Weight Watchers International Inc. · Q3 2022 earnings

Briefing

WW International's Q3 2022 results were announced, revealing a decrease in revenue and an operating loss due to intangible impairment charges, but adjusted operating income exceeded expectations.

WW International reported Q3 2022 revenues of $249.7 million, a gross margin of 61.0%, and an operating loss of $254.5 million, which included $312.7 million in non-cash intangible impairment charges. Adjusted operating income, excluding these charges and restructuring costs, was $61.9 million. The company revised its full-year revenue guidance to approximately $1.04 billion and expects a GAAP diluted net loss per share between ($3.16) and ($3.21).

• Q3 2022 revenues reached $249.7 million.
• The company had 3.8 million subscribers at the end of Q3 2022.
• Gross margin for Q3 2022 was 61.0%.
• Q3 2022 operating loss was $254.5 million, impacted by significant non-cash intangible impairment charges.

Headline financials

Revenue & EPS history

The Company is revising its full year fiscal 2022 guidance, as follows: Revenues are expected to be approximately $1.04 billion, reflecting greater pressure from foreign currency and lower subscriber levels. GAAP diluted net loss per share expected to be in the range of ($3.16) to ($3.21), which incorporates a negative net impact of approximately $3.94 per diluted share from the Franchise Rights Acquired and Goodwill impairment charges described above or previously disclosed, estimated restructuring charges, and the benefit from Q2 2022 out-of-period income tax adjustments.