Beachbody Company Inc (BODI) 2023 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the beach body Compnay. Fourth quarter 2023 and full year earnings call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded. And I will now turn the conference over to your host, Bruce Williams, Managing Director of ICR Investor Relations.

下午好，女士們先生們，歡迎來到海灘身體公司。2023 年第四季及全年財報電話會議。（操作員說明）我想提醒大家，本次電話會議正在錄音。現在我將把會議交給東道主 ICR 投資者關係董事總經理布魯斯威廉斯 (Bruce Williams)。

Welcome, everyone, and thank you for joining us for our fourth quarter earnings call. With me on the call today are Mark Goldston, Executive Chairman of the Beachbody Compnay; Carl Daikeler, Co-Founder and Chief Executive Officer; and Marc Suidan, Chief Financial Officer. Following the prepared remarks, we'll open the call up for questions.

歡迎大家，並感謝您參加我們的第四季財報電話會議。今天與我一起參加電話會議的有 Beachbody Company 執行主席 Mark Goldston； Carl Daikeler，共同創辦人兼執行長；和財務長 Marc Suidan。在準備好的發言之後，我們將開始提問。

Before we get started, I would like to remind you of the Company's Safe Harbor language. Statements contained in this conference call, which are not historical facts may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您公司的安全港語言。本次電話會議中所包含的非歷史事實的陳述可能被視為構成 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。

Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, all of which are described in the Company's filings with the SEC and which includes today's press release.

由於存在許多風險和不確定性，未來的實際結果可能與此類聲明中建議的結果存在重大差異，所有這些都在公司向 SEC 提交的文件中進行了描述，其中包括今天的新聞稿。

Today's call will include references to non-GAAP financial measures such as adjusted EBITDA. A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures is available within the earnings release, which can be found on our website.

今天的電話會議將提及非公認會計準則財務指標，例如調整後的 EBITDA。這些非公認會計原則財務指標與最具可比性的公認會計原則財務指標的調節表可在收益報告中找到，該報告可以在我們的網站上找到。

Now I would like to turn the call over to Mark.

現在我想把電話轉給馬克。

Thank you, Bruce, and welcome, everyone. I joined the Company last summer with one goal to help this team and this amazing Company execute a successful turnaround plan to return Beachbody to its roots of being solidly profitable.

謝謝你，布魯斯，歡迎大家。我去年夏天加入該公司的一個目標是幫助這個團隊和這家令人驚嘆的公司執行一項成功的扭虧為盈計劃，使 Beachbody 恢復穩定盈利的根源。

And as the leader in helping people get healthy results with our fitness and nutrition products, we've made incredible strides in the last seven months and it shows in the results this quarter and for the year last quarter, we told you we would lower the breakeven point of our Compnay, improve our liquidity and expand our sales channels and continue to execute against our turnaround plan.

作為透過我們的健身和營養產品幫助人們獲得健康結果的領導者，我們在過去七個月中取得了令人難以置信的進步，這在本季度和上個季度的結果中得到了體現，我們告訴過您，我們將降低我們公司的損益平衡點，提高我們的流動性，擴大我們的銷售管道，並繼續執行我們的扭虧為盈計畫。

I'm happy to report that during the fourth quarter, we accomplished all of these goals. We dramatically lowered our revenue breakeven from over $900 million in 2022 to less than $500 million in 2024.

我很高興地向大家報告，在第四季度，我們實現了所有這些目標。我們將營收損益平衡點從 2022 年的 9 億多美元大幅降低到 2024 年的不到 5 億美元。

We put an agreement in place to expand our sales presence on Amazon we improved our liquidity position, and we're going to continue to execute against our turnaround plan by posting positive adjusted EBITDA performance.

我們達成了一項協議，以擴大我們在亞馬遜上的銷售業務，我們改善了我們的流動性狀況，我們將繼續執行我們的周轉計劃，公佈積極的調整後 EBITDA 業績。

This quarter, we exceeded both revenue and adjusted EBITDA guidance and we can confidently state that we will achieve a milestone event by becoming cash flow positive in Q1 of 2024, which would be the first time since 2020 we built significant operating leverage in the P&L and were actively deploying several operating strategies this quarter and getting encouraging results.

本季度，我們超出了收入和調整後EBITDA 指導，我們可以自信地說，我們將在2024 年第一季實現現金流為正，從而實現里程碑事件，這將是自2020 年以來我們首次在損益表和損益表中建立顯著的營運槓桿本季積極部署多項營運策略，並取得了令人鼓舞的成果。

As a reminder, our turnaround plan has been focused on enhancing our liquidity, re-architecting, our selling and marketing, digital experience and nutrition business to drive revenues and continuing our cost transformation and re-architecture of the Company to dramatically reduce our breakeven point without undermining the core business model that generates the revenue.

提醒一下，我們的扭虧為盈計畫一直專注於增強我們的流動性、重新架構、銷售和行銷、數位體驗和營養業務，以增加收入，並繼續我們的成本轉型和公司重新架構，以大幅降低我們的損益平衡點而不破壞產生收入的核心業務模式。

We actually accomplished what we said we would do in each of these areas this quarter. Our fourth quarter performance gives us confidence that we will be cash flow positive in the first quarter of 2024 and puts us in a good position for the remainder of the year and beyond.

我們實際上完成了本季在每個領域所承諾要做的事情。第四季的業績讓我們相信，我們將在 2024 年第一季實現正現金流，並使我們在今年剩餘時間及以後處於有利地位。

I'll now expand on our liquidity enhancement.

我現在將詳細介紹我們的流動性增強情況。

Before I turn it over to Carl, who will update you on our market strategy in our digital and nutrition businesses, and then Marc will close out with an update on our cost transformation initiatives. On the liquidity front, we've been enhancing our balance sheet with numerous actions, including a capital raise in Q4. We're selling non-core assets and those things that help to enhance the overall liquidity position of the Company.

在我將其交給卡爾之前，他將向您介紹我們在數位和營養業務方面的市場策略的最新情況，然後馬克將介紹我們成本轉型計劃的最新情況。在流動性方面，我們一直在透過多項行動來改善我們的資產負債表，包括第四季度的融資。我們正在出售非核心資產以及那些有助於增強公司整體流動性狀況的資產。

The combination of these actions enhanced the balance sheet by over $10 million to date. This, along with our reduced breakeven point has put us in a position to generate positive free cash flow in Q1 of 2024. We believe that our improved liquidity position puts us in a better position to execute on our strategic initiatives to take advantage of the competitive advantages of the Company and to stabilize and drive revenue while importantly, building cash.

迄今為止，這些行動的結合使資產負債表增加了超過 1000 萬美元。再加上我們收支平衡點的降低，使我們能夠在 2024 年第一季產生正的自由現金流。我們相信，流動性狀況的改善使我們能夠更好地執行我們的策略性舉措，以利用公司的競爭優勢，穩定和增加收入，同時重要的是，建立現金。

In 2023 we successfully completed our reinvention and simplification of our digital platform, and we're extremely pleased with the results evidenced by the stable quarter to quarter revenues. We also have healthy retention metrics, and we were just awarded the top-rated fitness app in 2023 by CNN.

2023 年，我們成功完成了數位平台的重塑和簡化，我們對穩定的季度收入所證明的結果感到非常滿意。我們還擁有健康的保留指標，我們剛剛被 CNN 評為 2023 年最受好評的健身應用程式。

I'm also excited to share the new initiatives to rebuild the value of our nutrition business with a robust spotlight schedule on a different supplement every month. We will also continue the expansion of our nutrition business on Amazon, and we've got compelling new product initiatives scheduled to be introduced throughout 2024.

我也很高興與大家分享重建我們營養業務價值的新舉措，每月都會專注於不同的補充劑。我們也將繼續在亞馬遜上擴展我們的營養品業務，並計劃於 2024 年推出引人注目的新產品計劃。

In addition, we now believe that our database of 14 million contacts includes potential beachbody nutritional supplement customers who collectively purchased well over $1 billion of our nutritional products since 2016, we intend to create tailored nutritional offers designed to reengage that massive reservoir of millions of our former nutritional subscribers. As part of our nutritional turnaround plan for 2024 and beyond.

此外，我們現在相信，我們的1400 萬聯絡人資料庫中包括潛在的海灘營養補充品客戶，自2016 年以來，他們總共購買了超過10 億美元的我們的營養產品，我們打算創建量身定制的營養產品，旨在重新吸引數以百萬計的消費者。前營養訂閱者。作為我們 2024 年及以後營養轉型計劃的一部分。

Stepping back, I believe we've barely scratched the surface on the enormous whitespace that's in front of us. Some of the major opportunities are as follows. We have significant potential to expand our sales. Aperture to partnerships with large organizations will be expanding our outreach and appeal to the male demographic, which represents roughly 50% of the digital fitness and nutrition TAM and yet is only around 15% of our business today, despite our rich past with the male market, Carl will talk more about the mail market initiative later.

退後一步，我相信我們僅僅觸及了擺在我們面前的巨大空白的表面。一些主要機會如下。我們具有擴大銷售的巨大潛力。與大型組織建立合作夥伴關係將擴大我們的業務範圍並吸引男性群體，儘管我們在男性市場上擁有豐富的歷史，但男性群體約佔數位健身和營養TAM 的50%，但目前僅占我們業務的15% 左右，卡爾稍後將詳細談論郵件市場措施。

And he'll also unveil a significant initiative which builds upon our successful history of leveraging our existing award-winning content in a very new and exciting way that augments our conventional subscription model. As I look across this marketplace, I believe that the fitness industry is still very fragmented and it's ripe for consolidation.

他還將推出一項重大舉措，該舉措建立在我們以一種全新且令人興奮的方式利用現有獲獎內容的成功歷史之上，增強了我們的傳統訂閱模式。當我縱觀這個市場時，我相信健身產業仍然非常分散，整合的時機已經成熟。

I purchased many, many companies during my career. And I believe that once our turnaround is complete, we will be in a strong position to use our $340 million federal NOL and our $385 million state NOL as a powerful vehicle to initiate a meaningful consolidation within the fitness and nutrition industries.

在我的職業生涯中，我買了許多很多公司。我相信，一旦我們的轉型完成，我們將處於有利地位，可以利用 3.4 億美元的聯邦 NOL 和 3.85 億美元的州 NOL 作為強大的工具，在健身和營養行業內發起有意義的整合。

I want to reiterate my confidence in the value of the body platform. The Compnay holds in valuable assets, including what we believe to be the world's most extensive digital fitness library of a range of highly efficacious nutritional products and a massive database in excess of 14 million contacts.

我想重申我對身體平台價值的信心。該公司擁有寶貴的資產，包括我們認為世界上最廣泛的數位健身庫，其中包含一系列高效營養產品，以及擁有超過 1400 萬聯繫人的龐大資料庫。

That will be the focus of our win-back programs, along with our large base of subscribers who have a very, very low churn rate and of course, our highly skilled leadership team, what we have accomplished thus far and our transformation in such a short time is a testament to the power of the platform and the team's hard work.

這將是我們贏回計劃的重點，還有我們龐大的用戶流失率非常非常低，當然還有我們高素質的領導團隊，我們迄今為止所取得的成就以及我們在這樣的環境下的轉型。短暫的時間證明了平台的力量和團隊的努力。

Now I will turn it over to Carl to discuss the progress we've made on our initiatives call.

現在我將把它交給卡爾來討論我們在倡議呼籲中取得的進展。

Thanks, Mark. Our progress in 2023 marks significant milestones in our turnaround in an environment that has challenged the entire industry. And I'm very pleased with our progress. We lowered our cost structure and position the Company to substantially improve its operating leverage as we position ourselves for the kind of growth that's possible with our unique and agile business model, we revamped and simplified our digital platform with the launch of the consolidated body subscription in March 2023, we reconfigured our subscription pricing into an annual offering for $179.

謝謝，馬克。我們在 2023 年取得的進展標誌著我們在整個產業面臨挑戰的環境中實現轉型的重要里程碑。我對我們的進展感到非常滿意。我們降低了成本結構，並使公司能夠大幅提高其營運槓桿，因為我們將自己定位為透過我們獨特而敏捷的業務模式可能實現的成長，我們透過在2023 年3 月，我們將訂閱價格重新配置為每年179 美元。

And I'm pleased that our monthly subscriber retention has remained stable through these changes. Likewise, as Mark mentioned, we were rated the top workout and fitness app by CNN for 2023. We don't take this recognition lightly and I'm extremely proud of our team that continues to provide the best fitness and nutrition solutions for the consumer.

我很高興透過這些變化我們的每月訂戶保留率保持穩定。同樣，正如 Mark 所提到的，我們被 CNN 評為 2023 年最佳鍛鍊和健身應用程式。我們不會輕視這項認可，我為我們的團隊感到非常自豪，他們繼續為消費者提供最好的健身和營養解決方案。

Now let me start by updating you on the sales and marketing initiatives that we discussed on our Q3 earnings call. Then I'll outline some of our key 2024 initiatives.

現在，讓我先向您介紹我們在第三季財報電話會議上討論的銷售和行銷計劃的最新情況。然後我將概述我們 2024 年的一些關鍵舉措。

First, we introduced a new compensation plan to our network of partners to better reward their productivity. And I'm pleased that our network has been reinvigorated with the addition of these incentives, along with the launch of our new programs such as dig deeper, a new weight lifting program by super trainer, [Sean T]. that's attracting significant demand. Also, our partnership with Brendan Beshar, leading motivator and high performance habits expert has been very well received by our network of partners.

首先，我們向合作夥伴網路引入了新的薪酬計劃，以更好地獎勵他們的生產力。我很高興我們的網路隨著這些激勵措施的增加以及新計劃的推出而重新煥發活力，例如超級訓練師 [Sean T] 推出的新舉重計劃「深入挖掘」。這吸引了大量的需求。此外，我們與領先的激勵者和高績效習慣專家 Brendan Beshar 的合作也得到了我們合作夥伴網絡的好評。

Second, performance marketing continues to produce strong return on ad spend, particularly as we're working closely with Meta to continue expanding our visibility on all of their social networks.

其次，效果行銷繼續為廣告支出帶來強勁回報，特別是當我們與 Meta 密切合作以繼續擴大我們在他們所有社交網路上的知名度時。

Third, customer database reactivation. We continue to aggressively mine our customer database of prospect e-mail addresses in the fourth quarter and the month of January, we converted a sizable cohort in each of those periods. Conversion rates are very encouraging and exceeded our expectations. We'll keep enhancing this core competence to reactivate pass customers and improve engagement, retention and lifetime value KPIs, especially with a new initiative coming in April, which I'll describe in a minute.

第三，客戶資料庫重新啟動。我們在第四季和一月繼續積極挖掘潛在電子郵件地址的客戶資料庫，在每個時期我們都轉換了相當大的群體。轉換率非常令人鼓舞，超出了我們的預期。我們將持續增強這項核心能力，以重新啟動通行證客戶並提高參與度、保留率和終身價值 KPI，特別是 4 月推出的一項新舉措，我將在稍後對此進行描述。

Fourth, we continue to ramp up activity on Amazon with our new agency and should start to see benefits through improved listing optimization and increased SKU count on the platform throughout the year. And fifth, we launched body previews in Q4 where customer prospect can view over 120 sample workouts for free.

第四，我們繼續與新代理商一起加強在亞馬遜上的活動，並且應該開始看到透過改進清單優化和全年增加平台上的 SKU 數量所帶來的好處。第五，我們在第四季度推出了身體預覽，潛在客戶可以免費查看 120 多個範例鍛鍊。

These prospects are now seeing the value of our content before we ask for the order, resulting in a strong conversion ratio of free sign-ups to paying subscribers and conversion is exceeding our expectations. Now we're focused on increasing the visibility of this channel through YouTube, new partnerships and capturing significant traffic that visits our sites every month.

現在，這些潛在客戶在我們要求訂購之前就看到了我們內容的價值，導致免費註冊到付費訂閱者的轉換率很高，而且轉換率超出了我們的預期。現在，我們的重點是透過 YouTube、新的合作夥伴關係來提高該頻道的知名度，並吸引每月訪問我們網站的大量流量。

Moving to 2024 initiatives first, in late March, we're making our programs available for digital program, purchase and download, allowing customers to buy a title and stream it over our platform without being a subscriber similar to the DVD purchase model, which is very profitable and the cornerstone of scaling our business for two decades.

首先，在3 月下旬，我們將推出2024 年計劃，讓我們的節目可供數位節目、購買和下載，允許客戶購買節目並透過我們的平台進行串流傳輸，而無需成為類似於DVD 購買模式的訂閱者，即非常有利可圖，是我們二十年來業務擴展的基石。

We believe this new initiative will satisfy consumers who have a strong affinity for titles in our catalog or for people who just prefer to own and download the content. This is an exciting complement to our current subscription business and will leverage our competitive advantage of monetizing our strong branded library of titles.

我們相信，這項新措施將滿足那些對我們目錄中的作品有強烈興趣的消費者，或者只是喜歡擁有和下載內容的消費者。這是對我們目前訂閱業務的令人興奮的補充，並將利用我們透過強大的品牌圖書庫獲利的競爭優勢。

Imagine the latent demand in the market to own programs like P90X, 21-day fit and insanity. This is a big opportunity and no other platform has the capability and library the body.

想像一下市場上對 P90X、21 天健身和瘋狂等項目的潛在需求。這是一個巨大的機會，沒有其他平台有能力和庫體。

Next, we intend to have a greater focus on targeting men currently over 85% of our subscribers are women. So there's a substantial untapped market opportunity. Our legacy programs such as P90X and newer weight lifting programs like dig deeper and lift more provide content that's super effective and appealing to the male audience.

接下來，我們打算更關注男性用戶，目前超過 85% 的訂閱者是女性。因此，存在大量尚未開發的市場機會。我們的傳統項目（例如 P90X）和較新的舉重項目（例如「挖得更深」和「舉得更多」）提供的內容非常有效且對男性觀眾有吸引力。

We don't need to build a new skill set to reach men because in our 25 year history we've had a significant content and supplement business with men with new efficiencies we've achieved in performance marketing. We're confident we can return to attracting and retaining a significant number of male customers.

我們不需要建立一套新的技能來吸引男性，因為在我們 25 年的歷史中，我們在績效行銷方面取得了新的效率，因此與男性建立了重要的內容和補充業務。我們有信心能重新吸引並留住大量男性顧客。

And last, as Mark also mentioned, we'll be focusing on rebuilding our nutrition business with special bundling configurations, monthly nutrition products, spotlight in app merchandising and new products launching in Q3 and Q4.

最後，正如馬克還提到的那樣，我們將專注於重建我們的營養業務，包括特殊的捆綁配置、每月的營養產品、應用程式行銷的重點以及第三季和第四季推出的新產品。

In summary, I'm very pleased that our strategic efforts are beginning to yield the results intended, as evidenced by one delivering a much lower breakeven point to provide some safety as we navigate the turbulence in the health and fitness sector, and two, generating positive adjusted EBITDA and guiding to be free cash flow positive in Q1 2024.

總之，我很高興我們的策略性努力開始產生預期的結果，一是提供了低得多的盈虧平衡點，以在我們應對健康和健身領域的動盪時提供一定的安全性，二是產生調整後的EBITDA 為正，並指導2024 年第一季自由現金流為正。

These results reflect the progress we aim for in our turnaround plan. And as I think about 2024, I'm excited about the road ahead for the Compnay and the prospect of helping more people find the right solution for their overall health and fitness needs. We are a unique Company in that respect, and I appreciate the effort of our team and support of our investors to provide this incredibly important service.

這些結果反映了我們在周轉計劃中所取得的進展。當我想到 2024 年時，我對公司未來的道路以及幫助更多人找到適合其整體健康和健身需求的正確解決方案的前景感到興奮。在這方面，我們是一家獨特的公司，我感謝我們團隊的努力和投資者的支持，以提供這項極其重要的服務。

Okay. Now let me turn the call over to Marc Suidan to walk through the specifics of our fourth quarter financials.

好的。現在讓我將電話轉給 Marc Suidan，詳細介紹我們第四季的財務狀況。

Thanks, Carl, and hello, everyone. We are excited to share that we exceeded guidance on revenue and adjusted EBITDA in the fourth quarter of 2023, including our first positive adjusted EBITDA quarter for the year. We continue to execute on our turnaround plan and the results are starting to bear fruit as demonstrated by our lower cost structure and our stabilized digital streaming revenue.

謝謝卡爾，大家好。我們很高興地告訴大家，我們在 2023 年第四季的營收和調整後 EBITDA 超出了指導，包括今年第一個正調整 EBITDA 季度。我們繼續執行我們的周轉計劃，結果開始取得成果，我們較低的成本結構和穩定的數位串流媒體收入證明了這一點。

With the Company's new operating leverage and cost structure in place, we can be free cash flow positive at this level of revenue. As Carl discussed, we believe that the foundation is set for us to return to growth getting into the financial results for the quarter.

憑藉公司新的營運槓桿和成本結構，我們可以在這個收入水準上實現正自由現金流。正如卡爾所討論的，我們相信進入本季度的財務表現後，我們已經為恢復成長奠定了基礎。

Let me start with revenues. Revenues for the quarter came in at $119 million, which exceeded the Company's high point of guidance and was 8% higher than the guidance midpoint. Revenues were 7% below the prior quarter and 20% below the prior year fourth quarter. The year-over-year decline in quarterly revenue improved each quarter throughout 2024.

讓我從收入開始。該季度的收入為 1.19 億美元，超出了公司指導的最高點，並且比指導中點高出 8%。營收較上一季下降 7%，較去年第四季下降 20%。2024 年每季營收年減的情況都有所改善。

Digital revenue of $64 million was essentially flat compared to the last quarter. On a year-over-year basis, digital revenue was down 7% from the fourth quarter of last year. We had 1.3 million digital subscribers as of December 31, of which 80% of them were on the premium body platform. Nutrition revenue of $52 million declined by 12% quarter over quarter and 31% from the prior year fourth quarter.

數位收入為 6,400 萬美元，與上一季基本持平。與去年同期相比，數位收入比去年第四季下降了 7%。截至 12 月 31 日，我們擁有 130 萬數位訂閱者，其中 80% 在優質車身平台上。營養品收入為 5,200 萬美元，季減 12%，比去年第四季下降 31%。

The end of the year, we had 160,000 nutrition subscriptions. As Mark and Carl mentioned, we are now laser focused on turning around the nutrition supplement business. Connected Fitness revenue, which is our connected bikes, was $3.2 million, down from $4.9 million in the prior quarter and $4.7 million in the prior year fourth quarter. We continue to strategically use promotions to sell our existing inventory.

到了年底，我們的營養訂閱量達到 16 萬。正如馬克和卡爾所提到的，我們現在專注於扭轉營養補充品業務。Connected Fitness 營收（即我們的連網自行車）為 320 萬美元，低於上一季的 490 萬美元和去年第四季的 470 萬美元。我們繼續策略性地利用促銷活動來銷售現有庫存。

Moving on to gross margin, our gross margin for the fourth quarter was 62.2%, up from 58.5% in the prior quarter and up from 57.1% in the prior year fourth quarter. For the year, the gross margin was 61.3%, up from 53.4% in 2022, representing a 790 basis point improvement. Our digital gross margin was 73.1% down from 74.5% in the prior quarter and down from 77.4% in the prior year fourth quarter. The decline from the prior year is largely due to sales deleverage. However, we are at the tail end of our 2021 content amortization when our capitalized content was significantly higher.

說到毛利率，我們第四季的毛利率為 62.2%，高於上一季的 58.5%，也高於去年第四季的 57.1%。全年毛利率為 61.3%，較 2022 年的 53.4% 提高 790 個基點。我們的數位毛利率為 73.1%，低於上一季的 74.5%，也低於去年第四季的 77.4%。年比下降主要是由於銷售去槓桿化。然而，我們正處於 2021 年內容攤銷的尾聲，此時我們的資本化內容明顯更高。

So the 2024 digital gross margin will now benefit from lower content amortization. We have been shifting to a more efficient content production schedule, which has dramatically reduced our capitalized expenditures. Nutrition gross margin was 53.2% in line with the prior quarter and above the 49.8% in the prior-year fourth quarter. Despite losing scale, our nutrition gross margin improved compared to the prior year, given our focus on pricing, supply chain optimization, and tighter inventory management.

因此，2024 年的數位毛利率現在將受益於較低的內容攤提。我們一直在轉向更有效率的內容製作計劃，這大大減少了我們的資本支出。營養品毛利率為 53.2%，與上一季持平，高於去年第四季的 49.8%。儘管規模縮小，但由於我們專注於定價、供應鏈優化和更嚴格的庫存管理，我們的營養品毛利率比前一年有所改善。

Connected Fitness gross margin was minus 13%, a significant improvement sequentially and from the prior year fourth quarter when the gross margin was greater than minus 100% for both of those comparable periods.

Connected Fitness 毛利率為-13%，比上一季和去年第四季都有顯著改善，當時兩個可比時期的毛利率均大於-100%。

Moving on to operating expenses, excluding the asset impairment and restructuring charges, our operating expenses were 76.7% of revenue, an improvement from 80.1% in the prior year and in line with 76.8% in the fourth quarter of last year. In terms of absolute dollars, our operating expenses, excluding the asset impairment and restructuring charges, improved by 11% from the prior quarter and by 20% from the prior year. We continue to aggressively manage our costs and are in a great position to drive operating leverage.

說到營運費用，不包括資產減損和重組費用，我們的營運費用佔營收的 76.7%，比上年的 80.1% 有所改善，與去年第四季的 76.8% 持平。以絕對美元計算，我們的營運費用（不包括資產減損和重組費用）比上一季提高了 11%，比上年提高了 20%。我們持續積極管理成本，並處於提高營運槓桿的有利位置。

Selling and marketing was 50% of revenue this quarter an improvement from 54% in the prior quarter and in line with the prior year fourth quarter. Generally, we spend less on media in the fourth quarter, given the constant fitness seasonality. Going forward, we will have a 1,000 basis points improvement in selling and marketing that will be reflected in our 2024 results.

本季銷售和行銷佔營收的 50%，較上一季的 54% 有所提高，與去年第四季的情況一致。一般來說，考慮到健身季節性的持續變化，我們在第四季度在媒體上的支出較少。展望未來，我們的銷售和行銷將提高 1,000 個基點，這將反映在我們 2024 年的業績中。

Back-end development was 15% of revenue, same as the prior quarter and higher than the 14% of revenue in the prior year fourth quarter. In absolute dollars, we reduced our expenses by 6% from the prior quarter and by 15% over the prior year. G&A is 11% of revenue this quarter in line with the prior quarter and down from 13% in the prior year. In absolute dollars, we reduced our G&A by 8% from the prior quarter and by 30% from the fourth quarter of last year. Overall, we continue to find ways to make our business more efficient and reduce our breakeven point.

後端開發佔營收的 15%，與上一季持平，高於去年第四季的 14%。以絕對美元計算，我們的開支比上一季減少了 6%，比去年同期減少了 15%。本季的一般管理費用佔營收的 11%，與上一季持平，低於上年的 13%。以絕對美元計算，我們的一般管理費用比上一季減少了 8%，比去年第四季減少了 30%。總體而言，我們將繼續尋找提高業務效率並降低損益平衡點的方法。

Compared to 2021, we have reduced our fixed costs and capital expenditures by $165 million annually. In 2024, we are planning an additional $35 million in savings to bring the total savings to $200 million compared to 2021. As it relates to our net loss, we had goodwill and intangible asset impairment charges of $43 million, which increased our net loss to $65 million in Q4 compared to a $33 million loss in the prior quarter and $45 million loss in the fourth quarter of last year.

與 2021 年相比，我們每年減少固定成本和資本支出 1.65 億美元。到 2024 年，我們計劃再節省 3,500 萬美元，使總節省額比 2021 年達到 2 億美元。由於與我們的淨虧損相關，我們的商譽和無形資產減損費用為4,300 萬美元，這使我們第四季的淨虧損增加至6,500 萬美元，而上一季的虧損為3,300 萬美元，去年第四季的虧損為4,500 萬美元。年。

Excluding these charges, the net loss would have been $22 million which is a substantial improvement from $33 million loss in the prior quarter and a $26 million loss in the prior year fourth quarter, exclusive of intangible asset impairment charges. As for adjusted EBITDA, we reported positive adjusted EBITDA of $3 million.

排除這些費用，淨虧損將為 2,200 萬美元，較上一季的 3,300 萬美元虧損和去年第四季的 2,600 萬美元虧損（不包括無形資產減損費用）有了大幅改善。至於調整後 EBITDA，我們報告調整後 EBITDA 為 300 萬美元。

This was well ahead of our guidance and a meaningful improvement from the prior quarter loss of $6 million. The prior year fourth quarter also had a similar positive adjusted EBITDA, but was driven by the bonus amount that we decided to settle in equity. Factoring out the prior year anomaly, this was the first positive adjusted EBITDA quarter since going public in 2021.

這遠遠超出了我們的指導，並且比上一季 600 萬美元的虧損有了顯著的改善。去年第四季也有類似的正調整 EBITDA，但受到我們決定以股本結算的獎金金額的推動。考慮到上一年的異常情況，這是自 2021 年上市以來第一個調整後的 EBITDA 正值季度。

Moving onto the balance sheet. Our cash balance finished at $33 million, $5 million less than in prior quarter. Given seasonality, Q4 has the lowest cash billings in our new selling and marketing cost structure had not taken effect. We did a capital raise to improve our liquidity and that enhanced our cash position by $5 million. We also announced last week the sale of our Van Nuys production facility. This sales leaseback transaction further enhances our liquidity position in the first quarter of 2024.

轉向資產負債表。我們的現金餘額最終為 3,300 萬美元，比上一季減少 500 萬美元。考慮到季節性，第四季度的現金帳單在我們新的銷售和行銷成本結構尚未生效的情況下是最低的。我們進行了融資以改善我們的流動性，這使我們的現金狀況增加了 500 萬美元。上週我們也宣佈出售範奈斯生產設施。這次售後回租交易進一步增強了我們2024年第一季的流動性狀況。

Inventory was $25 million, down from $32 million in the prior quarter. This is the tenth consecutive quarter of net inventory reduction as we continue to tightly balanced our demand and supply requirements. Our content and tech CapEx was in line with prior quarters at $3.7 million. For the year, the CapEx was $15.6 million compared to $38.7 million in 2022, representing a 60% improvement. We continue to be judicious in our technology investments and our production schedule.

庫存為 2500 萬美元，低於上一季的 3200 萬美元。這是連續第十個季度淨庫存減少，因為我們繼續嚴格平衡需求和供應需求。我們的內容和技術資本支出與前幾季持平，為 370 萬美元。今年的資本支出為 1,560 萬美元，與 2022 年的 3,870 萬美元相比，提高了 60%。我們繼續審慎地進行技術投資和生產計劃。

We are producing new content at significantly less production cost, which requires less CapEx. It should be noted that we have a major advantage in our program library, as we have a large selection of evergreen content that continues to resonate with our subscriber base.

我們正在以顯著降低的生產成本生產新內容，從而需要更少的資本支出。應該指出的是，我們在節目庫中擁有一個主要優勢，因為我們擁有大量精選的常青內容，這些內容不斷與我們的訂戶群產生共鳴。

Looking at our cash flows, our cash used in operations for the year was $23 million compared to $47 million in 2022, representing an improvement of 51%. Our free cash flows, which is the combination of cash flows used in operating activities and CapEx under investing activities improved by 59% for the year in 2023 compared to 2022.

從我們的現金流來看，我們今年營運中使用的現金為 2,300 萬美元，與 2022 年的 4,700 萬美元相比，成長了 51%。與 2022 年相比，2023 年我們的自由現金流（即經營活動中使用的現金流量和投資活動下的資本支出的組合）提高了 59%。

Looking at the quarter ahead, we will start to see benefits of both our $200 million savings over 2021 and a targeted 1,000 basis points improvement in selling and marketing. All this sets up the next quarter to be free cash flow positive. We expect the first quarter revenues to be in the range of $113 million to $121 million.

展望未來季度，我們將開始看到 2021 年節省 2 億美元以及銷售和行銷目標提高 1,000 個基點的好處。所有這些都使下一季的自由現金流為正。我們預計第一季營收將在 1.13 億美元至 1.21 億美元之間。

We expect a net loss in the range of $15 million to $10 million and an adjusted EBITDA in the range of $0 to positive $5 million. We are also expecting to be free cash flow positive in Q1 of 2024, which will be the first time since 2020. We are very proud of our accomplishments to date and look forward to keep sharing results from our turnaround.

我們預計淨虧損在 1500 萬美元到 1000 萬美元之間，調整後的 EBITDA 在 0 到正 500 萬美元之間。我們也預計 2024 年第一季自由現金流為正，這將是自 2020 年以來首次。我們對迄今為止所取得的成就感到非常自豪，並期待繼續分享我們扭虧為盈的成果。

Now I will turn the call back over to the operator to open it up for questions.

現在我將把電話轉回給接線生以供提問。

We will now begain the Q&A session. (Operator Insturctions)

我們現在開始問答環節。（操作員說明）

George Kelly, ROTH.

喬治凱利，羅斯。

Hey, everybody thanks for taking my questions. So fulfillment to go through. First, maybe I'll start on the commission structure changes. I'm curious, is the full impact of those changes reflected in your Q1 guide or is that something where we'll see a lot of it, but there will be sort of it continued tailwind throughout the year that is at greater impacted Q2 through Q4.

嘿，謝謝大家回答我的問題。所以要經歷滿足。首先，也許我會從佣金結構的改變開始。我很好奇，這些變化的全部影響是否反映在第一季度指南中，或者我們會看到很多變化，但全年都會有持續的順風，對第二季度的影響更大Q4。

Hey, George, great to have you on. This is Marc Suidan. So what I would say on that one, George, is as you know, we said there's going to be 1,000 basis points improvement in 2024. It started off in January. That's a factor of multiple things, including the incentive comp plan as well as the aggressive win-back body previews and so on.

嘿，喬治，很高興有你在。這是馬克·蘇伊丹。喬治，我想說的是，正如你所知，我們說過 2024 年將會有 1,000 個基點的改善。事情從一月開始。這是多種因素的影響，包括激勵補償計劃以及積極的贏回身體預覽等等。

So I just want to make sure everybody knows that the multiple of factor that influenced that number I do think it should have a tailwind throughout the year because remember, when you start off in January, you also have deferred costs, right? That's coming in from the prior year on the balance sheet. So it kind of takes effect all throughout the year at an accelerating pace.

所以我只是想確保每個人都知道影響這個數字的因素的倍數，我確實認為它應該全年都有順風，因為記住，當你在一月份開始時，你也有遞延成本，對嗎？這是上一年資產負債表上的數據。因此，它全年都在加速生效。

Okay. And now here, we are several months past when you first announced those changes and I'm just curious what you've seen as far as the reaction from your partner network? And has it been pretty consistent that people are still engaged or has there been much pullback?

好的。現在，當您首次宣布這些變更時，已經過去了幾個月，我只是好奇您所看到的合作夥伴網路的反應如何？人們的參與度是否始終如一，還是有很大的回落？

Hi, George. This is Carl, and I appreciate the question. So we're actually very pleased with the response within the network because what we're doing is rewarding productivity. So it's really had a a great galvanizing effect to get the network back in gear, understanding their role in getting the word out bringing in new customers.

嗨，喬治。我是卡爾，我很欣賞這個問題。所以我們實際上對網路內的反應非常滿意，因為我們正在做的是獎勵生產力。因此，了解他們在宣傳引入新客戶方面的作用，確實對讓網路恢復正常產生了巨大的激勵作用。

And we're definitely seeing the momentum since what we gain when we first announced the changes into the actual deployment of the changes in January. It's continuing to build. So the mood and demeanor of the network is actually very positive and intent on growing.

我們確實看到了自一月份首次宣布變更到實際部署變更以來所獲得的動力。它正在繼續建設。所以網路的情緒和風度其實是非常正面的並且致力於成長。

Okay. Thanks. And then a couple other topics I wanted to cover first, and this is sort of a broad question, but and I'll just leave it that way on your Q1 guidance calls for kind of flattish sequential growth. And I'm curious, can you give any any kind of direction on your segment level growth underneath? What's what's baked into your guide as far as the sequential digital and sequential nutrition growth.

好的。謝謝。然後是我想首先討論的其他幾個主題，這是一個廣泛的問題，但是我將在第一季度指導中保留這種方式，要求實現平穩的連續增長。我很好奇，您能為您的細分市場水準成長提供任何指導嗎？關於連續數位和連續營養成長，您的指南中包含了哪些內容。

And then a part to that question is and you listed a whole bunch of initiatives in both businesses and I'm curious on, do you anticipate them and like should we see that sort of sequential declines we've seen in the Nutrition business? Should those stabilize midyear? Like what's your anticipation for the rest of the year in both businesses, when are we going to start seeing signs the impact of these various initiatives?

然後這個問題的一部分是，您列出了這兩個業務的一大堆舉措，我很好奇，您是否預期這些舉措，以及我們是否應該看到營養業務中看到的那種連續下降？年中這些應該穩定嗎？就像您對今年剩餘時間對這兩個業務的預期是什麼一樣，我們什麼時候才能開始看到這些不同舉措的影響跡象？

George, what I would say is while we don't want to give guidance ahead of the Q1, as you noted, our initiatives are really a healthy mix of both the digital and nutrition. So we're attacking on all fronts. Our focus is being cash flow positive from a free cash flow definition standpoint on a sustainable basis. So I don't there is on that right. I would say you shouldn't see nutrition declined the way it did in the past in the coming year?

喬治，我想說的是，正如您所指出的，雖然我們不想在第一季之前提供指導，但我們的舉措確實是數位和營養的健康組合。所以我們要從各方面進攻。我們的重點是從自由現金流定義的角度來看，在可持續的基礎上實現正現金流。所以我不知道右邊有什麼。我想說，你不應該看到來年的營養狀況會像過去那樣下降嗎？

Yes. And George, this is Mark Goldston. Thanks for coming on. In terms of the nutritional questions. In terms of when you can possibly return to growth and what are the things we mentioned in our prepared remarks and you're going to see is this monthly spotlight on individual nutrition programs, which is really new for us.

是的。喬治，這是馬克‧戈德斯頓。感謝您的光臨。就營養問題而言。就您何時可以恢復增長以及我們在準備好的發言中提到的內容以及您將看到的個人營養計劃的每月焦點而言，這對我們來說確實是新的。

I mean, by and large, the majority of our nutrition is typically sold as part of a total solution pack bundle by the organization it versus an individual focus on nutrition, but with the huge growth in that category and the number of people that we've got in our network, both in terms of members and partners and the team really felt that focusing on individuals, spotlighted items month to month would raise the awareness within our own organization of selling the attrition and actually appeal to the people who are driving up the tremendous TAM in that market.

我的意思是，總的來說，我們的大部分營養品通常是作為整體解決方案包的一部分由組織出售，而不是個人專注於營養品，但隨著該類別的巨大增長以及我們的人數我們的網絡中，無論是成員、合作夥伴還是團隊，都確實認為，關注個人、每月重點關注的項目將提高我們組織內部銷售損耗的意識，並真正吸引那些正在提升的人該市場中巨大的TAM 。

So we feel really good about it. And you're going to see as we even get towards the back half of the year, we've got a lot of innovative ideas coming down the pike as it relates to nutrition. So I think what we've really done, George, is we bifurcated this into being a focus on building back the Nutrition business versus just selling it as part of a total package of products inclusive of digital fitness.

所以我們對此感覺非常好。你會看到，當我們進入下半年時，我們會出現許多與營養相關的創新想法。因此，喬治，我認為我們真正所做的是，我們將重點放在重建營養業務上，而不是僅僅將其作為包括數位健身在內的整套產品的一部分進行銷售。

Okay. Understood. That's helpful. Thank you. And then just two last quick questions. In your prepared remarks, you said that on the digital side of your business, your content amortization should step down and that will benefit the digital gross margin in 2014 and maybe provide a little bit more quantification on how meaningful is that? And then the second question is on the balance sheet. I saw the transaction that was announced here recently about the property sale, but is there anything else that's noncore that you're contemplating monetizing? And that's why. Thanks.

好的。明白了。這很有幫助。謝謝。然後是最後兩個簡單的問題。在你準備好的發言中，你說在你的業務的數字方面，你的內容攤銷應該下降，這將有利於2014 年的數字毛利率，並可能提供更多的量化來說明這有多大意義？第二個問題是關於資產負債表的。我看到了最近在這裡宣布的有關房產銷售的交易，但是還有其他非核心的事情您正在考慮貨幣化嗎？這就是原因。謝謝。

And George, on the first on CapEx, if you go back to our financials in 2021, for instance, the level of CapEx was significantly higher than than what it is now. I mean, if I take 2021 as a as an example I think it was like over $100 million. So if you look at our current run rate right now, like if I take this past year. That's the number is around the $15 million $16 million mark.

喬治，關於資本支出，如果你回顧我們 2021 年的財務數據，你會發現資本支出水準明顯高於現在。我的意思是，如果以 2021 年為例，我認為它會超過 1 億美元。因此，如果你看看我們現在的運行率，就像我去年的情況一樣。這個數字約為 1500 萬美元至 1600 萬美元大關。

So based on that, you could see that whatever we had capitalized on the balance sheet, we kind of just in the process of finishing the tail end of it. So as the year passes, you're just not going to see that come through into the P&L because we typically amortize those over three years. That's on the amortization question of the digital library.

因此，基於此，您可以看到，無論我們在資產負債表上進行了資本化，我們都只是在完成其尾部的過程中。因此，隨著時間的推移，您不會看到這些費用計入損益表，因為我們通常會在三年內攤提這些費用。這是關於數位圖書館的攤提問題。

On the question of Van Nay, you did see this past quarter part of enhancing our liquidity we sold non-core assets Van Nay was was the principal one real estate that we sold and the sales leaseback transaction. I don't think we have anything else on the balance sheet to expect at this point. Like I said, inventory has been run incredibly well.

關於 Van Nay 的問題，您確實看到上個季度為了增強我們的流動性，我們出售了 Van Nay 非核心資產，這是我們出售的主要房地產和銷售回租交易。我認為目前我們的資產負債表上沒有什麼好期待的。正如我所說，庫存運行得非常好。

You've had 10 quarters of that coming down, but that's a core asset. But in terms of anything else. We have a start-up investment we also sold in Q1. Those are subsequent events, both that and the Van Nay sales [leaseback].

你已經經歷了 10 個季度的下滑，但這是一項核心資產。但就其他方面而言。我們在第一季也出售了新創投資。這些都是後續事件，包括 Van Nay 拍賣會[回租]。

Okay, thanks.

好的謝謝。

Thank you, George.

謝謝你，喬治。

Jonathan Komp, Baird.

喬納森康普，貝爾德。

Yes, hi. Good afternoon, Mark. Sorry that I have a follow-up question. I believe you said in your prepared remarks but given me the operating cost structure you're at today, you're at a level to be free cash flow positive at the current level of revenue. Could you just maybe be more specific what level of revenue on an annual or ongoing basis does that refer to?

是的，嗨。下午好，馬克。抱歉，我有一個後續問題。我相信您在準備好的演講中說過，但考慮到您今天的營運成本結構，在當前的收入水平下，您的自由現金流處於正值水平。您能否更具體地說明一下，這指的是年度或持續收入水準嗎？

Hey, John, thanks for your remarks. As Mark Goldston stated in his section we've taken our revenue breakeven point from above $900 million to below $500 million. So if you think about this level, we're at times, four, we are -- we gave guidance that we would be both the EBITDA $0 to $5 million, right, which is a positive in Q1 and free cash flow positive. So the change in been talking about and been making for a while are have set up the Compnay to have incredible operating leverage. Sorry, John, go ahead.

嘿，約翰，謝謝你的發言。正如馬克·戈德斯頓 (Mark Goldston) 在他的部分中所述，我們已將收入盈虧平衡點從 9 億美元以上降至 5 億美元以下。因此，如果你考慮這個水平，我們有時會是四，我們給出的指導是，我們的 EBITDA 將為 0 至 500 萬美元，對吧，這在第一季度是正數，自由現金流也是正數。因此，一段時間以來人們一直在談論和做出的改變已經讓公司擁有了令人難以置信的營運槓桿。抱歉，約翰，請繼續。

Yeah, thank you. And just a follow-up. I think the last two years in the first quarter was roughly 27% to 29% of full year revenue. Are there factors that would cause that to be different this year and then maybe relatedly, when you think about all the initiatives, how far off do you think the business might be to be at a stage where the revenue is flat or growing again on a year-over-year basis?

是的，謝謝。只是後續行動。我認為過去兩年第一季的收入約佔全年收入的 27% 至 29%。是否有一些因素會導致今年的情況有所不同，然後也許相關的是，當您考慮所有舉措時，您認為業務距離收入持平或再次增長的階段還有多遠？同比基礎上？

Hey, John, it's Carl Daikeler. I'll let Mark answer the last part of the question. But as we outlined in terms of the initiatives, frankly, I'm more excited about the last three quarters the year than I am even about the first quarter because of the initiatives, the depth of our library and moving that into this concept of digital program purchases, which is something unique to body.

嘿，約翰，我是卡爾戴克勒。我會讓馬克回答問題的最後一部分。但正如我們在舉措方面概述的那樣，坦率地說，我對今年最後三個季度的興奮甚至比第一季度還要興奮，因為這些舉措、我們圖書館的深度以及將其轉化為數字概念程序購買，這是身體獨有的東西。

And our catalog that we built over 25 years is we have the ability to monetize those now as a total additive and extra part of the business. So we still have the subscription business. We still have the Nutrition business now we have the ability to sell the programs the way we did for basically 20 years on DVD. So we do expect as those start to roll out in April, but that will be additive to the overall revenue picture.

我們在 25 年來建立的目錄是，我們現在有能力將這些作為業務的總附加部分和額外部分貨幣化。所以我們還有訂閱業務。我們仍然擁有營養業務，現在我們有能力像 20 年來在 DVD 上所做的那樣銷售節目。因此，我們確實預計這些產品將於四月開始推出，但這將增加整體收入狀況。

Likewise, as Mark outlined, the nutrition spotlight and the diversification of our sales channels into Amazon into our database. Marketing will also be compounding as we roll through the year. And I expect all of that to bode well for this and the first quarter to not necessarily be the primary quarter of strength for us for the year.

同樣，正如馬克所概述的那樣，營養的關注和我們銷售管道的多樣化進入了亞馬遜資料庫。隨著這一年的推進，行銷也將變得更加複雜。我預計所有這些都是好兆頭，第一季不一定是我們今年表現強勁的主要季度。

And just a follow on John, to what Carl just said it is really important because the legacy of the Compnay, which is what made this the pioneer of the fitness industry, was it sold entitlements, you bought P90X. You bought insanity, you bought body beast.

繼續約翰的說法，卡爾剛才說過，這非常重要，因為公司的遺產使這家公司成為健身行業的先驅，它出售了權利，你購買了 P90X。你買了瘋狂，你買了身體野獸。

And then, of course, we transitioned to being purely subscription. Now that we're going to go back with this dual mode, we'll have subscription, but we'll also have these entitlements we can buy it gives us an additional catchment mechanism that we really have not had here for years because if for some reason you don't want to subscribe to a system, but you want to own the content.

然後，當然，我們轉變為純粹的訂閱。現在我們要回到這種雙模式，我們將有訂閱，但我們也將擁有這些我們可以購買的權利，它為我們提供了一個額外的集水機制，我們確實已經多年沒有在這裡了，因為如果由於某些原因，您不想訂閱系統，但想擁有該內容。

We've not been able to serve that to you. And now we can also use that, frankly, as a lever to trying to push people into the subscription business by using our ability to buy the content as an incentive. So there's a lot of exciting stuff coming down the pike you know, we're hyper-focused on cash, cash and cash, and that's still part of the program throughout the first half of this year.

我們無法為您提供該服務。坦白說，現在我們也可以利用它作為槓桿，透過利用我們購買內容的能力作為激勵，試圖推動人們進入訂閱業務。因此，有很多令人興奮的事情即將到來，你知道，我們高度關注現金、現金和現金，這仍然是今年上半年計畫的一部分。

We will absolutely not lower our cash focus in the second half. But these growth programs as they start to come out, can actually help us do both focus on growth for top line basis and also focus on liquidity. So but you have to get through the turnaround before you can really hit the gas pedal on any of those other initiatives. And that's about where we are right now.

下半年我們絕對不會降低對現金的關注。但這些成長計畫一旦開始推出，實際上可以幫助我們既專注於營收成長，又專注於流動性。因此，您必須先完成轉變，然後才能真正踩下任何其他舉措的油門。這就是我們現在的處境。

Okay, great. Last one for me. Just as a follow up, can you give any more context on the at the pricing of the new content model? Is there any risk of cannibalizing potential subscribers. So just interested how you're planning to price on the individual library.

好的，太好了。最後一張給我。作為後續行動，您能否提供更多有關新內容模型定價的背景資訊？是否存在蠶食潛在訂閱者的風險。所以只是感興趣您計劃如何對單個庫定價。

And then just on the Nutrition business, one separate question on pricing with now that you're selling that but the Nutrition on online as a standalone on Amazon, is there any feedback on comparability of pricing or any other reaction from the coach network that you're selling that separately? Thank you.

然後就營養業務而言，有一個關於定價的單獨問題，既然您正在銷售營養品，但在線營養作為獨立的亞馬遜，是否有任何關於定價可比性的反饋或您認為教練網絡的任何其他反應單獨出售嗎？謝謝。

Yes. So I'll answer the latter first. We're very careful to make sure that the value of the supplements are reflected wherever we sell them. And obviously, the network is extremely important for holding people accountable to their health and wellness goals.

是的。所以我先回答後者。我們非常謹慎地確保補充劑的價值在我們銷售的任何地方都能得到體現。顯然，網路對於讓人們對自己的健康和保健目標負責極為重要。

So our pricing is respectable is respecting and the diversification of channels. So we're not letting any one channel dominate, if you will, from a pricing perspective. So that all is that basically the strategy of a rising tide will float all boats in this. And in this strategy, of diversification.

所以我們的定價是可敬的，是尊重和管道的多元化。因此，如果您願意的話，從定價角度來看，我們不會讓任何一種管道佔據主導地位。因此，基本上，漲潮的策略將使所有船隻都漂浮在其中。在這個策略中，多元化。

As it relates to the cannibalization question, this is the big opportunity for us because the TAM is so large, there's really a very small opportunity for cannibalization. But frankly, we opened up the aperture for reaching more people because many people just aren't interested in a subscription. They want to own that program.

因為它涉及蠶食問題，這對我們來說是一個很大的機會，因為 TAM 太大了，蠶食的機會確實很小。但坦白說，我們打開了接觸更多人的管道，因為許多人只是對訂閱不感興趣。他們想擁有該程式。

And so now we have been able to do this for six years basically. But it's how the Company thrives from 1999 to 2018 effectively. So now we're going to be able to serve people where they want to be served, but also at the same time have the leverage.

所以現在我們基本上已經能夠做到六年了。但這就是公司從 1999 年到 2018 年有效蓬勃發展的方式。因此，現在我們將能夠在人們想要的地方為他們提供服務，同時也擁有影響力。

This is what Mark was talking about. We have the leverage of using the digital entitlement to incentivize people to actually upgrade to the subscription. And this is going to be a competitive advantage. So you can imagine somebody coming into buy P90X for $59. That's half of what you used to be able to buy at half the price of crude you buy for on DVD. But then we have the ability to say if you'd like to upgrade to the subscription.

這就是馬克所說的。我們可以利用數位權利來激勵人們實際升級到訂閱。這將成為一種競爭優勢。所以你可以想像有人以 59 美元的價格購買 P90X。這只是您以前購買 DVD 原油價格的一半。但隨後我們可以決定您是否願意升級到訂閱。

We can give you a special offer on that. So there's a lot of additional creativity and flexibility that we can provide to make sure that the customer is getting what they want.

我們可以為您提供特別優惠。因此，我們可以提供許多額外的創造力和靈活性，以確保客戶得到他們想要的東西。

And again, that's it. That's a competitive moat that we've got because no other Compnay has a library of over 120 branded programs that they can offer to people so that they're being we're solving a specific problem with a unique selling proposition that will help them. And that's why we think this is such a big opportunity for us.

再說一遍，就是這樣。這是我們擁有的一條競爭護城河，因為沒有其他公司擁有超過 120 個品牌計劃的庫，可以向人們提供這些計劃，以便他們能夠透過獨特的銷售主張解決特定問題，從而幫助他們。這就是為什麼我們認為這對我們來說是一個巨大的機會。

If we also listen, if you go back to the legacy of the Company, I mean today, as we said, you know, the male audience as a huge opportunity for us is only about 15% of the business where it used to be over half. So when the Compnay was in its glory days and it was selling entitlements, half of the business was met. So there's every reason to believe that when we go back and focus on this in addition to the subscription, we have a great stimulus for tapping into the mail market.

如果我們也聽聽，如果你回到公司的遺產，我的意思是今天，正如我們所說，你知道，男性觀眾對我們來說是一個巨大的機會，但只佔過去業務的 15% 左右。一半。因此，當公司處於輝煌時期並出售權益時，一半的業務就得到了滿足。因此，我們有充分的理由相信，當我們回過頭來關注訂閱之外的這一點時，我們對進軍郵件市場有很大的刺激。

Understood. Thanks again.

明白了。再次感謝。

Thank you, John.

謝謝你，約翰。

Thank you. BJ Cook, Singular Research.

謝謝。BJ Cook，奇異研究公司。

Hey, guys. Thanks for taking my call. The kind of question regarding your cost-cutting initiatives in combination with your new sales initiatives. So we see a lot of cost-cutting come from both G&A and selling and marketing.

大家好。感謝您接聽我的電話。此類問題涉及您的成本削減計劃與新的銷售計劃相結合。因此，我們看到大量成本削減來自一般管理費用以及銷售和行銷。

And just wondering, you know, if you guys are able to reinvigorate revenue growth, is that change or is that you're going getting touched on this, too, but and sales and marketing it go up from there and the lower fixed cost structure. Is it working out.

只是想知道，如果你們能夠重振收入成長，是這種變化還是你們也會接觸到這一點，但是銷售和行銷會從那裡開始上升，並且固定成本結構會降低。鍛煉了嗎。

Hi, BJ. This is Mark. This is a sustainable cost reduction, nothing we've done in the cost reduction impacts demand generation. It's quite the opposite while cutting back our costs. We've simplified our model reinvigorate or digital platforms got named the number one fitness platform by CNN for 2023. Our retention, our monthly retention stayed the same and all the initiatives we're talking about, whether it's Amazon, aggressive, win-back from the database, our body previews or targeting e-mail, none of them.

嗨，BJ。這是馬克。這是一種可持續的成本降低，我們在成本降低方面所做的一切都不會影響需求的產生。在削減成本的同時，情況恰恰相反。我們簡化了模型，讓數位平台煥發活力，或被 CNN 評為 2023 年第一健身平台。我們的保留率、我們的每月保留率保持不變，我們談論的所有舉措，無論是亞馬遜、積極進取、從資料庫贏回、我們的身體預覽還是針對電子郵件，都沒有。

None of this stuff is capital intensive at all fit within this new economic model we've created. So the cost savings we're doing does not impact demand quite the opposite.

這些東西都不是資本密集的，根本不適合我們創建的新經濟模式。因此，我們正在節省的成本不會對需求產生相反的影響。

And further to that, if I just could add, we have a very sophisticated way of analyzing our return on invested capital internally, we call it the allowable in terms of what we'll pay to acquire a customer. And our TLVDCAC. calculations are the really sophisticated is anybody's around. And so there is no governor on the spend as long as the yield is at or above your threshold levels.

除此之外，如果我可以補充一點，我們有一種非常複雜的方法來分析我們內部的投資資本回報率，我們稱之為“允許的”，即我們為獲取客戶而支付的費用。還有我們的 TLVDCAC。計算是任何人周圍都非常複雜的。因此，只要收益率等於或高於您的門檻水平，就沒有支出監管者。

And so and they have been. And so we can continue to feed the fuel into the fire as long as we maintain the allowables. And our team does a phenomenal job of being disciplined against that. So it will generate its own capital to re-invest.

他們也確實如此。因此，只要我們保持允許的範圍，我們就可以繼續在火中添加燃料。我們的團隊在遵守紀律方面做得非常出色。因此它將產生自己的資本進行再投資。

Do you have another question?

你還有其他問題想問嗎？

No, thank you very much. It's all I had.

不，非常感謝。這就是我所擁有的一切。

Sure. Thank you.

當然。謝謝。

Thank you. There are no further questions in queue. (Operator Instructions) There are no further questions in queue with that. I'd like to turn the call back over to the team for concluding remarks.

謝謝。隊列中沒有其他問題。（操作員說明）隊列中沒有其他問題。我想將電話轉回團隊進行總結發言。

Thank you very much, operator. And just in closing, I'd love to say that the turnaround is well underway. We're really pleased with the performance and the discipline that's been instilled in the Compnay towards this common goal or a major improvement in our liquidity of the huge milestone of adjusted EBITDA positive in Q4, roughly $3 million is really a major move for the Company.

非常感謝您，接線生。最後，我想說的是，轉變正在順利進行中。我們對公司為實現這一共同目標而灌輸的業績和紀律感到非常滿意，或者對第四季度調整後EBITDA 為正值的巨大里程碑的流動性的重大改善感到滿意，大約300 萬美元對公司來說確實是一個重大舉措。

As frankly, is being cash flow positive as we projected in Q1 of 2024 I mean, that's going to be the first time since 2020, that the Compnay would be cash flow positive, and that's a real testament to the collective turnaround effort here.

坦白說，正如我們在2024 年第一季預測的那樣，現金流為正，我的意思是，這將是自2020 年以來公司首次實現現金流為正，這真正證明了這裡集體扭虧為盈的努力。

So in addition in market mentioned this, I mean, the order of magnitude of understanding our Compnay in essentially two years, can I lower its positive breakeven from $900 million to less than $500 million is really, really quite incredible. And it really puts us in a great position to generate a significant amount of operating leverage as we go forward.

因此，除了市場提到的這一點之外，我的意思是，在兩年內了解我們公司的數量級，我能否將其正盈虧平衡點從9 億美元降低到不到5 億美元，這真的非常非常令人難以置信。這確實使我們處於有利地位，可以在我們前進的過程中產生大量的營運槓桿。

So at this point, our turnaround is working extremely well. We feel great about the efforts of the organization to help us achieve our goals and most importantly, to maximize shareholder value, which is why we're all here. So I want to thank everybody for attending the call today. And as always, if you have any additional questions, please feel free to reach out to ICR or to the Company directly. Everybody have a great day and thank you.

所以目前來看，我們的轉型進展非常順利。我們對組織為幫助我們實現目標所做的努力感到非常高興，最重要的是，最大化股東價值，這就是我們聚集在這裡的原因。所以我要感謝大家參加今天的電話會議。與往常一樣，如果您有任何其他問題，請隨時聯絡 ICR 或直接聯絡公司。大家都度過了美好的一天，謝謝你們。

That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。