Xponential Fitness, Inc. · NYSE:XPOF
Xponential Fitness — Q2 2023 Earnings Presentation
14 slides from Xponential Fitness's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Financial Results
Q2 2023 FINANCIAL RESULTS A s o f J u n e 3 0 th, 2 0 2 3 | R e p o r t e d o n A u g u s t 3 rd, 2 0 2 3
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: Q2 2023 Key Operating Metrics
Q2 2023 Key Operating Metrics(1) System-Wide Sales Same Store Sales Total Members $341M % 697K +37% YoY +15% +29% +YoY Greater Than 36 Months +16% 1) YoY comparison refers to Q2 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 $522 $542 $477 $480 $489 $431 $446 $450 $417 $384 $287 $303 $246 $165 Q3-20 Q1-23 Q4-19 Q1-20 Q2-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q2-23 1) Quarterly Run-Rate AUV (“average unit volume”) is calculated by taking the av
Slide 5: North America Run-Rate AUVs ($000s)
North America Run-Rate AUVs ($000s)(1) $542 $561 $522 $480 $489 $450 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Open studios (end of period) 2,028 2,120 2,215 2,324 2,406 2,520 Less: studios < 6 months (205) (233) (266) (299) (289) (308) Less: non-standard studios 0 0 0 (3) (7) (9) Less: studios at $0 (6)
Slide 6: Same Store Sales ($000s)
Same Store Sales ($000s)(1) 47% 25% 20% 17% 17% 15% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Open studios (end of period) 2,028 2,120 2,215 2,324 2,406 2,520 Less: studios < 13 months (281) (319) (355) (403) (414) (446) Less: non-standard studios 0 0 0 0 (3) (5) Less: studios w/o 13 mo consecutive sales
Slide 7: Q2 2023 Key Operating Metrics
Q2 2023 Key Operating Metrics(1) Revenue Adj. EBITDA $77M $25M +30% YoY +43% YoY 1) YoY comparison refers to Q2 2022. 7
Slide 8: Q2 2023 Key Operating Metrics
Q2 2023 Key Operating Metrics(1) Global Studios Global Licenses 2,892 5,872 +23% YoY +19% YoY 1) YoY comparison refers to Q2 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 benefit and retention 9
Slide 10: Income Statement
Income Statement In $ thousands, except per share amounts Q2 2023 Q2 2022 $ Difference % Change System-wide Sales (North America) $341,297 $249,781 $91,516 37% Revenue: Franchise revenue $35,133 $27,622 $7,511 27% Equipment revenue $14,428 $12,381 $2,047 17% Merchandise revenue $8,401 $6,753 $1,648
Slide 11: Adjusted Net Earnings (Loss) per Share
Adjusted Net Earnings (Loss) per Share In thousands, except per share amounts 2023 2022 Net income $27,524 $31,477 Change in fair value of contingent consideration ($31,252) ($31,627) TRA remeasurement $698 $244 Write down of brand assets $7,238 $0 Adjusted net income $4,208 $94 Adjusted net income
Slide 12: Adjusted EBITDA Margin
Adjusted EBITDA Margin In $ thousands Q2 2023 Q2 2022 Net income $27,524 $31,477 Interest expense, net $8,098 $2,448 Income taxes $133 $2,217 Depreciation and amortization $4,288 $3,579 EBITDA $40,043 $39,721 Equity-based compensation $6,055 $4,429 Employer payroll taxes related to equity-based comp
Slide 13: FY 2023 Guidance
FY 2023 Guidance Low Range High Range % Change vs 2022 ($ in millions) 2022 Guidance Guidance at Midpoint New Studio Openings (Global) 540 560 511 8% System-wide Sales (North America) $1,385 $1,395 $1,033 35% Prior - Q1 2023 $1,370 $1,380 33% Prior - Q4 2022 $1,340 $1,350 30% Revenue $295 $305 $245
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.