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WW International, Inc. Announces Third Quarter 2024 Results

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WW International reported Q3 2024 results with revenues of $192.9 million, down 10.2% year-over-year. The company posted an operating loss of $39.0 million compared to operating income of $30.6 million in the prior year. End of Period Subscribers decreased 8.8% to 3.7 million. Clinical Subscribers grew 71.5% to 78,000. Adjusted gross margin improved to 69.1%. The company recorded non-cash impairment charges of $57.0 million for franchise rights. WW reiterated its full year 2024 guidance, expecting year-end subscribers of at least 3.1 million and revenue of at least $770.0 million.

WW International ha riportato i risultati del terzo trimestre 2024 con ricavi di 192,9 milioni di dollari, in calo del 10,2% rispetto all’anno precedente. L’azienda ha registrato una perdita operativa di 39,0 milioni di dollari rispetto a un utile operativo di 30,6 milioni di dollari nello stesso trimestre dell’anno scorso. Gli abbonati al termine del periodo sono diminuiti dell'8,8%, raggiungendo 3,7 milioni. Gli abbonati clinici sono aumentati del 71,5%, raggiungendo 78.000. Il margine lordo rettificato è migliorato, arrivando al 69,1%. L’azienda ha registrato oneri non monetari di riduzione di valore dei diritti di franchising per un totale di 57,0 milioni di dollari. WW ha confermato le sue previsioni per l'intero anno 2024, prevedendo un numero di abbonati di almeno 3,1 milioni e ricavi di almeno 770,0 milioni di dollari.

WW International reportó resultados del tercer trimestre de 2024 con ingresos de $192.9 millones, una disminución del 10.2% interanual. La compañía registró una pérdida operativa de $39.0 millones en comparación con un ingreso operativo de $30.6 millones en el año anterior. Los suscriptores al final del período disminuyeron un 8.8% a 3.7 millones. Los suscriptores clínicos crecieron un 71.5% a 78,000. El margen bruto ajustado mejoró al 69.1%. La compañía registró cargos por deterioro no monetario de $57.0 millones por derechos de franquicia. WW reiteró su pronóstico para el año 2024, esperando al menos 3.1 millones de suscriptores y ingresos de al menos $770.0 millones.

WW International은 2024년 3분기 결과를 보고하며 수익이 $192.9 백만으로 전년 대비 10.2% 감소했다고 밝혔습니다. 회사는 전년 동기 30.6 백만 달러의 운영 수익에 비해 $39.0 백만의 운영 손실을 기록했습니다. 기간 종료 시점의 가입자 수는 8.8% 감소하여 3.7 백만에 이르렀습니다. 임상 가입자는 71.5% 증가해 78,000명에 도달했습니다. 조정된 총 마진은 69.1%로 개선되었습니다. 회사는 프랜차이즈 권리에 대해 57.0 백만 달러의 비현금 손상 비용을 기록했습니다. WW는 2024년 전체 연도 가이드를 재확인하며 연말 가입자가 최소 3.1 백만 명, 수익이 최소 770.0 백만 달러에 이를 것으로 예상하고 있습니다.

WW International a annoncé ses résultats pour le troisième trimestre 2024 avec des revenus de 192,9 millions de dollars, en baisse de 10,2% par rapport à l'année précédente. L'entreprise a enregistré une perte d'exploitation de 39,0 millions de dollars contre un bénéfice d'exploitation de 30,6 millions de dollars l'année précédente. Le nombre d'abonnés à la fin de la période a diminué de 8,8% pour atteindre 3,7 millions. Le nombre d'abonnés cliniques a augmenté de 71,5% pour atteindre 78 000. La marge brute ajustée a été améliorée à 69,1%. L'entreprise a enregistré des charges de dépréciation non monétaires de 57,0 millions de dollars pour des droits de franchise. WW a réaffirmé ses prévisions pour l'année 2024, s'attendant à avoir au moins 3,1 millions d'abonnés et des revenus d'au moins 770,0 millions de dollars.

WW International hat die Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit Einnahmen von 192,9 Millionen US-Dollar, was einem Rückgang von 10,2% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen operativen Verlust von 39,0 Millionen US-Dollar, im Vergleich zu einem operativen Gewinn von 30,6 Millionen US-Dollar im Vorjahr. Die Zahl der Abonnenten am Ende des Zeitraums verringerte sich um 8,8% auf 3,7 Millionen. Die klinischen Abonnenten nahmen um 71,5% auf 78.000 zu. Die bereinigte Bruttomarge verbesserte sich auf 69,1%. Das Unternehmen verzeichnete nicht zahlungswirksame Wertminderungsaufwendungen in Höhe von 57,0 Millionen US-Dollar für Franchise-Rechte. WW bestätigte seine Gesamtjahresprognose für 2024 und erwartet zum Jahresende mindestens 3,1 Millionen Abonnenten und Einnahmen von mindestens 770,0 Millionen US-Dollar.

Positive
  • Clinical Subscribers grew 71.5% year-over-year
  • Adjusted gross margin improved to 69.1% from 66.2%
  • Clinical Subscription Revenues increased 90.7% to $19.1 million
Negative
  • Total revenues declined 10.2% to $192.9 million
  • Operating loss of $39.0 million vs income of $30.6 million last year
  • End of Period Subscribers decreased 8.8% to 3.7 million
  • Recorded $57.0 million in non-cash impairment charges
  • Digital and Workshops + Digital businesses showed declining recruitments

Insights

Q3 2024 results reveal significant challenges at WeightWatchers, with concerning metrics across multiple fronts. Revenue declined 10.2% to $192.9 million, while subscriber base dropped 8.8% to 3.7 million. The company posted an operating loss of $39 million, including a $57 million non-cash impairment charge.

The bright spot is the Clinical segment (formerly Sequence) showing 71.5% subscriber growth, contributing $19.1 million in revenues. Cost reduction initiatives yielded improved adjusted gross margins of 69.1%. However, the core Digital and Workshops businesses continue to struggle with declining recruitment and subscribers.

The liquidity position appears tight with only $57.2 million cash on hand, though the company maintains an undrawn credit facility. The reiterated full-year guidance suggesting revenue of at least $770 million will require strong Q4 execution given year-to-date performance.

  • End of Period Subscribers of 3.7 million
  • Revenues of $192.9 million
  • Gross margin of 67.1%; adjusted gross margin of 69.1%
  • Operating Loss of $39.0 million; adjusted operating income of $35.7 million

NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (“WeightWatchers,” “WW,” or the “Company”) today announced its results for the third quarter of fiscal 2024.

“For over six decades, WeightWatchers has been the trusted leader in weight management, offering a full spectrum of science-backed, proven weight management solutions. With our expanded clinical offering, iconic trusted brand, and global community of members, we are well-equipped to succeed in today’s rapidly evolving market,” said Tara Comonte, Interim CEO. “We do, however, have significant work to do to better unify our solutions and enhance our member experience. I am fully committed to leading our team through this next phase, as we seek to drive meaningful progress in these strategic priorities and return the Company to sustainable growth.”

“The execution of our cost reduction initiatives continues to yield results, including another quarter of record adjusted gross margin,” said Heather Stark, the Company’s CFO. “We remain on track to deliver on our 2024 adjusted operating income guidance and deliver on our overall cost savings targets. Our current actions are driving improved profitability and liquidity as we work to turn around the business.”

Q3 2024 Consolidated Results

            % Change
 Three Months Ended    Adjusted for
 September 28, September 30,    Constant
  2024   2023  % Change Currency(1)
(in millions except percentages and per share amounts)

       
Subscription Revenues, net$191.2  $203.5  (6.0%) (6.4%)
Other Revenues, net(2) 1.6   11.4  (85.6%) (85.7%)
Revenues, net$192.9  $214.9  (10.2%) (10.6%)
Gross Profit$129.5  $141.8  (8.6%) (9.1%)
Non-GAAP Adjustments(1)       
Net Restructuring Charges(3) 3.8   0.4     
Adjusted Gross Profit(1)$133.3  $142.2  (6.2%) (6.6%)
Operating (Loss) Income($39.0) $30.6  100.0%* 100.0%*
Non-GAAP Adjustments(1)       
Franchise Rights Acquired Impairments 57.0   -     
Net Restructuring Charges(3) 13.8   6.0     
Former CEO Separation Expenses 3.9   -     
Adjusted Operating Income(1)$35.7  $36.6  (2.5%) (4.2%)
Net (Loss) Income($46.2) $43.7  100.0%* 100.0%*
EPS($0.58) $0.54  100.0%* 100.0%*
Non-GAAP Adjustments(1)       
Franchise Rights Acquired Impairments 0.65   -     
Net Restructuring Charges(3) 0.13   0.06     
Former CEO Separation Expenses 0.04   -     
Adjusted EPS(1)$0.24  $0.60  (60.6%) (61.7%)


Total Paid Weeks
 48.6   52.5  (7.4%) N/A
Digital(4) Paid Weeks 40.4   42.8  (5.6%) N/A
Workshops + Digital(5) Paid Weeks 7.2   9.1  (21.2%) N/A
Clinical(6) Paid Weeks 1.0   0.5  91.3% N/A
             
End of Period Subscribers(7) 3.7   4.0  (8.8%) N/A
Digital Subscribers 3.0   3.3  (7.3%) N/A
Workshops + Digital Subscribers 0.5   0.7  (21.2%) N/A
Clinical Subscribers 0.1   0.0  71.5% N/A
___________________________________
Note: Totals may not sum due to rounding.
*Note: Percentage in excess of 100.0% and not meaningful
(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 2024, 2023, and 2022 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) combined with the Company’s digital subscription product offerings.
(7)   “Subscribers” refers to Digital subscribers, Workshops + Digital subscribers, and Clinical subscribers who participate in recurring bill programs in Company-owned operations.

 

Q3 2024 Business and Financial Highlights

  • End of Period Subscribers in Q3 2024 were down 8.8% versus the prior year period, driven by declines in the Digital and Workshops + Digital businesses reflecting year to date recruitment declines. Q3 2024 End of Period Clinical Subscribers of 78 thousand increased 71.5% versus the prior year period.

  • Total Paid Weeks in Q3 2024 were down 7.4% versus the prior year period driven by declines in the Digital and Workshops + Digital businesses. Total Paid Weeks benefited from growth in Clinical Paid Weeks.

  • Revenues in Q3 2024 were $192.9 million. On a constant currency basis, Q3 2024 revenues decreased 10.6% versus the prior year period.

    • Subscription Revenues in Q3 2024 were $191.2 million. On a constant currency basis, these revenues decreased 6.4% versus the prior year period primarily driven by lower recruitments and non-Clinical Incoming Subscribers. Additionally, Subscription Revenues were negatively impacted by the continued mix shift from the Workshops + Digital business to the Digital business and a higher mix of Digital Subscribers within their initial, lower-priced commitment periods. Subscription Revenues benefited from $19.1 million of Clinical Subscription Revenues, which increased 90.7% versus the prior year period.

    • Other Revenues in Q3 2024 were $1.6 million. On a constant currency basis, these revenues decreased 85.7% versus the prior year period driven by the discontinuation of the consumer products business at the end of fiscal 2023.

  • Gross Profit in Q3 2024 was $129.5 million, compared to $141.8 million in the prior year period. Adjusted gross profit, which excluded the net impact of $3.8 million of restructuring charges, was $133.3 million. Adjusted gross profit in Q3 2023, which excluded the net impact of $0.4 million of restructuring charges, was $142.2 million.

    • Gross Margin in Q3 2024 was 67.1%, as compared to 66.0% in the prior year period. Adjusted gross margin in Q3 2024 was 69.1%, up from an adjusted gross margin of 66.2% in the prior year period, driven primarily by actions to reduce the fixed cost base within our business and the discontinuation of our lower margin consumer products business at the end of fiscal 2023.

  • Non-Cash Intangible Impairment Charges: During Q3 2024, the Company recorded non-cash impairment charges of franchise rights acquired totaling $57.0 million. These impairments were primarily driven by an increase in the Company’s weighted average cost of capital reflecting market factors.

  • Operating Loss in Q3 2024 was $39.0 million, compared to operating income of $30.6 million in the prior year period. Adjusted operating income, which excluded $57.0 million of non-cash intangible impairment charges, the net impact of $13.8 million of restructuring charges, and $3.9 million of former CEO separation expenses, was $35.7 million. Adjusted operating income in Q3 2023, which excluded the net impact of $6.0 million of restructuring charges, was $36.6 million.

  • Income Tax Benefit in Q3 2024 was $27.3 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 $38.4 million.

  • Net Loss in Q3 2024 was $46.2 million compared to net income of $43.7 million in the prior year period.

  • Diluted Net Loss per share in Q3 2024 was $0.58 compared to diluted earnings per share of $0.54 in the prior year period. Q3 2024 adjusted earnings per share, which excluded $0.65 of non-cash intangible impairment charges, $0.13 of net impact of restructuring charges, and $0.04 of former CEO separation expenses, was $0.24. In the prior year period, adjusted earnings per share, which excluded $0.06 of net impact of restructuring charges, was $0.60.

    • Additionally, certain other items affected year-over-year comparability:
      • In Q3 2024, $0.33 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.
      • In Q3 2023, $0.54 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.

Other Items

  • Cash balance as of September 28, 2024 was $57.2 million. On that same date, the Company had no outstanding borrowings under its revolving credit facility.

Full Year Fiscal 2024 Guidance

The Company is reiterating its following full year fiscal 2024 guidance:

  • Year end total subscribers of at least 3.1 million;
  • Revenue of at least $770.0 million; and
  • Excluding non-cash intangible impairment charges and the net impact of restructuring charges (both of which include Q3 2024 charges), and the Q3 2024 former CEO separation expenses,
    • Adjusted operating income of at least $100.0 million; and
    • Adjusted EBITDAS of at least $150.0 million.

Reflecting the Q3 2024 charges and expenses referred to above, the Company is updating its full year fiscal 2024 operating loss guidance to not exceed $240.4 million.

Third Quarter 2024 Conference Call and Webcast
The Company has scheduled a conference call today at 8:30 a.m. ET.  During the conference call, Tara Comonte, Interim President and Chief Executive Officer, Heather Stark, Chief Financial Officer, and Donna Boyer, Chief Product Officer, will discuss the third 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 (loss) income, operating (loss) income margin, diluted (net loss) earnings per share, 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 third quarter of fiscal 2024 to exclude (x) the impact of impairment charges for the Company’s franchise rights acquired related to its United States and United Kingdom units of account, (y) the net impact of (a) charges associated with the Company's previously disclosed 2024 restructuring plan (the “2024 plan”), (b) charges associated with the Company's previously disclosed 2023 restructuring plan (the “2023 plan”) or the reversal of certain of the charges associated with the 2023 plan, as applicable and (c) the reversal of certain of the charges associated with the Company's previously disclosed 2022 restructuring plan (the “2022 plan”), and (z) the impact of certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer (“CEO”); (ii) the first nine 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, United Kingdom and New Zealand units of account, (y) the net impact of charges associated with the 2024 plan, the 2023 plan and the 2022 plan, and (z) the impact of certain non-recurring expenses in connection with the separation of the Company's former CEO; (iii) the third quarter of fiscal 2023 to exclude the net impact of charges associated with the 2023 plan and the reversal of certain of the charges associated with the 2022 plan; and (iv) the first nine 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 net impact of restructuring charges, the impact of acquisition transaction costs, and the impact of former CEO separation expenses, 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, acquisition transaction costs and former CEO separation expenses (“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; regulatory, reputational and other risks associated with the Company’s new compounded GLP-1 offering; 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 chief executive officer transition, and its ability to appoint a permanent chief executive officer with the required level of experience and expertise; 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, including federal and state regulations relating to compounded medications; 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:
John Mills or Anna Kate Heller
WeightWatchers@icrinc.com

Media:
Kelsey Merkel
Communications@ww.com


  
 WW INTERNATIONAL, INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS AT
 (IN THOUSANDS)
 UNAUDITED
      
   September 28, December 30,
    2024   2023 
ASSETS    
CURRENT ASSETS    
 Cash and cash equivalents $57,181  $109,366 
 Receivables (net of allowances: September 28, 2024 - $2,399 and December 30, 2023 - $1,041)  12,615   14,938 
 Prepaid income taxes  11,240   25,370 
 Prepaid marketing and advertising  3,390   10,149 
 Prepaid expenses and other current assets  16,802   19,651 
 TOTAL CURRENT ASSETS  101,228   179,474 
Property and equipment, net  16,901   19,741 
Operating lease assets  45,312   52,272 
Franchise rights acquired  71,184   386,526 
Goodwill  242,754   243,441 
Other intangible assets, net  49,319   63,208 
Deferred income taxes  17,309   19,683 
Other noncurrent assets  18,346   17,685 
 TOTAL ASSETS $562,353  $982,030 
LIABILITIES AND TOTAL DEFICIT    
CURRENT LIABILITIES    
 Portion of operating lease liabilities due within one year $8,976  $9,613 
 Accounts payable  16,739   18,507 
 Salaries and wages payable  62,253   79,096 
 Accrued marketing and advertising  11,519   18,215 
 Accrued interest  17,478   5,346 
 Deferred acquisition payable  15,055   16,500 
 Other accrued liabilities  19,307   22,610 
 Income taxes payable  6,705   1,609 
 Deferred revenue  31,425   33,966 
 TOTAL CURRENT LIABILITIES  189,457   205,462 
Long-term debt, net  1,429,598   1,426,464 
Long-term operating lease liabilities  46,925   53,461 
Deferred income taxes  23,467   41,994 
Other   1,626   15,743 
 TOTAL LIABILITIES  1,691,073   1,743,124 
TOTAL DEFICIT    
 Common stock, $0 par value; 1,000,000 shares authorized; 130,048 shares issued at September 28, 2024 and 130,048 shares issued at December 30, 2023  0   0 
 Treasury stock, at cost, 50,314 shares at September 28, 2024 and 50,859 shares at December 30, 2023  (3,039,309)  (3,064,628)
 Retained earnings  1,925,146   2,314,834 
 Accumulated other comprehensive loss  (14,557)  (11,300)
 TOTAL DEFICIT  (1,128,720)  (761,094)
 TOTAL LIABILITIES AND TOTAL DEFICIT $562,353  $982,030 
      



WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
       
    Three Months Ended
    September 28, September 30,
     2024   2023 
Subscription revenues, net (1)  $191,248  $203,496 
Other revenues, net (2)   1,639   11,375 
 Revenues, net   192,887   214,871 
Cost of subscription revenues (3)   63,329   67,080 
Cost of other revenues   62   6,036 
 Cost of revenues   63,391   73,116 
 Gross profit   129,496   141,755 
Marketing expenses   44,402   48,114 
Selling, general and administrative expenses   67,094   63,034 
Franchise rights acquired impairments   57,045    
 Operating (loss) income   (39,045)  30,607 
Interest expense   28,619   24,508 
Other expense, net   5,870   815 
 (Loss) income before income taxes   (73,534)  5,284 
Benefit from income taxes   (27,342)  (38,447)
 Net (loss) income  $(46,192) $43,731 
       
(Net loss) earnings per share     
 Basic  $(0.58) $0.55 
 Diluted  $(0.58) $0.54 
       
Weighted average common shares outstanding     
 Basic   79,732   78,979 
 Diluted   79,732   80,638 
       
____     
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 combined Clinical and Digital 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
       
    Nine Months Ended
    September 28, September 30,
     2024   2023 
Subscription revenues, net (1)  $595,260  $626,667 
Other revenues, net (2)   6,248   56,927 
 Revenues, net   601,508   683,594 
Cost of subscription revenues (3)   195,168   233,354 
Cost of other revenues   1,750   45,794 
 Cost of revenues   196,918   279,148 
 Gross profit   404,590   404,446 
Marketing expenses   188,260   187,468 
Selling, general and administrative expenses   173,741   188,638 
Franchise rights acquired impairments   315,033    
 Operating (loss) income   (272,444)  28,340 
Interest expense   81,923   71,429 
Other expense (income), net   4,187   (36)
 Loss before income taxes   (358,554)  (43,053)
Provision for (benefit from) income taxes   12,270   (18,933)
 Net loss  $(370,824) $(24,120)
       
Net loss per share     
 Basic  $(4.67) $(0.32)
 Diluted  $(4.67) $(0.32)
       
Weighted average common shares outstanding     
 Basic   79,474   75,861 
 Diluted   79,474   75,861 
       
____     
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 combined Clinical and Digital 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
      
   Nine Months Ended
   September 28, September 30,
    2024   2023 
Operating activities:    
 Net loss $(370,824) $(24,120)
 Adjustments to reconcile net loss to cash used for operating activities:    
 Depreciation and amortization  29,103   39,805 
 Amortization of deferred financing costs and debt discount  3,763   3,763 
 Impairment of franchise rights acquired  315,033    
 Impairment of intangible and long-lived assets  297   197 
 Share-based compensation expense  7,059   12,838 
 Deferred tax benefit  (15,905)  (7,449)
 Allowance for doubtful accounts  12,296   407 
 Reserve for inventory obsolescence  75   1,897 
 Foreign currency exchange rate loss (gain)  1,902   (31)
 Changes in cash due to:    
 Receivables  4,675   9,117 
 Inventories  97   9,009 
 Prepaid expenses  19,754   (27,301)
 Accounts payable  (1,718)  1,221 
 Accrued liabilities  (14,551)  (17,010)
 Deferred revenue  (2,745)  309 
 Other long term assets and liabilities, net  (15,334)  (2,701)
 Income taxes  5,576   (1,104)
 Cash used for operating activities  (21,447)  (1,153)
Investing activities:    
 Capital expenditures  (598)  (2,143)
 Capitalized software and website development expenditures  (12,620)  (26,190)
 Cash paid for acquisitions, net of cash acquired     (38,362)
 Other items, net  (5)  (14)
 Cash used for investing activities  (13,223)  (66,709)
Financing activities:    
 Taxes paid related to net share settlement of equity awards  (631)  (1,417)
 Proceeds from stock options exercised     710 
 Cash paid for acquisitions  (16,500)  (1,178)
 Other items, net  (4)  (43)
 Cash used for financing activities  (17,135)  (1,928)
Effect of exchange rate changes on cash and cash equivalents  (380)  (1,038)
Net decrease in cash and cash equivalents  (52,185)  (70,828)
Cash and cash equivalents, beginning of period  109,366   178,326 
Cash and cash equivalents, end of period $57,181  $107,498 
      



WW INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
        
  Three Months Ended   
  September 28, September 30,   
  2024 2023 Variance
       
Paid Weeks (1)     
Digital Paid Weeks40,397 42,810 (5.6%)
Workshops + Digital Paid Weeks7,202 9,133 (21.2%)
Clinical Paid Weeks1,022 534 91.3%
Total Paid Weeks48,621 52,478 (7.4%)
       
End of Period Subscribers (2)     
End of Period Digital Subscribers3,043 3,284 (7.3%)
End of Period Workshops + Digital Subscribers546 693 (21.2%)
End of Period Clinical Subscribers78 45 71.5%
Total End of Period Subscribers3,667 4,022 (8.8%)
        
____       
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 combined Clinical and Digital 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 subscribers that have access to combined Clinical and Digital offerings; 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
       
  Nine Months Ended  
  September 28, September 30,   
  2024 2023 Variance
       
Paid Weeks (1)     
Digital Paid Weeks124,695 126,858 (1.7%)
Workshops + Digital Paid Weeks23,308 29,039 (19.7%)
Clinical Paid Weeks3,144 889 253.6%
Total Paid Weeks151,147 156,786 (3.6%)
       
End of Period Subscribers (2)     
End of Period Digital Subscribers3,043 3,284 (7.3%)
End of Period Workshops + Digital Subscribers546 693 (21.2%)
End of Period Clinical Subscribers78 45 71.5%
Total End of Period Subscribers3,667 4,022 (8.8%)
       
____      
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 combined Clinical and Digital 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 subscribers that have access to combined Clinical and Digital offerings; 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
            
         Q3 2024 Variance
           2024 
       Constant
 Q3 2024 Q3 2023 2024  Currency
   Currency Constant   vs vs
 GAAP Adjustment Currency GAAP 2023  2023 
            
Selected Financial Data           
Total Revenues$192,887 $(710) $192,177 $214,871 (10.2%) (10.6%)
Digital Subscription Revenues (1)$127,179 $(571) $126,608 $140,889 (9.7%) (10.1%)
Workshops + Digital Subscription Revenues (2)$45,015 $(121) $44,894 $52,618 (14.4%) (14.7%)
Clinical Subscription Revenues (3)$19,054 $  $19,054 $9,989 90.7% 90.7%
Subscription Revenues (4)$191,248 $(693) $190,555 $203,496 (6.0%) (6.4%)
Other Revenues (5)$1,639 $(17) $1,622 $11,375 (85.6%) (85.7%)
            
____           
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 combined Clinical and Digital 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$601,508 $(840) $600,668 $683,594 (12.0%) (12.1%)
Digital Subscription Revenues (1)$399,364 $(614) $398,750 $437,613 (8.7%) (8.9%)
Workshops + Digital Subscription Revenues (2)$138,367 $(206) $138,161 $171,473 (19.3%) (19.4%)
Clinical Subscription Revenues (3)$57,529 $  $57,529 $17,581 227.2% 227.2%
Subscription Revenues (4)$595,260 $(820) $594,440 $626,667 (5.0%) (5.1%)
Other Revenues (5)$6,248 $(20) $6,228 $56,927 (89.0%) (89.1%)
            
____           
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 combined Clinical and Digital 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 AND PER SHARE AMOUNTS)
UNAUDITED
                          
                   Q3 2024 Variance
                       2024 Constant Currency
                     2024   2024
 Q3 2024 Q3 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$129,496 $3,820(1)$133,316 $(598) $128,898 $132,718 $141,755 $398(11)$142,153 (8.6%) (6.2%) (9.1%) (6.6%)
Gross Margin67.1%   69.1%   67.1% 69.1% 66.0%   66.2%        
                          
Selling, General and Administrative Expenses$67,094 $(13,844)(2)$53,250 $(63) $67,031 $53,186 $63,034 $(5,577)(12)$57,457 6.4% (7.3%) 6.3% (7.4%)
                          
Operating (Loss) Income$(39,045) $74,709(3)$35,664 $(457) $(39,502) $35,033(7)$30,607 $5,975(13)$36,582 (227.6%) (2.5%) (229.1%) (4.2%)
Operating (Loss) Income Margin(20.2%)   18.5%   (20.6%) 18.2% 14.2%   17.0%        
                          
Benefit from Income Taxes$(27,342) $9,694(4)$(17,648) $(118) $(27,460) $(17,789)(8)$(38,447) $1,496(14)$(36,951) (28.9%) (52.2%) (28.6%) (51.9%)
                          
Net (Loss) Income$(46,192) $65,015(5)$18,823 $(339) $(46,531) $18,333(9)$43,731 $4,479(15)$48,210 (205.6%) (61.0%) (206.4%) (62.0%)
                          
Diluted (Net Loss) Earnings Per Share$(0.58) $0.82(6)$0.24 $(0.00) $(0.58) $0.23(10)$0.54 $0.06(16)$0.60 (206.8%) (60.6%) (207.6%) (61.6%)
                          
____                         
Note: Totals may not sum due to rounding.
(1) Excludes the net impact of $2,450 of charges associated with the Company's previously disclosed 2024 restructuring plan and $1,370 of charges associated with the Company's previously disclosed 2023 restructuring plan.
(2) Excludes the net impact of $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan, the reversal of $2,119 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $257 of charges associated with the Company's previously disclosed 2022 restructuring plan, and the impact of $3,858 of former CEO separation expenses.
(3) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $54,295 and $2,750 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $2,450 of charges and $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (b) $1,370 of charges and the reversal of $2,119 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (c) the reversal of $257 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to selling, general and administrative expenses, and (iii) the impact of $3,858 of former CEO separation expenses recorded to selling, general and administrative expenses.
(4) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $4,593 and $688 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $3,700 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) the reversal of $187 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) the reversal of $64 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $964 of former CEO separation expenses.
(5) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $49,702 and $2,062 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $11,112 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) the reversal of $562 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) the reversal of $193 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $2,894 of former CEO separation expenses.
(6) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $0.62 and $0.03 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $0.14 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) the reversal of $0.01 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) the reversal of $0.00 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $0.04 of former CEO separation expenses.
(7) Includes $(174) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.
(8) Includes $(23) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.
(9) Includes $(151) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.
(10) Includes $(0.01) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.
(11) Excludes the net impact of $444 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $46 of charges associated with the Company's previously disclosed 2022 restructuring plan.
(12) Excludes the net impact of $5,743 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $166 of charges associated with the Company's previously disclosed 2022 restructuring plan.
(13) Excludes the net impact of (a) $444 of charges and $5,743 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (b) the reversal of $46 of charges and the reversal of $166 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively.
(14) Excludes the net impact of $1,549 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $53 of charges associated with the Company's previously disclosed 2022 restructuring plan.
(15) Excludes the net impact of $4,638 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $159 of charges associated with the Company's previously disclosed 2022 restructuring plan.
(16) Excludes the net impact of $0.06 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $0.00 of charges associated with the Company's previously disclosed 2022 restructuring plan.
            



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES AND PER SHARE AMOUNTS)
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$404,590 $6,173(1)$410,763 $(668) $403,922 $410,095 $404,446 $19,675(10)$424,121 0.0% (3.1%) (0.1%) (3.3%)
Gross Margin 67.3%    68.3%    67.2%  68.3%  59.2%    62.0%        
                          
Selling, General and Administrative Expenses$173,741 $(19,207)(2)$154,534 $(120) $173,621 $154,414 $188,638 $(20,215)(11)$168,423 (7.9%) (8.2%) (8.0%) (8.3%)
                          
Operating (Loss) Income$(272,444) $340,413(3)$67,969 $(439) $(272,883) $67,461(7)$28,340 $39,890(12)$68,230 (1,061.3%) (0.4%) (1,062.9%) (1.1%)
Operating (Loss) Income Margin (45.3%)    11.3%    (45.4%)  11.2%  4.1%    10.0%        
                          
Provision for (Benefit from) Income Taxes$12,270 $28,127(4)$40,397 $(111) $12,159 $40,280(8)$(18,933) $8,904(13)$(10,029) (164.8%) (502.8%) (164.2%) (501.6%)
                          
Net Loss$(370,824) $312,286(5)$(58,538) $(327) $(371,151) $(58,928)(9)$(24,120) $30,986(14)$6,866 1,437.4% (952.5%) 1,438.8% (958.2%)
                          
Diluted Net Loss Per Share$(4.67) $3.93(6)$(0.74) $(0.00) $(4.67) $(0.74) $(0.32) $0.41(15)$0.09 1,367.5% (920.2%) 1,368.8% (925.7%)
                          
____                         
Note: Totals may not sum due to rounding.                         
(1) Excludes the net impact of $2,450 of charges associated with the Company's previously disclosed 2024 restructuring plan, $3,697 of charges associated with the Company's previously disclosed 2023 restructuring plan and $26 of charges associated with the Company's previously disclosed 2022 restructuring plan.
(2) Excludes the net impact of $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan, $2,957 of charges associated with the Company's previously disclosed 2023 restructuring plan and $30 of charges associated with the Company's previously disclosed 2022 restructuring plan, and the impact of $3,858 of former CEO separation expenses.
(3) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $305,726, $4,074, $2,905 and $2,328 related to its United States, Australia, United Kingdom and New Zealand units of account, respectively, (ii) the net impact of (a) $2,450 of charges and $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (b) $3,697 of charges and $2,957 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (c) $26 of charges and $30 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (iii) the impact of $3,858 of former CEO separation expenses recorded to selling, general and administrative expenses.
(4) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $19,839, $1,222 and $726 related to its United States, Australia and United Kingdom units of account, respectively, (ii) the net impact of (a) $3,700 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) $1,662 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) $14 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $964 of former CEO separation expenses.
(5) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $285,887, $2,852, $2,328 and $2,179 related to its United States, Australia, New Zealand and United Kingdom units of account, respectively, (ii) the net impact of (a) $11,112 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) $4,992 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) $42 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $2,894 of former CEO separation expenses.
(6) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $3.59, $0.04, $0.03 and $0.03 related to its United States, Australia, United Kingdom and New Zealand units of account, respectively, (ii) the net impact of (a) $0.14 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) $0.06 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) $0.00 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $0.04 of former CEO separation expenses.
(7) Includes $(69) of currency adjustment associated with the impairment charges of the Company's franchise rights acquired of $4,074, $2,905 and $2,328 related to its Australia, United Kingdom and New Zealand units of account, respectively.
(8) Includes $(6) of currency adjustment associated with the impairment charges of the Company's franchise rights acquired of $4,074, $2,905 and $2,328 related to its Australia, United Kingdom and New Zealand units of account, respectively.
(9) Includes $(63) of currency adjustment associated with the impairment charges of the Company's franchise rights acquired of $4,074, $2,905 and $2,328 related to its Australia, United Kingdom and New Zealand units of account, respectively.
(10) Excludes the net impact of $19,869 of charges associated with the Company's previously disclosed 2023 restructuring plan, the reversal of $269 of charges associated with the Company's previously disclosed 2022 restructuring plan, $96 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $21 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.
(11) Excludes (i) the net impact of $10,734 of charges associated with the Company's previously disclosed 2023 restructuring plan, $915 of charges associated with the Company's previously disclosed 2022 restructuring plan and the reversal of $39 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan, and (ii) the impact of $8,605 of acquisition transaction costs.
(12) Excludes (i) the net impact of (a) $19,869 of charges and $10,734 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (b) the reversal of $269 of charges and $915 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (c) $96 of charges and the reversal of $39 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (d) the reversal of $21 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan recorded to cost of subscription revenues, and (ii) the impact of $8,605 of acquisition transaction costs recorded to selling, general and administrative expenses.
(13) Excludes (i) the net impact of $7,663 of charges associated with the Company's previously disclosed 2023 restructuring plan, $162 of charges associated with the Company's previously disclosed 2022 restructuring plan, $14 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $5 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan, and (ii) the impact of $1,070 of acquisition transaction costs.
(14) Excludes (i) the net impact of $22,940 of charges associated with the Company's previously disclosed 2023 restructuring plan, $484 of charges associated with the Company's previously disclosed 2022 restructuring plan, $43 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $16 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan, and (ii) the impact of $7,535 of acquisition transaction costs.
(15) Excludes (i) the net impact of $0.30 of charges associated with the Company's previously disclosed 2023 restructuring plan, $0.01 of charges associated with the Company's previously disclosed 2022 restructuring plan, $0.00 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $0.00 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan, and (ii) the impact of $0.10 of acquisition transaction costs.
                          



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS)
UNAUDITED
         
  Three Months Ended Nine Months Ended
  September 28, September 30, September 28, September 30,
   2024   2023   2024   2023 
         
Net (Loss) Income $(46,192) $43,731  $(370,824) $(24,120)
Interest  28,619   24,508   81,923   71,429 
Taxes  (27,342)  (38,447)  12,270   (18,933)
Depreciation and Amortization  9,155   13,428   29,103   35,633 
Stock-based Compensation  824   3,225   5,966   8,956 
EBITDAS $(34,936) $46,445  $(241,562) $72,965 
         
Franchise Rights Acquired Impairments  57,045 (1)    315,033 (2)  
2024 Plan Restructuring Charges (3)  14,812      14,812    
2023 Plan Restructuring Charges (4)  (749)  6,187   6,654   30,603 
2022 Plan Restructuring Charges (5)  (257)  (212)  56   646 
2021 Plan Restructuring Charges (6)           57 
2020 Plan Restructuring Charges (7)           (21)
Acquisition Transaction Costs (8)           8,605 
Former CEO Separation Expenses (9)  3,858      3,858    
Adjusted EBITDAS $39,773  $52,420  $98,851  $112,855 
         
____        
Note: Totals may not sum due to rounding.        
(1) Impairment charges of the Company's franchise rights acquired of $54,295 and $2,750 related to its United States and United Kingdom units of account, respectively.
(2) Impairment charges of the Company's franchise rights acquired of $305,726, $4,074, $2,905 and $2,328 related to its United States, Australia, United Kingdom and New Zealand units of account, respectively.
(3) Charges associated with the Company's previously disclosed 2024 restructuring plan.
(4) The reversal of charges or charges, as applicable, associated with the Company's previously disclosed 2023 restructuring plan.
(5) The reversal of charges or charges, as applicable, associated with the Company's previously disclosed 2022 restructuring plan.
(6) Charges associated with the Company's previously disclosed 2021 organizational restructuring plan.
(7) The reversal of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.
(8) Certain non-recurring transaction costs in connection with the Company's acquisition of Sequence.
(9) Certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer.
         



WW INTERNATIONAL, INC. AND SUBSIDIARIES 
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 
(IN THOUSANDS, EXCEPT RATIOS) 
UNAUDITED 
            
          Trailing Twelve 
  Q4 2023 Q1 2024 Q2 2024 Q3 2024 Months 
Net Debt to Adjusted EBITDAS          
            
Net (Loss) Income$(88,135) $(347,902) $23,269  $(46,192) $(458,960) 
Interest 24,464   24,727   28,577   28,619   106,387  
Taxes  57,556   55,448   (15,835)  (27,342)  69,827  
Depreciation and Amortization 10,007   10,403   9,545   9,155   39,110  
Stock-based Compensation 2,346   2,402   2,740   824   8,312  
 EBITDAS$6,238  $(254,922) $48,296  $(34,936) $(235,324) 
            
Franchise Rights Acquired and Goodwill Impairments 3,633 (1) 257,988 (2)    57,045 (3) 318,666  
2024 Plan Restructuring Charges (4)          14,812   14,812  
2023 Plan Restructuring Charges (5) 23,140   5,493   1,910   (749)  29,794  
2022 Plan Restructuring Charges (6) 489   244   69   (257)  545  
Former CEO Separation Expenses (7)          3,858   3,858  
 Adjusted EBITDAS$33,500  $8,803  $50,275  $39,773  $132,351  
            
Total Debt        $1,429,598  
Less: Cash         57,181  
 Net Debt        $1,372,417  
            
 Total Debt to Net Loss         (3.1)X
 Net Debt to Adjusted EBITDAS         10.4 X
            
____          
Note: Totals may not sum due to rounding.          
(1) Impairment charges of the Company's goodwill of $2,383 and $1,203 related to its Republic of Ireland and Northern Ireland reporting units, respectively, and the impairment charge of the Company's franchise rights acquired of $47 related to its Northern Ireland unit of account. 
(2) Impairment charges of the Company's franchise rights acquired of $251,431, $4,074, $2,328 and $155 related to its United States, Australia, New Zealand and United Kingdom units of account, respectively. 
(3) Impairment charges of the Company's franchise rights acquired of $54,295 and $2,750 related to its United States and United Kingdom units of account, respectively. 
(4) Charges associated with the Company's previously disclosed 2024 restructuring plan. 
(5) Charges or the reversal of charges, as applicable, associated with the Company's previously disclosed 2023 restructuring plan. 
(6) Charges or the reversal of charges, as applicable, associated with the Company's previously disclosed 2022 restructuring plan. 
(7) Certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer. 
            



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS)
UNAUDITED
         
  Three Months Ended Nine Months Ended
  September 28, September 30, September 28, September 30,
   2024   2023   2024   2023 
         
Adjusted Operating Income  $35,664  $36,582  $67,969  $68,230 
Other (Expense) Income, net  (5,870)  (815)  (4,187)  36 
Depreciation and Amortization  9,155   13,428   29,103   35,633 
Stock-based Compensation  824   3,225   5,966   8,956 
Adjusted EBITDAS $39,773  $52,420  $98,851  $112,855 
         
____        
Note: Totals may not sum due to rounding.        
         



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN MILLIONS)
UNAUDITED
  
 Full Year 2024
 Operating Income Guidance Reconciliation
  
Operating Loss$(240.4)
Franchise Rights Acquired Impairments (1)$(315.0)
Net Restructuring Charges (2)$(21.5)
Former CEO Separation Expenses (3)$(3.9)
Adjusted Operating Income$100.0
  
____
 
(1) Reflects the impairment charges of the Company's franchise rights acquired related to its United States, Australia, United Kingdom and New Zealand units of account in the first nine months of fiscal 2024.
(2) Reflects the net restructuring charges incurred in the first nine months of fiscal 2024 related to the Company's previously disclosed 2024 restructuring plan, 2023 restructuring plan and 2022 restructuring plan.
(3) Reflects certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer in the third quarter of fiscal 2024.

FAQ

What was WW's revenue in Q3 2024?

WW reported revenues of $192.9 million in Q3 2024, representing a 10.2% decrease from the prior year period.

How many subscribers did WW have at the end of Q3 2024?

WW had 3.7 million End of Period Subscribers in Q3 2024, down 8.8% compared to the prior year.

What was WW's operating loss in Q3 2024?

WW reported an operating loss of $39.0 million in Q3 2024, compared to operating income of $30.6 million in the prior year period.

What is WW's revenue guidance for full year 2024?

WW expects revenue of at least $770.0 million for full year 2024.

WW International, Inc.

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