Xponential Fitness Reports 2021 as ‘Milestone Year’
Fourth quarter and full year 2021 financial results are in….For a full year 2022, Xponential anticipates 81% growth in new studio openings
While the pandemic devastated many fitness businesses, Anthony Geisler, CEO of Xponential Fitness, has declared 2021 to be a “milestone year” for the global franchisor of boutique fitness brands. Geisler’s comments came during a recent earnings call in which Xponential Fitness announced its financial results for the fourth quarter and full year 2021. Xponential reported a 78 percent increase in revenue to $49.4 million.
Xponential Fitness, which operates over 2,100 studios in 12 countries around the world, also sold 846 franchise licenses and opened 282 new studios in 2021.
Here are some key financial highlights for Q4 & Full Year 2021:
Xponential Fitness Q4 2021 Compared to Q4 2020
- Grew revenue 78% to $49.4 million.
- Increased North American system-wide sales1 by 76% to $213.0 million.
- Reported North American same store sales growth of 53%, compared to a decline of 35%.
- Reported North American quarterly run-rate average unit volume (AUV)3 of $446,000, compared to $286,000.
- Posted net loss of $29.8 million, or $2.45 per share, on a share count of 22.6 million shares of Class A Common Stock, compared to a net loss of $5.1 million.4
- Posted Adjusted Net Loss of $6.1 million, or $0.21 per share, compared to an Adjusted Net Loss of $5.1 million.4
- Reported Adjusted EBITDA5 of $8.6 million, compared to $3.3 million.
Xponential Fitness FY 2021 Compared to FY 2020
- Grew revenue 45% to $155.1 million.
- Increased North American system-wide sales1 by 60% to $708.6 million.
- Reported North American same store sales growth of 41%, compared to a decline of 34%.
- Posted net loss of $51.4 million, or $2.85 per share, on a share count of 22.4 million shares of Class A Common Stock, compared to a net loss of $13.6 million.4
- Posted Adjusted Net Loss of $24.4 million, or $0.80 per share, compared to an Adjusted Net Loss of $24.6 million.4
- Reported Adjusted EBITDA5 of $27.3 million, compared to $9.8 million.
“Overall, in 2021, we were able to demonstrate the resilience of our business, and the momentum experienced in the fourth quarter places Xponential in a strong position in 2022,” Xponential Fitness boss Geisler said in a statement. “Our revenue and Adjusted EBITDA are significantly higher today than they were prior to the COVID-19 pandemic, up 20% and 66%, respectively, in 2021 vs. 2019. We enter 2022 with the largest studio count in our Company’s history and we anticipate opening over 500 new studios this year. We look forward to continuing to drive revenue growth and margin expansion as we scale our platform in 2022.”
Omicron was no match for XPOF
With the return to in-person fitness classes, active paying members & visitation rates grew by approximately 70% and 50% in the fourth quarter compared to the prior year, says CEO
Geisler stated on the earnings call that Xponential Fitness was able to finish 2021 with a strong fourth quarter and that the business remained resilient to the Omicron surge, as evidenced by increased visitation rates. “While Omicron continued to dominate the headlines early this year, we have experienced minimal impacts to our business and our growth momentum continues,” Geisler shared.
Geisler also nodded to the company’s successful IPO over the summer and a consistent growth in the Xponential membership base.
Looking ahead: Xponential’s plan for the future
XPLUS will launch this quarter & the franchisor expects to open 500+ new studios this year
Geisler stated that managing the health of Xponential’s franchise system is critical to the company’s long-term success, and he mentioned that a new digital platform, XPLUS, will provide live and on-demand access to workouts in studios around the world. XPLUS, which will provide B2B subscription options as well as the ability to book classes, is slated to launch this quarter.
XPASS was also mentioned by Xponential’s CEO, who described it as another key sales driver. With a monthly subscription, XPASS provides access to Xponential’s brands, and the global franchisor reports that XPASS has proven to be a great funnel for new customers.
Xponential intends to expand its franchise studio base across all brands in North America, and plans to expand its brands and studios internationally.
“We entered 2022 with the largest studio count in our company’s history and expect to open over 500 new studios this year. Opening over 500 studios in a year would be a company record and is a testament to our strong pipeline and the resilience of our franchisees that we have primed to achieve such a milestone. Today, we have over 1,800 licenses contractually obligated to open in North America,” Geisler shared.
Partnerships that are paying off: LA Fitness
Along with LA Fitness, Xponential’s newest functional training brand BFT is resulting in growth
Geisler also pointed to the recent partnership with LA Fitness as an ‘organic studio growth driver.’ With the partnership, Xponential Fitness has the exclusive right to open its brand studios within LA Fitness locations.
“We are providing existing franchisees who have an LA Fitness location within their protective territory the opportunity to open another Xponential studio within that specific gym location. We are still in the early stages of launching in these locations, but have already opened our first few initial studios and look forward to speaking more on their progress on future calls,” says Geisler.
Geisler also mentioned the welcoming of Xponential’s newest brand, BFT, which focuses on functional training. He shared that BFT added over 130 franchise studios in Australia, New Zealand, Singapore, and the US. BFT is now part of Xponential’s vast portfolio of brands that includes Club Pilates, CycleBar, StretchLab, Row House, AKT, YogaSix, Pure Barre, STRIDE, and Rumble.
“Our international growth also remains solid,” remarked Geisler.
Courtney Rehfeldt has worked in the broadcasting media industry since 2007 and has freelanced since 2012. Her work has been featured in Age of Awareness, Times Beacon Record, The New York Times, and she has an upcoming piece in Slate. She studied yoga & meditation under Beryl Bender Birch at The Hard & The Soft Yoga Institute. She enjoys hiking, being outdoors, and is an avid reader. Courtney has a BA in Media & Communications studies.