WW International, Inc. Announces Second Quarter 2024 Results
WW International, Inc. (NASDAQ: WW) announced its Q2 2024 financial results. The company reported revenues of $202.1 million, down 10.9% YoY, with a gross margin of 67.9%. Operating income rose 36.5% to $35.9 million, while adjusted operating income increased 12% to $37.9 million. However, net income dropped 54.2% to $23.3 million, and EPS fell 54.9% to $0.29. End of period subscribers declined 6.1%, with Digital subscribers and Workshops + Digital subscribers decreasing by 4.2% and 21.4%, respectively. The company launched a 2024 restructuring plan to save $100 million annually through operational optimization.
For 2024, WW expects revenues of at least $770 million and adjusted operating income of at least $100 million.
WW International, Inc. (NASDAQ: WW) ha annunciato i risultati finanziari del secondo trimestre del 2024. L'azienda ha registrato entrate di 202,1 milioni di dollari, con una diminuzione del 10,9% rispetto all'anno precedente, e un margine lordo del 67,9%. L'utile operativo è aumentato del 36,5%, raggiungendo i 35,9 milioni di dollari, mentre l'utile operativo rettificato è cresciuto del 12%, toccando i 37,9 milioni di dollari. Tuttavia, l'utile netto è calato del 54,2% a 23,3 milioni di dollari, e l'EPS è sceso del 54,9% a 0,29 dollari. Gli abbonati alla fine del periodo sono diminuiti del 6,1%, con gli abbonati digitali e gli abbonati a Workshop + Digital che hanno registrato riduzioni rispettive del 4,2% e del 21,4%. L'azienda ha lanciato un piano di ristrutturazione per il 2024 per risparmiare 100 milioni di dollari all'anno attraverso l'ottimizzazione operativa.
Per il 2024, WW prevede entrate di almeno 770 milioni di dollari e un utile operativo rettificato di almeno 100 milioni di dollari.
WW International, Inc. (NASDAQ: WW) anunció sus resultados financieros del segundo trimestre de 2024. La compañía reportó ingresos de 202,1 millones de dólares, una disminución del 10,9% interanual, con un margen bruto del 67,9%. El ingreso operativo aumentó un 36,5% hasta los 35,9 millones de dólares, mientras que el ingreso operativo ajustado creció un 12% hasta los 37,9 millones de dólares. Sin embargo, el ingreso neto cayó un 54,2% hasta los 23,3 millones de dólares, y el EPS se redujo un 54,9% hasta los 0,29 dólares. El número de suscriptores al final del período disminuyó un 6,1%, con los suscriptores digitales y los suscriptores de Talleres + Digital disminuyendo en un 4,2% y un 21,4%, respectivamente. La empresa lanzó un plan de reestructuración para 2024 con el objetivo de ahorrar 100 millones de dólares anuales a través de la optimización operativa.
Para 2024, WW espera ingresos de al menos 770 millones de dólares y un ingreso operativo ajustado de al menos 100 millones de dólares.
WW International, Inc. (NASDAQ: WW)는 2024년 2분기 재무 결과를 발표했습니다. 이 회사는 2억 2,100만 달러의 수익을 기록했으며, 이는 전년 대비 10.9% 감소한 수치이며, 매출 총 이익률은 67.9%입니다. 운영 수익은 36.5% 증가하여 3,590만 달러에 달했으며, 조정된 운영 수익은 12% 증가하여 3,790만 달러에 이르렀습니다. 그러나 순이익은 54.2% 감소한 2,330만 달러로 떨어졌고, 주당 순이익(EPS)은 54.9% 감소하여 0.29달러가 되었습니다. 기간 종료 시점의 가입자는 6.1% 감소했으며, 디지털 가입자와 워크숍 + 디지털 가입자는 각각 4.2%와 21.4% 감소했습니다. 이 회사는 운영 최적화를 통해 연간 1억 달러를 절감하기 위한 2024년 재편성 계획을 발표했습니다.
2024년을 위해 WW는 최소 7억 7,000만 달러의 수익과 최소 1억 달러의 조정된 운영 수익을 예상합니다.
WW International, Inc. (NASDAQ: WW) a annoncé ses résultats financiers pour le deuxième trimestre 2024. L'entreprise a rapporté des revenus de 202,1 millions de dollars, en baisse de 10,9% par rapport à l'année précédente, avec une marge brute de 67,9%. Le résultat d'exploitation a augmenté de 36,5% pour atteindre 35,9 millions de dollars, tandis que le résultat d'exploitation ajusté a progressé de 12% pour s'établir à 37,9 millions de dollars. Cependant, le bénéfice net a chuté de 54,2% à 23,3 millions de dollars, et le BPA est tombé de 54,9% à 0,29 dollar. Le nombre d'abonnés à la fin de la période a diminué de 6,1%, avec une baisse de 4,2% pour les abonnés numériques et de 21,4% pour les abonnés à Atelier + Numérique. L'entreprise a lancé un plan de restructuration pour 2024 afin d'économiser 100 millions de dollars par an grâce à l'optimisation opérationnelle.
Pour 2024, WW prévoit des revenus d'au moins 770 millions de dollars et un résultat d'exploitation ajusté d'au moins 100 millions de dollars.
WW International, Inc. (NASDAQ: WW) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Das Unternehmen berichtete von Einnahmen in Höhe von 202,1 Millionen Dollar, was einem Rückgang von 10,9% im Vergleich zum Vorjahr entspricht, mit einer Bruttomarge von 67,9%. Das Betriebsergebnis stieg um 36,5% auf 35,9 Millionen Dollar, während das bereinigte Betriebsergebnis um 12% auf 37,9 Millionen Dollar zunahm. Das Nettoergebnis fiel jedoch um 54,2% auf 23,3 Millionen Dollar, und der Gewinn pro Aktie (EPS) sank um 54,9% auf 0,29 Dollar. Die Abonnentenzahl zum Ende des Zeitraums ging um 6,1% zurück, wobei die Digital-Abonnenten und die Workshops + Digital-Abonnenten um 4,2% bzw. 21,4% sanken. Das Unternehmen hat einen Umstrukturierungsplan für 2024 gestartet, um jährlich 100 Millionen Dollar durch betriebliche Optimierung einzusparen.
Für 2024 erwartet WW Einnahmen von mindestens 770 Millionen Dollar und ein bereinigtes Betriebsergebnis von mindestens 100 Millionen Dollar.
- Operating income increased by 36.5% to $35.9 million.
- Gross margin improved to 67.9%.
- Launched a restructuring plan aimed at $100 million in annual cost savings.
- Adjusted operating income rose 12% to $37.9 million.
- Revenues fell by 10.9% YoY to $202.1 million.
- Net income decreased by 54.2% to $23.3 million.
- Earnings per share dropped 54.9% to $0.29.
- End of period subscribers declined 6.1%.
- Digital subscribers decreased by 4.2%.
- Workshops + Digital subscribers fell by 21.4%.
Insights
WW International's Q2 2024 results reveal a company in transition, facing challenges but taking decisive action to streamline operations and reduce costs. The 6.1% decline in End of Period Subscribers and 10.6% decrease in revenues (on a constant currency basis) highlight ongoing difficulties in the core Digital and Workshops + Digital segments. However, there are some positive signs:
- Clinical subscribers grew 119.8% year-over-year, indicating potential in this newer offering
- Gross margin improved to 67.9% from 63.4% in the prior year, driven by discontinuation of lower-margin consumer products
- Adjusted operating income increased 12.0% to
$37.9 million
The announced 2024 Restructuring Plan, targeting
The updated fiscal 2024 guidance, with revenue expected to be at least
WW International's Q2 results reflect broader shifts in the weight loss industry. The decline in Digital and Workshops + Digital subscribers suggests increasing competition from newer weight loss medications and digital-first competitors. However, the 119.8% growth in Clinical subscribers is noteworthy, indicating WW's potential to capitalize on the trend towards medically-supervised weight loss programs.
The company's strategy to "expand care, expand access and expand payment options" aligns with market trends towards more personalized, accessible health solutions. The focus on becoming a "leading digital health provider of weight health" is important in a market increasingly dominated by tech-enabled solutions.
Key market factors to monitor include:
- Consumer adoption rates of new weight loss medications like Wegovy and Ozempic
- Shifts in insurance coverage for weight loss programs and medications
- Evolving consumer preferences for in-person vs. digital weight loss support
WW's ability to integrate its traditional behavioral approach with newer clinical offerings will be critical for its long-term success in this changing landscape. The restructuring and cost-cutting measures, while necessary, must be balanced against the need for continued innovation to remain competitive.
WW International's Q2 results underscore the critical role of technology in the evolving weight loss industry. The company's pivot towards becoming a "digital health provider" is evident in its product strategy, but execution challenges remain:
- The 4.2% decline in Digital subscribers suggests WW's digital offerings may be losing ground to more tech-savvy competitors
- Growth in Clinical subscribers (119.8% increase) indicates potential for tech-enabled, personalized health solutions
- The focus on "high impact initiatives to enhance efficiency, accountability and speed" likely involves significant tech investments
WW's tech strategy should focus on:
- Enhancing AI and machine learning capabilities for personalized nutrition and activity recommendations
- Improving integration of wearable devices and health tracking apps
- Developing more engaging, gamified experiences to boost user retention
- Leveraging data analytics to optimize marketing and user acquisition strategies
The
- End of Period Subscribers of 3.8 million, including 81 thousand End of Period Clinical Subscribers
- Revenues of
$202.1 million - Gross margin of
67.9% - Operating Income of
$35.9 million ; excluding the net impact of restructuring charges related to prior year restructuring plans, adjusted operating income of$37.9 million - Provides update to full year fiscal 2024 guidance
- Announces 2024 Restructuring Plan that is expected to result in
$100 million of annual run-rate cost savings related to strategic streamlining of the Company’s operational structure to optimize its clinical and behavioral product portfolio and to its cost-savings initiative
NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (“WeightWatchers,” “WW,” or the “Company”) today announced its results for the second quarter of fiscal 2024.
"WeightWatchers has the right strategy to return the business to growth. With a rapidly changing landscape, we are taking decisive actions to navigate through this environment and completely reimagining how we operate," said Sima Sistani, the Company’s CEO. "We are executing a significant streamlining of our operational structure, to focus and execute against our strategic pillars to expand care, expand access, and expand payment options for our members. These initiatives enable us to serve a broader population as the leading digital health provider of weight health, catalyzing our return to growth and positioning the Company for long-term success."
"We are refining our operational framework against our product roadmap, concentrating on high impact initiatives to enhance efficiency, accountability and speed. These actions are part of a comprehensive cost reduction plan, targeting
Q2 2024 Consolidated Results
| % Change | % Change Adjusted for Constant Currency(1) | ||||||||||||
| Three Months Ended | |||||||||||||
| June 29, | July 1, | ||||||||||||
| 2024 | 2023 | ||||||||||||
| (in millions except percentages and per share amounts) | |||||||||||||
| Subscription Revenues, net | $ | 200.0 | $ | 212.1 | (5.7 | %) | (5.4 | %) | |||||
| Other Revenues, net(2) | 2.1 | 14.7 | (85.6 | %) | (85.5 | %) | |||||||
| Revenues, net | $ | 202.1 | $ | 226.8 | (10.9 | %) | (10.6 | %) | |||||
| Gross Profit | $ | 137.3 | $ | 143.2 | (4.1 | %) | (3.8 | %) | |||||
| Non-GAAP Adjustments(1) | |||||||||||||
| Net Restructuring Charges(3) | (0.1 | ) | 0.7 | ||||||||||
| Adjusted Gross Profit(1) | $ | 137.2 | $ | 143.8 | (4.6 | %) | (4.3 | %) | |||||
| Operating Income | $ | 35.9 | $ | 26.3 | 36.5 | % | 37.6 | % | |||||
| Non-GAAP Adjustments(1) | |||||||||||||
| Net Restructuring Charges(3) | 2.0 | 2.7 | |||||||||||
| Acquisition Transaction Costs | - | 4.9 | |||||||||||
| Adjusted Operating Income(1) | $ | 37.9 | $ | 33.9 | 12.0 | % | 12.8 | % | |||||
| Net Income | $ | 23.3 | $ | 50.8 | (54.2 | %) | (53.8 | %) | |||||
| EPS | $ | 0.29 | $ | 0.65 | (54.9 | %) | (54.5 | %) | |||||
Total Paid Weeks | 50.7 | 53.4 | (4.9 | %) | N/A | ||||||||
| Digital(4)Paid Weeks | 42.0 | 43.2 | (2.9 | %) | N/A | ||||||||
| Workshops + Digital(5)Paid Weeks | 7.7 | 9.8 | (21.3 | %) | N/A | ||||||||
| Clinical(6)Paid Weeks | 1.1 | 0.4 | 205.4 | % | N/A | ||||||||
| End of Period Subscribers(7) | 3.8 | 4.1 | (6.1 | %) | N/A | ||||||||
| Digital Subscribers | 3.2 | 3.3 | (4.2 | %) | N/A | ||||||||
| Workshops + Digital Subscribers | 0.6 | 0.7 | (21.4 | %) | N/A | ||||||||
| Clinical Subscribers | 0.1 | 0.0 | 119.8 | % | N/A | ||||||||
| ___________________________________ Note: Totals may not sum due to rounding. (1) See “Reconciliation of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures. (2) “Other Revenues, net” (formerly known as “Product Sales and Other, net”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, “Other Revenues, net” included sales of consumer products. (3) See “Reconciliation of Non-GAAP Financial Measures” attached to this release for further detail on the Company’s previously disclosed 2023, 2022, 2021, and 2020 restructuring plans, and the reversal of certain of the charges associated therewith. (4) “Digital” refers to providing subscriptions to the Company’s digital product offerings. (5) “Workshops + Digital” refers to providing subscriptions for unlimited access to the Company’s workshops combined with the Company’s digital subscription product offerings. (6) “Clinical” refers to providing subscriptions to the Company’s clinical product offerings provided by WeightWatchers Clinic (formerly referred to as Sequence). (7) “Subscribers” refers to Digital subscribers, Workshops + Digital subscribers, and Clinical subscribers who participate in recurring bill programs in Company-owned operations. | |||||||||||||
Q2 2024 Business and Financial Highlights
- End of Period Subscribers in Q2 2024 were down
6.1% versus the prior year period, driven by declines in the Digital and Workshops + Digital businesses. Q2 2024 End of Period Digital Subscribers decreased4.2% versus the prior year period. Q2 2024 End of Period Workshops + Digital Subscribers decreased21.4% versus the prior year period. Q2 2024 End of Period Clinical Subscribers increased119.8% versus the prior year period.
- Total Paid Weeks in Q2 2024 were down
4.9% versus the prior year period driven by declines in the Digital and Workshops + Digital businesses. Q2 2024 Digital Paid Weeks decreased2.9% versus the prior year period. Q2 2024 Workshops + Digital Paid Weeks decreased21.3% versus the prior year period. Q2 2024 Clinical Paid Weeks increased205.4% versus the prior year period.
- Revenues in Q2 2024 were
$202.1 million . On a constant currency basis, Q2 2024 revenues decreased10.6% versus the prior year period.
- Subscription Revenues in Q2 2024 were
$200.0 million . On a constant currency basis, these revenues decreased5.4% versus the prior year period. Subscription Revenues included$19.7 million of Clinical Subscription Revenues. - Other Revenues in Q2 2024 were
$2.1 million . On a constant currency basis, these revenues decreased85.5% versus the prior year period driven by the discontinuation of the consumer products business.
- Subscription Revenues in Q2 2024 were
- Gross Profit in Q2 2024 was
$137.3 million , compared to$143.2 million in the prior year period. Adjusted gross profit in Q2 2024, which excluded the reversal of$0.1 million of restructuring charges related to a prior year restructuring plan, was$137.2 million . Adjusted gross profit in Q2 2023, which excluded the net impact of$0.7 million of restructuring charges, was$143.8 million .
- Gross Margin in Q2 2024 was
67.9% , as compared to63.1% in the prior year period. Adjusted gross margin in Q2 2024 was67.9% , up from an adjusted gross margin of63.4% in the prior year period, driven primarily by the discontinuation of the lower margin consumer products business at the end of 2023.
- Gross Margin in Q2 2024 was
- Operating Income in Q2 2024 was
$35.9 million , compared to operating income of$26.3 million in the prior year period. Adjusted operating income in Q2 2024, which excluded the net impact of$2.0 million of restructuring charges related to prior year restructuring plans, was$37.9 million . Adjusted operating income in Q2 2023, which excluded the net impact of$2.7 million of restructuring charges and the impact of$4.9 million of acquisition transaction costs, was$33.9 million .
- Income Tax Benefit in Q2 2024 was
$15.8 million , which reflected the impact of an unusually high negative annual effective tax rate driven by a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2024 guidance. In the prior year period, income tax benefit was$48.1 million .
- Net Income in Q2 2024 was
$23.3 million compared to net income of$50.8 million in the prior year period.
- Diluted Earnings per share in Q2 2024 was
$0.29 compared to diluted earnings per share of$0.65 in the prior year period.
- Certain items affect year-over-year comparability.
- Q2 2024 diluted earnings per share incorporated the net positive impact of
$0.42 per diluted share in the aggregate due to the following items:$0.44 per diluted share positive tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2024 guidance.$0.02 per diluted share net negative impact of restructuring charges related to prior year restructuring plans.
- Q2 2024 diluted earnings per share incorporated the net positive impact of
- Q2 2023 diluted earnings per share incorporated the positive impact of
$0.69 per diluted share in the aggregate due to the following items:
$0.77 per diluted share positive tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2023 guidance.$0.05 per diluted share negative impact from acquisition transaction costs.$0.03 per diluted share negative net impact of restructuring charges.
- Certain items affect year-over-year comparability.
Other Items
- Cash balance as of June 29, 2024 was
$42.7 million . On that same date, the Company had no outstanding borrowings under its revolving credit facility. - 2024 Restructuring Plan: In connection with the strategic streamlining of its operational structure to optimize its clinical and behavioral product portfolio and its cost-savings initiative, the Company committed to a plan of reduction in force that will result in the elimination of certain positions and the termination of employment for certain employees worldwide (the “2024 Restructuring Plan”). The Company anticipates recording restructuring charges that it currently estimates will range between
$12.0 million to$15.0 million in the aggregate in the second half of fiscal 2024.
Full Year Fiscal 2024 Guidance
The Company is providing the following update to its full year fiscal 2024 guidance:
- Revenue is expected to be at least
$770.0 million . - Operating loss is expected to be at most
$180.7 million ; excluding non-cash intangible impairment charges and the net impact of restructuring charges, adjusted operating income is expected to be at least$100.0 million .
Second Quarter 2024 Conference Call and Webcast
The Company has scheduled a conference call today at 8:30 a.m. ET. During the conference call, Sima Sistani, Chief Executive Officer, and Heather Stark, Chief Financial Officer, will discuss the second quarter of fiscal 2024 results and answer questions from the investment community.
The live webcast of the conference call will be available on the Company’s corporate website, corporate.ww.com, under Events and Presentations. Supplemental investor materials will also be available in the same location prior to the start of the webcast. A replay of the webcast will be available on this site for approximately 90 days.
Statement regarding Non-GAAP Financial Measures
The following provides information regarding non-GAAP financial measures used in this earnings release and today’s scheduled conference call:
To supplement the Company's consolidated results presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has disclosed non-GAAP financial measures of operating results that exclude or adjust certain items. Gross profit, gross margin, operating income (loss), operating income (loss) margin and selling, general and administrative expenses are discussed both as reported (on a GAAP basis) and as adjusted (on a non-GAAP basis), as applicable, with respect to (i) the second quarter of fiscal 2024 to exclude the impact or net impact, as applicable, of charges associated with the Company's previously disclosed 2023 restructuring plan (the “2023 plan”) and the Company's previously disclosed 2022 restructuring plan (the “2022 plan”); (ii) the first six months of fiscal 2024 to exclude (x) the impact of impairment charges for the Company's franchise rights acquired related to its United States, Australia, New Zealand and United Kingdom units of account and (y) the net impact of charges associated with the 2023 plan and the 2022 plan; and (iii) the second quarter and first six months of fiscal 2023 to exclude (x) the net impact of (a) charges associated with the 2023 plan, (b) charges associated with the 2022 plan or the reversal of certain of the charges associated with the 2022 plan, as applicable, (c) charges associated with the Company's previously disclosed 2021 organizational restructuring plan (the “2021 plan”) or the reversal of certain of the charges associated with the 2021 plan, as applicable, and (d) the reversal of certain of the charges associated with the Company's previously disclosed 2020 organizational restructuring plan (the “2020 plan”) and (y) the impact of certain non-recurring transaction costs in connection with the acquisition of Sequence. The Company generally refers to such non-GAAP measures as excluding or adjusting for the impact of franchise rights acquired impairments, the impact or net impact, as applicable, of restructuring charges, and the impact of acquisition transaction costs, as applicable. The Company also presents in the attachments to this release the non-GAAP financial measures: earnings before interest, taxes, depreciation, amortization and stock-based compensation (“EBITDAS”); earnings before interest, taxes, depreciation, amortization, stock-based compensation, franchise rights acquired and goodwill impairments, net restructuring charges, and certain non-recurring transaction costs in connection with the acquisition of Sequence (“Adjusted EBITDAS”); total debt less unamortized deferred financing costs, unamortized debt discount and cash on hand (i.e., net debt); and a net debt/Adjusted EBITDAS ratio. In addition, the Company presents certain of its financial results on a constant currency basis in addition to GAAP results. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. A reconciliation of the forward-looking full year EBITDAS outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of the Company's control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
Management believes these non-GAAP financial measures provide useful supplemental information for its and investors' evaluation of the Company's business performance and are useful for period-over-period comparisons of the performance of the Company's business. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. See "Reconciliation of Non-GAAP Financial Measures" attached to this release and reconciliations, if any, included elsewhere in this release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures.
About WW International, Inc.
WeightWatchers is a human-centric technology company powered by our proven, science-based, clinically effective weight loss and weight management programs. For six decades, we have inspired millions of people to adopt healthy habits for real life. We combine technology and community to help members reach and sustain their goals on our programs. To learn more about the WeightWatchers approach to healthy living, please visit ww.com. For more information about our global business, visit our corporate website at corporate.ww.com.
This news release and any attachments include “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, including, in particular, any guidance and any statements about the Company’s plans, strategies, objectives, initiatives, roadmap and prospects. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and similar expressions in this news release and any attachments to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: competition from other weight management and health and wellness industry participants or the development of more effective or more favorably perceived weight management methods; the Company's failure to continue to retain and grow its subscriber base; the Company’s ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; the Company's ability to continue to develop new, innovative services and products and enhance its existing services and products or the failure of its services, products or brands to continue to appeal to the market, or its ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; the ability to successfully implement strategic initiatives; the Company’s ability to evolve its community offerings to meet the evolving tastes and preferences of its members; the effectiveness and efficiency of the Company's advertising and marketing programs, including the strength of the Company's social media presence; the impact on the Company's reputation of actions taken by its franchisees, licensees, suppliers, affiliated provider entities, PCs’ healthcare professionals, and other partners, including as a result of its acquisition of Weekend Health, Inc., doing business as Sequence (“Sequence”) (the “Acquisition”); the recognition of asset impairment charges; the loss of key personnel, strategic partners or consultants or failure to effectively manage and motivate the Company's workforce; the Company’s ability to successfully make acquisitions or enter into collaborations or joint ventures, including its ability to successfully integrate, operate or realize the anticipated benefits of such businesses, including with respect to Sequence; uncertainties related to a downturn in general economic conditions or consumer confidence, including as a result of the existing inflationary environment, rising interest rates, the potential impact of political and social unrest and increased volatility in the credit and capital markets; the seasonal nature of the Company's business; the Company's failure to maintain effective internal control over financial reporting; the impact of events that impede accessing resources or discourage or impede people from gathering with others; the early termination by the Company of leases; the inability to renew certain of the Company's licenses, or the inability to do so on terms that are favorable to the Company; the impact of the Company's substantial amount of debt, debt service obligations and debt covenants, and its exposure to variable rate indebtedness; the ability to generate sufficient cash to service the Company's debt and satisfy its other liquidity requirements; uncertainties regarding the satisfactory operation of the Company's technology or systems; the impact of data security breaches and other malicious acts or privacy concerns, including the costs of compliance with evolving privacy laws and regulations; the Company’s ability to successfully integrate and use artificial intelligence in its business; the Company's ability to enforce its intellectual property rights both domestically and internationally, as well as the impact of its involvement in any claims related to intellectual property rights; risks and uncertainties associated with the Company's international operations, including regulatory, economic, political, social, intellectual property, and foreign currency risks, which risks may be exacerbated as a result of war and terrorism; the outcomes of litigation or regulatory actions; the impact of existing and future laws and regulations; risks related to the Acquisition, including risks that the Acquisition may not achieve its intended results; risks related to the Company's exposure to extensive and complex healthcare laws and regulations as a result of the Acquisition; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission (the “SEC”) (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the SEC (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com).
For more information, contact:
Investors:
Corey Kinger
corey.kinger@ww.com
Media:
Kelsey Merkel
kelsey.merkel@ww.com
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS AT | ||||||||||
| (IN THOUSANDS) | ||||||||||
| UNAUDITED | ||||||||||
| June 29, | December 30, | |||||||||
| 2024 | 2023 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 42,709 | $ | 109,366 | ||||||
| Receivables (net of allowances: June 29, 2024 - | 13,412 | 14,938 | ||||||||
| Prepaid income taxes | 12,878 | 25,370 | ||||||||
| Prepaid marketing and advertising | 1,898 | 10,149 | ||||||||
| Prepaid expenses and other current assets | 17,194 | 19,651 | ||||||||
| TOTAL CURRENT ASSETS | 88,091 | 179,474 | ||||||||
| Property and equipment, net | 18,203 | 19,741 | ||||||||
| Operating lease assets | 47,861 | 52,272 | ||||||||
| Franchise rights acquired | 128,164 | 386,526 | ||||||||
| Goodwill | 241,872 | 243,441 | ||||||||
| Other intangible assets, net | 54,213 | 63,208 | ||||||||
| Deferred income taxes | 16,615 | 19,683 | ||||||||
| Other noncurrent assets | 19,237 | 17,685 | ||||||||
| TOTAL ASSETS | $ | 614,256 | $ | 982,030 | ||||||
| LIABILITIES AND TOTAL DEFICIT | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Portion of operating lease liabilities due within one year | $ | 9,492 | $ | 9,613 | ||||||
| Accounts payable | 25,119 | 18,507 | ||||||||
| Salaries and wages payable | 40,434 | 79,096 | ||||||||
| Accrued marketing and advertising | 14,028 | 18,215 | ||||||||
| Accrued interest | 5,345 | 5,346 | ||||||||
| Deferred acquisition payable | 14,608 | 16,500 | ||||||||
| Other accrued liabilities | 22,122 | 22,610 | ||||||||
| Income taxes payable | 35,373 | 1,609 | ||||||||
| Deferred revenue | 33,849 | 33,966 | ||||||||
| TOTAL CURRENT LIABILITIES | 200,370 | 205,462 | ||||||||
| Long-term debt, net | 1,428,553 | 1,426,464 | ||||||||
| Long-term operating lease liabilities | 49,043 | 53,461 | ||||||||
| Deferred income taxes | 21,933 | 41,994 | ||||||||
| Other | 1,640 | 15,743 | ||||||||
| TOTAL LIABILITIES | 1,701,539 | 1,743,124 | ||||||||
| TOTAL DEFICIT | ||||||||||
| Common stock, | 0 | 0 | ||||||||
| Treasury stock, at cost, 50,344 shares at June 29, 2024 and 50,859 shares at December 30, 2023 | (3,040,679 | ) | (3,064,628 | ) | ||||||
| Retained earnings | 1,970,791 | 2,314,834 | ||||||||
| Accumulated other comprehensive loss | (17,395 | ) | (11,300 | ) | ||||||
| TOTAL DEFICIT | (1,087,283 | ) | (761,094 | ) | ||||||
| TOTAL LIABILITIES AND TOTAL DEFICIT | $ | 614,256 | $ | 982,030 | ||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||||||
| UNAUDITED | |||||||||||
| Three Months Ended | |||||||||||
| June 29, | July 1, | ||||||||||
| 2024 | 2023 | ||||||||||
| Subscription revenues, net (1) | $ | 199,956 | $ | 212,140 | |||||||
| Other revenues, net (2) | 2,117 | 14,690 | |||||||||
| Revenues, net | 202,073 | 226,830 | |||||||||
| Cost of subscription revenues (3) | 64,023 | 71,378 | |||||||||
| Cost of other revenues | 756 | 12,272 | |||||||||
| Cost of revenues | 64,779 | 83,650 | |||||||||
| Gross profit | 137,294 | 143,180 | |||||||||
| Marketing expenses | 53,696 | 51,119 | |||||||||
| Selling, general and administrative expenses | 47,665 | 65,744 | |||||||||
| Franchise rights acquired impairments | — | — | |||||||||
| Operating income | 35,933 | 26,317 | |||||||||
| Interest expense | 28,577 | 24,075 | |||||||||
| Other income, net | (78 | ) | (520 | ) | |||||||
| Income before income taxes | 7,434 | 2,762 | |||||||||
| Benefit from income taxes | (15,835 | ) | (48,066 | ) | |||||||
| Net income | $ | 23,269 | $ | 50,828 | |||||||
| Earnings per share | |||||||||||
| Basic | $ | 0.29 | $ | 0.65 | |||||||
| Diluted | $ | 0.29 | $ | 0.65 | |||||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 79,483 | 78,007 | |||||||||
| Diluted | 79,825 | 78,591 | |||||||||
| Note: Totals may not sum due to rounding. | |||||||||||
| (1) “Subscription revenues, net” consist of net “Digital Subscription Revenues”, net “Workshops + Digital Subscription Revenues” and net “Clinical Subscription Revenues”. “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings. “Workshops + Digital Subscription Revenues” consist of the fees associated with subscriptions for combined workshops and Digital offerings. “Clinical Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Clinical offerings. | |||||||||||
| (2) “Other revenues, net” (formerly known as “product sales and other, net”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, “Other revenues, net” included sales of consumer products. | |||||||||||
| (3) “Cost of subscription revenues” consists of cost of revenues and operating expenses for the Company's Digital, Workshops + Digital and Clinical services. | |||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||||||
| UNAUDITED | |||||||||||
| Six Months Ended | |||||||||||
| June 29, | July 1, | ||||||||||
| 2024 | 2023 | ||||||||||
| Subscription revenues, net(1) | $ | 404,012 | $ | 423,172 | |||||||
| Other revenues, net(2) | 4,609 | 45,552 | |||||||||
| Revenues, net | 408,621 | 468,724 | |||||||||
| Cost of subscription revenues(3) | 131,839 | 166,275 | |||||||||
| Cost of other revenues | 1,688 | 39,758 | |||||||||
| Cost of revenues | 133,527 | 206,033 | |||||||||
| Gross profit | 275,094 | 262,691 | |||||||||
| Marketing expenses | 143,858 | 139,353 | |||||||||
| Selling, general and administrative expenses | 106,647 | 125,604 | |||||||||
| Franchise rights acquired impairments | 257,988 | — | |||||||||
| Operating loss | (233,399 | ) | (2,266 | ) | |||||||
| Interest expense | 53,304 | 46,921 | |||||||||
| Other income, net | (1,683 | ) | (851 | ) | |||||||
| Loss before income taxes | (285,020 | ) | (48,336 | ) | |||||||
| Provision for income taxes | 39,613 | 19,515 | |||||||||
| Net loss | $ | (324,633 | ) | $ | (67,851 | ) | |||||
| Net loss per share | |||||||||||
| Basic | $ | (4.09 | ) | $ | (0.91 | ) | |||||
| Diluted | $ | (4.09 | ) | $ | (0.91 | ) | |||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 79,345 | 74,302 | |||||||||
| Diluted | 79,345 | 74,302 | |||||||||
| Note: Totals may not sum due to rounding. | |||||||||||
| (1) “Subscription revenues, net” consist of net “Digital Subscription Revenues”, net “Workshops + Digital Subscription Revenues” and net “Clinical Subscription Revenues”. “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings. “Workshops + Digital Subscription Revenues” consist of the fees associated with subscriptions for combined workshops and Digital offerings. “Clinical Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Clinical offerings. | |||||||||||
| (2) “Other revenues, net” (formerly known as “product sales and other, net”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, “Other revenues, net” included sales of consumer products. | |||||||||||
| (3) “Cost of subscription revenues” consists of cost of revenues and operating expenses for the Company's Digital, Workshops + Digital and Clinical services. | |||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (IN THOUSANDS) | ||||||||||
| UNAUDITED | ||||||||||
| Six Months Ended | ||||||||||
| June 29, | July 1, | |||||||||
| 2024 | 2023 | |||||||||
| Operating activities: | ||||||||||
| Net loss | $ | (324,633 | ) | $ | (67,851 | ) | ||||
| Adjustments to reconcile net loss to cash used for operating activities: | ||||||||||
| Depreciation and amortization | 19,948 | 24,869 | ||||||||
| Amortization of deferred financing costs and debt discount | 2,509 | 2,509 | ||||||||
| Impairment of franchise rights acquired | 257,988 | — | ||||||||
| Impairment of intangible and long-lived assets | 197 | 189 | ||||||||
| Share-based compensation expense | 5,141 | 9,613 | ||||||||
| Deferred tax benefit | (14,948 | ) | (5,824 | ) | ||||||
| Allowance for doubtful accounts | 6,886 | (143 | ) | |||||||
| Reserve for inventory obsolescence | 134 | 3,153 | ||||||||
| Foreign currency exchange rate gain | (1,249 | ) | (841 | ) | ||||||
| Changes in cash due to: | ||||||||||
| Receivables | 3,407 | 57 | ||||||||
| Inventories | 30 | 6,886 | ||||||||
| Prepaid expenses | 18,956 | 10,321 | ||||||||
| Accounts payable | 6,598 | 3,402 | ||||||||
| Accrued liabilities | (36,825 | ) | (19,536 | ) | ||||||
| Deferred revenue | 142 | 1,975 | ||||||||
| Other long term assets and liabilities, net | (16,076 | ) | (1,265 | ) | ||||||
| Income taxes | 33,819 | 5,429 | ||||||||
| Cash used for operating activities | (37,976 | ) | (27,057 | ) | ||||||
| Investing activities: | ||||||||||
| Capital expenditures | (730 | ) | (1,746 | ) | ||||||
| Capitalized software and website development expenditures | (9,376 | ) | (17,907 | ) | ||||||
| Cash paid for acquisitions, net of cash acquired | — | (38,362 | ) | |||||||
| Other items, net | (5 | ) | (8 | ) | ||||||
| Cash used for investing activities | (10,111 | ) | (58,023 | ) | ||||||
| Financing activities: | ||||||||||
| Taxes paid related to net share settlement of equity awards | (629 | ) | (1,319 | ) | ||||||
| Proceeds from stock options exercised | — | 82 | ||||||||
| Cash paid for acquisitions | (16,500 | ) | (1,066 | ) | ||||||
| Other items, net | (3 | ) | (38 | ) | ||||||
| Cash used for financing activities | (17,132 | ) | (2,341 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,438 | ) | 541 | |||||||
| Net decrease in cash and cash equivalents | (66,657 | ) | (86,880 | ) | ||||||
| Cash and cash equivalents, beginning of period | 109,366 | 178,326 | ||||||||
| Cash and cash equivalents, end of period | $ | 42,709 | $ | 91,446 | ||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
| OPERATIONAL STATISTICS | ||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | ||||||||
| UNAUDITED | ||||||||
| Three Months Ended | ||||||||
| June 29, | July 1, | Variance | ||||||
| 2024 | 2023 | |||||||
| Paid Weeks(1) | ||||||||
| Digital Paid Weeks | 41,979 | 43,246 | ( | |||||
| Workshops + Digital Paid Weeks | 7,682 | 9,755 | ( | |||||
| Clinical Paid Weeks | 1,084 | 355 | ||||||
| Total Paid Weeks | 50,745 | 53,356 | ( | |||||
| End of Period Subscribers(2) | ||||||||
| End of Period Digital Subscribers | 3,190 | 3,329 | ( | |||||
| End of Period Workshops + Digital Subscribers | 566 | 720 | ( | |||||
| End of Period Clinical Subscribers | 81 | 37 | ||||||
| Total End of Period Subscribers | 3,837 | 4,086 | ( | |||||
| Note: Totals may not sum due to rounding. | ||||||||
| (1) The “Paid Weeks” metric reports paid weeks by WW customers in Company-owned operations for a given period as follows: (i) “Digital Paid Weeks” is the total paid subscription weeks for the Company’s Digital offerings; (ii) “Workshops + Digital Paid Weeks” is the total paid subscription weeks for combined workshops and Digital offerings; (iii) “Clinical Paid Weeks” is the total paid subscription weeks for the Company’s Clinical offerings; and (iv) “Total Paid Weeks” is the sum of Digital Paid Weeks, Workshops + Digital Paid Weeks and Clinical Paid Weeks. | ||||||||
| (2) The “End of Period Subscribers” metric reports WW subscribers in Company-owned operations at a given period end as follows: (i) “End of Period Digital Subscribers” is the total number of Digital subscribers; (ii) “End of Period Workshops + Digital Subscribers” is the total number of subscribers that have access to combined workshops and Digital offerings; (iii) “End of Period Clinical Subscribers” is the total number of Clinical subscribers; and (iv) “End of Period Subscribers” is the sum of End of Period Digital Subscribers, End of Period Workshops + Digital Subscribers and End of Period Clinical Subscribers. | ||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
| OPERATIONAL STATISTICS | ||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | ||||||||
| UNAUDITED | ||||||||
| Six Months Ended | ||||||||
| June 29, | July 1, | Variance | ||||||
| 2024 | 2023 | |||||||
| Paid Weeks(1) | ||||||||
| Digital Paid Weeks | 84,298 | 84,047 | ||||||
| Workshops + Digital Paid Weeks | 16,106 | 19,906 | ( | |||||
| Clinical Paid Weeks | 2,123 | 355 | ||||||
| Total Paid Weeks | 102,527 | 104,308 | ( | |||||
| End of Period Subscribers(2) | ||||||||
| End of Period Digital Subscribers | 3,190 | 3,329 | ( | |||||
| End of Period Workshops + Digital Subscribers | 566 | 720 | ( | |||||
| End of Period Clinical Subscribers | 81 | 37 | ||||||
| Total End of Period Subscribers | 3,837 | 4,086 | ( | |||||
| Note: Totals may not sum due to rounding. | ||||||||
| (1) The “Paid Weeks” metric reports paid weeks by WW customers in Company-owned operations for a given period as follows: (i) “Digital Paid Weeks” is the total paid subscription weeks for the Company’s Digital offerings; (ii) “Workshops + Digital Paid Weeks” is the total paid subscription weeks for combined workshops and Digital offerings; (iii) “Clinical Paid Weeks” is the total paid subscription weeks for the Company’s Clinical offerings; and (iv) “Total Paid Weeks” is the sum of Digital Paid Weeks, Workshops + Digital Paid Weeks and Clinical Paid Weeks. | ||||||||
| (2) The “End of Period Subscribers” metric reports WW subscribers in Company-owned operations at a given period end as follows: (i) “End of Period Digital Subscribers” is the total number of Digital subscribers; (ii) “End of Period Workshops + Digital Subscribers” is the total number of subscribers that have access to combined workshops and Digital offerings; (iii) “End of Period Clinical Subscribers” is the total number of Clinical subscribers; and (iv) “End of Period Subscribers” is the sum of End of Period Digital Subscribers, End of Period Workshops + Digital Subscribers and End of Period Clinical Subscribers. | ||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||
| UNAUDITED | |||||||||||||||||||
| Q2 2024 Variance | |||||||||||||||||||
| 2024 | |||||||||||||||||||
| Constant | |||||||||||||||||||
| Q2 2024 | Q2 2023 | 2024 | Currency | ||||||||||||||||
| Currency | Constant | vs | vs | ||||||||||||||||
| GAAP | Adjustment | Currency | GAAP | 2023 | 2023 | ||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Total Revenues | $ | 202,073 | $ | 653 | $ | 202,726 | $ | 226,830 | (10.9 | %) | (10.6 | %) | |||||||
| Digital Subscription Revenues(1) | $ | 134,551 | $ | 560 | $ | 135,111 | $ | 147,381 | (8.7 | %) | (8.3 | %) | |||||||
| Workshops + Digital Subscription Revenues(2) | $ | 45,682 | $ | 82 | $ | 45,764 | $ | 57,167 | (20.1 | %) | (19.9 | %) | |||||||
| Clinical Subscription Revenues(3) | $ | 19,723 | $ | — | $ | 19,723 | $ | 7,592 | 159.8 | % | 159.8 | % | |||||||
| Subscription Revenues(4) | $ | 199,956 | $ | 643 | $ | 200,599 | $ | 212,140 | (5.7 | %) | (5.4 | %) | |||||||
| Other Revenues(5) | $ | 2,117 | $ | 10 | $ | 2,127 | $ | 14,690 | (85.6 | %) | (85.5 | %) | |||||||
| Note: Totals may not sum due to rounding. | |||||||||||||||||||
| (1) “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings. | |||||||||||||||||||
| (2) “Workshops + Digital Subscription Revenues” consist of the fees associated with subscriptions for combined workshops and Digital offerings. | |||||||||||||||||||
| (3) “Clinical Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Clinical offerings. | |||||||||||||||||||
| (4) “Subscription Revenues” equal “Digital Subscription Revenues” plus “Workshops + Digital Subscription Revenues” plus “Clinical Subscription Revenues”. | |||||||||||||||||||
| (5) “Other Revenues” (formerly known as “product sales and other”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, “Other Revenues” included sales of consumer products. | |||||||||||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | ||||||||||||||||||||
| UNAUDITED | ||||||||||||||||||||
| YTD 2024 Variance | ||||||||||||||||||||
| 2024 | ||||||||||||||||||||
| Constant | ||||||||||||||||||||
| YTD 2024 | YTD 2023 | 2024 | Currency | |||||||||||||||||
| Currency | Constant | vs | vs | |||||||||||||||||
| GAAP | Adjustment | Currency | GAAP | 2023 | 2023 | |||||||||||||||
| Selected Financial Data | ||||||||||||||||||||
| Total Revenues | $ | 408,621 | $ | (130 | ) | $ | 408,491 | $ | 468,724 | (12.8 | %) | (12.9 | %) | |||||||
| Digital Subscription Revenues(1) | $ | 272,185 | $ | (43 | ) | $ | 272,142 | $ | 296,725 | (8.3 | %) | (8.3 | %) | |||||||
| Workshops + Digital Subscription Revenues(2) | $ | 93,352 | $ | (85 | ) | $ | 93,267 | $ | 118,855 | (21.5 | %) | (21.5 | %) | |||||||
| Clinical Subscription Revenues(3) | $ | 38,475 | $ | — | $ | 38,475 | $ | 7,592 | 406.8 | % | 406.8 | % | ||||||||
| Subscription Revenues(4) | $ | 404,012 | $ | (127 | ) | $ | 403,885 | $ | 423,172 | (4.5 | %) | (4.6 | %) | |||||||
| Other Revenues(5) | $ | 4,609 | $ | (3 | ) | $ | 4,606 | $ | 45,552 | (89.9 | %) | (89.9 | %) | |||||||
| Note: Totals may not sum due to rounding. | ||||||||||||||||||||
| (1) “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings. | ||||||||||||||||||||
| (2) “Workshops + Digital Subscription Revenues” consist of the fees associated with subscriptions for combined workshops and Digital offerings. | ||||||||||||||||||||
| (3) “Clinical Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Clinical offerings. | ||||||||||||||||||||
| (4) “Subscription Revenues” equal “Digital Subscription Revenues” plus “Workshops + Digital Subscription Revenues” plus “Clinical Subscription Revenues”. | ||||||||||||||||||||
| (5) “Other Revenues” (formerly known as “product sales and other”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, “Other Revenues” included sales of consumer products. | ||||||||||||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||||||||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||||||||||||||||||||||||||||||||
| UNAUDITED | |||||||||||||||||||||||||||||||||||||||||||||||||
| Q2 2024 Variance | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 Constant Currency | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Q2 2024 | Q2 2023 | Adjusted | Adjusted | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | 2024 | vs | 2024 | vs | |||||||||||||||||||||||||||||||||||||||||||||
| Currency | Constant | Constant | vs | 2023 | vs | 2023 | |||||||||||||||||||||||||||||||||||||||||||
| GAAP | Adjustment | Adjusted | Adjustment | Currency | Currency | GAAP | Adjustment | Adjusted | 2023 | Adjusted | 2023 | Adjusted | |||||||||||||||||||||||||||||||||||||
| Selected Financial Data | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | $ | 137,294 | $ | (102 | ) | (1) | $ | 137,192 | $ | 505 | $ | 137,799 | $ | 137,697 | $ | 143,180 | $ | 659 | (4) | $ | 143,839 | (4.1 | %) | (4.6 | %) | (3.8 | %) | (4.3 | %) | ||||||||||||||||||||
| Gross Margin | 67.9 | % | 67.9 | % | 68.0 | % | 67.9 | % | 63.1 | % | 63.4 | % | |||||||||||||||||||||||||||||||||||||
| Selling, General and Administrative Expenses | $ | 47,665 | $ | (2,081 | ) | (2) | $ | 45,584 | $ | 69 | $ | 47,734 | $ | 45,653 | $ | 65,744 | $ | (6,877 | ) | (5) | $ | 58,867 | (27.5 | %) | (22.6 | %) | (27.4 | %) | (22.4 | %) | |||||||||||||||||||
| Operating Income | $ | 35,933 | $ | 1,979 | (3) | $ | 37,912 | $ | 282 | $ | 36,215 | $ | 38,193 | $ | 26,317 | $ | 7,536 | (6) | $ | 33,853 | 36.5 | % | 12.0 | % | 37.6 | % | 12.8 | % | |||||||||||||||||||||
| Operating Income Margin | 17.8 | % | 18.8 | % | 17.9 | % | 18.8 | % | 11.6 | % | 14.9 | % | |||||||||||||||||||||||||||||||||||||
| Note: Totals may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||
| (1) Excludes the impact of the reversal of | |||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Excludes the net impact of | |||||||||||||||||||||||||||||||||||||||||||||||||
| (3) Excludes (a) the impact of the reversal of | |||||||||||||||||||||||||||||||||||||||||||||||||
| (4) Excludes the net impact of | |||||||||||||||||||||||||||||||||||||||||||||||||
| (5) Excludes the net impact of | |||||||||||||||||||||||||||||||||||||||||||||||||
| (6) Excludes (i) the net impact of (a) | |||||||||||||||||||||||||||||||||||||||||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||||||||||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | ||||||||||||||||||||||||||||||||||||||||||||||||
| UNAUDITED | ||||||||||||||||||||||||||||||||||||||||||||||||
| YTD 2024 Variance | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 Constant Currency | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| YTD 2024 | YTD 2023 | Adjusted | Adjusted | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | 2024 | vs | 2024 | vs | ||||||||||||||||||||||||||||||||||||||||||||
| Currency | Constant | Constant | vs | 2023 | vs | 2023 | ||||||||||||||||||||||||||||||||||||||||||
| GAAP | Adjustment | Adjusted | Adjustment | Currency | Currency | GAAP | Adjustment | Adjusted | 2023 | Adjusted | 2023 | Adjusted | ||||||||||||||||||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | $ | 275,094 | $ | 2,353 | (1) | $ | 277,447 | $ | (70 | ) | $ | 275,024 | $ | 277,377 | $ | 262,691 | $ | 19,276 | (5) | $ | 281,967 | 4.7 | % | (1.6 | %) | 4.7 | % | (1.6 | %) | |||||||||||||||||||
| Gross Margin | 67.3 | % | 67.9 | % | 67.3 | % | 67.9 | % | 56.0 | % | 60.2 | % | ||||||||||||||||||||||||||||||||||||
| Selling, General and Administrative Expenses | $ | 106,647 | $ | (5,363 | ) | (2) | $ | 101,284 | $ | (57 | ) | $ | 106,590 | $ | 101,227 | $ | 125,604 | $ | (14,638 | ) | (6) | $ | 110,966 | (15.1 | %) | (8.7 | %) | (15.1 | %) | (8.8 | %) | |||||||||||||||||
| Operating Loss | $ | (233,399 | ) | $ | 265,704 | (3) | $ | 32,305 | $ | 18 | $ | (233,381 | ) | $ | 32,428 | (4) | $ | (2,266 | ) | $ | 33,914 | (7) | $ | 31,648 | 10,195.1 | % | 2.1 | % | 10,194.3 | % | 2.5 | % | ||||||||||||||||
| Operating Loss Margin | (57.1 | %) | 7.9 | % | (57.1 | %) | 7.9 | % | (0.5 | %) | 6.8 | % | ||||||||||||||||||||||||||||||||||||
| Note: Totals may not sum due to rounding. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (1) Excludes the net impact of | ||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Excludes the net impact of | ||||||||||||||||||||||||||||||||||||||||||||||||
| (3) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of | ||||||||||||||||||||||||||||||||||||||||||||||||
| (4) Includes | ||||||||||||||||||||||||||||||||||||||||||||||||
| (5) Excludes the net impact of | ||||||||||||||||||||||||||||||||||||||||||||||||
| (6) Excludes the net impact of | ||||||||||||||||||||||||||||||||||||||||||||||||
| (7) Excludes (i) the net impact of (a) | ||||||||||||||||||||||||||||||||||||||||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||
| (IN THOUSANDS) | ||||||||||||||||||
| UNAUDITED | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 29, | July 1, | June 29, | July 1, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net Income (Loss) | $ | 23,269 | $ | 50,828 | $ | (324,633 | ) | $ | (67,851 | ) | ||||||||
| Interest | 28,577 | 24,075 | 53,304 | 46,921 | ||||||||||||||
| Taxes | (15,835 | ) | (48,066 | ) | 39,613 | 19,515 | ||||||||||||
| Depreciation and Amortization | 9,545 | 11,932 | 19,948 | 22,204 | ||||||||||||||
| Stock-based Compensation | 2,740 | 3,063 | 5,141 | 5,731 | ||||||||||||||
| EBITDAS | $ | 48,296 | $ | 41,832 | $ | (206,627 | ) | $ | 26,520 | |||||||||
| Franchise Rights Acquired Impairments(1) | — | — | 257,988 | — | ||||||||||||||
| 2023 Plan Restructuring Charges(2) | 1,910 | 1,784 | 7,403 | 24,416 | ||||||||||||||
| 2022 Plan Restructuring Charges(3) | 69 | 818 | 313 | 858 | ||||||||||||||
| 2021 Plan Restructuring Charges(4) | — | 64 | — | 57 | ||||||||||||||
| 2020 Plan Restructuring Charges(5) | — | (16 | ) | — | (22 | ) | ||||||||||||
| Acquisition Transaction Costs(6) | — | 4,886 | — | 8,605 | ||||||||||||||
| Adjusted EBITDAS | $ | 50,275 | $ | 49,368 | $ | 59,077 | $ | 60,434 | ||||||||||
| Note: Totals may not sum due to rounding. | ||||||||||||||||||
| (1) Impairment charges of the Company's franchise rights acquired of | ||||||||||||||||||
| (2) Charges associated with the Company's previously disclosed 2023 restructuring plan. | ||||||||||||||||||
| (3) Charges associated with the Company's previously disclosed 2022 restructuring plan. | ||||||||||||||||||
| (4) Charges associated with the Company's previously disclosed 2021 organizational restructuring plan. | ||||||||||||||||||
| (5) The reversal of charges associated with the Company's previously disclosed 2020 organizational restructuring plan. | ||||||||||||||||||
| (6) Certain non-recurring transaction costs in connection with the Company's acquisition of Sequence. | ||||||||||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||
| (IN THOUSANDS, EXCEPT RATIOS) | ||||||||||||||||||||||
| UNAUDITED | ||||||||||||||||||||||
| Trailing Twelve | ||||||||||||||||||||||
| Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Months | ||||||||||||||||||
| Net Debt to Adjusted EBITDAS | ||||||||||||||||||||||
| Net Income (Loss) | $ | 43,731 | $ | (88,135 | ) | $ | (347,902 | ) | $ | 23,269 | $ | (369,037 | ) | |||||||||
| Interest | 24,508 | 24,464 | 24,727 | 28,577 | 102,276 | |||||||||||||||||
| Taxes | (38,447 | ) | 57,556 | 55,448 | (15,835 | ) | 58,722 | |||||||||||||||
| Depreciation and Amortization | 13,428 | 10,007 | 10,403 | 9,545 | 43,383 | |||||||||||||||||
| Stock-based Compensation | 3,225 | 2,346 | 2,402 | 2,740 | 10,713 | |||||||||||||||||
| EBITDAS | $ | 46,445 | $ | 6,238 | $ | (254,922 | ) | $ | 48,296 | $ | (153,943 | ) | ||||||||||
| Franchise Rights Acquired and Goodwill Impairments | — | 3,633 | (1) | 257,988 | (2) | — | 261,621 | |||||||||||||||
| 2023 Plan Restructuring Charges (3) | 6,187 | 23,140 | 5,493 | 1,910 | 36,730 | |||||||||||||||||
| 2022 Plan Restructuring Charges (4) | (212 | ) | 489 | 244 | 69 | 590 | ||||||||||||||||
| Adjusted EBITDAS | $ | 52,420 | $ | 33,500 | $ | 8,803 | $ | 50,275 | $ | 144,998 | ||||||||||||
| Total Debt | $ | 1,428,553 | ||||||||||||||||||||
| Less: Cash | 42,709 | |||||||||||||||||||||
| Net Debt | $ | 1,385,844 | ||||||||||||||||||||
| Total Debt to Net Loss | (3.9 | ) | X | |||||||||||||||||||
| Net Debt to Adjusted EBITDAS | 9.6 | X | ||||||||||||||||||||
| Note: Totals may not sum due to rounding. | ||||||||||||||||||||||
| (1) Impairment charges of the Company's goodwill of | ||||||||||||||||||||||
| (2) Impairment charges of the Company's franchise rights acquired of | ||||||||||||||||||||||
| (3) Charges associated with the Company's previously disclosed 2023 restructuring plan. | ||||||||||||||||||||||
| (4) The reversal of charges or charges, as applicable, associated with the Company's previously disclosed 2022 restructuring plan. | ||||||||||||||||||||||
| WW INTERNATIONAL, INC. AND SUBSIDIARIES | |||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||
| (IN MILLIONS) | |||||
| UNAUDITED | |||||
| Full Year 2024 | |||||
| Operating Income Guidance Reconciliation | |||||
| Operating Loss | $ | (180.7 | ) | ||
| Net Restructuring Charges(1) | $ | (22.7 | ) | ||
| Franchise Rights Acquired Impairments(2) | $ | (258.0 | ) | ||
| Adjusted Operating Income | $ | 100.0 | |||
| (1) Reflects the net restructuring charges incurred in the first half of fiscal 2024 related to the Company's previously disclosed 2023 restructuring plan and 2022 restructuring plan, in addition to anticipated restructuring charges in the second half of fiscal 2024 in the high end of the restructuring charges range related to the 2024 restructuring plan. | |||||
| (2) Reflects the impairment charges of the Company's franchise rights acquired related to its United States, Australia, New Zealand and United Kingdom units of account in the first quarter of fiscal 2024. | |||||
FAQ
What were WW's Q2 2024 revenues?
How did WW's net income change in Q2 2024?
What is the 2024 restructuring plan of WW?
What was WW's Q2 2024 operating income?
What is WW's guidance for full-year fiscal 2024?
How did WW's End of Period subscribers fare in Q2 2024?
