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Mar 31, 2024

Life Time Q1 2024 Earnings Report

Life Time's financial performance demonstrated strong growth, driven by increased membership and in-center revenue.

Key Takeaways

Life Time reported a 16.8% increase in revenue to $596.7 million, driven by strong growth in membership dues and in-center revenue. Net income decreased slightly to $24.9 million, while Adjusted EBITDA increased by 21.6% to $146.0 million. The company raised its full-year revenue and Adjusted EBITDA guidance.

Revenue increased by 16.8% to $596.7 million.

Center memberships increased by 5.0% compared to March 31, 2023.

Net income decreased to $24.9 million, primarily due to one-time benefits in the prior year.

Adjusted EBITDA increased by 21.6% to $146.0 million.

Total Revenue
$597M
Previous year: $511M
+16.8%
EPS
$0.15
Previous year: $0.1
+50.0%
Comparable Center Sales
11.1%
Previous year: 24.6%
-54.9%
Net New Center Openings
1
Previous year: 3
-66.7%
Total Centers (end of period)
172
Previous year: 164
+4.9%
Gross Profit
$193M
Previous year: $237M
-18.4%
Cash and Equivalents
$36.7M
Previous year: $35.3M
+3.9%
Free Cash Flow
-$66.4M
Previous year: -$96.5M
-31.2%
Total Assets
$7.09B
Previous year: $6.74B
+5.3%

Life Time

Life Time

Life Time Revenue by Segment

Forward Guidance

Life Time raised its full-year 2024 revenue guidance to $2.500 - $2.530 billion and Adjusted EBITDA guidance to $603 - $618 million.

Positive Outlook

  • Revenue: $2,500 - $2,530 million
  • Adjusted EBITDA: $603 - $618 million
  • Rent: $300 - $312 million
  • Being free cash flow positive beginning in the second quarter
  • Further improving our balance sheet

Challenges Ahead

  • Uncertainty in predicting non-cash expenses
  • Difficulty in predicting material and/or non-recurring expenses or benefits
  • Challenges in forecasting legal settlements or other matters
  • Variability of certain tax positions
  • Potential impact on future GAAP financial results

Revenue & Expenses

Visualization of income flow from segment revenue to net income