Feb. 26, 2021
Weight Watchers reported results of the 4th quarter and full tear 2020.
Management said that:
"...Our new membership tier, Digital 360, is being enthusiastically received by members and is building subscriber momentum. Today, WW is the leading weight loss and wellness digital subscription platform, with multiple membership verticals and revenue streams, creating a healthier and more sustainable business model.”
Amy O’Keefe, the Company’s CFO, said, “We had a strong finish to a year with unique challenges, driven by the growth of our Digital business with fourth quarter Digital end of period subscribers up 24% year-over-year. Our attractive Digital business model, the continued shift in subscriber mix and strong cost discipline enabled us to expand adjusted gross margin to over 61% in the quarter. We ended 2020 well-positioned to navigate a dynamic environment and drive cash flow and shareholder value.”
- FY 2020 End of Period Subscribers up 4% year-over-year to 4.4 million, an all-time year-end high
- FY 2020 End of Period Digital Subscribers up 24% year-over-year to an all-time year-end high
- Q4 2020 Revenues of $323 million, down 3%, or 5% on a constant currency basis, year-over-year
- FY 2020 Revenues of $1.4 billion, down 3% year-over-year on an actual and on a constant currency basis
- Q4 2020 Gross Margin of 56.3%
Full Year 2020 highlights:
- Total Paid Weeks in fiscal 2020 were up 8.2% versus the prior year, driven by Digital Subscriber growth in all major geographic markets. Fiscal 2020 Digital Paid Weeks increased 22.7% and Workshops + Digital Paid Weeks decreased 22.7% versus the prior year.
- Revenues in fiscal 2020 were $1,378.1 million. On a constant currency basis, fiscal 2020 revenues decreased 2.8% versus the prior year.
- Subscription Revenues in fiscal 2020 were $1,186.5 million.
- Product Sales and Other in fiscal 2020 were $191.6 million. On a constant currency basis, these revenues decreased 7.2% versus the prior year, primarily driven by declines in product sales as a result of the closure of studios and reduced operations related to COVID-19.
WW has made the necessary shift to virtual meetings and online services in a difficult year that saw a pandemic and recession. To achieve that and only post a 2.8% decline in revenue says a lot about the inherent strength of the company. It is well diversified geographically and via its mix of in-person and virtual channels. The company should see better results his year as we move past the pandemic and dieters return to weight loss centers and the economy and disposable income improves.
The complete Press Release and all financial tables for Q4 and the full year can be seen here:
For More Insights About Commercial Weight Loss Centers and Weight Loss Market Forecasts, watch for Marketdata's upcoming newly revised report: "The U.S. Weight Loss & Diet Control Market, due out in early-mid March. See www.marketdataenterprises.com for a Table of Contents and to order the study. Or call: 813-971-8080, M-F, 9-5.