- The stock price of WW International Inc (NASDAQ: WW) increased from $27.58 to $34.73 (up 25.92%) today. This is why it happened.
The stock price of WW International Inc (NASDAQ: WW) increased from $27.58 to $34.73 (up 25.92%) today. Investors are responding positively to the company’s first quarter of 2021.
— Revenues in Q1 2021 were $331.8 million. On a constant currency basis, Q1 2021 revenues decreased 19.7% versus the prior-year period.
— The subscription revenues in Q1 2021 were $279.8 million. And on a constant currency basis, these revenues decreased 16.5% versus the prior-year period, primarily driven by declines in Workshops + Digital Fees as a result of the closure of studios and reduced operations related to COVID-19.
— Gross Profit in Q1 2021 was $193.4 million. And adjusted gross profit in Q1 2021 was $198.6 million, which excluded $5.2 million in charges associated with the company’s 2021 organizational restructuring plan. Gross profit in Q1 2020 was $211 million.
— The gross margin in Q1 2021 was 58.3%. Adjusted gross margin was 59.9%, up from 52.7% in the prior-year period driven primarily by a mix shift to the company’s higher-margin Digital business and cycling against the net profit from the WW Presents: Oprah’s 2020 Vision tour.
— The operating income in Q1 2021 was $2.8 million. And adjusted operating income in Q1 2021, which excluded $5.5 million in charges associated with the company’s 2021 organizational restructuring plan, was $8.4 million.
— The operating income in Q1 2020 was $24.9 million. Adjusted operating income in Q1 2020, which excluded the $3.7 million goodwill impairment charge related to the decision to shift to an exclusively Digital business in Brazil, was $28.5 million.
— Effective Tax Rate in Q1 2021 was 30%, compared to 9.7% in the prior year period.
— Net Loss in Q1 2021 was $18.2 million compared to a net loss of $6.1 million in the prior year period.
— Net loss per fully diluted share in Q1 2021 was $0.26 compared to a loss of $0.09 in the prior year period.
KEY QUOTES:
“WW had a strong start to the year, ending Q1 with 5.0 million subscribers, record Digital subscribers, and member retention remaining at an all-time high of over 10 months. Today, we are the world’s leading weight loss and wellness digital subscription platform with multiple membership verticals and diverse revenue streams, creating a healthier, more profitable and more sustainable business model. Our continued digital transformation to a personalized, technology experience company was clearly evident in our first quarter results with our high-margin Digital membership growth driving performance and positioning us for subscriber, revenue and profit growth over the balance of 2021.”
— Mindy Grossman, the company’s President and CEO
“Our first quarter performance was ahead of our expectations, with margin expansion driven by Digital growth and continued cost management in our Workshops business. In addition, our recent refinancing has further strengthened our balance sheet and significantly lowered our interest rates. As the world reopens, we will continue to take decisive actions to capitalize on consumer trends, flex our cost structure to meet demand, and position WW for accelerated momentum.”
— Amy O’Keefe, the company’s CFO
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
