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Dec 31, 2022
Xponential Fitness Q4 2022 Earnings Report
Xponential Fitness reported a 44% increase in Q4 2022 revenue and a 38% increase in North America system-wide sales compared to Q4 2021. The company exceeded its full-year guidance, sold 1,026 franchise licenses, and opened 511 new studios in 2022.
Key Takeaways
Xponential Fitness announced strong Q4 2022 results, with a 44% increase in revenue and a 38% increase in North America system-wide sales compared to Q4 2021. The company's momentum continued into the new year, with its membership base reaching 600,000 in January. Xponential Fitness provided full-year 2023 guidance, expecting continued growth in net new studio openings, system-wide sales, revenue, and Adjusted EBITDA.
Revenue grew by 44% to $71.3 million compared to Q4 2021.
North America system-wide sales increased by 38% to $294.1 million compared to Q4 2021.
North America same-store sales grew by 17% compared to 53% in the prior year.
North America quarterly run-rate average unit volume (AUV) was $522,000 compared to $446,000 in the prior year.
Xponential Fitness
Xponential Fitness
Forward Guidance
The Company is initiating full-year 2023 outlook, which compares to 2022 results as follows:
Positive Outlook
- Net new studio openings in the range of 540 to 560, or an increase of 8% at the midpoint.
- North America system-wide sales in the range of $1.34 billion to $1.35 billion, or an increase of 30% at the midpoint.
- Revenue in the range of $285.0 million to $295.0 million, or an increase of 18% at the midpoint.
- Adjusted EBITDA in the range of $101.0 million to $105.0 million, or an increase of 39% at the midpoint.
- Tax rate in the mid-to-high single digits.
Challenges Ahead
- $1.9 million in quarterly dividends paid related to the Company’s Convertible Preferred Stock.
- Share count of 32.3 million shares of Class A Common Stock for the GAAP EPS and Adjusted EPS calculations.
- High variability, complexity and low visibility with respect to certain items such as taxes, TRA remeasurements, and income and expense from changes in fair value of contingent consideration from acquisitions.
- Potential unpredictable and potentially significant impact on future GAAP financial results.
- Any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.