The Beachbody Company, Inc. (NYSE:BODI) Q1 2024 Earnings Call Transcript

Marc Suidan: There’s three factors contributing to this. One is obviously seasonality. If you look at prior years, similar midpoint occurred quarter-over-quarter. Number two, we did say we’re heavily focused on balance sheet fortification. So we’re looking at improving our liquidity so that before we get back into investment mode to drive growth. And number three, listen, we’ve detailed out quite a few initiatives that are going to drive some healthy new revenues but these initiatives just take time to implement, right? And that’s why we created a cost structure that gives us the runway to implement our initiatives.

Mark Goldston: But it’s also really important, BJ, to keep in mind, because, yes, we’ve had two consecutive quarters of positive adjusted EBITDA. Yes, we have the free cash flow positive in this quarter, but we’re still in the turnaround. I mean, we’re ahead of the schedule where we thought we’d be but we’re still in the maximize the balance sheet, maximize expense efficiency mode. We have these programs in the pipeline and they will start to come [indiscernible] in the second half of the year, third quarter and fourth quarter. But just keep in mind the fact that while we’ve been successful and we’re thrilled with where we are, we’re still in the turnaround. And so we’re going to continue to manage it that way as we move towards the second half of the year.

Operator: Thank you all for your questions. That will be all the questions we have in queue currently. So I will pass the conference back over to Carl for any closing remarks.

Carl Daikeler: Great. Yes, thanks so much. I’ll just close by saying I’m so excited about our progress and what we’ve been learning about our current customer needs and our ability now to respond with exactly what they’re looking for, thanks to the launch of single digital program purchases plus special digital subscription offers and these refined supplement marketing bundles that Mark’s talking about. I feel like we’re frankly back to our wheelhouse that served the company so well for the last 25 years. And just extremely grateful to our stakeholders and to the team for all the support of our long-term objective of sustained profitability and helping more people achieve their goals and lead healthy fulfilling lives. Thanks for joining us and we’ll talk to you next quarter.

Operator: That will conclude today’s conference call. Thank you all for your participation. You may now disconnect your lines.