YogaWorks Reports 2018 Revenue Growth Despite Q4 Decline

YogaWorks Inc., Los Angeles, reported 2018 revenue of $59.6 million and fourth quarter 2018 revenue of $14 million, according to financials released March 27. This represents an increase of 9.3 percent and a decrease of 3.4 percent, respectively.

YogaWorks CEO Rosanna McCollough said 2018 was a pivotal year for the company defined by strategic initiatives that are intended to improve YogaWorks' financial performance in 2019.

"We renewed our focus on our membership strategy; sharpened our pricing and promotional offering; implemented centralized training and metrics; and took steps towards optimizing our studio footprint," McCollough said in the media release. "With a stronger base business, I am excited about our future and happy to see 2019 is off to a great start. This year, our priorities include driving improved performance in our base business, continuing to optimize our studio portfolio, growing teacher training and expanding our digital business. We plan to resume studio growth when the time is right. I am confident that the actions we are taking will enable us to drive healthy revenue growth and improved EBITDA margins over the long term.”

YogaWorks' adjusted net loss for the year was $14.4 million compared to $11.7 million during 2017. For the quarter, adjusted net loss was $3.8 million compared to $3.5 million for the same period last year.

Adjusted EBITDA for the year was a loss of $6.3 million versus a loss of $1.2 million in 2017. During the fourth quarter, YogaWorks reported a loss in adjusted EBITDA of $2.1 million versus a loss of $1.1 million during the same period in 2017.

The company closed one studio during the fourth quarter, ending the 2018 with 69 studios across nine regional markets.

For the first quarter of 2019, YogaWorks expects net revenue of at least $15.25 million with a loss in adjusted EBITDA of no more than $1.5 million. For the full year of 2019, the company is targeting net revenue of at least $60 million with an adjusted EBITDA loss of no more than $6 million.

YogaWorks completed its initial public offering in August 2017.