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Home » Uncategorized » Inside BODi’s Plan To Become the ‘Netflix of Digital Fitness’ – Athletech News

Despite recent struggles, the brand formerly known as Beachbody expects positive cash flow for the first time since 2020

BODi, formerly known as Beachbody, the OG of subscription health and fitness systems, expects positive cash flow in Q1 the first time since 2020 following a transformational 2023. The company just released its financial earnings, reporting a total revenue of $119.0 million in Q4 of 2024, compared to $148 million in the prior year period. Total revenue for the full year 2023 was $527.1 million, compared to $692.2 million in the prior year.

Despite the seemingly lackluster financial results, BODis executive team tells Athletech News theyre bullish on the companys future, driven by a focus on improving cash flow and leaning into digital fitness and holistic wellness content, including an embrace of GLP-1s.

The company known for its high-energy fitness coaches such as Autumn Calabrese, Shaun T, Tony Horton and Shakeology protein shakes, underwent a major rebrand from Beachbody to BODi last year, adopting a more holistic approach to health and wellness. The move also included a major declaration from Carl Daikeler, the companys co-founder and CEO: Beachbody is dead.

In place of the old and tired diet and fitness industry playbook, Daikeler explained his vision for the future one in which a positive mindset was woven into the health and fitness experience, combatting what he called a permanent dissatisfaction that many consumers experience.

Its not a quick fix, especially in a highly competitive industry, but BODi is encouraged by early results, including high search traffic volume following its makeover. Reflecting on 2023s earnings, Daikeler says BODis self-described turnaround plan has been successful so far, with the company lowering its breakeven point and enhancing its liquidity.

In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business,Daikeler said. 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.

BODi has also offloaded its Van Nuys, California, production facility for $6.2 million, using the net proceeds to make a partial prepayment on its $5.5 million term loan.

BODis Financial Overhaul

Mark Goldston, executive chairman of BODis board of directors, partnered with Daikeler last year to guide the companys transformation, drive profitability and unlock growth opportunities. He also serves as chairman and CEO of The Goldston Group and is a general partner of Athletic Propulsion Labs, a high-end performance athletic footwear company lending his expertise to revitalize and reposition BODi back on its fitness throne.

Since the start of the program, we are on track to achieve over $200 million in fixed costs and CapEx savings in 2024 over 2021, and introduced a more efficient sales and marketing model that aims to deliver a 1,000 (basis points) bps improvement in 2024, Goldston tells Athletech News. This dramatically lowers the revenue breakeven for the company. By building operating leverage into the P&L, our dramatically lower cost base has the potential to generate strong incremental profitability when we return to revenue growth.

Last year, the company also introduced a new Growth Game Plan that rewards high-performing network sales partners within its subscription health and fitness system.

King of Fitness Content

Touting its extensive digital fitness library of 134-plus programs with widely-known titles such as P90X, Insanity, 21-Day Fix and Lift More, BODi is leaning into its content offering, having refined its appeal.

We think of BODi as being the Netflix of the digital fitness industry, and we are doing a much better job of leveraging that library, Goldston said. That includes creating our first-ever free BODi Previews tool that features over 120 individual workouts and allowing even more consumers to enter into our community.

Goldston also shared that BODi is expanding its retail and direct marketing business to bring the benefits of its fitness content and nutritional products to a broader audience.

Our BODi digital fitness app was recently named the #1 workout app last year by CNN Underscored, so were being recognized for the impact were making for modern fitness consumers, Goldston said.

Embracing Wellness & Weight Loss Drugs

Unafraid of GLP-1 weight loss drugs, BODi instead sees a significant opportunity.

With over 145 million American adults categorized as overweight and more than 75 million of those people considered clinically obese, the TAM for BODi is massive, Goldston predicts, adding that many people who are considerably overweight may experience difficulty starting an exercise program and are self-conscious about going to a gym.

The GLP-1 drug movement is designed to address the 145 million people who are overweight, especially the clinically obese, and we strongly believe that those drugs will unlock a major TAM opportunity for BODi largely because a large group of people will lose enough weight to safely and comfortably consider starting an exercise program in the privacy of their own home, he continued.

Goldston also referenced the need for GLP-1 users to maintain a healthy eating regimen, which he sees as a major boon for BODI in terms of its meal plans and nutritional supplement offerings.

As for BODis fitness content, Goldston pointed out that the platforms fitness programs can help offset the loss of muscle mass.

The GLP-1 drugs have been known to have an adverse effect on lean muscle mass, and therefore, the use of programs like those contained in the BODi library will help reduce the risk of losing lean muscle mass and help people maintain and gain strength while getting their weight under control and improving their overall level of fitness, he said.

While BODi forges ahead, fortified by its vast digital fitness content and nutritional supplements, Goldston also sees the subscription health and fitness system taking center stage to meet an even bigger trend.

I believe that the industry has truly embraced a more holistic approach to fitness, he said. While there is no easy fix to maintaining a healthy life, there are benefits to a balanced approach. Consumers continue to look for guidance and that is a fundamental core principle of our approach at BODi. At BODi, its that balanced approach that makes us unique.

This article has been updated.

Excerpt from:
Inside BODi's Plan To Become the 'Netflix of Digital Fitness' - Athletech News

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Home » Uncategorized » Inside BODi’s Plan To Become the ‘Netflix of Digital Fitness’ – Athletech News