The Beachbody pany(BODY) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenue for Q3 2024 was $102.2 million, a 20$332.4 million, a 19% decrease year-over-year[142] - Total revenue decreased by 20% to $102,193,000 for the three months ended September 30, 2024, down from$128,250,000 in the same period of 2023[167] - Total revenue for the nine months ended September 30, 2024, was $332,422 thousand, a decrease of 19$408,099 thousand in 2023[170] Digital Revenue - Digital revenue decreased by 17% to $53.7 million, while nutrition and other revenue also decreased by 20$47.4 million[141] - Digital revenue declined by 17% to $53,702,000 for the three months ended September 30, 2024, primarily due to a 20$20,347 thousand, or 10%, for the nine months ended September 30, 2024, primarily due to a $19.9 million decrease in digital streaming services revenue[170] Nutrition and Other Revenue - Nutrition and other revenue fell by 20$47,416,000 for the three months ended September 30, 2024, attributed to a 27% decrease in nutritional subscriptions[168] - Nutrition and other revenue decreased by $44,700 thousand, or 23$1.1 million[141] - Connected fitness revenue decreased by approximately 66% for the nine months ended September 30, 2024, from $16,044 thousand in 2023 to$5,414 thousand in 2024[170] Profit and Loss - The company reported a net loss of $12.0 million for Q3 2024, an improvement from a net loss of$32.7 million in Q3 2023[141] - The company experienced a net loss of $12,003,000 for the three months ended September 30, 2024, compared to a net loss of$32,666,000 for the same period in 2023[160] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $10.1 million, compared to a loss of$5.8 million in the same period last year[141] - Adjusted EBITDA for the three months ended September 30, 2024, was $10,136,000, compared to an Adjusted EBITDA loss of$5,833,000 for the same period in 2023[160] Restructuring and Workforce Changes - The company announced a restructuring plan (the "Pivot") that will reduce headcount by approximately 170 employees, representing 33% of the workforce[141] - The Pivot is expected to incur approximately $18.4 million in costs, with$9.2 million recorded in Q3 2024[145] Expenses - Operating expenses totaled $81,821,000 for the three months ended September 30, 2024, compared to$104,035,000 for the same period in 2023[164] - Selling and marketing expenses for the three months ended September 30, 2024, were $45,592 thousand, a decrease of 34$69,127 thousand in 2023[184] - General and administrative expenses for the three months ended September 30, 2024, decreased by $2.999 million (20$1.5 million decrease in professional and accounting fees[191] Cash Flow and Liquidity - As of September 30, 2024, the company had cash and cash equivalents totaling $32.3 million, with net cash used in financing activities decreasing to$11.8 million from $17.7 million in the previous year[203][205] - The company generated$1.6 million in net cash from investing activities for the nine months ended September 30, 2024, compared to $(9.7) million in the same period of 2023, driven by proceeds from the sale of the Van Nuys facility[204] - The company expects to generate additional liquidity through continued cost control initiatives and believes existing cash and cash equivalents will meet anticipated cash needs for the next twelve months[210] Tax and Compliance - The income tax provision increased by$52,000 (83%) for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to changes in valuation allowance and net expense from discrete events[201] - The company is in compliance with financial covenants, including a minimum liquidity requirement of $18.0 million as of September 30, 2024, which will be amended to$9.5 million through December 31, 2024[207][208] Other Financial Metrics - The company recorded a gross profit of $68,811,000 for the three months ended September 30, 2024, down from$75,031,000 in the same period of 2023[164] - The principal balance outstanding under the Term Loan was $25.3 million as of September 30, 2024, with an effective interest rate of 23.35% for the nine months ended September 30, 2024[206]