BowFlex Inc (BFX) 2022 Q2 法說會逐字稿

Greetings, ladies and gentlemen, and welcome to the Nautilus, Inc. Second Quarter 2021 (sic) [Second Quarter 2022] Earnings Conference Call. (Operator Instructions) It is now my pleasure to introduce your host, Mr. John Mills. Thank you. You may begin.

女士們、先生們，大家好，歡迎參加 Nautilus, Inc. 2021 年第二季度（原文如此）[2022 年第二季度]收益電話會議。 （操作員說明） 現在我很高興向大家介紹你們的主人約翰·米爾斯先生。謝謝。你可以開始了。

Great. Thank you, Jen. Good afternoon, everyone. Welcome to Nautilus' Second Quarter Fiscal 2022 Conference Call. Participants on the call today from Nautilus are Jim Barr, Chief Executive Officer; and Aina Konold, Chief Financial Officer. Please note this call is being webcast and will be available for replay for the next 14 days. We'll be happy to take your questions at the conclusion of our prepared remarks. Our earnings press release was issued today at 1:05 p.m. Pacific Time and may be downloaded from our website at nautilusinc.com on the Investor Relations page.

偉大的。謝謝你，珍。大家下午好。歡迎參加 Nautilus 2022 財年第二季度電話會議。今天參加 Nautilus 電話會議的包括首席執行官吉姆·巴爾 (Jim Barr)；和首席財務官艾娜·科諾德。請注意，本次電話會議正在網絡直播，並將在未來 14 天內重播。在我們準備好的發言結束後，我們很樂意回答您的問題。我們的收益新聞稿於今天下午 1:05 發布。太平洋時間，可從我們的網站 nautilusinc.com 的投資者關係頁面下載。

The earnings release including a reconciliation of the non-GAAP financial measures mentioned in today's call to the most directly comparable GAAP measures. Please note unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2020.

收益發布包括今天電話會議中提到的非公認會計原則財務指標與最直接可比的公認會計原則指標的調節。請注意，除非另有說明，本次電話會議中的所有比較都將與我們 2020 年同期的結果進行比較。

For today's call, we have a presentation that management will refer to during their prepared remarks. On Slide 2 is our full safe harbor statement, which we ask everyone to read. You can access the presentation by going to nautilusinc.com, then click on the Investors tab and then click on the Events and the webcast and the presentation will be there.

對於今天的電話會議，我們有一個演示文稿，管理層將在準備好的發言中參考。第 2 張幻燈片是我們完整的安全港聲明，我們要求每個人都閱讀。您可以訪問 nautilusinc.com 來訪問演示文稿，然後單擊“投資者”選項卡，然後單擊“活動”和網絡廣播，然後就會出現演示文稿。

I would like to remind everyone that during the conference call, Nautilus management will make certain forward-looking statements. These forward-looking statements are based upon beliefs of management and information currently available to us as of today. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control and ability to predict. For additional information concerning these factors, please refer to the safe harbor statement and to our SEC filings, which can be found in the Investor Relations section of our website.

我想提醒大家的是，在電話會議期間，鸚鵡螺管理層將做出某些前瞻性陳述。這些前瞻性陳述基於管理層的信念和我們目前掌握的信息。此類前瞻性陳述並不能保證未來業績，因此，不應過度依賴它們。我們的實際結果將受到已知和未知的風險、趨勢、不確定性以及超出我們控制和預測能力的因素的影響。有關這些因素的更多信息，請參閱安全港聲明和我們的 SEC 文件，這些文件可以在我們網站的投資者關係部分找到。

And with that, it is my pleasure to turn the call over to Nautilus' CEO, Jim Barr.

至此，我很高興將電話轉給 Nautilus 首席執行官吉姆·巴爾 (Jim Barr)。

Thank you, John, and thank you all for joining us. Today, I'll begin with some thoughts on the home fitness market dynamics over the past 18 months and the outlook going forward as context then cover our financial performance in the quarter and the first half. Next, I'll discuss our strong progress on our North Star strategy, including JRNY. I'll end with our plans to further accelerate our investments in JRNY and in marketing.

謝謝你，約翰，也感謝大家加入我們。今天，我將首先對過去 18 個月的家庭健身市場動態和未來前景進行一些思考，然後介紹我們本季度和上半年的財務業績。接下來，我將討論我們在北極星戰略（包括 JRNY）方面取得的強勁進展。最後我將介紹我們進一步加快對 JRNY 和營銷投資的計劃。

You've heard us talk in detail over the past 18 months about the dramatic expansion in the size of our SAM, 2x to 3x by our most recent estimates. This kind of industry growth is very rare and underscores our strong opportunity as the #3 in market share. There is strong evidence that much of this market expansion may be permanent because the principal driver is profound and fundamental secular changes in workout attitudes and habits that favor home fitness. Our frequent surveys continue to indicate that 25% of former gym goers do not intend to ever go back to the gym and that others who say they will return to the gym plan to work out more often at home than they did pre-pandemic due to remote or hybrid work models. Workout place is highly correlated with workplace.

您已經聽到我們在過去 18 個月中詳細談論了 SAM 規模的急劇擴大，根據我們最近的估計，規模擴大了 2 倍到 3 倍。這種行業增長非常罕見，突顯了我們作為市場份額第三名的強大機會。有強有力的證據表明，這種市場擴張在很大程度上可能是永久性的，因為主要驅動力是有利於家庭健身的鍛煉態度和習慣的深刻而根本的長期變化。我們的頻繁調查繼續表明，25% 的前去健身房的人不打算再去健身房，而其他表示將重返健身房的人計劃比大流行前更頻繁地在家鍛煉，因為遠程或混合工作模式。鍛煉地點與工作場所高度相關。

We are seeing these changes and attitudes play out in consumer behavior. For example, in a recent study we commissioned, 66% of respondents report that they work out at home versus 43% pre-pandemic. Connected fitness and our transformation are still in early innings. I'm proud that we have positioned ourselves well during the pandemic for post-pandemic success. We now have a portfolio of new connected products, a strengthened JRNY digital offering with a growing member base, stronger consumer targeting, expanded omnichannel distribution and a stronger team. It is remarkable what we have accomplished in the last 2 years. I'll talk more about that a bit later.

我們看到這些變化和態度在消費者行為中體現出來。例如，在我們最近委託進行的一項研究中，66% 的受訪者表示他們在家鍛煉，而疫情爆發前這一比例為 43%。互聯健身和我們的轉型仍處於早期階段。我感到自豪的是，我們在大流行期間為大流行後的成功做好了充分的準備。我們現在擁有一系列新的互聯產品、更強大的 JRNY 數字產品、不斷增長的會員基礎、更強大的消費者定位、擴大的全渠道分銷和更強大的團隊。我們在過去兩年中所取得的成就是令人矚目的。稍後我會詳細討論這一點。

Now I'll briefly speak to our second quarter and first half financial results. In the second fiscal quarter of 2022, net sales were $138 million, which represents nearly 125% growth versus 2 years ago. Our net sales were $155 million in the same period last year. The primary driver of our miss to guidance was due to global shipping challenges beyond our control that affected the end of quarter cutoff. Specifically, we would have met our guidance of $145 million to $155 million if just a portion of the $22 million of FFO finished good inventory we had ready and waiting on the dock for retail customers had been picked up. There are a variety of reasons for the delay in pickup, including retailers' inability to secure containers in time. In fact, $12 million of the $22 million had shipped by the end of October. For additional perspective, this was the second strongest September quarter in the past decade for Nautilus.

現在我將簡要介紹一下我們第二季度和上半年的財務業績。 2022 年第二財季，淨銷售額為 1.38 億美元，較兩年前增長近 125%。去年同期我們的淨銷售額為 1.55 億美元。我們未能達到指引的主要原因是我們無法控制的全球航運挑戰影響了季度末的截止日期。具體來說，如果我們已經準備好並在碼頭等待零售客戶的 2200 萬美元的 FFO 成品庫存中只有一部分被提取，我們就可以達到 1.45 億美元至 1.55 億美元的指導目標。提貨延遲的原因有多種，其中包括零售商無法及時確保集裝箱安全。事實上，2200 萬美元中的 1200 萬美元已於 10 月底發貨。從其他角度來看，這是 Nautilus 過去十年來第二強勁的 9 月份季度。

Excluding Octane, our retail segment in the second quarter was up 19% compared to the prior year period and up 175% compared to the same period 2 years ago. The direct channel exceeded our internal goals and was down in the second quarter due to seasonality, which didn't occur last year, but it was up 134% compared to the second quarter 2 years ago. International, which was -- which is reported as part of the retail segment, continued to achieve very strong year-over-year and 2-year growth in the second quarter, up 57% and 655%, respectively.

不包括辛烷，我們第二季度的零售業務比去年同期增長了 19%，比兩年前同期增長了 175%。直銷渠道超出了我們的內部目標，第二季度由於季節性原因有所下降，去年沒有出現這種情況，但與兩年前第二季度相比增長了134%。據報導，國際業務屬於零售業務的一部分，第二季度繼續實現非常強勁的同比和兩年增長，分別增長 57% 和 655%。

As expected, gross margin for the second quarter of fiscal year '22 was lower due to abnormal shipping and logistics costs, 8 points; commodities and components and foreign exchange, 4 points; and continued investment in JRNY, 1 point. The cost pressures related to the global supply chain disruptions are obviously affecting many industries, including ours. While the impact is significant, we believe these external margin pressures will normalize over time and, when coupled with the expansion of our addressable market, will result in improved operating margins for Nautilus.

正如預期，由於運輸和物流成本異常，22財年第二季度的毛利率較低，為8個點；商品和零部件以及外匯，4分；繼續投資JRNY，1分。全球供應鏈中斷帶來的成本壓力顯然正在影響包括我們在內的許多行業。雖然影響很大，但我們相信這些外部利潤壓力將隨著時間的推移而正常化，再加上我們潛在市場的擴張，將導致鸚鵡螺的營業利潤率提高。

Despite our sales miss, we achieved our adjusted operating margin guidance for the second quarter of low single digits while increasing our investment in advertising in JRNY by nearly $8 million versus LY.

儘管我們的銷售業績未達標，但我們實現了第二季度調整後的低個位數營業利潤率指導，同時我們在 JRNY 上的廣告投資比 LY 增加了近 800 萬美元。

Especially given the atypical retail seasonality patterns we have seen, it is important to also discuss the first half of the year in aggregate. For the first half, net sales were $323 million, a 28% comp to LY and a 215% comp to LLY excluding Octane. Keep in mind 2022 is comping against the pandemic sales in 2021, so we're quite pleased with our first 6 months' performance. And in fact, this first half ranks as the best comparable period in Nautilus history. For the first half, adjusted operating income was $22 million or 7%.

特別是考慮到我們所看到的非典型零售季節性模式，從總體上討論今年上半年的情況也很重要。上半年，淨銷售額為 3.23 億美元，與 LY 相比，同比增長 28%；與 LLY 相比（不包括 Octane），同比增長 215%。請記住，2022 年是與 2021 年的大流行銷售相比，因此我們對前 6 個月的表現非常滿意。事實上，今年上半年是鸚鵡螺歷史上最好的可比時期。上半年，調整後營業收入為 2200 萬美元，即 7%。

Moving on to our progress on our North Star strategy. During our Investor Day in March, when we laid out our long-term vision and strategic plan, North Star, one of the areas we highlighted was our supply chain. We have made great pride -- strides by working down backlog, improving our inventory position relative to last year and opening a new DC to alleviate the widely known supply issues affecting global shipping. We are proud to have built and shipped the inventory to meet consumer demand without the disappointment of last year's long waits. We have overcome shipping issues and will not be among those sellers with empty shelves this holiday season.

繼續我們的北極星戰略進展。在三月份的投資者日期間，當我們制定長期願景和戰略計劃“北極星”時，我們強調的領域之一是我們的供應鏈。我們感到非常自豪——通過減少積壓訂單、改善我們的庫存狀況（相對於去年）以及開設新的配送中心來緩解影響全球航運的眾所周知的供應問題，我們取得了巨大的進步。我們很自豪能夠建立和運輸庫存來滿足消費者的需求，而不會像去年的漫長等待那樣令人失望。我們已經克服了運輸問題，不會成為這個假期貨架空空如也的賣家之一。

Even with these successful investments, we expect gross margins to continue to be under pressure as global supply chain disruptions continue to persist. We continue to address unprecedented challenges such as container availability, cost of shipping and storing inventory, elevated commodity costs, availability and spot prices of electronic components and delayed retailer FFO pickups, but we have developed a much stronger and more agile supply chain thanks to disciplined execution on our North Star strategic plan.

即使有這些成功的投資，我們預計，由於全球供應鏈中斷持續存在，毛利率將繼續面臨壓力。我們繼續應對前所未有的挑戰，例如集裝箱可用性、運輸和存儲庫存成本、商品成本上漲、電子元件的可用性和現貨價格以及零售商FFO 提貨延遲，但由於紀律嚴明，我們已經開發了更強大、更靈活的供應鏈執行我們的北極星戰略計劃。

Next, I would like to turn to innovation. This quarter, we announced and completed the acquisition of VAY, a leader in motion and vision technology. This acquisition directly supports our aim to accelerate our software development capabilities and add new and innovative features to its JRNY platform, moving us closer to our vision for JRNY as your highly personalized one-on-one fitness coach. VAY's proprietary technology enables computers to understand human motion using cameras on its computer vision software, analyzes movements and provides real-time, individualized feedback and coaching on exercise. VAY has a particular unique strength in using cameras found on today's mobile devices, such as smartphones and tablets. VAY's existing partners include Microsoft and ETH Zurich, one of the top science and technology universities in the world. We plan to integrate VAY's motion tracking capabilities into JRNY to further advance and accelerate our highly personalized workout experiences, including automatic rep counting and form coaching.

接下來我想談談創新。本季度，我們宣布並完成了對運動和視覺技術領導者 VAY 的收購。此次收購直接支持了我們加快軟件開發能力並為其 JRNY 平台添加新的創新功能的目標，使我們更接近 JRNY 作為高度個性化的一對一健身教練的願景。 VAY 的專有技術使計算機能夠使用其計算機視覺軟件上的攝像頭來理解人體運動，分析運動並提供實時、個性化的反饋和運動指導。 VAY 在使用當今移動設備（例如智能手機和平板電腦）上的攝像頭方面具有獨特的優勢。 VAY現有的合作夥伴包括微軟和世界頂尖科技大學之一的蘇黎世聯邦理工學院。我們計劃將 VAY 的運動跟踪功能集成到 JRNY 中，以進一步推進和加速我們高度個性化的鍛煉體驗，包括自動次數計數和形態指導。

Our initial focus will be on strength training and off-product workouts, such as body weight, yoga and floor exercises. We are excited to have increased our software capabilities through this tuck-in acquisition and plan to incorporate the first set of features from VAY into the JRNY experience during our fiscal '22 fourth quarter.

我們最初的重點將是力量訓練和產品外鍛煉，例如體重、瑜伽和自由體操。我們很高興通過這次收購增強了我們的軟件功能，併計劃在 22 財年第四季度將 VAY 的第一組功能整合到 JRNY 體驗中。

Over the past year, we've made tremendous advancements with JRNY and are seeing very strong adoption and tremendous growth in JRNY members. We are excited about the value and the experience that JRNY provides. It is focused on the individual. It provides a greater variety of choices of equipment and ways to work out than competitors. We have added classes, of course, but JRNY brings what we call entertainment beyond the class. And we provide all this at a great value, typically 1/2 to 1/3 of the price of our competition.

在過去的一年裡，我們與 JRNY 取得了巨大的進步，並且看到 JRNY 會員的採用率非常高，增長也非常快。我們對 JRNY 提供的價值和體驗感到興奮。它專注於個人。與競爭對手相比，它提供了更多種類的設備和鍛煉方式選擇。當然，我們增加了課程，但 JRNY 帶來了課堂之外的娛樂。我們以超值價格提供這一切，通常是競爭對手價格的 1/2 到 1/3。

Just last week, we announced that JRNY now includes strength video workouts for Bowflex SelectTech 552 and 1090 dumbbells. SelectTech is one of our strongest selling offerings, and this is our first entry into strength training with JRNY. The new updated digital platform now includes a video library of instructor-led strength workouts for these Bowflex SelectTech dumbbells. In the near future, we will also be adding strength workout specific for the Bowflex SelectTech 840 kettlebell and the Bowflex SelectTech 2080 barbell.

就在上週，我們宣布 JRNY 現在包含 Bowflex SelectTech 552 和 1090 啞鈴的力量視頻鍛煉。 SelectTech 是我們最暢銷的產品之一，這是我們首次與 JRNY 合作進入力量訓練領域。新更新的數字平台現在包括針對這些 Bowflex SelectTech 啞鈴的教練指導力量鍛煉的視頻庫。在不久的將來，我們還將添加專門針對 Bowflex SelectTech 840 壺鈴和 Bowflex SelectTech 2080 槓鈴的力量訓練。

We also announced that for a limited time, new JRNY members are eligible to receive a 12-month complementary trial membership. This marks the latest step to make the JRNY experience available to more consumers, whether they are using cardio or strength equipment or both. Previously, consumers could not easily experience JRNY without owning one of our connected cardio products. We are excited to expose the JRNY experience to a much broader audience.

我們還宣布，在有限的時間內，JRNY 新會員有資格獲得 12 個月的免費試用會員資格。這標誌著為更多消費者提供 JRNY 體驗的最新舉措，無論他們使用的是有氧運動設備還是力量設備或兩者兼而有之。此前，如果消費者不擁有我們的一款互聯有氧產品，就無法輕鬆體驗 JRNY。我們很高興向更廣泛的受眾展示 JRNY 的體驗。

We were also excited to announce last week our latest connected cardio product, the new connected Bowflex Max Total 16. The new Max offers a 16-inch HD, touch screen and integration with the JRNY digital fitness platform. So users stay engaged and motivated during high-calorie burn interval workouts. The Bowflex Max Total 16 machine blends the low impact of an elliptical and the high intensity of a stepper to offer a short high-intensity interval workout in a compact design. The initial reception of our JRNY-powered Max machines has been phenomenal, and we are excited about how we have improved upon this industry-leading product unique to Bowflex.

上週我們還很高興地宣布推出最新的互聯有氧運動產品，即新型互聯 Bowflex Max Total 16。新款 Max 配備 16 英寸高清觸摸屏，並與 JRNY 數字健身平台集成。因此，用戶在高熱量燃燒間歇鍛煉期間保持專注和積極性。 Bowflex Max Total 16 機器融合了橢圓機的低衝擊力和踏步機的高強度，以緊湊的設計提供短時高強度間歇鍛煉。我們的 JRNY 動力 Max 機器的最初反響非常好，我們對如何改進 Bowflex 獨有的行業領先產品感到非常興奮。

We've increased JRNY content, adding over 100 explore-the-world, immersive experiences and have released hundreds of new trainer-led videos during the first half of the fiscal year '22. We've done so with our own first-party content and through partners such as FitOn. We also launched JRNY.com, a new web-based consumer portal, to better highlight JRNY platform's features and benefits as well as helping members more easily manage their JRNY accounts without calling customer service.

我們增加了 JRNY 內容，添加了 100 多個探索世界的沉浸式體驗，並在 22 財年上半年發布了數百個由培訓師主導的新視頻。我們通過自己的第一方內容以及 FitOn 等合作夥伴做到了這一點。我們還推出了 JRNY.com，一個新的基於網絡的消費者門戶網站，以更好地突出 JRNY 平台的功能和優勢，並幫助會員更輕鬆地管理其 JRNY 賬戶，而無需致電客戶服務。

The team and I are delighted with our execution and progress in connected fitness via our new equipment and the JRNY platform, and we're only just beginning. All of this progress in the last few months has led to very strong membership growth and lowered churn -- lowered our churn significantly. While it is early, our growth is extremely promising. I am pleased to report that our current member count is approximately 200,000, more than 3x the year ago period when we had about 65,000 members. And this incredible growth is before the holiday season before our new product introductions, JRNY enhancements and special limited time trial offers that I just discussed.

我和團隊對通過新設備和 JRNY 平台在互聯健身方面的執行和進展感到高興，而我們才剛剛開始。過去幾個月的所有這些進展導致了非常強勁的會員增長並降低了客戶流失率——顯著降低了我們的客戶流失率。雖然現在還為時過早，但我們的增長前景非常光明。我很高興地向大家報告，我們目前的會員人數約為 200,000 名，是去年同期的 3 倍多，當時我們的會員人數約為 65,000 名。這種令人難以置信的增長發生在假期之前，之前我們推出了新產品、JRNY 增強功能和我剛才討論的特殊限時試用優惠。

As planned in our North Star plan, we have stood up and are building a highly profitable digital business on top of a successful equipment business. The consumer experience on our equipment is enhanced by our digital offering, and our digital business is fueled by the economics of the equipment business. We have been working tirelessly to make JRNY a leading fitness service that matches our incredible lineup of equipment.

正如我們的北極星計劃所計劃的那樣，我們已經站起來，正在成功的設備業務之上建立高利潤的數字業務。我們的數字產品增強了消費者在我們設備上的體驗，而我們的數字業務則由設備業務的經濟性推動。我們一直在不懈努力，使 JRNY 成為與我們令人難以置信的設備陣容相匹配的領先健身服務。

Our digital connected subscription service is driving the future of Nautilus, and the execution and results of our North Star strategy have exceeded our expectations to date. I'm delighted that we are even further along in our long-term transformation than we expected on Investor Day in March. This progress ultimately will enable us to have more predictable growth and higher profitability that will generate attractive long-term returns.

我們的數字互聯訂閱服務正在推動 Nautilus 的未來，而我們的北極星戰略的執行和結果迄今為止已經超出了我們的預期。我很高興我們的長期轉型進展比三月份投資者日的預期還要進一步。這一進展最終將使我們能夠實現更可預測的增長和更高的盈利能力，從而產生有吸引力的長期回報。

There remain challenges to overcome, such as post-COVID recovery-driven margin pressure from inflation and transportation costs, which have been more severe than anyone expected, in fact 12 points in Q2. In the first half of our fiscal year, we were proud to have overcome these challenges, stayed committed to North Star investments and still remain profitable. It was an incredible accomplishment to do it all.

仍然存在需要克服的挑戰，例如疫情后復甦帶來的通脹和運輸成本帶來的利潤壓力，其程度比任何人預期的都要嚴重，實際上第二季度就達到了 12 個百分點。在我們的上半財年，我們很自豪能夠克服這些挑戰，繼續致力於北極星投資，並且仍然保持盈利。完成這一切是一項令人難以置信的成就。

As we look at the second half, we assume that these margin challenges, while temporary, would likely persist for the remainder of our fiscal year. This led us to an important decision point. Do we choose to remain profitable by pausing or reducing our North Star strategy investments? Or do we capitalize on our progress and continue to invest with confidence using our balance sheet? Faced with this choice, our Board and management team have made the strategic decision to not only stay committed to North Star, but to accelerate our investment in the second half of the year.

展望下半年，我們假設這些利潤率挑戰雖然是暫時的，但可能會在本財年剩餘時間內持續存在。這使我們做出了一個重要的決策。我們是否選擇通過暫停或減少北極星戰略投資來保持盈利？或者我們是否會利用我們的進步並利用我們的資產負債表繼續充滿信心地進行投資？面對這一選擇，我們的董事會和管理團隊做出了戰略決策，不僅繼續致力於北極星，而且在下半年加快我們的投資。

We are choosing progress towards our long-term goals over short-term profit maximization. Specifically, we are increasing our second half forecasted OpEx spend by $12 million to $14 million in JRNY versus LY, and marketing as a percentage of sales will increase by 9 to 11 points versus last year. This will permit us to grow -- to more quickly grow our membership base and transition to a higher gross margin business earlier than originally laid out in our Investor Day.

我們選擇實現長期目標，而不是短期利潤最大化。具體來說，我們將下半年預測的 JRNY 運營支出支出比 LY 增加了 1200 萬美元至 1400 萬美元，營銷佔銷售額的百分比將比去年增加 9 至 11 個百分點。這將使我們能夠成長——更快地擴大我們的會員基礎，並比投資者日最初制定的更早過渡到毛利率更高的業務。

Additionally, we have improved our liquidity by increasing our line of credit to $100 million. This allowed us to deploy cash for tuck-in acquisitions like VAY, gave us working capital to invest in inventory and importantly, gives us room to accelerate our long-term investments. We also expect that this near-term investment will enable our JRNY digital platform business to be accretive sooner than previously expected. Aina will be providing specific 2022 guidance during her remarks and will include a waterfall of margins to show where we are investing. We also expect margins to climb each year from 2023 to 2026 and beyond.

此外，我們還通過將信貸額度增加至 1 億美元來改善流動性。這使我們能夠部署現金用於 VAY 等收購，為我們提供了投資庫存的營運資金，更重要的是，為我們加速長期投資提供了空間。我們還預計，這項近期投資將使我們的 JRNY 數字平台業務比之前預期更快地實現增值。艾娜將在講話中提供具體的 2022 年指導，並將包括利潤瀑布以顯示我們的投資方向。我們還預計，從 2023 年到 2026 年及以後，利潤率每年都會攀升。

Simply put, we are leveraging our profitable equipment business to build digital faster due to strong results. We are unified in our confidence that this is the best approach for our company and for our shareholders.

簡而言之，由於業績強勁，我們正在利用盈利的設備業務更快地構建數字化。我們一致相信，這對我們公司和股東來說都是最好的方法。

I'll now turn it over to Aina, who will give us more detail on our second quarter financials and guidance for the rest of the year. Aina?

我現在將其交給艾娜，她將為我們提供有關第二季度財務狀況和今年剩餘時間指導的更多詳細信息。艾娜？

Thanks, Jim, and good afternoon, everyone. Today, I'll talk to results for Q2 and the first half of fiscal year '22, and we'll provide guidance for the second half.

謝謝吉姆，大家下午好。今天，我將討論第二季度和 22 財年上半年的業績，我們將為下半年提供指導。

I'll start with Slide 11 of the presentation, total company P&L results for Q2 '22 with comparison to the same quarter last year. Net sales were $138 million, down 11% to LY on a GAAP basis, excluding Octane were down 5% and up 150% to LY.

我將從演示文稿的幻燈片 11 開始，其中顯示了 22 年第二季度的公司總損益結果與去年同期的比較。按 GAAP 計算，淨銷售額為 1.38 億美元，較 LY 下降 11%，不包括辛烷，淨銷售額下降 5%，較 LY 增長 150%。

Sales declined year-over-year primarily due to direct return to normal seasonality and global logistics challenges affecting retail. As Jim mentioned earlier, we had over $22 million of FFO orders ready for pickup that didn't make the cutoff. Unfortunately, our sales guidance range wasn't wide enough to accommodate this level of disruption.

銷售額同比下降主要是由於直接恢復正常季節性以及影響零售業的全球物流挑戰。正如 Jim 之前提到的，我們有超過 2,200 萬美元的 FFO 訂單可供提貨，但未達到截止時間。不幸的是，我們的銷售指導範圍不夠寬，無法適應這種程度的破壞。

Gross profit was $42 million and gross margins were 30.5%, down 13 points from LY. 8 points of the decline is due to logistics, 4 points due to raw materials components and FX, and 1 point related to increased JRNY investments.

毛利潤為4200萬美元，毛利率為30.5%，比LY下降13個百分點。下降 8 個百分點是由於物流，4 個百分點是由於原材料和外匯，1 個百分點與 JRNY 投資增加有關。

Turning to operating expenses. This year, we booked a $5 million settlement related to a class action lawsuit and incurred $1 million in acquisition costs for VAY. Last year, we booked $8 million of gain on disposal group related to Octane. Given these unusual costs, we believe it's better to look at our operating results on an adjusted basis. Please see our press release for a reconciliation to GAAP.

轉向運營費用。今年，我們就一項集體訴訟達成了 500 萬美元的和解協議，並為 VAY 支付了 100 萬美元的收購成本。去年，我們在與辛烷相關的處置組中登記了 800 萬美元的收益。考慮到這些不尋常的成本，我們認為最好在調整後的基礎上審視我們的經營業績。請參閱我們的新聞稿，了解與公認會計原則（GAAP）的調節。

Adjusted operating expenses were $39 million or 28% of sales versus last year's $32 million or 12% (sic) [21%] of sales. Selling and marketing expenses were $22 million or 16% of sales, up $3 million to last year, driven by higher advertising. Adjusted G&A expenses were $11 million or 8% of sales, up $2 million to LY primarily driven by increased investments in JRNY. R&D was $6 million or 4% of sales, up $1 million compared to LY, again driven by increased costs related to JRNY. In fiscal Q2, advertising was $12 million, and JRNY OpEx was $5 million. Adjusted operating income was $4 million and adjusted operating margins were 3%, in line with guidance of low single digit.

調整後的運營費用為 3,900 萬美元，佔銷售額的 28%，而去年為 3,200 萬美元，佔銷售額的 12%（原文如此）[21%]。由於廣告費用增加，銷售和營銷費用為 2200 萬美元，佔銷售額的 16%，比去年增加了 300 萬美元。調整後的一般管理費用為 1100 萬美元，佔銷售額的 8%，LY 增加 200 萬美元，主要是由於 JRNY 投資增加。研發費用為 600 萬美元，佔銷售額的 4%，比 LY 增加了 100 萬美元，這也是由於 JRNY 相關成本增加所致。第二財季，廣告支出為 1200 萬美元，JRNY 運營支出為 500 萬美元。調整後營業收入為 400 萬美元，調整後營業利潤率為 3%，符合低個位數的指導。

Our presentation includes a waterfall chart on Page 13 that describes the year-over-year change in operating margins. The biggest driver is lower gross margins, followed by increased advertising and investments in JRNY.

我們的演示文稿包括第 13 頁的瀑布圖，描述了營業利潤率的同比變化。最大的推動因素是毛利率下降，其次是 JRNY 廣告和投資的增加。

Adjusted income from continuing ops was $1 million or $0.03 per diluted share versus last year's $28 million or $0.87 per diluted share. Adjusted EBITDA from continuing ops was $7 million or 5% compared to last year's $38 million or 25%. Please refer to our press release and the presentation accompanying this call for more information on segment performance for the periods 3 months and 6 months ending September.

持續運營調整後的收入為 100 萬美元，即稀釋後每股收益 0.03 美元，而去年為 2800 萬美元，即稀釋後每股收益 0.87 美元。來自持續運營的調整後 EBITDA 為 700 萬美元，即 5%，而去年為 3800 萬美元，即 25%。請參閱我們的新聞稿以及本次電話會議隨附的演示文稿，了解有關截至 9 月份的 3 個月和 6 個月期間分部業績的更多信息。

Let me now turn to Slide 15 for results for the first half, which is the 6 months ended September 30, 2021, compared to the same period last year. Net sales were $323 million, up 20% on a GAAP basis. Excluding Octane, sales were up 28% versus LY and up 215% versus LLY, driven by strong growth in retail. Gross profit was $98 million and gross margins were 30%, down 13 points versus last year. The decrease was primarily due to increased logistics, 7 points; raw materials components and FX, 5 points; and 1 point related to increased investments in JRNY.

現在讓我轉向幻燈片 15，了解上半年的結果，即截至 2021 年 9 月 30 日的 6 個月與去年同期的比較。淨銷售額為 3.23 億美元，按 GAAP 計算增長 20%。不包括辛烷在內，在零售強勁增長的推動下，銷售額較 LY 增長 28%，較 LLY 增長 215%。毛利潤為 9800 萬美元，毛利率為 30%，比去年下降 13 個百分點。下降主要是由於物流增加，7 個百分點；原材料成分和外匯，5分； 1 分與增加對 JRNY 的投資有關。

The following statements for the first half exclude the impact of this year's legal settlement and acquisition costs, and last year's loss on disposal group. Adjusted OpEx was $76 million or 24% of sales versus last year's $58 million or 21% of sales. The $18 million increase was essentially driven by $12 million more in advertising and $6 million more in JRNY. When we saw direct begin to return to seasonality in Q1, the equipment side of our business worked hard to keep costs flat to LY despite higher unit sales this year while continuing to advance North Star. First half advertising spend was $23 million, and first half JRNY OpEx was $8 million. Adjusted operating income was $22 million or 7% compared to last year's $58 million or 21%, driven by lower gross margins and higher OpEx.

以下上半年報表排除了今年法律和解和收購成本以及去年處置集團虧損的影響。調整後的運營支出為 7600 萬美元，佔銷售額的 24%，而去年為 5800 萬美元，佔銷售額的 21%。 1800 萬美元的增長主要是由於廣告費用增加了 1200 萬美元，JRNY 費用增加了 600 萬美元。當我們看到直接在第一季度開始恢復季節性時，我們業務的設備方面努力保持成本與 LY 持平，儘管今年的單位銷量較高，同時繼續推進 North Star。上半年廣告支出為 2300 萬美元，上半年 JRNY 運營支出為 800 萬美元。受毛利率下降和運營支出上升的推動，調整後營業收入為 2200 萬美元，即 7%，而去年為 5800 萬美元，即 21%。

Please see Slide 17 in the presentation for our waterfall chart walking through the year-over-year changes. Similar to Q2, the largest driver of the decline are supply chain related, followed by increased investments in advertising and JRNY, partially offset by operational improvements as the organization worked to keep costs in line with lower sales.

請參閱演示文稿中的幻燈片 17，了解我們的瀑布圖，了解同比變化。與第二季度類似，下降的最大推動因素與供應鏈相關，其次是廣告和 JRNY 投資的增加，但由於該組織努力使成本與銷售額下降保持一致，因此運營改進部分抵消了這一影響。

Adjusted income from continuing ops was $15 million or $0.46 per diluted share, compared to $45 million or $1.40 per diluted share. Adjusted EBITDA from continuing ops was $28 million or 9%, compared to $64 million or 24% of net sales.

持續運營調整後的收入為 1500 萬美元，即稀釋後每股收益 0.46 美元，而去年同期為 4500 萬美元，即稀釋後每股收益 1.40 美元。來自持續運營的調整後 EBITDA 為 2800 萬美元，占淨銷售額的 24%，即 2800 萬美元。

Turning now to the balance sheet as of September 30. Cash was $22 million and inventory was $163 million, with about 40% in transit as of 9/30 compared to $68 million at year-end. Given the continued disruption in global logistics, we made a strategic decision to bring inventory in earlier to be in a better position to meet peak seasonal demand. Our inventory is concentrated in our best-selling products, and we're incurring incremental storage and transportation fees to position us well for holiday. AR was mostly flat at $89 million and trade payables were $115 million versus $99 million at 3/31, primarily due to the timing of payments for inventory. Debt was $17 million versus $13 million at year-end, and we had $49 million available for borrowing in our facility.

現在來看截至 9 月 30 日的資產負債表。截至 9 月 30 日，現金為 2,200 萬美元，庫存為 1.63 億美元，其中約 40% 在途，而年底為 6,800 萬美元。鑑於全球物流持續中斷，我們做出了一項戰略決定，即提前增加庫存，以便更好地滿足旺季需求。我們的庫存集中在我們最暢銷的產品上，並且我們正在承擔增量存儲和運輸費用，以便為我們的假期做好準備。 AR 基本持平，為 8900 萬美元，貿易應付賬款為 1.15 億美元，而 3/31 為 9900 萬美元，這主要是由於庫存付款的時間安排。債務為 1700 萬美元，而年底時為 1300 萬美元，我們的設施中有 4900 萬美元可用於借款。

On October 29, we amended our facility, increasing our revolver size from $55 million to $100 million and extending the maturity date to October 29, 2026. On a pro forma basis, using our new expanded facility, we would have had $94 million available for borrowing at 9/30.

10 月29 日，我們修改了我們的融資額度，將左輪手槍規模從5500 萬美元增加到1 億美元，並將到期日延長至2026 年10 月29 日。按預計，使用我們新擴大的融資額度，我們將有9400 萬美元可用於9月30日借錢。

Turning now to our expectations for the rest of the year. As Jim highlighted, we're pleased with the progress we're making in North Star and the solid momentum in our JRNY business. We now have 200,000 members. Engagement is growing, churn is declining, and our path to bringing JRNY to scale has become clearer as we gain new capabilities for our recent acquisition and content partnerships.

現在談談我們對今年剩餘時間的期望。正如 Jim 所強調的，我們對 North Star 取得的進展以及 JRNY 業務的強勁勢頭感到滿意。我們現在有20萬名會員。隨著我們最近的收購和內容合作夥伴關係獲得了新的能力，參與度不斷提高，客戶流失率不斷下降，我們將 JRNY 擴大規模的道路也變得更加清晰。

Certain aspects of our environment are challenging. Like nearly every other business, we're experiencing near-term external pressures on gross margins, which worsened in Q2 versus Q1. While we're really proud that we were able to overcome the majority of the pressures in the first half, we don't believe that putting our future on hold for near-term results is the best way to deliver long-term shareholder value. Our Board, the management team and our employees have strong conviction that the path to sustainable, profitable growth is through having a high-margin subscription business to complement our enduring equipment business. We'll do that by capturing greater share of the connected fitness market, by improving and enhancing the JRNY platform, and we'll be investing in that.

我們環境的某些方面具有挑戰性。與幾乎所有其他業務一樣，我們的毛利率近期面臨外部壓力，與第一季度相比，第二季度的情況更加惡化。雖然我們對能夠克服上半年的大部分壓力感到非常自豪，但我們並不認為為了短期業績而擱置未來是實現長期股東價值的最佳方式。我們的董事會、管理團隊和員工堅信，實現可持續盈利增長的途徑是通過高利潤訂閱業務來補充我們持久的設備業務。我們將通過改進和增強 JRNY 平台、佔領互聯健身市場的更大份額來實現這一目標，並且我們將對此進行投資。

Let me now share our expectations for the second half of fiscal year '22, 6 months ending March 2022. Please follow along starting on Slide 20 of the presentation as the slides include a waterfall that we think will be helpful in understanding the changes in operating margins. We expect sales to be between $290 million and $320 million, which represents growth versus LLY of between 47% and 62% or a 2-year CAGR of 21% to 27% versus the 6 months ending March 2020. This sales guidance reflects our plan to continue bundling 12 months or any trials with cardio equipment sales. We will be deferring the JRNY portion of the bundled sale revenue and amortizing it monthly for the subsequent 12 months.

現在讓我分享我們對22 財年下半年（截至2022 年3 月的6 個月）的預期。請從演示文稿的幻燈片20 開始進行操作，因為這些幻燈片包括一個瀑布，我們認為這將有助於理解運營方面的變化邊距。我們預計銷售額將在2.9 億至3.2 億美元之間，與LLY 相比增長47% 至62%，或與截至2020 年3 月的6 個月相比，2 年復合年增長率為21% 至27%。該銷售指導反映了我們的計劃繼續與有氧運動器材銷售捆綁 12 個月或任何試驗。我們將推遲捆綁銷售收入的 JRNY 部分，並在接下來的 12 個月中每月進行攤銷。

Our expected deferred revenues of $6 million to $7 million will reduce sales and negatively impact gross margins in the second half by 2 to 3 points. We expect the same macro supply chain headwinds to continue in the second half, negatively impacting gross margins by 12 points.

我們預計 600 萬至 700 萬美元的遞延收入將減少銷售額，並對下半年的毛利率產生 2 至 3 個百分點的負面影響。我們預計下半年同樣的宏觀供應鏈逆風將持續，對毛利率造成 12 個百分點的負面影響。

We continue to increase our investment in JRNY in the second half. Second half JRNY cost, which includes depreciation, content, customer support and per subscriber variable costs, will be between $6 million and $8 million this year. Second half OpEx JRNY, which includes R&D, IT product management and the amortization of stock-based compensation and earnout associated with our VAY acquisition, will be between $18 million and $20 million this year. We plan on investing more in advertising this year to remain competitive in share of VAY and to highlight the improvements in our connected fitness experience. As a rate of sales, advertising will increase by 9% to 11%.

下半年我們繼續加大對JRNY的投資。今年下半年 JRNY 成本（包括折舊、內容、客戶支持和每位訂戶可變成本）將在 600 萬至 800 萬美元之間。今年下半年的 JRNY 運營支出（包括研發、IT 產品管理以及與我們收購 VAY 相關的股票薪酬和盈利攤銷）將在 1800 萬美元至 2000 萬美元之間。我們計劃今年在廣告上投入更多資金，以保持 VAY 份額的競爭力，並突出我們互聯健身體驗的改進。作為銷售率，廣告將增加9%至11%。

Lastly, we will continue to invest in our infrastructure and in our team. We doubled our equipment business, but most of our increased costs have been targeted towards JRNY. We're upgrading our tools and adding new capabilities to the equipment side to optimize and scale for the future. We believe these investments will accelerate membership acquisition and will ultimately result in the JRNY business unit being accretive several quarters faster than originally planned. We could have chosen to pull back on spend in the second half, put our future on hold and deliver operating income in the low single digits, but as we told you during Investor Day, we will always lean more towards protecting the long-term prosperity of the company versus achieving near-term profits. Therefore, for the second half of the year, we expect operating loss margins in the mid-teens and adjusted EBITDA margins in the low teens.

最後，我們將繼續投資於我們的基礎設施和團隊。我們的設備業務增加了一倍，但大部分增加的成本都針對 JRNY。我們正在升級我們的工具，並向設備端添加新功能，以針對未來進行優化和擴展。我們相信這些投資將加速會員獲取，並最終使 JRNY 業務部門的增長速度比原計劃快幾個季度。我們本可以選擇在下半年縮減支出，擱置未來並實現較低個位數的營業收入，但正如我們在投資者日期間告訴您的那樣，我們將始終更傾向於保護長期繁榮公司的發展與近期利潤的比較。因此，我們預計今年下半年的營業虧損率將達到十幾位數，調整後的 EBITDA 利潤率將達到十幾位數。

We continue to expect CapEx to be between $12 million and $14 million for the full year, with the majority earmarked for JRNY. And lastly, we now expect JRNY members to be between 250,000 and 350,000 by the end of fiscal '22.

我們仍然預計全年資本支出將在 1200 萬美元至 1400 萬美元之間，其中大部分專門用於 JRNY。最後，我們現在預計到 22 財年末，JRNY 會員人數將達到 250,000 至 350,000 人。

Looking beyond fiscal '22 and into fiscal '23, we see a path to adjusted EBITDA profitability. Specifically, we anticipate year-over-year gross margin expansion driven by a stabilization in the logistics environment. We'll also begin to recognize the accretive impact of our higher-margin digital subscription business as we add members and leverage our growing scale. This will enable us to achieve gross margin at a low 30% on a blended basis for the full year. As a result, we expect to be adjusted EBITDA profitable for the full fiscal '23.

展望 22 財年和 23 財年，我們看到了調整後 EBITDA 盈利能力的路徑。具體來說，我們預計物流環境的穩定將推動毛利率同比增長。隨著我們增加會員並利用我們不斷增長的規模，我們還將開始認識到我們利潤率較高的數字訂閱業務的增值影響。這將使我們全年的綜合毛利率保持在 30% 左右。因此，我們預計 23 年整個財年調整後的 EBITDA 將實現盈利。

One final comment on our long-term expectations. By accelerating our investments into JRNY, we now expect to achieve mid-teen operating margins by fiscal year-end '25, 1 year earlier than we initially modeled, with fiscal year-end 2016 delivering operating margins in the high teens.

關於我們的長期期望的最後評論。通過加快對 JRNY 的投資，我們現在預計到 25 財年末將實現中雙位數的營業利潤率，比我們最初預測的提前一年，而 2016 財年末的營業利潤率將達到中雙位數。

In closing, our liquidity position is strong. We've invested our cash in our best-performing inventory, and we have an expanded $100 million credit line. We are well prepared for the upcoming fitness season with a robust inventory position, strong digital offering, well-funded marketing, leading equipment connectivity and a team passionate about our vision of creating a healthier world one person at a time.

最後，我們的流動性狀況強勁。我們已將現金投資於表現最佳的庫存，並且擴大了 1 億美元的信貸額度。我們為即將到來的健身季節做好了充分準備，擁有強大的庫存狀況、強大的數字產品、資金充足的營銷、領先的設備連接性以及一支熱衷於我們一次創造一個更健康世界的願景的團隊。

Now I'd like to turn it over back to Jim for his final comments.

現在我想將其轉回吉姆以徵求他的最終意見。

Thank you, Aina. Before we go to questions, I would like to briefly take stock in our progress over the past 2 years. Faced with a favorable market dynamic, we acted decisively to set a new strategy and execute against it. Our progress to date is undeniable. I'd like to give just a few examples.

謝謝你，艾娜。在提問之前，我想簡單回顧一下我們過去兩年的進展。面對有利的市場動態，我們果斷行動，制定新戰略並執行。迄今為止，我們的進步是不可否認的。我想舉幾個例子。

In 2019, we had only 1 connected product in our portfolio until December and no meaningful install base for our subscription business. Now we have a complete portfolio of connected fitness cardio machines unified by the JRNY membership platform and ecosystem. Our install base ticked up in late 2019 with the launch of 2 new bikes, but we did not have much scale in connected cardio units sold. By contrast, in just the last year, we have sold more than 4x the number of connected cardio units as 2019, rapidly growing our installed base of JRNY powered units.

2019 年，截至 12 月，我們的產品組合中只有 1 個聯網產品，而且我們的訂閱業務沒有有意義的安裝基礎。現在，我們擁有由 JRNY 會員平台和生態系統統一的完整的互聯健身有氧運動器械產品組合。隨著 2019 年底推出 2 款新自行車，我們的安裝基礎有所增加，但我們銷售的聯網有氧運動設備規模並不大。相比之下，僅在去年，我們的聯網有氧運動設備銷量就達到了 2019 年的 4 倍多，我們的 JRNY 動力設備安裝基數迅速增長。

The Max Trainer, our most important and proprietary product, was in a multiyear decline in 2019. This quarter, I'm delighted to report that the new connected Max -- connected fitness M9 Max Trainer now revitalized with JRNY was #1 in dollar sales in direct. 2 years ago, we were mostly a mechanical engineering company with about a dozen developers in software UX FTEs. Today, we continue our legacy with strong equipment, but we have 160 people engaged in software development.

Max Trainer 是我們最重要的專有產品，在2019 年經歷了多年的下滑。本季度，我很高興地報告說，新的Connected Max - Connected Fitness M9 Max Trainer 現在與JRNY 一起煥發活力，在美元銷售額中排名第一直接。兩年前，我們主要是一家機械工程公司，擁有大約十幾名軟件 UX FTE 開發人員。今天，我們以強大的設備延續著我們的傳統，但我們有 160 名從事軟件開發的人員。

This fundamental change in our business towards connected fitness has already yielded tangible results. JRNY had 14,000 members at the end of 2019. Today, as we've said, we have approximately 200,000 and are on our way to achieving our first year goal and accelerating towards our 2 million member goal. JRNY has been built on consumer insight, and we are improving it every quarter with accelerated investment. We are inspired by our mission to be a leader in individualized connected fitness.

我們的業務向互聯健身方向進行的這一根本性變革已經產生了切實的成果。截至 2019 年底，JRNY 擁有 14,000 名會員。如今，正如我們所說，我們擁有大約 200,000 名會員，並且正在實現我們的第一年目標，並加速實現 200 萬會員目標。 JRNY 建立在消費者洞察的基礎上，我們每個季度都會通過加速投資來改進它。我們的使命是成為個性化互聯健身領域的領導者，這一使命激勵著我們。

2 years ago, we had no meaningful consumer segmentation. Our products and marketing appealed more to consumers who didn't like working out and we were not driving a significant number of new customers to our brands. Today, we are relentlessly focused on high-value targets who prioritize fitness day in and day out and are highly correlated with gym goers displaced during the pandemic. As a result, we added over 400,000 new customers to our brands versus a typical year of adding 100,000. We also are recalibrating the Bowflex brand to ensure we resonate equally with men and women and to bring our younger cohorts who thrive on connected fitness and will appreciate the variety of the challenge that our JRNY platform offers.

兩年前，我們還沒有進行有意義的消費者細分。我們的產品和營銷對不喜歡鍛煉的消費者更有吸引力，而且我們沒有為我們的品牌吸引大量新客戶。今天，我們不懈地關注高價值目標，他們日復一日地優先考慮健身，並且與大流行期間流離失所的健身愛好者高度相關。結果，我們為我們的品牌增加了超過 400,000 名新客戶，而通常年份僅增加 100,000 名。我們還正在重新調整 Bowflex 品牌，以確保我們能與男性和女性產生平等的共鳴，並吸引那些在互聯健身中茁壯成長並欣賞我們 JRNY 平台提供的各種挑戰的年輕群體。

In 2019, we were still not fully committed to omnichannel. Today, we are passionate about letting our consumers shop when, where and how they want. I'm really proud of the way we have invigorated and strengthened our retail segment, more than doubling our number of retail doors and radically diversifying our retailer base.

2019年，我們還沒有完全致力於全渠道。如今，我們熱衷於讓消費者隨時隨地以他們想要的方式購物。我對我們振興和加強零售部門的方式感到非常自豪，我們的零售門店數量增加了一倍以上，並使我們的零售商基礎實現了根本多元化。

We were shrinking and in survival mode in 2019, in need of a turnaround, greater liquidity and a clear strategic direction. Since then, we have more than doubled our revenue and strengthened our capital structure, which gives us the confidence to continue to invest in the future and an inspiring on point and very focused strategy, North Star, that we will -- that we believe will deliver more consistent, more predictable growth based on a balanced equipment portfolio and a growing recurring revenue base and levels of profitability not achieved in our history.

2019年，我們的業務正在萎縮，處於生存模式，需要扭虧為盈、增加流動性和明確的戰略方向。從那時起，我們的收入增加了一倍以上，並加強了我們的資本結構，這使我們有信心繼續投資未來，並製定了鼓舞人心、目標明確的戰略，北極星，我們將——我們相信將基於平衡的設備組合和不斷增長的經常性收入基礎以及我們歷史上未曾達到的盈利水平，實現更一致、更可預測的增長。

We have also built a world-class team and strengthened our digital talent. Our market opportunity has grown tremendously. The U.S. home fitness market size appears to have doubled or tripled up the 2019 base due to important changes in habits and trends favoring home fitness.

我們還建立了世界一流的團隊並加強了我們的數字人才。我們的市場機會已經大大增加。由於有利於家庭健身的習慣和趨勢的重大變化，美國家庭健身市場規模似乎比 2019 年增加了一倍或三倍。

The progress our company has made over the last 2 years is incredible and gives us strong confidence that our outlook for the future had never been stronger. It is with this confidence that we stay committed to our North Star strategy and are investing for the future. I want to thank all our leaders, employees, suppliers, distributors and retail partners. Your incredible efforts are not only transforming our company but changing consumers' lives by empowering healthier living through individualized connected fitness experiences.

我們公司在過去兩年中取得的進步令人難以置信，這讓我們對未來的前景充滿信心。正是懷著這種信心，我們將繼續致力於北極星戰略並為未來進行投資。我要感謝我們所有的領導、員工、供應商、分銷商和零售合作夥伴。你們的努力不僅改變了我們的公司，還通過個性化的互聯健身體驗賦予更健康的生活，從而改變了消費者的生活。

I'd now like to turn it over to questions. Operator?

我現在想把它轉為提問。操作員？

(Operator Instructions) Our first question comes from the line of Steve Dyer with Craig-Hallum.

（操作員說明）我們的第一個問題來自 Steve Dyer 和 Craig-Hallum 的對話。

A couple questions on JRNY, some encouraging early signs there. I guess a 2-part question there. One, I guess are you willing to share or able to share anything that you're sort of seeing that's better than expectations there? Are you seeing sort of more subscribers? Are you seeing more associated sort of members or accounts on those subscriptions? Anything there, I guess, would be -- to what you're seeing would be the first one.

關於 JRNY 的幾個問題，其中有一些令人鼓舞的早期跡象。我想那裡有一個由兩部分組成的問題。第一，我想你是否願意分享或能夠分享你看到的比預期更好的任何東西？您是否看到更多訂閱者？您是否在這些訂閱中看到更多關聯類型的成員或帳戶？我想，那裡的任何東西都會是——你所看到的將是第一個。

The second one then would be the increased JRNY spend. Is that -- sort of to the extent you can sort of talk about that, is that accelerating spend that otherwise would have been done next year? Or are you just -- are you ramping up sort of marketing given what's going on in the marketplace to stay relevant and front of mind? And then I have 1 more.

第二個是 JRNY 支出的增加。就你可以談論的程度而言，這是否會加速支出，否則本應在明年進行？或者，您是否正在根據市場上正在發生的情況加大營銷力度，以保持相關性和領先地位？然後我還有 1 個。

Sure. No. Thank you for your question, Steve, good questions. Yes. So I said the short answer is everything on JRNY seems to be going better than we expected. Specifically, we did call out the member number. That's going faster. And as I mentioned, it's kind of pre fitness season and pre some special offers to get this out there. We've disconnected JRNY from the cardio equipment so more people can experience it. I guess that's one is just the membership. The churn is down. We're not providing it yet. As you know, we're committed to providing a set of metrics on an ongoing basis, beginning with our fourth quarter call when we said it would be material. So we'll continue to do that.

當然。不，謝謝你的問題，史蒂夫，很好的問題。是的。所以我說簡短的回答是 JRNY 的一切似乎都比我們預期的要好。具體來說，我們確實調出了會員號碼。這進展得更快了。正如我所提到的，這是健身前的季節，也是一些特別優惠的前夕。我們已將 JRNY 與有氧運動設備斷開連接，以便更多人可以體驗它。我想這只是會員資格之一。客戶流失率下降了。我們還沒有提供它。如您所知，我們致力於持續提供一組指標，從我們第四季度的電話會議開始，當時我們表示這很重要。所以我們將繼續這樣做。

Engagement is quite high. And by that, I mean the number of hours and workouts per user are going up. Attachment is up. So that's -- of the people who are eligible to use JRNY, how many of them are actually using it? So all of those things give us really a lot of confidence that we are ahead of schedule on many of these things. And hence, we've sort of changed our goals as well and are more aggressively moving towards our long-term goals. And I'll hand it to Aina on the spend question.

參與度相當高。我的意思是每個用戶的小時數和鍛煉次數正在增加。附件已上。那麼，在有資格使用 JRNY 的人中，有多少人真正在使用它？因此，所有這些事情給了我們很大的信心，我們在許多事情上都提前了。因此，我們也改變了我們的目標，並且更加積極地朝著我們的長期目標邁進。我會將支出問題交給艾娜。

So you had 2 questions on the spend. First, about JRNY spend, yes, it's an acceleration of spend we thought we'd be doing a little bit later, but we thought given the momentum and the proof points that we could accelerate it.

所以你有兩個關於支出的問題。首先，關於 JRNY 支出，是的，這是一種支出加速，我們原以為我們會稍後做，但我們認為鑑於勢頭和證據，我們可以加速它。

You asked about marketing. So yes, we're increasing marketing as a percentage of sales, and that's a combination of we now have a great set of connected products and experiences we want to tell consumers about. And we do want to be a little bit more competitive and just share our voice in the back half of the year.

你問的是營銷。所以，是的，我們正在增加營銷佔銷售額的百分比，這是我們現在擁有一組很棒的互聯產品和體驗的結合，我們想告訴消費者。我們確實希望更具競爭力，並在今年下半年分享我們的聲音。

And as we said about the brand advertising as well, we think a portion of this investment is durable, right? And we talked about the fact that we have the Bowflex brand that is kind of top of the market in terms of recognition relative to our closest competitors. So people know the brand. But the brand -- when we talk about the brand, it's sometimes emotes the idea of the rod gym, and we want people to be thinking about more modern views of our brand related to JRNY and digital experiences and things like that. So we'll be spending on that so that we move the brand to where we want to move it.

正如我們談到品牌廣告時所說，我們認為這項投資的一部分是持久的，對吧？我們談到了這樣一個事實，即我們擁有的 Bowflex 品牌相對於我們最接近的競爭對手而言，在認知度方面處於市場領先地位。所以人們都知道這個品牌。但是品牌——當我們談論品牌時，它有時會表達棒健身房的想法，我們希望人們能夠思考與 JRNY 和數字體驗等相關的我們品牌的更現代的觀點。因此，我們將在這方面投入資金，以便將品牌轉移到我們想要轉移的地方。

That's very helpful. Just a couple quick ones. I think you talked back at your Analyst Day about staying profitable through all of this and paying as you go, I guess, that was a term you used a couple of times. The decision to swing negative or unprofitable in the next 2 quarters, is that primarily a function of accelerating JRNY? Or is that also sort of some of these other cost headwinds are just bigger than you anticipated at the time?

這非常有幫助。只是幾個快速的。我想你在分析師日上談到了通過所有這一切保持盈利並按量付費，我猜，這是你使用過幾次的術語。在接下來的兩個季度內轉向負值或無利可圖的決定，這主要是由於 JRNY 加速嗎？或者其他一些成本阻力是否也比您當時的預期更大？

Yes. It's a combination of really both those things. Our strong progress is a big part of it. So when you're doing well, you go, "Hey, can we get there faster," and you challenge yourself to do that. But to be totally honest, it's these 12 points of margin compression.

是的。它實際上是這兩件事的結合。我們的強勁進步是其中很大一部分。因此，當你做得很好時，你會說：“嘿，我們能更快地到達那裡嗎？”然後你就會挑戰自己做到這一點。但說實話，就是這12個點的利潤壓縮。

When we started out as that pay as you go and we thought we could do it all, we thought we had such a strong tailwind there that we'd be able to overcome all of those points, especially the landed product costs of about 7 points. So we thought we could overcome all of that and still invest in JRNY. But then by the time we got to the second half and we looked at it -- and we were really looking at the logistics problems getting worse throughout the first half and sort of peaking in the second quarter. And then we have to anniversary that for the entire back half. And that's just too much to overcome when you look at it that way.

當我們開始採用現收現付的方式時，我們認為我們可以做到這一切，我們認為我們有如此強大的順風，我們能夠克服所有這些點，特別是大約 7 個點的到岸產品成本。所以我們認為我們可以克服所有這些問題並繼續投資 JRNY。但當我們進入下半年時，我們確實看到了物流問題在整個上半場變得更糟，並在第二季度達到頂峰。然後我們必須為整個後半部分慶祝週年紀念日。當你這樣看時，這實在是太難以克服了。

So then we were really faced with that choice, and we just really wanted to put investors in our framework there. We literally said, "Hey, look, we can break even, but is that the right thing for the business?" We would have to actually slow things down. We'd slow down some hiring, we'd slow down JRNY development, we wouldn't market as much and we could deliver a profitable second half, but that did not seem right. What you're seeing in the market is nobody is really going for a profit motive. Growth is more important. Membership growth is more important. And we saw a way to really accelerate towards that much faster.

因此，我們確實面臨著這樣的選擇，我們真的很想將投資者納入我們的框架中。我們確實說，“嘿，看，我們可以收支平衡，但這對企業來說是正確的嗎？”我們實際上必須放慢速度。我們會放慢一些招聘速度，我們會放慢 JRNY 的開發速度，我們不會進行太多的營銷，我們可以實現下半年的盈利，但這似乎不對。你在市場上看到的是，沒有人真正出於盈利動機。成長更重要。會員的增長更為重要。我們找到了一種真正更快地加速實現這一目標的方法。

So that's why we made the decision. We did want to kind of put you all in our mindset. We are 100% confident that is the right decision, right? I mean we do not -- we didn't come here -- we came here to change the company in this direction. We have a tremendous opportunity to do that. We have a balance sheet that supports it, and we're going for it. And we think that's the right way to go. Some investors might want the short-term profit, but we want the investors that are here for the long term because the long term is just a beautiful thing.

這就是我們做出決定的原因。我們確實想讓你們所有人都融入我們的思維之中。我們 100% 相信這是正確的決定，對嗎？我的意思是，我們不是——我們沒有來這裡——我們來這裡是為了朝這個方向改變公司。我們有巨大的機會做到這一點。我們有一個支持它的資產負債表，我們正在努力實現它。我們認為這是正確的做法。一些投資者可能想要短期利潤，但我們希望投資者能夠長期投資，因為長期投資是一件美好的事情。

Ladies and gentlemen, our next question comes from the line of Mike Swartz with Truist Securities.

女士們先生們，我們的下一個問題來自 Truist Securities 的 Mike Swartz。

Maybe just first question. I guess how do you think about customer acquisition costs in the current environment? And I guess where do we expect that to level out and really start to see some benefits over the next couple of years?

也許只是第一個問題。我猜您如何看待當前環境下的獲客成本？我想我們預計在接下來的幾年裡，這種情況會趨於平穩並真正開始看到一些好處？

Yes. I mean obviously, direct businesses are challenged with the cost of customer acquisition. I was trying to get at that a little bit in my script and my talk because we're actually -- if we were trying to acquire JRNY members without an equipment business, that would be brutal, right? The cost of customer acquisition in a purely digital business would be very, very tough. The way we look at it and we described a little bit of this at Investor Day, but still, the way we think about it is we are leveraging our equipment business. By selling the equipment at the margins that we're selling them, we acquire customers and then those customers attach to JRNY. And you'll see in our advertising over time that JRNY will go from being -- having a cameo appearance in our advertising to co-star to being the star over time. That's how it will roll. And we're really leveraging that customer -- cost of customer acquisition for a highly profitable piece of equipment to acquire customers this way.

是的。我的意思是，顯然，直接業務面臨著客戶獲取成本的挑戰。我試圖在我的劇本和演講中闡述這一點，因為我們實際上 - 如果我們試圖在沒有設備業務的情況下收購 JRNY 成員，那將是殘酷的，對嗎？在純數字業務中獲取客戶的成本將非常非常高。我們看待它的方式，以及我們在投資者日上描述的一些方式，但我們仍然認為我們正在利用我們的設備業務。通過以我們銷售設備的利潤來銷售設備，我們獲得了客戶，然後這些客戶就會加入 JRNY。隨著時間的推移，您會在我們的廣告中看到，隨著時間的推移，JRNY 將從在我們的廣告中客串出現，到聯合主演，再到成為明星。事情就是這樣滾動的。我們實際上是在利用該客戶——高利潤設備的客戶獲取成本，以這種方式獲取客戶。

And then of course, we're doing these free trials as well and we've -- we're doing free trials on the SelectTech stuff so you can go back to previous customers. And acquiring previous customers for JRNY, much easier thing. You have their e-mail addresses. You just send them a note saying, "Hey, we've got a great way for you to use your SelectTech that you've been waiting for. We probably should had it earlier, but we have it now. Why don't you come try it?" And then that product gets better over time. We talked about the way acquisition and rep counting and form coaching and things like that on that.

當然，我們也在進行這些免費試用，我們正在對 SelectTech 的產品進行免費試用，這樣您就可以回到以前的客戶那裡。為 JRNY 獲取以前的客戶，是一件容易得多的事情。您有他們的電子郵件地址。您只需向他們發送一張便條，說：“嘿，我們為您提供了一種很好的方式來使用您一直在等待的SelectTech。我們可能應該早點擁有它，但我們現在有了。為什麼不呢？”來試試？”然後隨著時間的推移，該產品會變得更好。我們討論了獲取方式、重複計數以及形式指導等問題。

So that's the way we think about it. And it's still a challenge for all these businesses that have a direct component. But as I said, we are really -- we run a nice place where we have this digital business and this physical equipment business.

這就是我們的想法。對於所有具有直接組成部分的企業來說，這仍然是一個挑戰。但正如我所說，我們確實 - 我們經營著一個很好的地方，我們擁有數字業務和物理設備業務。

Great. And second question, just on -- I think you've provided some longer-term margin targets, and it sounds like you're moving them 1 year ahead of maybe when you previously thought you would generate target margins. So I guess is this purely just a function of JRNY proceeding faster than expected? Or are you changing any of the margin targets that you gave before? And specifically, I think you said subscription margins run closer to 20%, 25%. Is that still the right way to think about that?

偉大的。第二個問題，我認為您已經提供了一些長期利潤目標，聽起來您正在將這些目標提前一年，也許您之前認為會產生目標利潤。所以我想這純粹是 JRNY 進展速度比預期更快的結果嗎？或者您是否正在更改之前給出的任何保證金目標？具體來說，我認為您說過訂閱利潤接近 20%、25%。這仍然是正確的思考方式嗎？

Yes. I mean we're thinking 2 ways. We're thinking about it earlier and accelerating it. And we also -- as we've gotten to see how the early economics have worked out in our subscription business, we think we'll have elevated margins. Aina, anything to add to that?

是的。我的意思是我們正在考慮兩種方法。我們正在更早地考慮並加速它。而且，當我們看到訂閱業務的早期經濟效益如何時，我們認為我們的利潤率將會提高。艾娜，還有什麼要補充的嗎？

No. When we were working it through at the beginning of the year, we hadn't inked a lot of these contracts that we now have. So we have a lot more clarity. And we've acquired our first tuck-in and can see the underlying cost structure, and it's favorable to what we were thinking and then the economics are improving faster than we had initially modeled.

不。當我們在年初完成這個工作時，我們並沒有簽署現在擁有的很多此類合同。所以我們的思路更加清晰。我們已經獲得了第一筆收入，可以看到潛在的成本結構，這對我們的想法是有利的，然後經濟的改善速度比我們最初建模的要快。

Okay. That's helpful. And maybe 1 final question from me. I think you've said the 200,000 subscribers at the end of the quarter. Can you provide any context or color on how many of those are paying subscribers?

好的。這很有幫助。也許是我最後一個問題。我想您已經說過季度末的 200,000 名訂戶。您能否提供有關其中有多少付費訂閱者的背景信息或顏色？

Just to correct that, we said members, which is a different definition than subscribers in the field.

為了糾正這個問題，我們說的是成員，這與該領域的訂閱者的定義不同。

Right.

正確的。

Yes. No problem. We'll demystify this over time. But as we said, we're actually providing a lot more about our subscription business than we planned to do. Our commitment is by the fourth quarter of this year, when we report fourth quarter that we'll have a set of metrics that you can look at for our subscription business that will be robust enough for you to really look at the health of that business. Until then, we're providing selective information and we focused on this member amount. We're not saying what this churn is, but I'm happy that it's really -- it's coming down as we work on quality, as we get our analytics better, as we get our JRNY.com stood up, as we build more content, as we add new features, that's coming down.

是的。沒問題。隨著時間的推移，我們將揭開這個謎團。但正如我們所說，我們實際上提供的訂閱業務比我們計劃的要多得多。我們的承諾是，到今年第四季度，當我們報告第四季度時，我們將擁有一組可供您查看的訂閱業務指標，這些指標將足夠強大，讓您能夠真正了解該業務的健康狀況。在此之前，我們將提供選擇性信息，並重點關注會員數量。我們並沒有說這種流失是什麼，但我很高興它確實- 隨著我們致力於質量，隨著我們更好地分析，隨著我們讓JRNY.com 站起來，隨著我們建立更多，它正在下降。內容，隨著我們添加新功能，它會下降。

So that's it. And so we'll stay committed to giving you a robust set of metrics in the time frame that we promised, but we're kind of leaking it a little bit early. And part of the reason for that is we wanted people to understand why we're making this decision to invest further into JRNY.

就是這樣了。因此，我們將繼續致力於在我們承諾的時間範圍內為您提供一組可靠的指標，但我們有點提前洩露了。部分原因是我們希望人們了解我們為何做出進一步投資 JRNY 的決定。

Our next question comes from the line of Sharon Zackfia with William Blair.

我們的下一個問題來自莎朗·扎克菲亞和威廉·布萊爾的對話。

It's Matt Curtis on for Sharon actually. First question is on the product pipeline. I mean you recently added the Max Total 16. I'm just wondering how many more product introductions you have scheduled for this fiscal year and roughly when those are expected to launch.

實際上是馬特·柯蒂斯代替莎倫。第一個問題是關於產品管道。我的意思是，您最近添加了 Max Total 16。我只是想知道您在本財年還計劃推出多少產品，以及這些產品預計何時推出。

Yes. I mean we don't provide our complete road map for competitive reasons. They seem to just pop up. You've seen our competitors doing the same thing. So we don't warn people off our total road map. But we did the M9 recently, the 9-inch screen on the Max Trainer and M16, our new Max Total, as you alluded to.

是的。我的意思是，出於競爭原因，我們不提供完整的路線圖。它們似乎只是突然出現。您已經看到我們的競爭對手也在做同樣的事情。因此，我們不會警告人們遠離我們的總體路線圖。但我們最近做了 M9，Max Trainer 上的 9 英寸屏幕和 M16，我們新的 Max Total，正如您提到的。

Last week, I talked about the BYOD strength product in JRNY. So basically, it's not a new physical product, but it's a new way to use our physical products. So you can buy the dumbbell and the training together. Or if you have the dumbbell, you can just get the training added to your account going forward and you'll be able to try it. So that's a big thing. And then like I said, the VAY acquisition, we're going to continue building more features into that, that will help you with those workouts.

上週，我在 JRNY 談到了 BYOD 優勢產品。所以基本上，它不是一個新的物理產品，而是一種使用我們物理產品的新方式。所以你可以把啞鈴和訓練器一起買。或者，如果您有啞鈴，您可以將訓練添加到您的帳戶中，然後您就可以嘗試了。所以這是一件大事。然後就像我說的，收購 VAY 後，我們將繼續在其中構建更多功能，這將幫助您進行這些鍛煉。

So that's kind of our -- the early part of strength than we said in the call that, that part is coming in the fourth quarter of this year. Beyond that, we're not commenting, but I will say we have a robust pipeline of strength products. Now we've kind of worked our way all the way through the cardio line and modernize that, and now we're focused on strength, which for Bowflex is really what the brand stands for. So we're very excited about several products we have in the pipeline, but I'm not at liberty to talk about them in detail right now.

這就是我們在電話會議中所說的早期力量，這部分將在今年第四季度到來。除此之外，我們不會發表評論，但我會說我們擁有強大的強度產品管道。現在，我們已經在有氧運動產品線中一路努力並使其現代化，現在我們專注於力量，這對 Bowflex 來說確實是該品牌所代表的意義。因此，我們對正在開發中的幾款產品感到非常興奮，但我現在無法詳細討論它們。

Okay. Understood. And then on the margin pressure you're expected to see -- you're expecting to see in the second half of the year, could you just help us flesh out what quarter that pressure would be more weighted to? I mean I would expect that it would be more pre-holidays, but I'm just wondering if that's the case or if it's going to be more evenly spread out.

好的。明白了。然後，關於您預計會在下半年看到的利潤率壓力，您能否幫助我們具體說明該壓力將更偏重於哪個季度？我的意思是，我預計假期前的情況會更多，但我只是想知道情況是否如此，或者是否會分佈得更均勻。

That's a great question. So let's start with the supply chain. That will be more evenly spread out. Same thing with the fixed investments in JRNY like OpEx. I mean we're building like an infrastructure for that. It's the advertising that I think will be movable. And I'm not going -- I can't give any more color than what I have now for the back half because we really want to preserve our agility, and we will deploy that marketing firepower in the appropriate moment to like really drive membership growth and people to our websites and to our retail partner stores so they can buy the equipment.

這是一個很好的問題。那麼讓我們從供應鏈開始吧。這樣分佈會更均勻。 JRNY 的固定投資（如 OpEx）也是如此。我的意思是我們正在為此構建基礎設施。我認為這是可移動的廣告。我不會——我不能為後半部分提供比現在更多的色彩，因為我們真的想保持我們的敏捷性，我們將在適當的時刻部署營銷火力，以真正推動會員資格增長和人們訪問我們的網站和我們的零售合作夥伴商店，以便他們可以購買設備。

Our next question comes from the line of George Kelly with ROTH Capital Partners.

我們的下一個問題來自喬治·凱利和羅仕資本合夥人的電話。

So maybe to start with your comments on 2023. So I was curious if you could bridge -- if the second half of this year is -- I think it's 10% to 12% negative EBITDA margin. Can you help bridge the gap most of that gross margin to get to profitable EBITDA next year (inaudible) for all of it? So what else is implied in that? And then also, kind of a similar question, but what about sales growth? Do you expect to hit positive sales growth at any point next year?

因此，也許可以從您對 2023 年的評論開始。所以我很好奇您是否可以彌補——如果今年下半年的話——我認為 EBITDA 利潤率為 10% 到 12%。您能否幫助彌補大部分毛利率的差距，以便明年實現盈利的 EBITDA（聽不清）？那麼這其中還隱含著什麼呢？還有一個類似的問題，但銷售增長怎麼樣？您預計明年的銷售會出現正增長嗎？

Great question. So I'll start with the margins. The big driver of our path back to profitability really is the expansion or the easing of the headwinds in gross margin specific to logistics. We are already -- we have very clear path on how some of these things will moderate. The most important would be as we work down our inventory and sell the inventory that we brought in early, we won't need as much of the storage and the extra transportation costs that we're incurring this back half. Secondarily, we've begun already the negotiations for a larger portion of our containers being under a fixed contract rather than being on the spot market. And then lastly, it's a small piece, but we're really pleased that JRNY will actually begin to help us on the gross margin line next year. So excited for that to be helping us. So those are really the big drivers of us getting back to adjusted EBITDA profitability in fiscal '23.

很好的問題。所以我將從邊距開始。我們恢復盈利的主要推動力實際上是物流毛利率方面的不利因素的擴大或緩解。對於如何緩和其中一些事情，我們已經有了非常明確的路徑。最重要的是，當我們減少庫存並出售我們早期帶來的庫存時，我們將不需要那麼多的存儲和額外的運輸成本，而我們在後半段中會產生這樣的成本。其次，我們已經開始就大部分集裝箱按照固定合同而不是在現貨市場上進行談判。最後，這只是一小部分，但我們真的很高興 JRNY 明年將真正開始幫助我們提高毛利率。很高興能為我們提供幫助。因此，這些確實是我們在 23 財年恢復調整後 EBITDA 盈利能力的重要推動力。

And then I don't know if you want to comment, but can you talk about your -- what's your expectation on revenue growth for next year?

然後我不知道你是否想發表評論，但你能談談你對明年收入增長的預期嗎？

I think it's similar to everybody, right? Like we always planned and we talked about this during Investor Day that if there is a pandemic high, it would likely moderate and there'd be some sort of settling down, again not settling back down to where it was in 2019, but settling down and not continuing to grow at this frenetic pace. We're like, similar to other people, trying to figure out, is that now? Is that going to go on for a few more quarters? So our assumptions are pretty wide to get to that adjusted EBITDA profitability where we either model a slight decline, maybe a slight increase. But I'm not counting on massive sales growth to deliver the profitability.

我想每個人都一樣吧？就像我們一直計劃的那樣，我們在投資者日期間談到了這一點，如果出現大流行高峰，它可能會緩和，並且會出現某種程度的穩定下來，同樣不會回到2019 年的水平，而是穩定下來並且不會繼續以這種瘋狂的速度增長。我們就像其他人一樣，試圖弄清楚，是現在嗎？這種情況還會持續幾個季度嗎？因此，我們的假設相當寬泛，無法得出調整後的 EBITDA 盈利能力，我們的模型要么略有下降，要么略有上升。但我並不指望銷售量的大幅增長來實現盈利。

And I'll just reiterate what I said about the market. That's why I really wanted to start this whole talk today with what we're seeing in the market. And we just really believe in the strong secular changes in -- towards home fitness. It doesn't tell us where it's going to peak and what it comes down to, but it's not coming down to anywhere near where it was, as Aina said. We see that, and we see it not only in attitudes, but we see it in actual workout habits that we're monitoring.

我將重申我對市場的看法。這就是為什麼我今天真的想從我們在市場上看到的情況開始整個演講。我們真的相信家庭健身方面會發生巨大的長期變化。它沒有告訴我們它將在哪里達到峰值以及最終會達到什麼程度，但正如艾娜所說，它並沒有下降到接近峰值的任何地方。我們看到了這一點，我們不僅在態度上看到了這一點，而且在我們正在監控的實際鍛煉習慣中也看到了這一點。

And then connected fitness, that's the other reason to believe as well is that is just in its early innings. I mean we are just -- so many people found connected fitness during the pandemic, but not everybody is delivering great against that, and it's all very early relative to what we all think we can deliver for consumers.

然後是互聯健身，這也是我們相信的另一個原因，因為這還處於早期階段。我的意思是，我們只是——很多人在大流行期間發現了互聯健身，但並不是每個人都對此做出了巨大的貢獻，而且相對於我們都認為我們可以為消費者提供的服務來說，這一切都還為時過早。

So I think no matter what you think the industry dynamics are and even if it does crest and work its way down a little bit, the whole idea of connected fitness, I think, is another add on top of that. So we're feeling very strong about that. Obviously, it takes a crystal ball to know for sure.

因此，我認為，無論您認為行業動態如何，即使它確實達到頂峰並逐漸下降，我認為聯網健身的整個理念是除此之外的另一個補充。所以我們對此感覺非常強烈。顯然，需要水晶球才能確定。

The other thing that's really tough is cutoffs, right? We just talked about -- we just got killed with this September 30 cutoff where we had enough to easily meet our guidance there so -- on the sales side, but it didn't happen. So that holds us back a little bit, especially when we're talking about next year already. So we're providing the first half here. And then as we get closer, we'll let you know what we think about 2023 as things work themselves out.

另一件真正困難的事情是截止，對吧？我們剛剛談到——在銷售方面，我們剛剛在 9 月 30 日的截止日期被殺了，我們有足夠的資金可以輕鬆滿足我們的指導，但這並沒有發生。所以這讓我們有點猶豫，尤其是當我們已經在談論明年的時候。所以我們在這裡提供前半部分。然後，當事情臨近時，我們會告訴您我們對 2023 年的看法，因為事情會自行解決。

I guess another thing I'll just say is that like the reason we changed our fiscal year, honestly, was so that we could take stock in the fitness season and how the results went before trying to predict the next year. And at the core of your question is exactly that. So we're just about -- just before Black Friday is when we start seeing seasonal pickup in both retail and the direct business. So we're kind of weeks away from knowing how that's going to begin, and then we're fitting a season away from knowing how it's going to actually play out. So hopefully, that makes sense to you.

我想我要說的另一件事是，老實說，就像我們改變財政年度的原因一樣，我們可以在嘗試預測明年之前對健身季節以及結果進行盤點。你問題的核心正是這個。因此，就在黑色星期五之前，我們開始看到零售和直銷業務出現季節性回升。所以我們還需要幾週的時間才能知道這將如何開始，然後我們將在接下來的一個賽季中知道它會如何實際進行。希望這對您有意義。

Yes. That's helpful. And then last question from me is, what was direct media spending in the quarter?

是的。這很有幫助。我的最後一個問題是，本季度的直接媒體支出是多少？

Hold on. I'll send that to -- I have the total advertising for the quarter, but I don't have just direct. For the quarter, Q2, it was $12 million, but it's primarily direct.

堅持，稍等。我會將其發送至——我有該季度的全部廣告，但我沒有直接的。第二季度的銷售額為 1200 萬美元，但主要是直接的。

So most of $12 million, yes, most of $12 million.

所以大部分是 1200 萬美元，是的，大部分是 1200 萬美元。

(Operator Instructions) Our next question comes from the line of Mark Smith with Lake Street Capital Markets.

（操作員說明）我們的下一個問題來自 Lake Street Capital Markets 的 Mark Smith。

Can you guys talk a little bit about the pricing environment and competition as we move into the important holiday and early January season, what you're seeing, especially as people are using equipment for kind of member acquisition?

當我們進入重要的假期和一月初的季節時，你們能談談你們所看到的定價環境和競爭嗎，特別是當人們使用設備來獲取會員時？

Yes. No. That's a great question. And I think we're all seeing it, right? I think it's a combination of using the equipment to acquire members as we're doing ourselves. And also, some of the competition having equipment, probably a lot of inventory equipment. I've seen it mostly in bikes, but I've seen it kind of across the board where the promotion -- nobody promoted much last year and everybody is promoting most things this year, particularly bikes. We've seen iFit drop there, their primary bike down to about the $1,500 range. We've seen Peloton do the same.

是的。不，這是一個很好的問題。我想我們都看到了，對吧？我認為這是利用設備來獲取會員的結合，就像我們自己所做的那樣。而且，一些競爭對手擁有設備，可能有很多庫存設備。我主要在自行車上看到過這種情況，但我也看到過全面的促銷活動——去年沒有人促銷太多，而今年每個人都在促銷大多數東西，特別是自行車。我們已經看到 iFit 下降了，他們的主要自行車降到了 1,500 美元左右。我們已經看到 Peloton 也做了同樣的事情。

So we have to be competitive with that. We think the combination of JRNY trials, which we can afford to give away and bundle, I say, it helps us to do that. And it doesn't hurt our P&L at this point as much. So that's part of our approach to that. But then we're also running promotions on our stuff as well.

所以我們必須與之競爭。我們認為 JRNY 試驗的結合，我們有能力贈送和捆綁，我說，這有助於我們做到這一點。目前這對我們的損益並沒有造成太大影響。這就是我們的方法的一部分。但我們也會對我們的產品進行促銷。

I will point out, though, that earlier when we had pricing power, probably more pricing power, we were not promotional, in fact raised our prices. So that helped us kind of fight off this margin pressure a little bit longer. But now we have to look at the market. And especially in these days where it's the high-volume part of the year, I mean we look at it almost every day about whether we should do a promotion or price change there.

不過，我要指出的是，早些時候，當我們擁有定價權，可能是更大的定價權時，我們沒有促銷，實際上提高了價格。因此，這幫助我們更長時間地抵抗了這種利潤壓力。但現在我們必須看看市場。尤其是在今年的高銷量時期，我們幾乎每天都會考慮是否應該在那裡進行促銷或價格調整。

So we continue to do that, but I do think you're going to see a lot of promotion this holiday because I think we're not the only ones that said we better bring in inventory early. And so I think people have a lot of inventory. I'm just deducing that from what we said and then we've seen what's been reported as well.

所以我們會繼續這樣做，但我確實認為這個假期你會看到很多促銷活動，因為我認為我們並不是唯一說我們最好儘早引入庫存的公司。所以我認為人們有很多庫存。我只是從我們所說的中推斷出這一點，然後我們也看到了報導的內容。

And on that, as we look at inventory within retail, moving into this important season, how confident are you in your inventory that you have enough out there and -- especially in kind of this pricing environment?

就此而言，當我們審視零售業的庫存時，進入這個重要的季節，您對自己的庫存有多大信心，認為自己有足夠的庫存——尤其是在這種定價環境下？

Sure. Yes. I mean we definitely have enough, I would say. We have stocked up and we've stocked up on the best-selling products. Because we knew that we weren't actually going to be able to perfectly predict, as our results showed, what sells in what quarter, we invested in the inventory of our new and high best-selling products. And we're in much fewer SKUs than we were before this. We've cut a ton of SKUs. We're just focusing on kind of the fat part of the curve, and that gives us a lot of confidence.

當然。是的。我想說的是，我們絕對已經足夠了。我們已經備貨了，我們已經備貨了最暢銷的產品。因為我們知道，正如我們的結果所示，我們實際上無法完美地預測什麼產品在哪個季度銷售，所以我們投資於新的和最暢銷的產品的庫存。我們的 SKU 比之前少了很多。我們削減了大量的 SKU。我們只關注曲線的胖部分，這給了我們很大的信心。

So I think we have enough and we believe it's in the right stuff. That's always the second thing to try to make sure you have. So we've got it. It's all fairly new, nothing old and dusty, nothing kind of at the tail of the curve. So we feel like as confident as we could feel going into this holiday season that we've made the right choices, and we'll see how it turns out. Anything to add?

所以我認為我們已經足夠了，而且我們相信它是正確的。這始終是要確保您擁有的第二件事。所以我們已經得到了。一切都相當新，沒有任何舊的和佈滿灰塵的東西，也沒有任何位於曲線尾部的東西。因此，在進入這個假期時，我們充滿信心，我們做出了正確的選擇，我們將看看結果如何。有什麼要補充的嗎？

I don't have anything to add on inventory, but I do want to correct what I said about advertising. So total advertising is $12 million, and we attributed $7 million to direct and $5 million was brand because in Q2, we invested a lot of brand marketing in things like the Olympics. So $12 million in total, $7 million for direct, $5 million for branded.

我沒有任何要添加的庫存，但我確實想糾正我關於廣告的說法。因此，廣告總額為 1200 萬美元，其中 700 萬美元用於直接營銷，500 萬美元用於品牌營銷，因為在第二季度，我們在奧運會等方面投入了大量品牌營銷。總共 1200 萬美元，其中 700 萬美元用於直接投資，500 萬美元用於品牌投資。

Thank you. Ladies and gentlemen, at this time, there are no further questions. I would like to turn the floor back to management for closing comments.

謝謝。女士們、先生們，現在沒有其他問題了。我想請管理層發表最後評論。

Thank you to everyone on our call today for your continued support of Nautilus. We look forward to talking to you again on our third quarter fiscal year '22 earnings call in February. Have a great rest of the day. Onwards and upwards.

感謝今天參加我們電話會議的所有人對 Nautilus 的持續支持。我們期待在 2 月份舉行的 22 財年第三季度財報電話會議上再次與您交談。祝你這一天好好休息。向前和向上。

Thank you. Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。