In This Article:
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Revenue: $202 million for Q2 2024.
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Subscription Revenue: $200 million, a decline of 5% year over year.
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Clinical Revenue: $20 million, up $12 million year over year.
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Adjusted Gross Margin: 67.9%, up from 63.4% in the prior year.
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Marketing Expenses: $54 million, up 5% year over year.
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Adjusted G&A: $46 million, down 22% versus prior year.
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Adjusted Operating Income: $38 million, an increase of 13%.
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GAAP EPS: $0.29 compared to $0.65 in the year-ago quarter.
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Subscribers: 3.8 million, a decline of 6% year over year.
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Full Year Revenue Guidance: At least $770 million.
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Adjusted EBITDA Guidance: At least $150 million for full year 2024.
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Net Debt to Adjusted EBITDA Leverage Ratio: 9.6 times at Q2 end.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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WW International Inc (NASDAQ:WW) reported a nearly 120% increase in clinical subscribers year over year, driving $20 million in clinical revenue, up $12 million from the previous year.
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The company achieved a record high adjusted gross margin of 67.9%, up from 63.4% in the prior year, primarily driven by the discontinuation of the lower-margin consumer products business.
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WW International Inc (NASDAQ:WW) is expanding its offerings by making insurance-covered nutrition counseling with registered dietitians available to eligible members, starting with a pilot in New Jersey.
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The company launched a programmatic GLP-1 medication supply tracker to assist clinic members in locating medication supply, contributing to increased retention and a 12-month high Net Promoter Score (NPS).
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WW International Inc (NASDAQ:WW) is executing a strategic streamlining of its operational structure, resulting in approximately $60 million in annualized cash savings, mainly benefiting General and Administrative (G&A) expenses.
Negative Points
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WW International Inc (NASDAQ:WW) experienced a 6% year-over-year decline in total subscribers, ending Q2 with 3.8 million subscribers.
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The company faced increased competition and rising customer acquisition costs (CAC) in the clinic business, driven by a higher number of competitors offering compounded medications.
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Marketing expenses increased by 5% year over year, reflecting higher online advertising costs amid a challenging marketing environment.
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WW International Inc (NASDAQ:WW) revised its year-end subscriber guidance to at least 3.1 million, indicating a return to historical patterns of subscriber decline.
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The company is facing challenges with insurance coverage for obesity medications, as some health plans are discontinuing coverage, raising health equity concerns.