Feb. 27, 2025
WW reported its Q4 and full year 2024 results today.
The company’s Board of Directors named Interim President and CEO Tara Comonte, to a permanent role as President and CEO, 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.
Fourth Quarter 2024 Financial Highlights
Total End of Period Subscribers of 3.3 million, including 92 thousand End of Period Clinical Subscribers
Revenues of $184.4 million; Subscription Revenues down 7.3% vs. prior year period, including Clinical Subscription Revenues of $20.5 million, up 57.9% vs. prior year period
Gross Margin of 69.7%, up 906 basis points vs. prior year period.
Full Year Fiscal 2024 Financial Highlights
Revenues of $785.9 million, down by 11.7%; Subscription Revenues down 5.6% vs. prior year, including Clinical Subscription revenues of $78.0 million
Gross Margin of 67.8%, up 833 basis points vs. prior year; Adjusted Gross Margin of 68.5%, up 659 basis points vs. prior year
Operating Loss of $236.2 million.
The company is not providing full year fiscal 2025 guidance at this time
Conference Call Information:
Management reported that WW ended the year with 92,000 Clinical subscribers. They produced revenues of $78 million. This is significantly lower than the forecast about a year ago of 160,000 subscribers. Gross margins remain near highs at more than 69%. The company is continuing with its aggressive cost controls and has $53 million of cash on hand. WW will scrutinize its marketing spend closely and may scale it back somewhat. Management is evaluating the situation with the compounded GLP-1 drugs and the end of the semaglutide shortage. They may go back to the branded meds if needed.
DietBusinessWatch Commentary
With an 11.7% decline in revenues for the year, WW has performed well versus its competitors. Medifast, by contrast, saw revenues plunge by 45% in 2024. We would still like some color on what’s happening in WW’s European, non-U.S. markets. No information has been available for a while, frustrating. With revenues of $786 million last year, WW regains the #1 position as the largest weight loss company, beating Medfast’s $602 million. The fact that WW did not achieve its target of 160,000 clinical subscribers shows how difficult it has been for dieters to adjust to the firm’s embrace of a drug-based plan. It also may reveal that there are many other places where dieters can get the meds, without WW (their physician, telemedicine companies, med spas, medical weight loss chains, etc.).
For More Analyses of the Weight Loss Market…
Marketdata LLC has just published a new 154-page report: “The U.S. Medical Weight Loss Market: Impact of GLP-1s on MDs, Hospitals, Clinics & Franchises”, Feb. 2025. This is a comprehensive analysis of how the GLP-1s boom has affected the operations of MDs with weight loss programs, medical weight loss chains and franchises, the bariatric surgery market, programs of bariatricians, and VLCD programs, and telemedicine providers, as well as commercial program competitors. Market segments $ size from 2012-2028 forecasts. The report costs $1,495 and may be purchased online at marketdataenterprises.com. A Table of Contents is available there.