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Beachbody Company Inc (BODI)
:BODI
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Beachbody Company
(NYSE:BODI)
51Neutral
Positive Factors
Business Model Transition
The shift away from the MLM model to an omnichannel and affiliate model is seen as a positive change for reducing operating costs.
Financial Performance
Management believes the business model changes could lower BODI's revenue break-even point for profitability to approximately $225 million, down from around $430 million previously.
Marketing and Advertising
Exiting the MLM model allows BODI to increase brand awareness by advertising on platforms like Facebook, Instagram, and Google.
Negative Factors
Nutrition Business Impact
The nutrition business is projected to be more impacted from moving away from the MLM model, which may pressure its performance.
Operational Challenges
Changes in the MLM network could lead to an exodus of sellers, leading to some near-term sales volatility.
Sales Volatility
The switch from an MLM model may initially lead to sales deleverage as sellers leave the platform.
Beachbody Company (BODI) vs. S&P 500 (SPY)
Market Cap
$38.08M
Dividend YieldN/A
Average Volume (3M)15.03K
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth-20.55%
EPS Growth57.03%
CountryUS
Employees355
SectorCommunication Services
Sector Strength73
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-10.49
Shares Outstanding4,258,179
10 Day Avg. Volume15,854
30 Day Avg. Volume15,030
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.11
Price to Cash Flow (P/CF)11.40
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside83.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Beachbody Company Business Overview & Revenue Model
Company DescriptionBeachbody Company (BODI) is a leading health and wellness platform that offers a comprehensive range of fitness, nutrition, and lifestyle solutions. The company operates in the digital streaming sector with its BODI interactive platform, providing on-demand and live workout programs. Core products include home fitness programs, nutritional supplements, and fitness accessories, all designed to support an active and healthy lifestyle.
How the Company Makes MoneyBeachbody Company generates revenue primarily through its subscription-based digital platform, where users pay for access to a wide array of fitness programs and live classes. The company also earns income from the sale of nutritional supplements and fitness equipment. Additionally, Beachbody benefits from a network of independent coaches who promote and sell its products, earning commissions that help drive sales. Strategic partnerships and brand collaborations further enhance its market reach and contribute to revenue growth.
Beachbody Company Financial Statement Overview
Summary
Beachbody Company faces significant financial challenges, with declining revenues and ongoing net losses impacting profitability. The balance sheet shows reduced leverage but remains burdened by liabilities. Cash flow generation is insufficient to support operations and investments, posing sustainability risks.Income Statement
The company has experienced a significant decline in revenue over recent years, with a revenue decrease of 20.54% from 2023 to 2024. Gross profit margins remain relatively stable at 68.6% in 2024. However, the net profit margin is negative due to consistent net losses, indicating ongoing profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.42
Neutral
Balance Sheet
The company's debt-to-equity ratio improved to 0.45 in 2024, reflecting lower leverage compared to previous years. However, the return on equity remains negative due to net losses. The equity ratio stands at 16.1%, indicating a high level of liabilities relative to assets, suggesting potential financial instability.55
Neutral
Cash Flow
Cash flow from operations turned positive in 2024, but free cash flow remains negative, indicating insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is positive due to net losses, but the free cash flow to net income ratio remains negative, highlighting cash flow challenges.38
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 451.43M | 418.80M | 527.11M | 692.20M | 873.64M | 863.58M | Gross Profit |
| 297.12M | 287.34M | 323.09M | 369.57M | 544.98M | 613.88M | EBIT |
| -86.95M | -38.36M | -140.99M | -203.16M | -297.32M | -6.30M | EBITDA |
| -47.94M | -38.36M | -80.40M | -94.75M | -168.92M | 46.08M | Net Income Common Stockholders |
| -102.12M | -71.64M | -152.64M | -194.19M | -228.38M | -21.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 41.56M | 20.19M | 40.10M | 80.09M | 104.05M | 56.83M | Total Assets |
| 291.11M | 174.56M | 276.84M | 443.39M | 637.61M | 356.25M | Total Debt |
| 39.05M | 12.81M | 32.82M | 46.45M | 7.13M | 41.62M | Net Debt |
| -2.51M | -7.38M | -490.00K | -33.64M | -96.92M | -15.20M | Total Liabilities |
| 203.71M | 146.39M | 194.08M | 231.85M | 252.23M | 257.00M | Stockholders Equity |
| 87.40M | 28.17M | 82.76M | 211.54M | 385.38M | 99.26M |
| Cash Flow | Free Cash Flow | ||||
| -3.71M | -1.98M | -29.11M | -73.67M | -293.16M | 23.50M | Operating Cash Flow |
| 1.34M | 2.56M | -22.54M | -47.17M | -215.25M | 61.43M | Investing Cash Flow |
| 549.00K | 1.06M | -10.83M | -26.49M | -125.19M | -46.69M | Financing Cash Flow |
| -7.80M | -15.87M | -13.72M | 47.56M | 390.65M | 165.00K |
Beachbody Company Technical Analysis
Negative
5.45
Price Trends
7.30
Negative
6.84
Negative
6.94
Negative
Market Momentum
0.07
Positive
47.99
Neutral
48.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BODI, the sentiment is Negative. The current price of 5.45 is below the 20-day moving average (MA) of 7.17, below the 50-day MA of 7.30, and below the 200-day MA of 6.94, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 48.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BODI.
Beachbody Company Risk Analysis
Beachbody Company disclosed 76 risk factors in its most recent earnings report. Beachbody Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Beachbody Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $25.21B | 3.07 | -13.86% | 4.29% | 2.47% | -43.03% | |
56 Neutral | $31.13M | ― | -218.25% | ― | 345.36% | -650.95% | |
55 Neutral | $58.90M | ― | 154.70% | ― | 11.43% | 26.78% | |
51 Neutral | $38.08M | ― | -129.17% | ― | -20.55% | 57.03% | |
49 Neutral | $82.74M | ― | -6.30% | ― | 12.36% | 8.23% | |
47 Neutral | $71.66M | ― | -28.67% | ― | -34.37% | 72.58% | |
45 Neutral | $10.61M | ― | -79.76% | ― | 19.85% | 41.89% |
* Communication Services Sector Average
Performance Comparison
BODI
Beachbody Company
5.45
-4.31
-44.16%
GAIA
Gaia
3.30
-0.34
-9.34%
LVO
LiveOne
0.61
-1.34
-68.72%
DLPN
Dolphin Entertainment
0.95
-1.45
-60.42%
MNY
MoneyHero Limited
0.76
-1.51
-66.52%
BZFD
BuzzFeed
1.86
0.27
16.98%
Beachbody Company Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -31.87% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, with significant restructuring efforts leading to improved financial metrics and cost efficiency. However, the transition has also resulted in a decline in revenue and challenges in the affiliate program uptake. While the financial improvements are promising, the ongoing challenges and declines in key revenue streams present a balanced outlook.Highlights
Transition to Affiliate Model
Successfully transitioned from a multi-level marketing model to a single-level affiliate model, broadening the market strategy and enhancing revenue streams.
Improved Financial Metrics
Achieved adjusted EBITDA of $8.7 million, significantly exceeding the guidance range of $2 million to $6 million. This marks the fifth consecutive quarter of positive adjusted EBITDA.
Significant Cash Flow Improvement
Generated cash flow from operations of $2.6 million for 2024, compared to a cash use of $22.5 million for 2023, marking a $25.1 million improvement year-over-year.
Digital Gross Margin Improvement
Digital gross margin increased to 85.9%, up 540 basis points from the prior quarter and representing a 1,280 basis point improvement from the prior year.
Lowlights
Revenue Decline
Total revenues of $86.4 million declined 15% sequentially and 27% year-over-year, impacted by the transition from a multi-level marketing platform.
Nutrition Revenue and Subscription Decline
Nutrition revenue decreased 26.6% from the prior quarter to $34.8 million and decreased 32.8% year-over-year. Nutrition subscriptions declined 29.2% sequentially.
Challenges in Affiliate Transition
The transition to the affiliate model was moderate, with not as many new affiliates joining as expected, and a slower pace in acquiring new affiliates.
Net Loss
Q4 2024 net loss was $34.6 million, including $20 million of goodwill impairment expenses. Excluding impairment, the net loss was $14.6 million.
Company Guidance
During the fourth quarter earnings call for 2024, The Beachbody Company highlighted several key metrics and strategic shifts. The company reported revenues of $86.4 million, which were at the high end of their guidance range, and achieved a significant adjusted EBITDA of $8.7 million, surpassing their expected $2 million to $6 million range. This marked the fifth consecutive quarter of positive adjusted EBITDA. Gross margins improved by 830 basis points year-over-year, reaching 70.5%. For the full year, adjusted EBITDA was $28.3 million, a $37 million improvement from the previous year's $8.7 million loss. Cash flow from operations also saw a $25.1 million improvement year-over-year, with $2.6 million generated in 2024 compared to a $22.5 million cash use in 2023. The company transitioned from a multi-level marketing model to a single-level affiliate model, focusing on a direct-to-consumer omni-channel strategy, which includes expanding distribution through Amazon and retail channels. Looking ahead to 2025, Beachbody anticipates 60% of its revenue to come from digital channels and 40% from nutrition, with gross margins of approximately 85% and 50% respectively. They expect first-quarter revenues between $60 million and $70 million, with adjusted EBITDA projected between negative $2 million to $2 million, indicating a transition phase as they implement their new business model.Beachbody Company Corporate Events
Executive/Board Changes
Beachbody Company Announces COO Kathy Vrabeck’s Retirement
Neutral
Apr 4, 2025
On February 14, 2025, The Beachbody Company, Inc. announced the retirement of Kathy Vrabeck from her role as Chief Operating Officer, effective April 1, 2025. As part of her departure, Ms. Vrabeck received 12 months of accelerated vesting for her equity awards, and her options’ exercise period was extended to 180 days, reflecting the company’s commitment to honoring executive agreements.
Executive/Board Changes
Beachbody Company Announces CFO Severance Agreement
Neutral
Feb 28, 2025
On February 24, 2025, Beachbody Company announced an additional severance letter agreement for Brad Ramberg, Interim Chief Financial Officer, recognizing his increased role and 18-year tenure. The agreement outlines severance payments and benefits if his employment is terminated without cause or due to resignation for good reason, impacting company operations and potentially influencing stakeholder perceptions.
Executive/Board ChangesBusiness Operations and Strategy
Beachbody Company Approves Salary Increase for Executive Chairman
Positive
Feb 21, 2025
On February 19, 2025, Beachbody Company’s Board of Directors approved a salary increase for Executive Chairman Mark Goldston, effective March 1, 2025, reflecting his expanded role and contributions. This adjustment will further increase once the company fully repays the Blue Torch term loan, highlighting strategic financial management and leadership recognition.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.