8-K
Beachbody Company, Inc. (BODI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2022
The Beachbody Company, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-39735 | 85-3222090 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (I.R.S. Employer<br> <br>Identification No.) |
| 400 Continental Blvd, Suite 400 | ||
| --- | ||
| El Segundo, California 90245 | ||
| (Address of principal executive offices) |
(310) 883-9000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br> <br>symbol(s) | Name of exchange<br> <br>on which registered |
|---|---|---|
| Class A common stock, par value $0.0001 per share | BODY | New York Stock Exchange |
| Redeemable warrants, each whole warrant exercisable for one Class A common stock at an exercise price of $11.50 | BODY WS | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
The information in this report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not to be incorporated by reference into any filing by The Beachbody Company, Inc. (the “Company”), under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing, unless otherwise expressly stated in such filing.
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On August 8, 2022, the Company announced its financial results for the quarter ended June 30, 2022. A copy of the Company’s press release announcing its financial results and certain other information is attached as Exhibit 99.1 to this report.
| Item 9.01. | Financial Statements and Exhibits |
|---|
(d) Exhibits.
| 99.1 | Press release dated August 8, 2022 |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| The Beachbody Company, Inc. | ||
|---|---|---|
| (Registrant) | ||
| Date: August 8, 2022 | /s/ Blake T. Bilstad | |
| Name: | Blake T. Bilstad | |
| Title | Chief Legal Officer and Corporate Secretary |
EX-99.1
Exhibit 99.1
The Beachbody Company, Inc. Announces Second Quarter 2022 Financial Results
Second Quarter Results Show Significant Sequential Improvement in Profitability
Reduced Cash Usage by More than $30 Million Compared to First Quarter 2022
Strong Growth Compared to 2019 Pre-COVID Baseline: Total Digital and Nutritional Subscriptions
+26%, Average Digital Retention +40BPS, Total Streams +22%, DAU/MAU +140BPS
Secured $50 Million in Debt Financing
El Segundo, Calif. (August 8, 2022) – The Beachbody Company, Inc. (NYSE: BODY) (“Beachbody” or the “Company”), a leading subscription health and wellness company, today announced financial results for its second quarter ended June 30, 2022.
“Our results in the second quarter reflect continued progress on our One Brand strategy to make the business more efficient and more productive. With strong focus and solid execution, we reduced cash usage by more than $30 million compared to the first quarter, drove profitable customer acquisition through new content releases, our highly effective proprietary sales network and disciplined marketing, and delivered Adjusted EBITDA above our guidance,” said Carl Daikeler, Beachbody’s Co-Founder, Chairman, and Chief Executive Officer. “While the near-term environment remains dynamic, the actions we are taking to adapt our business model position us to successfully navigate current market realities. We will continue to leverage our unique business model, significant scale and our talented and focused management team to capitalize on the significant long-term opportunity we see in what remains a large and massively underpenetrated market.”
Second Quarter 2022 Results
| • | Total revenue was $179.1 million, a 20% decrease compared to 2021 and a 3% decrease compared to 2019<br> |
|---|---|
| • | Digital revenue was $78.0 million, a 17% decrease compared to 2021 |
| --- | --- |
| • | Digital subscriptions were 2.28 million, a 16% decrease compared to 2021 and a 35% increase compared to 2019<br> |
| --- | --- |
| • | 95.6% month-over-month average digital retention, a 70-basis point<br>increase compared to 2021 and a 40-basis point increase compared to 2019 |
| --- | --- |
| • | 31.0 million total streams, a 30% decrease compared to 2021, and a 22% increase compared to 2019<br> |
| --- | --- |
| • | 30.0% DAU/MAU, a 190-basis point decrease compared to 2021, and a 140-basis point increase compared to 2019 |
| --- | --- |
| • | Connected Fitness revenue was $10.6 million, compared to none in 2021^1^ |
| --- | --- |
| • | Approximately 8,800 bikes delivered in the second quarter |
| --- | --- |
| • | On a pre-merger basis, Connected Fitness revenue was $11.0 million<br>in Q2 2021, with approximately 10,200 bikes delivered |
| --- | --- |
| • | Nutrition and Other revenue was $90.5 million, a 30% decrease compared to 2021 |
| --- | --- |
| • | Nutritional subscriptions were 0.28 million, compared to 0.42 million in 2021 and 0.34 million in<br>2019 |
| --- | --- |
| • | Net loss was $41.9 million, compared to a net loss of $12.4 million in 2021 and net income of<br>$19.6 million in 2019 |
| --- | --- |
| • | Adjusted EBITDA^2^ was ($1.5) million, compared to ($4.4)<br>million in 2021 and $17.7 million in 2019 |
| --- | --- |
| ^1^ | Q2 2021 only included 5 days of results for Connected Fitness. |
| --- | --- |
| ^2^ | A definition of Adjusted EBITDA and reconciliation to net loss is at the end of this release.<br> |
| --- | --- |
Key Operational and Business Metrics
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2019 | 2022 | 2019 | |||||||||||
| Connected Fitness Units Delivered (in thousands) | 8.8 | 0.5 | NM | 0.0 | NM | 25.4 | 0.5 | NM | 0.0 | NM | ||||
| Digital Subscriptions (in millions) | 2.28 | 2.72 | (16%) | 1.69 | 35% | 2.28 | 2.72 | (16%) | 1.69 | 35% | ||||
| Nutritional Subscriptions (in millions) | 0.28 | 0.42 | (33%) | 0.34 | (18%) | 0.28 | 0.42 | (33%) | 0.34 | (18%) | ||||
| Total Subscriptions | **** | 2.56 | 3.14 | (18%) | **** | 2.03 | 26% | **** | 2.56 | 3.14 | (18%) | **** | 2.03 | 26% |
| Average Digital Retention | 95.6% | 94.9% | 70bps | 95.2% | 40bps | 95.6% | 95.4% | 20bps | 95.1% | 50bps | ||||
| Total Streams (in millions) | 31.0 | 44.5 | (30%) | 25.5 | 22% | 69.2 | 100.4 | (31%) | 52.0 | 33% | ||||
| DAU/MAU | 30.0% | 31.9% | (190bps) | 28.6% | 140bps | 31.6% | 33.5% | (190bps) | 29.1% | 250bps | ||||
| Digital | 78.0 | 94.3 | (17%) | 58.8 | 33% | 159.8 | 189.5 | (16%) | 124.8 | 28% | ||||
| Connected Fitness | 10.6 | 0.0 | NM | 0.0 | NM | 30.1 | 0.0 | NM | 0.0 | NM | ||||
| Nutrition & other | 90.5 | 128.8 | (30%) | 124.9 | (28%) | 188.2 | 259.8 | (28%) | 269.9 | (30%) | ||||
| Revenue (in millions) | **** | 179.1 | 223.1 | (20%) | **** | 183.7 | (3%) | **** | 378.1 | 449.3 | (16%) | **** | 394.7 | (4%) |
| Net Income/(Loss) (in millions) | **** | (41.9) | (12.4) | (238%) | **** | 19.6 | (314%) | **** | (115.4) | (42.5) | (172%) | **** | 27.1 | (526%) |
| Adjusted EBITDA (in millions) | **** | (1.5) | (4.4) | 66% | **** | 17.7 | (108%) | **** | (20.6) | (16.1) | (28%) | **** | 39.7 | (152%) |
All values are in US Dollars.
Balance Sheet Update
The Company also announced that it has entered into an agreement with Blue Torch Capital to provide $50 million in debt financing, which will serve to enhance Beachbody’s financial flexibility. The agreement also includes the option for Beachbody to borrow up to an additional $25 million, subject to the terms of the credit agreement.
2022 Financial Outlook ^3^
During fiscal 2022, the Company now expects to realize a combined Adjusted EBITDA loss improvement and capital expenditure reduction of approximately $110 million to $120 million, compared to 2021.
For the third quarter of 2022 the Company expects:
| • | Total revenue of $150 million to $160 million |
|---|---|
| • | Adjusted EBITDA loss of $15 million to $20 million |
| --- | --- |
| ^3^ | Net loss guidance is not reasonably available due to potential changes in matters that we cannot forecast atthis time. |
| --- | --- |
Conference Call and Webcast Information
Beachbody will host a conference call at 5:00pm ET on Monday, August 8, 2022 to discuss its financial results. To participate in the live call, please dial (844) 200-6205 (U.S. & Canada), or (646) 904-5544 (all other locations) and provide the conference identification number: 440786. 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 August 15, 2022 by dialing (866) 813-9403 (U.S & Canada), or (929) 458-6194 (all other locations). The replay passcode is 669965.
After the conference call, a webcast replay will remain available on the investor relations section of the Company’s website for one year.
About The Beachbody Company, Inc.
Headquartered in Southern California, Beachbody is a leading digital fitness and nutrition subscription company with over two decades of creating innovative content and powerful brands. The Beachbody Company is the parent company of the Beachbody On Demand streaming platform (BOD), including its live digital streaming subscription BODi, and the Beachbody Bike powered by MYXfitness, the Company’s connected indoor bike. For more information, please visit TheBeachbodyCompany.com.
Safe Harbor Statement
This press release contains “forward-looking” statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are statements other than historical fact or in the 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 1, 2022 and quarterly reports on Form 10-Q, which are available on the Investor Relations page of the Beachbody 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)
| December 31,<br><br><br>2021 | |||||
|---|---|---|---|---|---|
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 57,060 | $ | 104,054 | ||
| Restricted cash | — | 3,000 | |||
| Inventory, net | 72,271 | 132,730 | |||
| Prepaid expenses | 10,317 | 15,861 | |||
| Other current assets | 44,828 | 43,727 | |||
| Total current assets | 184,476 | 299,372 | |||
| Property and equipment, net | 92,301 | 113,098 | |||
| Content assets, net | 38,098 | 39,347 | |||
| Goodwill and intangible assets, net | 162,361 | 171,533 | |||
| Other assets | 12,803 | 14,262 | |||
| Total assets | 490,039 | $ | 637,612 | ||
| Liabilities and Stockholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | 22,676 | $ | 48,379 | ||
| Accrued expenses | 62,349 | 74,525 | |||
| Deferred revenue | 107,282 | 107,095 | |||
| Other current liabilities | 4,564 | 6,233 | |||
| Total current liabilities | 196,871 | 236,232 | |||
| Deferred tax liabilities | 2,031 | 3,165 | |||
| Other liabilities | 10,981 | 12,830 | |||
| Total liabilities | 209,883 | 252,227 | |||
| Commitments and contingencies (Note 8)<br>Stockholders’ equity: | |||||
| Preferred stock, 0.0001 par value; 100,000,000 shares authorized, none issued and outstanding at<br>June 30, 2022 and December 31, 2021 | — | — | |||
| Common stock, 0.0001 par value, 1,900,000,000 shares authorized (1,600,000,000 Class A,<br>200,000,000 Class X and 100,000,000 Class C); | |||||
| Class A: 170,263,772 and 168,333,463 shares issued and outstanding at June 30, 2022 and December<br>31, 2021, respectively; | 17 | 17 | |||
| Class X: 141,250,310 shares issued and outstanding at June 30, 2022 and December 31, 2021,<br>respectively; | 14 | 14 | |||
| Class C: no shares issued and outstanding at June 30, 2022 and December 31, 2021 | — | — | |||
| Additional paid-in capital | 620,643 | 610,418 | |||
| Accumulated other comprehensive loss | (75 | ) | (21 | ) | |
| Accumulated deficit | (340,443 | ) | (225,043 | ) | |
| Total stockholders’ equity | 280,156 | 385,385 | |||
| Total liabilities and stockholders’ equity | 490,039 | $ | 637,612 |
All values are in US Dollars.
The Beachbody Company, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
| Three Months EndedJune 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Revenue: | ||||||||||||
| Digital | $ | 78,015 | $ | 94,325 | $ | 159,760 | $ | 189,475 | ||||
| Connected fitness | 10,605 | 10 | 30,118 | 10 | ||||||||
| Nutrition and other | 90,516 | 128,773 | 188,180 | 259,842 | ||||||||
| Total revenue | 179,136 | 223,108 | 378,058 | 449,327 | ||||||||
| Cost of revenue: | ||||||||||||
| Digital | 18,406 | 11,612 | 34,831 | 22,734 | ||||||||
| Connected fitness | 31,459 | 156 | 76,165 | 156 | ||||||||
| Nutrition and other | 42,002 | 57,002 | 86,776 | 113,997 | ||||||||
| Total cost of revenue | 91,867 | 68,770 | 197,772 | 136,887 | ||||||||
| Gross profit | 87,269 | 154,338 | 180,286 | 312,440 | ||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing | 86,624 | 140,194 | 193,068 | 284,890 | ||||||||
| Enterprise technology and development | 24,133 | 26,949 | 57,830 | 54,038 | ||||||||
| General and administrative | 19,584 | 17,231 | 39,657 | 35,177 | ||||||||
| Restructuring | 1,332 | — | 8,555 | — | ||||||||
| Total operating expenses | 131,673 | 184,374 | 299,110 | 374,105 | ||||||||
| Operating loss | (44,404 | ) | (30,036 | ) | (118,824 | ) | (61,665 | ) | ||||
| Other income (expense): | ||||||||||||
| Change in fair value of warrant liabilities | 2,070 | 5,390 | 2,334 | 5,390 | ||||||||
| Interest expense | (3 | ) | (305 | ) | (22 | ) | (428 | ) | ||||
| Other income, net | 189 | 1,654 | 125 | 2,953 | ||||||||
| Loss before income taxes | (42,148 | ) | (23,297 | ) | (116,387 | ) | (53,750 | ) | ||||
| Income tax benefit | 281 | 10,857 | 987 | 11,252 | ||||||||
| Net loss | ($ | 41,867 | ) | ($ | 12,440 | ) | ($ | 115,400 | ) | ($ | 42,498 | ) |
| Net loss per common share, basic and diluted | ($ | 0.14 | ) | ($ | 0.05 | ) | ($ | 0.38 | ) | ($ | 0.17 | ) |
| Weighted-average common shares outstanding, basic and diluted | 307,205 | 247,062 | 306,786 | 245,049 |
The Beachbody Company, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
| Six Months EndedJune 30, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Cash flows from operating activities: | ||||||
| Net loss | ($ | 115,400 | ) | ($ | 42,498 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization expense | 41,552 | 25,941 | ||||
| Amortization of content assets | 13,180 | 6,119 | ||||
| Provision for inventory and net realizable value adjustment | 32,019 | 2,791 | ||||
| Realized losses on hedging derivative financial instruments | 143 | 339 | ||||
| Gain on investment in convertible instrument | — | (3,114 | ) | |||
| Change in fair value of warrant liabilities | (2,334 | ) | (5,390 | ) | ||
| Equity-based compensation | 7,565 | 5,095 | ||||
| Deferred income taxes | (1,143 | ) | (11,349 | ) | ||
| Other non-cash items | 311 | — | ||||
| Changes in operating assets and liabilities: | ||||||
| Inventory | 28,400 | (194 | ) | |||
| Content assets | (11,940 | ) | (14,237 | ) | ||
| Prepaid expenses | 5,545 | (1,789 | ) | |||
| Other assets | 167 | (5,774 | ) | |||
| Accounts payable | (22,753 | ) | 6,656 | |||
| Accrued expenses | (7,739 | ) | (461 | ) | ||
| Deferred revenue | 1,000 | 16,547 | ||||
| Other liabilities | (1,829 | ) | (4,169 | ) | ||
| Net cash used in operating activities | (33,256 | ) | (25,487 | ) | ||
| Cash flows from investing activities: | ||||||
| Purchase of property and equipment | (19,222 | ) | (27,200 | ) | ||
| Investment in convertible instrument | — | (5,000 | ) | |||
| Other investment | — | (5,000 | ) | |||
| Cash paid for acquisition, net of cash acquired | — | (37,280 | ) | |||
| Net cash used in investing activities | (19,222 | ) | (74,480 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from exercise of stock options | 2,968 | — | ||||
| Remittance of taxes withheld from employee stock awards | (308 | ) | — | |||
| Borrowings under Credit Facility | — | 42,000 | ||||
| Repayments under Credit Facility | — | (42,000 | ) | |||
| Business combination, net of issuance costs paid | — | 389,775 | ||||
| Net cash provided by financing activities | 2,660 | 389,775 | ||||
| Effect of exchange rates on cash | (176 | ) | 594 | |||
| Net (decrease) increase in cash and cash equivalents | (49,994 | ) | 290,402 | |||
| Cash, cash equivalents and restricted cash, beginning of period | 107,054 | 56,827 | ||||
| Cash and cash equivalents, end of period | $ | 57,060 | $ | 347,229 | ||
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid during the year for interest | $ | 17 | $ | 283 | ||
| Cash paid during the year for income taxes, net | 310 | 198 | ||||
| Supplemental disclosure of noncash investing activities: | ||||||
| Property and equipment acquired but not yet paid for | $ | 2,330 | $ | 15,322 | ||
| Class A Common Stock issued in connection with acquisition | — | 162,558 | ||||
| Fair value of Myx instrument and promissory note held by Old Beachbody | — | 22,618 | ||||
| Supplemental disclosure of noncash financing activities: | ||||||
| Business Combination transaction costs, accrued but not paid | — | 650 | ||||
| Net assets assumed in the Business Combination | — | 293 |
The Beachbody Company, Inc.
Adjusted EBITDA
In addition to our results determined in accordance with accounting principles generally accepted in the United States, or GAAP, we believe the following non-GAAP financial measure of Adjusted EBITDA is useful in evaluating our operating performance.
We define and calculate Adjusted EBITDA as net income (loss) adjusted for depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income taxes, equity-based compensation, net realizable value adjustment, transaction costs, restructuring expense, change in fair value of warrant liabilities, and other items that are not normal, recurring, operating expenses necessary to operate the Company’s business.
The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure. A reconciliation of our non-GAAP Adjusted EBITDA to GAAP net loss can be found below:
| (in thousands) | Three Months EndedJune 30, | Six Months EndedJune 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Net loss | ($ | 41,867 | ) | ($ | 12,440 | ) | ($ | 115,400 | ) | ($ | 42,498 | ) |
| Adjusted for: | ||||||||||||
| Depreciation and amortization | 19,965 | 12,215 | 41,552 | 25,941 | ||||||||
| Amortization of capitalized cloud computing implementation costs | 168 | 168 | 336 | 336 | ||||||||
| Amortization of content assets | 7,016 | 3,302 | 13,180 | 6,119 | ||||||||
| Interest expense | 3 | 305 | 22 | 428 | ||||||||
| Income tax benefit | (281 | ) | (10,857 | ) | (987 | ) | (11,252 | ) | ||||
| Equity-based compensation | 3,001 | 2,522 | 7,565 | 5,095 | ||||||||
| Inventory net realizable value adjustment (1) | 10,502 | — | 25,436 | — | ||||||||
| Transaction costs | — | 1,509 | 2 | 2,142 | ||||||||
| Restructuring and platform consolidation costs (2) | 2,086 | — | 9,973 | — | ||||||||
| Change in fair value of warrant liabilities | (2,070 | ) | (5,390 | ) | (2,334 | ) | (5,390 | ) | ||||
| Other adjustment items (3) | — | 6,038 | — | 6,038 | ||||||||
| Non-operating (4) | 5 | (1,757 | ) | 76 | (3,088 | ) | ||||||
| Adjusted EBITDA | ($ | 1,472 | ) | ($ | 4,385 | ) | ($ | 20,579 | ) | ($ | 16,129 | ) |
| (1) | Represents a non-cash expense to reduce the carrying value of our<br>connected fitness inventory and related future commitments. This adjustment is included because of its unusual magnitude due to disruptions in the connected fitness market. | |||||||||||
| --- | --- | |||||||||||
| (2) | Includes restructuring expense and non-recurring personnel costs<br>associated with the consolidation of our digital platforms. | |||||||||||
| --- | --- | |||||||||||
| (3) | Incremental costs associated with COVID-19. | |||||||||||
| --- | --- | |||||||||||
| (4) | Includes interest income, and during the three and six months ended June 30, 2021, also includes the gain<br>on investment on the Myx convertible instrument. | |||||||||||
| --- | --- |
Source: The Beachbody Company, Inc.
Media
Jill Murray
Jillian.Murray@teneo.com
Investor Relations
Edward Plank
eplank@beachbody.com