Life Time Reports 30 Percent Increase in Q1 2023 Revenue

Life Time, Chanhassen, Minnesota, reported first quarter 2023 revenue of $510.9 million, an increase of 30.2 percent from $392.3 million in first quarter 2022, the company announced on April 25.

Life Time also increased by $30 million its full-year adjusted EBITDA guidance to $470 million to $490 million.

Revenue increased due to strong growth in membership dues and in-center revenues, which included the continued ramp of centers and higher member utilization of in-center offerings, according to the company.

Net center memberships increased by approximately 39,000, which exceeded the approximately 25,000 increase in net center memberships during first quarter 2022. Total memberships, which includes digital on-hold memberships, increased approximately 9 percent to 813,500.

Life Time Founder, Chairman and CEO Bahram Akradi said: "We are very pleased with our start to fiscal 2023. We delivered record levels of revenue and adjusted EBITDA for the first quarter. We also delivered sequential revenue, profit and margin improvements over our strong fourth quarter 2022 performance. All of our strategic initiatives, together with our rewiring of the company, are delivering increasing revenue and higher margins. We are successfully opening new clubs, with faster ramping, in desirable locations across the country.”

Net income and adjusted EBITDA improved as the company experienced greater flow through of its increased revenue and benefited from its ongoing margin expansion efforts. Adjusted EBITDA increased by 195.8 percent to $120.1 million from $40.6 million in the same period. Net income increased to $27.5 million from a net loss of $38.0 million in first quarter 2022.

Center operations expenses increased primarily due to additional staffing requirements to support increased usage in existing and new centers, expanded programming, increased labor costs and utility cost inflation.

Life Time opened three new centers in the first quarter, bringing its total number of clubs to 164. The company plans to open seven additional new centers before the end of the year.