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 $100 million in
annualized savings including $20 million of savings currently
reflected in our 2024 guidance," said Heather Stark, the Company’s
CFO. "We are committed to maximizing profitability and making
strategic decisions that will best position the Company for
long-term success."
Q2 2024 Consolidated Results
| |
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|
|
% Change |
|
% ChangeAdjusted forConstantCurrency(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 decreased 4.2% versus the prior year period. Q2
2024 End of Period Workshops + Digital Subscribers decreased 21.4%
versus the prior year period. Q2 2024 End of Period Clinical
Subscribers increased 119.8% 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
decreased 2.9% versus the prior year period. Q2 2024 Workshops +
Digital Paid Weeks decreased 21.3% versus the prior year period. Q2
2024 Clinical Paid Weeks increased 205.4% versus the prior year
period.
- Revenues in Q2 2024 were $202.1 million. On a
constant currency basis, Q2 2024 revenues decreased 10.6% versus
the prior year period.
- Subscription
Revenues in Q2 2024 were $200.0 million. On a
constant currency basis, these revenues decreased 5.4% 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 decreased 85.5% versus
the prior year period driven by the discontinuation of the consumer
products business.
- 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
to 63.1% in the prior year period. Adjusted gross
margin in Q2 2024 was 67.9%, up from an adjusted gross
margin of 63.4% in the prior year period, driven primarily by the
discontinuation of the lower margin consumer products business at
the end of 2023.
- 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 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.
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
WebcastThe 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 Merkelkelsey.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 - $2,025 and December
30, 2023 - $1,041) |
|
|
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 par value; 1,000,000 shares authorized; 130,048
shares issued at June 29, 2024 and 130,048 shares issued at
December 30, 2023 |
|
|
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 |
|
(2.9%) |
|
|
|
Workshops + Digital Paid Weeks |
7,682 |
|
9,755 |
|
(21.3%) |
|
|
|
Clinical Paid Weeks |
1,084 |
|
355 |
|
205.4% |
|
|
|
Total Paid Weeks |
50,745 |
|
53,356 |
|
(4.9%) |
|
|
| |
|
|
|
|
|
|
|
|
End of Period Subscribers(2) |
|
|
|
|
|
|
|
End of Period Digital Subscribers |
3,190 |
|
3,329 |
|
(4.2%) |
|
|
|
End of Period Workshops + Digital Subscribers |
566 |
|
720 |
|
(21.4%) |
|
|
|
End of Period Clinical Subscribers |
81 |
|
37 |
|
119.8% |
|
|
|
Total End of Period Subscribers |
3,837 |
|
4,086 |
|
(6.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
0.3% |
|
|
|
Workshops + Digital Paid Weeks |
16,106 |
|
19,906 |
|
(19.1%) |
|
|
|
Clinical Paid Weeks |
2,123 |
|
355 |
|
497.9% |
|
|
|
Total Paid Weeks |
102,527 |
|
104,308 |
|
(1.7%) |
|
|
| |
|
|
|
|
|
|
|
|
End of Period Subscribers(2) |
|
|
|
|
|
|
|
End of Period Digital Subscribers |
3,190 |
|
3,329 |
|
(4.2%) |
|
|
|
End of Period Workshops + Digital Subscribers |
566 |
|
720 |
|
(21.4%) |
|
|
|
End of Period Clinical Subscribers |
81 |
|
37 |
|
119.8% |
|
|
|
Total End of Period Subscribers |
3,837 |
|
4,086 |
|
(6.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $102 of charges associated with the
Company's previously disclosed 2023 restructuring plan. |
| (2) Excludes the
net impact of $2,012 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $69 of charges
associated with the Company's previously disclosed 2022
restructuring plan. |
| (3) Excludes (a)
the impact of the reversal of $102 of charges associated with the
Company's previously disclosed 2023 restructuring plan recorded to
cost of subscription revenues and (b) the net impact of $2,012 of
charges associated with the Company's previously disclosed 2023
restructuring plan and $69 of charges associated with the Company's
previously disclosed 2022 restructuring plan recorded to selling,
general and administrative expenses, respectively. |
| (4) Excludes the
net impact of $532 of charges associated with the Company's
previously disclosed 2023 restructuring plan, $40 of charges
associated with the Company's previously disclosed 2022
restructuring plan, $103 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. |
| (5) Excludes the
net impact of $1,252 of charges associated with the Company's
previously disclosed 2023 restructuring plan, $778 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 the impact of $4,886 of acquisition
transaction costs. |
| (6) Excludes (i)
the net impact of (a) $532 of charges and $1,252 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) $40
of charges and $778 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) $103 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 $16 of charges associated
with the Company's previously disclosed 2020 organizational
restructuring plan recorded to cost of subscription revenues, and
(ii) the impact of $4,886 of acquisition transaction costs recorded
to selling, general and administrative expenses. |
| |
|
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 $2,328 of charges associated
with the Company's previously disclosed 2023 restructuring plan and
$25 of charges associated with the Company's previously disclosed
2022 restructuring plan. |
|
(2) Excludes the net impact of $5,075 of charges associated
with the Company's previously disclosed 2023 restructuring plan and
$288 of charges associated with the Company's previously disclosed
2022 restructuring plan. |
|
(3) Excludes (i) the impact of 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, and (ii) the net
impact of (a) $2,328 of charges and $5,075 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) $25 of charges and
$288 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. |
|
(4) Includes $104 of currency adjustment associated with the
impairment charges of the Company's franchise rights acquired of
$4,074, $2,328 and $155 related to its Australia, New Zealand and
United Kingdom units of account, respectively. |
|
(5) Excludes the net impact of $19,425 of charges associated
with the Company's previously disclosed 2023 restructuring plan,
the reversal of $223 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 $22 of
charges associated with the Company's previously disclosed 2020
organizational restructuring plan. |
|
(6) Excludes the net impact of $4,991 of charges associated
with the Company's previously disclosed 2023 restructuring plan,
$1,081 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 the impact of $8,605 of
acquisition transaction costs. |
|
(7) Excludes (i) the net impact of (a) $19,425 of charges and
$4,991 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 $223 of charges and $1,081 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
$22 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. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $251,431, $4,074, $2,328 and $155 related to its United
States, Australia, New Zealand and United Kingdom units of account,
respectively. |
|
|
(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 $2,383 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) 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. |
|
| |
|
|
|
WW (NASDAQ:WW)
과거 데이터 주식 차트
부터 7월(7) 2024 으로 8월(8) 2024
WW (NASDAQ:WW)
과거 데이터 주식 차트
부터 8월(8) 2023 으로 8월(8) 2024
