Beachbody Reports 17 Percent Decrease in Q3 2021 Revenue

The Beachbody Company, Santa Monica, California, pulled in third quarter 2021 revenue of $208.1 million, a 17 percent decrease compared to third quarter 2020 but a 6 percent increase compared to third quarter 2019, the company announced on Nov. 15.

Carl Daikeler, Beachbody’s co-founder, chairman, and chief executive officer, said: "While we continued to execute on our strategy to drive growth, the third quarter proved more challenging than forecasted. Our results reflect a confluence of external factors, including softer at-home fitness demand as consumers grew tired of social distancing, and a challenging media environment that did not meet our disciplined ROI requirements, coupled with a short delay in product launches from September to October. Although our digital subscriber base remains strong and engaged with high levels of retention, we did not acquire new subscribers at the rate we expected.”

In addition to maintaining “disciplined cost control” in the quarter, the company is working to improve customer acquisition and lifetime value, getting back on course to driving profitable growth, Daikeler said.

The company, which began trading in June on the New York Stock Exchange under the symbol BODY, shared in its earnings report how third quarter 2021 compared to third quarter 2020 and third quarter 2019. In almost every case, the numbers were lower in 2021 compared to 2020 but higher compared to 2019.

Part of the decrease in 2021 compared to 2020 stemmed from lower digital revenue, which was $94.1 million in third quarter 2021, a 5 percent decrease compared to the same period last year but up 38 percent from third quarter 2019.

Despite lower digital revenue, digital subscriptions increased by 1 percent to 2.64 million—and compared to 2019, the increase was 55 percent. However, total streams decreased 26 percent to 35.9 million but that was still a 35 percent increase compared to the same period in 2019.

Connected fitness revenue was $5.9 million, compared to none in 2020, which preceded the Myx Fitness acquisition

The company sold approximately 14,700 bikes in the third quarter, but only 44 percent were delivered to customers, which determines when revenue can be recognized

Nutrition and other revenue added $108.1 million, a 29 percent decrease compared to 2020 and a 16 percent decrease compared to 2019. Nutritional subscriptions were 0.34 million, compared to 0.44 million in 2020 and 0.34 million in 2019

Net loss was $39.9 million, compared to net income of $13.8 million in 2020 and net income of $3.4 million in 2019.

Adjusted EBITDA was -$43.4 million, compared to $31.4 million in 2020 and $19.5 million in 2019.

On Oct. 19, Beachbody launched its live interactive premium subscription tier, Beachbody On Demand Interactive (BODi), which includes indoor cycling classes on the connected Myx fitness bike. The subscriptions are going for $19.95 per month as a premium subscription on top of the $99 annual BOD membership. However, revenue from this offering won’t be reported until fourth quarter.