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Oct 01, 2022
Weight Watchers Q3 2022 Earnings Report
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.
Key Takeaways
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.
Forward Guidance
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.
Positive Outlook
- Run-rate savings are expected to be $40 million.
- In-year fiscal 2022 run-rate savings are expected to approach $20 million.
- Revised full year fiscal 2022 guidance
Challenges Ahead
- 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.
Historical Earnings Impact
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