NASDAQ$WW

Weight Watchers International Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

WW International's Q2 2021 results were announced, with revenues of $311 million and end of period subscribers of 4.9 million.

WW International announced its Q2 2021 results, reporting revenues of $311 million and GAAP EPS of $0.12. The company ended the quarter with 4.9 million subscribers, including 4.1 million digital subscribers. The company is expecting revenue to approach $1.3 billion and GAAP EPS in the range of $1.10 to $1.25 for fiscal year 2021.

  • Q2 2021 revenues were $311 million.
  • End of period subscribers totaled 4.9 million.
  • End of period digital subscribers increased 6% year-over-year.
  • Gross margin was 60%, with adjusted gross margin increasing 100 basis points year-over-year to 61%.

Headline financials

Total Revenue

$311M

Previous: $334M-6.7%
EPS (adj)

$0.48

Previous: $0.67-28.4%
End of Period Subscribers

4.9M

Previous: 5.0M-2.0%
Capital Expenditures

-$984K

Previous: -$19.3M+94.9%
Free Cash Flow

$7.88M

Previous: -$5.34M+247.4%
Net Income

$8.86M

Previous: $14M-36.7%
Operating Income

$59.7M

Previous: $51M+17.0%
Gross Profit

$186M

Previous: $195M-4.4%
Cash & Equivalents

$126M

Previous: $150M-16.5%
Total Assets

$1.44B

Previous: $1.47B-2.3%

Revenue & EPS history

Weight Watchers · Revenue · Quarterly

$311M

Q2 2021-6.7%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Weight Watchers · $273M total across 1 segment · Q2 2021

  • Subscription Revenues
    $273M

Forward guidance

The Company is providing the following full year fiscal 2021 guidance: Revenue to approach $1.3 billion. GAAP EPS in the range of $1.10 to $1.25 per fully diluted share, incorporating an approximately $0.53 aggregate negative impact from the early extinguishment of debt and estimated restructuring charges in fiscal 2021.

Tailwinds

  • Revenue to approach $1.3 billion.
  • Subscriber trends in Q2 followed a more typical seasonal pattern.
  • Gross margin performance remains strong.
  • Benefits from flexible, subscription-based digital model.
  • Comprehensive plan to optimize financial performance in the second half of the year.

Headwinds

  • Approximately $0.53 negative impact from debt extinguishment and restructuring.
  • Subscriber trends in Q2 followed a more typical seasonal pattern than expected.
  • Momentum in Digital slowed in the second quarter.
  • Decline in End of Period Workshops + Digital subscribers.
  • Decline in Workshops + Digital Paid Weeks.

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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