In its first financial report since going public, The Beachbody Company said it suffered a 17 percent decline in revenues to $208.1 million for the third quarter ended Sept. 30 because of a drop of 5 percent in online revenues to $94.1 million and a 29 percent decrease in Nutrition and Other revenues to $108.1 million. Also, fewer bikes than planned were delivered to customers.
As compared to the same quarter of 2019, total revenues were up by 6 percent with a 38 percent in the digital channel. Digital subscriptions of 2.64 million were one percent higher than a year ago and 55 percent higher than in 2019.
Echoing statements made by Peloton and Nautilus, the company blamed softer demand from the home fitness sector, “as consumers grew tired of social distancing,” among the factors that affected Beachbody’s lower-than-expected increase in new subscriptions. The number of streams was down by 26 percent to 35.9 million as compared to 2020, but 35 percent higher than in 2019.
The gross margin shrank by seven percentage points to 64.8 percent, leading the company to incur negative adjusted Ebitda of $43.4 million and a net loss of $39.9 million for the quarter against positive Ebitda of $31.4 million and net profit of $13.8 million in 2020. For the full financial year, Beachbody is forecasting an adjusted Ebitda loss of $100 to $110 million on sales of $820 to $830 million.
