Business
The Beachbody Company Evolves Core Business Model with Updated Omnichannel Approach Focused on Accelerating Path to Profitable Growth
Reduces costs, broadens distribution channels, and is expected to lower revenue break-even point1 by approximately ~47% Transitions from MLM to a
About this update from The Beachbody Company, Inc.
[{"type":"text","content":"\nReduces costs, broadens distribution channels, and is expected to lower revenue break-even point1 by approximately ~47%\n\n\nTransitions from MLM to a single-level Affiliate Program, launching Nov 1, 2024\n\n\nExpands its current direct-to-consumer, Amazon, and partnership-driven sales channels\n\n\nExpects to significantly improve revenue break-even point, decreasing from less than $430 million in annual revenue to less than $225 million\n\n\nReduces its workforce by approximately 33 percent, anticipating overhead savings of $54 million on an annualized run-rate basis\n\n\n EL SEGUNDO, Calif.--(BUSINESS WIRE)--\nThe Beachbody Company, Inc. (NYSE: BODI) (or “the Company” or “BODi”), a leading fitness and nutrition company, today announced the evolution of its core business model with an omnichannel sales channel approach that will streamline operations and better position the Company for future profitable growth. As a result of this restructuring, BODi will reduce costs, broaden its distribution channels, and significantly lower its revenue break-even point.\n\nNew Business Model\n\nAs part of its strategic shift to optimize its omnichannel distribution platform, BODi will transition from its current Multi-Level Marketing (MLM) Network channel to a single-level Affiliate Program, which will launch November 1, 2024. Current participants in the Team BODi Partner Network in the United States and Canada will transition to the new Affiliate Program that is focused on being more productive and rewarding for a larger group of sellers. BODi’s MLM Network will begin winding down and is expected to be fully wound down by January 1, 2025.\n\n“The first phase of our turnaround is centered on lowering our infrastructure costs and re-architecting our financial model,” Mark Goldston, Executive Chairman of BODi, said. “We have successfully accomplished that goal – we’ve lowered our revenue break-even point by more than $400 million, have reduced our net losses and generated positive Adjusted EBITDA over the last three quarters. The next phase of our journey is to optimize and broaden our points of distribution by converting the existing MLM to a single-level affiliate network, and expanding our direct-to-consumer, Amazon and partnership-driven sales channels, which we believe will further open the sales aperture and diversify our revenue sour...