WW International, Inc. Announces Fourth Quarter and Full Year 2023 Results

Fourth Quarter 2023

• End of Period Subscribers of 3.8 million, including 67 thousand End of Period Clinical Subscribers
• Revenues of $206.0 million
• Gross margin of 60.6%; excluding the net impact of restructuring charges, adjusted gross margin of 61.4%
• Operating Loss of $6.0 million; excluding the net impact of restructuring charges and non-cash intangible impairment charges, adjusted operating income of $21.3 million

Full Year Fiscal 2023

• Revenues of $889.6 million
• Gross margin of 59.5%; excluding the net impact of restructuring charges, adjusted gross margin of 61.9%
• Operating Income of $22.3 million; excluding the net impact of restructuring charges, acquisition transaction costs, and non-cash intangible impairment charges, adjusted operating income of $89.5 million

Company Provides Full Year Fiscal 2024 Guidance

NEW YORK, Feb. 28, 2024 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (“WeightWatchers,” “WW,” or the “Company”) today announced its results for the fourth quarter and full year fiscal 2023.

“2023 was a pivotal year as we began transforming our business for the future. We returned WeightWatchers to year end subscriber growth – for the first time in 3 years - up 7% year-over-year,” said Sima Sistani, the Company’s CEO. “We are on track to deliver growth in total subscribers in 2024, expecting to end the year with subscribers in the range of 3.8 million to 4.0 million, including between 140 thousand and 160 thousand subscribers to our new WeightWatchers Clinic.”

“WeightWatchers is creating the category of Weight Health, and to do so requires us to go further in the transformation and expand our offerings to deliver the support, services, and treatments that many need to advance their weight loss journeys. We are making intentional choices to prioritize these initiatives that we believe will have the greatest benefit for the long-term health of our business,” continued Sistani.

“We executed against our 2023 objectives with a return to sign up and subscriber growth, record adjusted gross margin, and improved cost structure,” said Heather Stark, the Company’s CFO. “We anticipate returning to year-over-year growth in subscription revenues in the second half of 2024, and we are committed to improving margins and driving operating income growth.” 

Q4 2023 Consolidated Results

Q4 2023 Business and Financial Highlights

• End of Period Subscribers in Q4 2023 were up 7.1% versus the prior year period, driven by the Digital business and the inclusion of 67 thousand Clinical Subscribers. Q4 2023 End of Period Digital Subscribers increased 8.6% versus the prior year period. Q4 2023 End of Period Workshops + Digital Subscribers decreased 8.3% versus the prior year period. 
• Total Paid Weeks in Q4 2023 were up 6.5% versus the prior year period, driven by the Digital business and the inclusion of 719 thousand Clinical Paid Weeks. Q4 2023 Digital Paid Weeks increased 8.6% versus the prior year period. Q4 2023 Workshops + Digital Paid Weeks decreased 9.2% versus the prior year period. 
• Revenues in Q4 2023 were $206.0 million. On a constant currency basis, Q4 2023 revenues decreased 8.7% versus the prior year period. 
  • Subscription Revenues in Q4 2023 were $196.1 million. On a constant currency basis, these revenues decreased 3.6% versus the prior year period. Subscription Revenues included $13.0 million of Clinical Subscription Revenues. 
  • Product Sales and Other in Q4 2023 were $9.9 million. On a constant currency basis, these revenues decreased 55.3% versus the prior year period driven by the wind down of the consumer products business. 
• Gross Profit in Q4 2023 was $124.9 million, compared to $126.0 million in the prior year period. Adjusted gross profit in Q4 2023, which excluded the net impact of $1.5 million of restructuring charges, was $126.4 million. Adjusted gross profit in Q4 2022, which excluded the net impact of $3.1 million of restructuring charges, was $129.1 million. 
  • Gross Margin in Q4 2023 was 60.6%, as compared to 56.5% in the prior year period. Adjusted gross margin in Q4 2023 was 61.4%, up from an adjusted gross margin of 57.9% in the prior year period, primarily driven by actions to reduce the fixed cost base within the Workshops + Digital business. 
• Non-Cash Intangible Impairment Charges: During Q4 2023, the Company fully impaired the goodwill and franchise rights acquired balances for past franchise acquisitions in the Republic of Ireland and Northern Ireland, resulting in total charges of $3.6 million. 
• Operating Loss in Q4 2023 was $6.0 million, compared to operating loss of $51.8 million in the prior year period. Adjusted operating income in Q4 2023, which excluded the net impact of $23.6 million of restructuring charges and non-cash intangible impairment charges of $3.6 million, was $21.3 million. Adjusted operating income in Q4 2022, which excluded the impact of non-cash intangible impairment charges totaling $57.6 million and the net impact of $17.4 million of restructuring charges, was $23.1 million. 
• Income Tax Expense in Q4 2023 was $57.6 million, which reflected an increase in the valuation allowance to offset all U.S. deferred tax assets due to the uncertainty of realizing future tax benefits of the assets. In the prior year period, income tax was a benefit of $36.7 million. 
• Net Loss in Q4 2023 was $88.1 million compared to net loss of $35.8 million in the prior year period. 
• Diluted Net Loss per share in Q4 2023 was $1.11 compared to diluted net loss per share of $0.51 in the prior year period.
  • Certain items affect year-over-year comparability.
    • Q4 2023 diluted net loss per share incorporated the net negative impact of $1.05 per diluted share in the aggregate due to the following items:
      • $0.78 per diluted share negative tax impact due to an increase in the valuation allowance to offset all U.S. deferred tax assets due to the uncertainty of realizing future tax benefits of the assets.
      • $0.22 per diluted share net negative impact of restructuring charges.
      • $0.05 per diluted share negative impact of non-cash intangible impairment charges for franchise rights acquired and goodwill.
    • Q4 2022 diluted net loss per share incorporated the negative impact of $0.52 per diluted share in the aggregate due to the following items:
      • $0.63 per diluted share negative impact of non-cash intangible impairment charges for franchise rights acquired and goodwill.
      • $0.18 per diluted share net negative impact of restructuring charges.
      • $0.68 per diluted share positive tax impact of a legal entity restructuring that resulted in a reversal of certain deferred tax liabilities.
      • $0.38 per diluted share negative tax impact of establishing a valuation allowance to offset certain deferred tax assets due to the uncertainty of realizing future tax benefits from interest expense carryforwards.

Full Year Fiscal 2023 Consolidated Results

					% Change			% Change Adjusted for Constant Currency(1)
	Twelve Months Ended
	December 30,		December 31,
	2023		2022(7)
(in millions except percentages and per share amounts)
Subscription Revenues, net	$ 822.8		$ 919.1		(10.5%)			(10.6%)
Product Sales and Other, net	66.8		120.8		(44.7%)			(44.3%)
Revenues, net	$889.6		$1,039.8		(14.5%)			(14.5%)
Gross Profit	$529.3		$621.4		(14.8%)			(15.0%)
Non-GAAP Adjustments(1)
Net Restructuring Charges(2)	21.2		7.0
Adjusted Gross Profit(1)	$550.5		$628.4		(12.4%)			(12.6%)
Operating Income (Loss)	$22.3		($284.0)		100.0%*			100.0%*
Non-GAAP Adjustments(1)
Franchise Rights Acquired and Goodwill Impairments	3.6		396.7
Net Restructuring Charges(2)	54.9		39.7
Acquisition Transaction Costs	8.6		-
Adjusted Operating Income(1)	$89.5		$152.5		(41.3%)			(42.7%)
Net Loss	($112.3)		($256.9)		(56.3%)			(55.8%)
EPS	($1.46)		($ 3.65)		(59.9%)			(59.4%)
Total Paid Weeks	207.2		215.7		(3.9%)			N/A
Digital(3) Paid Weeks	167.9		175.8		(4.5%)			N/A
Workshops + Digital(4) Paid Weeks	37.7		39.9		(5.3%)			N/A
Clinical(5) Paid Weeks	1.6		-		N/A			N/A
End of Period Subscribers(6)	3.8		3.5		7.1%			N/A
Digital Subscribers	3.1		2.8		8.6%			N/A
Workshops + Digital Subscribers	0.7		0.7		(8.3%)			N/A
Clinical Subscribers	0.1	By: GlobeNewswire - 28 Feb 2024 Return to news Partners Upcoming Life Sciences Events October 2024 Copenhagen: LSX Nordic Congress Basel: BiotechX Europe 2024 Amsterdam: World Drug Safety Congress Europe See Events » Add an Event » Latest company news Eton Pharmaceuticals, Inc to Acquire Increlex® (mecasermin injection) from Ipsen 03 Oct 2024 (GlobeNewswire) Microbix Achieves Essential EU Regulatory Accreditations 03 Oct 2024 (GlobeNewswire) BioCryst Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4) 03 Oct 2024 (GlobeNewswire) About Biotechgate The USA Life Sciences Database is a product of Venture Valuation and part of the global Life Sciences lead generation and intelligence platform Biotechgate. Our mission is to provide up-to-date company and business information of the Biotech, Pharma and Medtech sectors to professionals everywhere, in order to support them in identifying the most appropriate business partners, customers and suppliers. Visit our global portal: www.biotechgate.com © Venture Valuation Follow us: