Ww International, Inc. Q3 FY2021 Earnings Call

Good afternoon, and welcome to the WW International Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Corey Kinger, Investor Relations. Please go ahead.

Thank you to everyone for joining us today for WW International's third quarter 2021 conference call. At about 4 o'clock PM Eastern Time today, we issued a press release reporting our third quarter 2021 results. The purpose of this call is to provide investors with some further details regarding the company's financial results as well as to provide a general update on the company's progress. The press release is available on the company's corporate website located at corporate.ww.com. Supplemental investor materials are also available on the company's corporate website in the Investors section under Presentations & Events. Reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the press release. Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today and, except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Joining today's call are Mindy Grossman, President and CEO; Nick Hotchkin, COO; and Amy O'Keefe, CFO. I will now turn the call over to Mindy.

Thanks, Corey. Good afternoon, everyone. Before we get started, I want to give context to the announcement last month about my decision to step down as President and CEO of WW after the first quarter of 2022. When I joined Weight Watchers in July 2017, to lead the transformation of brands, I knew it was an opportunity to have both a business impact and human impact. Our purpose, we inspire healthy habits for real life, for people, families, communities, the world, for everyone, to be the brand that can democratize wellness for all is truly what WW represents today. We have transformed digitally, creating a holistic weight and wellness ecosystem, expanded and diversified our member base and leveraged the power of community at the core of all that we do. I am proud to have built and led the extraordinary WW team through this transformation and the challenges of the past two years. But what I'm truly excited about is the launch next week of the most groundbreaking food program innovation in the company's history, an entirely new science-based personalized program for efficacious, livable, sustainable, healthy weight loss and overall wellness. My intention is to lead the company through this launch and the winter 2022 season, and then provide a seamless transition to new leadership. This has been a profound experience. And I will always be part of the WW family as a member, an advocate, and an ambassador for all that we do. And I can assure you that the entire WW team shares a common purpose and will carry on the impactful work that we're doing around the world each and every day. We're turning now to our third quarter results. Revenue was below our expectations, and digital growth did not offset the expected year-over-year headwinds from the workshop business. Year-over-year digital recruitment trends softened further from Q2 levels, bringing our total end-of-period subscribers to 4.5 million, down 4% year-over-year and digital subscribers to 3.7 million, down 3% year-over-year in the third quarter. Traffic and search continue to be under pressure, and we believe this is an industry-wide trend for digital weight loss programs. We are deliberately adjusting our spend, putting more investment into the fourth quarter, where we believe our new marketing assets will have greater impact by amplifying our exciting new Food Program Innovation. We managed our cost structure effectively to deliver an adjusted gross margin of 62% in the quarter. In addition, we executed on our G&A cost reduction plans, driving savings ahead of our initial expectation for Q3 and focusing our resources behind the initiatives, which will drive a successful 2022. The shifting consumer behaviors around weight loss prioritization of the last several months has resulted in 2021 being a more challenging year than we anticipated; however, it in no way diminishes our enthusiasm and confidence in our 2022 Food Program Innovation and the potential to drive significant momentum in January. That time of year with many people focused on their goals for the year ahead and reprioritizing their health and wellness. On Monday, November 8th, we will be launching our new Food Program globally. Because we believe that innovation is so important and powerful. Today we will be providing you with a preview of the key program elements ahead of Monday's official launch. In addition, to give you a behind-the-scenes perspective, on the strategy for the new program, we will be hosting a virtual innovation event on November 18, for analysts and investors. During the event, we will share more color on the development process, the science and insights behind our new program, and discuss how we are bringing it all to life. Details will be announced in the coming days. As I mentioned previously, the cross-functional multiyear effort behind this innovation was the most comprehensive and well-executed that I have witnessed since joining WW. On Monday, you will globally launch a new food program with truly individualized plans that are custom built for each member. Each member will have a unique point budget and their very own zero-point foods list based on the foods they say they love and can sell out. For the first time since 2016, we are updating our proprietary award-winning point system to account for added sugar and saturated fat, fiber, and additional nutrients. The WW team, consisting of registered dieticians and nutrition scientists, developed the rigorously tested modernized food algorithm to reflect the latest science and healthy eating recommendations and nutrition. And for the first time, members will now be able to earn points for practicing healthy behaviors, enabling them to grow their daily budget by eating non-starchy vegetables, reaching a daily water goal, and exercising. We have purposely created a scientifically advanced program that puts our members front and center so they can find satisfaction in adopting healthy habits that are livable, realistic, and sustainable. As part of the onboarding assessment, each member takes to customize their ZeroPoint foods list and personalized budget. Those members who indicate they have diabetes will receive a food plan specifically tailored to their unique food needs, guiding them towards foods that are less likely to impact blood sugar levels and consistent with the American Diabetes Association and International Diabetes Federation guidelines. We believe this is a powerful program innovation, as research has proven that individualized programs work in helping people achieve their weight loss goals. During the six-month clinical trial, participants experienced clinically significant results as it pertains to their weight and overall health and wellness. Not only did we see clinically significant weight loss during this time, but we also saw notable improvements in overall quality of life and well-being, decreased hunger and food cravings, and improvements in both physical activity and adoption of healthy habits. As always, from the innovation launch to late December, our primary focus will be on inspiring and onboarding our current members to the new program and experience, building a network of millions of WW members who can advocate for the program and create excitement during our winter recruitment season. We are also aiming to start building momentum ahead of our fall winter campaign with targeted pre-winter digital and social assets, launching prior to December 26. Food Program Innovation has historically been high member recruitment catalysts for WW with the launches of PointPlus, SmartPoints, Freestyle, and myWW, all driving significant growth. I will speak more about our winter season marketing plan shortly. But first, I will turn it over to Nick to discuss our operating performance in more detail.

Thank you, Mindy. I would like to provide more details on the performance of our global markets. As Mindy pointed out, we finished Q3 with 4.5 million subscribers, which fell short of our expectations as recruitment trends weakened further during the quarter. By the end of the quarter, we had 3.7 million digital subscribers, which is a 3% decline year-over-year. However, subscriptions for our premium interactive coaching and content service, Digital 360, grew from the previous quarter, reaching 240,000 subscribers at the end of Q3. We will keep optimizing and expanding this membership approach to grow and diversify our member base. Our end-of-period workshop subscribers were 763,000 in Q3, up from 748,000 in Q2; the year-over-year trends for workshop subscribers are stabilizing. It's important to note that most of our international markets have only recently started to reopen in-person workshops as local COVID restrictions have eased. We are making headway in optimizing this business and improved our workshop gross margin to 33% in Q3, with a goal to surpass 40% gross margin. Our workshop cost structure is now very flexible due to our realigned physical footprint. We are managing the in-person business with a smaller footprint supported by adaptable studio apps or third-party locations, ensuring that workshops are accessible to a large portion of the population, with approximately 90% of US households located within a 30-minute drive to a workshop. In 2021, we had around 430 WW branded studios in the US, down from roughly 800 before COVID. We plan to supplement these locations with approximately 650 new studio sites in the US, which will provide sufficient capacity for increased attendance in January. We will also keep evaluating studio profitability quarterly and adjust our workshop footprint accordingly to meet demand. Although recruitment trends have been tough this year as consumers deal with a slow and uncertain global recovery from COVID-19, our retention remains strong, indicating how much value our members see in the WW program, coaching, and community. Digital retention is stable at nearly 11 months, and workshop retention is improving sequentially each month, with overall member retention now around 10.5 months. Regarding our consumer products business, the decrease in digital member signups and traffic to our online shop has led to e-commerce sales falling short of our plan. Additionally, ongoing global supply chain challenges have affected the sales of some of our best-selling items. We do not expect our e-commerce business to exceed last year's revenue of approximately $80 million, but we still consider this channel an important growth opportunity. Workshop product sales in Q3 were slightly higher year-over-year. In 2022, we are focusing on boosting our consumer products revenue, believing we have a significant chance to capture a larger share of customer spending. We are investing in the app experience with integrated technologies to enhance product bundling, personalization, checkout, and post-purchase experiences to encourage additional and repeat purchases. Moreover, we are looking for opportunities to rebuild our licensing business by expanding our brand into product categories that are in demand from our members. For instance, through our new licensing partner in smoothies, our newly launched wine and bread products are available at nearly 400 Walmart stores across the United States. We have another brand partnership starting in January, with WW branding set to appear on packaging nationwide. Turning to our healthcare and diabetes business, we are facing similar recruitment challenges in our B2C business, which is also affecting the finance in our B2B to C channel. Additionally, the studio component of this business faced challenges in 2020. We now expect this segment to generate slightly under $40 million in revenue in 2021. We believe we have a solid foundation for growth and that introducing a dedicated WW offering tailored for people with diabetes will help expedite our efforts to expand this business. In summary, while our revenue performance in the third quarter did not meet our expectations, we have taken steps to adapt to the current operating environment. We are eager for the launch of our new program next week, which we anticipate will generate strong interest and signups from both new and existing members this winter. Now I will hand it over to Amy to discuss our financial performance and outlook.

Thank you, Nick. In Q3, we expected revenue to be down in the low single-digits with no workshop revenue headwinds offset by growth in digital. While digital revenue grew in the quarter compared to 2020, it did not grow with the weight that we expected. Digital recruitment trends versus last year worsened in Q3 compared to Q2, also driving lower revenue in e-commerce. The impact from revenue declines was offset by strong gross margin performance, the execution of our G&A cost savings initiatives, and an intentional shift of planned marketing investment into Q4. In Q3, total revenue of $293 million was down 9% year-over-year. While digital revenue was up 3% year-over-year, it did not offset the 20% decline in workshop revenue. We ended Q3 with 4.5 million subscribers, down 4% year-over-year, with digital subscribers down 3% and workshop subscribers down 11% year-over-year in the quarter. Adjusted gross margin was 62%, up approximately 270 basis points from the prior year, mostly as a result of digital revenue mix. In addition, gross margin in workshops improved year-over-year by over 600 basis points as a result of the cost reduction actions taken. Adjusted operating income of $88 million reflected lower than expected G&A in the quarter and the deliberate shift of marketing investments into Q4. The execution of our G&A cost reduction initiatives, as well as continued adjustments in our workshop footprint, resulted in $9 million of restructuring costs in the quarter, which was above our estimate of $8 million, incorporating the $0.09 negative impact of restructuring, which was offset by $0.02 of benefit from a change in tax valuation reserves. Q3 GAAP EPS was $0.65. Turning to our outlook for the full year 2021. While recruitment trends have proven difficult to predict in an uncertain environment, we wanted to provide you with an updated view of our expectations for the year. While we are focused on maximizing performance, the impact of the recruitment shortfall in Q3 will create a headwind in Q4. And we expect to end the year with subscribers down in the mid single-digits compared to 2020. We expect full year 2021 revenues to be modestly above $1.2 billion, down in the low double-digits with workshop revenue, while sequentially improving each quarter expected to be down nearly 40% for the full year. Digital revenue is expected to be up in the mid single-digits, consumer products and other revenue is expected to decline approximately 20% year-over-year. As a reminder, the revenue from the 2020 vision tour of approximately $16 million did not recur in 2021. Adjusted gross margin for the full year is expected to be approximately 61%, expanding 270 basis points from the prior year. We expect full year adjusted operating income to be in the range of $210 million to $220 million. GAAP EPS, which incorporates approximately $0.51 per share negative impacts from one-time items is expected to be in the range of $0.80 to $0.90. Related to capital structure and cash, at the end of Q3, we had approximately $188 million in cash and an undrawn revolver of $175 million. We ended the quarter with a net-debt-to-EBITDA leverage ratio of 4.3 times. Our full year interest expense is expected to be $88 million, which is down approximately $35 million from the prior year. Excluding the impact of restructuring charges on our P&L, we expect our full year effective tax rate to be approximately 22%. Capital expenditures, primarily driven by capitalized software, are anticipated to be in the $40 million range in 2021. Depreciation and amortization is expected to be approximately $48 million, including accelerated depreciation related to studio closures. In addition to continued investments in technology and digital product resources, which fuel the growth of the business, we will continue to evaluate the potential to acquire remaining franchise territories. In summary, while revenue did not meet our expectations, we are pleased that the diligent cost actions we have taken enabled us to deliver operating profits slightly ahead of our plan during the quarter while still prioritizing critical investments in innovation and marketing to drive profitable growth in 2022. Looking ahead, we expect to end 2021 with a year-over-year decline in subscribers, which given the nature of our subscription business model translates into a revenue headwind of approximately $25 million entering 2022. Note that this is only a starting point, before factoring in any benefit from expected member recruitment growth next year. While we are not providing 2022 revenue guidance today, given our upcoming new Food Program launch and our marketing plans for winter, our objective for next year is to deliver higher recruitment in this period, subscriber growth, increased revenue, and profitability. I will now turn the call back to Mindy.

Thanks, Amy. We believe our new Food Program Innovation is launching at just the right time. This powerful new innovation provides truly individualized plans, demonstrating exactly what WW does best: deliver clinically significant weight loss through a livable sustainable program where members are inspired and supported by a community of members and coaches. We believe the combination of this new program and the traditional New Year's reset moment will spark increased interest in WW as consumers recommit to their health and wellness during the important winter season and drive significant member recruitment in 2022. Our winter marketing campaign will highlight how our new program is our most advanced ever and fits easily into your life because it is designed uniquely for you, allowing you to live the life you love and lose the weight you want. Cindy Gustafson, our Chief Marketing Officer, and I were just in California last week for the filming of our US winter campaign assets with Oprah Winfrey and James Corden. Just as the scale and scope of the Food Program innovation is unprecedented, so is the array of marketing assets we will be deploying this winter. In TV and digital, Oprah and James will be amplifying the new program, highlighting what makes WW different and motivating others to join WW and commit to their health and well-being for weight loss. The advertising campaign will also feature a diverse and inspiring group of member ambassadors sharing their authentic stories and successes with the new program. In addition to being featured in select digital marketing assets, our talented and aspirational Digital 360 coaches will utilize their social media platforms and followings to drive engagement and conversation about the new Food Program at WW across all membership types. In addition, they will be highlighting our industry-first interactive coaching and content experience, Digital 360, which is delivering WW in a modern way. These messages and strong call to action will be adapted to our international markets in multi-platform campaigns across linear TV and streaming, digital, social, PR, and search. We will utilize a mix of high-performing offers to appeal to a broad range of new and existing members, emphasizing longer-term commitments which maximize subscription lifetime value. In addition, we're further optimizing our website and app store presence to remove friction, highlight value, and drive conversion. In summary, while the pandemic environment made consumer behavior difficult to predict in 2021, we believe we have the right playbook to drive profitable growth in 2022. As we have seen with past Food Program innovations, we are confident that this revolutionary new program will resonate with both current and former members alike, create excitement in the category, and demonstrate our competitive advantages as we deliver a proven science-based program through an award-winning app with coaching, content, and community. Thank you for joining us today. And we're now happy to take your questions.

We’ll now begin the question-and-answer session. The first question is from Alex Berman of Craig-Hallum. Please go ahead.

Great. Thank you very much for taking my question.

Hi, Alex.

I'm interested in the shortfall in digital revenue. It seems to be a decrease compared to three months ago when you reported the last quarter. The reopening of the economy may not have progressed as quickly as we all expected. Is that one of the reasons why digital weight loss programs have struggled in the third quarter? I'm curious if the industry has experienced a slowdown in the past couple of months.

Yeah. So if you look at the trajectory, what we saw throughout the year in terms of consumer behavior change, which related to performance. So Q1, we came out feeling positive based on both the qualitative and quantitative evidence that we saw, as well as the digital signups, which is why we articulated where we thought we were going to go. When we got into Q2, after the early part, we started to see a fairly dramatic shift in what we were seeing from everything from search trends to what we were hearing from consumers. And it was pretty consistent across markets. And it really was, as you said, people saying this isn't what I want to do right now. I have been through a lot, and this is not what I'm going to focus on at the moment. And it really started, I think we said, like after the first few weeks of Q2. And so, what we've been trying to do is navigate as effectively as possible, really look at the pulse points. And yes, Q3 was softer than we had anticipated, which is why the team was incredibly nimble in managing both our costs and making strategic decisions on where our marketing spend was going to go, particularly in Q4 because of how strongly we felt about the upcoming innovation. And the reason is that, we've been articulating our perspective on why we have such confidence in that is yes. The program itself is something we can truly scream from the rooftops is new and never has been done before. But what we've already seen, if you look at 2016, 2018, and 2022, 2016 we saw 28% growth in signups because of the winter innovation, 2018, 42%, and in 2020 before the COVID lockdown, 30%. And I think that combined with what we're seeing as again, early green shoots in terms of what we're hearing from consumers and what we're seeing is that the combination of the program, the timing, and going into the winter season is what we have the confidence in for growth in 2022.

Great. That’s really helpful. Thanks, Mindy, and looking forward to seeing the details of the new innovations.

The next question is from Spencer Hanus of Wolfe Research. Please go ahead.

Great, Thank you, guys. Last quarter, you talked about some wellness fatigue among your consumers. Are you seeing that sentiment start to reverse at all as you look into Q4 and then into 2022? And then, are you seeing any impact from competitors that are doing significant fundraising over the last few months and also doing incremental marketing spending as well?

Could you please repeat that? It was difficult to hear.

Yeah. So could you just talk about what you're seeing among consumers? Last quarter, you talked about wellness fatigue and that being a headwind to subscriber growth, but you're seeing that sentiment starting to reverse? And then, as you look at the competitive environment out there, has there been any impact from a lot of your peers who have been raising money in players like Neom? And have they done that over the last few months?

Yeah, so I'll give you a perspective. I mean, we obviously do a lot of qualitative research, and I think I used the expression green shoots. We intentionally took a conservative approach to Q4 because of the level of uncertainty we still feel exists. So, we don't want to get ahead of ourselves in any way. And we weren't really focused on the launch. So that's how I would describe that. As it relates to the competition, clearly there is significant competition, but across more than weight loss competitors, who have had a lot of fitness demand and competition, et cetera. And so from our perspective, what we're doing is looking at product performance, marketing perspective, maximizing every dollar of our spend going into winter. And I think you heard me before say we reallocated spend so we could be as strong as possible, particularly leading up to and then when our big campaign launches, December 26, and really leveraging our investors, our influencers and really creating as much conversation. The other thing that we look forward to is, when we do have a launch of something like this to such a degree, the initial focus is on our existing members because we effectively really utilize them for significant word of mouth to start building momentum going into the winter season. And this is a very kind of breakthrough and engaging where we do see where we're going to have conversation. So what we're actually going to do is, allocate some resources even before the big launch on December 26 to start building momentum.

Got it. That's helpful. And then Mindy, could you just comment on how you're preparing the business for the eventual change in leadership? And has it had any impact on how you guys are planning for the 2022 diabetes initiative or just getting the organization ready?

Yeah. We have incredible talent in this organization, and I think I've said this before. The purpose-driven factor of what we are doing to impact people's lives every day is a very galvanizing mission as is growing the business and performing; it's very important to the team. I'm not leaving immediately. It's important to me, as well as the team, that we ensure the transition is as effective as possible. And I can absolutely say that the organization and what they've accomplished for this launch is beyond anything I've seen, and I don't expect that to change.

Yeah. Got it. That's helpful. Thank you.

The next question is from Ed Yruma of KeyBanc. Please go ahead.

Hi, this is Samantha on for Ed. So my first question is, what were the incremental headwinds in Q3 that caused digital revenue growth to fall short of expectations and decline versus Q2? And any of these headwinds prolonged into Q4?

As I mentioned earlier, we were cautious about Q4 due to the challenges we faced in Q3, especially on the digital side. The workshop side has seen some improvement, but it's still significantly lower compared to last year because there are markets where we haven't opened our workshops yet. This is an important consideration. Additionally, we've intentionally kept our fourth-quarter plans modest concerning the innovation launch, as we want to maintain a level of conservatism, even though we are enthusiastic about the potential opportunities.

And I would just add, Samantha, as well, that the subscriber trends, the recruitment trends in Q3 really drove the revenue shortfall. Remember, in a subscription-based business model, those revenue impacts carry into Q4. For Q4, we further reduce our forecasts and at this point, we took an approach to just reset our expectations to Q3 trends, which performed a bit worse than in Q2. And so that's what you're seeing carried into Q4.

Yes. Looking particularly in September, which is why it was good to see how quickly the team nimbly reacted to shift marketing resources into Q4.

Got it. Thanks. That's all for me. Thanks, guys.

The next question is from Lauren Schenk of Morgan Stanley. Please go ahead.

Hey, this is Nathan Feather on for Lauren. Can you just talk through a little bit more detail what you're seeing in the marketing environment? Was there any impact from IDFA within the quarter? And then given the kind of headwinds you've seen there, how is it impacting how you're thinking about the 2022 Food Plan innovation and marketing plans?

Hey, Nathan. We couldn't hear you. Was there any impact from what we missed in that part of the question?

Yes. Any impact from IDFA, the Apple privacy changes?

Okay. That really does play into a factor in what we're doing. I would say that our winter plans are incredibly comprehensive, both from a channel point of view of assets and strategy, et cetera. I think I mentioned in my comments that I was out in California for the tire shoot last week. And I can say that I think it's beyond what we've done; it's very comprehensive. And obviously, we did have some challenges over the past kind of 18 months because COVID was really being able to bring a lot of our assets creatively to life, because we use real people, we use real numbers. We use them in an environment. We use the power of Oprah, the power of James. And so this really enabled us to bring everyone together and create a different dynamic across what will ultimately be able to use across all our channels.

The next question is from Michael Lasser of UBS. Please go ahead.

Hey, Michael.

Hi. This is Mike Short on for Michael Lasser. Thanks for taking our question.

Hey, Michael.

We've heard a lot about industry-wide pressures. Are there any company-specific challenges that you think they'll be faced in the last quarter that impacted results? And as the rebranding from Weight Watchers to WW, has it had any impact?

What's interesting about this situation is that it's been crucial for us as we rebranded from 'Weight Watchers' to WW. We've clearly defined who we are as a brand, focusing not only on being the leader in science-based weight loss but also on a holistic wellness approach that emphasizes long-term sustainable behavior change. This shift has positively influenced our recognition and perception among a wider audience. I wouldn't attribute our challenges to our brand's position; rather, I see them as an opportunity moving forward, especially given that we offer much more than just a linear product. Regarding the competitive landscape, we actively monitor all areas of competition and are aware of industry trends. While there may be some lingering issues, we believe that any short-term pressure we are experiencing will ease as we move into winter.

Thank you.

The next question is from Stephanie Wissink of Jefferies. Please go ahead.

Hey, it's Chris standing in for Steph. I apologize for bringing this up again, but you mentioned previously that the decline in subscribers over the last few quarters might be linked to people not prioritizing wellness right now. This seems like an important point to highlight. My question is, do you feel better positioned to regain or reactivate those subscribers, especially with the upcoming innovation launch, as they start to refocus on wellness? Additionally, could you clarify how you're planning for growth coming from existing versus new subscribers?

That’s a good question. To provide some context, during a significant innovation year, such as what we experienced in 2020—when COVID shifted our perspective—we typically notice a substantial increase in both lapsed and new members, which is why we often see a rise in workshop signups. This year, we believe there is also an opportunity to bring back lapsed digital members and encourage them to upgrade to D360 for a more premium coach-led experience. We are intensely focused on our strategy for re-engaging lapsed members and ensuring they are matched with the appropriate membership vertical for their needs upon their return. Additionally, we aim to attract new members and pair them with the right membership option as well. Our pre-assessment process helps us align members with a food program tailored to them, as well as the membership vertical that suits them best. This approach is more comprehensive than anything we have previously implemented.

That's super helpful, Mindy. Thank you.

This concludes our question-and-answer session. I would like to turn the conference back over to Mindy Grossman for closing remarks.

Thank you. And thanks, everyone, for being here today. Great to talk to you. We're clearly looking forward to the announcement of the Food Program innovation on Monday and can't wait to share all the details. But I want to thank our global teams for all their incredible work and its development from science, human truths, from operations to technology, digital product to marketing, content coaching. The cross-functional effort that has to go into the creation of a Food Program like this and bringing it to life is unparalleled. And it truly showcases the competitive advantage of WW with our proven program based on efficient and behavior change science. So we're confident that this program will resonate with consumers, create excitement, expand our global impact, and most importantly, provide a trajectory for profitable growth in 2022 and beyond. I'm very much looking forward to sharing more with you at our virtual event on November 18. And I hope you'll all join us, so thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.