Despite streamlining the business in the first quarter, Beachbody, El Segundo, California, reported a 12 percent decrease in first quarter 2022 revenue. Revenue came in at $198.9 million, which also was a 6 percent decrease compared to first quarter 2019 prior to COVID-19, the public company announced on May 9.
The company, which went public in June 2021, also reported a net loss of $73.5 million, which was higher than its net loss of $30 million in first quarter 2021. In first quarter 2019, Beachbody had net income of $7.5 million in 2019. Its adjusted EBITDA was ($19.1) million, compared to ($11.7) million in 2021 and $22 million in 2019.
As part of its streamlining measures, Beachbody implemented a One Brand strategy that, along with its post-merger technology integration efforts completed in 2021, allowed the company to reduce headcount by approximately 10 percent in first quarter 2022.
In March when the streamlining measures were announced along with its fourth quarter and 2021 revenue, Beachbody said it would continue to review its organization to further streamline operations and reduce its expense profile to match demand environments.
The One Brand strategy consolidates the company’s streaming fitness and nutrition offerings into a single platform, Beachbody On Demand (BOD), and markets its connected fitness bike under the Beachbody brand. This consolidation will increase the strength of BOD’s platform with the addition of Openfit products and talent to BOD’s on-demand library, enhance the company’s value proposition to its customers and partners, and simplify its go-to-market strategy, the company said.
Despite these measures, the growth the company saw during the height of the COVID-19 pandemic when gyms were temporarily closed has not continued. Digital revenue decreased 14 percent to $81.7 million compared to first quarter2021. The company had 2.46 million digital subscriptions, a 10 percent decrease compared to 2021 but a 48 percent increase compared to 2019.
Digital retention also decreased to 95.6 percent month-over-month, which was a 20-basis point decrease compared to 2021 but a 60-basis point increase compared to 2019.
In the first quarter, Beachbody had 38.2 million total streams, a 32 percent decrease compared to first quarter 2021 but a 44 percent increase compared to first quarter 2019.
Connected Fitness revenue was $19.5 million compared to none in 2021, because the company purchased Myx Fitness later in 2021. Myx delivered approximately 16,600 bikes in the first quarter. On a pre-merger basis, Connected Fitness revenue was $14.7 million in first quarter 2021, with approximately 11,900 bikes delivered.
Beachbody’s nutrition and other revenue came in at $97.7 million, a 25 percent decrease compared to first quarter 2021. Nutritional subscriptions were 0.30 million, compared to 0.42 million in 2021 and 0.38 million in 2019.
Despite these numbers, Beachbody Co-founder, Chairman and CEO Carl Daikeler said he was pleased by the results because they were ahead of the company’s guidance and the company showed “strong growth” compared to its 2019 pre-COVID baseline in the areas of total digital and nutritional subscriptions.
“This momentum, coupled with a positive response to new launches, demonstrates our ability to quickly create demand through compelling content as well as the power of our synergistic approach that combines digital fitness, nutrition and community within a single ecosystem," he said in the announcement. "Our performance in a dynamic environment also reflects the resilience and agility of our content-driven business.”
Beachbody plans content launches throughout 2022. It also is focusing on disciplined marketing and efficient customer acquisition and is implementing its One Brand strategy along with other organizational efficiencies, he said.