NASDAQ$WW

Weight Watchers International Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

WW International's Q1 2024 results were announced, revealing a mix of subscriber trends and financial adjustments.

WW International reported Q1 2024 revenues of $206.5 million. The company's end-of-period subscribers remained steady at 4.0 million, including 91,000 clinical subscribers. The company experienced an operating loss of $269.3 million, primarily due to non-cash intangible impairment charges, but adjusted operating loss was $5.6 million excluding these charges and restructuring costs.

  • End of period subscribers totaled 4.0 million, which included 91,000 clinical subscribers.
  • Revenues reached $206.5 million.
  • Operating loss was $269.3 million, impacted by $258.0 million in non-cash intangible impairment charges.
  • The company is maintaining its revenue guidance for 2024, anticipating a return to year-over-year growth in subscription revenues.

Headline financials

Total Revenue

$207M

Previous: $242M-14.6%
EPS

-$4.39

Previous: -$0.14-3035.7%
End of Period Subscribers

4.0M

Previous: 4.0M+0.1%
End of Period Behavioral Subscribers

3.9M

No prior period
End of Period Clinical Subscribers

87.0K

No prior period
Capital Expenditures

-$476K

Previous: -$990K+51.9%
Free Cash Flow

-$348M

Previous: -$120M-191.1%
Net Income

-$348M

Previous: -$119M-193.1%
Operating Income

-$269M

Previous: -$28.6M-842.3%
Gross Profit

$138M

Previous: $120M+15.3%
Cash & Equivalents

$66.6M

Previous: $141M-52.7%
Total Assets

$654M

Previous: $974M-32.8%
Stock-Based Comp

$2.4M

Previous: $2.67M-10.0%

Revenue & EPS history

Weight Watchers · Revenue · Quarterly

$207M

Q1 2024-14.6%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Weight Watchers · $203M total across 1 segment · Q3 2023

  • Subscription Revenues
    $203M

Forward guidance

The company provided an update to its full year fiscal 2024 guidance, maintaining its revenue outlook and adjusting operating income expectations.

Tailwinds

  • Revenue guidance maintained in the range of $830.0 million to $860.0 million.
  • Adjusted operating income is expected to be in the range of $100.0 million to $110.0 million, excluding certain charges.
  • Guidance reflects a $55 million year-over-year headwind from the strategic decision to wind down the Company’s low-margin consumer products business.
  • Company expects to end the year with total subscribers in the range of 3.8 million to 4.0 million.
  • Company expects between 140 thousand and 160 thousand subscribers to our new WeightWatchers Clinic.

Headwinds

  • Operating loss is expected to be in the range of $163.7 million to $153.7 million.
  • Revenue guidance reflects a $55 million year-over-year headwind from the strategic decision to wind down the Company’s low-margin consumer products business.
  • The company recorded non-cash impairment charges of franchise rights acquired totaling $258.0 million.
  • Q1 2024 End of Period Workshops + Digital Subscribers decreased 16.7% versus the prior year period.
  • On a constant currency basis, Q1 2024 revenues decreased 14.9% versus the prior year period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports

Historical avg

-1.5%

Avg return

Earnings day

-16.3%

Avg return

5 days after

-12.9%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+63.1%

Q4 2022

Best reaction

-44.1%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-22.5%-18.2%+37.4%
Q4 2025+0.7%-16.2%-48.7%
Q3 2025+4.0%-14.4%-27.4%
Q1 2025-44.1%
Q4 2024-19.9%
Q3 2024-11.2%
Q2 2024-20.9%
Q1 2024+14.2%
Q4 2023-14.5%
Q3 2023-8.5%
Q2 2023-24.9%
Q1 2023+25.9%
Q4 2022+63.1%
Q3 2022-2.6%
Q2 2022-21.3%
Q1 2022+0.8%
Q4 2021+1.3%
Q3 2021+3.4%
Q2 2021-21.3%
Q1 2021+33.0%
Q3 2020-4.4%
Q2 2020-9.1%
Q1 2020+18.5%
Q4 2019-15.3%
Q3 2019-11.6%
Q2 2019+40.0%
Q1 2019+15.4%
Q4 2018-34.1%
Q3 2018-27.2%
Q2 2018-14.2%
Q1 2018-4.0%
Q4 2017-5.6%
Q3 2017+13.9%
Q2 2017+24.6%
Q1 2017+8.7%
Q4 2016+40.2%
Q3 2016+7.2%
Q2 2016-0.2%
Q1 2016+1.7%
Q4 2015-28.3%
Q3 2015+38.7%
Q2 2015+21.1%
Q1 2015-12.6%
Q4 2014-35.6%
Q3 2014-9.1%
Q2 2014+9.4%
Q1 2014+15.5%
Q4 2013-25.5%
Q3 2013-18.7%
Q2 2013-19.9%
Q1 2013+1.1%
Q4 2012-16.7%
Q3 2012+15.8%
Q2 2012-15.7%
Q1 2012+0.6%
Q4 2011-1.9%
Q3 2011+5.1%
Q2 2011+1.9%
Q4 2009-0.2%
Q1 2011+1.1%
Q3 2010+2.8%
Q2 2010-0.6%
Q4 2010-0.6%
Q1 2010-1.5%

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