The Beachbody Company (NYSE: BODI) announced a strategic shift in its core business model, transitioning from a Multi-Level Marketing (MLM) Network to a single-level Affiliate Program launching November 1, 2024. This change aims to streamline operations and position the company for profitable growth. Key points include:
– Reducing costs and broadening distribution channels
– Lowering the revenue break-even point by ~47%, from $430 million to $225 million annually
– Reducing workforce by 33%, expecting $54 million in annualized overhead savings
– Expanding direct-to-consumer, Amazon, and partnership-driven sales channels
– Reaffirming Q3 2024 guidance: revenue of $97-107 million, net loss of $9-13 million (excluding restructuring charges), and Adjusted EBITDA of $2-6 million
The company views this evolution as necessary to adapt to current market dynamics and consumer preferences, aiming to simplify customer acquisition and reward sellers directly for their efforts.
La Beachbody Company (NYSE: BODI) ha annunciato un cambiamento strategico nel suo modello di business principale, passando da una rete di Marketing Multilivello (MLM) a un Programma di Affiliazione a livello singolo che sarà lanciato il 1° novembre 2024. Questa modifica mira a semplificare le operazioni e posizionare la società per una crescita redditizia. I punti chiave includono:
– Riduzione dei costi e ampliamento dei canali di distribuzione
– Abbassamento del punto di pareggio dei ricavi di circa il 47%, da 430 milioni di dollari a 225 milioni di dollari annuali
– Riduzione della forza lavoro del 33%, con aspettative di risparmi annualizzati sui costi generali di 54 milioni di dollari
– Espansione dei canali di vendita diretti al consumatore, Amazon e partnership
– Conferma delle previsioni per il Q3 2024: ricavi tra 97 e 107 milioni di dollari, perdita netta di 9-13 milioni di dollari (escludendo i costi di ristrutturazione) e EBITDA rettificato di 2-6 milioni di dollari
La società considera questa evoluzione necessaria per adattarsi alle attuali dinamiche del mercato e alle preferenze dei consumatori, mirando a semplificare l’acquisizione dei clienti e a premiare direttamente i venditori per i loro sforzi.
La Beachbody Company (NYSE: BODI) anunció un cambio estratégico en su modelo de negocio principal, pasando de una Red de Marketing Multinivel (MLM) a un Programa de Afiliados de nivel único que se lanzará el 1 de noviembre de 2024. Este cambio tiene como objetivo simplificar las operaciones y posicionar a la empresa para un crecimiento rentable. Los puntos clave incluyen:
– Reducción de costos y ampliación de canales de distribución
– Disminución del punto de equilibrio de ingresos en aproximadamente un 47%, de 430 millones de dólares a 225 millones de dólares anuales
– Reducción del personal en un 33%, con expectativas de ahorros anuales en gastos generales de 54 millones de dólares
– Expansión de los canales de venta directos al consumidor, Amazon y asociaciones
– Confirmación de las previsiones para el Q3 2024: ingresos de entre 97 y 107 millones de dólares, pérdida neta de 9 a 13 millones de dólares (excluyendo cargos de reestructuración) y EBITDA ajustado de 2 a 6 millones de dólares
La empresa considera esta evolución necesaria para adaptarse a las dinámicas del mercado actual y a las preferencias de los consumidores, con el objetivo de simplificar la adquisición de clientes y recompensar directamente a los vendedores por sus esfuerzos.
비치바디 컴퍼니 (NYSE: BODI)는 다단계 마케팅(MLM) 네트워크에서 단일 레벨 제휴 프로그램으로 전환하는 핵심 비즈니스 모델의 전략적 변화 를 발표했습니다. 이 프로그램은 2024년 11월 1일에 시작됩니다. 이 변화의 목표는 운영을 간소화하고 회사를 수익성 있는 성장으로 이끌기 위해 노력하는 것입니다. 주요 사항은 다음과 같습니다:
– 비용 절감 및 유통 경로 확대
– 연간 4억 3천만 달러에서 2억 2천5백만 달러로 약 47% 수익 분기점을 낮춤
– 인력 33% 감소, 연간 5천4백만 달러의 일반 경비 절감 기대
– 소비자 직접 판매, 아마존 및 파트너십 기반 판매 채널 확대
– 2024년 3분기 가이드라인 재확인: 수익 9천7백만에서 1억 7백만 달러, 순손실 9백만에서 1300만 달러 (구조조정 비용 제외) 및 조정 EBITDA 200만에서 600만 달러
회사는 현재 시장의 역학과 소비자 선호에 적응하기 위해 이 진화를 필요하다고 판단하며, 고객 유치 과정을 간소화하고 판매자가 자신의 노력에 대해 직접 보상받도록 하는 것을 목표로 하고 있습니다.
La Beachbody Company (NYSE: BODI) a annoncé un changement stratégique dans son modèle commercial principal, passant d’un réseau de Marketing Multi-Niveau (MLM) à un Programme d’Affiliation de niveau unique qui sera lancé le 1er novembre 2024. Ce changement vise à simplifier les opérations et à positionner l’entreprise pour une croissance rentable. Les points clés comprennent :
– Réduction des coûts et élargissement des canaux de distribution
– Diminution du seuil de rentabilité des revenus d’environ 47 %, de 430 millions de dollars à 225 millions de dollars par an
– Réduction de la main-d’œuvre de 33 %, avec des économies annuelles prévues de 54 millions de dollars sur les frais généraux
– Expansion des canaux de vente directe aux consommateurs, Amazon et partenariats
– Confirmation des prévisions pour le T3 2024 : recettes de 97 à 107 millions de dollars, perte nette de 9 à 13 millions de dollars (hors charges de restructuration) et EBITDA ajusté de 2 à 6 millions de dollars
L’entreprise considère cette évolution comme nécessaire pour s’adapter aux dynamiques actuelles du marché et aux préférences des consommateurs, visant à simplifier l’acquisition de clients et à récompenser directement les vendeurs pour leurs efforts.
Die Beachbody Company (NYSE: BODI) hat einen strategischen Wechsel in ihrem Kerngeschäftsmodell angekündigt und wechselt von einem Multi-Level-Marketing (MLM) Netzwerk zu einem Ein-Level-Partnerprogramm, das am 1. November 2024 gestartet wird. Diese Änderung zielt darauf ab, die Abläufe zu optimieren und das Unternehmen für rentables Wachstum zu positionieren. Die wichtigsten Punkte sind:
– Kostensenkung und Erweiterung der Vertriebskanäle
– Senkung des Umsatz-Break-Even-Punkts um etwa 47%, von 430 Millionen Dollar auf 225 Millionen Dollar jährlich
– Reduzierung der Belegschaft um 33%, was jährliche Einsparungen bei den Gemeinkosten von 54 Millionen Dollar erwartet
– Ausbau der direkten Verkaufs-, Amazon- und partnerschaftlich betriebenen Vertriebskanäle
– Bestätigung der Prognose für Q3 2024: Umsatz von 97-107 Millionen Dollar, Nettoverlust von 9-13 Millionen Dollar (ohne Umstrukturierungskosten) und bereinigtes EBITDA von 2-6 Millionen Dollar
Das Unternehmen sieht diese Entwicklung als notwendig an, um sich an die aktuellen Marktbedingungen und Verbraucherpräferenzen anzupassen, mit dem Ziel, die Kundengewinnung zu vereinfachen und Verkäufer direkt für ihre Bemühungen zu belohnen.
Positive
- Transition to a single-level Affiliate Program expected to simplify and modernize customer acquisition
- Projected reduction of revenue break-even point from $430 million to $225 million annually
- Anticipated $54 million in annualized overhead savings
- Expansion of direct-to-consumer, Amazon, and partnership-driven sales channels
- Reaffirmation of Q3 2024 financial guidance, including positive Adjusted EBITDA
Negative
- Workforce reduction of approximately 33%
- Projected net loss of $9-13 million for Q3 2024
- Restructuring charges estimated at $9-11 million
- Potential for goodwill impairment being evaluated
- Wind-down of existing MLM network may cause short-term disruption
Insights
This strategic shift by BODi represents a significant overhaul of its business model, aimed at improving profitability and adapting to changing market dynamics. Key points include:
- Transition from MLM to a single-level Affiliate Program, launching November 1, 2024
- Expected reduction in revenue break-even point by
~47% , from$430 million to$225 million annually - Workforce reduction of
33% , projecting$54 million in annualized overhead savings - Reaffirmed Q3 2024 guidance: revenue of
$97-107 million , net loss of$9-13 million (excluding restructuring charges) and Adjusted EBITDA of$2-6 million
This restructuring could potentially improve BODi’s financial health by significantly lowering its cost structure and simplifying its sales model. However, the transition period may bring short-term challenges as the company adapts to its new strategy. Investors should monitor the execution of this plan and its impact on revenue and profitability in the coming quarters.
BODi’s strategic pivot reflects broader trends in the direct selling industry and consumer behavior:
- Shift away from traditional MLM models towards more transparent, single-level affiliate programs
- Increased focus on omnichannel distribution, including direct-to-consumer and e-commerce platforms like Amazon
- Adaptation to changing consumer preferences for simplified purchasing experiences
This move could potentially broaden BODi’s market reach and appeal to a wider customer base. However, the success of this transition will depend on how effectively the company can retain and motivate its existing partner network while attracting new affiliates. The impact on brand perception and customer loyalty during this shift will be important to monitor. Long-term, if executed well, this strategy could position BODi more competitively in the evolving fitness and nutrition market landscape.
Reduces costs, broadens distribution channels, and is expected to lower revenue break-even point1 by approximately ~
- Transitions from MLM to a single-level Affiliate Program, launching Nov 1, 2024
- Expands its current direct-to-consumer, Amazon, and partnership-driven sales channels
-
Expects to significantly improve revenue break-even point, decreasing from less than
$430 million $225 million -
Reduces its workforce by approximately 33 percent, anticipating overhead savings of
$54 million
The Beachbody Company, Inc. (NYSE: BODI) (or “the Company” or “BODi”), a leading fitness and nutrition company, today announced the evolution of its core business model with an omnichannel sales channel approach that will streamline operations and better position the Company for future profitable growth. As a result of this restructuring, BODi will reduce costs, broaden its distribution channels, and significantly lower its revenue break-even point.
New Business Model
As part of its strategic shift to optimize its omnichannel distribution platform, BODi will transition from its current Multi-Level Marketing (MLM) Network channel to a single-level Affiliate Program, which will launch November 1, 2024. Current participants in the Team BODi Partner Network in
“The first phase of our turnaround is centered on lowering our infrastructure costs and re-architecting our financial model,” Mark Goldston, Executive Chairman of BODi, said. “We have successfully accomplished that goal – we’ve lowered our revenue break-even point by more than
Mr. Goldston continued, “We recognize that in light of today’s current market dynamics, as well as consumer preferences, the multi-level marketing distribution model is outdated and unsustainable. The evolution to the affiliate model offers a simpler, more modern approach to customer acquisition and will directly reward the seller for their effort. The organizational challenges and complexity of the MLM approach has weighed on the Company’s turnaround and the ability of Partners to optimize their potential. We are confident this shift will be beneficial to stakeholders and to new potential participants. I look forward to sharing more details on our third quarter earnings call.”
Carl Daikeler, CEO and Co-founder of BODi, said: “Since our founding, we have had a long history of evolving our business model to adjust to dynamic market environments. We continue to adapt and evolve to optimize our sales channels. We believe that transitioning to the Affiliate Model will energize our network of Partners and new participants to stay more consistent with their own health and fitness objectives and share their results to help others live healthier and more fulfilling lives and get paid for it, now without the complexity of managing and recruiting a team of other Partners.”
Corporate Restructuring
This Board-approved corporate restructuring plan (the “Pivot”) will centralize the business around one eCommerce platform at BODi.com, eliminate the network marketing support functions, and reduce BODi’s workforce by approximately 33 percent. The Company anticipates that these cost reductions will result in overhead savings of
Mr. Daikeler continued: “While these steps are absolutely necessary to align the Company with its new strategic direction, the painful part of this decision is saying goodbye to some of our team. I am deeply grateful to everyone who has contributed so much to the substantial progress BODi has experienced over the last 26 years. But our evolution is critical to position us to help even more people and improve the opportunity for our partners and customers to get the best results for the long term.”
Third Quarter Guidance
As part of the announcement, BODi also reaffirms its financial guidance for the third quarter ending September 30, 2024. The company continues to expect revenue in the range of
About BODi and The Beachbody Company, Inc.
Originally known as Beachbody, BODi has been innovating structured step-by-step home fitness and nutrition programs for 26 years such as P90X, INSANITY and 21 Day Fix, plus the first premium superfood nutrition supplement, Shakeology. Since its inception in 1999, BODi has helped over 30 million customers pursue extraordinary life-changing results. The BODi community represents millions of people helping each other stay accountable to goals of healthy weight loss, improved strength and energy, and resilient mental and physical well-being. For more information, please visit TheBeachbodyCompany.com.
Safe Harbor Statement
This press release of The Beachbody Company, Inc. (“we,” “us,” “our,” and similar terms) contains “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, which are statements other than statements of historical facts and statements in future tense. These statements include but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the second quarter and full year, our business strategy, our plans, and our objectives and future operations.
Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date hereof and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to effectively compete in the fitness and nutrition industries; our ability to successfully acquire and integrate new operations; our reliance on a few key products; market conditions and global and economic factors beyond our control; intense competition and competitive pressures from other companies worldwide in the industries in which we operate; our ability to implement the proposed restructuring of our core business model; and litigation and the ability to adequately protect our intellectual property rights. You can identify these statements by the use of terminology such as “believe”, “plans”, “expect”, “will”, “should,” “could”, “estimate”, “anticipate” or similar forward-looking terms. You should not rely on these forward-looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statements. For more information regarding the risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements, as well as risks relating to our business in general, we refer you to the “Risk Factors” section of our Securities and Exchange Commission (SEC) filings, including those risks and uncertainties included in the Form 10-K filed with the SEC on March 11, 2024 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, which are available on the Investor Relations page of our website at https://investors.thebeachbodycompany.com and on the SEC website at www.sec.gov.
All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on forward-looking statements.
1 Revenue break-even point is defined as the revenue necessary to achieve break-even in our Adjusted EBITDA
View source version on businesswire.com: https://www.businesswire.com/news/home/20240930252881/en/
Media Relations:
BODiPR@icrinc.com
Source: The Beachbody Company, Inc.
FAQ
When will Beachbody (BODI) launch its new Affiliate Program?
Beachbody (BODI) will launch its new single-level Affiliate Program on November 1, 2024.
How much will Beachbody (BODI) reduce its workforce in the restructuring?
Beachbody (BODI) will reduce its workforce by approximately 33 percent as part of its corporate restructuring plan.
What is the expected annual overhead savings from Beachbody’s (BODI) restructuring?
Beachbody (BODI) anticipates overhead savings of $54 million on an annualized run-rate basis from its restructuring efforts.
What is Beachbody’s (BODI) projected revenue range for Q3 2024?
Beachbody (BODI) expects revenue in the range of $97 million to $107 million for the third quarter ending September 30, 2024.
When will Beachbody (BODI) fully wind down its Multi-Level Marketing Network?
Beachbody (BODI) expects its Multi-Level Marketing Network to be fully wound down by January 1, 2025.
