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BODi CEO Says Company in ‘Early Stages’ of Rebrand After Q1 Revenue Decline

BODi CEO Says Company in ‘Early Stages’ of Rebrand After Q1 Revenue Decline

BODi CEO Carl Daikeler pointed to strong customer demand and search traffic volume as signs that the company is on the right track

The Beachbody Company held its first earnings call for 2023, a quarter that CEO Carl Daikeler said marks a “major transition” for the health and fitness company, which recently rebranded to BODi.

The company finished upgrading its subscription platform and simplified its business model, shifting to monthly content organized into three-week blocks with goals and objectives, having launched BODi in March. The single subscription plan better aligns with the company’s rebranding as it incorporates a mental health focus into its offerings.

Despite the significant changes, Daikeler believes BODi has much more to accomplish and that the company’s expanded BODi subscription platform is the “biggest and most important innovation” since the company’s inception.

Daikeler revealed that BODi is taking a more conservative view of its Q2 outlook, remaining assured that the company will achieve EBITDA profitability on a quarterly basis by the end of the year.

“I’m confident that this will be our next multibillion dollar opportunity to drive long-term sustainable growth,” the BODi CEO said. “We’re in the early stages of promoting this new premium subscription but I can report that we are already seeing promising customer demand based on the engagement and renewals of existing customers.”

Here are some key takeaways from The Beachbody Comapny’s first earnings call of the year, as Daikeler discusses key insight from Google search data, a looming recession and how he thinks weight loss medications like Ozempic can be a golden ticket for the company:

Q1 2023 results at a glance:

  • Total revenue was $144.9 million compared to $198.9 million in the prior-year period, a 27% decrease.
  • Operating loss improved to $27.4 million compared to an operating loss of $74.4 million in the prior-year period.
  • Net loss was $29.2 million compared to a net loss of $73.5 million in the prior-year period.
  • Adjusted EBITDA was ($0.9) million compared to ($19.1) million in the prior-year period.

BODi subscriptions

Daikeler revealed that BODi surpassed 500,000 subscriptions as of April 30, approximately double its total at the end of Q4 2022, an increase he says was driven by digital renewals and upgrades.

“The early strength in renewals demonstrates customers are recognizing that our pricing represents tremendous value associated with our rich catalog of over 120 programs,” Daikeler said. “I mean, everybody knows P90X, Insanity, and 21 Day Fix, but also our new BODi programming and the monthly release of new BODi blocks for general fitness consistency.”

Google searches

Daikeler pointed to data that revealed Google search traffic is up 287% in the first quarter over the prior year, as interested consumers have been looking up “BODi” using the search engine.

“Since the repositioning to BODi just in March, web traffic to our sites increased by 20% over February,” Daikeler said.

Plans to drive customer acquisition

Now that BODi and its offerings have been introduced, the company will focus on the execution of its go-to-market strategy, with Daikeler saying it’s time to “go on the offense.”

Since the company’s partner network forms the majority of sales generation, BODi has implemented new incentives to align its partners with its goal of driving subscriptions.

The company will host its annual Partner Summit in June, typically attended by around 10,000 partners. Daikeler said it will be an “immersive training” of the company’s network to align partners with its strategy and sales tactics to serve the “massive TAM of over 150 million people who are overweight or obese in the U.S.”

As for direct media acquisition, Daikeler confirmed that the company is working with an experienced social media and marketing agency to expand the reach of its message into TikTok and YouTube. Last month, BODi launched technology to communicate with customers through its app and text messages to boost customer engagement and build more targeted email marketing campaigns.

BODi’s view on a looming recession

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When an investor brought up recession risk and cited IHRSA research that showed the fitness industry declined in terms of memberships during the 2008-2009 recession, Daikeler responded that BODi is a “very cost-effective alternative to the gyms.”

“We think we’re well positioned for that with our holistic approach to fitness, nutrition and now, positive mindset masterclasses,” added Daikeler.

The BODi CEO and co-founder noted that his fitness and nutrition company has existed for 24 years in some form or another, demonstrating its longevity.

Daikeler said: “If you look around the industry of nutrition and fitness solutions, there aren’t a lot of companies that have managed to have that kind of stamina and innovate over and over again and this launch of the health esteem category and the BODI subscription. This will be our fifth big innovation as a company. We’ve run this playbook before.”

Could weight loss drugs be an opportunity for BODi to shine?

Daikeler sees the surge in weight loss medication as an opportunity for BODi.

For weight loss medication patients to have long-term success, they’ll need an opportunity to overhaul their lifestyle, which Daikeler says BODi can help provide with its tools, especially those focused on mental health.

“We are the holistic fitness, nutrition and positive mindset resource for people who need to change their lifestyle at the same time that they contemplate prescription medication,” he said. “So we’re really in this ideal position. It feels like everything that we’ve done for the last 24 years has led up to this moment.”

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