The Beachbody Company, Inc. · NASDAQ:BODI
The Beachbody — Forest Road Acquisition — SPAC Merger (June 2021)
34 slides from The Beachbody's SPAC merger presentation, Jun 9, 2021
Slide 1: The Leading Subscription Health and Wellness Platform That Delivers Results
THE LEADING SUBSCRIPTION HEALTH AND WELLNESS PLATFORM THAT DELIVERS RESULTS 1
Slide 2: Forward-Looking Statements
This presentation (the “Presentation”) contemplates a business combination (the “Transaction”) involving Forest Road Acquisition Corp. (“FRX”), The Beachbody Company Group, LLC (“Beachbody”) and Myx Fitness Holdings, LLC (“Myx”) and, together with Beachbody, the “Target Companies” and, together with
Slide 3: The Beachbody Company Mission
Help people achieve their goals and lead healthy, fulfilling lives. TH E B EA C H B OD Y C OM P A N Y M I S S I ON 3
Slide 4: A Holistic Fitness and Nutrition Solution
A HOLISTIC FITNESS AND NUTRITION SOLUTION PROGRAMS DESIGNED TO GET PEOPLE RESULTS MANY OPPORTUNITIES FOR CUSTOMER ACQUISITION MULTIPLE WAYS TO MONETIZE CUSTOMERS THE LEADING SUBSCRIPTION HEALTH AND WELLNESS COMPANY FOR THE MASS MARKET F itness Nutrition 4
Slide 5: Where We Are Today / Where We Are Going
WHERE WE ARE TODAY $1.1B REVENUE 2021E WHERE WE ARE GOING 3.2M SUBSCRIPTIONS ACROSS NUTRITION & FITNESS Q1 2021 200M+ STREAMED VIEWS LTM Q1 2021 25 N UTRITION P R ODU C TS 2,300 STREAMING WORKOUTS 35% ENGAGEMENT ( D A U/ M A U) Q1 2021 CAPITALIZE ON DIGITAL DISRUPTION CO N N E CTE D FITNESS I N TER
Slide 6: Investment Thesis
INVESTMENT THESIS 6 1 Uniquely positioned to capitalize on the digital disruption in a large and growing TAM ▪ Center of 3 mega - trends ▪ $1.5 trillion+ TAM and growing 1 ▪ 87% of people will continue at home workouts 2 2 The complete provider of digital fitness and nutrition subscriptions for the
Slide 7: At the Center of Three Megatrends
▪ Long tail for sustainable growth Digital Subscription Connected Fitness THE BEACHBODY COMPANY Growth Consumer Health and Wellness 1 AT THE CENTER OF THREE MEGATRENDS 7
Slide 8: Expanding Addressable Market
globally are overweight or obese 3 ▪ 87 million fitness app subscribers in 2020 in the US alone 4 ▪ Digital at - home fitness spend has since surged +30 – 40% post - COVID 5 ▪ The online fitness market is expected to grow from $6B in 2019 to $59B by 2027, representing a 33% CAGR 6 1) Global Wellness
Slide 9: Structural Change to the Fitness Industry
47% of all gym members won’t return to gyms upon reopening. — RunRepeat March 2021 66% of all consumers say they prefer working out at home to the gym. — The Wall Street Journal January 2021 — Wakefield Research Study July 2020 (commission by The Beachbody Company) 87% of surveyed respondents who al
Slide 10: Three Key Revenue Drivers
DIGITAL SUBSCRIPTIONS CONNECTED FITNESS EQUIPMENT NUTRITION AND SUPPLEMENT SUBSCRIPTIONS 2 THREE KEY REVENUE DRIVERS Nutrition Fitness 10
Slide 11: Diversified Revenue Components with Significant Recurring Revenue
DIVERSIFIED REVENUE COMPONENTS WITH SIGNIFICANT RECURRING REVENUE SIGNIFICANT CASH FLOW GENERATION >$1.1B IN REVENUE (FORECASTED 2021) >65% CONSOLIDATED GROSS MARGIN ~75% SUBSCRIPTION REVENUE ~15% NON - SUBSCRIPTION ~10% CONNECTED FITNESS EQUIPMENT REINVESTING TO FUEL FUTURE GROWTH ~50% NUTRITION AN
Slide 12: Powerful Competitive Advantages
POWERFUL COMPETITIVE ADVANTAGES MULTI - PLATFORM BOD, OPENFIT, MYX, NUTRITION MASS - MARKET SCALE / EXPERTISE Highly effective, journey - based programming and nutrition provides holistic solution at attractive price points QUALITY CONTENT QUALITY CONTENT LIBRARY The deepest library of high - qualit
Slide 13: The Leader in Digital Fitness Content
¹Workout Views as of December 31, 2020 *Includes all views per franchise THE LEADER IN DIGITAL FITNESS CONTENT 2,300+ STREAMING WORKOUTS ACROSS 87 COMPLETE PROGRAMS * * * * * * 21 . 9 M 15.6M 13 . 5 M 11 . 9 M 10 . 8 M 9 . 1 M 7 . 8 M 7 . 8 M 5 . 8 M 5 . 6 M 5 . 0 M 3 . 0 M 2 . 4 M 2 . 2 M 3 2016 –
Slide 14: How We Acquire, Engage and Retain Customers
HOW WE ACQUIRE, ENGAGE, & RETAIN CUSTOMERS SOCIAL COMMERCE 400K+ micro - influencer “Coaches” Macro - influencers and celebrities Revenue - sharing opportunity PERFORMANCE MARKETING Paid advertising through Facebook, Instagram, Snapchat, TikTok, etc. TV, radio, print BRAND MARKETING ACQUISITION RETE
Slide 15: Q1 2021 Business Update
Q1 2021 BUSINESS UPDATE STRONG FIRST QUARTER REVENUE GROWTH, RECORD ENGAGEMENT LEVELS 15 FINANCIALS ▪ Total revenue was $243.3M — a 43% increase YoY ▪ Nutritional and other revenue was $131.1M — a 23% increase ▪ D igital r e v e nu e w as $97 . 5M — a 56 % i n c r ease ▪ Connected fitness revenue wa
Slide 16: Significant Opportunities to Accelerate Growth
SIGNIFICANT OPPORTUNITIES TO ACCELERATE GROWTH Significant international expansion 11M+ total subscriptions by 2025 Unlock value through organic and inorganic growth 99% of revenues from North America 3M+ total subscriptions across fitness and nutrition ~$3B Enterprise Value W HE R E W E A R E G O I
Slide 17: Financial Overview
FINANCIAL OVERVIEW 17
Slide 18: Revenue Bridge (2020A-2025E)
$0.9B $0.4B $0.9B $0.3B $0.8B $3.3B 2020 GAAP Revenue Baseline Digital Subscription and Nutrition International Growth Connected Fitness Increase 2025E FY Revenue REVENUE BRIDGE (2020A – 2025E) WHERE WE ARE GOING 18 I n t ern a t io nal Growth Germany, Mexico, C o l o m bi a , A u st r a li a , Ital
Slide 19: Transaction Summary
TRANSACTION SUMMARY PRO FORMA CAPITALIZATION AND OWNERSHIP TRANSACTION DETAILS 19 1 Shares and ownership based on fully diluted shares outstanding using the treasury stock method. 2 Expected cash at transaction close. 3 Dual class common share structure to be implemented at closing, with certain per
Slide 20: Attractive Relative Valuation
BEACHBODY HAS AN ATTRACTIVE RELATIVE VALUATION ESPECIALLY WHEN CONSIDERING ITS GROWTH PROFILE AND POSITIONING Source: FactSet as of 06/08/2021. Note: Beachbody multiples implied based on $2,970mm EV. Connected fitness reflects Peloton. Growth consumer health and wellness includes BellRing Brands, Ch
Slide 21: Appendix
APPE NDI X 21
Slide 22: Overview of Key Revenue Drivers
BOD, Openfit, MYX, and micro - influencer CRM platform Subscriptions in 2021 – 2025 period at a monthly ARPU of $117 – $140 with pricing changes due to mix - shift and higher ARPU driven by new digital and nutrition launches. Beachbody and Ladder nutrition and supplement SKUs, subscriptions, and non
Slide 23: Revenue (2018A-2025E)
REVENU E ( 2018 A – 2025 E ) HISTORICAL AND PROJECTED REVENUE ($ in millions) 23 $580 $505 $529 $560 $634 $783 $992 $1,261 $211 $251 $337 $456 $649 $879 $1,144 $1,452 $195 $296 $494 $581 $790 $756 $893 $28 $1,112 $97 $1 , 479 $1 , 958 $2 , 631 $3 , 294 2 018A 2 019A 2 020A 2 0 21E 2 0 22E 2 0 23E 2
Slide 24: Adjusted EBITDA (2018A-2025E)
ADJUSTED EBITDA (2018A – 2025E) COMMENTARY HISTORICAL AND PROJECTED ADJUSTED EBITDA $66 $74 $32 ($30) $66 $181 $348 $532 2 018A 2 019A 2 020A 2 0 21E 2 0 22E 2 0 23E 2 0 24E 2 0 25E ADJ. EBITDA % OF REVENUE 8.3% 9.8% 3.6% NM 4.5% 9.2% 13.2% 16.2% TOTAL MA RKE T ING SPEND $69 $54 $96 $156 $186 $248 $
Slide 25: Fitness
FITNESS 25
Slide 26: Entry Points for Digital Subscriptions
3 ENTRY POINTS FOR DIGITAL SUBSCRIPTIONS LEVERAGING THE POWER OF BOD AND OPENFIT WITH CONNECTED FITNESS 26
Slide 27: Beachbody on Demand
▪ The largest on - demand content library in the industry – Training programs ranging from beginner to advanced, with content across a variety of fitness verticals – Typical workout program is 4 – 6 weeks – 4+ program launches per year ▪ 400,000+ micro - influencer “Coaches,” facilitating a sense of
Slide 28: Openfit
▪ Comprehensive library of LIVE and on - demand fitness content ▪ LIVE trainer - led classes and interactions creating a boutique - fitness experience ▪ Macro - influencers and celebrity trainers, expanding the reach to broader audiences ▪ Complemented with nutrition programs and Ladder nutrition su
Slide 29: MYX Connected Fitness Bike
▪ Commercial - grade connected fitness bike for the mass market ▪ Connected fitness content driven by heart - rate zones calibrated uniquely for each member ▪ Complemented with cycling with strength, flexibility, and balance classes for a holistic at - home experience ▪ H a r d w a r e : $1,299 | S
Slide 30: Nutrition
NU TR I TI ON 30
Slide 31: Nutrition and Supplement Subscriptions Accelerate Revenue
NUTRITION AND SUPPLEMENT SUBSCRIPTIONS ACCELERATE REVENUE DIGITAL SUBSCRIPTIONS CREATE MARKETING OPPORTUNITIES $560M 1 Full year forecast for 2021E. 2021E REVENUE 1 $450 M 2021 E RE V EN U E 1 3.7M DIGITAL SUBSCRIPTIONS 1 2021E 0.4M NUTRITION SUBSCRIPTIONS AND OTHER SALES 1 2021E 31
Slide 32: Other Nutritionals and Accessories
OTHER NUTRITIONALS AND ACCESSORIES Paired with 32
Slide 33: Nutrition Products: Protein, Greens, Pre-Workout, Hydration
PLANT PROTEIN WHEY PROTEIN SUPERFOOD GREENS PRE - WORKOUT HYDRATION Paired with 33
Slide 34: The Leading Subscription Health and Wellness Platform That Delivers Results
THE LEADING SUBSCRIPTION HEALTH AND WELLNESS PLATFORM THAT DELIVERS RESULTS 34