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The Beachbody Company, Inc. Announces Q4 and FY 2023 Financial Results; Expects Positive Cash Flow from Operating Activities and Free Cash Flow in Q1 2024

The Beachbody Company, Inc. (NYSE: BODi) (“BODi” or the “Company”), a leading subscription health and wellness company, today announced financial results for its fourth quarter ended December 31, 2023.

"2023 was a transformational year at BODi. Our turnaround plan successfully simplified our digital platform, lowering our breakeven point and enhancing our liquidity position,” said Carl Daikeler, BODi’s Co-Founder and Chief Executive Officer. "In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business. Our accomplishments in 2023 set the foundation for continued execution of our turnaround in 2024. We expect to have positive cash flow from operating activities and free cash flow in the first quarter.”

Fourth Quarter 2023 Results

  • Total revenue was $119.0 million compared to $148.2 million in the prior year period and exceeded the high end of the guidance range.
    • Digital revenue was $64.0 million compared to $68.7 million in the prior year period and digital subscriptions totaled 1.31 million in the fourth quarter.
    • Nutrition and Other revenue was $51.8 million compared to $74.7 million in the prior year period and nutritional subscriptions totaled 0.16 million in the fourth quarter.
    • Connected Fitness revenue was $3.2 million compared to $4.7 million in the prior year period and approximately 4,100 bikes were delivered in the fourth quarter.
  • Total operating expenses were $134.3 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $132.8 million in the prior year period, which included an $18.9 million impairment of intangible assets.
  • Operating loss increased by $12.2 million to $60.4 million compared to an operating loss of $48.1 million in the prior year period.
  • Net loss was $65.0 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $44.9 million in the prior year period, which included an $18.9 million impairment of intangible assets.
  • Adjusted EBITDA1 was $2.8 million compared to $3.5 million in the prior year period.

Full Year 2023 Results

  • Total revenue was $527.1 million compared to $692.2 million in the prior year.
    • Digital revenue was $258.4 million compared to $300.7 million in the prior year.
    • Nutrition and Other revenue was $249.5 million compared to $353.3 million in the prior year.
    • Connected Fitness revenue was $19.2 million compared to $38.2 million in the prior year and approximately 20,850 bikes were delivered in 2023.
  • Total operating expenses were $464.1 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to $572.7 million in the prior year, which included a $19.9 million impairment of intangible assets.
  • Operating loss decreased by $62.2 million to $141.0 million compared to an operating loss of $203.2 million in the prior year.
  • Net loss was $152.6 million, which included a $43.1 million impairment of goodwill and intangible assets, compared to a net loss of $194.2 million in the prior year, which included a $19.9 million impairment of intangible assets.
  • Adjusted EBITDA1 was $(8.7) million compared to $(23.3) million in the prior year.
  • Cash used in operating activities for the year ended December 31, 2023 was $22.5 million compared to $47.2 million in the prior year, and cash used in investing activities was $10.8 million compared to $26.5 million in the prior year. Total cash used in operating activities minus the purchase of property and equipment, which we call free cash flow, was $29.1 million compared to $73.7 million in the prior year.

Marc Suidan, Chief Financial Officer, stated: "With our new cost structure in place, we should have positive free cash flow in the first quarter of 2024. We have significantly reduced our breakeven point and are projecting to achieve approximately $200 million in fixed costs and capital expenditure savings in 2024 over 2021. The annualized cost savings increased from approximately $165 million in 2023 to an estimate of approximately $200 million in 2024, as compared to our 2021 cost structure."

Key Operational and Business Metrics

 

 

As of or for the Three Months

Ended December 31,

 

 

As of or for the Year Ended

December 31,

 

 

 

 

2023

 

2022

 

Change v 2022

 

 

2023

 

2022

 

Change v 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital Subscriptions (in millions)

 

 

1.31

 

 

1.95

 

 

(33.0

%)

 

 

1.31

 

 

1.95

 

 

(33.0

%)

 

Nutritional Subscriptions (in millions)

 

 

0.16

 

 

0.22

 

 

(25.0

%)

 

 

0.16

 

 

0.22

 

 

(25.0

%)

 

Total Subscriptions (in millions)

 

 

1.47

 

 

2.17

 

 

(32.2

%)

 

 

1.47

 

 

2.17

 

 

(32.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Digital Retention

 

 

96.9

%

 

96.8

%

10bps

 

 

 

96.0

%

 

95.9

%

10bps

 

 

Total Streams (in millions)

 

 

20.4

 

 

23.8

 

 

(14.6

%)

 

 

98.2

 

 

120.5

 

 

(18.4

%)

 

DAU/MAU

 

 

30.3

%

 

29.0

%

130bps

 

 

 

31.3

%

 

30.1

%

120 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Connected Fitness Units Delivered (in thousands)

 

 

4.1

 

 

3.7

 

 

10.7

%

 

 

20.9

 

 

31.5

 

 

(33.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

64.0

 

$

68.7

 

 

(6.8

%)

 

$

258.4

 

$

300.7

 

 

(14.1

%)

 

Nutrition & Other

 

$

51.8

 

$

74.7

 

 

(30.7

%)

 

$

249.5

 

$

353.3

 

 

(29.4

%)

 

Connected Fitness

 

$

3.2

 

$

4.8

 

 

(33.0

%)

 

$

19.2

 

$

38.2

 

 

(49.7

%)

 

Revenue (in millions)

 

$

119.0

 

$

148.2

 

 

(19.7

%)

 

$

527.1

 

$

692.2

 

 

(23.9

%)

 

Net Loss (in millions)

 

$

(65.0

)

$

(44.9

)

 

(44.6

%)

 

$

(152.6

)

$

(194.2

)

 

21.4

%

 

Adjusted EBITDA (in millions) 1

 

$

2.8

 

$

3.5

 

 

(20.0

%)

 

$

(8.7

)

$

(23.3

)

 

62.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outlook for The First Quarter of 2024

 

 

Outlook For Quarter Ending March 31, 2024

 

 

(in millions)

 

 

 

 

 

 

Revenue

 

$

113

 

$

121

 

 

 

 

 

 

 

 

 

Net Loss

 

$

(15

)

$

(10

)

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

Depreciation and Amortization

 

$

5

 

$

5

 

 

Amortization of Content Assets

 

$

5

 

$

5

 

 

Interest Expense

 

$

2

 

$

2

 

 

Equity-Based Compensation

 

$

5

 

$

5

 

 

Other Adjustment Items

 

$

(2

)

$

(2

)

 

Total Adjustments

 

$

15

 

$

15

 

 

 

 

 

 

 

 

 

Adjusted EBITDA 1

 

 

 

$

5

 

 

 

 

 

 

 

 

 

1 A definition of Adjusted EBITDA and reconciliation to net loss is at the end of this release.

Conference Call and Webcast Information

BODi will host a conference call at 5:00pm ET on Monday, March 11, 2024, to discuss its financial results and matters other than past results, such as guidance. To participate in the live call, please dial (833) 470-1428 (U.S. & Canada), or +1 (929) 526-1599 (all other locations) and provide the conference identification number: 485492. The conference call will also be available to interested parties through a live webcast at https://investors.thebeachbodycompany.com/.

A replay of the call will be available until March 18, 2024, by dialing (866) 813-9403 (U.S. & Canada), or + 44 (204) 525-0658 (all other locations). The replay passcode is 109802.

After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year.

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 25 years such as P90X, Insanity, and 21-Day Fix, plus the first premium superfood nutrition supplement, Shakeology. Headquartered in El Segundo, California, BODi helps people feel great while they 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.

Ticker Symbol Changed to BODi 

On March 4, 2024, the Company transitioned its stock ticker from "BODY" to "BODi" on the NYSE, in line with its rebrand from Beachbody to BODi. There were no changes made to the CUSIP or the stock's listing status on the NYSE.

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; 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.

The Beachbody Company, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

As of December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents (restricted cash of $0.1 million and $0.0 million at December 31, 2023 and 2022, respectively)

 

$

33,409

 

 

$

80,091

 

Restricted short-term investments

 

 

4,250

 

 

 

 

Inventory

 

 

24,976

 

 

 

54,060

 

Prepaid expenses

 

 

10,715

 

 

 

13,055

 

Other current assets

 

 

45,923

 

 

 

39,248

 

Total current assets

 

 

119,273

 

 

 

186,454

 

Property and equipment, net

 

 

45,055

 

 

 

74,147

 

Content assets, net

 

 

21,359

 

 

 

34,888

 

Goodwill and intangible assets, net

 

 

85,166

 

 

 

133,370

 

Right-of-use assets, net

 

 

3,063

 

 

 

5,030

 

Other assets

 

 

2,923

 

 

 

9,506

 

Total assets

 

$

276,839

 

 

$

443,395

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

10,659

 

 

$

17,940

 

Accrued expenses

 

 

42,147

 

 

 

64,430

 

Deferred revenue

 

 

97,169

 

 

 

95,587

 

Current portion of lease liabilities

 

 

1,835

 

 

 

2,150

 

Current portion of Term Loan

 

 

8,068

 

 

 

1,250

 

Other current liabilities

 

 

5,325

 

 

 

3,283

 

Total current liabilities

 

 

165,203

 

 

 

184,640

 

Term Loan

 

 

21,491

 

 

 

39,735

 

Long-term lease liabilities, net

 

 

1,425

 

 

 

3,318

 

Deferred tax liabilities, net

 

 

10

 

 

 

181

 

Other liabilities

 

 

5,950

 

 

 

3,979

 

Total liabilities

 

 

194,079

 

 

 

231,853

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 100,000,000 shares

authorized, none issued and outstanding as of December 31,

2023 and 2022

 

 

 

 

 

 

Common stock, $0.0001 par value, 1,900,000,000 shares

authorized (1,600,000,000 Class A, 200,000,000 Class X and

100,000,000 Class C);

 

 

 

 

 

 

Class A: 3,978,356 and 3,418,237 shares issued and

outstanding at December 31, 2023 and 2022, respectively;

 

 

1

 

 

 

1

 

Class X: 2,729,003 and 2,825,006 shares issued and

outstanding at December 31, 2023 and 2022, respectively;

 

 

1

 

 

 

1

 

Class C: no shares issued and outstanding at

December 31, 2023 and 2022

 

 

 

 

 

 

Additional paid-in capital

 

 

654,657

 

 

 

630,738

 

Accumulated deficit

 

 

(571,876

)

 

 

(419,235

)

Accumulated other comprehensive income (loss)

 

 

(23

)

 

 

37

 

Total stockholders’ equity

 

 

82,760

 

 

 

211,542

 

Total liabilities and stockholders’ equity

 

$

276,839

 

 

$

443,395

 

The Beachbody Company, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three months ended December 31,

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

64,044

 

 

$

68,685

 

 

$

258,370

 

 

$

300,673

 

Nutrition and other

 

 

51,781

 

 

 

74,735

 

 

 

249,510

 

 

 

353,331

 

Connected fitness

 

 

3,185

 

 

 

4,746

 

 

 

19,229

 

 

 

38,195

 

Total revenue

 

 

119,010

 

 

 

148,166

 

 

 

527,109

 

 

 

692,199

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

 

17,210

 

 

 

15,510

 

 

 

64,942

 

 

 

66,419

 

Nutrition and other

 

 

24,230

 

 

 

37,491

 

 

 

109,170

 

 

 

164,753

 

Connected fitness

 

 

3,598

 

 

 

10,544

 

 

 

29,910

 

 

 

91,454

 

Total cost of revenue

 

 

45,038

 

 

 

63,545

 

 

 

204,022

 

 

 

322,626

 

Gross profit

 

 

73,972

 

 

 

84,621

 

 

 

323,087

 

 

 

369,573

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

59,952

 

 

 

73,774

 

 

 

282,147

 

 

 

359,987

 

Enterprise technology and development

 

 

17,782

 

 

 

20,847

 

 

 

74,407

 

 

 

104,363

 

General and administrative

 

 

13,570

 

 

 

19,237

 

 

 

57,932

 

 

 

78,426

 

Restructuring

 

 

(53

)

 

 

 

 

 

6,497

 

 

 

10,047

 

Impairment of goodwill

 

 

40,000

 

 

 

 

 

 

40,000

 

 

 

 

Impairment of intangible assets

 

 

3,092

 

 

 

18,907

 

 

 

3,092

 

 

 

19,907

 

Total operating expenses

 

 

134,343

 

 

 

132,765

 

 

 

464,075

 

 

 

572,730

 

Operating loss

 

 

(60,371

)

 

 

(48,144

)

 

 

(140,988

)

 

 

(203,157

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Loss on partial debt extinguishment

 

 

 

 

 

 

 

 

(3,168

)

 

 

 

Impairment of other investment

 

 

(4,000

)

 

 

 

 

 

(4,000

)

 

 

 

Change in fair value of warrant liabilities

 

 

1,175

 

 

 

3,626

 

 

 

2,679

 

 

 

8,322

 

Interest expense

 

 

(2,101

)

 

 

(2,194

)

 

 

(8,874

)

 

 

(3,368

)

Other income, net

 

 

196

 

 

 

262

 

 

 

1,747

 

 

 

958

 

Loss before income taxes

 

 

(65,101

)

 

 

(46,450

)

 

 

(152,604

)

 

 

(197,245

)

Income tax benefit (provision)

 

 

62

 

 

 

1,517

 

 

 

(37

)

 

 

3,053

 

Net loss

 

$

(65,039

)

 

$

(44,933

)

 

$

(152,641

)

 

$

(194,192

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$

(10.31

)

 

$

(7.28

)

 

$

(24.47

)

 

$

(31.58

)

Weighted-average common shares outstanding, basic and diluted

 

 

6,307

 

 

 

6,168

 

 

 

6,239

 

 

 

6,150

 

The Beachbody Company, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(152,641

)

 

$

(194,192

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Impairment of goodwill

 

 

40,000

 

 

 

 

Impairment of intangible assets

 

 

3,092

 

 

 

19,907

 

Impairment of other investments

 

 

4,000

 

 

 

 

Depreciation and amortization expense

 

 

39,573

 

 

 

74,848

 

Amortization of content assets

 

 

23,755

 

 

 

24,276

 

Provision for inventory and inventory purchase commitments

 

 

10,561

 

 

 

39,757

 

Realized losses on hedging derivative financial instruments

 

 

222

 

 

 

108

 

Change in fair value of warrant liabilities

 

 

(2,679

)

 

 

(8,322

)

Equity-based compensation

 

 

23,891

 

 

 

17,620

 

Deferred income taxes

 

 

(191

)

 

 

(2,961

)

Amortization of debt issuance costs

 

 

1,899

 

 

 

733

 

Paid-in-kind interest expense

 

 

1,310

 

 

 

598

 

Loss on partial debt extinguishment

 

 

3,168

 

 

 

 

Change in lease assets

 

 

1,967

 

 

 

 

Other non-cash items

 

 

 

 

 

1,219

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Inventory

 

 

17,508

 

 

 

41,510

 

Content assets

 

 

(10,226

)

 

 

(19,787

)

Prepaid expenses

 

 

2,340

 

 

 

2,806

 

Other assets

 

 

(4,438

)

 

 

4,241

 

Accounts payable

 

 

(7,103

)

 

 

(26,705

)

Accrued expenses

 

 

(20,293

)

 

 

(8,673

)

Deferred revenue

 

 

2,163

 

 

 

(9,563

)

Other liabilities

 

 

(415

)

 

 

(4,593

)

Net cash used in operating activities

 

 

(22,537

)

 

 

(47,173

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(6,576

)

 

 

(26,493

)

Investment in restricted short-term investments

 

 

(4,250

)

 

 

 

Net cash used in investing activities

 

 

(10,826

)

 

 

(26,493

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

 

 

3,162

 

Remittance of taxes withheld from employee stock awards

 

 

 

 

 

(308

)

Debt borrowings

 

 

 

 

 

50,000

 

Debt repayments

 

 

(17,000

)

 

 

(625

)

Proceeds from issuance of common shares in the Employee Stock Purchase Plan

 

 

553

 

 

 

 

Tax withholdings payments for vesting of restricted stock

 

 

(2,178

)

 

 

(183

)

Payment of debt issuance costs

 

 

 

 

 

(4,485

)

Proceeds from issuance of Equity Offering, net of issuance costs

 

 

4,908

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(13,717

)

 

 

47,561

 

Effect of exchange rates on cash

 

 

398

 

 

 

(858

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(46,682

)

 

 

(26,963

)

Cash, cash equivalents and restricted cash, beginning of year

 

 

80,091

 

 

 

107,054

 

Cash, cash equivalents and restricted cash, end of year

 

$

33,409

 

 

$

80,091

 

The Beachbody Company, Inc.
Non GAAP Information

We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

We define and calculate Adjusted EBITDA as net income (loss) adjusted for impairment of goodwill and intangible assets, depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income tax provision (benefit), equity-based compensation, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business as described in the reconciliation below.

We include this non-GAAP financial measure because it is used by management to evaluate BODi’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, impairment of goodwill and intangible assets and equity-based compensation) or are not related to our underlying business performance (for example, in the case of restructuring costs, interest income and expense).

The table below presents our Adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated:

 

 

Three months ended

December 31,

 

 

Year ended December 31,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(65,039

)

 

$

(44,933

)

 

$

(152,641

)

 

$

(194,192

)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of goodwill

 

 

40,000

 

 

 

 

 

 

40,000

 

 

 

 

Impairment of intangible assets

 

 

3,092

 

 

 

18,907

 

 

 

3,092

 

 

 

19,907

 

Impairment of other investment

 

 

4,000

 

 

 

 

 

 

4,000

 

 

 

 

Loss on partial debt extinguishment (1)

 

 

 

 

 

 

 

 

3,168

 

 

 

 

Depreciation and amortization

 

 

8,178

 

 

 

15,990

 

 

 

39,573

 

 

 

74,848

 

Amortization of capitalized cloud computing implementation costs

 

 

57

 

 

 

30

 

 

 

179

 

 

 

492

 

Amortization of content assets

 

 

7,268

 

 

 

5,603

 

 

 

23,755

 

 

 

24,276

 

Interest expense

 

 

2,101

 

 

 

2,194

 

 

 

8,874

 

 

 

3,368

 

Income tax provision (benefit)

 

 

(62

)

 

 

(1,517

)

 

 

37

 

 

 

(3,053

)

Equity-based compensation

 

 

4,739

 

 

 

4,454

 

 

 

23,891

 

 

 

17,620

 

Employee incentives, expected to be settled in equity (2)

 

 

 

 

 

5,466

 

 

 

(5,466

)

 

 

5,466

 

Inventory net realizable value adjustment (3)

 

 

 

 

 

1,295

 

 

 

 

 

 

24,864

 

Restructuring and platform consolidation costs (4)

 

 

(53

)

 

 

 

 

 

7,169

 

 

 

11,718

 

Change in fair value of warrant liabilities

 

 

(1,175

)

 

 

(3,626

)

 

 

(2,679

)

 

 

(8,322

)

Non-operating (5)

 

 

(309

)

 

 

(320

)

 

 

(1,649

)

 

 

(257

)

Adjusted EBITDA

 

$

2,797

 

 

$

3,543

 

 

$

(8,697

)

 

$

(23,265

)

1 Represents the loss related to the $15.0 million partial debt prepayment that the Company made on July 24, 2023.

2 The non-cash charge for employee incentives which were expected to be settled in equity was recorded and included in the Adjusted EBITDA calculation during the year ended December 31, 2022. During the three months ended March 31, 2023, we reclassified the non-cash charge from employee incentives expected to be settled in equity to equity-based compensation because we settled certain employee incentives with restricted stock unit awards during the period.

3 Represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. This adjustment was included during the three months and year ended December 31, 2022, because of its unusual magnitude due to disruptions in the connected fitness market.

4 Includes restructuring expense and personnel costs associated with executing our key growth priorities during the year ended December 31, 2023, and with the consolidation of our digital platforms during the three months and year ended December 31, 2022. The costs primarily relates to termination benefits related to headcount reductions.

5 Primarily includes interest income.

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