MINDBODY, San Louis Obispo, California, reported a 32 percent increase in third-quarter revenue to $46.6 million, according to financials released Oct. 26.
“We had a great third quarter highlighted by the early success of our refined subscriber growth strategy,” CEO Rick Stollmeyer said in a media release. “Our focus on adding the right customers that contribute significant wellness inventory to our platform is driving accelerated adoption of our consumer apps and the MINDBODY network.”
The software company's subscription and services revenue during the third quarter increased 34 percent to $28.3 million, while payments revenue increased 32 percent to $17.8 million.
MINDBODY’S end-of-period subscribers grew 1 percent year-over-year to a total of 59,028 worldwide. Average monthly revenue per subscriber also jumped 27 percent to $259, while payments volume increased 23 percent to $2 billion.
“We delivered strong financial performance in the third quarter, generating year-over-year revenue growth of 32 percent and record gross margins,” COO and CFO Brett White said in the release. “Additionally, due to the improving unit economics of our subscriber base and our continued financial discipline, we generated positive Non-GAAP net income for the first time.”
MINDBODY's adjusted EBITDA for the quarter was $2.5 million, compared to an adjusted EBITDA loss in the third quarter 2016 of $1.1 million.
MINDBODY's third-quarter growth follows a 32 percent revenue increase and a 31 percent revenue increase in the first and second quarters, respectively.
Looking forward, Stollmeyer said he expects fourth-quarter revenue in the range of $48.5 million to $49.5 million, representing 27 percent to 30 percent year-over-year growth. Year-end revenue for 2017 is expected to be in the range of $181.4 million to $182.4 million, or approximately 31 percent growth from 2016.
In other news, the MINDBODY Conference, BOLD 2017, was held in San Diego in September, attracting more than 1,300 attendees. Also this year, the company implemented new pricing technology in its MINDBODY App, allowing customers "to fill more spots in their classes and optimize their revenue by adjusting prices based on consumer demand," according to the release.