BODY - The Beachbody Company Inc. Announces Fourth Quarter and Full Year 2021 Financial Results and Strategic Realignment Initiatives
Fourth Quarter Results Exceed Guidance and Reflect Strong Execution
Solid Two-Year Growth in Total Digital and Nutritional Subscriptions +42%, Average Digital Retention +90BPS, Total Streams +21%, Reflecting Positive Secular Trends
Announces Strategy to Accelerate Path to Profitability, Reduce Cash Use from Operations by Approximately $110 Million, and Strengthen Competitive Position
The Beachbody Company, Inc. (NYSE: BODY) (“Beachbody” or the “Company”), a leading subscription health and wellness company, today announced financial results for its fourth quarter and full year ended December 31, 2021.
“Our performance in the fourth quarter reflects disciplined execution against the plan we laid out in November to prioritize the highest return marketing opportunities, which in conjunction with a strong portfolio of new product offerings, enabled us to exceed our previous guidance,” said Carl Daikeler, Beachbody’s Co-Founder, Chairman, and Chief Executive Officer. “Our content-driven model, powerful flywheel of fitness combined with nutrition and unique coach network, provides an incredibly strong foundation unlike any other in the industry. We are capitalizing on the strengths we’ve built to adjust our business back to the profitable playbook that has served us well for more than two decades: narrowing our focus to the strongest elements of our business, investing in the highest return, lowest risk opportunities, and maintaining an unwavering commitment to disciplined cost management and capital efficiency. We believe these efforts best position us to deliver positive earnings and cash flow in 2023.”
Fourth Quarter 2021 Results
- Total revenue was $216.3 million, a 4% decrease compared to 2020 and a 31% increase compared to 2019
- Digital revenue was $81.9 million, a 14% decrease compared to 2020 and a 41% increase compared to 2019
- Digital subscriptions were 2.54 million, a 3% decrease compared to 2020 and a 50% increase compared to 2019
- 96.5% month-over-month average digital retention, a 90-basis point increase compared to 2020 and a 90-basis point increase compared to 2019
- 30.8 million total streams, a 27% decrease compared to 2020, and a 21% increase compared to 2019
- 28.9% DAU/MAU, a 240-basis point decrease compared to 2020, and a 10-basis point decrease compared to 2019
- Connected Fitness revenue was $36.8 million, compared to none in 2020, which preceded the Myx Fitness acquisition
- Approximately 23,900 bikes sold in the fourth quarter, with a bikes-delivered to sales ratio of 124%
- On a pre-merger basis, Connected Fitness revenue was $17.6 million in Q4 2020, with approximately 12,300 bikes sold and a bikes-delivered to sales ratio of 114% in the quarter
- Nutrition and Other revenue was $97.6 million, a 25% decrease compared to 2020 and a 9% decrease compared to 2019
- Nutritional subscriptions were 0.30 million, compared to 0.39 million in 2020 and 0.31 million in 2019
- Net loss was $146.0 million, compared to a net loss of $16.9 million in 2020 and net income of $1.8 million in 2019
- Adjusted EBITDA was ($26.6) million, compared to $16.5 million in 2020 and $19.2 million in 2019
- We recorded goodwill and intangibles impairment charges of $94.9 million in the fourth quarter. These impairment charges are non-cash and excluded from net loss in our Adjusted EBITDA calculation
Full Year 2021 Results
- Total revenue was $873.6 million, a 1% increase compared to 2020 and a 16% increase compared to 2019
- Digital revenue was $365.4 million, a 9% increase compared to 2020 and a 46% increase compared to 2019
- Connected Fitness revenue was $42.7 million, following the Myx Fitness acquisition in June 2021
- Nutrition and Other revenue was $465.5 million, a 12% decrease compared to 2020 and an 8% decrease compared to 2019
- Net loss was $228.4 million, compared to a net loss of $21.4 million in 2020 and net income of $32.3 million in 2019
- Adjusted EBITDA was ($86.1) million, compared to $51.5 million in 2020 and $78.4 million in 2019
| Key Operational and Business Metrics |
| For the Three Months Ended December 31, |
| For the Year Ended December 31, |
| 2021 |
|
|
| 2020 |
|
|
| Change v 2020 |
| 2019 |
|
|
| Change v 2019 |
|
|
| 2021 |
|
|
| 2020 |
|
|
| Change v 2020 |
| 2019 |
|
|
| Change v 2019 |
| Connected Fitness Units Sold (in thousands) |
| 23.9 |
|
|
| 0.0 |
|
|
| NM |
| 0.0 |
|
|
| NM |
|
|
| 39.1 |
|
|
| 0.0 |
|
|
| NM |
| 0.0 |
|
|
| NM |
| Connected Fitness Units Delivered (in thousands) |
| 29.7 |
|
|
| 0.0 |
|
|
| NM |
| 0.0 |
|
|
| NM |
|
|
| 36.2 |
|
|
| 0.0 |
|
|
| NM |
| 0.0 |
|
|
| NM |
| Bikes Delivered to Sales Ratio |
| 124% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 93% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital Subscriptions (in millions) |
| 2.54 |
|
|
| 2.63 |
|
|
| (3%) |
| 1.69 |
|
|
| 50% |
|
|
| 2.54 |
|
|
| 2.63 |
|
|
| (3%) |
| 1.69 |
|
|
| 50% |
| Nutritional Subscriptions (in millions) |
| 0.30 |
|
|
| 0.39 |
|
|
| (23%) |
| 0.31 |
|
|
| (3%) |
|
|
| 0.30 |
|
|
| 0.39 |
|
|
| (23%) |
| 0.31 |
|
|
| (3%) |
| Total Subscriptions |
| 2.84 |
|
|
| 3.02 |
|
|
| (6%) |
| 2.00 |
|
|
| 42% |
|
|
| 2.84 |
|
|
| 3.02 |
|
|
| (6%) |
| 2.00 |
|
|
| 42% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Digital Retention |
| 96.5% |
|
|
| 95.6% |
|
|
| 90bps |
| 95.6% |
|
|
| 90bps |
|
|
| 95.7% |
|
|
| 95.5% |
|
|
| 20bps |
| 95.3% |
|
|
| 40bps |
| Total Streams (in millions) |
| 30.8 |
|
|
| 42.4 |
|
|
| (27%) |
| 25.4 |
|
|
| 21% |
|
|
| 167.1 |
|
|
| 179.6 |
|
|
| (7%) |
| 103.8 |
|
|
| 61% |
| DAU/MAU |
| 28.9% |
|
|
| 31.3% |
|
|
| (240bps) |
| 29.0% |
|
|
| (10bps) |
|
|
| 31.4% |
|
|
| 31.6% |
|
|
| (20bps) |
| 29.2% |
|
|
| 220bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Connected Fitness |
| $36.8 |
|
|
| $0.0 |
|
|
| NM |
| $0.0 |
|
|
| NM |
|
|
| $42.7 |
|
|
| $0.0 |
|
|
| NM |
| $0.0 |
|
|
| NM |
| Digital |
| $81.9 |
|
|
| $94.8 |
|
|
| (14%) |
| $57.9 |
|
|
| 41% |
|
|
| $365.4 |
|
|
| $334.8 |
|
|
| 9% |
| $250.8 |
|
|
| 46% |
| Nutrition & other |
| $97.6 |
|
|
| $129.4 |
|
|
| (25%) |
| $107.2 |
|
|
| (9%) |
|
|
| $465.5 |
|
|
| $528.8 |
|
|
| (12%) |
| $505.0 |
|
|
| (8%) |
| Revenue (in millions) |
| $216.3 |
|
|
| $224.3 |
|
|
| (4%) |
| $165.1 |
|
|
| 31% |
|
|
| $873.6 |
|
|
| $863.6 |
|
|
| 1% |
| $755.8 |
|
|
| 16% |
| Net Income/(Loss) (in millions) |
| ($146.0) |
|
|
| ($16.9) |
|
|
| (764%) |
| $1.8 |
|
|
| (8,211%) |
|
|
| ($228.4) |
|
|
| ($21.4) |
|
|
| (967%) |
| $32.3 |
|
|
| (807%) |
| Adjusted EBITDA (in millions) |
| ($26.6) |
|
|
| $16.5 |
|
|
| (261%) |
| $19.2 |
|
|
| (239%) |
|
|
| ($86.1) |
|
|
| $51.5 |
|
|
| (267%) |
| $78.4 |
|
|
| (210%) |
Strategy to Accelerate Path to Profitability and Enhance Competitive Position
The Company also announced today that it is moving swiftly to streamline its business model, accelerate its path to profitability and ensure it is positioned to deliver profits and cash flow in a variety of demand environments, and return to positive earnings and cash flow in 2023 through the following initiatives:
- Implementing a “One Brand” strategy: The Company will consolidate its streaming fitness and nutrition offerings into a single platform, Beachbody On Demand (BOD), and market its connected fitness bike under the Beachbody brand. This consolidation will increase the strength of BOD’s platform with the addition of Openfit products and talent to BOD’s already extensive on-demand library, enhance the Company’s value proposition to its customers and partners, and simplify its go-to-market strategy.
- Enhancing marketing ROI: Building on the performance in the fourth quarter, the Company will target historically high-return media and narrow its focus to pursue only performance marketing opportunities that are immediately profitable and accretive to cash flow. Additionally, the Company will further leverage its coach micro-influencer network, which continues to serve as a competitive advantage that consistently delivers the most profitable and productive subscribers.
- Improving lifecycle management: Leveraging its database of over 2.8 million subscriptions and insights from its data and analytics team, the Company has identified significant opportunities to increase lifetime value by reducing friction in the ecommerce purchasing funnel and maximizing the ROI on new content releases and nutritional supplements.
- Increasing capital efficiency: As a result of the “One Brand” strategy and post-merger technology integration efforts completed in 2021, the Company reduced headcount by approximately 10% in the first quarter of 2022. Additionally, in conjunction with AlixPartners, the Company is undertaking a thorough review of its organization to further streamline operations and reduce its expense profile to match various demand environments.
2022 Financial Outlook 1
As a result of the actions outlined above, during fiscal 2022, the Company expects to reduce its cash use from operating activities by approximately $110 million as compared to 2021 and meaningfully reduce its full year net loss and Adjusted EBITDA loss.
For the first quarter of 2022 the Company expects:
- Total revenue of $170 million to $180 million
- Adjusted EBITDA loss of $20 million to $25 million
1 Net loss guidance is not reasonably available due to changes in matters that we cannot forecast at this time.
Conference Call and Webcast Information
Beachbody will host a conference call at 5:00pm ET on Tuesday, March 1, 2022 to discuss its financial results. To participate in the live call, please dial (844) 200-6205 (U.S. & Canada), or (646) 904-5544 (all other locations) and provide the conference identification number: 653651. The conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/ .
A replay of the call will be available until March 8, 2022 by dialing (866) 813-9403 (U.S & Canada), or (929) 458-6194 (all other locations). The replay passcode is 665771.
After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year.
About The Beachbody Company, Inc.
Headquartered in Southern California, Beachbody is a worldwide leading digital fitness and nutrition subscription company with over two decades of creating innovative content and powerful brands. The Beachbody Company is the parent company of the Beachbody On Demand streaming platform (BOD), the live digital streaming platforms Beachbody On Demand Interactive (BODi) and Openfit, and the Beachbody Bike by MYX, the Company’s connected indoor bike. For more information, please visit TheBeachbodyCompany.com .
Safe Harbor Statement
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical facts and statements in future tense. These statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the first quarter and full year, the potential impact of COVID-19 on the fitness and wellness industry in general as well as our business, our business strategy, our plans, and our objectives and future operations.
Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; and litigation and the ability to adequately protect our intellectual property rights. You can identify these statements by the use of terminology such as "believe", “plans”, "expect", "will", "should," "could", "estimate", "anticipate" or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the "Risk Factors" section of our Securities and Exchange Commission (SEC) filings, including those risks and uncertainties included in the Form 10-K filed with the SEC on March 1, 2022, which are available on the Investor Relations page of our website at https://investors.thebeachbodycompany.com and on the SEC website at www.sec.gov .
All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements.
| The Beachbody Company, Inc. |
| Consolidated Balance Sheets |
| (in thousands, except par value and share data) |
| As of December 31, |
| 2021 |
|
|
| 2020 |
|
|
| Assets |
| Current assets: |
| Cash and cash equivalents |
| $104,054 |
|
|
| $56,827 |
|
|
| Restricted cash |
| 3,000 |
|
|
| — |
|
|
| Inventory, net |
| 132,730 |
|
|
| 65,354 |
|
|
| Prepaid expenses |
| 15,861 |
|
|
| 8,650 |
|
|
| Other current assets |
| 43,727 |
|
|
| 38,219 |
|
|
| Total current assets |
| 299,372 |
|
|
| 169,050 |
|
|
| Property and equipment, net |
| 113,098 |
|
|
| 80,169 |
|
|
| Content assets, net |
| 39,347 |
|
|
| 19,437 |
|
|
| Goodwill and intangible assets, net |
| 171,533 |
|
|
| 40,101 |
|
|
| Right-of-use assets, net |
| 6,613 |
|
|
| 33,272 |
|
|
| Other assets |
| 7,649 |
|
|
| 14,224 |
|
|
| Total assets |
| $637,612 |
|
|
| $356,253 |
|
|
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
| $48,379 |
|
|
| $28,981 |
|
|
| Accrued expenses |
| 74,525 |
|
|
| 79,955 |
|
|
| Deferred revenue |
| 107,095 |
|
|
| 97,504 |
|
|
| Current portion of lease liabilities |
| 2,307 |
|
|
| 10,371 |
|
|
| Other current liabilities |
| 3,926 |
|
|
| 3,106 |
|
|
| Total current liabilities |
| 236,232 |
|
|
| 219,917 |
|
|
| Long-term lease liabilities, net |
| 4,823 |
|
|
| 31,252 |
|
|
| Deferred tax liabilities |
| 3,165 |
|
|
| 3,729 |
|
|
| Other liabilities |
| 8,007 |
|
|
| 2,097 |
|
|
| Total liabilities |
| 252,227 |
|
|
| 256,995 |
|
|
| Commitments and contingencies (Note 14) |
| Stockholders' equity: |
| Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding as of December 31, 2021 and 2020 |
| — |
|
|
| — |
|
|
| Common stock, $0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000 Class X and 100,000,000 Class C) |
| — |
|
|
| — |
|
|
| Class A: 168,333,463 and 101,762,614 shares issued and outstanding at December 31, 2021 and 2020, respectively; |
| 17 |
|
|
| 10 |
|
|
| Class X: 141,250,310 shares issued and outstanding at December 31, 2021 and 2020, respectively; |
| 14 |
|
|
| 14 |
|
|
| Class C: no shares issued and outstanding at December 31, 2021 and 2020 |
| — |
|
|
| — |
|
|
| Additional paid-in capital |
| 610,418 |
|
|
| 96,097 |
|
|
| Accumulated other comprehensive loss |
| (21 |
| ) |
| (202 |
| ) |
| Retained earnings (accumulated deficit) |
| (225,043 |
| ) |
| 3,339 |
|
|
| Total stockholders’ equity |
| 385,385 |
|
|
| 99,258 |
|
|
| Total liabilities and stockholders' equity |
| $637,612 |
|
|
| $356,253 |
|
|
| The Beachbody Company, Inc. |
| Consolidated Statements of Operations |
| (in thousands, except per share data) |
| Three Months Ended December 31, |
|
|
| Years Ended December 31, |
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Revenue: |
| Digital |
| $81,865 |
|
|
| $94,840 |
|
|
| $365,412 |
|
|
| $334,804 |
|
|
| Connected fitness |
| 36,801 |
|
|
| — |
|
|
| 42,738 |
|
|
| — |
|
|
| Nutrition and other |
| 97,600 |
|
|
| 129,443 |
|
|
| 465,495 |
|
|
| 528,778 |
|
|
| Total revenue |
| 216,266 |
|
|
| 224,283 |
|
|
| 873,645 |
|
|
| 863,582 |
|
|
| Cost of revenue: |
| Digital |
| 13,454 |
|
|
| 10,778 |
|
|
| 48,312 |
|
|
| 38,285 |
|
|
| Connected fitness |
| 56,626 |
|
|
| — |
|
|
| 67,043 |
|
|
| — |
|
|
| Nutrition and other |
| 48,628 |
|
|
| 59,768 |
|
|
| 213,307 |
|
|
| 211,422 |
|
|
| Total cost of revenue |
| 118,708 |
|
|
| 70,546 |
|
|
| 328,662 |
|
|
| 249,707 |
|
|
| Gross profit |
| 97,558 |
|
|
| 153,737 |
|
|
| 544,983 |
|
|
| 613,875 |
|
|
| Operating expenses: |
| Selling and marketing |
| 109,458 |
|
|
| 111,128 |
|
|
| 548,130 |
|
|
| 464,000 |
|
|
| Enterprise technology and development |
| 36,197 |
|
|
| 25,478 |
|
|
| 119,915 |
|
|
| 93,036 |
|
|
| General and administrative |
| 21,159 |
|
|
| 18,589 |
|
|
| 79,682 |
|
|
| 64,818 |
|
|
| Restructuring gain |
| (320 |
| ) |
| — |
|
|
| (320 |
| ) |
| (1,677 |
| ) |
| Impairment of goodwill and intangible assets |
| 94,894 |
|
|
| — |
|
|
| 94,894 |
|
|
| — |
|
|
| Total operating expenses |
| 261,388 |
|
|
| 155,195 |
|
|
| 842,301 |
|
|
| 620,177 |
|
|
| Operating loss |
| (163,830 |
| ) |
| (1,458 |
| ) |
| (297,318 |
| ) |
| (6,302 |
| ) |
| Other income (expense) |
| Change in fair value of warrant liabilities |
| 15,065 |
|
|
| — |
|
|
| 50,729 |
|
|
| — |
|
|
| Interest expense |
| (46 |
| ) |
| (95 |
| ) |
| (536 |
| ) |
| (527 |
| ) |
| Other income, net |
| 49 |
|
|
| 111 |
|
|
| 3,204 |
|
|
| 666 |
|
|
| Loss before income taxes |
| (148,762 |
| ) |
| (1,442 |
| ) |
| (243,921 |
| ) |
| (6,163 |
| ) |
| Income tax benefit (provision) |
| 2,800 |
|
|
| (15,430 |
| ) |
| 15,539 |
|
|
| (15,269 |
| ) |
| Net loss |
| ($145,962 |
| ) |
| ($16,872 |
| ) |
| ($228,382 |
| ) |
| ($21,432 |
| ) |
| Net loss per common share, basic |
| ($0.48 |
| ) |
| ($0.07 |
| ) |
| ($0.83 |
| ) |
| ($0.09 |
| ) |
| Net loss per common share, diluted |
| ($0.48 |
| ) |
| ($0.07 |
| ) |
| ($0.83 |
| ) |
| ($0.09 |
| ) |
| Weighted-average common shares outstanding, basic |
| 305,750 |
|
|
| 243,013 |
|
|
| 275,359 |
|
|
| 239,540 |
|
|
| Weighted-average common shares outstanding, diluted |
| 305,750 |
|
|
| 243,013 |
|
|
| 275,359 |
|
|
| 239,540 |
|
|
| The Beachbody Company, Inc. |
| Consolidated Statements of Cash Flows |
| (in thousands) |
| Years Ended December 31, |
| 2021 |
|
|
| 2020 |
|
|
| Cash flows from operating activities: |
| Net loss |
| ($228,382 |
| ) |
| ($21,432 |
| ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |
| Impairment of goodwill and intangible assets |
| 94,894 |
|
|
| — |
|
|
| Depreciation and amortization expense |
| 59,597 |
|
|
| 44,257 |
|
|
| Amortization of content assets |
| 14,838 |
|
|
| 7,485 |
|
|
| Provision for excess and obsolete inventory |
| 17,488 |
|
|
| 2,759 |
|
|
| Realized losses on hedging derivative financial instruments |
| 550 |
|
|
| 92 |
|
|
| Gain on investment in convertible instrument |
| (3,114 |
| ) |
| (288 |
| ) |
| Change in fair value of warrant liabilities |
| (50,729 |
| ) |
| — |
|
|
| Gain on lease assignment |
| (6,500 |
| ) |
| — |
|
|
| Equity-based compensation |
| 16,413 |
|
|
| 5,398 |
|
|
| Deferred income taxes |
| (15,862 |
| ) |
| 15,595 |
|
|
| Other non-cash items |
| — |
|
|
| 93 |
|
|
| Changes in operating assets and liabilities: |
| Inventory |
| (74,257 |
| ) |
| (27,754 |
| ) |
| Content assets |
| (31,349 |
| ) |
| (15,555 |
| ) |
| Prepaid expenses |
| (6,761 |
| ) |
| 5,732 |
|
|
| Other assets |
| (2,023 |
| ) |
| (1,772 |
| ) |
| Accounts payable |
| 8,307 |
|
|
| 10,619 |
|
|
| Accrued expenses |
| (11,273 |
| ) |
| 21,804 |
|
|
| Deferred revenue |
| 7,435 |
|
|
| 24,770 |
|
|
| Other liabilities |
| (4,521 |
| ) |
| (10,373 |
| ) |
| Net cash provided by (used in) operating activities |
| (215,249 |
| ) |
| 61,430 |
|
|
| Cash flows from investing activities: |
| Purchase of property and equipment |
| (77,911 |
| ) |
| (37,933 |
| ) |
| Investment in convertible instrument |
| (5,000 |
| ) |
| (10,000 |
| ) |
| Other investment |
| (5,000 |
| ) |
| — |
|
|
| Cash paid for acquisition, net of cash acquired |
| (37,280 |
| ) |
| 1,247 |
|
|
| Net cash used in investing activities |
| (125,191 |
| ) |
| (46,686 |
| ) |
| Cash flows from financing activities: |
| Proceeds from exercise of stock options |
| 4,680 |
|
|
| — |
|
|
| Remittance of taxes withheld from employee stock awards |
| (3,154 |
| ) |
| — |
|
|
| Borrowings under Credit Facility |
| 42,000 |
|
|
| 32,000 |
|
|
| Repayments under Credit Facility |
| (42,000 |
| ) |
| (32,000 |
| ) |
| Business combination, net of issuance costs paid |
| 389,125 |
|
|
| — |
|
|
| Deferred financing costs |
| — |
|
|
| (240 |
| ) |
| Holdings downstream merger |
| — |
|
|
| 405 |
|
|
| Net cash provided by financing activities |
| 390,651 |
|
|
| 165 |
|
|
| Effect of exchange rates on cash |
| 16 |
|
|
| 354 |
|
|
| Net increase in cash and cash equivalents |
| 50,227 |
|
|
| 15,263 |
|
|
| Cash, cash equivalents and restricted cash, beginning of year |
| 56,827 |
|
|
| 41,564 |
|
|
| Cash, cash equivalents and restricted cash, end of year |
| $107,054 |
|
|
| $56,827 |
|
|
| Supplemental disclosure of cash flow information: |
| Cash paid during the year for interest |
| $466 |
|
|
| $206 |
|
|
| Cash paid during the year for income taxes, net |
| $385 |
|
|
| $333 |
|
|
| Supplemental disclosure of noncash investing activities: |
| Property and equipment acquired but not yet paid for |
| $9,657 |
|
|
| $5,614 |
|
|
| Common shares issued in connection with acquisition |
| $162,558 |
|
|
| $27,889 |
|
|
| Supplemental disclosure of noncash financing activities: |
| Tax asset contribution |
| — |
|
|
| ($135 |
| ) |
| Deferred financing costs, accrued but not paid |
| — |
|
|
| $1,593 |
|
|
The Beachbody Company, Inc.
Adjusted EBITDA
In addition to our results determined in accordance with accounting principles generally accepted in the United States, or GAAP, we believe the following non-GAAP financial measure of Adjusted EBITDA is useful in evaluating our operating performance.
We define and calculate Adjusted EBITDA as net income (loss) adjusted for impairment of goodwill and intangible assets, depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income taxes, equity-based compensation, net realizable value adjustment, transaction costs, restructuring gain, change in fair value of warrant liabilities, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business.
The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure. A reconciliation of our non-GAAP Adjusted EBITDA to GAAP net income (loss) can be found below:
| (in thousands) |
| Three Months Ended December 31, |
|
|
| Years ended December 31, |
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Net loss |
| ($145,962 |
| ) |
| ($16,872 |
| ) |
| ($228,382 |
| ) |
| ($21,432 |
| ) |
| Adjusted for: |
| Impairment of goodwill and intangible assets |
| 94,894 |
|
|
| - |
|
|
| 94,894 |
|
|
| - |
|
|
| Depreciation and amortization |
| 19,040 |
|
|
| 12,376 |
|
|
| 59,597 |
|
|
| 44,257 |
|
|
| Amortization of capitalized cloud computing implementation costs |
| 168 |
|
|
| 186 |
|
|
| 672 |
|
|
| 186 |
|
|
| Amortization of content assets |
| 4,830 |
|
|
| 2,382 |
|
|
| 14,838 |
|
|
| 7,485 |
|
|
| Interest expense |
| 46 |
|
|
| 95 |
|
|
| 536 |
|
|
| 527 |
|
|
| Income tax provision (benefit) |
| (2,800 |
| ) |
| 15,430 |
|
|
| (15,539 |
| ) |
| 15,269 |
|
|
| Equity- based compensation |
| 5,574 |
|
|
| 2,229 |
|
|
| 16,413 |
|
|
| 5,398 |
|
|
| Net realizable value adjustment |
| 10,082 |
|
|
| - |
|
|
| 10,082 |
|
|
| - |
|
|
| Transaction costs |
| 209 |
|
|
| 855 |
|
|
| 3,028 |
|
|
| 1,467 |
|
|
| Restructuring gain |
| (320 |
| ) |
| — |
|
|
| (320 |
| ) |
| (1,677 |
| ) |
| Change in fair value of warrant liabilities |
| (15,065 |
| ) |
| — |
|
|
| (50,729 |
| ) |
| — |
|
|
| Other adjustment items (1) |
| 2,619 |
|
|
| - |
|
|
| 11,701 |
|
|
| — |
|
|
| Non-operating (2) |
| 118 |
|
|
| (151 |
| ) |
| (2,899 |
| ) |
| (20 |
| ) |
| Adjusted EBITDA |
| ($26,567 |
| ) |
| $16,530 |
|
|
| ($86,108 |
| ) |
| $51,460 |
|
|
(1) Other adjustment items include incremental costs associated with COVID-19.
(2) Non-operating primarily includes interest income and gain on investment on the Myx convertible instrument.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301005954/en/
Media
Madeleine O'Hagan
madeleine.ohagan@teneo.com
Investor Relations
Edward Plank
eplank@beachbody.com