Business
The Beachbody Company (NYSE: BODY) – Slashing $165 Million In Costs, Path To Cash Flow Positive And Benefiting From The Ozempic Wave
--News Direct--By Meg Flippin, BenzingaThe pandemic-driven Peloton Interactive Inc. (NASDAQ: PTON) craze may be over, but that doesn’t mean people aren’t
About this update from Peloton Interactive, Inc.
[{"type":"text","content":"--News Direct--By Meg Flippin, BenzingaThe pandemic-driven Peloton Interactive Inc. (NASDAQ: PTON) craze may be over, but that doesn’t mean people aren’t focused on health and wellness. Many of the trends that arose during shutdowns seem to still be in place, and that’s particularly true when it comes to working out in your living room. Despite the fact that gyms are open across the country, the online/virtual fitness market seems poised for continued growth. It is projected to grow at a CAGR of 32.7% through 2032, becoming a $250.7 billion market. In 2022, the market was worth just $14.9 billion.That presents opportunities for at-home fitness companies, and among those competing for fitness enthusiasts is The Beachbody Company, Inc. (NYSE: BODY), a leader in the at-home workout space. Going by BODi, the company has made a name for itself thanks to fitness programs like P90X, Insanity and 21 Day Fix, which seem to have devoted followings. At last count, it has a library of over 120 different workouts. That’s not the only thing BODi is known for. It also reports doing brisk business selling Shakeology and other fitness-focused supplements and drinks. Cutting Costs The company saw some tough times like most at-home fitness businesses immediately following the end of the pandemic, but it's in turnaround mode under new executive chairman Mark Goldston, and its efforts seem to be paying off. Since 2021, the company has taken $125 million of costs out of the business and has identified an additional $40 million in cost savings. That will bring the total to $165 million in aggregate in annualized cost savings since 2021. Looking further out, BODi expects selling and marketing costs as a percentage of revenue to decline 1,000 basis points to 45% by the end of 2024.“Last quarter, I told investors that our main focus is on the generation of cash in the near to midterm, and we're developing programs designed to deliver on that goal,” said Goldston during the company’s quarterly earnings call. “As a result of the $165 million in expected cost savings, along with the key elements of the turnaround plan…we believe there's a clear path to becoming cash flow positive, which would indeed be a milestone, for the turnaround effort at BODi.”Growth DriversThere are potentially several drivers of BODi’s growth. Earlier this year, BODi overhauled its ...