UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
The information in this report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not to be incorporated by reference into any filing by The Beachbody Company, Inc. (the “Company”), under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing, unless otherwise expressly stated in such filing.
Item 2.02. Results of Operations and Financial Condition.
On August 12, 2021, the company announced its financial results for the quarter ended June 30, 2021. A copy of the company’s press release announcing its financial results and certain other information is attached as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
The following exhibit is furnished with this report:
| 99.1 | Press release dated August 12, 2021 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| The Beachbody Company, Inc. | ||||||
| (Registrant) | ||||||
| Date: August 12, 2021 | /s/ Sue Collyns | |||||
| Name: Sue Collyns | ||||||
| Title: President and Chief Financial Officer | ||||||
Exhibit 99.1
The Beachbody Company, Inc. Announces Second Quarter 2021 Financial
Results
Successfully Completed Three-Way Merger on June 25, 2021
Strong $347.2 Million Cash Position with No Debt
Strong Two-Year Growth in Revenue +21%, Subscriptions +55%, Total Streams +75%, and Engagement +330BPS
Poised to Accelerate Future Growth with an Additional 30% Increase in Bike Units, Launch of BOD Interactive, and Increased Media Investment in the Second Half of 2021
Santa Monica, Calif. (August 12, 2021) – The Beachbody Company, Inc. (NYSE: BODY) (“Beachbody” or the “Company”), a leading subscription health and wellness company, today announced financial results for its second quarter and six months ended June 30, 2021.
Beachbody completed a three-way business combination with Myx Fitness Holdings (“Myx”) and Forest Road Acquisition Corp. on June 25, 2021. Results for the second quarter and six months ended June 30, 2021 include five days of results for Myx.
“Over the last two decades, Beachbody has established itself as a worldwide leader in subscription health & wellness through the development of compelling digital fitness content and proprietary nutritional products that deliver results for millions of customers,” said Carl Daikeler, Beachbody’s Co-founder, Chairman and Chief Executive Office. “Completing our merger, adding connected fitness to the Beachbody portfolio, and bringing Beachbody to the public market has now set the stage for a multi-year period of accelerated growth,” he added. “The addition of Myx enhances our holistic approach to health & wellness and provides us with tremendous opportunity to serve our customers with the enhancements they have been asking for, specifically a high quality connected indoor bike and live content produced with the same innovation that has been Beachbody’s signature since the days of P90X. Looking ahead, we believe the business is poised to benefit from several drivers, including our first ever Beachbody brand advertising campaign, the launch of our new live interactive content subscription offering BOD Interactive (BODi), and the sell-in of the MYX bike to our customer base and powerful network of coaches and influencers.”
“We continued to execute to our proven business model during the second quarter, introducing new digital content and nutritional products that have been well received by our subscribers,” said Sue Collyns, Beachbody’s President and Chief Financial Officer. “However, the delay in closing our business combination resulted in us deferring $12 million of media investments and postponing the launch of the MYX bike within our coach ecosystem until the second half of the year,” she added. “Moving forward, we are well positioned to execute on our strategic objectives with over $347 million of cash on our balance sheet, a decision to ramp up connected fitness unit projections, and increase media investment by an incremental $33 million in the second half of 2021 compared to previous forecasts.”
“The digital disruption of fitness is here, unlocking and expanding the total addressable market. Beachbody is uniquely positioned at the forefront of three mega trends driving this shift—the rise of digital streaming subscriptions, the popularity of connected fitness and the heightened demand for effective health & wellness solutions,” stated Daikeler. “Beachbody has a proven approach, with entry points across multiple platforms and our long history of successfully acquiring, engaging and retaining subscribers. While we remain keenly aware that the near-term COVID variant and macro conditions present heightened uncertainty as we head into the second half of the year, I remain very upbeat on our long-term prospects and confident in our ability to scale the business and create significant shareholder value as conditions begin to normalize.”
Due to the impact of COVID-19 on second quarter 2020 results, the Company is also providing comparisons to the second quarter of 2019.
Second Quarter 2021 GAAP Results
| • | Total Revenue was $223.1 million, a 2% increase compared to 2020 and a 21% increase compared to 2019 |
| • | Digital revenue was $94.3 million, a 20% increase compared to 2020 and a 61% increase compared to 2019 |
| • | Digital subscriptions were 2.7 million at period end, a 13% increase compared to 2020 and a 61% increase compared to 2019 |
| • | 31.9% DAU/MAU, a 130-basis point decrease compared to 2020, and a 330 basis points increase compared to 2019 |
| • | 44.5 million total streams, a 20% decrease compared to 2020, and a 75% increase compared to 2019 |
| • | 94.9% month-over-month digital retention, 140-basis point decrease compared to 2020 and 30-basis point decrease compared to 2019 |
| • | Nutrition and other revenue was $128.8 million, an 8% decrease compared to 2020 and a 3% increase compared to 2019 |
| • | Nutritional subscriptions were 0.4 million, compared to 0.5 million in 2020 and 0.3 million in 2019 |
| • | Net loss was $12.4 million, compared to a net loss of $10.0 million in 2020 and net income of $19.6 million in 2019 |
| • | Adjusted EBITDA was ($4.4) million, compared to $0.9 million in 2020 and $17.7 million in 2019 |
Six Months 2021 GAAP Results
| • | Total Revenue was $449.3 million, a 16% increase compared to 2020 and a 14% increase compared to 2019 |
| • | Digital revenue was $189.5 million, a 34% increase compared to 2020 and a 52% increase compared to 2019 |
| • | Digital subscriptions were 2.7 million at period end, a 13% increase compared to 2020 and a 61% increase compared to 2019 |
| • | 33.5% DAU/MAU, a 190-basis point increase compared to 2020, and a 440 basis points increase compared to 2019 |
| • | 100.4 million total streams, a 13% increase compared to 2020, and a 93% increase compared to 2019 |
| • | 95.4% month-over-month digital retention, 20-basis point decrease compared to 2020 and 30-basis point increase compared to 2019 |
| • | Nutrition and other revenue was $259.9 million, a 5% increase compared to 2020 and a 4% decrease compared to 2019 |
| • | Nutritional subscriptions were 0.4 million, compared to 0.5 million in 2020 and 0.3 million in 2019 |
| • | Net loss was $42.5 million, compared to a net loss of $18.3 million in 2020 and net income of $27.1 million in 2019 |
| • | Adjusted EBITDA was ($16.1) million, compared to $3.6 million in 2020 and $39.7 million in 2019 |
Financial Performance Guidance for 2021 2
The merger between Beachbody, Forest Road Acquisition Corp., and Myx Fitness Holdings, LLC on June 25, 2021 occurred one quarter after the forecasted date and resulted in deferring $12.0 million of media investments to the second half of the year. With the merger complete, we now plan to integrate the content of both digital platforms onto the bike in September 2021. In addition, given our strong cash position of $347.2 million, we also plan to increase our media investment in the second half of 2021 compared to previous forecasts by $33.0 million, for a total of $189.0 million in 2021. Additionally, we are increasing our estimated connected fitness bike forecasts by approximately 30% to 95,000 units. While we expect these initiatives to drive long-term value, they are projected to negatively impact Adjusted EBITDA in the second half of 2021 as they are not forecasted to generate a meaningful in-year payback. Given the many consumer and supply chain variables created by the pandemic, we feel it is prudent to present a more conservative view with respect to our outlook for the remainder of the year. Accordingly, for the fiscal year ending December 31, 2021 the Company currently expects:
| • | Total revenue1 between $930.0 million and $960.0 million |
| • | Adjusted EBITDA1 between ($110.0) million and ($100.0) million |
| 1 | Total revenue and Adjusted EBITDA projects the post-merger consolidated revenue and Adjusted EBITDA ranges (with only six months and five days of Myx results in 2021 from 6/26/2021-12/31/2021). |
| 2 | Net loss guidance is not reasonably available due to changes in stock compensation, taxes and other matters that we cannot forecast at this time. |
Conference Call and Webcast Information
Beachbody will host a conference call at 5.00pm ET on Thursday, August 12, 2021 to discuss its financial results. To participate in the live call, please dial (833) 989-3106 (domestic) or (873) 415-0233 (international) and provide the conference identification number: 1094283. The conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/.
A replay of the call will be available until August 19, 2021, by dialing (800) 585-8367 (domestic) or (416) 621-4642 (international) and entering the conference identification number: 1094283.
After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year.
About The Beachbody Company, Inc.
Headquartered in Southern California, Beachbody is a worldwide leading digital fitness and nutrition subscription company with over two decades of creating innovative content and powerful brands. The Beachbody Company is the parent company of the Beachbody On Demand streaming platform (BOD), the Openfit live digital streaming platform and MYXfitness, the company’s connected fitness brand. For more information, please visit TheBeachbodyCompany.com.
Safe Harbor Statement
This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical facts and statements in future tense. These statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the full year, the potential impact of COVID-19 on the fitness and wellness industry in general as well as our business, our business strategy, our plans and our objectives and future operations.
Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; and litigation and the ability to adequately protect our intellectual property rights. You can identify these statements by the use of terminology such as “believe”, “plans”, “expect”, “will”, “should,” “could”, “estimate”, “anticipate” or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the “Risk Factors” section of our Securities and Exchange Commission (SEC) filings, including those risks and uncertainties included in the Amendment No. 5 to Form S-4 Registration Statement filed with the SEC on May 27, 2021, which are available on the Investor Relations page of our website at https://investors.thebeachbodycompany.com and on the SEC website at www.sec.gov.
All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements.
The Beachbody Company, Inc.
Condensed Consolidated Balance Sheets
Unaudited (in thousands)
| As of June 30, 2021 |
As of December 31, 2020 |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 347,229 | $ | 56,827 | ||||
| Accounts receivable, net |
3,165 | 855 | ||||||
| Inventory, net |
74,238 | 65,354 | ||||||
| Prepaid expenses |
10,438 | 8,650 | ||||||
| Other current assets |
46,286 | 37,364 | ||||||
|
|
|
|
|
|||||
| Total current assets |
481,356 | 169,050 | ||||||
| Property and equipment, net |
94,439 | 80,169 | ||||||
| Content assets, net |
30,955 | 19,437 | ||||||
| Intangible assets, net |
95,917 | 21,120 | ||||||
| Goodwill |
176,903 | 18,981 | ||||||
| Right-of-use assets, net |
29,366 | 33,272 | ||||||
| Other assets |
7,026 | 14,224 | ||||||
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| Total assets |
$ | 915,962 | $ | 356,253 | ||||
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| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 50,648 | $ | 28,981 | ||||
| Accrued expenses |
87,440 | 79,955 | ||||||
| Deferred revenue |
116,590 | 97,504 | ||||||
| Current portion of lease liabilities |
9,976 | 10,371 | ||||||
| Other current liabilities |
2,352 | 3,106 | ||||||
|
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|
|
|||||
| Total current liabilities |
267,006 | 219,917 | ||||||
| Long-term lease liabilities, net |
26,466 | 31,252 | ||||||
| Deferred tax liabilities |
7,977 | 3,729 | ||||||
| Warrant liabilities |
50,173 | — | ||||||
| Other liabilities |
5,887 | 2,097 | ||||||
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|
|||||
| Total liabilities |
357,509 | 256,995 | ||||||
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| Commitments and contingencies (Note 14) |
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| Stockholders’ equity: |
||||||||
| Preferred stock, $0.0001 par value; 100,000,000 shares authorized, none issued and outstanding as of June 30, 2021 and December 31, 2020 |
— | — | ||||||
| Common stock, $0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A, 200,000,000 Class X and 100,000,000 Class C); 166,925,632 and 101,762,614 Class A shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively; 141,250,310 Class X shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively and no Class C shares issued and outstanding at June 30, 2021 and December 31, 2020. |
31 | 24 | ||||||
| Additional paid-in capital |
597,598 | 96,097 | ||||||
| Accumulated other comprehensive loss |
(17 | ) | (202 | ) | ||||
| Retained earnings (accumulated deficit) |
(39,159 | ) | 3,339 | |||||
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| Total stockholders’ equity |
558,453 | 99,258 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 915,962 | $ | 356,253 | ||||
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The Beachbody Company, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
Unaudited (in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: |
||||||||||||||||
| Digital |
$ | 94,325 | $ | 78,357 | $ | 189,475 | $ | 140,882 | ||||||||
| Nutrition and other |
128,783 | 140,127 | 259,852 | 246,938 | ||||||||||||
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|||||||||
| Total revenue |
223,108 | 218,484 | 449,327 | 387,820 | ||||||||||||
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| Cost of revenue: |
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| Digital |
11,612 | 9,292 | 22,734 | 17,664 | ||||||||||||
| Nutrition and other |
57,158 | 50,097 | 114,153 | 90,572 | ||||||||||||
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|||||||||
| Total cost of revenue |
68,770 | 59,389 | 136,887 | 108,236 | ||||||||||||
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|||||||||
| Gross profit |
154,338 | 159,095 | 312,440 | 279,584 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Selling and marketing |
140,194 | 134,666 | 284,890 | 228,892 | ||||||||||||
| Enterprise technology and development |
26,949 | 22,373 | 54,038 | 43,706 | ||||||||||||
| General and administrative |
17,231 | 14,522 | 35,177 | 29,706 | ||||||||||||
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| Total operating expenses |
184,374 | 171,561 | 374,105 | 302,304 | ||||||||||||
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| Operating loss |
(30,036 | ) | (12,466 | ) | (61,665 | ) | (22,720 | ) | ||||||||
| Other income (expense) |
||||||||||||||||
| Change in fair value of warrant liabilities |
5,390 | — | 5,390 | — | ||||||||||||
| Interest expense |
(305 | ) | (248 | ) | (428 | ) | (343 | ) | ||||||||
| Other income, net |
1,654 | 34 | 2,953 | 442 | ||||||||||||
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| Loss before income taxes |
(23,297 | ) | (12,680 | ) | (53,750 | ) | (22,621 | ) | ||||||||
| Income tax benefit |
10,857 | 2,677 | 11,252 | 4,290 | ||||||||||||
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| Net loss |
$ | (12,440 | ) | $ | (10,003 | ) | $ | (42,498 | ) | $ | (18,331 | ) | ||||
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| Net loss per common share, basic |
$ | (0.05 | ) | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.08 | ) | ||||
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| Net loss per common share, diluted |
$ | (0.05 | ) | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.08 | ) | ||||
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| Weighted-average common shares outstanding, basic |
247,062 | 238,143 | 245,049 | 238,143 | ||||||||||||
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| Weighted-average common shares outstanding, diluted |
247,062 | 238,143 | 245,049 | 238,143 | ||||||||||||
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net loss |
$ | (12,440 | ) | $ | (10,003 | ) | $ | (42,498 | ) | $ | (18,331 | ) | ||||
| Other comprehensive income: |
||||||||||||||||
| Change in fair value of derivative financial instruments, net of tax |
(99 | ) | (217 | ) | (208 | ) | 193 | |||||||||
| Reclassification of losses on derivative financial instruments |
— | — | — | — | ||||||||||||
| included in net loss |
172 | (73 | ) | 339 | (47 | ) | ||||||||||
| Foreign currency translation adjustment |
12 | 49 | 54 | (327 | ) | |||||||||||
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| Total other comprehensive income (loss) |
85 | (241 | ) | 185 | (181 | ) | ||||||||||
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|||||||||
| Total comprehensive loss |
$ | (12,355 | ) | $ | (10,244 | ) | $ | (42,313 | ) | $ | (18,512 | ) | ||||
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The Beachbody Company, Inc.
Condensed Consolidated Statements of Cash Flows
Unaudited (in thousands)
| Six Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ | (42,498 | ) | $ | (18,331 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|||||||
| Depreciation and amortization expense |
25,941 | 20,678 | ||||||
| Amortization of content assets |
6,119 | 3,196 | ||||||
| Provision for excess and obsolete inventory |
2,791 | (76 | ) | |||||
| Allowance for doubtful accounts |
— | 32 | ||||||
| Change in fair value of derivative financial instruments |
169 | 199 | ||||||
| Gain on investment in convertible instrument |
(3,114 | ) | — | |||||
| Change in fair value of warrant liabilities |
(5,390 | ) | — | |||||
| Equity-based compensation |
5,095 | 1,908 | ||||||
| Deferred income taxes |
(11,349 | ) | (3,973 | ) | ||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
(2,007 | ) | (2,184 | ) | ||||
| Inventory |
(194 | ) | (2,477 | ) | ||||
| Content assets |
(14,237 | ) | (6,399 | ) | ||||
| Prepaid expenses |
(1,789 | ) | 6,502 | |||||
| Other assets |
(5,604 | ) | (5,487 | ) | ||||
| Accounts payable |
6,656 | (1,013 | ) | |||||
| Accrued expenses |
(461 | ) | 17,831 | |||||
| Deferred revenue |
16,547 | 40,502 | ||||||
| Other liabilities |
(2,162 | ) | (6,862 | ) | ||||
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| Net cash provided by (used in) operating activities |
(25,487 | ) | 44,046 | |||||
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| Cash flows from investing activities: |
||||||||
| Purchase of property and equipment |
(27,200 | ) | (18,756 | ) | ||||
| Investment in convertible instrument |
(5,000 | ) | — | |||||
| Equity investment |
(5,000 | ) | — | |||||
| Cash paid for acquisition of Myx, net of cash acquired |
(37,280 | ) | — | |||||
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| Net cash used in investing activities |
(74,480 | ) | (18,756 | ) | ||||
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| Cash flows from financing activities: |
||||||||
| Borrowings under Credit Facility |
42,000 | 32,000 | ||||||
| Repayments under Credit Facility |
(42,000 | ) | (32,000 | ) | ||||
| Business Combination, net of issuance costs paid |
389,775 | — | ||||||
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| Net cash provided by financing activities |
389,775 | — | ||||||
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| Effect of exchange rates on cash |
594 | (638 | ) | |||||
| Net increase in cash and cash equivalents |
290,402 | 24,652 | ||||||
| Cash and cash equivalents, beginning of period |
56,827 | 41,564 | ||||||
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| Cash and cash equivalents, end of period |
$ | 347,229 | $ | 66,216 | ||||
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| Supplemental disclosure of cash flow information: |
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| Cash paid during the year for interest |
$ | 283 | $ | 69 | ||||
| Cash paid during the year for income taxes, net |
$ | 198 | $ | 114 | ||||
| Supplemental disclosure of noncash investing activities: |
||||||||
| Property and equipment acquired but not yet paid for |
$ | 15,322 | $ | 3,103 | ||||
| Class A common shares issued in connection with the acquisition of Myx |
$ | 162,558 | $ | — | ||||
| Fair value of Myx instrument and promissory note held by Old Beachbody |
$ | 22,618 | ||||||
| Supplemental disclosure of noncash financing activities: |
||||||||
| Business Combination transaction costs, accrued by not paid |
$ | 650 | $ | — | ||||
| Net assets assumed from Forest Road in the Business Combination |
$ | 293 | $ | — | ||||
The Beachbody Company, Inc.
Adjusted EBITDA
In addition to our results determined in accordance with accounting principles generally accepted in the United States, or GAAP, we believe the following non-GAAP financial measure of Adjusted EBITDA is useful in evaluating our operating performance.
We define and calculate Adjusted EBITDA as net income (loss) adjusted for depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income taxes, equity-based compensation, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business.
The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of this non-GAAP financial measure to their most directly comparable GAAP financial measure. A reconciliation of the non-GAAP Adjusted EBITDA to GAAP measures can be found below:
| (in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net loss |
$ | (12,440 | ) | $ | (10,003 | ) | $ | (42,498 | ) | $ | (18,331 | ) | ||||
| Adjusted for: |
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| Depreciation and amortization |
12,215 | 10,534 | 25,941 | 20,678 | ||||||||||||
| Amortization of capitalized cloud computing implementation costs |
168 | — | 336 | — | ||||||||||||
| Amortization of content assets |
3,302 | 1,715 | 6,119 | 3,196 | ||||||||||||
| Interest expense |
305 | 248 | 428 | 343 | ||||||||||||
| Income tax benefit |
(10,857 | ) | (2,677 | ) | (11,252 | ) | (4,290 | ) | ||||||||
| Equity- based compensation |
2,522 | 1,013 | 5,095 | 1,908 | ||||||||||||
| Transaction costs |
1,509 | — | 2,142 | — | ||||||||||||
| Other adjustment items (1) |
6,038 | — | 6,038 | — | ||||||||||||
| Non-operating costs (2) |
(7,147 | ) | 60 | (8,478 | ) | 54 | ||||||||||
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| Adjusted EBITDA |
$ | (4,385 | ) | $ | 890 | $ | (16,129 | ) | $ | 3,558 | ||||||
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| (1) | Other adjustment items includes incremental costs associated with Covid-19. |
| (2) | Non-operating primarily includes the change in fair value of warrant liabilities, interest income and gain on investment in the Myx convertible instrument. |
Key Operating Metrics and Non-GAAP Financial Measures
In addition to the measures presented in our interim condensed consolidated financial statements, we are presenting Post Merger Operating Metrics for the three and six months ended June 30, 2021 and June 30, 2020.
The Post Merger Operating Metrics include the completed three-way business combination with Myx and Forest Road Acquisition Corp. on June 25, 2021 with results for the second quarter and six months ended June 30, 2021, including five days of results for Myx.
We are presenting this information to help readers understand the key operational and business metrics and non-GAAP financial measures in those respective periods.
The Beachbody Company, Inc.
| Key Operational and Business Metrics |
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| Post Merger | Post Merger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Beachbody | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 |
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Change v 2020 |
2019 | Change v 2019 |
2021 | 2020 | Change v 2020 |
2019 | Change v 2019 |
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| Digital Subscriptions (in millions) |
2.7 | 2.4 | 11% | 1.7 | 59% | 2.7 | 2.4 | 11% | 1.7 | 59% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nutrition Subscriptions (in millions) |
0.4 | 0.5 | -12% | 0.3 | 23% | 0.4 | 0.5 | -12% | 0.3 | 23% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Subscriptions |
3.1 | 2.9 | 7% | 2.0 | 53% | 3.1 | 2.9 | 7% | 2.0 | 53% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Digital Retention |
94.9% | 96.3% | (140bps) | 95.2% | (30bps) | 95.4% | 95.6% | (20bps) | 95.1% | 30bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Streams (in millions) |
44.4 | 55.5 | -20% | 25.5 | 74% | 100.4 | 88.7 | 13% | 52.0 | 93% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DAU/MAU |
31.9% | 33.2% | (120bps) | 28.6% | 330bps | 33.5% | 31.6% | 200bps | 29.1% | 440bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Connected Fitness |
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| Digital Revenue |
$94.2 | $78.4 | 20% | $58.8 | 60% | $189.4 | $140.9 | 34% | $124.8 | 52% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nutrition & Other Revenue |
$128.8 | $140.1 | -8% | $124.9 | 3% | $259.9 | $246.9 | 5% | $269.9 | -4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue (millions) |
$223.0 | $218.5 | 2% | $183.7 | 21% | $449.3 | $387.8 | 16% | $394.7 | 14% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) (millions) |
($12.1 | ) | ($10.0 | ) | -21% | $19.6 | -162% | ($42.2 | ) | ($18.3 | ) | -130% | $27.1 | -256% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA (millions) |
($4.1 | ) | $0.9 | -557% | $17.7 | -123% | ($15.8 | ) | $3.6 | -544% | $39.7 | -140% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Post Merger (includes 5 Days After Merger Date from 6/26-6/30) | Post Merger (includes 5 Days After Merger Date from 6/26-6/30) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Myx Fitness | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | Change v 2020 |
2019 | Change v 2019 |
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2021 | 2020 | Change v 2020 |
2019 | Change v 2019 |
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| Connected Fitness Units Sold (in thousands) |
0.5 | — | — | — | — | 0.5 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Digital Subscriptions (in thousands) |
41.6 | — | — | — | — | 41.6 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nutrition Subscriptions (in millions) |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Subscriptions (in thousands) |
41.6 | — | — | — | — | 41.6 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Digital Retention |
95.0% | — | — | — | — | 95.0% | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Streams (in millions) |
0.04 | — | — | — | — | 0.04 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DAU/MAU |
23.4% | — | — | — | — | 23.4% | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Connected Fitness |
$0.011 | — | — | — | — | $0.011 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Digital Revenue |
$0.077 | — | — | — | — | $0.077 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nutrition & Other Revenue |
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— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue (millions) |
$0.1 | — | — | — | — | $0.1 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) (millions) |
($0.3 | ) | — | — | — | — | ($0.3 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA (millions) |
($0.3 | ) | — | — | — | — | ($0.3 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Post Merger (Includes 5 Days of Myx Results from 6/26-6/30) |
Post Merger (Includes 5 Days of Myx Results from 6/26-6/30) |
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| Consolidated |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
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| 2021 | 2020 | Change v 2020 |
2019 | Change v 2019 |
2021 | 2020 | Change v 2020 |
2019 | Change v 2019 |
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| Connected Fitness Units Sold (in thousands) |
0.5 | — | — | — | — | 0.5 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Digital Subscriptions (in millions) |
2.7 | 2.4 | 13% | 1.7 | 61% | 2.7 | 2.4 | 13% | 1.7 | 61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nutrition Subscriptions (in millions) |
0.4 | 0.5 | -12% | 0.3 | 23% | 0.4 | 0.5 | -12% | 0.3 | 23% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Subscriptions |
3.1 | 2.9 | 9% | 2.0 | 55% | 3.1 | 2.9 | 9% | 2.0 | 55% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Digital Retention |
94.9% | 96.3% | (140bps) | 95.2% | (30bps) | 95.4% | 95.6% | (20bps) | 95.1% | 30bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Streams (in millions) |
44.5 | 55.5 | -20% | 25.5 | 75% | 100.4 | 88.7 | 13% | 52.0 | 93% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DAU/MAU |
31.9% | 33.2% | (130bps) | 28.6% | 330bps | 33.5% | 31.6% | 190bps | 29.1% | 440bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Connected Fitness |
$0.011 | — | — | — | — | $0.011 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Digital Revenue |
$94.3 | $78.4 | 20% | $58.8 | 61% | $189.5 | $140.9 | 34% | $124.8 | 52% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nutrition & Other Revenue |
$128.8 | $140.1 | -8% | $124.9 | 3% | $259.9 | $246.9 | 5% | $269.9 | -4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue (millions) |
$223.1 | $218.5 | 2% | $183.7 | 21% | $449.3 | $387.8 | 16% | $394.7 | 14% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income/(Loss) (millions) |
($12.4) | ($10.0) | -24% | $19.6 | -163% | ($42.5) | ($18.3) | -132% | $27.1 | -257% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA (millions) |
($4.4) | $0.9 | -593% | $17.7 | -125% | ($16.1) | $3.6 | -553% | $39.7 | -141% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Source: The Beachbody Company, Inc.
Contact:
Media
ICR
BODYPR@icrinc.com
Investor Relations
Edward Plank
eplank@beachbody.com
ICR
BeachbodyIR@icrinc.com
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