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.