing initiatives.

Earlier this year, the company rebranded from The Beachbody Company to BODi. Around that same time, the company was hit with a class-action suit brought forth by a former Beachbody coach targeting its multi-level marketing structure. (The company denies the allegations and, in a statement to Athletech News, said it would “vigorously defend” itself against the suit.)

Most recently, BODi established a new effort to reward its high-performing network sales partners with special bonuses, which will begin in January 2024.

The company also named author, speaker and high-performance coach Brendon Burchard its chief growth and performance Advisor.

The post Beachbody Raises $5.3M Via Registered Direct Offering appeared first on Athletech News.

The Beachbody Company, now doing business as BODi, has made two significant moves as it continues its ongoing turnaround plan — both of which the subscription-based health and fitness system says will drive profits and increase paying members.

After the health and fitness company received a deficiency letter from the New York Stock Exchange last year, with its shares parked under $1.00 throughout 2023, Beachbody’s board of directors has approved a reverse stock split of all issued and outstanding common stock at a ratio of one post-split share for every fifty pre-split shares. 

The stock split became effective on Nov. 21, with The Beachbody Company’s Class A common stock now trading on the split-adjusted basis on the NYSE under ticker ‘BODY’ as of Nov. 22.

The move underscores Beachbody’s mission to drive profitability, free cash flow and help increase cash on its balance sheet, said Mark Goldston, the company’s executive chairman. Goldston also indicated that the company is “aggressively developing new programs” to unlock incremental revenue opportunities. 

“While the execution of our robust turnaround plan will put us on the right path to regain compliance with the NYSE’s minimum closing price requirements and drive long-term shareholder value, we believe that instituting a reverse stock split is the most appropriate action at this time to address the uncertainty regarding our listing,” he said.

BODi shared its Q3 2023 earnings earlier this month, reporting revenue of $128.3 million compared to $166.0 million in the prior year period.

Can BODi Attract New Subscribers?

While Beachbody works to regain the credibility of its stock on Wall Street, it’s also zeroing in on attracting new members to BODi, its flagship subscription fitness platform.

The health and wellness company has just launched BODi Previews, a new subscription tier for consumers to sample over $59 worth of BODi content for free. BODi notes the new tier is one of its many initiatives designed to engage, drive new memberships and generate revenue.

‘BODi Previews’ allows prospects to access the health and fitness platform and sample over 120 workouts such as P90X, Insanity, 21 Day Fix and #MuscleBurnsFat, nutrition guidelines and personal development content.

BODi anticipates a “significant increase” in its conversion rate of visitors to paying subscribers since visitors can discover the perfect program based on their individual needs and preferences.

To drive even more traffic to the free sampling, a limited version of ‘BODi Previews’ will be available on YouTube.

“We believe in balancing growth with profitability in our mission of helping people improve their overall health esteem,” said Carl Daikeler, co-founder and CEO of The Beachbody Company/BODi. “‘BODi Previews’ is not only about expanding our reach; it’s about reaching more people while also driving revenue streams that support our long-term vision.”

Last month, BODi revealed its “growth game plan” to reward high-performing network sales partners within its subscription-based health and fitness system, which is expected to roll out in January 2024 and will award star network sales partners with special bonuses.

The new incentive system follows a class-action lawsuit condemning Beachbody’s multi-level marketing structure, where an ex-coach alleged that the company misclassified coaches as independent contractors instead of employees — an allegation the company has denied, noting plans to “vigorously defend” itself against the suit.

The company also appointed Brendon Burchard, author, speaker and high-performance coach, as its chief growth and performance advisor. In his new role, Burchard is helping to roll out GrowthDay, a personal development app that he founded for the BODi network to sell to prospective customers.

BODi has also overhauled its content development strategy, streamlining its content into its digital fitness library and moving GrowthDay to its new mindset channel. A newer monthly digital and nutrition subscription bundle, “The $99 Rebel,” was also introduced as a budget-friendly option for new subscribers. 

The post Beachbody Implements Stock Changes, Adds Free Subscription Tier appeared first on Athletech News.

BODi, formerly Beachbody, is unveiling a new “Growth Game Plan,” an effort in its turnaround strategy that rewards high-performing network sales partners within its subscription health and fitness system.

The plan rolls out in January 2024 and will provide stand-out network sales partners with special bonuses. The new initiative follows a class-action lawsuit criticizing The Beachbody Company’s multi-level marketing structure after a former coach alleged that the company misclassified coaches as independent contractors instead of employees. The Beachbody Company (BODi) denied the allegations in a statement to Athletech News, saying the company would “vigorously defend” itself against the suit.

In another strategic move, BODi named Brendon Burchard, author, speaker and high-performance coach, as its chief growth and performance Advisor. Burchard will assist BODi’s network boost performance and add GrowthDay, a personal development app that Burchard founded. The app will be available in November for those in the BODi network to sell to prospective customers.

Additionally, BODi has given its content development strategy an overhaul, streamlining new content into its digital fitness library and moving GrowthDay to the core of its new mindset channel. There is also a new monthly digital and nutrition subscription bundle, “The $99 Rebel,” created as a more cost-conscious offering for new subscribers. 

The new program is designed so partners can create a highly scalable business, said Carl Daikeler, co-founder and CEO of BODi and The Beachbody Company. 

“Our success is deeply connected to the success of our incredible network of independent partners,” Daikeler said. “They are instrumental to helping the company influence healthy lifestyle change while developing their own business in the process.”

BODi Looks To Chart a New Course

BODi, facing ongoing challenges, received a deficiency letter from the NYSE last fall, with shares of Beachbody sitting under $1.00 throughout this year. The subscription health and wellness company showed a total revenue decrease of 7% in its Q2 2023 earnings and appointed Mark Goldston to executive chairman in a move to course-correct the company.

Goldston’s appointment is vital to Daikeler’s plans to move BODi ahead, with Daikeler telling investors in August that the new executive chairman had been a pro at turning around companies in less-than-desired situations. 

“We’ve constructed a powerful turnaround plan for the company and we will be vigilant in our focus and execution as we move our way through the priority list to help transform BODi into a very profitable, cash-rich company,” Goldston assured investors on BODi’s last earnings call. 

He added that BODi isn’t experiencing a scale issue — pointing out that it’s one of the largest digital fitness companies — but that it needs higher-quality revenue streams.

Earlier this month, the company filed a prospectus related to the offer and sale of a $50 million mixed securities shelf.

The post BODi Unveils New Sales Strategy To Grow Brand appeared first on Athletech News.

The Beachbody Company, recently rebranded as BODi, is still in the midst of a strategic revamp according to its Q2 2023 earnings results, demonstrating a total revenue decrease of 7%, with $134.9 million compared to $179.1 million in the prior-year period. 

While the first quarter marked a significant transition for the subscription health and wellness company, BODi says its second-quarter results are in line with the fitness industry’s seasonality. Now, the company is banking on Mark Goldston’s recent appointment as executive chairman, confident that he will restore the at-home fitness and wellness brand back to its former glory.

Goldston, who assumed his role approximately two months ago, had agreed to compensation in the form of equity stock options.

“This transaction was so important to my determination to turn around the company and my enthusiasm for partnering with an executive who has done this kind of turnaround many times before,” Carl Daikeler, BODi’s co-founder and CEO, told investors during Q2’s earnings call. “I forfeited eight million common shares that I personally own to minimize dilution of Mark’s equity grant to the rest of the shareholders.”

Goldston says BODi’s goal is to prioritize profitable revenue, not growth, at all costs. 

“As one of the largest digital fitness companies today, scale is not the primary issue for this company,” Goldston told investors. “What we need to develop are higher quality revenue streams that generate healthy contribution margins to increase the bottom line… We’ve constructed a powerful turnaround plan for the company and we will be vigilant in our focus and execution as we move our way through the priority list to help transform BODi into a very profitable, cash-rich company.”

Goldston reminded investors that BODi is poised to make a significant comeback, pointing to its comprehensive digital fitness library and lineup of nutritional products, as well as a customer database containing over 14 million former customers – ones that he says can be activated easily and “profitably” via “aggressive win-back programs.”

BODi has also restructured the financial covenants in its financing agreement and paid down its debt level by $15 million to approximately $35 million.

“We are excited about the trajectory of BODi’s transformation and are proud of our team’s hard work to get us where we are today,” said Daikeler.

BODi Looks to Amazon as Growth Opportunity

BODi also reports that its conversion ratio of visitors to subscribers increased by 27% in Q2 over Q1, which the company says is driven by audience targeting and messaging enhancements. The health and fitness company will also pilot additional strategies, including launching a new free preview tier, in Q3. 

As for BODi’s nutrition portfolio, the company will expand its products on Amazon, identifying this avenue as a significant growth opportunity without undermining its other sales channels. Nutrition revenue was $64.6 million in Q2, down 13% from $74.1 million in the prior quarter, but BODi says it sold more digital and nutritional bundles, which resulted in higher allocations of revenue to digital.

“We’re in the process of selecting an experienced partner with best-in-class capabilities that will help us drive growth on Amazon with proven best practices,” Daikeler said.

Digital revenue was $65.2 million, up from $64.8 million in Q1, but had decreased from $78.0 million in the prior-year period. Another strategy for attracting fitness enthusiasts is to create a complimentary preview layer of digital content, which BODi says will enable its database activation team to convert visitors into paying digital and supplement subscribers.

While overall digital subscriber count decreased by 12% to $1.53 million in Q2 from Q1 of 2023, the new BODi digital premium subscription platform shows promise, growing subscribers by 77% to $711,000 in Q2 over Q1.

Connected fitness revenue was $5.1 million, down 15% from $6 million in Q1, although BODi delivered 5,500 bikes versus 4,700 bikes in Q1, a 17% increase, which Marc Suidan, CFO, says reflected a planned promotion during Q2 for BODi’s partners. 

As for what the future holds for BODi, Goldston and Daikeler encourage patience. 

“The next few months will be a period of positive and deliberate transformation,” Goldston said. “So I’m going to ask that you please be patient with us as we tap into new revenue streams, new audiences and new marketing tactics that the company has not previously utilized. I feel great about the prospects for a successful turnaround at BODi and I’m looking forward to profitable growth ahead.”

The post Beachbody Sees Revenue Drop in Q2 but Encouraged by Turnaround Strategy appeared first on Athletech News.

The Beachbody Company, which now does business as BODi, has amended certain financial covenants and other terms of its $50 million term loan with Blue Torch Capital.

The decision to amend the terms of the revenue covenant is meant to better align the loan with the fitness and wellness company’s profit and free cash flow objectives, according to Carl Daikeler, Beachbody co-founder and CEO.

“The amendments reduce the revenue minimum to quarterly revenue of $100 million for each quarter through March 31, 2024, then to $120 million for each quarter thereafter,” Daikeler said. “These changes reflect the company’s focus on becoming cashflow positive.”

Daikeler has told investors that as the health and fitness company has undergone a major transition with its new name, it’s been encouraged by Google data that revealed search traffic significantly increased as consumers searched for BODi, indicating increased brand awareness. 

Mark Goldston, Beachbody’s new executive chairman, said the company’s new business model is driven by its turnaround plan, which is designed to maximize profitability and cash generation from the company’s multiple revenue streams versus growth “at all costs.”

“We are committed to creating a revenue mix with higher profitability channels that produce increases in cash as a priority,” Goldston said. “The Blue Torch team has been great to work with while amending the terms of our agreement to reflect their support of these objectives.” 

Goldston was appointed to his new role in June to help guide the fitness company’s transformation and unlock growth opportunities. 

“Given our existing cash position and progress over the past 6 quarters, we agreed to prepay $15 million of the term loan’s principal and increase the minimum liquidity amount to $20 million through March 31, 2024, and then to $25 million thereafter,” said Marc Suidan, Beachbody’s chief financial officer. “We believe the net result is a very positive development. The amendments align with building a profitable and sustainable business and provide us with the flexibility to put our turnaround plan into place to focus on cash generation.”

A class action lawsuit was recently filed against the southern California-based company, alleging that its multilevel marketing model exploited workers in the Golden State. Beachbody told Athletech News it would vigorously defend itself against the allegations and pointed to California’s updated contractor law and network marketing distributor exemption.

More recently, BODi introduced a new workout program that targets the growing primal fitness trend, which Pinterest Predicts identified as the fitness trend of 2023. The brand has also pivoted towards the importance of mental health offerings as part of its “health-esteem” approach.  

The Beachbody Company’s next earnings report is expected Aug. 8.

The post Beachbody Amends Terms of $50M Loan Amid Profitability Push appeared first on Athletech News.

BODi, recently rebranded from the famed Beachbody name, has tapped celebrity trainer Amoila Cesar to bring a primal workout, “Chop Wood Carry Water,” to fitness consumers. The latest fitness offering is in line with a Pinterest Predicts report that revealed primal movement is anticipated to be the fitness trend of the year for 2023.

BODi says the rugged name is inspired by the Zen proverb that reinforces the benefit of patience and consistent repetition, leading to mastery. 

The new Chop Wood Carry Water fitness program is designed for all fitness levels, allowing members to improve strength and mobility while reducing pain. The goal is to provide freedom of movement that will bring fitness enthusiasts back to the mobility of their youth.

The primal fitness offering concentrates on strength building using functional movements that replicate those used in real life. BODi says that as fitness enthusiasts move through the program, they quickly see how their bodies improve and adapt. 

“Since the pandemic, we’ve found that people are less focused on their visible transformation from a one- or two-month commitment and (are) far more enthusiastic about building their confidence, strength and overall sense of physical freedom of movement,” said Carl Daikeler, co-founder and CEO of BODi and The Beachbody Company.

Daikeler added that BODi has been developing the Chop Wood Carry Water program with Cesar for over a year and has tested the primal fitness program with groups of all skill levels. 

“The results could not be more exciting,” Daikeler said. “We saw the predictable weight loss and muscle tone, but these movements are helping people feel more agile and newly empowered to move through life like they haven’t in recent memory – and for the participants in their 40s and above, they felt empowered and able to move with a pain-free dexterity that they hadn’t in years.”

BODi’s new program offers 20 strength and agility-building workouts that combine seven formats and schedule options, so fitness consumers can select a program that works best for their needs. 

Cesar, who has trained celebrities and NBA superstars, says that primal movement has become a “core principle” in his health journey and an “amazing tool” as he trains his clients. 

“I have designed this program to reflect the importance of the mind-body connection that they project,” he said. “Chop Wood Carry Water represents the habits and rituals on which I center my day: repetition and the pursuit of mastery.”

The primal program, $49.95, is now available with an existing BODi membership.

Can a Primal Program Help BODi Rebound?

Since it left the Beachbody name behind, BODi has been moving away from the standard diet and fitness offerings, instead moving towards optimal wellness and, more importantly, what it calls “health esteem.”

Daikeler said he grew tired of what he views as an old playbook that the fitness industry uses to convince consumers that they’re never good enough and always need another goal to achieve. 

“That’s called permanent dissatisfaction,” Daikeler told Athletech News in an exclusive interview in April.

BODi also introduced online mental health classes earlier this year as part of its health esteem mission.

As the health and fitness company looks to redefine wellness, it’s staring down a class action lawsuit that targets Beachbody’s longtime multi-level marketing model.

The company has also faced stock challenges, with shares of BODi down nearly 37% in the past six months. In the first quarter of 2023, BODi reported a revenue decline of 27%, with total revenue of $144.9 million compared to $198.9 million in the prior-year period.

BODi’s next earnings report is slated for August 14. 

The post BODi Taps Into Primal Fitness Trend With Latest Workout Program appeared first on Athletech News.

The Beachbody Company, which now does business as BODi, has created a new role to drive transformation and maximize profitability, appointing Mark Goldston to the position of Executive Chairman of BODi’s board of directors.

Goldston will partner with Carl Daikeler, BODi’s co-founder and CEO, to guide the transformation of the fitness and wellness company, driving profitability and unlocking growth opportunities. 

The news of the appointment follows a class-action lawsuit recently filed against the company regarding employment practices. The suit criticizes the health and fitness company’s multilevel marketing business model, alleging it exploits California workers.

BODi, pointing to California’s updated contractor law and network marketing distributor exemption, has told Athletech News that it will vigorously defend itself against the allegations.

Goldston, who agreed to receive compensation in the form of options, currently serves as chairman and CEO of The Goldston Group, a firm specializing in strategic advisory services, venture capital and investments. He is also general partner of Athletic Propulsion Labs, a high-end performance athletic footwear company. 

As Goldston settles into the new role, BODi confirms the chairman position will be retired, and that Daikeler will continue serving as a director and CEO, remaining BODi’s controlling shareholder.

“I felt strongly about pursuing Mark given his unique skills and experience, and I am thrilled to welcome Mark to BODi as our new executive chairman,” said Daikeler. “I am incredibly grateful that Kevin Mayer, a director on our board and a longtime friend to Mark, introduced us with the vision that the company and its shareholders could benefit from Mark’s capabilities.”

Daikeler added that his goal is to leverage Goldston’s strategic insights, particularly his experience with public companies. 

“I believe so strongly in our synergy that in order to get this deal done, I personally forfeited a portion of my shares of the company to help partially offset the equity compensation offered to Mark with his appointment,” Daikeler said.

Goldston said he’s fully committed to maximizing BODi’s business model, helping lead its transformation and monetizing its “significant untapped potential.”

“I am so confident in the company that I have elected to take all of my compensation in the form of options, aligning my interests with shareholders, and I look forward to collaborating closely with Carl, the leadership team, and the entire organization to achieve our shared goals,” he said.

In an earnings call last month with investors, Daikeler classified the first quarter of 2023 as a major transition for the health and fitness company. Daikeler said he was encouraged by data that revealed Google search traffic was up nearly 290% in Q1 over the prior year as consumers have searched for “BODi.”

The post Beachbody Names Mark Goldston to Newly Created Exec Chairman Role appeared first on Athletech News.

The Beachbody Company held its first earnings call for 2023, a quarter that CEO Carl Daikeler said marks a “major transition” for the health and fitness company, which recently rebranded to BODi.

The company finished upgrading its subscription platform and simplified its business model, shifting to monthly content organized into three-week blocks with goals and objectives, having launched BODi in March. The single subscription plan better aligns with the company’s rebranding as it incorporates a mental health focus into its offerings.

Despite the significant changes, Daikeler believes BODi has much more to accomplish and that the company’s expanded BODi subscription platform is the “biggest and most important innovation” since the company’s inception.

Daikeler revealed that BODi is taking a more conservative view of its Q2 outlook, remaining assured that the company will achieve EBITDA profitability on a quarterly basis by the end of the year.

“I’m confident that this will be our next multibillion dollar opportunity to drive long-term sustainable growth,” the BODi CEO said. “We’re in the early stages of promoting this new premium subscription but I can report that we are already seeing promising customer demand based on the engagement and renewals of existing customers.”

Here are some key takeaways from The Beachbody Comapny’s first earnings call of the year, as Daikeler discusses key insight from Google search data, a looming recession and how he thinks weight loss medications like Ozempic can be a golden ticket for the company:

Q1 2023 results at a glance:

• Total revenue was $144.9 million compared to $198.9 million in the prior-year period, a 27% decrease.
• Operating loss improved to $27.4 million compared to an operating loss of $74.4 million in the prior-year period.
• Net loss was $29.2 million compared to a net loss of $73.5 million in the prior-year period.
• Adjusted EBITDA was ($0.9) million compared to ($19.1) million in the prior-year period.

BODi subscriptions

Daikeler revealed that BODi surpassed 500,000 subscriptions as of April 30, approximately double its total at the end of Q4 2022, an increase he says was driven by digital renewals and upgrades.

“The early strength in renewals demonstrates customers are recognizing that our pricing represents tremendous value associated with our rich catalog of over 120 programs,” Daikeler said. “I mean, everybody knows P90X, Insanity, and 21 Day Fix, but also our new BODi programming and the monthly release of new BODi blocks for general fitness consistency.”

Google searches

Daikeler pointed to data that revealed Google search traffic is up 287% in the first quarter over the prior year, as interested consumers have been looking up “BODi” using the search engine.

“Since the repositioning to BODi just in March, web traffic to our sites increased by 20% over February,” Daikeler said.

Plans to drive customer acquisition

Now that BODi and its offerings have been introduced, the company will focus on the execution of its go-to-market strategy, with Daikeler saying it’s time to “go on the offense.”

Since the company’s partner network forms the majority of sales generation, BODi has implemented new incentives to align its partners with its goal of driving subscriptions.

The company will host its annual Partner Summit in June, typically attended by around 10,000 partners. Daikeler said it will be an “immersive training” of the company’s network to align partners with its strategy and sales tactics to serve the “massive TAM of over 150 million people who are overweight or obese in the U.S.”

As for direct media acquisition, Daikeler confirmed that the company is working with an experienced social media and marketing agency to expand the reach of its message into TikTok and YouTube. Last month, BODi launched technology to communicate with customers through its app and text messages to boost customer engagement and build more targeted email marketing campaigns.

BODi’s view on a looming recession

When an investor brought up recession risk and cited IHRSA research that showed the fitness industry declined in terms of memberships during the 2008-2009 recession, Daikeler responded that BODi is a “very cost-effective alternative to the gyms.”

“We think we’re well positioned for that with our holistic approach to fitness, nutrition and now, positive mindset masterclasses,” added Daikeler.

The BODi CEO and co-founder noted that his fitness and nutrition company has existed for 24 years in some form or another, demonstrating its longevity.

Daikeler said: “If you look around the industry of nutrition and fitness solutions, there aren’t a lot of companies that have managed to have that kind of stamina and innovate over and over again and this launch of the health esteem category and the BODI subscription. This will be our fifth big innovation as a company. We’ve run this playbook before.”

Could weight loss drugs be an opportunity for BODi to shine?

Daikeler sees the surge in weight loss medication as an opportunity for BODi.

For weight loss medication patients to have long-term success, they’ll need an opportunity to overhaul their lifestyle, which Daikeler says BODi can help provide with its tools, especially those focused on mental health.

“We are the holistic fitness, nutrition and positive mindset resource for people who need to change their lifestyle at the same time that they contemplate prescription medication,” he said. “So we’re really in this ideal position. It feels like everything that we’ve done for the last 24 years has led up to this moment.”

The post BODi CEO Says Company in ‘Early Stages’ of Rebrand After Q1 Revenue Decline appeared first on Athletech News.

With May just warming up, BODi is celebrating Mental Health Awareness Month by launching new Mindset Master classes, an extension of the brand’s “health-esteem” platform. 

Petra Kolber, vice president of personal development and mindset for BODi, says that as more people become aware of the importance of mental health in a post-COVID era, it’s essential to focus on creating a resilient mindset to guide people through the ups and downs of life.

“While BODi’s Mindset content is not a replacement for professional mental health services, it is our hope that it can shed some light on how to begin taking the steps toward making positive changes by celebrating where you are today while emphasizing how a powerful an unwavering belief in yourself and your abilities to face the more challenging times, can make a lasting impact on your health esteem and mental well-being,” Kolber said of the latest offering.

The Mindset content library is available as part of any BODi membership. It features Mindset Master classes and weekly content with industry experts, including Kolber. 

Jonathan Fields, award-winning author, executive producer and host of two top-ranked podcasts, and Maria Sirois, psychologist, teacher, facilitator and author, will also offer expert insight for Mindset Master Classes. 

According to BODi, its multi-video Mindset Master Class Series includes:

• “Happiness Habits” with Petra Kolber
• “The Good Life” with Jonathan Fields
• “Calm Your Mind” with Maria Sirois
• “The Perfection Detox” with Petra Kolber

Bodi says other Mindset Master classes and experts are arriving this summer, including classes with Kelly McGonigal, Ph.D., TED Speaker and best-selling author, who brings a new Mindset Master Class based on her book “The Willpower Instinct.” Justin Michael Williams, a meditation teacher, author and Grammy-nominated recording artist, will also have a class where he will discuss meditation in a new light.

“What’s so unique about the addition of the Mindset channel to the BODi platform is its integration with our flexible fitness and nutrition programs,” said Carl Daikeler, co-founder, chairman & CEO of BODi. “Bringing the benefits of physical health together with a resilient and growth mindset, resulting in a strong self-esteem, is a combination which defines the category of health esteem.”

BODi is rewriting the script of what it means to be happy & healthy 

In a recent interview with Athletech News, Daikeler declared that “Beachbody is dead,” referring to the rebrand from Beachbody to BODi. 

While the household name for fitness and nutrition introduced the world to P90x, Power 90, Slim in Six and Hip Hop Abs, the company has overhauled its image to move away from what Daikeler calls an “old playbook” – one that keeps consumers in a state of “permanent dissatisfaction” where they are never good enough and always have something more to achieve. 

The lightbulb moment came when Daikeler pondered the example of certain health and fitness frameworks set for his children, he told ATN.

Can ‘health-esteem’ bring positive earnings? 

Daikeler’s company has faced challenges, with Q4 2022 financials revealing that in the twelve months ending December 31, 2022, total revenue dropped 21% compared to the same period in 2021 and 8% below its pre-COVID baseline. As Daikeler told investors on an earnings call, “2022 was a demanding year,” as the subscription health and wellness company received a deficiency letter from the New York Stock Exchange last fall.

Still, BODi is banking on building not just self-esteem, but health-esteem, which includes its new mental health classes.

“We made a decision last year that we were going to pursue a completely different category, one that we call health esteem, that combines immediate appreciation of who you are with a complete lack of a requirement to do anything in order to improve how you feel about yourself and be worthwhile in the world,” said Daikeler.

The health and wellness company is expected to report earnings on May 8 for Q1 2023. 

The post True to New Identity, BODi Launches Online Mental Health Classes appeared first on Athletech News.

Athletech News sat down with the spirited and candid founder and CEO of Beachbody, Carl Daikeler, to hear his perspective on where the industry is headed and why his company is making dramatic changes in its business model. What he told us, though at first surprising, speaks volumes about some of the challenges facing fitness players seeking to make more people fit and healthy.

“Beachbody is dead,” said Daikeler, co-founder, chairman and CEO of BODi, formerly Beachbody. 

He went on to explain. “We’ve had a mission statement for 24 years, which is to help people achieve their goals and lead healthy, fulfilling lives. And the programs that we’ve created, famous ones like P90x Power 90, Slim and Six Turbo Jam, Hip Hop Abs—I could list 100 of them—were the first of their kind to give people basically a legit fitness narrative that you might get from a trainer, but right in your own home, and on a finite timeline. We had 100 workouts that help you achieve your goals in 7 days, 21 days, 60 days, 90 days. It was awesome. And it helped people achieve their goals.” 

Then, suddenly, the company made the decision to change its name, and announced last October the platform would now be called BODi, a moniker it had been considering for its premium subscription.

When asked why such a drastic move, Daikeler’s response was immediate and candid.

“Because, not only is Beachbody dead, but the fitness and diet industry is largely dead. The industry continues to execute an old playbook that needs to convince people of their imperfection in order to engage them. Play one is you’re not good enough, you need to lose weight, so join my gym. And play two is, you are never good enough. There’s always something more to achieve. That’s called permanent dissatisfaction.” 

Daikeler’s aha moment came when he realized that this is the example he’s setting for his kids, ages 14 and 23.

“When we come up with programs, I think about what I want them to see as the legacy of this business that we’ve built. So I knew we had to flip that script.” 

Unlike many fitness executives, Daikeler didn’t come into this business through his athletic background, workout discipline or secret formula for helping get others in shape. If anything, it was the absence of these characteristics that attracted him to the space.

“I’m not a fitness person, I don’t like working out. I don’t like eating well. I was a quasi-athlete in school, but I wasn’t disciplined. I have no problem not exercising. I didn’t love it enough to sacrifice sleep for it unless I had some vacation or something coming up. But what would be psychologically very motivational for me was if I had a timeline. Going from day one to day 90, for instance.” 

This became the genesis of the business, and the part of the Beachbody mission that, Daikeler said, the company “ran the hell out of for 24 years.” The company has grown from its flagship P90x product to a collection of almost 100 digital exercise programs, a nutrition business whose core product Shakeology represents more than half of company sales, connected fitness programs that include a bike, and other products and services. The company went public in 2021 through a SPAC, or special purpose acquisition company, and is now traded on the New York Stock Exchange. Last year the company had 2.5 million subscribers and sales of almost $700 million. 

In the latter part of the last decade, two trends started to eat away at the Beachbody business model. The first was the digital revolution in media. Beachbody’s original strategy was to sign up a customer and ship him or her a box of DVDs with a note wishing them good luck with the 60- or 90-day program. By 2016, the company could no longer put off the shift to digital, which also shifted the customer relationship to a more continuous dialogue.

The second trend that made Daikeler question what Beachbody was doing was body positivity.

“I started to see some problems materialize, not just in our business model, but in the surroundings, people not responding with enthusiasm to what they used to, which were the ‘before’ and ‘after’ photos.”

Although Daikeler claims that intrinsically there were health benefits behind those photos, those were overpowered by the negative reactions, and eventually the connotation of the name Beachbody began to undermine the company’s ability to deliver on its mission. Daikeler recounted searching Google for Beachbody, and instead of seeing his company listing, he would see Kim Kardashian “flaunting her beach body in Malibu,” indicating that the term was starting to take on a newer, narrow definition, not the one originally intended by the brand.

“It started to limit and, in fact, suppress our ability to achieve our mission statement.”

For the last six years, the company has been struggling to evolve from a company that was great at the first part of its mission, that of helping people achieve their goals in a fixed period of time, to one that also delivers on helping people lead healthy, fulfilling lives, which it feels it has failed on.

The company’s recent financial performance indicates it might not be a bad time for a strategy shift. In the twelve months ending December 31, 2022, total revenue dropped 21% compared to the same period in 2021 and 8% below its pre-COVID baseline. 

The missing element, according to Daikeler, is to help people feel better about themselves and to stop participating in the permanent dissatisfaction business.

“We made a decision last year that we were going to pursue a completely different category, one that we call health esteem, that combines immediate appreciation of who you are with a complete lack of a requirement to do anything in order to improve how you feel about yourself and be worthwhile in the world.”

On March 2, Beachbody added an entire new layer to its platform of positive mindset to help people love themselves. From moment one, before the first workout, it helps you, among other things, figure out how to eat more dessert, how to enjoy all the food groups that you want, and how to embark on a fitness program that lets you “have a real life.”

The health esteem routine will include masterclasses from authors and positive psychology experts to help people feel better about themselves and the world in general. The idea, says Daikeler, is that once you you’ve repaired your self-esteem and appreciate yourself, you can choose the right workout or nutrition program that serves you and helps you, not fixes you in a judgmental way.

“We’re not telling you that you need to lose 50 pounds. We’re saying we can get you strong enough, get your metabolism going, with maybe 15 workouts a month, which we call a body block. Do five workouts a week for three weeks, take the fourth week off or go walking or whatever. But give yourself the freedom to live life, have a vacation without thinking ‘I gotta stay on my program.’” 

Daikeler recalls going into a gym that had painted across the wall the slogan “Proud, but never satisfied.”

“Can you imagine? I thought, ‘I need to get out of the industry as quick as possible if that is the mentality that we are promoting, never satisfied, never pleased with myself, which is why you have suicide, overeating, escapism, people who are overdoing plastic surgery, overtraining, and body dysmorphia.’ I refuse to participate in it anymore.”

He may have a point. Forbes publishes a list of the top New Year’s health resolutions each year. In 2023 the number one New Year’s resolution wasn’t lose weight, improve my fitness, or improve my nutrition. It was improve my mental health. 

Daikeler feels there is a lot of virtue signaling going on.

“The tech companies are all claiming that they’re not in the imperfection economy. But if you wear a monitoring device, and it tells you if you’re imperfect today and didn’t close your rings before midnight, that’s stress-inducing.”

“There are gyms that say they don’t allow judgment, but if you bang the weights, or grunt, they sound an alarm. What is that? If I make too much noise working out, the whole room is gonna judge me now?”

“It’s not enough to just change the name, you need to really change the direction of the company. And, can they take the weight watching out of the company by just taking it down to the acronym of WW? It’s still weight watching, right? How about self-esteem watching? What about feel-good watching? What about what-do-you-need-as-a-human-being watching??”

When asked how BODi will break through all the industry noise and walk the walk, not just talk the name change talk, he quipped: “It’s easy. I’m no longer in that business. You probably don’t even want me in your publication.”

“‘Do you feel good?’ is not a binary question, not black and white, it’s a continuum. And that’s what’s wrong with the industry we call the imperfection economy. It’s torturing its customers, telling them they’re not good enough. Then never telling them they are good enough. That is a recipe for a psychological impossible-to-escape cycle.”

Daikeler makes it clear that there’s nothing wrong with looking great, and if it’s a byproduct of feeling great, then even better. And the only way to serve the almost 150 million people in North America who are overweight or obese is to get out of the abs business and into the feelings business.

“Let us be this sunshine in your life, the thing that feels great, not this nagging voice that’s feeding into the judgment, the criticism, and the competition. Instead, this voice will say ‘Hey, back off, you need to take a day off to get your head straight. Because you’re in here for the wrong reason, man. Like, come back in when you’re doing this because it feels so good to push that hard.'”

“And then when it’s 5 a.m. and you’re lying in bed, you’re thinking, ‘I gotta get down there because I love the way I feel about this. I love the way I feel about myself. I love that I love myself enough to do this.'”

“I f#*@-ing rock.”

This article originally appeared in Athletech’s State of Fitness 2023 Insider’s Outlook report. Download the report here.

The post How BODi is Flipping the Script on the ‘Imperfection Economy’ appeared first on Athletech News.

Beachbody, the fitness company known for health shakes and some of the world’s most popular fitness programs, has announced a significant rebranding with the launch of BODi, which the company says rejects the legacy fitness and diet industry playbook. Instead, BODi aims to promote a positive, healthy lifestyle that encourages inclusivity and discourages self-criticism.

The company says it found inspiration to change after witnessing an increase in mental health challenges due to the pandemic, as well as the realization that 74% of Americans are still overweight or obese, despite efforts by the fitness industry.

“The transformation of our brand will inspire a larger shift across the entire industry, which largely ignores the emotional and mental consequences of its traditional business model,”  said Carl Daikeler, co-founder, chairman, and CEO of BODi. 

“Instead of promoting a healthy lifestyle based on self-criticism, we want to help people appreciate their intrinsic value, so they are pursuing their health and fitness goals out of affection for themselves, not judgment or comparison to any ideals,” Daikeler continued.  

“This category is called Health Esteem. This is where the inspiration for our rebrand came from and what the entirely redesigned BODi platform supports. It is a very important moment for the industry, because it opens a category that will appeal to the 150 million adults in the United States, many of whom are alienated by the exclusivity of the legacy industry’s playbook.”

BODi’s CEO believes the health esteem category will open significant net new demand among those who have felt rejected by the legacy fitness and nutrition industry.

“At the end of the day, what we’re most concerned with is helping everyone feel seen and appreciated with disregard to size or shape, and in doing so, help them achieve their version of a healthy fulfilling life,” he tells Athletech News.

“If that brings more people to BODi, then that’s great because it means more people are not only improving their physical health, but their self-esteem as well. We want as many people as possible to benefit from our personalized, comprehensive and effective solutions that enhance their individual lifestyle preferences.”

As part of the reintroduction, an app and fitness program called ‘For Beginners Only’ has been unveiled. It will provide fitness enthusiasts of all levels with an “approachable starting point” for their wellness journey. BODi employs a block periodization training structure that consists of 30-minute workouts five days a week for three weeks, followed by an ‘UP’ week in which the member can scale back workouts, focus on recovery, and reflect on progress.

A new channel for monthly Mindset master classes has also launched.

Perhaps most daring is BODi’s “You Will Fail” marketing campaign. A 60-second spot was created in-house, and, as Daikeler points out, the campaign is about success, as confronting the reality of setbacks is familiar to everyone.

“While the industry at large is quick to offer solutions to help people get healthy – in general, it is very judgmental of people who encounter struggles. That alienates the very people who need help the most,” Daikeler tells Athletech News. 

“Instead of expecting our customers to “just figure it out,” we take it on with them – acknowledge that it’s not easy for everyone, and provide recovery tools to help people not see a setback as failure, but as a reality which is simply part of the journey. It’s so important to acknowledge that failure is not defeat. Everyone experiences some kind of failure in their life at one point, but the promise that they can confront and overcome that failure when they have the right tools and a flexible approach is what resonates with people.”

Q4 2022 Results

Daikeler referred to 2022 as a “demanding year,” and said BODi delivered fourth-quarter revenue in line with expectations. The fitness company reported total revenue decreased 31% to $148.2 million compared to the prior year.

Last fall, the California-based subscription health and wellness company received a deficiency letter from the New York Stock Exchange (NYSE). BODi has made moves to consolidate its operations into a single platform to centralize its technology, marketing, and content investments. BODi said it reduced its nutrition SKUs and bundle configurations from 190 to five.

The fitness company also confirmed it doesn’t foresee the need for additional capital and that its plan to simplify and streamline is working.

“The business implications of these changes are compelling. This consolidation simplified what our network of BODi partners offer. We used to call them Team Beachbody Coaches, now we call them partners,” Daikeler said on BODI’s recent Q4 earnings call.

BODI’s CEO added that this approach allows for the field to spend less time training teams and instead allows them to focus more on helping people engage with the platform. 

“That dramatically increases their income opportunity, which should in turn attract more people to sign up to be BODi partners,” he said.

Pricing changes & subscriber growth 

In Q4, which saw shares drop after the release of Q3 results, digital revenue decreased 16% to $68.7 million, and digital subscriptions decreased 23% to 2.0 million.

BODi introduced updated pricing last September, adjusting the premium app to $179 annually from $298. Most of BODi’s existing subscribers are enrolled in the basic BOD program at $120, reported Marc Suidan, CFO. 

Those members will then transition to the $179 BODi platform as their subscription is renewed – and the company says it hasn’t received pushback from its partner network.

“Since we launched the new BODi pricing in September, our BODi subscriber file size has been growing in a healthy way. So while our overall digital subscriber base in Q4 contracted, BODi is growing. Additionally, we are finding that BODi subscribers have a much higher attach rate,” Suidan said.

Expanding the market reach by focusing on feeling 

BODi’s leadership said the company spent 2022 considering those who have been left behind by the traditional fitness and diet industry, noting that the majority of fitness consumers rejected the notion that they are only good enough if they lose weight.

BODi was surprised by the success of their 4 Week Gut Protocol and Fire and Flow programs, which concentrate on how a consumer feels instead of just fitness results.

“It became clear to us that our transformation model of P90X and INSANITY could be significantly complemented by an ongoing plan that focuses on how people feel today so they stay engaged in the process and appreciate their sense of well-being along the way,” Daikeler said. “This represents a significant business opportunity for us because the data is clear that the legacy industry is failing at this.” 

By focusing on self-esteem, members will gain a sense of happiness – which many others in the fitness industry have overlooked, said the company.

“This is what’s been missing from the model, a comprehensive solution that fits with real life, that delivers happiness on day one, not just physical results at the end of a program,” Daikeler noted.

BODi promotes dessert as its most important strategic initiative

BODi execs said they were “disappointed” with nutrition revenue at $75 million, down 23% year-over-year, but that it plans to turn things around.

BODi confirmed its expanding Shakeology to become the first superfood nutrition shake and now the world’s first superfood dessert. 

“A smart dessert, if you will, with hundreds of recipes that take advantage of the incredible flavor variety of the Shakeology product line,” Daikeler said of the dessert initiative, adding that the healthy desserts represent a $48 billion market opportunity for BODi. 

“There are tens of millions of people who may not be ready to start one of our fitness or eating plans, but who will absolutely take the logical first step of swapping their normal dessert choice for a Superfood Dessert that actually helps them lose weight and makes them feel great.”

The fitness company confirmed that the healthy dessert alternative would be BODi’s largest and most important strategic initiative. However, as BODi points out, the superfood dessert is not a new product, and there are no additional product development costs.

Payment simplification

Daikeler shared that other operational improvements are in the works this year, including simplifying the digital experience by “reducing clicks at checkout” and adding payment options for PayPal and Apple Pay later this year.

Connected fitness

BODi reported connected fitness revenue decreased 87% to $4.8 million, and approximately 3,700 bikes were delivered in Q4.

“Our $50 a month bundle for the bike, and the BODi subscription continues to be our most popular bike skew,” said Suidan. However, he still believes the company needs to create a greater awareness of its connected fitness offering.

“Starting this month, as more users transition to the BODi app, those subscribers will view the bike workout options, making it easier to market this offering to them,” he shared.

For the first time, the majority of BODi subscribers will be exposed to the biking content, which used to be behind a paywall. With the visibility of the trainers participating in rides, BODi said it expects demand for this offering to be incremental. 

While BODi’s connected fitness gross margin continues to be negative, the company said it’s leveraging its bike studio bundle to drive bike sales without “competing in price wars.” 

As Suidan points out, BODi’s data shows that bike consumers are “very engaged in workouts” and have a considerably lower churn rate.

A BODi subscription unlocks BODi Blocks and Mindset content, workouts, and programs from notable trailers such as Shaun T, Autumn Calabrese, Joel Freeman, and Jericho McMatthews. 

BODi is betting big on a holistic approach 

BODi said it expects subscription declines for the year but is resolute in attracting “higher value customers” and believes its new health esteem platform will result in more robust consumer engagement and improve retention over time.

“We are excited by the preliminary results, and this is the foundation to bring us back to revenue growth,” Suidan said.

The post Major Rebrand: Beachbody Transforms to BODi, Announces Q4 2022 Results appeared first on Athletech News.

California-based subscription health and wellness company Beachbody has announced it received a deficiency letter from the New York Stock Exchange (NYSE).

The letter notified Beachbody that the publicly traded fitness company is not in compliance with applicable price criteria in the NYSE’s continued listing standards, adding that the average closing price of the company’s Class A Common Stock was less than $1.00 per share over a consecutive 30 trading-day period as of November 22.

In a press release, Beachbody said it intends to respond to the NYSE within ten business days of receipt of the letter to “cure the deficiency.” The digital fitness and nutrition company now has six months to bring its share price and average share price above $1.00, according to NYSE’s rules.

Beachbody says it will consider alternatives, such as a reverse stock split, pending shareholder approval. If Beachbody decides to cure the price deficiency by taking a stockholder-approved action, the NYSE will deem the price condition cured if the price goes over $1.00 per share and stays above that level for at least the next 30 trading days.

The Class A Common Stock of the fitness company will continue to be listed and traded during this period. 

Beachbody recently reported its Q3 results, with total revenue at $165.9 million, a 20% decrease compared to 2021. The fitness brand said it has taken steps to operate more efficiently, with price adjustments and bundle strategies, such as the BODi Bike Studio bundle for $50 a month. 

“It’s no secret that we’re pursuing this goal amid substantial challenges facing our entire industry,” Beachbody CEO and co-founder Carl Daikeler said on the recent earnings call. “As pioneers in the fitness space, we’ve navigated through many challenging times before and come out of each period stronger. In fact, we’ve emerged from every economic downturn in better shape than how we entered it, and I expect this to be no different.”

The Beachbody brand also reported it would reinvigorate nutrition revenue with the launch of a gourmet superfood campaign, and plans to introduce gifting programs to drive sales during the holidays.

Photo by tommao wang on Unsplash

The post Beachbody Receives Deficiency Letter from NYSE, Plans to Consider Available Alternatives appeared first on Athletech News.

Beachbody shares (NYSE: BODY) dropped 27.5% as investors responded to less-than-stellar third-quarter results. The fitness company reported that sales were down 17%, with CEO Carl Daikeler calling the results “unacceptable.” Despite lukewarm numbers, Beachbody says at-home fitness is here to stay and is looking ahead towards digital and connected fitness. 

In the earnings call before the drop in shares, Daikeler, Beachbody co-founder and CEO, said that July and August were in line with the company’s expectations but noted that September was more challenging than anticipated. Daikeler said new subscriber acquisitions were lower due to softer consumer demand, a complex media environment, and delays in key product launches. He noted that Beachbody retained existing subscribers but that the company would be improving customer acquisitions.

“Make no mistake, as the single largest shareholder as well as CEO of Beachbody, but more so because I believe in the importance of our mission to serve as many people as possible; this is deeply personal to me,” Daikeler said on the call before Beachbody shares plummeted.

Beachbody reported a 5% drop in digital revenue, and nutritional revenue took a 29% dive, which Beachbody said resulted from nutrition being linked to digital subscriptions. Launch delays and marketing inefficiencies led to a disastrous domino effect for the nutrition segment, says the fitness company.

Calling Beachbody’s results “unacceptable,” he went on to say that the company knows how to respond with a focus on the consumer and continue delivering a fitness and nutrition system that is cost-effective for its customers. Daikeler noted that consumers might just be distracted with returning to pre-pandemic life, like traveling, socializing, or spending time outside the home.

“Put plainly, at home fitness is not a passing trend that grew out of the pandemic. It’s here to stay. Our performance versus 2019, including solid growth in subscriptions and solid retention and engagement is evidence of that long-term trend. There’s no denying the consumer is experiencing a moment of distraction,” the CEO said in the call. 

Beachbody leaders also point to rising media costs and Apple’s iOS 14.5’s new privacy settings, which they say made performance marketing increase in price and less efficient. BOD Interactive, a new live group fitness subscription, was also delayed because the company needed more time to ensure that the tech used would provide its desired immersive experience. Calling it a domino effect, the delay of BOD Interactive also had an impact on bike sales because of its interactive cycling content.

“As a result, we did not begin to aggressively promote the bike in our coach network and on social media until late October as we needed the BOD Interactive launch to be able to truly unlock the full value proposition,” Daikeler explained.

Beachbody is now focusing on the holidays and then looking to the first quarter when the company says most people reset and refocus on health. 

Beachbody noted that it has streamlined its marketing organization, allowing for a “faster feedback loop” between creative, media, data, and analytic teams. The company says this will assist with identifying winners.

The company will also scale its connected fitness business. Beachbody’s CEO acknowledges this is a competitive market but says that the company’s existing 3 million subscribers, bike, and nutrition plans and supplements, put the fitness company in a position to accelerate. The Connected Bike, Daikeler said, will enhance the lifetime value of Beachbody’s customer base. 

The fitness giant said it would put its attention on the network of coaches. Beachbody will be releasing a program called Job 1, by Super Trainer Jennifer Jacobs, which will roll out in December. The company will also be launching new nutritional products in 2022. 

“Like others in the industry, the volatility in consumer demand we experienced in the third quarter as the economy began to reopen, was greater than anticipated. But looking past the near-term turbulence, we remain confident in our unique value proposition and the long-term secular tailwinds at our back,” said Sue Collyns, President and CFO.

The post Beachbody Shares Drop After Q3 Results appeared first on Athletech News.

The Beachbody Company Group, LLC (“Beachbody”), a leader in subscription health and wellness, today announced that it will launch a new live interactive content subscription offering in September 2021. BOD Interactive (BODi – pronounced “body”) demonstrates the investment Beachbody has made in world-class trainers and cutting-edge technology to bring the experience and energy of a group fitness experience into the home.

“BODi’s approach to fitness streaming will transform members’ living rooms into a high energy, group fitness class,” said Carl Daikeler, Co-founder, Chairman and CEO of Beachbody. “What we believe distinguishes BODi from any other streaming fitness offering is the fact that BODi’s technology-enabled experience will allow subscribers and Beachbody trainers to have direct access to one another. This offering will further elevate live and connected at-home workout content with stunning production value. When combined with the ability to personalize music while remaining on beat with the instructor, BODi will provide an at-home fitness experience beyond anything in the market today.”

Using Beachbody’s renowned approach to engaging content, and supported by innovative technology and a strategic partnership with Feed.fm, BODi will enhance the at-home experience with personalization and live interaction between members and trainers, including:

• Through “BODcast,” members can opt-in to appear as part of the curated onscreen “cast” of the workout, with their image projected on the LED wall on stage during select classes.
• BODi trainers will provide specific technique corrections to the BODcast, benefitting thousands of live viewers with specific form corrections and real-time motivation during every workout.
• Leveraging Feed.fm capabilities, users can follow the trainer’s curated soundtrack for the workout, or choose from multiple genres so they can work out to music of their choosing while staying on beat with the rest of the class.

BODi subscribers will have access to a broad offering of daily live and on-demand classes that feature an incredible line up of its most well-known trainers, offering:

• Live and on-demand “virtual group” fitness classes including indoor cycling, cardio, HIIT, strength training, Pilates, barre, and yoga.
• Access to popular trainers such as Shaun T, Autumn Calabrese, Jericho McMatthews, Joel Freeman, Megan Davies, Idalis Velazquez, Amoila Cesar, and others.
• New indoor cycling and functional training classes from former Senior Peloton Instructor Jennifer Jacobs, taught in English and French.
• At launch, users of the MYX indoor cycle will have the ability to stream any BODi workout on the MYX touchscreen tablet, while using Myx’s patented heart-rate training technology for motivation and to maximize results.

The BODi tier will be priced at an additional $19.95 per month on top of the current BOD membership.

The announcement of BODi follows Beachbody’s plans to go public via a three-way merger with Forest Road Acquisition Corp. (NYSE: FRX), a publicly traded special purpose acquisition company, and Myx Fitness Holdings, LLC (“Myx”), an at-home connected fitness platform featuring a stationary cycle plus accessories. Upon closing of the business combination transaction, the combined company will be renamed “The Beachbody Company” and will be the parent of three premium content and technology-driven businesses: Beachbody on Demand (“BOD”), Openfit and Myx. Following the business combination, the company will continue to strengthen its at-home fitness offerings, which include Myx updates such as the BODi integration and Openfit content being offered to existing and new connected fitness customers.

The transaction is expected to close in the second quarter of 2021 and the combined company will be listed on the NYSE under a new ticker symbol, “BODY.”

The post The Beachbody Company Announces BODi: A New Interactive Premium Tier for Beachbody on Demand; Underpinned by Partnership with Feed.fm appeared first on Athletech News.

ANTA MONICA, Calif.–(BUSINESS WIRE)–Beachbody, a market leader of at-home workouts that combines fitness, meal planning, and peer support, has announced that its Beachbody On Demand streaming platform has surpassed two million subscribers.

“The metrics are exciting because the more people engage with the content, the better their results, and the better their results, the more people engage with the content. It’s a virtuous cycle.”

Amid an unprecedented change in consumer workout habits, Beachbody On Demand has experienced record streaming volume since mid-March. The platform experienced its highest streaming week of all-time for the sixth consecutive time during the week of April 20^th, as nearly one million subscribers logged in to view 4.8 million videos.

Beachbody On Demand reached its highest ever total of simultaneous views on April 27^th at 7:27 am PT, as 31,113 subscribers streamed its on-demand content. Workouts from the platform’s most popular program in 2020 – Morning Meltdown 100 – were viewed an average of 84,000 times per day and a total of nearly 590K times just last week.

“We have created a vast portfolio of the most engaging and effective fitness and nutrition content over the last 21 years and have seen several evolutions, but we have always maintained a holistic approach to losing weight, getting fit, and getting healthy,” said Beachbody co-founder and CEO Carl Daikeler. “The metrics are exciting because the more people engage with the content, the better their results, and the better their results, the more people engage with the content. It’s a virtuous cycle.”

The 2MM subscriber milestone coincides with the launch of BODgroups, Beachbody’s new social media platform that helps people connect to stay motivated and accountable, with a welcome escape from noise of politics and pandemics that’s otherwise unavoidable. Each BODgroup is run by a Coach who uses the platform to support other people who are engaged in the same Beachbody program as them. BODgroups enhances the Beachbody On Demand app experience by enabling subscribers to access their workouts from the group, track their workouts and nutrition, update their biometrics like weight and measurements and stay engaged with their Coach and group community – all in one place. Studies show that people are more likely to stick to a new workout plan (or with healthier habits in general) when they have an accountability partner.

With a catalog of 2,192 videos, including workouts from trainers like Autumn Calabrese, Shaun T, Tony Horton, Joel Freeman and Jericho Matthews, as well as recipe and meal planning nutritional videos, Beachbody On Demand offers subscribers on-demand access for a $99 annual fee.

About Beachbody

Beachbody, a worldwide leader in health and fitness headquartered in Santa Monica, California, was founded in 1998 by Carl Daikeler and Jon Congdon with the mission to help people achieve their goals and enjoy healthy, fulfilling lives. Beachbody’s formula of world-class fitness, nutrition, motivation and support has proven again and again to deliver results for its customers. For more information please visit Beachbody.com or BeachbodyOnDemand.com.

The post Beachbody Tops Two Million Subscribers as Fitness Streaming Continues to Surge appeared first on Athletech News.