WW - WW International stock rises as subscriber numbers outpace estimates

2023-03-06 16:35:30 ET

WW International ( NASDAQ: WW ) fell short of fourth quarter expectations on Monday despite better than expected subscriber retention.

The New York-based weight loss company reported a $0.46 per share loss for the quarter, $0.35 wider than anticipated. Meanwhile, an 18.9% drop in revenue from the prior year quarter to $223.9M narrowly missed estimates. However, a 7.9% sequential drop in subscribers to 3.5M, above the 3.4M consensus expectation.

“It has been nearly one year since I joined WeightWatchers - a time of significant transition, rationalization, and bold moves throughout the organization,” CEO Sima Sistani said. “We expect performance trends to improve throughout the year as we benefit from our data-informed approach to member acquisition, increased efficiency from streamlined operations, and new product features to enhance the member experience.”

For 2023, management expects about $235M in revenue while operating losses are expected to trend between $30M and $35M.

“While member signups are down year-over-year so far in 2023, that is a result of intentionally shifting a portion of our annual marketing spend from winter into the fall as we look to focus our spend alongside our digital product launches in the second half of the year, and ultimately return the company to growth,” CFO Heather Stark commented.

Shares of WW International ( WW ) rose 8.53% after hours on Monday, rebounding from a nearly 9% drop for the company during the daily trading session.

Read more on the company’s announcement of an agreement to acquire Sequence, a subscription telehealth platform .

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