MINDBODY Announces Q4 and 2017 Growth of 30 Percent, FitMetrix Acquisition

MINDBODY, San Luis Obispo, California, reported 2017 revenue of $182.6 million, a 31 percent increase year-over-year, making 2017 the "most successful year in MINDBODY history," co-founder and CEO Rick Stollmeyer said in a Feb. 21 financial release. The company also reported fourth quarter revenue of $49.7 million, a 30 percent increase over the fourth quarter of 2016.

“Throughout 2017, our platform delivered strong growth in total sessions booked, payments volume, and direct consumer engagement," Stollmeyer said. "We also saw rapid expansion of promoted introductory offer purchases and impressive early adoption of dynamic pricing in Q4. These results all point to the growing momentum of our transaction-enabled marketplace, which focuses on adding the right customers to our platform and promoting their offerings to an ever larger consumer audience."

MINDBODY's subscription and services revenue increased 34 percent ($29.9 million) for the quarter and 32 percent ($109.2 million) for the year. Additionally, payments revenue grew 25 percent ($19.1 million) for the quarter and 32 percent ($71.3 million) for the year. Year-over-year, MINDBODY reported drop in total subscribers—60,385 to 58,584—at the end of the fourth quarter.

On Feb. 20, MINDBODY also announced it acquired digital fitness tracking company FitMetrix, Atlanta, for an undisclosed amount.

“FitMetrix’s powerful and intuitive tools help our customers drive results and retention while providing their clients with a fun and unique approach to fitness,” Stollmeyer said in a separate media release. “Interactive engagement is the future of fitness, and we see some of our most successful customers integrating performance tracking technology into their studios.”

In his financial report, Stollmeyer said the acquisition gives MINDBODY new momentum for 2018 to "further engage with the best customers and accelerate consumer adoption."

"Our purpose is connecting the world to wellness, and we intend to help more people live healthier, happier lives than ever before," he said.

FitMetrix technology allows health club operators to integrate digital tracking software with cardio equipment so that members can monitor workout metrics. FitMetrix solutions can be flexibly branded to match the aesthetic of a particular club, while also offering members branded web and mobile applications.

“Together, FitMetrix and MINDBODY create a broader offering of services for class-based boutique fitness businesses, and further expands our reach into the broader fitness market,” FitMetrix CEO Monica Dioda said in the release. “Our class-based booking and performance tracking solutions can integrate with any fitness and wellness business management platform, allowing us to help even more people around the world connect to wellness.” 

MINDBODY is expecting first quarter revenue in the range of $53 million to $54.5 million, as well as full-year 2018 revenue in the range of $230 million to $236 million. Both projections represent at least 26 percent growth.