Xponential Fitness, Inc. · NYSE:XPOF
Xponential Fitness — Q3 2023 Earnings Presentation
14 slides from Xponential Fitness's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 FINANCIAL RESULTS A s o f S e p t e m b e r 3 0 th, 2 0 2 3 | R e p o r t e d o n N o v e m b e r 7 th, 2023
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER The information contained in this presentation is provided solely for the purpose of acquainting the readers with Xponential Fitness, Inc. (the “Company,” “Xponential” or “we”) and its business operations, strategies and financial performance. This presentation and any accompanying
Slide 3: Q3 2023 Key Operating Metrics
Q3 2023 Key Operating Metrics(1) System-Wide Sales Same Store Sales Total Members $357M % 726K +35% YoY +15% +26% +YoY Greater Than 36 Months +15% 1) YoY comparison refers to Q3 2022. Total Members, same store sales and system-wide sales represents North America only. 3
Slide 4: North America Run-Rate Average Unit Volumes
North America Run-Rate Average Unit Volumes(1) ($000s) $561 $564 $522 $542 $477 $480 $489 $431 $446 $450 $417 $384 $287 $303 $246 $165 Q4-19 Q1-20 Q2-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-20 Q2-22 1) Quarterly Run-Rate AUV (“average unit volume”) is calculated by ta
Slide 5: North America Run-Rate AUVs ($000s)
North America Run-Rate AUVs ($000s)(1) $542 $561 $564 $522 $480 $489 $450 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Studios contributing to Run Rate AUV Open studios (end of period) 2,028 2,120 2,215 2,324 2,406 2,520 2,596 Less: studios < 6 months (205) (233) (266) (299) (289) (308) (292) Less: non
Slide 6: Same Store Sales ($000s)
Same Store Sales ($000s)(1) 47% 25% 20% 17% 17% 15% 15% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Studios contributing to Same Store Sales Open studios (end of period) 2,028 2,120 2,215 2,324 2,406 2,520 2,596 Less: studios < 13 months (281) (319) (355) (403) (414) (446) (450) Less: non-standard stu
Slide 7: Q3 2023 Key Operating Metrics: Revenue and Adj. EBITDA
Q3 2023 Key Operating Metrics(1) Revenue Adj. EBITDA $80M $27M +26% YoY +33% YoY 1) YoY comparison refers to Q3 2022. 7
Slide 8: Q3 2023 Key Operating Metrics: Global Studios and Licenses
Q3 2023 Key Operating Metrics(1) Global Studios Global Licenses 2,980 6,088 +20% YoY +17% YoY 1) YoY comparison refers to Q3 2022. 8
Slide 9: Omnichannel Approach
Omnichannel Approach Leverage scale to acquire B2B partnerships that promote new customer growth, drive system- wide sales and AUVs, and increase member benefits and retention 9
Slide 10: Income Statement
Income Statement In $ thousands, except per share amounts Q3 2023 Q3 2022 $ Difference % Change System-wide Sales (North America) $356,705 $264,837 $91,868 35% Revenue: Franchise revenue $36,425 $30,006 $6,419 21% Equipment revenue $12,564 $11,770 $794 7% Merchandise revenue $8,456 $6,264 $2,192 35%
Slide 11: Adjusted Net Earnings per Share
Adjusted Net Earnings per Share In thousands, except per share amounts Q3 2023 Q3 2022 Net income (loss) ($5,183) ($13,056) Change in fair value of contingent consideration ($1,923) $16,290 TRA remeasurement $1,845 $1,078 Write down of goodwill and brand assets $4,579 $3,656 Restructuring and relate
Slide 12: Adjusted EBITDA Margin
Adjusted EBITDA Margin In $ thousands Q3 2023 Q3 2022 Net income (loss) ($5,183) ($13,056) Interest expense, net $10,614 $2,931 Income taxes $202 ($308) Depreciation and amortization $4,216 $4,154 EBITDA $9,849 ($6,279) Equity-based compensation $3,536 $4,243 Employer payroll taxes related to equity
Slide 13: FY 2023 Guidance
FY 2023 Guidance Low Range High Range % Change vs 2022 ($ in millions) 2022 Guidance Guidance at Midpoint New Studio Openings (Global) 550 560 511 9% Prior - Q4 2022 - Q2 2023 540 560 8% System-wide Sales (North America) $1,390 $1,395 $1,033 35% Prior - Q2 2023 $1,385 $1,395 35% Prior - Q1 2023 $1,3
Slide 14: Q&A
Q&A Please see the FAQ section at investor.xponential.com for a list of commonly asked questions on our corporate structure and capitalization.