Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

16. Segment Information
 

The Company applies ASC 280, Segment Reporting, in determining reportable segments for financial statement disclosure. Segment information is presented based on the financial information the Company uses to manage the business which is organized around the Company’s digital platforms. The Company has two operating segments, Beachbody and Other, and one reportable segment, Beachbody. The Beachbody segment primarily derives revenue from BOD and BODi digital subscriptions, nutritional products, connected fitness equipment (bikes and accessories), and other fitness-related products. Other derives revenue primarily from Openfit digital subscriptions, nutritional products, and connected fitness equipment. The Company uses contribution as a measure of profit or loss, defined as revenue less directly attributable cost of revenue and certain selling and marketing expenses including media, Coach and social influencer compensation, royalties, and third-party sales commissions. Contribution does not include allocated costs as described below as the CODM does not include these costs in assessing performance. There are no inter-segment transactions. The Company manages its assets on a consolidated basis, and, as such, does not report asset information by segment.

Summary information by segment is as follows (in thousands):

	Segment
	Beachbody		Other			Consolidated
Three months ended June 30, 2022
Revenue	$	170,222	$	8,914		$	179,136
Contribution		37,607		(451	)		37,156
Three months ended June 30, 2021
Revenue	$	218,607	$	4,501		$	223,108
Contribution		49,545		(6,411	)		43,134
Six months ended June 30, 2022
Revenue	$	356,329	$	21,729		$	378,058
Contribution		65,698		(1,827	)		63,871
Six months ended June 30, 2021
Revenue	$	440,357	$	8,970		$	449,327
Contribution		96,020		(11,547	)		84,473

Reconciliation of consolidated contribution to loss before income taxes (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
Consolidated contribution	$	37,156		$	43,134		$	63,871		$	84,473
Amounts not directly related to segments:
Cost of revenue (1)		14,749			8,118			28,572			15,960
Selling and marketing (2)		21,762			20,872			48,081			40,963
Enterprise technology and development		24,133			26,949			57,830			54,038
General and administrative		19,584			17,231			39,657			35,177
Restructuring		1,332			—			8,555			—
Change in fair value of warrant liabilities		(2,070	)		(5,390	)		(2,334	)		(5,390	)
Interest expense		3			305			22			428
Other expense (income), net		(189	)		(1,654	)		(125	)		(2,953	)
Loss before income taxes	$	(42,148	)	$	(23,297	)	$	(116,387	)	$	(53,750	)

(1)Cost of revenue not directly related to segments includes certain allocated costs related to management, facilities, and personnel-related expenses associated with quality assurance and supply chain. Depreciation of certain software and production equipment and amortization of formulae and technology-based intangible assets are also included in this line.

(2)Selling and marketing not directly related to segments includes indirect selling and marketing expenses and certain allocated personnel-related expenses for employees and consultants. Depreciation of certain software and amortization of contract-based intangible assets and an acquired trade name are also included in this line.