WW International, Inc. (NASDAQ: WW) (“WeightWatchers,” “WW,” or the
“Company”) today announced its results for the fourth quarter and
full year fiscal 2024 ended December 28, 2024, and announced that
the Company’s Board of Directors named Interim President and Chief
Executive Officer, Tara Comonte, to a permanent role as President
and Chief Executive Officer, effective February 26, 2025.
"We are pleased with the momentum in our Clinical business in
the Fourth Quarter, reflecting the increasing demand for
comprehensive weight management solutions. As more people seek
sustainable approaches—including those using or transitioning off
medication—our unique combination of science-backed behavioral
support, clinical care, and engaged global community allows us to
deliver the right solutions at the right time. I am grateful for
the Board’s trust in me to lead WeightWatchers through this next
phase, and I look forward to building on our progress, working
alongside our incredible team, and driving meaningful impact for
our members," said Tara Comonte, President and CEO.
"At the same time, WeightWatchers is in a period of significant
transition as we navigate industry shifts and reposition our
business for long-term growth. For more than six decades, we have
led innovation in weight management, continuously evolving to meet
the changing needs of our members. While we see clear opportunities
ahead, executing on them will require careful prioritization as we
balance investment in growth with the realities of our capital
structure."
"I’m excited to join WeightWatchers at this pivotal time," said
Felicia DellaFortuna, CFO. "In Q4, we continued to demonstrate
disciplined and strategic cost management, which not only drove our
year-over-year improvement in Q4’24 Adjusted EBITDAS, but also
keeps us on track to achieve our $100 million run-rate cost savings
target by the end of 2025. As we look ahead, our focus remains on
strengthening our financial foundation to position WeightWatchers
for sustained, long-term success."
Fourth Quarter 2024 Consolidated Results
|
|
|
|
|
|
% Change |
|
% ChangeAdjusted
forConstantCurrency(1) |
|
|
Three Months Ended |
|
|
|
|
December 28, 2024 |
|
December 30,2023 |
|
|
| (in millions except
percentages and per share amounts) |
|
|
|
|
|
|
|
|
Subscription Revenues, net |
$181.7 |
|
|
$196.1 |
|
|
(7.3 |
%) |
|
(7.2 |
%) |
|
Other Revenues, net(2) |
2.7 |
|
|
9.9 |
|
|
(72.8 |
%) |
|
(72.8 |
%) |
| Revenues,
net |
$184.4 |
|
|
$206.0 |
|
|
(10.5 |
%) |
|
(10.4 |
%) |
| Gross
Profit |
$128.5 |
|
|
$124.9 |
|
|
2.9 |
% |
|
3.0 |
% |
| Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
Net Restructuring Charges(3) |
(1.1 |
) |
|
1.5 |
|
|
|
|
|
| Adjusted Gross
Profit(1) |
$127.4 |
|
|
$126.4 |
|
|
0.8 |
% |
|
0.9 |
% |
| Operating Income
(Loss) |
$36.2 |
|
|
($6.0 |
) |
|
(100.0 |
%)* |
|
(100.0 |
%)* |
| Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
Franchise Rights Acquired and Goodwill Impairments |
- |
|
|
3.6 |
|
|
|
|
|
|
Net Restructuring Charges(3) |
0.7 |
|
|
23.6 |
|
|
|
|
|
| Adjusted Operating
Income(1) |
$36.9 |
|
|
$21.3 |
|
|
73.5 |
% |
|
73.8 |
% |
| Net Income
(Loss) |
$25.1 |
|
|
($88.1 |
) |
|
(100.0 |
%)* |
|
(100.0 |
%)* |
| EPS |
$0.31 |
|
|
($1.11 |
) |
|
(100.0 |
%)* |
|
(100.0 |
%)* |
| Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
|
|
Franchise Rights Acquired Impairments |
- |
|
|
0.05 |
|
|
|
|
|
|
|
|
Net Restructuring Charges(3) |
0.01 |
|
|
0.22 |
|
|
|
|
|
|
|
| Adjusted
EPS(1) |
$0.32 |
|
|
($0.84 |
) |
|
(100.0 |
%)* |
|
(100.0 |
%)* |
|
Total Paid Weeks |
45.5 |
|
|
50.4 |
|
|
(9.9 |
%) |
|
N/A |
|
Digital(4) Paid Weeks |
37.6 |
|
|
41.0 |
|
|
(8.3 |
%) |
|
N/A |
|
Workshops + Digital(5) Paid Weeks |
6.8 |
|
|
8.7 |
|
|
(22.3 |
%) |
|
N/A |
|
Clinical(6) Paid Weeks |
1.1 |
|
|
0.7 |
|
|
53.3 |
% |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
| End of Period
Subscribers(7) |
3.3 |
|
|
3.8 |
|
|
(12.2 |
%) |
|
N/A |
|
Digital Subscribers |
2.7 |
|
|
3.1 |
|
|
(11.0 |
%) |
|
N/A |
|
Workshops + Digital Subscribers |
0.5 |
|
|
0.7 |
|
|
(22.7 |
%) |
|
N/A |
|
Clinical Subscribers |
0.1 |
|
|
0.1 |
|
|
37.8 |
% |
|
N/A |
|
___________________________________Note: Totals may not sum due to
rounding. *Note: Percentage in excess of 100.0% and not
meaningful(1) See “Reconciliation of Non-GAAP Financial Measures”
attached to this release for further detail on adjustments to GAAP
financial measures.(2) “Other Revenues, net” (formerly known as
“Product Sales and Other, net”) consist of revenues from licensing,
franchise fees with respect to commitment plans and royalties,
publishing and other revenues. Prior to fiscal 2024, “Other
Revenues, net” included sales of consumer products.(3) See
“Reconciliation of Non-GAAP Financial Measures” attached to this
release for further detail on the Company’s previously disclosed
2024, 2023, and 2022 restructuring plans, and the reversal of
certain of the charges associated therewith.(4) “Digital” refers to
providing subscriptions to the Company’s digital product
offerings.(5) “Workshops + Digital” refers to providing
subscriptions for unlimited access to the Company’s workshops
combined with the Company’s digital subscription product
offerings.(6) “Clinical” refers to providing subscriptions to the
Company’s clinical product offerings provided by WeightWatchers
Clinic (formerly referred to as Sequence) combined with the
Company’s digital subscription product offerings and unlimited
access to the Company’s workshops.(7) “Subscribers” refers to
Digital subscribers, Workshops + Digital subscribers, and Clinical
subscribers who participate in recurring bill programs in
Company-owned operations. |
Q4 2024 Financial Highlights
- End of Period Subscribers in Q4 2024 were 3.3
million, down 12.2% versus the prior year period, driven by
declines in the Digital and Workshops + Digital businesses. End of
Period Clinical Subscribers of 92 thousand increased 37.8% versus
the prior year period.
- Total Paid Weeks in Q4 2024 were down 9.9%
versus the prior year period, driven by declines in the Digital and
Workshops + Digital businesses. The decline in Total Paid Weeks was
partially offset by growth in Clinical Paid Weeks, which increased
53.3%.
- Revenues in Q4 2024 were $184.4 million. On a
constant currency basis, Q4 2024 revenues decreased 10.4% versus
the prior year period.
- Subscription Revenues in Q4 2024 were $181.7
million. On a constant currency basis, these revenues decreased
7.2% versus the prior year period primarily driven by lower
recruitments and incoming subscribers in the Company’s non-Clinical
businesses. Subscription Revenues benefited from $20.5 million of
Clinical Subscription Revenues, which increased 57.9% versus the
prior year period. Additionally, Subscription Revenues were
negatively impacted by the continued mix shift from the Workshops +
Digital business to the Digital business and a higher mix of
non-Clinical Subscribers within their initial, lower-priced
commitment periods.
- Other Revenues in Q4 2024 were $2.7 million.
On a constant currency basis, these revenues decreased 72.8% versus
the prior year period driven by the closure of the consumer
products business at the end of fiscal 2023.
- Gross Profit in Q4 2024 was $128.5 million,
compared to $124.9 million in the prior year period.
Adjusted Gross Profit, which excluded the net
reversal of $1.1 million of restructuring charges related to prior
years, was $127.4 million. Adjusted Gross Profit in Q4 2023, which
excluded the net impact of $1.5 million of restructuring charges,
was $126.4 million.
- Gross Margin in Q4 2024 was 69.7%, compared to
60.6% in the prior year period. Adjusted Gross
Margin in Q4 2024 was 69.1%, up from 61.4% in the prior
year period, driven primarily by actions to reduce the fixed cost
base within the Workshops + Digital business and the closure of the
lower margin consumer products business at the end of fiscal
2023.
- Operating Income in Q4 2024 was $36.2 million,
compared to an Operating Loss of $6.0 million in the prior year
period. Adjusted Operating
Income, which excluded the net impact of $0.7 million of
restructuring charges, was $36.9 million and benefited from the
Company’s previously announced cost savings initiatives. Adjusted
Operating Income in Q4 2023, which excluded the net impact of $23.6
million of restructuring charges and non-cash intangible impairment
charges of $3.6 million, was $21.3 million.
- Income Tax Benefit in Q4 2024 was $11.7
million, which reflected the impact of a valuation allowance on the
Company’s full year fiscal 2024 financials. In the prior year
period, income tax expense was $57.6 million.
- Net Income in Q4 2024 was $25.1 million
compared to a Net Loss of $88.1 million in the prior year period.
Adjusted EBITDAS in Q4 2024 was $50.4 million
compared to $33.5 million in the prior year period as a result of
previously announced cost savings initiatives. Q4 2024 Adjusted
EBITDAS margin was 27.4% compared to 16.3% in the prior year period
and the highest since the third quarter of 2022.
- Diluted Earnings Per Share in Q4 2024 was
$0.31 compared to Diluted Net Loss Per Share of $1.11 in the prior
year period. Q4 2024 Adjusted Earnings Per Share,
which excluded $0.01 net impact of restructuring charges, was
$0.32. In the prior year period, Adjusted Net Loss Per Share, which
excluded $0.22 of net impact of restructuring charges and $0.05 of
non-cash intangible impairment charges, was $0.84.
- Additionally, certain other items affected year-over-year
comparability:
- In Q4 2024, $0.28 per diluted share positive tax impact arising
from the impact of a valuation allowance on the Company’s full year
fiscal 2024 financials.
- In Q4 2023, $0.78 per diluted share negative tax impact due to
an increase in the valuation allowance to offset all U.S. deferred
tax assets due to the uncertainty of realizing future tax benefits
of the assets.
Full Year Fiscal 2024 Consolidated Results
|
|
|
|
|
|
% Change |
|
% Change Adjusted for
Constant Currency(1) |
|
|
Twelve Months Ended |
|
|
|
|
December 28,2024 |
|
December 30,2023 |
|
|
| (in millions except
percentages and per share amounts) |
|
|
|
|
|
|
|
|
Subscription Revenues, net |
$777.0 |
|
|
$822.8 |
|
|
(5.6 |
%) |
|
(5.6 |
%) |
|
Other Revenues, net(2) |
8.9 |
|
|
66.8 |
|
|
(86.6 |
%) |
|
(86.7 |
%) |
| Revenues,
net |
$785.9 |
|
|
$889.6 |
|
|
(11.6 |
%) |
|
(11.7 |
%) |
| Gross
Profit |
$533.1 |
|
|
$529.3 |
|
|
0.7 |
% |
|
0.6 |
% |
| Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
Net Restructuring Charges(3) |
5.0 |
|
|
21.2 |
|
|
|
|
|
| Adjusted Gross
Profit(1) |
$538.1 |
|
|
$550.5 |
|
|
(2.2 |
%) |
|
(2.3 |
%) |
| Operating (Loss)
Income |
($236.2 |
) |
|
$22.3 |
|
|
(100.0 |
%)* |
|
(100.0 |
%)* |
| Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
|
Franchise Rights Acquired and Goodwill Impairments |
315.0 |
|
|
3.6 |
|
|
|
|
|
|
|
Net Restructuring Charges(3) |
22.2 |
|
|
54.9 |
|
|
|
|
|
|
|
Former CEO Separation Expenses |
3.9 |
|
|
- |
|
|
|
|
|
|
|
Acquisition Transaction Costs |
- |
|
|
8.6 |
|
|
|
|
|
|
| Adjusted Operating
Income(1) |
$104.8 |
|
|
$89.5 |
|
|
17.2 |
% |
|
16.7 |
% |
| Net Loss |
($345.7 |
) |
|
($112.3 |
) |
|
100.0 |
%* |
|
100.0 |
%* |
| EPS |
($4.34 |
) |
|
($1.46 |
) |
|
100.0 |
%* |
|
100.0 |
%* |
| Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
Franchise Rights Acquired Impairments |
3.69 |
|
|
0.05 |
|
|
|
|
|
|
Net Restructuring Charges(3) |
0.21 |
|
|
0.54 |
|
|
|
|
|
|
Former CEO Separation Expenses |
0.04 |
|
|
- |
|
|
|
|
|
|
Acquisition Transaction Costs |
- |
|
|
0.10 |
|
|
|
|
|
| Adjusted
EPS(1) |
($0.41 |
) |
|
($0.78 |
) |
|
(46.9 |
%) |
|
(46.4 |
%) |
|
Total Paid Weeks |
196.6 |
|
|
207.2 |
|
|
(5.1 |
%) |
|
N/A |
|
Digital(4) Paid Weeks |
162.3 |
|
|
167.9 |
|
|
(3.3 |
%) |
|
N/A |
|
Workshops + Digital(5) Paid Weeks |
30.1 |
|
|
37.7 |
|
|
(20.3 |
%) |
|
N/A |
|
Clinical(6) Paid Weeks |
4.2 |
|
|
1.6 |
|
|
164.1 |
% |
|
N/A |
|
|
|
|
|
|
|
|
|
|
___________________________________ Note: Totals may not sum due to
rounding. *Note: Percentage in excess of 100.0% and not
meaningful(1) See “Reconciliation of Non-GAAP Financial Measures”
attached to this release for further detail on adjustments to GAAP
financial measures.(2) “Other Revenues, net” (formerly known as
“Product Sales and Other, net”) consist of revenues from licensing,
franchise fees with respect to commitment plans and royalties,
publishing and other revenues. Prior to fiscal 2024, “Other
Revenues, net” included sales of consumer products.(3) See
“Reconciliation of Non-GAAP Financial Measures” attached to this
release for further detail on the Company’s previously disclosed
2024, 2023, 2022, 2021, and 2020 restructuring plans, and the
reversal of certain of the charges associated therewith.(4)
“Digital” refers to providing subscriptions to the Company’s
digital product offerings.(5) “Workshops + Digital” refers to
providing subscriptions for unlimited access to the Company’s
workshops combined with the Company’s digital subscription product
offerings.(6) “Clinical” refers to providing subscriptions to
the Company’s clinical product offerings provided by WeightWatchers
Clinic (formerly referred to as Sequence) combined with the
Company’s digital subscription product offerings and unlimited
access to the Company’s workshops. |
Full Year Fiscal 2024 Financial Highlights
- Total Paid Weeks in fiscal 2024 were down 5.1%
versus the prior year driven by declines in the Digital and
Workshops + Digital businesses. The decline in Total Paid Weeks was
partially offset by growth in Clinical Paid Weeks, which increased
164.1%.
- Revenues in fiscal 2024 were $785.9 million.
On a constant currency basis, fiscal 2024 revenues decreased 11.7%
versus the prior year. The decline in Revenues was primarily driven
by recruitment challenges in the Digital and Workshops + Digital
businesses as well as the decline in Other Revenues from the
closure of the consumer products business in fiscal 2023. These
declines were partially offset by growth in the Clinical business.
- Gross Profit in fiscal 2024 was $533.1
million, compared to $529.3 million in the prior year.
Adjusted Gross Profit, which excluded the net
impact of $5.0 million of restructuring charges, was $538.1
million. Adjusted Gross Profit in fiscal 2023, which excluded the
net impact of $21.2 million of restructuring charges, was $550.5
million.
- Gross Margin in fiscal 2024 was 67.8%,compared
to 59.5% in the prior year. Adjusted Gross Margin
in fiscal 2024 was 68.5%, up from 61.9% in the prior year. Adjusted
Gross Margin benefited from the cost actions taken to reduce the
fixed cost base within the Workshops + Digital business as well as
the closure of the lower margin consumer products business at the
end of fiscal 2023.
- Operating Loss in fiscal 2024 was $236.2
million, compared to Operating Income of $22.3 million in the prior
year. Adjusted Operating Income,
which excluded $315.0 million of non-cash intangible impairment
charges, the net impact of $22.2 million of restructuring charges,
and $3.9 million of former CEO separation expenses, was $104.8
million. Adjusted Operating Income in fiscal 2023, which excluded
the net impact of $54.9 million of restructuring charges, $8.6
million of acquisition transaction costs, and $3.6 million of
non-cash intangible impairment charges, was $89.5
million.
- Income Tax Expense in fiscal 2024 was $0.5
million, which reflected the impact of a valuation allowance on the
Company’s full year fiscal 2024 financials. In the prior year,
income tax expense was $38.6 million.
- Net Loss in fiscal 2024 was $345.7 million
compared to Net Loss of $112.3 million in the prior year.
Adjusted EBITDAS in fiscal 2024 was $149.3 million
compared to Adjusted EBITDAS of $146.4 million in the prior
year.
- Diluted Net Loss Per Share in fiscal 2024 was
$4.34 compared to Diluted Net Loss Per Share of $1.46 in the prior
year. Fiscal 2024 Adjusted Net Loss Per Share,
which excluded $3.69 of non-cash intangible impairment charges,
$0.21 of net impact of restructuring charges, and $0.04 of former
CEO separation expenses, was $0.41. In the prior year, Adjusted Net
Loss Per Share, which excluded $0.54 of net impact of restructuring
charges, $0.10 of acquisition transaction costs, and $0.05 of
non-cash intangible impairment charges, was $0.78.
- Additionally, certain other items affected year-over-year
comparability:
- In fiscal 2024, $0.12 per diluted share negative tax impact
arising from the impact of a valuation allowance on the Company’s
full year fiscal 2024 financials.
- In fiscal 2023, $0.66 per diluted share negative tax impact due
to an increase in the valuation allowance to offset all U.S.
deferred tax assets due to the uncertainty of realizing future tax
benefits of the assets.
Other Items
- Cash and cash equivalents balance as of
December 28, 2024 was $53.0 million.
Full Year Fiscal 2025 Guidance
- The Company is not providing full year fiscal 2025 guidance at
this time.
Fourth Quarter and Full Year Conference Call and
WebcastThe Company has scheduled a conference call today
at 5:00 p.m. ET. During the conference call, Company
management will discuss the fourth quarter and full year fiscal
2024 results and answer questions from the investment
community.
The live webcast of the conference call will be available on the
Company’s corporate website, corporate.ww.com, under Events and
Presentations. Supplemental investor materials will also be
available in the same location prior to the start of the webcast. A
replay of the webcast will be available on this site for
approximately 90 days.
Statement regarding Non-GAAP Financial Measures
The following provides information regarding non-GAAP financial
measures used in this earnings release and today’s scheduled
conference call:
To supplement the Company's consolidated results presented in
accordance with accounting principles generally accepted in the
United States (“GAAP”), the Company has disclosed non-GAAP
financial measures of operating results that exclude or adjust
certain items. Gross profit, gross margin, operating (loss) income,
operating (loss) income margin, net income (loss), net income
(loss) margin, diluted (net loss) earnings per share, and selling,
general and administrative expenses are discussed both as reported
(on a GAAP basis) and as adjusted (on a non-GAAP basis) to exclude,
as applicable in a given period: (a) the net impact of the
Company’s previously disclosed restructuring plans; (b) the impact
of impairment charges for the Company's franchise rights acquired
and goodwill; and (c) certain non-recurring costs and adjustments
that management believes should be excluded as these do not relate
to a recurring part of the core business operations, including
acquisition transaction costs and former CEO separation expenses.
The Company also presents in the attachments to this release the
non-GAAP financial measures: earnings before interest, taxes,
depreciation, amortization and stock-based compensation (“EBITDAS”)
and EBITDAS margin; EBITDAS as further adjusted for the items
described above (“Adjusted EBITDAS”) and Adjusted EBITDAS margin;
total debt less unamortized deferred financing costs, unamortized
debt discount and cash on hand (i.e., net debt); and a net
debt/Adjusted EBITDAS ratio. In addition, the Company presents
certain of its financial results on a constant currency basis in
addition to GAAP results. Constant currency information compares
results between periods as if exchange rates had remained constant
period-over-period. The Company calculates constant currency by
calculating current-year results using prior-year foreign currency
exchange rates. Management believes these non-GAAP financial
measures provide useful supplemental information for its and
investors' evaluation of the Company's business performance and are
useful for period-over-period comparisons of the performance of the
Company's business. While management believes that these non-GAAP
financial measures are useful in evaluating the Company’s business,
this information should be considered as supplemental in nature and
is not meant to be considered in isolation or as a substitute for
the related financial information prepared in accordance with GAAP.
In addition, these non-GAAP financial measures may not be the same
as similarly titled measures reported by other companies. See
"Reconciliation of Non-GAAP Financial Measures" attached to this
release and reconciliations, if any, included elsewhere in this
release for a reconciliation of the non-GAAP financial measures to
the most directly comparable GAAP measures.
About WW International, Inc. WeightWatchers is
a global leader in science-backed weight management, providing an
accessible, holistic model of care through our #1
doctor-recommended Points® Program, clinical interventions
including weight-loss medications, and community support. Since
1963, we have empowered our millions of members to build healthy
habits to live longer lives. Our innovative, trusted spectrum of
solutions provides members with the tools and resources they need
to reach and sustain their goals wherever they are on their
journey. To learn more visit weightwatchers.com or
corporate.ww.com.
This news release and any attachments include “forward-looking
statements,” within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including, in particular, any statements
about the Company’s plans, strategies, objectives, initiatives, and
prospects. The Company generally uses the words “may,” “will,”
“could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,”
“intend,” “aim” and similar expressions in this news release and
any attachments to identify forward-looking statements. The Company
bases these forward-looking statements on its current views with
respect to future events and financial performance. Actual results
could differ materially from those projected in the forward-looking
statements. These forward-looking statements are subject to risks,
uncertainties and assumptions, including, among other things:
competition from other weight management and health and wellness
industry participants or the development of more effective or more
favorably perceived weight management methods; the Company's
failure to continue to retain and grow its subscriber base; the
Company’s ability to be a leader in the rapidly evolving and
increasingly competitive clinical weight management and weight loss
market; the Company's ability to continue to develop new,
innovative services and products and enhance its existing services
and products or the failure of its services, products or brands to
continue to appeal to the market, or its ability to successfully
expand into new channels of distribution or respond to consumer
trends or sentiment; regulatory, reputational and other risks
associated with the Company’s new compounded GLP-1 offering; the
ability to successfully implement strategic initiatives; the
Company’s ability to evolve its community offerings to meet the
evolving tastes and preferences of its members; the effectiveness
and efficiency of the Company's advertising and marketing programs,
including the strength of the Company's social media presence; the
impact on the Company's reputation of actions taken by its
franchisees, licensees, suppliers, affiliated provider entities,
PCs’ healthcare professionals, and other partners, including as a
result of its acquisition of Weekend Health, Inc., doing business
as Sequence (“Sequence”) (the “Acquisition”); the recognition of
asset impairment charges; the loss of key personnel, strategic
partners or consultants or failure to effectively manage and
motivate the Company's workforce; the Company’s chief executive
officer transition; the Company’s ability to successfully make
acquisitions or enter into collaborations or joint ventures,
including its ability to successfully integrate, operate or realize
the anticipated benefits of such businesses, including with respect
to Sequence; uncertainties related to a downturn in general
economic conditions or consumer confidence, including as a result
of the existing inflationary environment, rising interest rates,
the potential impact of political and social unrest and increased
volatility in the credit and capital markets; the seasonal nature
of the Company's business; the Company's failure to maintain
effective internal control over financial reporting; the impact of
events that impede accessing resources or discourage or impede
people from gathering with others; the early termination by the
Company of leases; the inability to renew certain of the Company's
licenses, or the inability to do so on terms that are favorable to
the Company; the impact of the Company's substantial amount of
debt, debt service obligations and debt covenants, and its exposure
to variable rate indebtedness; the ability to generate sufficient
cash to service the Company's debt and satisfy its other liquidity
requirements; uncertainties regarding the satisfactory operation of
the Company's technology or systems; the impact of data security
breaches and other malicious acts or privacy concerns, including
the costs of compliance with evolving privacy laws and regulations;
the Company’s ability to successfully integrate and use artificial
intelligence in its business; the Company's ability to enforce its
intellectual property rights both domestically and internationally,
as well as the impact of its involvement in any claims related to
intellectual property rights; the impact of existing and future
laws and regulations, including federal and state regulations
relating to compounded medications; risks related to the Company's
exposure to extensive and complex healthcare laws and regulations
as a result of the Acquisition; the outcomes of litigation or
regulatory actions; risks and uncertainties associated with the
Company's international operations, including regulatory, economic,
political, social, intellectual property, and foreign currency
risks, which risks may be exacerbated as a result of war and
terrorism; risks related to the Acquisition, including risks that
the Acquisition may not achieve its intended results; the
possibility that the Company could fail to maintain the listing of
its common stock on Nasdaq; risks related to the actions of
activist shareholders; and other risks and uncertainties, including
those detailed from time to time in the Company's periodic reports
filed with the United States Securities and Exchange Commission
(the “SEC”) (which are available on the SEC’s EDGAR database at
www.sec.gov and via the Company’s website at corporate.ww.com). You
should not put undue reliance on any forward-looking statements.
You should understand that many important factors, including those
discussed herein, could cause the Company’s results to differ
materially from those expressed or suggested in any forward-looking
statement. Except as required by law, the Company does not
undertake any obligation to update or revise these forward-looking
statements to reflect new information or events or circumstances
that occur after the date of this news release or to reflect the
occurrence of unanticipated events or otherwise. Readers are
advised to review the Company’s filings with the SEC (which are
available on the SEC’s EDGAR database at www.sec.gov and via the
Company’s website at corporate.ww.com).
For more information, contact:Investors:John
Mills or Anna Kate Heller WeightWatchers@icrinc.com
Media:Mari SantanaCommunications@ww.com
| |
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
| |
CONSOLIDATED BALANCE SHEETS AT |
| |
(IN THOUSANDS) |
| |
UNAUDITED |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
December 28, |
|
December 30, |
|
|
|
|
2024 |
|
2023 |
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
53,024 |
|
|
$ |
109,366 |
|
| |
Receivables (net of allowances: December 28, 2024 - $3,166 and
December 30, 2023 - $1,041) |
|
|
14,428 |
|
|
|
14,938 |
|
| |
Prepaid income taxes |
|
|
11,676 |
|
|
|
25,370 |
|
| |
Prepaid marketing and advertising |
|
|
4,969 |
|
|
|
10,149 |
|
| |
Prepaid expenses and other current assets |
|
|
18,551 |
|
|
|
19,651 |
|
| |
TOTAL CURRENT ASSETS |
|
|
102,648 |
|
|
|
179,474 |
|
|
Property and equipment, net |
|
|
15,798 |
|
|
|
19,741 |
|
|
Operating lease assets |
|
|
42,047 |
|
|
|
52,272 |
|
|
Franchise rights acquired |
|
|
71,131 |
|
|
|
386,526 |
|
|
Goodwill |
|
|
239,583 |
|
|
|
243,441 |
|
|
Other intangible assets, net |
|
|
44,631 |
|
|
|
63,208 |
|
|
Deferred income taxes |
|
|
16,686 |
|
|
|
19,683 |
|
|
Other noncurrent assets |
|
|
17,752 |
|
|
|
17,685 |
|
| |
TOTAL ASSETS |
|
$ |
550,276 |
|
|
$ |
982,030 |
|
|
LIABILITIES AND TOTAL DEFICIT |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
| |
Portion of operating lease liabilities due within one year |
|
$ |
8,168 |
|
|
$ |
9,613 |
|
| |
Accounts payable |
|
|
17,803 |
|
|
|
18,507 |
|
| |
Salaries and wages payable |
|
|
53,143 |
|
|
|
79,096 |
|
| |
Accrued marketing and advertising |
|
|
12,805 |
|
|
|
18,215 |
|
| |
Accrued interest |
|
|
11,322 |
|
|
|
5,346 |
|
| |
Deferred acquisition payable |
|
|
15,503 |
|
|
|
16,500 |
|
| |
Other accrued liabilities |
|
|
20,593 |
|
|
|
22,610 |
|
| |
Income taxes payable |
|
|
2,339 |
|
|
|
1,609 |
|
| |
Deferred revenue |
|
|
31,655 |
|
|
|
33,966 |
|
| |
TOTAL CURRENT LIABILITIES |
|
|
173,331 |
|
|
|
205,462 |
|
|
Long-term debt, net |
|
|
1,430,643 |
|
|
|
1,426,464 |
|
|
Long-term operating lease liabilities |
|
|
44,322 |
|
|
|
53,461 |
|
|
Deferred income taxes |
|
|
14,762 |
|
|
|
41,994 |
|
|
Other noncurrent liabilities |
|
|
1,590 |
|
|
|
15,743 |
|
| |
TOTAL LIABILITIES |
|
|
1,664,648 |
|
|
|
1,743,124 |
|
|
TOTAL DEFICIT |
|
|
|
|
| |
Common stock, $0 par value; 1,000,000 shares authorized; 130,048
shares issued at December 28, 2024 and 130,048 shares issued at
December 30, 2023 |
|
|
0 |
|
|
|
0 |
|
| |
Treasury stock, at cost, 49,997 shares at December 28, 2024 and
50,859 shares at December 30, 2023 |
|
|
(3,024,710 |
) |
|
|
(3,064,628 |
) |
| |
Retained earnings |
|
|
1,936,170 |
|
|
|
2,314,834 |
|
| |
Accumulated other comprehensive loss |
|
|
(25,832 |
) |
|
|
(11,300 |
) |
| |
TOTAL DEFICIT |
|
|
(1,114,372 |
) |
|
|
(761,094 |
) |
| |
TOTAL LIABILITIES AND TOTAL DEFICIT |
|
$ |
550,276 |
|
|
$ |
982,030 |
|
| |
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|
UNAUDITED |
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
Three Months Ended |
| |
|
|
December 28, |
|
December 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Subscription revenues, net (1) |
|
$ |
181,733 |
|
|
$ |
196,087 |
|
|
Other revenues, net (2) |
|
|
2,680 |
|
|
|
9,868 |
|
|
|
Revenues, net |
|
|
184,413 |
|
|
|
205,955 |
|
|
Cost of subscription revenues (3) |
|
|
55,786 |
|
|
|
67,707 |
|
|
Cost of other revenues |
|
|
114 |
|
|
|
13,391 |
|
|
|
Cost of revenues |
|
|
55,900 |
|
|
|
81,098 |
|
|
|
Gross profit |
|
|
128,513 |
|
|
|
124,857 |
|
|
Marketing expenses |
|
|
48,207 |
|
|
|
50,920 |
|
|
Selling, general and administrative expenses |
|
|
44,084 |
|
|
|
76,312 |
|
|
Franchise rights acquired and goodwill impairments |
|
|
— |
|
|
|
3,633 |
|
|
|
Operating income (loss) |
|
|
36,222 |
|
|
|
(6,008 |
) |
|
Interest expense |
|
|
27,031 |
|
|
|
24,464 |
|
|
Other (income) expense, net |
|
|
(4,188 |
) |
|
|
107 |
|
|
|
Income (loss) before income taxes |
|
|
13,379 |
|
|
|
(30,579 |
) |
|
(Benefit from) provision for income taxes |
|
|
(11,745 |
) |
|
|
57,556 |
|
|
|
Net income (loss) |
|
$ |
25,124 |
|
|
$ |
(88,135 |
) |
|
|
|
|
|
|
|
|
Earnings (net loss) per share |
|
|
|
|
|
|
Basic |
|
$ |
0.31 |
|
|
$ |
(1.11 |
) |
|
|
Diluted |
|
$ |
0.31 |
|
|
$ |
(1.11 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
Basic |
|
|
79,890 |
|
|
|
79,125 |
|
|
|
Diluted |
|
|
81,005 |
|
|
|
79,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
| (1) “Subscription
revenues, net” consist of the aggregate of: (a) net “Digital
Subscription Revenues”, the fees associated with subscriptions for
the Company’s Digital offerings; (b) net “Workshops + Digital
Subscription Revenues”, the fees associated with subscriptions for
the Company’s Workshops + Digital offerings; and (c) net “Clinical
Subscription Revenues”, the fees associated with subscriptions for
the Company’s Clinical offerings. |
| (2) “Other revenues,
net” (formerly known as “product sales and other, net”) consist of
revenues from licensing, franchise fees with respect to commitment
plans and royalties, publishing and other revenues. Prior to fiscal
2024, “Other revenues, net” included sales of consumer
products. |
| (3) “Cost of
subscription revenues” consists of cost of revenues and operating
expenses for the Company's Digital, Workshops + Digital and
Clinical services. |
| |
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|
UNAUDITED |
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
Twelve Months Ended |
| |
|
|
December 28, |
|
December 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Subscription revenues, net (1) |
|
$ |
776,993 |
|
|
$ |
822,755 |
|
|
Other revenues, net (2) |
|
|
8,928 |
|
|
|
66,796 |
|
|
|
Revenues, net |
|
|
785,921 |
|
|
|
889,551 |
|
|
Cost of subscription revenues (3) |
|
|
250,954 |
|
|
|
301,062 |
|
|
Cost of other revenues |
|
|
1,864 |
|
|
|
59,186 |
|
|
|
Cost of revenues |
|
|
252,818 |
|
|
|
360,248 |
|
|
|
Gross profit |
|
|
533,103 |
|
|
|
529,303 |
|
|
Marketing expenses |
|
|
236,467 |
|
|
|
238,387 |
|
|
Selling, general and administrative expenses |
|
|
217,825 |
|
|
|
264,950 |
|
|
Franchise rights acquired and goodwill impairments |
|
|
315,033 |
|
|
|
3,633 |
|
|
|
Operating (loss) income |
|
|
(236,222 |
) |
|
|
22,333 |
|
|
Interest expense |
|
|
108,954 |
|
|
|
95,893 |
|
|
Other (income) expense, net |
|
|
(1 |
) |
|
|
72 |
|
|
|
Loss before income taxes |
|
|
(345,175 |
) |
|
|
(73,632 |
) |
|
Provision for income taxes |
|
|
526 |
|
|
|
38,623 |
|
|
|
Net loss |
|
$ |
(345,701 |
) |
|
$ |
(112,255 |
) |
|
|
|
|
|
|
|
|
Net loss per share |
|
|
|
|
|
|
Basic |
|
$ |
(4.34 |
) |
|
$ |
(1.46 |
) |
|
|
Diluted |
|
$ |
(4.34 |
) |
|
$ |
(1.46 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
Basic |
|
|
79,578 |
|
|
|
76,677 |
|
|
|
Diluted |
|
|
79,578 |
|
|
|
76,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
| (1) “Subscription
revenues, net” consist of the aggregate of: (a) net “Digital
Subscription Revenues”, the fees associated with subscriptions for
the Company’s Digital offerings; (b) net “Workshops + Digital
Subscription Revenues”, the fees associated with subscriptions for
the Company’s Workshops + Digital offerings; and (c) net “Clinical
Subscription Revenues”, the fees associated with subscriptions for
the Company’s Clinical offerings. |
| (2) “Other revenues,
net” (formerly known as “product sales and other, net”) consist of
revenues from licensing, franchise fees with respect to commitment
plans and royalties, publishing and other revenues. Prior to fiscal
2024, “Other revenues, net” included sales of consumer
products. |
| (3) “Cost of
subscription revenues” consists of cost of revenues and operating
expenses for the Company's Digital, Workshops + Digital and
Clinical services. |
| |
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(IN THOUSANDS) |
|
UNAUDITED |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
Twelve Months Ended |
| |
|
|
December 28, |
|
December 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(345,701 |
) |
|
$ |
(112,255 |
) |
| |
Adjustments to reconcile net loss to cash (used for) provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
37,784 |
|
|
|
52,471 |
|
|
|
Amortization of deferred financing costs and debt discount |
|
|
5,018 |
|
|
|
5,018 |
|
|
|
Impairment of franchise rights acquired and goodwill |
|
|
315,033 |
|
|
|
3,633 |
|
|
|
Impairment of intangible and long-lived assets |
|
|
481 |
|
|
|
1,112 |
|
|
|
Share-based compensation expense |
|
|
7,764 |
|
|
|
15,185 |
|
|
|
Deferred tax (benefit) provision |
|
|
(26,578 |
) |
|
|
19,821 |
|
|
|
Allowance for doubtful accounts |
|
|
2,062 |
|
|
|
1,306 |
|
|
|
Reserve for inventory obsolescence |
|
|
72 |
|
|
|
7,350 |
|
|
|
Foreign currency exchange rate (gain) loss |
|
|
(2,276 |
) |
|
|
263 |
|
|
|
Changes in cash due to: |
|
|
|
|
|
|
Receivables |
|
|
1,599 |
|
|
|
17,112 |
|
|
|
Inventories |
|
|
91 |
|
|
|
14,018 |
|
|
|
Prepaid expenses |
|
|
18,703 |
|
|
|
(4,133 |
) |
|
|
Accounts payable |
|
|
(508 |
) |
|
|
(54 |
) |
|
|
Accrued liabilities |
|
|
(14,998 |
) |
|
|
(11,625 |
) |
|
|
Deferred revenue |
|
|
(1,780 |
) |
|
|
1,273 |
|
|
|
Other long term assets and liabilities, net |
|
|
(14,624 |
) |
|
|
(3,598 |
) |
|
|
Income taxes |
|
|
1,018 |
|
|
|
(211 |
) |
|
|
Cash (used for) provided by operating activities |
|
|
(16,840 |
) |
|
|
6,686 |
|
|
Investing activities: |
|
|
|
|
|
|
Capital expenditures |
|
|
(718 |
) |
|
|
(2,485 |
) |
|
|
Capitalized software and website development expenditures |
|
|
(15,692 |
) |
|
|
(33,816 |
) |
|
|
Cash paid for acquisitions, net of cash acquired |
|
|
— |
|
|
|
(38,362 |
) |
|
|
Other items, net |
|
|
(5 |
) |
|
|
(33 |
) |
|
|
Cash used for investing activities |
|
|
(16,415 |
) |
|
|
(74,696 |
) |
|
Financing activities: |
|
|
|
|
|
|
Taxes paid related to net share settlement of equity awards |
|
|
(839 |
) |
|
|
(2,241 |
) |
|
|
Proceeds from stock options exercised |
|
|
— |
|
|
|
718 |
|
|
|
Cash paid for acquisitions |
|
|
(16,500 |
) |
|
|
(1,178 |
) |
|
|
Other items, net |
|
|
(4 |
) |
|
|
(48 |
) |
|
|
Cash used for financing activities |
|
|
(17,343 |
) |
|
|
(2,749 |
) |
|
Effect of exchange rate changes on cash and cash equivalents and
restricted cash |
|
|
(2,248 |
) |
|
|
1,799 |
|
|
Net decrease in cash and cash equivalents and restricted cash |
|
|
(52,846 |
) |
|
|
(68,960 |
) |
|
Cash and cash equivalents and restricted cash, beginning of
period |
|
|
109,366 |
|
|
|
178,326 |
|
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
56,520 |
|
|
$ |
109,366 |
|
| |
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
OPERATIONAL STATISTICS |
|
(IN THOUSANDS, EXCEPT PERCENTAGES) |
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
| |
|
December 28, |
|
December 30, |
|
Variance |
| |
|
2024 |
|
2023 |
|
| |
|
|
|
|
|
|
|
Paid Weeks (1) |
|
|
|
|
|
|
Digital Paid Weeks |
37,595 |
|
41,010 |
|
(8.3%) |
|
Workshops + Digital Paid Weeks |
6,761 |
|
8,703 |
|
(22.3%) |
|
Clinical Paid Weeks |
1,103 |
|
719 |
|
53.3% |
|
|
Total Paid Weeks |
45,459 |
|
50,432 |
|
(9.9%) |
| |
|
|
|
|
|
|
|
End of Period Subscribers
(2) |
|
|
|
|
|
|
End of Period Digital Subscribers |
2,741 |
|
3,079 |
|
(11.0%) |
|
End of Period Workshops + Digital Subscribers |
503 |
|
652 |
|
(22.7%) |
|
End of Period Clinical Subscribers |
92 |
|
67 |
|
37.8% |
|
|
Total End of Period
Subscribers |
3,336 |
|
3,798 |
|
(12.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
(1) The “Paid Weeks” metric reports paid weeks by WW customers in
Company-owned operations for a given period as follows: (i)
“Digital Paid Weeks” is the total paid subscription weeks for the
Company’s Digital offerings; (ii) “Workshops + Digital Paid Weeks”
is the total paid subscription weeks for the Company’s Workshops +
Digital offerings; (iii) “Clinical Paid Weeks” is the total paid
subscription weeks for the Company’s Clinical offerings; and (iv)
“Total Paid Weeks” is the sum of Digital Paid Weeks, Workshops +
Digital Paid Weeks and Clinical Paid Weeks. |
|
(2) The “End of Period Subscribers” metric reports WW subscribers
in Company-owned operations at a given period end as follows: (i)
“End of Period Digital Subscribers” is the total number of Digital
subscribers; (ii) “End of Period Workshops + Digital Subscribers”
is the total number of Workshops + Digital subscribers; (iii) “End
of Period Clinical Subscribers” is the total number of Clinical
subscribers; and (iv) “End of Period Subscribers” is the sum of End
of Period Digital Subscribers, End of Period Workshops + Digital
Subscribers and End of Period Clinical Subscribers. |
| |
|
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
OPERATIONAL STATISTICS |
|
(IN THOUSANDS, EXCEPT PERCENTAGES) |
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Twelve Months Ended |
|
|
| |
|
December 28, |
|
December 30, |
|
Variance |
| |
|
2024 |
|
2023 |
|
| |
|
|
|
|
|
|
|
Paid Weeks (1) |
|
|
|
|
|
|
Digital Paid Weeks |
162,290 |
|
167,868 |
|
(3.3 |
%) |
|
Workshops + Digital Paid Weeks |
30,069 |
|
37,742 |
|
(20.3 |
%) |
|
Clinical Paid Weeks |
4,247 |
|
1,608 |
|
164.1 |
% |
|
|
Total Paid Weeks |
196,606 |
|
207,218 |
|
(5.1 |
%) |
| |
|
|
|
|
|
|
|
End of Period Subscribers
(2) |
|
|
|
|
|
|
End of Period Digital Subscribers |
2,741 |
|
3,079 |
|
(11.0 |
%) |
|
End of Period Workshops + Digital Subscribers |
503 |
|
652 |
|
(22.7 |
%) |
|
End of Period Clinical Subscribers |
92 |
|
67 |
|
37.8 |
% |
|
|
Total End of Period
Subscribers |
3,336 |
|
3,798 |
|
(12.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
(1) The “Paid Weeks” metric reports paid weeks by WW customers in
Company-owned operations for a given period as follows: (i)
“Digital Paid Weeks” is the total paid subscription weeks for the
Company’s Digital offerings; (ii) “Workshops + Digital Paid Weeks”
is the total paid subscription weeks for the Company’s Workshops +
Digital offerings; (iii) “Clinical Paid Weeks” is the total paid
subscription weeks for the Company’s Clinical offerings; and (iv)
“Total Paid Weeks” is the sum of Digital Paid Weeks, Workshops +
Digital Paid Weeks and Clinical Paid Weeks. |
|
(2) The “End of Period Subscribers” metric reports WW subscribers
in Company-owned operations at a given period end as follows: (i)
“End of Period Digital Subscribers” is the total number of Digital
subscribers; (ii) “End of Period Workshops + Digital Subscribers”
is the total number of Workshops + Digital subscribers; (iii) “End
of Period Clinical Subscribers” is the total number of Clinical
subscribers; and (iv) “End of Period Subscribers” is the sum of End
of Period Digital Subscribers, End of Period Workshops + Digital
Subscribers and End of Period Clinical Subscribers. |
| |
|
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(IN THOUSANDS, EXCEPT PERCENTAGES) |
|
UNAUDITED |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Q4 2024 Variance |
| |
|
|
|
|
|
|
|
|
|
|
2024 |
| |
|
|
|
|
|
|
Constant |
| |
Q4 2024 |
|
Q4 2023 |
|
2024 |
|
Currency |
| |
|
|
Currency |
|
Constant |
|
|
|
vs |
|
vs |
| |
GAAP |
|
Adjustment |
|
Currency |
|
GAAP |
|
2023 |
|
2023 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
184,413 |
|
$ |
189 |
|
|
$ |
184,602 |
|
$ |
205,955 |
|
(10.5 |
%) |
|
(10.4 |
%) |
|
Digital Subscription Revenues (1) |
$ |
113,489 |
|
$ |
214 |
|
|
$ |
113,703 |
|
$ |
133,459 |
|
(15.0 |
%) |
|
(14.8 |
%) |
|
Workshops + Digital Subscription Revenues (2) |
$ |
47,772 |
|
$ |
(27 |
) |
|
$ |
47,745 |
|
$ |
49,666 |
|
(3.8 |
%) |
|
(3.9 |
%) |
|
Clinical Subscription Revenues (3) |
$ |
20,472 |
|
$ |
— |
|
|
$ |
20,472 |
|
$ |
12,962 |
|
57.9 |
% |
|
57.9 |
% |
|
Subscription Revenues (4) |
$ |
181,733 |
|
$ |
187 |
|
|
$ |
181,920 |
|
$ |
196,087 |
|
(7.3 |
%) |
|
(7.2 |
%) |
|
Other Revenues (5) |
$ |
2,680 |
|
$ |
2 |
|
|
$ |
2,682 |
|
$ |
9,868 |
|
(72.8 |
%) |
|
(72.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
| (1) “Digital
Subscription Revenues” consist of the fees associated with
subscriptions for the Company’s Digital offerings. |
| (2) “Workshops +
Digital Subscription Revenues” consist of the fees associated with
subscriptions for the Company’s Workshops + Digital offerings. |
| (3) “Clinical
Subscription Revenues” consist of the fees associated with
subscriptions for the Company’s Clinical offerings. |
| (4) “Subscription
Revenues” equal “Digital Subscription Revenues” plus “Workshops +
Digital Subscription Revenues” plus “Clinical Subscription
Revenues”. |
| (5) “Other Revenues”
(formerly known as “product sales and other”) consist of revenues
from licensing, franchise fees with respect to commitment plans and
royalties, publishing and other revenues. Prior to fiscal 2024,
“Other Revenues” included sales of consumer products. |
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(IN THOUSANDS, EXCEPT PERCENTAGES) |
|
UNAUDITED |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Full Year 2024 Variance |
| |
|
|
|
|
|
|
|
|
|
|
|
2024 |
| |
|
|
|
|
|
|
|
Constant |
| |
|
Full Year 2024 |
|
Full Year 2023 |
|
2024 |
|
Currency |
| |
|
|
|
Currency |
|
Constant |
|
|
|
vs |
|
vs |
| |
|
GAAP |
|
Adjustment |
|
Currency |
|
GAAP |
|
2023 |
|
2023 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
785,921 |
|
$ |
(651 |
) |
|
$ |
785,270 |
|
$ |
889,551 |
|
(11.6 |
%) |
|
(11.7 |
%) |
|
Digital Subscription Revenues (1) |
$ |
512,853 |
|
$ |
(400 |
) |
|
$ |
512,453 |
|
$ |
571,074 |
|
(10.2 |
%) |
|
(10.3 |
%) |
|
Workshops + Digital Subscription Revenues (2) |
$ |
186,139 |
|
$ |
(233 |
) |
|
$ |
185,906 |
|
$ |
221,139 |
|
(15.8 |
%) |
|
(15.9 |
%) |
|
Clinical Subscription Revenues (3) |
$ |
78,001 |
|
$ |
— |
|
|
$ |
78,001 |
|
$ |
30,542 |
|
155.4 |
% |
|
155.4 |
% |
|
Subscription Revenues (4) |
$ |
776,993 |
|
$ |
(633 |
) |
|
$ |
776,360 |
|
$ |
822,755 |
|
(5.6 |
%) |
|
(5.6 |
%) |
|
Other Revenues (5) |
$ |
8,928 |
|
$ |
(18 |
) |
|
$ |
8,910 |
|
$ |
66,796 |
|
(86.6 |
%) |
|
(86.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Note: Totals may not
sum due to rounding. |
|
|
|
|
|
|
| (1) “Digital
Subscription Revenues” consist of the fees associated with
subscriptions for the Company’s Digital offerings. |
| (2) “Workshops +
Digital Subscription Revenues” consist of the fees associated with
subscriptions for the Company’s Workshops + Digital offerings. |
| (3) “Clinical
Subscription Revenues” consist of the fees associated with
subscriptions for the Company’s Clinical offerings. |
| (4) “Subscription
Revenues” equal “Digital Subscription Revenues” plus “Workshops +
Digital Subscription Revenues” plus “Clinical Subscription
Revenues”. |
| (5) “Other Revenues”
(formerly known as “product sales and other”) consist of revenues
from licensing, franchise fees with respect to commitment plans and
royalties, publishing and other revenues. Prior to fiscal 2024,
“Other Revenues” included sales of consumer products. |
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(IN THOUSANDS, EXCEPT PERCENTAGES AND PER SHARE
AMOUNTS) |
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2024 Variance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Constant Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2024 |
|
|
|
Q4 2024 |
|
Q4 2023 |
|
|
|
Adjusted |
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
2024 |
|
vs |
|
2024 |
|
vs |
|
|
|
|
|
|
|
|
|
Currency |
|
Constant |
|
Constant |
|
|
|
|
|
|
|
vs |
|
2023 |
|
vs |
|
2023 |
|
|
|
GAAP |
|
Adjustment |
|
Adjusted |
|
Adjustment |
|
Currency |
|
Currency |
|
GAAP |
|
Adjustment |
|
Adjusted |
|
2023 |
|
Adjusted |
|
2023 |
|
Adjusted |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
$ |
128,513 |
|
$ |
(1,140) |
(1) |
$ |
127,373 |
|
$ |
114 |
|
$ |
128,627 |
|
$ |
127,487 |
|
$ |
124,857 |
|
$ |
1,512 |
(7) |
$ |
126,369 |
|
2.9% |
|
0.8% |
|
3.0% |
|
0.9% |
|
Gross Margin |
|
69.7% |
|
|
|
|
69.1% |
|
|
|
|
69.7% |
|
|
69.1% |
|
|
60.6% |
|
|
|
|
61.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
$ |
44,084 |
|
$ |
(1,791) |
(2) |
$ |
42,293 |
|
$ |
36 |
|
$ |
44,120 |
|
$ |
42,329 |
|
$ |
76,312 |
|
$ |
(22,117) |
(8) |
$ |
54,195 |
|
(42.2%) |
|
(22.0%) |
|
(42.2%) |
|
(21.9%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
$ |
36,222 |
|
$ |
651 |
(3) |
$ |
36,873 |
|
$ |
69 |
|
$ |
36,291 |
|
$ |
36,942 |
|
$ |
(6,008) |
|
$ |
27,262 |
(9) |
$ |
21,254 |
|
(703.0%) |
|
73.5% |
|
(704.2%) |
|
73.8% |
|
Operating Income (Loss) Margin |
|
19.6% |
|
|
|
|
20.0% |
|
|
|
|
19.7% |
|
|
20.0% |
|
|
(2.9%) |
|
|
|
|
10.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from) Provision for Income Taxes |
$ |
(11,745) |
|
$ |
164 |
(4) |
$ |
(11,581) |
|
$ |
21 |
|
$ |
(11,724) |
|
$ |
(11,560) |
|
$ |
57,556 |
|
$ |
5,903 |
(10) |
$ |
63,459 |
|
(120.4%) |
|
(118.2%) |
|
(120.4%) |
|
(118.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
$ |
25,124 |
|
$ |
487 |
(5) |
$ |
25,611 |
|
$ |
49 |
|
$ |
25,173 |
|
$ |
25,660 |
|
$ |
(88,135) |
|
$ |
21,359 |
(11) |
$ |
(66,776) |
|
(128.5%) |
|
(138.4%) |
|
(128.6%) |
|
(138.4%) |
|
Net Income (Loss) Margin |
|
13.6% |
|
|
|
|
13.9% |
|
|
|
|
13.6% |
|
|
13.9% |
|
|
(42.8%) |
|
|
|
|
(32.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Net Loss) Per Share |
$ |
0.31 |
|
$ |
0.01 |
(6) |
$ |
0.32 |
|
$ |
0.00 |
|
$ |
0.31 |
|
$ |
0.32 |
|
$ |
(1.11) |
|
$ |
0.27 |
(12) |
$ |
(0.84) |
|
(127.8%) |
|
(137.5%) |
|
(127.9%) |
|
(137.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes the net
impact of $47 of charges associated with the Company's previously
disclosed 2024 restructuring plan and the reversal of $1,187 of
charges associated with the Company's previously disclosed 2023
restructuring plan. |
| (2) Excludes the net
impact of $2,184 of charges associated with the Company's
previously disclosed 2024 restructuring plan, the reversal of $345
of charges associated with the Company's previously disclosed 2023
restructuring plan and the reversal of $48 of charges associated
with the Company's previously disclosed 2022 restructuring
plan. |
| (3) Excludes the net
impact of (a) $47 of charges and $2,184 of charges associated with
the Company's previously disclosed 2024 restructuring plan recorded
to cost of subscription revenues and selling, general and
administrative expenses, respectively, (b) the reversal of $1,187
of charges and the reversal of $345 of charges associated with the
Company's previously disclosed 2023 restructuring plan recorded to
cost of subscription revenues and selling, general and
administrative expenses, respectively, and (c) the reversal of $48
of charges associated with the Company's previously disclosed 2022
restructuring plan recorded to selling, general and administrative
expenses. |
| (4) Excludes the net
impact of $563 of charges associated with the Company's previously
disclosed 2024 restructuring plan, the reversal of $387 of charges
associated with the Company's previously disclosed 2023
restructuring plan and the reversal of $12 of charges associated
with the Company's previously disclosed 2022 restructuring
plan. |
| (5) Excludes the net
impact of $1,668 of charges associated with the Company's
previously disclosed 2024 restructuring plan, the reversal of
$1,145 of charges associated with the Company's previously
disclosed 2023 restructuring plan and the reversal of $36 of
charges associated with the Company's previously disclosed 2022
restructuring plan. |
| (6) Excludes the net
impact of $0.02 of charges associated with the Company's previously
disclosed 2024 restructuring plan, the reversal of $0.01 of charges
associated with the Company's previously disclosed 2023
restructuring plan and the reversal of $0.00 of charges associated
with the Company's previously disclosed 2022 restructuring
plan. |
| (7) Excludes the net
impact of $1,247 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $265 of charges
associated with the Company's previously disclosed 2022
restructuring plan. |
| (8) Excludes the net
impact of $21,893 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $224 of charges
associated with the Company's previously disclosed 2022
restructuring plan. |
| (9) Excludes (i) the
net impact of (a) $1,247 of charges and $21,893 of charges
associated with the Company's previously disclosed 2023
restructuring plan recorded to cost of subscription revenues and
selling, general and administrative expenses, respectively, and (b)
$265 of charges and $224 of charges associated with the Company's
previously disclosed 2022 restructuring plan recorded to cost of
subscription revenues and selling, general and administrative
expenses, respectively, and (ii) the impact of impairment charges
of the Company's goodwill related to its Republic of Ireland and
Northern Ireland reporting units of $2,383 and $1,203,
respectively, and the impairment charge of the Company's franchise
rights acquired related to its Northern Ireland unit of account of
$47. |
| (10) Excludes the net
impact of $5,781 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $122 of charges
associated with the Company's previously disclosed 2022
restructuring plan. |
| (11) Excludes (i) the
net impact of $17,359 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $367 of charges
associated with the Company's previously disclosed 2022
restructuring plan, and (ii) the impact of impairment charges of
the Company's goodwill related to its Republic of Ireland and
Northern Ireland reporting units of $2,383 and $1,203,
respectively, and the impairment charge of the Company's franchise
rights acquired related to its Northern Ireland unit of account of
$47. |
| (12) Excludes (i) the
net impact of $0.22 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $0.00 of charges
associated with the Company's previously disclosed 2022
restructuring plan, and (ii) the impact of impairment charges of
the Company's goodwill related to its Republic of Ireland and
Northern Ireland reporting units of $0.03 and $0.02, respectively,
and the impairment charge of the Company's franchise rights
acquired related to its Northern Ireland unit of account of
$0.00. |
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(IN THOUSANDS, EXCEPT PERCENTAGES AND PER SHARE
AMOUNTS) |
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2024 Variance |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Constant Currency |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2024 |
| |
|
Full Year 2024 |
|
Full Year 2023 |
|
|
|
Adjusted |
|
|
|
Adjusted |
| |
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
2024 |
|
vs |
|
2024 |
|
vs |
| |
|
|
|
|
|
|
|
Currency |
|
Constant |
|
Constant |
|
|
|
|
|
|
|
vs |
|
2023 |
|
vs |
|
2023 |
| |
|
GAAP |
|
Adjustment |
|
Adjusted |
|
Adjustment |
|
Currency |
|
Currency |
|
GAAP |
|
Adjustment |
|
Adjusted |
|
2023 |
|
Adjusted |
|
2023 |
|
Adjusted |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
$ |
533,103 |
|
$ |
5,033 |
(1) |
$ |
538,136 |
|
$ |
(554) |
|
$ |
532,549 |
|
$ |
537,582 |
|
$ |
529,303 |
|
$ |
21,187 |
(10) |
$ |
550,490 |
|
0.7% |
|
(2.2%) |
|
0.6% |
|
(2.3%) |
|
Gross Margin |
|
67.8% |
|
|
|
|
68.5% |
|
|
|
|
67.8% |
|
|
68.5% |
|
|
59.5% |
|
|
|
|
61.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
$ |
217,825 |
|
$ |
(20,998) |
(2) |
$ |
196,827 |
|
$ |
(83) |
|
$ |
217,742 |
|
$ |
196,744 |
|
$ |
264,950 |
|
$ |
(42,332) |
(11) |
$ |
222,618 |
|
(17.8%) |
|
(11.6%) |
|
(17.8%) |
|
(11.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) Income |
$ |
(236,222) |
|
$ |
341,064 |
(3) |
$ |
104,842 |
|
$ |
(369) |
|
$ |
(236,591) |
|
$ |
104,404 |
(7) |
$ |
22,333 |
|
$ |
67,152 |
(12) |
$ |
89,485 |
|
(1,157.7%) |
|
17.2% |
|
(1,159.4%) |
|
16.7% |
|
Operating (Loss) Income Margin |
|
(30.1%) |
|
|
|
|
13.3% |
|
|
|
|
(30.1%) |
|
|
13.3% |
|
|
2.5% |
|
|
|
|
10.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes |
$ |
526 |
|
$ |
28,358 |
(4) |
$ |
28,884 |
|
$ |
(91) |
|
$ |
435 |
|
$ |
28,787 |
(8) |
$ |
38,623 |
|
$ |
14,787 |
(13) |
$ |
53,410 |
|
(98.6%) |
|
(45.9%) |
|
(98.9%) |
|
(46.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
$ |
(345,701) |
|
$ |
312,706 |
(5) |
$ |
(32,995) |
|
$ |
(278) |
|
$ |
(345,979) |
|
$ |
(33,336) |
(9) |
$ |
(112,255) |
|
$ |
52,365 |
(14) |
$ |
(59,890) |
|
208.0% |
|
(44.9%) |
|
208.2% |
|
(44.3%) |
|
Net Loss Margin |
|
(44.0%) |
|
|
|
|
(4.2%) |
|
|
|
|
(44.1%) |
|
|
(4.2%) |
|
|
(12.6%) |
|
|
|
|
(6.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Loss Per Share |
$ |
(4.34) |
|
$ |
3.93 |
(6) |
$ |
(0.41) |
|
$ |
(0.00) |
|
$ |
(4.35) |
|
$ |
(0.42) |
|
$ |
(1.46) |
|
$ |
0.68 |
(15) |
$ |
(0.78) |
|
196.7% |
|
(46.9%) |
|
197.0% |
|
(46.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes the net
impact of $2,497 of charges associated with the Company's
previously disclosed 2024 restructuring plan, $2,510 of charges
associated with the Company's previously disclosed 2023
restructuring plan and $26 of charges associated with the Company's
previously disclosed 2022 restructuring plan. |
| (2) Excludes (i) the
net impact of $14,546 of charges associated with the Company's
previously disclosed 2024 restructuring plan, $2,612 of charges
associated with the Company's previously disclosed 2023
restructuring plan and the reversal of $18 of charges associated
with the Company's previously disclosed 2022 restructuring plan,
and (ii) the impact of $3,858 of former CEO separation
expenses. |
| (3) Excludes (i) the
impact of impairment charges of the Company's franchise rights
acquired of $305,726, $4,074, $2,905 and $2,328 related to its
United States, Australia, United Kingdom and New Zealand units of
account, respectively, (ii) the net impact of (a) $2,497 of charges
and $14,546 of charges associated with the Company's previously
disclosed 2024 restructuring plan recorded to cost of subscription
revenues and selling, general and administrative expenses,
respectively, (b) $2,510 of charges and $2,612 of charges
associated with the Company's previously disclosed 2023
restructuring plan recorded to cost of subscription revenues and
selling, general and administrative expenses, respectively, and (c)
$26 of charges and the reversal of $18 of charges associated with
the Company's previously disclosed 2022 restructuring plan recorded
to cost of subscription revenues and selling, general and
administrative expenses, respectively, and (iii) the impact of
$3,858 of former CEO separation expenses recorded to selling,
general and administrative expenses. |
| (4) Excludes (i) the
impact of impairment charges of the Company's franchise rights
acquired of $19,839, $1,222 and $726 related to its United States,
Australia and United Kingdom units of account, respectively, (ii)
the net impact of $4,302 of charges associated with the Company's
previously disclosed 2024 restructuring plan, $1,293 of charges
associated with the Company's previously disclosed 2023
restructuring plan and $2 of charges associated with the Company's
previously disclosed 2022 restructuring plan, and (iii) the impact
of $974 of former CEO separation expenses. |
| (5) Excludes (i) the
impact of impairment charges of the Company's franchise rights
acquired of $285,887, $2,852, $2,328 and $2,179 related to its
United States, Australia, New Zealand and United Kingdom units of
account, respectively, (ii) the net impact of $12,741 of charges
associated with the Company's previously disclosed 2024
restructuring plan, $3,829 of charges associated with the Company's
previously disclosed 2023 restructuring plan and $6 of charges
associated with the Company's previously disclosed 2022
restructuring plan, and (iii) the impact of $2,884 of former CEO
separation expenses. |
| (6) Excludes (i) the
impact of impairment charges of the Company's franchise rights
acquired of $3.59, $0.03, $0.03 and $0.03 related to its United
States, Australia, United Kingdom and New Zealand units of account,
respectively, (ii) the net impact of $0.16 of charges associated
with the Company's previously disclosed 2024 restructuring plan,
$0.05 of charges associated with the Company's previously disclosed
2023 restructuring plan and $0.00 of charges associated with the
Company's previously disclosed 2022 restructuring plan, and (iii)
the impact of $0.04 of former CEO separation expenses. |
| (7) Includes $(69) of
currency adjustment associated with the impairment charges of the
Company's franchise rights acquired of $4,074, $2,905 and $2,328
related to its Australia, United Kingdom and New Zealand units of
account, respectively. |
| (8) Includes $(6) of
currency adjustment associated with the impairment charges of the
Company's franchise rights acquired of $4,074, $2,905 and $2,328
related to its Australia, United Kingdom and New Zealand units of
account, respectively. |
| (9) Includes $(63) of
currency adjustment associated with the impairment charges of the
Company's franchise rights acquired of $4,074, $2,905 and $2,328
related to its Australia, United Kingdom and New Zealand units of
account, respectively. |
| (10) Excludes the net
impact of $21,116 of charges associated with the Company's
previously disclosed 2023 restructuring plan, the reversal of $4 of
charges associated with the Company's previously disclosed 2022
restructuring plan, $96 of charges associated with the Company's
previously disclosed 2021 organizational restructuring plan and the
reversal of $21 of charges associated with the Company's previously
disclosed 2020 organizational restructuring plan. |
| (11) Excludes (i) the
net impact of $32,627 of charges associated with the Company's
previously disclosed 2023 restructuring plan, $1,139 of charges
associated with the Company's previously disclosed 2022
restructuring plan and the reversal of $39 of charges associated
with the Company's previously disclosed 2021 organizational
restructuring plan, and (ii) the impact of $8,605 of acquisition
transaction costs. |
| (12) Excludes (i) the
net impact of (a) $21,116 of charges and $32,627 of charges
associated with the Company's previously disclosed 2023
restructuring plan recorded to cost of subscription revenues and
selling, general and administrative expenses, respectively, (b) the
reversal of $4 of charges and $1,139 of charges associated with the
Company's previously disclosed 2022 restructuring plan recorded to
cost of subscription revenues and selling, general and
administrative expenses, respectively, (c) $96 of charges and the
reversal of $39 of charges associated with the Company's previously
disclosed 2021 organizational restructuring plan recorded to cost
of subscription revenues and selling, general and administrative
expenses, respectively, and (d) the reversal of $21 of charges
associated with the Company's previously disclosed 2020
organizational restructuring plan recorded to cost of subscription
revenues, (ii) the impact of $8,605 of acquisition transaction
costs recorded to selling, general and administrative expenses, and
(iii) the impact of impairment charges of the Company's goodwill
related to its Republic of Ireland and Northern Ireland reporting
units of $2,383 and $1,203, respectively, and the impairment charge
of the Company's franchise rights acquired related to its Northern
Ireland unit of account of $47. |
| (13) Excludes (i) the
net impact of $13,425 of charges associated with the Company's
previously disclosed 2023 restructuring plan, $283 of charges
associated with the Company's previously disclosed 2022
restructuring plan, $14 of charges associated with the Company's
previously disclosed 2021 organizational restructuring plan and the
reversal of $5 of charges associated with the Company's previously
disclosed 2020 organizational restructuring plan, and (ii) the
impact of $1,070 of acquisition transaction costs. |
| (14) Excludes (i) the
net impact of $40,318 of charges associated with the Company's
previously disclosed 2023 restructuring plan, $852 of charges
associated with the Company's previously disclosed 2022
restructuring plan, $43 of charges associated with the Company's
previously disclosed 2021 organizational restructuring plan and the
reversal of $16 of charges associated with the Company's previously
disclosed 2020 organizational restructuring plan, (ii) the impact
of $7,535 of acquisition transaction costs, and (iii) the impact of
impairment charges of the Company's goodwill related to its
Republic of Ireland and Northern Ireland reporting units of $2,383
and $1,203, respectively, and the impairment charge of the
Company's franchise rights acquired related to its Northern Ireland
unit of account of $47. |
| (15) Excludes (i) the
net impact of $0.52 of charges associated with the Company's
previously disclosed 2023 restructuring plan, $0.01 of charges
associated with the Company's previously disclosed 2022
restructuring plan, $0.00 of charges associated with the Company's
previously disclosed 2021 organizational restructuring plan and the
reversal of $0.00 of charges associated with the Company's
previously disclosed 2020 organizational restructuring plan, (ii)
the impact of $0.10 of acquisition transaction costs, and (iii) the
impact of impairment charges of the Company's goodwill related to
its Republic of Ireland and Northern Ireland reporting units of
$0.03 and $0.02, respectively, and the impairment charge of the
Company's franchise rights acquired related to its Northern Ireland
unit of account of $0.00. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
|
(IN THOUSANDS, EXCEPT PERCENTAGES) |
|
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
| |
|
|
December 28, |
|
December 30, |
|
December 28, |
|
December 30, |
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
25,124 |
|
|
$ |
(88,135 |
) |
|
$ |
(345,701 |
) |
|
$ |
(112,255 |
) |
|
|
Interest |
|
|
27,031 |
|
|
|
24,464 |
|
|
|
108,954 |
|
|
|
95,893 |
|
|
|
Taxes |
|
|
|
(11,745 |
) |
|
|
57,556 |
|
|
|
526 |
|
|
|
38,623 |
|
|
|
Depreciation and Amortization |
|
|
8,681 |
|
|
|
10,007 |
|
|
|
37,784 |
|
|
|
45,640 |
|
|
|
Stock-based Compensation |
|
|
705 |
|
|
|
2,346 |
|
|
|
6,671 |
|
|
|
11,303 |
|
|
| |
EBITDAS |
|
$ |
49,796 |
|
|
$ |
6,238 |
|
|
$ |
(191,766 |
) |
|
$ |
79,204 |
|
|
| |
EBITDAS Margin |
|
|
27.0% |
|
|
|
3.0% |
|
|
|
(24.4% |
) |
|
|
8.9% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Franchise Rights Acquired and Goodwill Impairments |
|
|
— |
|
|
|
3,633 |
|
(1) |
|
315,033 |
|
(2) |
|
3,633 |
|
(1) |
|
2024 Plan Restructuring Charges (3) |
|
|
2,231 |
|
|
|
— |
|
|
|
17,043 |
|
|
|
— |
|
|
|
2023 Plan Restructuring Charges (4) |
|
|
(1,532 |
) |
|
|
23,140 |
|
|
|
5,122 |
|
|
|
53,743 |
|
|
|
2022 Plan Restructuring Charges (5) |
|
|
(48 |
) |
|
|
489 |
|
|
|
8 |
|
|
|
1,135 |
|
|
|
2021 Plan Restructuring Charges (6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
57 |
|
|
|
2020 Plan Restructuring Charges (7) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
Former CEO Separation Expenses (8) |
|
|
— |
|
|
|
— |
|
|
|
3,858 |
|
|
|
— |
|
|
|
Acquisition Transaction Costs (9) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,605 |
|
|
| |
Adjusted EBITDAS |
|
$ |
50,447 |
|
|
$ |
33,500 |
|
|
$ |
149,298 |
|
|
$ |
146,356 |
|
|
| |
Adjusted EBITDAS Margin |
|
|
27.4% |
|
|
|
16.3% |
|
|
|
19.0% |
|
|
|
16.5% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
| (1) Impairment charges
of the Company's goodwill of $2,383 and $1,203 related to its
Republic of Ireland and Northern Ireland reporting units,
respectively, and the impairment charge of the Company's franchise
rights acquired of $47 related to its Northern Ireland unit of
account. |
|
| (2) Impairment charges
of the Company's franchise rights acquired of $305,726, $4,074,
$2,905 and $2,328 related to its United States, Australia, United
Kingdom and New Zealand units of account, respectively. |
|
| (3) Charges associated
with the Company's previously disclosed 2024 restructuring
plan. |
|
| (4) The reversal of
charges or charges, as applicable, associated with the Company's
previously disclosed 2023 restructuring plan. |
|
| (5) The reversal of
charges or charges, as applicable, associated with the Company's
previously disclosed 2022 restructuring plan. |
|
| (6) Charges associated
with the Company's previously disclosed 2021 organizational
restructuring plan. |
|
| (7) The reversal of
charges associated with the Company's previously disclosed 2020
organizational restructuring plan. |
|
| (8) Certain
non-recurring expenses in connection with the separation from the
Company of its former Chief Executive Officer. |
|
| (9) Certain
non-recurring transaction costs in connection with the Company's
acquisition of Sequence. |
|
| |
|
|
|
|
|
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
|
(IN THOUSANDS, EXCEPT RATIOS) |
|
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Trailing Twelve |
|
| |
|
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
Months |
|
|
Net Debt to Adjusted EBITDAS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
$ |
(347,902 |
) |
|
$ |
23,269 |
|
|
$ |
(46,192 |
) |
|
$ |
25,124 |
|
|
$ |
(345,701 |
) |
|
|
Interest |
|
24,727 |
|
|
|
28,577 |
|
|
|
28,619 |
|
|
|
27,031 |
|
|
|
108,954 |
|
|
|
Taxes |
|
|
55,448 |
|
|
|
(15,835 |
) |
|
|
(27,342 |
) |
|
|
(11,745 |
) |
|
|
526 |
|
|
|
Depreciation and Amortization |
|
10,403 |
|
|
|
9,545 |
|
|
|
9,155 |
|
|
|
8,681 |
|
|
|
37,784 |
|
|
|
Stock-based Compensation |
|
2,402 |
|
|
|
2,740 |
|
|
|
824 |
|
|
|
705 |
|
|
|
6,671 |
|
|
|
|
EBITDAS |
$ |
(254,922 |
) |
|
$ |
48,296 |
|
|
$ |
(34,936 |
) |
|
$ |
49,796 |
|
|
$ |
(191,766 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise Rights Acquired and Goodwill Impairments |
|
257,988 |
|
(1) |
|
— |
|
|
|
57,045 |
|
(2) |
|
— |
|
|
|
315,033 |
|
|
|
2024 Plan Restructuring Charges (3) |
|
— |
|
|
|
— |
|
|
|
14,812 |
|
|
|
2,231 |
|
|
|
17,043 |
|
|
|
2023 Plan Restructuring Charges (4) |
|
5,493 |
|
|
|
1,910 |
|
|
|
(749 |
) |
|
|
(1,532 |
) |
|
|
5,122 |
|
|
|
2022 Plan Restructuring Charges (5) |
|
244 |
|
|
|
69 |
|
|
|
(257 |
) |
|
|
(48 |
) |
|
|
8 |
|
|
|
Former CEO Separation Expenses (6) |
|
— |
|
|
|
— |
|
|
|
3,858 |
|
|
|
— |
|
|
|
3,858 |
|
|
|
|
Adjusted EBITDAS |
$ |
8,803 |
|
|
$ |
50,275 |
|
|
$ |
39,773 |
|
|
$ |
50,447 |
|
|
$ |
149,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt |
|
|
|
|
|
|
|
|
$ |
1,430,643 |
|
|
|
Less: Cash |
|
|
|
|
|
|
|
|
|
53,024 |
|
|
|
|
Net Debt |
|
|
|
|
|
|
|
|
$ |
1,377,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt to Net Loss |
|
|
|
|
|
|
|
|
|
(4.1 |
) |
X |
|
|
Net Debt to Adjusted EBITDAS |
|
|
|
|
|
|
|
|
|
9.2 |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
| (1) Impairment charges
of the Company's franchise rights acquired of $251,431, $4,074,
$2,328 and $155 related to its United States, Australia, New
Zealand and United Kingdom units of account, respectively. |
|
| (2) Impairment charges
of the Company's franchise rights acquired of $54,295 and $2,750
related to its United States and United Kingdom units of account,
respectively. |
|
| (3) Charges associated
with the Company's previously disclosed 2024 restructuring
plan. |
|
| (4) Charges or the
reversal of charges, as applicable, associated with the Company's
previously disclosed 2023 restructuring plan. |
|
| (5) Charges or the
reversal of charges, as applicable, associated with the Company's
previously disclosed 2022 restructuring plan. |
|
| (6) Certain
non-recurring expenses in connection with the separation from the
Company of its former Chief Executive Officer. |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(IN THOUSANDS) |
|
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
|
December 28, |
|
December 30, |
|
December 28, |
|
December 30, |
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income |
|
$ |
36,873 |
|
$ |
21,254 |
|
|
$ |
104,842 |
|
$ |
89,485 |
|
|
|
Other Income (Expense), net |
|
|
4,188 |
|
|
(107 |
) |
|
|
1 |
|
|
(72 |
) |
|
|
Depreciation and
Amortization |
|
|
8,681 |
|
|
10,007 |
|
|
|
37,784 |
|
|
45,640 |
|
|
|
Stock-based Compensation |
|
|
705 |
|
|
2,346 |
|
|
|
6,671 |
|
|
11,303 |
|
|
Adjusted EBITDAS |
|
$ |
50,447 |
|
$ |
33,500 |
|
|
$ |
149,298 |
|
$ |
146,356 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
WW (NASDAQ:WW)
Gráfico Histórico do Ativo
De Fev 2025 até Mar 2025
WW (NASDAQ:WW)
Gráfico Histórico do Ativo
De Mar 2024 até Mar 2025
