WW Reports Q4 2019, Full Year Results

Feb. 25, 2020

“2020 is off to a terrific start. The global launch of the new myWW program is resonating in every market, the WW Presents: Oprah’s 2020 Vision tour in the U.S. has been engaging sold-out crowds siad Mindy Grossman, the firm's President and CEO.  “Right now, we have more than 5 million members globally – a new all-time record for WW.”

“We ended 2019 with 4.2 million subscribers, a record level for a year-end and up 8% from the end of 2018, with subscriber growth in all of our major geographic markets,” said Nick Hotchkin, the company’s CFO, Operating Officer, North America and President.

Q4 2019 Results

  • End of Period Subscribers in Q4 2019 were up 8.0% versus the prior year period, driven by growth in all major geographic markets. Q4 2019 End of Period Digital Subscribers were up 15.1% and End of Period Studio + Digital Subscribers were down 5.8% versus the prior year period.
     
  • Total Paid Weeks in Q4 2019 were up 5.7% versus the prior year period, driven by growth in all major geographic markets.
  • Revenues in Q4 2019 were $332.6 million. On a constant currency basis, Q4 2019 revenues increased 1.5% versus the prior year period.
  •  Service Revenues in Q4 2019 were $288.7 million. On a constant currency basis, these revenues increased 0.8% versus the prior year period, primarily driven by an increase in Digital subscribers.
  • Product Sales and Other in Q4 2019 were $43.9 million. On a constant currency basis, these revenues increased 6.4% versus the prior year period, primarily due to an increase in product sales.
  • Operating Income in Q4 2019 was $65.9 million compared to $80.3 million in the prior year period. 

Full Year 2019 Results

  • Total Paid Weeks in fiscal 2019 were up 3.1% versus the prior year, driven by growth in all major geographic markets. Fiscal 2019 Digital Paid Weeks increased 10.6% and Studio + Digital Paid Weeks decreased 9.8% versus the prior year. 
     
  • Revenues in fiscal 2019 were $1,413.3 million. On a constant currency basis, fiscal 2019 revenues decreased 5.0% versus the prior year.
     
    • Service Revenues in fiscal 2019 were $1,207.3 million. On a constant currency basis, these revenues decreased 3.5% versus the prior year, primarily driven by a decrease in Studio + Digital subscribers.
       
    • Product Sales and Other in fiscal 2019 were $206.1 million. On a constant currency basis, these revenues decreased 12.8% versus the prior year, primarily due to a decrease in product sales.
       
  • Operating Income in fiscal 2019 was $288.0 million compared to $389.0 million in the prior year. 

Full Year Fiscal 2020 Guidance

The Company is providing its full year fiscal 2020 revenue guidance of approaching $1.6 billion and earnings guidance of between $2.15 and $2.40 per fully diluted share.

Fiscal 2020 includes a 53rd week, which bridges the last week of December 2020 and the first week of January 2021 (ending on January 2, 2021). 

The complete Press Release and financial tables can be found here:

https://finance.yahoo.com/news/ww-announces-fourth-quarter-full-210510101.html

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