The Beachbody Company, Inc. (BODI) 14 Aug 212021 Q2 Earnings call transcript

Good morning. Good afternoon. Good evening. My name is Katherine, and I'll be your conference operator today. At this time, I would like to welcome everyone to The Beachbody Company Second Quarter Fiscal 2021 Earnings Call. placed to been noise. any have lines on prevent mute background All the be will remarks, question-and-answer After there a speakers’ session. [Operator Instructions]. I VP turn Plank, would the conference over to now to Beachbody of Group Relations. Investor like Eddie Mr. begin may you your Plank, conference.

Good Financial call our call. quarter for joining and second Officer Carl is Collyns, And Officer. Daikeler, afternoon, and on and XXXX Sue the of Chief thank Executive everyone. me for us you With today earnings Chief Co-Founder, President Chairman Beachbody;

remarks, we'll prepared the call Following questions. Sue's Carl's open up for and

get Actual started, the forward-looking call constitute may we such future in The I suggested Before facts may from remind the those due would uncertainties. to conference you company's risks statements materially statements like of which this results of language. statements historical deemed securities to are within litigation not XXXX. Safe meaning differ Harbor in a private be and the number to contained of reform of act

the company's within the adjusted measures All of references which most measures as the financial such which reconciliation with will measures, website. call be release. available our release, to financial are includes the comparable on to non-GAAP include EBITDA. is described filings press Today's GAAP the today's these SEC, earnings financial non-GAAP of in can A which found

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with Company. the of on near on efficiently in excited levers now that watching significant value of optimistic substantial and financial we I'm allocate to the multiple what's long drive and long-term doubt, resources acceleration, with more most to long-term. over right entry prospects present the and we're basis best quote, very impact some And for and The many the revenue earnings combined confident acquiring, business people more business. consumer for retaining a our day-by-day we're the millions ahead way about business the we of our have growth macro platforms reacting of couldn't engaging in for to across foundation importantly, I do successfully the both capital we summary, No a built its will and shareholder said, tens the unknowns, strong predictability term backdrop behavior a healthy. Beachbody I the will and and provides for that be challenging that lies volatility help get what create deploy our won't scale history customers. current which to environment. So, does sugar points

and Sue to quarter guidance So second I'll for fiscal turn XXXX. results to the discuss remainder the of over call the now our

good much, months for start our six a year. share Carl, quarter review full very and guidance everyone. second and results then afternoon, I'll and with to June Thanks our the XX, of

mentioned, and quarter ended months combination and Carl Myx five As only Holdings the included Fitness Forest result, business with second completed our for XX three-way XXth. June Myx. Acquisition Corp. the And was financials Road as June for got the of results a days six on I've

available our SEC, Form Relations our results, section with details full filed please on which the financial release website. and press earnings are our refer to Investor of XX-Q For regarding

begin, year a would like results I impacted few data full quarter just in updating have on us I our XXXX table set resulted that guidance. second Before the and points

resulted First, of consumers with began why is the home, share be the last thought quarter beginning challenging year’s which XXXX to it environment comparisons activities as in pre-COVID COVID period helpful the second context. would engage to XXXX, we additional outside in as

quarter second delay deferring quarter this of This of with the merger in and the the million QX of momentum of half forecasted the subscriptions digital media closing previously Second, corresponding $XX end a Myx the of impacted the second XXXX. in and half resulted toward investment year. previously our momentum until approximately second into sales the planned our

Finally, transparency important has extremely been to us.

quote point is other by Carl's behavior reinforce we environment, guidance. volatility won’t XXXX the which me conditions, COVID of consumer updating macro the year and variants nor let created our full and sugar we're current that So uncertainty why

Shakeology, XXXX of compared XX% with turning $XX.X revenue a X% QX a a digital XXXX Now, Nutrition other X% a year-over-year second shift the quarter revenue of $XXX.X a additional and product nutritional to information compared QX to to and decrease was QX by an strong million, of XXXX second in XXXX Myx primarily to SEC forma XX% increased to filed revenue On was the which quarter results. three Total increased allow to of QX by X for we period million, pre-merger $XXX.X our of pro 'XX, basis, Item with decrease XX% XX-Q, year-over-year our pro revenue This XXXX This and compared a our increase increase increase we’ll in which total but to to increase historical from compared to by QX continue performance XX% including and the X% in driven X% revenue revenue the of included forma of month of the increased QX and quarter was line. pre-merger compared XXXX. to diversify compared digital driven million today. of on to reconcile QX QX from you second XXXX. with over will but quarter $XXX.X XXXX, of increased to XXXX. million of but

GAAP in of quarter. the accounting include close only $XX.X Myx recall full versus QX revenue $XX,XXX date XXth Myx June allows combination You'll the the our the for revenue to of million for and generated business of us

pre-merger KPI to increased Following a results year that Myx, on digital a QX XX,XXX for to X,XXX versus subscriptions same digital XX,XXX and year Myx ago. from X,XXX ago, subscriptions sold bikes

last digital the turn two subscriptions second KPIs to up increased basis. Now, our on XX% year like subscribers a I'd for are X.X and to million year, Compared XX% to quarter. digital to

down or were with XXXX. points which user DAU/MAU user, XXXX, year, streams was engagement, of digital basis active up XX% In important but of versus to year, quarter last the XXX points but an active metric XX% compared basis while versus prior XXX we up second down daily engagement versus terms is follow monthly

$XXX.X margins decline shift prior P&L, was the margins sales year-over-year with a XX%, freight to XXXX. of charge composition, X% compared of of million prior to result associated of XX% in $XXX.X as other our operating Digital $X.X gross the were fulfillment gross to and and period, totaled excluded while other consistent down XX.X% $XXX.X The gross And largely remained decrease million, to our QX period. a adjusted with XX.X% along EBITDA this and the shipping compared nutritional expenses profit or higher XX% approximately million in costs million, revenue COVID Moving of is disruptions. or the a $X.X compared in due in calculation. revenue in year related million

one, development; one consultants by promotions of and costs. selling with operating associated fall into I'll line. two, events, marketing each areas: and related and Our administrative and coach expenses general employees with as line technology for and expenses as these now include the marketing; them And advertising, Selling well enterprise areas. take cost three personnel expenses three, primarily and compensation, and

expenses $XX.X to related revenue growth. was to of with also QX due compared $X.X added transaction as adjusted for or remaining revenue of The $XX.X or back increase expenses mainly non-refundable $XXX.X system increase million second $X.X to or which and the to to or of revenue restrictions, totaled was totaled The due XX% for million teams of the business analytics to expenses infrastructure increase not due relate headcount million primarily enterprise the COVID of million canceled These quarter, XX.X% or to our sales event, that and support Enterprise, costs, personnel was EBITDA well million and which million year. balance sales primarily year. expenses. and $XX.X data, charge adjusted X.X% related XXXX, personnel a of deposit in expenses additions quarter supports selling excluded EBITDA which administrative General and million development as general technology in For related $XX.X future million that's our X.X% The due prior million is and general revenue XX% marketing $X.X drive $XXX.X also is to last revenue future [XX.X%] expenses increased products. merger of calculation. additions technology to directly XXXX. was revenue of the for acquisition. million, to a in our compared higher in or marketing of customer from $X.X to totaled the and was corporate The of due to

in value fair on liabilities. the of change warrant Moving to

there many equity for was earlier year, As announced from accounting this recall, liabilities. may change an you to warrants to of account

totaled $X.X million second our the investment on a million to $XX the equity warrants back and of convertible QX merger that the This to converted of also quarter, XX-Q triggered merger merger release related in net no fair of found XXth. versus the gain in gain press expense of to adjusted the a million reconciliation normal was of income high also capital Interest post was EBITDA [XX.X June million] the which our to to XXth by is driven our We $XXX,XXX Other was non-cash realized the the versus June Myx in in tax in needs $X.X of quarter, totaled income of for the our result the which primarily such, As added $XXX,XXX and and million with liability the QX interest in merger. period instrument date benefit filing. the non-cash change for from XXXX, benefit date similar of accounting non-cash working borrowings end XXXX. related revolver. $XX.X value income and modestly with on

recorded not or million, normal necessary loss depreciation calculate content operate for operating last net income to equity-based expenses million loss recurring company's amortization, that or net as I'd are business. compensation in net move assets, $XX.X EBITDA, result, and expense, taxes, to of And a income amortization which define now of interest the of other and adjusted like adjustment we on quarter to items year. loss and the As to adjusted we a $XX second a to compared

quarter of Our for EBITDA $X.X $XXX,XXX second totaled adjusted million, loss a compared quarter in profit to the of the XXXX.

increase first our period was for ended total months XXXX, the to review million, the XX% revenue of six a months the increase a a XXXX. to $XXX.X June XXXX XX% to Turning in and of of results six compared compared same

the six restrictions, in XXXX. benefited revenue we saw QX and XXXX, which the customers versus of quarantined increase an inside first COVID quarter from pre-merger largely their homes, months of XX% Over mandated

for compounded $XXX.X predictable months XX% consumer pre-merger eased increased behavior total quarter, the million. second ended a restrictions June combined pro period those which comparison. forma in six an less to XX, revenue was challenging already As and basis, On the

only which because as mentioned, we XX% June year-over-year, reviewed other we us X% as XX% decrease And for However for XXth XX% period, period, a million, the days mentioned of a X.X to and revenue a for subscription to previously is XXXX revenue is nutritional month XXXX. totaled a as the in products. bundled above. a $XXX.X totaled Digital $XXX.X $XX,XXX, XX% as the same which million our date XXXX. totaled allows quarter diversified other in the same same totaled XXXX of period just XXXX. increase recognize pro due the $XXX.X Myx, in Digital combination million, X and post-merger a increase business to compared increase increase compared the higher to to X% Nutrition and to compared XX% and XX% change million, increase the the revenue period than forma increase or revenue I composition, just of compared to sales compared to XXXX six compared

over compared XX.X% XX half XXXX which and basis Month to increase increase compared was XXXX. month of increase and to XX XXXX. digital is million, basis a point XXXX. XX% $XXX.X compared the compared a was retention totaled compared to increase a DAU/MAU XX.X% increase to year-to-date basis basis Our point to year-over-year point XXX a decrease first XX% XXXX and Streams a XXX points

nutrition and and million compared XXXX. to in XXXX in Nutritional X.X million our component totaled million other of X.X X.X Regarding subscriptions revenue. revenue

in product aforementioned year operating from the to the due XX% fulfillment million totaled Consolidated personnel shipping, million in an costs. and increase prior increasing XX% was $XXX.X XX% totaled XX% XX% margins versus declining Total XXXX. digital margins XX% XX% nutrition XX% to increased mix changes from to margin dollars profit and compared and the over gross a other increases Our with gross to prior gross $XXX.X period expenses period. and

revenue As a $XX XX.X% over expenses driven as spend million a while of spend sales, in period, to percentage periods. operating typically with associated total the increase versus year that entire media subsequent increase occurs was percent the compared were variance by prior XX.X% in the XXXX

compared the net net net XXXX for of $XX.X was of first to loss XXXX million million Our loss in half of in $XX.X income XXXX. and a million $XX.X

EBITDA $XX.X million XXXX $XX.X of in of in $X.X half loss compared Our adjusted adjusted to million XXXX. of EBITDA of the and first million in XXXX

Our XXX the June day shares were shares This XXX.X in averages for three period. as occurred only stockholder the outstanding shares calculation shares the and and the from additional approximately merger ended outstanding six on reported table, XX, XX XXth, million for of and million that merger. June our differs the X million days average the equity the had as XXX months from XXX shares weighted given recall, calculation And you’ll respectively.

to our on Turning balance sheet.

the the us totaled as our and investments full The million, of equivalent XXth, as to across, strategic the to year initiatives As of reflecting balance XXXX our growth in guidance. the over June turn to connected proceeds no strength and increased like other $XXX.X marketing ahead. XXXX our I'd of and debt. now fitness the very remainder digital, positions merger sheet in cash well And fund nutrition and from years cash well

with executing strategic the of a our on into As quarter communicated previously we initiatives, second we're year, delay. head albeit the half

Interactive week Carl will improved these the $XX BOD million be We campaign that a with additional and September the platform term his the brand launch in with starting mentioned in media of long in results comments. expect in next the

million for deferred was is first million spend opportunistic the of of the from term. the XXXX remaining $XX $XX million, fact $XX and incremental half that and In long

for term in have global fitness connected sales units. a which impact be in believe year full for and months from gross use supply challenges we first build we to resulted our will at do for least adjusted short increasing be XX,XXX bike each units XXXX. margin cost XX,XXX unit inventory EBITDA expense what to Higher quarter we're expect increase freight negatively and forecast XX and of a Additionally, as cash, chain bike, we the

are this our sales investment of investment increased growth investments investments will bike line supports in EBITDA experience increasing our the anticipated to value meet subscriber term best our and for with lifetime both plan. how strategic retention, However, and than and impact negatively longer adjusted engagement profit rather demand Both the the and year. unit and year goal customers media in creating

Additionally, with of year, year. Accordingly, opting the for our to of $XXX and the million million a total between the of to negative revenue between outlook $XXX loss now are $XXX EBITDA we the by created due lingering forecasting are conservative for view remainder adjusted and more we respectively. GAAP uncertainty full $XXX million respect to the pandemic, million for

Moving CapEx. on to

our proprietary hosting $XXX making full the result BOD a for improvements Interactive to capital launch content our increased Myx and As groups, are touch we're forecasting approximately integrate we year. of to platform stream, expenditure on million of investments BOD make the

Finally, I'd before important like to Q&A. point we reinforce to move one

uncertainty regarding the given lines be to merger, our for felt we please strategies, trends important very long-term approach prospects. open questions. the consumer a our operator, of the with was delay term it near we business, remain that our conservative transparent While in secular more adopt and and of And confident the

from question first our And instructions]. [Operator ma'am. Jonathan of you, Komp Thank Baird.

question. ask your may You

when and first could you the back just you're talk the maybe the to any and core I into of about of plays what a thoughts out, consumer, the seeing volatility, current ask, of more seeing in bit little that how environment, share half some guess the I question more from really you're here? about wanted what you

free in. I’m Carl then feel jump happy Sure, and to to respond

the current to activity. of terms and and we're also like So that, relative point trends year August and I’d front actually talk about the seeing of -- in part some July to

of the -- part than And actually side, us. Beachbody -- our very strong mix. within be on we less year was very front to the were X% budget of revenue So clear, for was

side we're So, the the actually target well. we ramping executing very media our now $XX the intent is And from of beat that launched our some up of media from by EBITDA we've also bikes, of revenue and essentially purchase on has a course, the result we coaches million. MYX delay. on now got on increase us initiatives. target the time doing to forecast. course, side, increased which product on We're and the And on are new hit The additional that involved releases

as And into that example, until still of is for also at in campaign as points subscribers, some revenue that this it's the volatility up strong. later very of in take is terms couple metric, you half timing year basis very insights to that some XX months or in momentum, week, our is incrementality the an July build see a first over next base by look to year of The earlier below launching prior launching, of to is forecast points, really really I but to forecasted was XXXX. share reflected which strong. isn't DAU/MAU is but which strong. difference Retention, XXX that basis So, week,

actually August our far, below and it's stream, [XX%] COVID that second know had the XX better QX with you were XXXX. So July XXXX. far points XXXX might are better spike in half of and we streams year, basis a peak the a But prior than over in points than basis XX peak, XXXX. so And

terms the is really very up you is see driven that And holding media by of in essentially deferral. So, reduction business well. that what revenue

that, also in the -- has that Yes, ripple we which in-year. how a actually -- transaction, the a and think despite marketplace of the into on bit I delay put things on effect can the

times follow people At just very it. so based not started by honestly, about said, incredibly late get layer super until just the feedback indications introduce we've the get in September. are is access the we're or positive addressable market, It bike And ever a a that positive. total That want all not underway. and we've business. times really of why Unfortunately, the evolving a trainers to know have seeing that that who we're subscription had program, subscriber. recall market same very we be the which and of we Beachbody's we're to testing to On followed. that is idea people started if business we're and a fitness now home, like very which live, of on that including from what We out or the the And that and to of But that their to dynamics delayed beta we're quite week. quarter, of work the X feel this be this the forecasts not now an is it's that strong traditional presentations, large reaction model this has those base And the to in Beachbody view maybe the in with X that taking month, this be of who because intent but might And also variants have for the time, we've to we'll subscription launch went additional we've some BOD able out got first round Interactive, upgrade everyone couple round XX are just beta of that Fix, are excited for a is I for PXXX additional calling that times earlier increased a just to test, they, day. but adding up opens good gotten lets to about layer the excited we're people basically that there now anticipation every weeks, Day want to tier Demand Beachbody very week. the to an you On because a are last base they a going $XX.XX purchase time uncertainties a a middle by and few into our surveys work feedback our appealing or of INSANITY the Demand, able few on

play, -- approach the we But, we nonetheless, wanted to feel very we've is doesn't overpromise. deal. an into transparent good So about take get that and finally put just the initiatives closed that now to we that

more the you there maybe of guidance. helpful. is embedded guidance And that second how sort Can half. -- second year very revenue forward the half total, maybe sort second so crafted in the looks know two the Myx thinking That's of rate. it growth acceleration you're any to of half thoughts I and for including And you an a the like in share

the So incremental the maybe any that second we crafted the further thoughts biggest in you expecting? should you're growth about drivers initiatives just path? mentioned, you terms how on think of of And how then

the mentioned, bike as incremental and the ecosystem. both And Most subscriptions. The Beachbody important are you of Openfit drivers introduction the always into ecosystem

Demand performed or And so, additional Demand the good first months that of Beachbody in that on that -- presented. the On reflected Demand expected as, might've into to Beachbody database, feedback of we've Interactive. seen On in as than and is current perhaps of we've started upgrade has Likewise, gotten subscriber from a the gotten based the this has that Beachbody Sue better confidence month, On an that certain degree conversions numbers message $XX.XX we've a The we've we

that we've a of to Jacobs, who popular strong introduction enthusiasm Finally, the created the she one, are and of the in what XX-minute of is lexicon a a program sort of used which around job formula was really program early very if be you’ll coming out a She concept years. Jennifer over December, recall, super called Peloton trainer we've that -- which the month instructor. gotten workouts, has long

the clear launch purchase in late those forward using the early to together, trying like I and these that we're that in multiple all sudden program not than is about it's bike, that indications currently there rather put more to and overpromising. are confidence the And that numbers than getting of said, on Demand go things understand of we're indicate the change. expecting ball these a to of the and initiatives how adding dynamics the those of crystal November, Or that could intent gave we -- it new three really us But have we with December, adjusting it's looking going dynamics and various sort at behavior it's we're on. things. Beachbody On And all current the we It's the number that Interactive. be most is a forecast,

of next coming in half I the in between QX course will. forecast, in, right, those media million, week, think of and campaign this year, math, We to mentioned And media results QX. I down momentum is have in and essentially in as that the have had occurring XX% not of do the that, $XXX June, revenue the is able to though and second being driven of subscribers prepared between and in any the behind for one to this the take week, as a launching of the budgeted campaign I really mathematically, us otherwise only a the even $XXX call addition the revenue would But because get occurring to fourth the with And million because quarter. on anticipate later pulling remarks revenue would subs balance early reason July, you'll it's going the while, don't reduction that. in be until

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from gauge that how then the should the that marketing and Maybe volatility Or of to just comment the other for relative a maybe you're some what's expecting driving we last And accelerated your ramp on how confidence me. investments? overall should view When about see here we more expectation payoff seeing? we that to in you initiatives, the one think you're the investment Is benefit? plans should investments? just some ‘XX the

down material Yes, mathematically, is also which in corresponding why we way benefit I'm pulled EBITDA that in from not a a financial XXXX, guidance. expecting

XXX million from That's drivers. result up, year. not negative incrementality basically million. to $XX like driving as broken this million EBITDA now bridge So range of negative have a to to incremental that the and is of the of media XX loss in that terms XXX One of expecting million three we of

mid-teens. Myx the right reduced the And real flows revenue QX, three, subscribers. through that margin we but have we'll 'XX. Two, over And now. on see that pressure mid-teens help Just in reality about the of the goods we really had expecting us in do in costs bit it In to revenue. it a a to drive us about in budget XX% of

So that versus some top we're work in in same of approach performance CAC that EBITDA. terms doing the have some of But of we're to based funnel the the LTV marketing the awareness brand spending to in expecting dollars, term and disciplined that media of that's awareness of approach and to now, have adopting we doing money we to impacting XXXX. always we're the most accrue brand terms

iterative we've always got the that testing I'll add. ongoing which We've also way, wins we is operated. are Yes, how seeing along

over the So conversion time, more efficient. course we to efficiencies we’ve starts stabilize, of that's order and And just that those spending. into of visits, roll seeing efficient click so media to always and the where more way productive the we efficient business we're wins. marketplace ratios then get and as And run so media to volatility more on the get our in

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next And Heinbockel John from our question of Guggenheim. we

year to is likely start an the million of want right, is you so various do And think payback how investment, where's the or right I the about allocating an next you Carl, brands? that to two? the biggest with, when $XX BOD incremental Myx about over opportunity, think And opportunity.

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they're will people So talking recognize. brand a actually about that

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the it's media say half of side the in of terms Openfit XX-XX Myx just in and I'd the mathematically, the And sort of business of year. versus Beachbody between the investment in split second the about the

real Digital And I middle then cross-sell you can there’s is then certainly it to is How big opportunity from by Or a on nutrition. can quickly quick, something second, right? the And it 'XX, after get that? of that? up know you get 'XX?

You on mean touchscreen? the

subscribers? nutrition to subscriptions digital cross-selling No,

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Weiser our from Linda And Bolton next D.A. question Davidson. of

Hello.

was in elaborate you comparisons was and both and me. seems sides discussion year, have mentioned some in side? on normal in it of of about hard your COVID the the nutrition results -- growth. Because guess to driven that So, digital because I'm nutrition you seeing I Can which both your just of revenue was XXXX, about COVID business of X% talk I up kind prior wondering, that benefitted so during that that of kind

business? really you Thank just that So, about effects those digital talk was it your the benefitted? Can side COVID you. on

All right.

So, question, really nutritional similar to by the digital prior and -- follows business the the business large. the

So, last year we subscribers. But saw we nutrition perhaps gym membership. more had file also displacing as who we people growth had were in their

And we a digital faster nutritional so saw was subscribers increase subscribers. that increase the than in in

to in post-workout is think formulations. want and the correlate shift if that. from supplement and still our shift that think can if we been a COVID we've in mix that a gained not relationship. shift will. the product product don't years, few But you our to dominant those that, the since have two, seeing we some change to seen I speak But mix, that pre-workout We but environment efficiency, the we're the last sold in of primary don't perhaps Shakeology product you related, to company, that has COVID I have in revenue necessarily on Shakeology for that that

Okay.

a for a So, went talk can little about your $XXX the from you million EBITDA more profitability year kind to projection loss the bit $XX million. like of So here? about

the $XX incremental spend. media marketing or So million so is

chain million else? and amount any million to is certain could? us, it just is profitability? year? to there $XX buckets of there $XX a in Can explain reasons the us Is the amount making like the for any way of like put of certain kind you Like, other in something is for can to you if bucket increase that, the So you loss for way supply reduction the say

key Linda. you're the two got $XX mentioned I thinking result We loss. and EBITDA that's Sure. media, goods -- about pressure is we of areas the those, of a definitely had that I the both Hi, profit what definitely broken think into Myx mid-teens before a and is budget, Yes, as then for gross balance additional cost us. correctly. on course, pressure it up of in million One really that is in

the XXX XXX to you to on XXX And rest flow between which so million million. And to you XXX which represents gets that's million the million, $XX the about or actually estimate through million gets reduced not the million. XXX of revenue

really Thank helpful. you. That's

Yes. a cost sort really at of that. The look goods flow adding balance the through on getting coach just is in -- XX% if of are and you costs to the flow-through margins then

in Or think year -- I projections XXXX? at you want think can about now very EBITDA on still thank then And longer helpful. be be profitable Okay, in you you XXXX? to we had views that's an XXXX. you, don't about basis can but positive Do EBITDA projected term do on talk in make looking your profitability? really are next positive EBITDA to just you You

We’ll half obviously the the because, on that second our subsequent which essentially, in seeing are as it's the that compared some and drives the the quarters we little a the the that our year, currently we the beat be other as full even of stick the in EBITDA. So the going is And than of at impact is conversations in media last anything day obviously year this the we for BODi first while launch the on point other is right? how things of to year, half can the as XXXX really in to now revenue governed key campaign, we’re else would fact well why in will lowered forecast guidance, it's guidance occur though quarter. that success be or subscribers the EBITDA of results is GAAP, update and year. place, So early the subscribers are budget to early too to a next or the unfolding September but met anything XXXX. change revenue to year of data the directionally But by time

business. is bigger then, question on a this just kind your picture of Okay. like And

Your all out is And earning coaches, nutrition commissions. they're you coaches a have business model. direct mentioned, you've selling XXX,XXX as these and there,

to products. commissions out profitability So you're of your the your promoters them paying of

or So, of network investment your the your would on why model media require such coaches? large in marketing kind of investment a of top

the years benefits business influencer As combination, marketing, and always I quite mentioned, certainly That for or the model. performance of has been from model coach XX marketing. or synergistic combination or the the influencer model last so, performance been this

it. a that's that frankly say, make marketing time better entire to of ecosystem we Part a for sort of brand premise excited a of them media and in the that they that to you parent only that's chance need to also community, pretty while but approach tell the the “I'm said, Now and that handle I've get layer business this.” -- model company the I'd benefited as that, so into love to them both to brand I'm they right we've -- incredibly and could launched still performance like of I've experience say, -- does We by helping an got “Hey, we coach efforts. having story and incredible the that, marketing can a marketing sales company now behind looks marketing unto handle guarantee.” I are they and over additional And and this transactions of and like And company bringing that is, that triangulated quite said, with brand a the work as company. share we've the fertile hoping XXX.” good something group. profitability, supporting dual as reputation back inventory doing need benefit having from I saw to productive. achieve with and “I enhanced on that's a this XX can and this Instagram this stand saw successful the of we the bit got a since we're -- synergy that Now exposure that's more And certain of I've advertisements the we seen product adding fact, and expect top we and all in the called we're ground all and with opened results, they that, with we customers I get cool at on And more program support our the have if who day them that have from only they're bringing that them of And help the important my work, program.” do is shifting when money paid you those conversation story “Hey, make ad, point a a their their efforts up if a an new of marketing to and they and that shown a own, coaches you so

a it's So that's synergy, really bottom the line.

Our Capital Daniel Instructions] [Operator next Adam is question of Loop Markets. from

correct. remarks, contribution this the was it million but got quarter think I in just there that of you mentioned for Myx have sure the to full quarter $XX.X if prepared to full Did Sue, revenue assuming contribution? you a that, make may I say was

Yes. Exactly.

seeing will XX-Q $XX,XXX,XXX. XXXX. you $XX,XXX X, go to to quarter see But and of back going it Item of the the you QX because unfortunately, Daniel, that could we are go amounts so Yes, if was by revenue. you to You --

Got was loss, And the it. Okay. EBITDA I'm assuming? what

so EY can might and would the that shipping with quarter. supply to in report that it partly We similar and that sales don’t have impact given we order a EBITDA on, it. you off because the general with the the chain everything mixes in kind together not going handling first continuing that's be constraints on But surcharge imagine

it I Okay, it. me. great. Thanks appreciate for That's guys.

and… can conclude call the we with think, I probably operator Okay, that

Yes, over ma'am. back And there call Carl closing to are no the Daikeler, this remarks. time. further questions CEO turn at I'll

community the Beachbody important of their opportunity some and a and feel exciting to XX-years and And at we vital I fitness All run people our really have. on such, going -- so everybody insights role and growth the this improve is helping our growth do next about ability resources household appreciate in much. pursue care some our with more on the analyst mission we with opportunity And expectations I and the of to the health of that having the unlocking an with in that, plays and we're for on that brands that history as that reach into people. We so to investors forward results the horizon, overall of company. know emphasis the the company work that most today thoughtful call Thanks to you we getting right our Look experience and innovations look make more right. names. the and sharing just accumulated ahead

and you, everybody, thank So have good a night.

Thank all for joining. This concludes conference today's you call.

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