Beachbody Implements Stock Changes, Adds Free Subscription Tier
The company now known as BODi is struggling financially, but executives are bullish on a “robust turnaround plan”
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.
