WW International Inc (WW) 2023 Q1 法說會逐字稿

Good day, and welcome to the WW International Inc. First Quarter 2023 Earnings Conference Call.

美好的一天，歡迎來到 WW International Inc. 2023 年第一季度收益電話會議。

(Operator Instructions)

（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Corey Kinger of Investor Relations.

請注意正在記錄此事件。我現在想把會議轉交給投資者關係部的 Corey Kinger。

Please go ahead.

請繼續。

Thank you, everyone, for joining us today for WW International's First Quarter 2023 Conference Call. At about 4:05 p.m. Eastern Time today, we issued a press release reporting our first quarter 2023 results. The purpose of this call is to provide investors with some further details regarding the company's financial results as well as to provide a general update on the company's progress. The press release is available on the company's corporate website located at corporate.ww.com.

感謝大家今天加入我們參加 WW International 的 2023 年第一季度電話會議。大約下午 4:05今天東部時間，我們發布了一份新聞稿，報告了我們 2023 年第一季度的業績。此電話會議的目的是向投資者提供有關公司財務業績的更多詳細信息，並提供有關公司進展的一般更新。該新聞稿可在公司網站 corporate.ww.com 上獲取。

Supplemental investor materials are also available on the company's corporate website in the Investors section under Presentations and Events. Reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the press release.

補充投資者材料也可在公司網站上的“演示和活動”下的“投資者”部分找到。本次電話會議上披露的非 GAAP 指標與最直接可比的 GAAP 財務指標的對賬也作為新聞稿的一部分提供。

Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements.

在我們開始之前，讓我提醒大家，本次電話會議將包含前瞻性陳述。投資者應注意，任何前瞻性陳述都受到各種風險和不確定性的影響，這些風險和不確定性可能導致實際結果與今天在這裡討論的結果大不相同。公司向美國證券交易委員會提交的文件中詳細解釋了這些風險因素。請參閱這些文件以更詳細地討論前瞻性陳述以及此類陳述的風險和不確定性。

All forward-looking statements are made as of today, and except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Joining today's call are Sima Sistani, CEO; and Heather Stark, CFO.

所有前瞻性陳述均於今日作出，除法律要求外，公司不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。參加今天電話會議的有首席執行官 Sima Sistani；和首席財務官希瑟·斯塔克 (Heather Stark)。

I will now turn the call over to Sima.

我現在將把電話轉給司馬。

Thanks, Corey. Good afternoon, everyone. Thank you for joining us today. 2023 is shaping up to be a pivotal and transformative year for WeightWatchers, one where our key initiatives and decisive actions will shape the future of our product experience, operating model, our financial trajectory and most importantly, the member lives with positively impact.

謝謝，科里。大家下午好。感謝您今天加入我們。 2023 年對 WeightWatchers 來說將是關鍵和變革的一年，我們的關鍵舉措和果斷行動將塑造我們產品體驗、運營模式、財務軌蹟的未來，最重要的是，會員的生活將產生積極影響。

As we enter our 60th anniversary and plan for upcoming celebrations with our members, I have been reflecting upon the incredible history of the company and looking back at photos of our founder, Jean Nidetch, and crowds of members at parade, Madison Square Garden and Workshop.

在我們進入 60 週年紀念日併計劃與我們的成員一起慶祝即將到來的慶祝活動時，我一直在回顧公司令人難以置信的歷史，並回顧我們的創始人 Jean Nidetch 和成群結隊的成員在遊行、麥迪遜廣場花園和車間的照片.

We later started a movement 60 years ago, and that excitement stemmed from a strong sense of community has been the foundation of our longevity. The in-person human connection found in our workshops is what WeightWatchers has been known for. Then the evolution to digital expanded our subscriber base and sustained the company through the pandemic. 80% of our members now access WeightWatchers via a mobile-first experience. But our digital experience can be so much more. It can bring people together in new ways, expand our reach and provide members with immediate support and inspiration and it can enhance the in-person experience, better enabling connectivity between members and members and coaches.

後來我們在 60 年前發起了一場運動，這種源於強烈社區意識的興奮一直是我們長壽的基礎。在我們的工作坊中發現的面對面的人際關係是 WeightWatchers 眾所周知的。然後，向數字化的發展擴大了我們的用戶群，並在大流行中維持了公司。我們 80% 的會員現在通過移動優先體驗訪問 WeightWatchers。但我們的數字體驗可以遠不止於此。它可以以新的方式將人們聚集在一起，擴大我們的影響範圍並為會員提供即時支持和靈感，它可以增強面對面的體驗，更好地實現會員與會員和教練之間的聯繫。

The WeightWatchers that our members know and love is our gold standard with a program that works millions of members, 60 years of experience and ranking as U.S. news and world reports #1 Best Diet for weight loss the last 13 years in a row. We have earned trust in a space where new entrants come and go. We are turning that solid foundation into best-in-class experiences for the future, including building new sign-back pathways, such as clinical.

我們的會員了解和喜愛的 WeightWatchers 是我們的黃金標準，該計劃為數百萬會員提供服務，擁有 60 年的經驗，並在過去 13 年連續被美國新聞和世界報導評為減肥最佳飲食第一名。我們在新進入者進進出出的領域贏得了信任。我們正在將這一堅實的基礎轉化為未來一流的體驗，包括建立新的標誌反饋途徑，例如臨床。

Turning to our first quarter results. We ended the quarter with just over 4 million subscribers, slightly above our March guidance of approaching 4 million as sign-ups exceeded our forecast. This represents net additions of nearly 500,000 subscribers, up from the 3.5 million subs we had at the year-end. This is a quarter-over-quarter step-up of 100,000 more net additions than in the year ago first quarter.

轉向我們的第一季度業績。我們在本季度結束時擁有超過 400 萬訂戶，略高於我們 3 月份接近 400 萬的指導，因為註冊量超出了我們的預期。這表示淨增加了近 500,000 名訂閱者，高於我們年底時的 350 萬訂閱者。與去年第一季度相比，這比上一季度淨增加了 100,000 人。

Importantly, this was accomplished with $19 million less marketing spend. To reiterate, we achieved more net addition with 18% less marketing spend versus the prior year first quarter. This demonstrates that our new approach to marketing and our improved program are working and driving efficient acquisition. This outperformance in subscriber growth resulted in revenues coming in higher than forecast and combined with greater cost discipline flowed into adjusted operating income results beating our guidance.

重要的是，這是通過減少 1900 萬美元的營銷支出來實現的。重申一下，與去年第一季度相比，我們實現了更多的淨增加，營銷支出減少了 18%。這表明我們的新營銷方法和改進的計劃正在發揮作用並推動高效的收購。訂戶增長方面的出色表現導致收入高於預期，再加上更嚴格的成本控制，調整後的營業收入結果超出了我們的預期。

We are better utilizing data throughout our business from digital engagement and activation to product experience, from LTV/CAC to financial forecasting. This data informed culture is improving the way we operate, making the company more agile and results more predictable. Our activation rate, defined by a member's engagement and progress during their first month on the program has been trending up between 4% to 8% year-over-year so far in 2023.

我們在整個業務中更好地利用數據，從數字參與和激活到產品體驗，從 LTV/CAC 到財務預測。這種以數據為依據的文化正在改善我們的運營方式，使公司更加敏捷，結果更加可預測。到 2023 年為止，我們的激活率（由會員在參與該計劃的第一個月的參與度和進度定義）同比增長 4% 至 8%。

As a reminder, activation rate matters because activated members churn at a rate that is roughly half of a nonactivated member and are more successful on WeightWatchers over the long term. So driving this metric upward is a key focus across our entire organization. The sustainability of holding this year-over-year improvement in activation rate demonstrates that the changes we have made to the product and our programs are working.

提醒一下，激活率很重要，因為激活的會員流失率大約是未激活會員的一半，並且從長遠來看在 WeightWatchers 上更成功。因此，推動這一指標上升是我們整個組織的重點。保持激活率同比提高的可持續性表明我們對產品和計劃所做的更改正在發揮作用。

In addition to our activation rate, which is measured only in a member's first month, our engagement rate, which is measured across our entire membership base has turned positive and has been trending up between 6% to 7% year-over-year. Further indication that our product updates are working for our members.

除了僅在會員第一個月衡量的激活率外，我們在整個會員基礎上衡量的參與率也已轉為正數，並且一直呈同比上升 6% 至 7% 的趨勢。進一步表明我們的產品更新對我們的會員有效。

As discussed, our current digital product road map is focused on creating community and enabling food decisions as measured by a member's first month activation and resultingly subscriber retention and member success. One of the key features, Member Chat, has recently launched in beta, and we look forward to learning, iterating and expanding its rollout in the months ahead. We believe Chat will be foundational for enriching our digital community, allowing members to create relationships they are excited about, members with each other, coaches of members, workshop groups, even people in your existing network if you wish to bring them along your journey.

正如所討論的那樣，我們當前的數字產品路線圖側重於創建社區並通過會員第一個月的激活以及由此產生的訂戶保留率和會員成功來衡量食品決策。其中一項關鍵功能“會員聊天”最近推出了測試版，我們期待在未來幾個月內學習、迭代和擴展它的推出。我們相信 Chat 將成為豐富我們的數字社區的基礎，允許成員建立他們感興趣的關係、成員之間、成員的教練、研討會小組，甚至是您現有網絡中的人，如果您希望將他們帶入您的旅程。

Also coming in 2023 will be new, streamlined spaces in our app, including -- and What to Eat tab, which will help support members' eating decisions and a space dedicated to progress and trends, allowing members to better see the connection between core behaviors like food, activity and weight-tracking as it relates to their weight management progress. And to improve our coach experience, we plan to launch a new platform for our coaches that will help them better engage with members in real life as well as digitally.

我們的應用程序中還將在 2023 年推出新的簡化空間，包括 -- 和吃什麼選項卡，這將有助於支持會員的飲食決定，以及一個致力於進步和趨勢的空間，讓會員更好地了解核心行為之間的聯繫喜歡食物、活動和體重追踪，因為這與他們的體重管理進度有關。為了改善我們的教練體驗，我們計劃為我們的教練推出一個新平台，幫助他們更好地與會員在現實生活和數字環境中互動。

The longevity of WeightWatchers brand has sustained because of ongoing innovation to maintain our position as the global leader in sustainable, science-backed weight management. As the world evolves around a new understanding of living with overweight and obesity, we will sustain our leadership by leaning into our heritage while also evolving alongside new interventions with our eye on the north star of connecting people meaningfully through the shared experience of a weight management journey.

WeightWatchers 品牌的長盛不衰得益於不斷的創新，以保持我們作為可持續、科學支持的體重管理領域全球領導者的地位。隨著世界圍繞著對超重和肥胖生活的新認識而發展，我們將通過繼承我們的傳統來保持我們的領導地位，同時與新的干預措施一起發展，我們著眼於通過體重管理的共享經驗將人們有意義地聯繫起來的北極星旅行。

With that in mind, we are coining a new term, weight health. Similar to how heart health or mental health reframed the conversation around their chronic conditions reduce stigma and improved accessibility and standards of care, we believe weight health should be the future of our space. We are focused on leading this change, destigmatizing and demystifying obesity and weight management and making evidence-based solutions more achievable and accessible to those in need.

考慮到這一點，我們正在創造一個新術語，體重健康。類似於心臟健康或心理健康如何重新構建圍繞他們的慢性病的對話，減少恥辱感並提高可及性和護理標準，我們相信體重健康應該是我們空間的未來。我們專注於引領這一變革，消除對肥胖和體重管理的污名化和神秘化，並使有需要的人更容易獲得基於證據的解決方案。

Weight health is the degree to which an individual's weight affects their metabolic health and wellbeing. Weight health is impacted by genetic, biological, hormonal, environmental and behavioral factors unique to each individual. Weight-healthy living aims to prevent and better manage the chronic diseases that result from excess body fat, including type 2 diabetes, high cholesterol and cardiovascular disease with the ultimate goal of improving health, well-being and quality of life.

體重健康是指一個人的體重對其代謝健康和幸福感的影響程度。體重健康受到每個人獨特的遺傳、生物、荷爾蒙、環境和行為因素的影響。體重健康的生活方式旨在預防和更好地管理由體內脂肪過多引起的慢性疾病，包括 2 型糖尿病、高膽固醇和心血管疾病，最終目標是改善健康、福祉和生活質量。

WeightWatchers will be synonymous with delivering weight health through our pillars of coaching, accountability and community through evidence-based intervention, which brings me to our acquisition of Weekend Health doing business as Sequence. This announcement captured significant attention and generated a lot of excitement and excitement that we share about the opportunity ahead to impact many more lives with improved health outcomes. Sequence is a subscription digital health platform offering clinical access to prescription chronic weight management medication, jump-starting our entry into the clinical space.

WeightWatchers 將成為通過我們的教練、問責制和社區支柱通過基於證據的干預來提供體重健康的代名詞，這讓我想到我們收購 Weekend Health 作為 Sequence 開展業務。這一公告引起了極大的關注，並引起了很多興奮和興奮，我們分享了未來的機會，可以通過改善健康結果來影響更多的生活。 Sequence 是一個訂閱數字健康平台，提供臨床處方慢性體重管理藥物的訪問，開啟我們進入臨床領域的大門。

Sequence's technology platform integrates patient and clinician experience, providing eligible members with ongoing access to online clinical care and medication for weight management. We strongly believe the multiyear growth opportunity for Sequence is significant. But importantly, this year, we are carefully balancing the continued strong growth momentum of this business, while taking a thoughtful approach to integration and scaling to ensure we continue to deliver a high-quality differentiated member experience that exceeds expectations with high satisfaction driving both stickiness and efficient acquisition.

Sequence 的技術平台整合了患者和臨床醫生的經驗，為符合條件的會員提供持續訪問在線臨床護理和體重管理藥物的途徑。我們堅信 Sequence 的多年增長機會是巨大的。但重要的是，今年，我們正在謹慎平衡這項業務持續強勁的增長勢頭，同時採取深思熟慮的整合和擴展方法，以確保我們繼續提供超出預期的高質量差異化會員體驗，並以高滿意度推動粘性和高效的收購。

Conversation around GLP-1s and WeightWatchers entrance into the clinical market has been widespread, and we now have an opportunity to build upon our position in weight health. Encouragingly, our customer is viewing the news positively. In a survey we conducted last month, 60% of our core demographic sense acquisition made them think more positively about WeightWatchers. And 80% of those surveyed believe WeightWatchers is keeping up with the latest scientific research with this announcement. At the same time, we need to bring our current members along with the evolution. Our communication is critical. We are focused on educating that pursuing a clinical pathway is a personal choice and not something we are actively pushing them to do.

圍繞 GLP-1 和 WeightWatcher 進入臨床市場的討論非常廣泛，我們現在有機會鞏固我們在體重健康領域的地位。令人鼓舞的是，我們的客戶正在積極地看待新聞。在我們上個月進行的一項調查中，我們 60% 的核心人口統計感知使他們對 WeightWatchers 的看法更加積極。 80% 的受訪者認為 WeightWatchers 通過此公告緊跟最新的科學研究。同時，我們需要讓我們現有的成員與時俱進。我們的溝通至關重要。我們專注於教育，追求臨床路徑是個人選擇，而不是我們積極推動他們去做的事情。

The WeightWatchers they know and love will continue to be the gold standard of what we deliver. At the same time, in our survey, among those who are currently WeightWatchers members, 18% said they are interested in trying weight loss medication, trusting us to bring credibility to the space. So there is an opportunity to better serve these members with an integrated clinical solution. Their top 3 expectations for our clinical programs are access to GLP-1 medication, insurance coordination and a program design for people living on these medications.

他們了解和喜愛的 WeightWatchers 將繼續成為我們提供的產品的黃金標準。同時，在我們的調查中，在目前是 WeightWatchers 會員的人中，有 18% 的人表示他們有興趣嘗試使用減肥藥物，相信我們會為這個領域帶來可信度。因此，有機會通過集成的臨床解決方案更好地為這些成員服務。他們對我們臨床項目的三大期望是獲得 GLP-1 藥物、保險協調和為依賴這些藥物生活的人設計的項目。

We are focused on delivering a differentiated experience across these needs and more. To expand on each. First, access to GLP-1 medication. What we deliver through Sequence is a connection with a clinician who is experienced in prescribing chronic weight management medication. In consultation with the patient, the clinician can determine if a GLP-1 or another medication is appropriate. And if the medication is prescribed, Sequence has a seamless, easy process for prescription fulfillment and for managing dosing over time.

我們專注於提供滿足這些需求以及更多需求的差異化體驗。展開每一個。首先，獲得GLP-1藥物。我們通過 Sequence 提供的是與一位在長期體重管理藥物處方方面經驗豐富的臨床醫生的聯繫。與患者協商後，臨床醫生可以確定 GLP-1 或其他藥物是否合適。如果開具處方藥，Sequence 有一個無縫、簡單的流程來執行處方和管理隨時間的劑量。

Second, insurance coordination, a prevailing concern about GLP-1 is that they are not widely covered by medical insurance and therefore, are prohibitively expensive for most people. While not covered on all health plans, they are increasingly covered at some level for those who medically qualify and who have previously and are actively participating in a behavior change program. The insurance pre-authorization process is known to be highly manual, slow, error-prone and a frequent pain point for patients and medical professionals. Sequence has put an insurance process on tech rails to streamline much of this process, adding accuracy, thoroughness and speed of insurance approvals.

其次，保險協調，對 GLP-1 的一個普遍關注是它們沒有被廣泛的醫療保險覆蓋，因此對大多數人來說過於昂貴。雖然並未涵蓋在所有健康計劃中，但在某種程度上，它們越來越多地涵蓋在醫學上符合資格並且以前和正在積極參與行為改變計劃的人。眾所周知，保險預授權過程是高度手動、緩慢、容易出錯的，並且是患者和醫療專業人員經常遇到的痛點。 Sequence 已將保險流程置於技術軌道上，以簡化此流程的大部分，提高保險審批的準確性、徹底性和速度。

And third, a lifestyle program encompassing nutrition, fitness and coaching, specifically designed for people living on these medications. As we integrate and build out this vertical, we will be learning and creating a behavior change program for this distinct member journey. I believe this will be another key differentiator, particularly for our lapsed member base who know and trust WeightWatchers but who are also looking for a clinical solution. A behavioral program paired with a clinical intervention is critical and FDA recommended to help people on medications develop and maintain healthy habits. From prioritizing nutrients and food and managing against muscle loss, there are several key areas where WeightWatchers can provide guidance and support to ensure members weight loss journeys are done in a healthy, sustainable way.

第三，包括營養、健身和指導在內的生活方式計劃，專為靠這些藥物生活的人設計。在我們整合和構建這個垂直領域時，我們將為這個獨特的會員旅程學習和創建行為改變計劃。我相信這將是另一個關鍵的差異化因素，特別是對於我們了解並信任 WeightWatchers 但也在尋找臨床解決方案的流失會員群而言。與臨床干預相結合的行為計劃至關重要，FDA 建議幫助服用藥物的人養成和保持健康的習慣。從確定營養素和食物的優先順序到管理肌肉流失，WeightWatchers 可以在幾個關鍵領域提供指導和支持，以確保會員以健康、可持續的方式完成減肥之旅。

Finally, we believe a well-designed community experience will add value to those taking these medications. While community isn't the top driver for members to sign up for a clinical solution, we know from interviews of people using weight management medications that they would appreciate a community of people to learn from and compare notes. Similar to what we see in our principal program, people come for weight loss, but they stay for community and we look forward to creating a robust community experience for all our members. We will be pairing WeightWatchers, nutrition and behavioral science expertise and community with the Sequence platform to create a comprehensive solution, more to come on our plans as they develop in the quarters ahead.

最後，我們相信精心設計的社區體驗將為服用這些藥物的人增加價值。雖然社區並不是會員註冊臨床解決方案的主要驅動力，但我們從對使用體重管理藥物的人的採訪中了解到，他們希望有一個社區可以向人們學習和比較意見。與我們在主要計劃中看到的類似，人們來減肥，但他們留下來是為了社區，我們期待為我們所有的成員創造一個強大的社區體驗。我們將把 WeightWatchers、營養和行為科學專業知識以及社區與 Sequence 平台結合起來，以創建一個全面的解決方案，隨著未來幾個季度的發展，我們的計劃將有更多。

I am encouraged by our early results in 2023, which only further increases my confidence that the initiatives we have underway are working. We continue to be focused on improving our sign-up trends and for the second half of the year, returning to year-over-year sign of growth, improving member activation, which would drive gains and retention, exercising strong cost discipline throughout the organization, and executing on a narrow list of objectives, including our entrance into clinical interventions for weight management.

我對我們在 2023 年取得的早期成果感到鼓舞，這只會進一步增強我對我們正在進行的舉措正在發揮作用的信心。我們將繼續專注於改善我們的註冊趨勢，並在今年下半年恢復同比增長跡象，提高會員活躍度，這將推動收益和保留，在整個組織中實施嚴格的成本紀律，並執行一個狹窄的目標清單，包括我們進入體重管理的臨床干預。

Before our financial update, I'm pleased to announce that Heather Stark has been appointed Chief Financial Officer of WeightWatchers. Since taking on the interim role in December, Heather has been an incredible partner to me and the entire leadership team. Her experience, including 12 years at WeightWatchers and operational finance, forecasting, managing teams and navigating change have been a tremendous asset to this organization. I look forward to continuing to work with her in her elevated position.

在我們的財務更新之前，我很高興地宣布 Heather Stark 已被任命為 WeightWatchers 的首席財務官。自從 12 月擔任臨時職務以來，Heather 一直是我和整個領導團隊不可或缺的合作夥伴。她的經驗，包括在 WeightWatchers 和運營財務、預測、管理團隊和駕馭變革方面的 12 年經驗，對這個組織來說是一筆巨大的財富。我期待著在她更高的職位上繼續與她一起工作。

I will now turn the call over to Heather and will then come back to further discuss our strategic priorities for 2023.

我現在將把電話轉給希瑟，然後再回來進一步討論我們 2023 年的戰略重點。

Thanks, Sima. I'm honored to be taking on the Chief Financial Officer role at WeightWatchers. It's rare to work at a company that positively impacts the lives of millions in such a personal and important way. I look forward to continuing to work with Sima and the rest of our leadership team and being part of the next stage of this company's transformation.

謝謝，司馬。我很榮幸擔任 WeightWatchers 的首席財務官一職。在一家以如此個人和重要的方式對數百萬人的生活產生積極影響的公司工作是很少見的。我期待著繼續與 Sima 和我們領導團隊的其他成員一起工作，並成為公司下一階段轉型的一部分。

Turning to our first quarter results. We ended Q1 with 4 million subscribers with both sign-ups and cancels slightly outperforming our forecast in the quarter. As Sima mentioned, this is a quarter-over-quarter increase of nearly 500,000 subscribers, which is a step-up of approximately 100,000 more than the step-up of nearly 400,000 in the year ago first quarter.

轉向我們的第一季度業績。我們在第一季度結束時有 400 萬訂戶註冊和取消，略高於我們在本季度的預期。正如司馬所提到的，這是近 50 萬訂戶的環比增長，比去年第一季度近 40 萬的增幅增加了約 10 萬。

Revenue totaled $242 million, which is slightly above our forecast, but down 19% year-over-year or 17% on a constant currency basis versus the prior year period, primarily due to the lower subscriber levels entering the year as well as the planned scale-down of our Consumer Products business.

收入總計 2.42 億美元，略高於我們的預測，但同比下降 19%，按固定匯率計算，與上年同期相比下降 17%，這主要是由於進入本年度的訂戶水平較低以及計劃中的縮減我們的消費品業務。

Adjusted gross margin of 57.1% for the quarter was down 335 basis points from the prior year with overdrive on cost savings, resulting in a beat versus our guidance. The year-over-year decline was primarily due to a revenue mix shift from our higher-margin digital business, deleverage as well as the accounting for subscription and consumer product promotional bundles in the quarter. Marketing expenses of $88 million were down 18% year-over-year, reflecting lower spend on TV advertising and lower nonworking spends as we optimize our performance-marketing approach and drive member acquisition with strong LTV to CAC, subscription lifetime value to customer acquisition cost efficiency.

本季度調整後的毛利率為 57.1%，較上年同期下降 335 個基點，原因是成本節約過快推進，超出了我們的預期。同比下降主要是由於我們利潤率較高的數字業務的收入組合轉變、去槓桿化以及本季度訂閱和消費產品促銷捆綁包的會計處理。營銷費用為 8800 萬美元，同比下降 18%，這反映了電視廣告支出和非工作支出的減少，因為我們優化了績效營銷方法，並通過強大的 LTV 到 CAC、訂閱生命週期價值到客戶獲取成本來推動會員獲取效率。

Adjusted G&A of $56 million was down 12% versus the prior year, reflecting savings from our restructuring actions and overall expense discipline, partially offset by $3 million in costs related to the Sequence acquisition. We had an adjusted operating loss of $6 million in the first quarter, beating our expectations. Restructuring charges totaled $23 million in the quarter.

調整後的 G&A 為 5600 萬美元，比上一年下降 12%，反映了我們的重組行動和整體支出紀律帶來的節省，部分被與 Sequence 收購相關的 300 萬美元成本所抵消。我們在第一季度調整後的運營虧損為 600 萬美元，超出了我們的預期。本季度的重組費用總計 2300 萬美元。

As previously announced, in 2023, we are further streamlining and centralizing our organizational structure, rationalizing certain nonstrategic business lines and continuing the rebalancing of our real estate portfolio. Income tax expense in Q1 2023 were $68 million, which reflected the impact of an unusually high negative annual effective tax rate driven by a valuation allowance and small pretax loss reflected in the company's full year fiscal 2023 guidance. GAAP net loss per share was $1.68, which incorporates the negative impact of $1.54 of items impacting comparability, including net restructuring charges and the valuation allowance.

正如之前宣布的那樣，我們將在 2023 年進一步精簡和集中我們的組織結構，合理化某些非戰略性業務線，並繼續重新平衡我們的房地產投資組合。 2023 年第一季度的所得稅費用為 6800 萬美元，這反映了公司 2023 財年全年指引中反映的估值津貼和小額稅前虧損導致的異常高負年度有效稅率的影響。 GAAP 每股淨虧損為 1.68 美元，其中包含 1.54 美元影響可比性的項目的負面影響，包括淨重組費用和估值準備金。

Turning to Sequence. As we discussed at the time of our announcement in early March, since Sequence's launch in late 2021, the company has quickly grown to serve thousands of members across the U.S. by effectively scaling its technology platform through word of mouth. We closed the acquisition on April 10, so it will be reflected in our results starting next quarter's earnings report.

轉向序列。正如我們在 3 月初發佈公告時所討論的那樣，自 Sequence 於 2021 年底推出以來，該公司通過口耳相傳有效擴展其技術平台，迅速發展壯大，為全美數千名會員提供服務。我們於 4 月 10 日完成了收購，因此它將反映在我們從下一季度的收益報告開始的結果中。

At closing, Sequence had approximately 27,000 members. At this time, new members to Sequence initially pay a $49 consultation fee and should they qualify and accept treatment, subscribe for $99 per month thereafter. Only after they begin the $99 monthly plan are they counted as a subscriber. Gross margins per Sequence are north of 40%, so a bit better than those in our workshops business. And on an annualized operating income basis, the business is modestly profitable at current revenue levels, but has significant upside opportunity upon achieving greater scale. After transaction expenses are behind us, the acquisition is expected to be accretive to WW's earnings per share by the fourth quarter.

結束時，Sequence 擁有大約 27,000 名成員。目前，Sequence 的新會員最初需要支付 49 美元的諮詢費，如果他們符合條件並接受治療，則之後每月訂閱 99 美元。只有在他們開始每月 99 美元的計劃後，他們才算作訂戶。每個序列的毛利率都在 40% 以上，比我們的車間業務好一點。在年化營業收入的基礎上，該業務在當前收入水平上盈利不多，但在實現更大規模後具有顯著的上行機會。在扣除交易費用後，預計到第四季度，此次收購將增加 WW 的每股收益。

While Sequence is expected to continue its growth trajectory in 2023, it will take time to integrate and truly scale up this offering. That said, we strongly believe the multiyear growth opportunity is significant. We expect performance trends in our principal WeightWatchers business to improve through the year as we benefit from our data-informed approach to member acquisition, increased operating efficiency from our streamlined operations and as we deliver on an enhanced member experience following upcoming launches to our product road map.

雖然 Sequence 預計將在 2023 年繼續其增長軌跡，但整合併真正擴大該產品的規模還需要時間。也就是說，我們堅信多年的增長機會是巨大的。我們預計我們的主要 WeightWatchers 業務的業績趨勢將在今年有所改善，因為我們受益於我們的會員獲取數據知情方法，我們精簡的運營提高了運營效率，並且我們在即將推出的產品道路上提供了增強的會員體驗地圖。

In addition, the Sequence acquisition will be reflected in our results starting in Q2. We plan to redeploy our Q1 year-over-year marketing savings primarily into Q3, where we can better maximize LTV-to-CAC efficiency essentially driving more sign-ups for dollar spend. We are confident that shifting the timing of this investment will help drive sign-ups year-over-year in Q3. For the full year, we expect to end the year with WeightWatchers subscribers, excluding Sequence subscribers, roughly flat to year-end 2022, including Sequence for clinical subscribers, total subscribers are expected to approach 3.6 million.

此外，序列收購將反映在我們從第二季度開始的結果中。我們計劃將我們第一季度的同比營銷節省主要重新部署到第三季度，在那裡我們可以更好地最大限度地提高 LTV 到 CAC 的效率，從根本上推動更多的美元支出註冊。我們相信，改變這項投資的時間將有助於推動第三季度的同比註冊量。對於全年，我們預計 WeightWatchers 訂閱者（不包括 Sequence 訂閱者）到 2022 年底大致持平，包括臨床訂閱者 Sequence，訂閱者總數預計將接近 360 萬。

The last time we ended the year with flat or higher subscribers year-over-year was 2020. So this will be a notable achievement and a testament to the work our teams are delivering in our product experience and acquisition channels. As a reminder, Q1 is traditionally our annual peak and end-of-period subscribers, sloping to a Q4 trough, with an average decline of 14% over the past 5 years. Our outlook of ending the year with 3.6 million subscribers, represents a Q1-to-Q4 decline of only 10%, significantly improved from a decline of 22% in 2022.

我們上一次年終時訂戶同比持平或更高是在 2020 年。因此，這將是一項了不起的成就，也證明了我們的團隊在我們的產品體驗和獲取渠道方面所做的工作。提醒一下，第一季度傳統上是我們的年度高峰和期末訂戶，向第四季度的低谷傾斜，過去 5 年平均下降 14%。我們預計今年年底將有 360 萬訂戶，這意味著第一季度至第四季度僅下降 10%，與 2022 年 22% 的下降相比有了顯著改善。

Full year revenue is expected to be in the range of $910 million to $930 million, reflecting reducing year-over-year declines in subscription revenue as we move through the year. Approximately 40% of our subscribers are currently in the long-term treatment period of their membership, which ranges anywhere from 1 to 12 months, depending on their joining offer. These offers reduced the average rate per paid week but lock-in subscribers for a longer duration, resulting in higher LTV.

預計全年收入將在 9.1 億美元至 9.3 億美元之間，這反映出隨著我們在這一年的推進，訂閱收入同比下降的情況有所減少。我們大約 40% 的訂戶目前處於其會員資格的長期治療期，根據他們的加入優惠，治療期從 1 到 12 個月不等。這些優惠降低了每週付費周的平均費率，但鎖定訂閱者的時間更長，從而導致更高的 LTV。

In Q1, approximately 80% of global sign-ups chose a 6-month or longer plan, up from about 70% a year ago, and most notably, 41% of total sign-ups are for a 9-month or longer plan, up from only 12% a year ago. We now expect Consumer Products and Other to contribute approximately $65 million in revenues during 2023, which is lower than our previous estimates as we simplify our business and focus our Consumer Products offerings on our best-selling SKUs.

在第一季度，大約 80% 的全球註冊用戶選擇了 6 個月或更長時間的計劃，高於一年前的約 70%，最值得注意的是，41% 的註冊用戶選擇了 9 個月或更長時間的計劃，高於一年前的 12%。我們現在預計消費品和其他產品在 2023 年將貢獻約 6500 萬美元的收入，這低於我們之前的估計，因為我們簡化了業務並將我們的消費品產品集中在我們最暢銷的 SKU 上。

Revenues from Sequence are currently expected to contribute $45 million from Q2 to Q4 in aggregate. Adjusted gross margin is expected to be in the range of 61% to 62% for the full year as we continue to reduce our fixed cost base. Our workshop restructuring is expected to reduce our cost structure by approximately $40 million on an annualized basis, with approximately $25 million of in-year savings, excluding reinvestments in the organization. We expect full year marketing spend to be flat with 2022 at approximately $245 million.

Sequence 的收入目前預計從第二季度到第四季度總共貢獻 4500 萬美元。隨著我們繼續降低固定成本基礎，預計全年調整後的毛利率將在 61% 至 62% 之間。我們的車間重組預計將使我們的成本結構每年減少約 4000 萬美元，年內節省約 2500 萬美元，不包括對組織的再投資。我們預計全年營銷支出將與 2022 年持平，約為 2.45 億美元。

G&A expense is also expected to be approximately $245 million for the year. This includes approximately $15 million in Sequence G&A plus $6 million in transaction costs, including the $3 million we recorded in Q1. Therefore, we expect adjusted operating income in the range of $80 million to $85 million for the full year 2023. We estimate that the remaining charges related to the 2023 restructuring plan will be up to $10 million. For the full year, excluding the impact of restructuring, we expect income tax expense to be approximately $15 million to $20 million, largely driven by the full year impact of valuation allowance discussed earlier.

預計今年的 G&A 費用也將約為 2.45 億美元。這包括大約 1500 萬美元的 Sequence G&A 加上 600 萬美元的交易成本，包括我們在第一季度記錄的 300 萬美元。因此，我們預計 2023 年全年調整後的營業收入在 8000 萬至 8500 萬美元之間。我們估計與 2023 年重組計劃相關的剩餘費用將高達 1000 萬美元。對於全年，不包括重組的影響，我們預計所得稅費用約為 1500 萬至 2000 萬美元，這主要是受到前面討論的估值準備金的全年影響的推動。

Given the seasonal nature of our principal business, our Q1 income tax expense is expected to largely reverse in the remaining quarters of fiscal 2023 when we expect to earn pretax income. So excluding the impact of the valuation allowance and restructuring, we would expect an income tax benefit of up to $5 million for the full year. Given the small pretax loss reflected in the company's full year fiscal 2023 guidance, any updates to the expected pretax loss or income tax expense can result in significant impacts in quarterly income tax results.

鑑於我們主營業務的季節性，我們第一季度的所得稅費用預計將在 2023 財年剩餘季度大幅逆轉，屆時我們預計將獲得稅前收入。因此，排除估值津貼和重組的影響，我們預計全年的所得稅收益高達 500 萬美元。鑑於公司 2023 財年全年指引中反映的稅前虧損較小，對預期稅前虧損或所得稅費用的任何更新都可能對季度所得稅結果產生重大影響。

Turning to our capital structure and cash flows. We ended Q1 with approximately $141 million of cash plus an undrawn revolver with our cash position plus our revolving credit facility, we have more than sufficient liquidity for our working capital needs, including in-year cash outlays related to our restructuring actions, servicing our debt and approximately $40 million in cash for the purchase of Sequence in Q2, and reflecting our assumption that cash from operations will be a modest use of cash for the year. At quarter end, our net debt to adjusted EBITDA leverage ratio was 6.7x, up from 6x at the end of 2022.

轉向我們的資本結構和現金流。我們在第一季度結束時擁有大約 1.41 億美元的現金，加上我們的現金頭寸加上我們的循環信貸額度的未提取循環，我們有足夠的流動資金來滿足我們的營運資金需求，包括與我們的重組行動相關的年內現金支出，償還我們的債務第二季度用於購買 Sequence 的現金約為 4000 萬美元，這反映了我們假設來自運營的現金將是今年適度使用現金的假設。在季度末，我們的淨債務與調整後 EBITDA 槓桿比率為 6.7 倍，高於 2022 年底的 6 倍。

We expect our trailing 12-month leverage ratio to further increase in 2023 due to lower EBITDA levels through most of the year. At this time, full year interest expense is expected to be approximately $95 million. Note that we have a $500 million hedge through Q1 2024 to protect against rising interest rates on our variable rate term loan of $945 million and our $500 million notes are fixed rate. Therefore, only 31% of our total debt is floating, and we are currently exploring options for forward starting swaps.

由於今年大部分時間的 EBITDA 水平較低，我們預計我們過去 12 個月的槓桿率將在 2023 年進一步增加。目前，全年利息支出預計約為 9500 萬美元。請注意，到 2024 年第一季度，我們有 5 億美元的對沖，以防止我們的 9.45 億美元可變利率定期貸款和 5 億美元固定利率票據的利率上升。因此，我們總債務中只有 31% 是浮動的，我們目前正在探索遠期啟動掉期的選擇。

CapEx, which is primarily due to capitalized software as well as depreciation and amortization are both expected to be in the $45 million range for the full year 2023. In summary, we are stabilizing the business, improving our execution and looking forward to upcoming key milestones on our product road map and our entry into clinical. With our lower cost base, and increased agility in our organization, we have greater flexibility in our operating model, positioning us well to improve our profitability profile following a return to growth.

資本支出主要是由於資本化軟件以及折舊和攤銷預計在 2023 年全年都將在 4500 萬美元的範圍內。總而言之，我們正在穩定業務，提高執行力並期待即將到來的關鍵里程碑在我們的產品路線圖和我們進入臨床階段。憑藉我們較低的成本基礎和更高的組織靈活性，我們的運營模式具有更大的靈活性，使我們能夠在恢復增長後改善我們的盈利狀況。

I'll now turn the call back to Sima.

我現在將電話轉回 Sima。

Thanks, Heather. We have significant opportunities for expanding our reach and returning WeightWatchers to growth. To achieve that, we are focused on a narrow list of priorities in order to best execute on the initiatives that will deliver the greatest impact. Across the organization, we are focused on 4 key areas: one, reinvigorating our principal business and hitting our end-of-period subscriber targets for the year, which will be achieved through our more efficient acquisition funnel and increased member engagement for both digital and workshop members alike; two, compounding our head start in the clinical space by continuing to drive efficient member acquisition to Sequence, increasing brand awareness and expanding member retention; three, leveraging our expertise and enhancing our capabilities to be the partner of choice for self-insured employers and health system payers in delivering end-to-end behavioral and clinical weight management solutions, setting a new standard of care in this space; and four, building community experiences, both in real life and in digital that will broaden our reach, increase engagement and satisfaction for both behavioral and clinical pathways.

謝謝，希瑟。我們有重要的機會來擴大我們的影響力並使 WeightWatchers 恢復增長。為實現這一目標，我們專注於一小部分優先事項，以便最好地執行將產生最大影響的舉措。在整個組織中，我們專注於 4 個關鍵領域：第一，重振我們的主要業務並實現我們今年的期末訂戶目標，這將通過我們更高效的獲取渠道和增加數字和數字的會員參與度來實現。工作坊成員一致好評；第二，通過繼續推動 Sequence 的高效會員獲取、提高品牌知名度和擴大會員保留率，鞏固我們在臨床領域的領先地位；第三，利用我們的專業知識並增強我們的能力，成為自我保險雇主和衛生系統付款人的首選合作夥伴，提供端到端的行為和臨床體重管理解決方案，在該領域設定新的護理標準；第四，在現實生活和數字環境中建立社區體驗，這將擴大我們的影響範圍，提高行為和臨床途徑的參與度和滿意度。

In summary, our team's hard work, innovative thinking and strong execution is paying off and I am confident that we are turning the corner and getting WeightWatchers back on a growth trajectory with a leaner, more agile organization, we are improving our operating model to drive profitable growth.

總而言之，我們團隊的辛勤工作、創新思維和強大的執行力正在獲得回報，我相信我們正在扭轉局面，讓慧儷輕體以更精簡、更敏捷的組織重回增長軌道，我們正在改進我們的運營模式以推動盈利增長。

Thanks for joining us today, and we are now happy to take your questions.

感謝您今天加入我們，我們現在很樂意回答您的問題。

(Operator Instructions)

（操作員說明）

Our first question comes from Jason English from Goldman Sachs.

我們的第一個問題來自高盛的 Jason English。

And congrats on finding some stability on the core subscriber base. Good to see. On Sequence, your guidance implies you expect to have about 100,000 subs at year-end minus. A couple of questions. Last time you gave us an update, there were 4,000 on it. Where do we stand today, whether that be people who've already paid the $99 or just people who have come in and entered the program? What gives you confidence that you can build to that $100? And what's the cadence of activation? When should we start to see or expect to see you bring the marketing campaign and activate and start promoting those to try to get the on-ramp going?

並祝賀您在核心用戶群上找到了一些穩定性。很高興看到。在 Sequence 上，您的指導意味著您預計在年底減去大約 100,000 個訂閱者。幾個問題。上次您給我們更新時，上面有 4,000 個。我們今天的立場是什麼，無論是已經支付了 99 美元的人還是已經進入該計劃的人？是什麼讓您有信心可以積累到那 100 美元？激活的節奏是什麼？我們應該什麼時候開始看到或期望看到您開展營銷活動並激活並開始推廣這些活動以嘗試讓入口繼續前進？

Jason, and thanks for your question. This is Heather. Sequence, yes, ramping up through the year. So as we said in the comments, we closed the acquisition with 27,000 active subscribers. We are measuring subscribers at a different pace than a typical WeightWatcher subscriber where you are a sign-up and an active subscriber rate on day 1. So those 27,000 are people who have come in and qualified for treatment and accepted treatment and moved into the $99 a month -- monthly subscription plan.

傑森，謝謝你的問題。這是希瑟。序列，是的，在這一年中逐漸增加。因此，正如我們在評論中所說，我們以 27,000 名活躍用戶完成了收購。我們衡量訂閱者的速度與典型的 WeightWatcher 訂閱者不同，後者是您在第 1 天註冊並獲得活躍訂閱者率。因此，這 27,000 人是已經進來並有資格接受治療並進入 99 美元的人一個月——每月訂閱計劃。

So there's a bit of a lag there between when someone enters the sign-up flow and actually becomes a subscriber, which is a little different, as I said. So in terms of scaling, we're confident that the 2023 expectations that we have will land us in that range of growth. And we recognize that there's a good scalable space in this business and expect to hit the subscriber base that we're targeting.

因此，正如我所說，從進入註冊流程到真正成為訂閱者之間存在一些滯後，這有點不同。因此，就規模而言，我們有信心我們對 2023 年的預期將使我們進入該增長范圍。我們認識到這項業務有很好的可擴展空間，並希望能夠達到我們的目標用戶群。

And Jason, it's Sima. I just wanted to add to that regarding marketing activations. So as you know, Sequence has built up their subscription base primarily on word of mouth, and we're seeing that they are continuing to scale through that channel and then on top of that, we have the opportunity to tap into the WeightWatchers lapse membership base to really cross promote for those, obviously, where it's medically appropriate. And that being said, we did push our marketing budget to the second half of the year, and we're going to be driving that top of funnel across our businesses as a whole.

傑森，是西瑪。我只是想補充一下關於營銷活動的內容。如您所知，Sequence 主要依靠口口相傳建立了他們的訂閱基礎，我們看到他們正在繼續通過該渠道進行擴展，最重要的是，我們有機會利用 WeightWatchers 失效會員資格為那些真正交叉推廣的人打基礎，顯然，在醫學上合適的地方。話雖這麼說，我們確實將營銷預算推到了下半年，我們將推動整個業務的漏斗頂端。

There are one of the thesis here was that there would be CAC efficiencies, and we believe that will be true. And so we're going to be looking at where we have the most leverage, whether it's through clinical or our behavioral pathway.

這裡有一個論點是會有 CAC 效率，我們相信這是真的。因此，我們將研究我們最有影響力的地方，無論是通過臨床還是我們的行為途徑。

Okay. One more question, then I'll pass it on, all I realize I cheat it upfront with a 3-part question. So you had some interesting comments to make on insurance coverage. I was wondering if you have any sense of numbers you can put around that? Like what percentage of the population or even better, your current or lapsed users would be covered on this program, just carte blanche with no caveats? And then how does that percentage change when we ran in the caveat of it must be a company with some sort of behavioral modification program?

好的。還有一個問題，然後我會繼續，我意識到我用一個由 3 個部分組成的問題預先作弊。所以你對保險範圍有一些有趣的評論。我想知道你是否對數字有任何了解？就像人口的百分比或什至更好，您的當前或失效用戶將包含在該計劃中，只是全權委託，沒有任何警告？然後，當我們警告必須是一家具有某種行為修改計劃的公司時，該百分比如何變化？

So insurance coverage isn't something that we previously really pulled our members regarding but we know they typically have an above-average household income. So most do have health insurance through an employer. I think that's a fair assumption. And the benefit of Sequence here is that they put the insurance process on tech rail such that it makes navigating the pre-authorization process so much easier, which helps with access, obviously. And on top of that, I think we're just -- have enough an opportunity to be an indispensable partner to not only members who need help navigating the insurance process but also employers who are looking to figure out how to provide these critical medications to the population. And we're hearing from our B2B population that they're interested in step therapy plans. And so that's an engagement model that we're designing and navigating through. And I think more to come on that.

因此，保險範圍並不是我們以前真正吸引會員考慮的東西，但我們知道他們的家庭收入通常高於平均水平。所以大多數人確實通過雇主獲得了健康保險。我認為這是一個合理的假設。 Sequence 的好處在於，他們將保險流程置於技術軌道上，這樣就可以更輕鬆地導航預授權流程，這顯然有助於訪問。最重要的是，我認為我們只是 - 有足夠的機會成為不可或缺的合作夥伴，不僅是在保險流程中需要幫助的成員，也是希望弄清楚如何向他們提供這些關鍵藥物的雇主。人口。我們從 B2B 人群那裡聽說他們對階梯療法計劃很感興趣。這就是我們正在設計和瀏覽的參與模型。我想更多的是關於這一點。

The next question comes from Linda Bolton-Weiser from D.A. Davidson.

下一個問題來自 D.A. 的 Linda Bolton-Weiser。戴維森。

So based on your comments, it sounds like you're going to start this cross-promotional opportunity by tapping into your former members in the second half of the year. Is there any way to quantify how much of the marketing budget would be put towards that versus the WeightWatchers advertising, because at this point, they're not integrated, right? So it's still 2 separate endeavors. So is there any way to quantify the spending you would put towards the Sequence side?

因此，根據您的評論，聽起來您將在下半年通過利用您的前會員來開始這個交叉促銷機會。有什麼方法可以量化與 WeightWatchers 廣告相比，投入多少營銷預算，因為在這一點上，它們還沒有整合，對吧？所以它仍然是兩個獨立的嘗試。那麼有什麼方法可以量化您將投入到序列方面的支出嗎？

The CAC efficiencies are what we're going to be keeping an eye on. So the opportunity here is going to really be driven by the product and where we have leverage. So where we're seeing efficient LTV/CAC, that's where we will spend. And being able to go to market with a portfolio of options, I think is what really differentiates us and sets us apart. So we're not specifying any specific part of our budget. But what I feel confident about is that we have around $160 million still earmarked for the rest of the year to drive our top of funnel. And no other companies in the space are going to be near us in terms of the ability to go out and really speak to a D2C platform such as ours.

CAC 效率是我們將要關注的。因此，這裡的機會將真正由產品和我們有影響力的地方驅動。因此，在我們看到高效的 LTV/CAC 的地方，我們就會花錢。我認為能夠通過一系列選擇進入市場，這才是真正讓我們與眾不同並與眾不同的地方。所以我們沒有指定預算的任何特定部分。但我有信心的是，我們仍有大約 1.6 億美元用於今年剩餘時間，以推動我們的漏斗頂端。就走出去並真正與我們這樣的 D2C 平台對話的能力而言，該領域沒有其他公司會接近我們。

Right. And then can you give us some rough estimation as to how long it may take to integrate the 2 platforms and come up with your integrated marketing message and kind of work that through? Is that like a year from now? Or is there any rough time frame for that?

正確的。然後你能給我們一些粗略的估計，關於整合這兩個平台可能需要多長時間，並提出你的整合營銷信息和完成的工作嗎？那是一年後的事嗎？或者有什麼大致的時間框架嗎？

Yes. We're not really ready to talk too much about that at this point, Linda. I mean we -- I want to be more thoughtful. And given we just closed a couple of weeks ago, we need time to co-create with our new colleagues on how we do this well and how we do this quickly. But as I noted, one of the core objectives here or the focus of our company is taking advantage of the head start that we have in the clinical space. So you can imagine that it is absolutely a priority and top of mind for us. And the nice thing is I will add there is that we just complement very well in terms of the things that we are doing really well and the things that Sequence are doing really well. There is a really good match up there that I think we look forward to talking and sharing more about in the next few calls.

是的。琳達，我們現在還沒有真正準備好談論太多。我的意思是我們——我想更周到。鑑於我們幾週前剛剛關閉，我們需要時間與我們的新同事共同創造我們如何做好這件事以及如何快速做到這一點。但正如我所指出的，這裡的核心目標之一或我們公司的重點是利用我們在臨床領域的領先優勢。所以你可以想像這絕對是我們的首要任務和首要考慮。好的是，我要補充的是，就我們做得很好的事情和 Sequence 做得很好的事情而言，我們只是很好地互補。那裡有一場非常好的比賽，我認為我們期待在接下來的幾個電話中更多地討論和分享。

Yes. That sounds great. And just my final question. I know that historically, there was some partnership that WeightWatchers did with offering the drug, Contrave, I think that's what is called. I don't know the context of that, and I don't know why it was never too successful. Or do you have any history on that and why that wasn't any big deal with that drug offering?

是的。聽起來不錯。還有我的最後一個問題。我知道從歷史上看，WeightWatchers 與提供藥物 Contrave 有一些合作關係，我認為這就是所謂的。我不知道那件事的背景，我也不知道為什麼它從來沒有太成功。或者你有這方面的歷史嗎？為什麼這對藥物供應沒有什麼大不了的？

Linda, I'm going to be honest. I don't have too much context there to share with you on that front. But what I can note is, I think that we can all agree that these new next-generation medications are unlike anything that have come before it, and the landscape has really shifted.

琳達，我要說實話。在這方面我沒有太多的背景可以與你分享。但我能注意到的是，我認為我們都同意這些新的下一代藥物不同於之前的任何藥物，而且情況確實發生了變化。

Our next question comes from Michael Lasser from UBS.

我們的下一個問題來自瑞銀集團的 Michael Lasser。

This is Henry Carr on behalf of Michael Lasser. If and when Sequence helps us drive find an affordable GLP-1 solution, what's stopping them from taking that to their primary care provider? In other words, why stick around when a solution is found?

我是 Henry Carr，代表 Michael Lasser。如果以及何時 Sequence 幫助我們找到負擔得起的 GLP-1 解決方案，是什麼阻止他們將其帶給他們的初級保健提供者？換句話說，找到解決方案後為什麼還要留下來？

Thanks, Henry. So the process with a -- these chronic weight loss medications is that it takes a high support care team around it. You need to titrate your dosages along your weight loss journey. And that's really different than, for instance, getting an ED medication in the script that you can get and walk away from. So there is a level of support that is needed that is different than other types of medications. Also the pre-authorization process, you're going to continue to need that throughout the journey as these dosages are changed and titrate. What's fascinating is that we actually saw the highest retention during the time when Mounjaro was coupon the most, people were clearly finding value in the program, not just in insurance.

謝謝，亨利。因此，使用這些慢性減肥藥物的過程需要一個高度支持的護理團隊。您需要在減肥過程中調整劑量。這與例如在您可以獲得併離開的腳本中獲得 ED 藥物真的不同。因此，需要一定程度的支持，這與其他類型的藥物不同。還有預授權過程，隨著這些劑量的改變和滴定，您將在整個旅程中繼續需要它。令人著迷的是，我們實際上在 Mounjaro 優惠券最多的時候看到了最高的保留率，人們顯然在該計劃中發現了價值，而不僅僅是在保險方面。

That's really helpful. And just as a follow-up, when and if these drugs come off, the FDA shortage by list and they're more accessible, does that erode the value proposition of the Sequence subscription? In other words, if these drugs become cheaper and more accessible in 2 to 3 years as generic versions come to market, how would you look to protect Sequence's subscriber base?

這真的很有幫助。作為後續行動，這些藥物何時以及如果上市，FDA 清單上的短缺以及它們更容易獲得，這是否會削弱 Sequence 訂閱的價值主張？換句話說，如果隨著仿製藥上市，這些藥物在 2 到 3 年內變得更便宜、更容易獲得，您將如何保護 Sequence 的用戶群？

It's an interesting point that you brought up and want to get too into the weeds here as I'm not a scientist, but I can tell you that because these are biologics, not the same sort of discounting when it comes to generics. But that being said, we are in the business, the subscription business, not the prescription business. And what we are offering is a care-team model. And that's what we've heard and where the NPS is so high, such that Sequence has been able to build its business by word of mouth, that they're going to a telehealth platform in order to be able to not only acquire these medications when medically appropriate, but then to be able to, alongside of that, get the fitness, nutrition, coaching alongside the medication to be able to have the same type of simple UX that you might even find in, for instance, consumer messaging apps.

這是一個有趣的觀點，你提出並想深入了解這裡的雜草，因為我不是科學家，但我可以告訴你，因為這些是生物製劑，而不是仿製藥的折扣。但話雖如此，我們從事的是訂閱業務，而不是處方業務。我們提供的是護理團隊模型。這就是我們所聽到的以及 NPS 如此之高的地方，以至於 Sequence 能夠通過口口相傳建立業務，他們將轉向遠程醫療平台，以便不僅能夠獲得這些藥物在醫學上合適的時候，但除此之外，還能夠在藥物治療的同時獲得健身、營養、指導，以便能夠擁有與您甚至可能在消費者消息傳遞應用程序中找到的相同類型的簡單用戶體驗。

And then obviously, and this is where the thesis for us acquiring this business, which makes so much sense is you want to build ongoing healthy habits above and beyond being able to take the medications. And I think it's worth noting, too, that there are new drugs in development. So this is the start of what we're starting to see around these medications where there's already talk about the, say, medications coming in pill form. Right now, they're all the injectables. So it's still a very nascent market, and there's a lot of evolution to come.

然後很明顯，這就是我們收購這家企業的論點，這很有意義，因為你想養成持續的健康習慣，而不是能夠服用藥物。而且我認為也值得注意的是，有新藥正在開發中。所以這是我們開始看到圍繞這些藥物的開始，那裡已經討論過，比如說，以藥丸形式出現的藥物。現在，它們都是注射劑。所以它仍然是一個非常新生的市場，未來會有很多發展。

Our next question comes from Lauren Schenk from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Lauren Schenk。

It's Nathan Feather on for Lauren. Exciting to see a step up in net adds despite the lower marketing year-over-year. I guess can you dig in a bit more on what you believe is working on the marketing side and how you can leverage that learning through the year? And then a second one, can you talk to any early trends in Sequence in the acquisition? I mean it certainly seems to get a lot of media attention. I'm not sure if that translates to sign ups?

這是勞倫的內森·費瑟（Nathan Feather）。令人興奮的是，儘管營銷同比下降，但淨增加量有所增加。我想你能不能更深入地了解你認為在營銷方面起作用的東西，以及你如何利用這一年的學習？然後是第二個，你能談談收購中 Sequence 的任何早期趨勢嗎？我的意思是它似乎確實得到了很多媒體的關注。我不確定這是否轉化為註冊？

So in terms of marketing, if I heard your question correctly, in terms of what's working well, in Q1, we spent $20 million less than in the prior year, so 18% less. And year-over-year, our Q1 LTV/CAC improved by about 14%. So we can clearly see this read through in our performance trends. And as Sima and I both referenced in the call, we see this step-up in our active space from Q4 into our first quarter end. If you go from Q4 2022 into Q1 2023 ending subscribers, we saw a step-up of 13% in our end-of-period subs versus 9% in the prior year. And we did that on $20 million less of marketing spend. So it's reading through in terms of working. And your second question?

因此，在營銷方面，如果我沒聽錯你的問題，就運作良好的方面而言，在第一季度，我們的支出比上一年減少了 2000 萬美元，因此減少了 18%。與去年同期相比，我們第一季度的 LTV/CAC 提高了約 14%。因此，我們可以在我們的性能趨勢中清楚地看到這一點。正如 Sima 和我在電話中都提到的那樣，我們看到從第四季度到第一季度末我們活躍空間的這種提升。如果你從 2022 年第四季度到 2023 年第一季度結束的訂閱者，我們看到期末訂閱者增加了 13%，而去年同期為 9%。我們在營銷支出減少 2000 萬美元的情況下做到了這一點。所以它在工作方面通讀。你的第二個問題？

I mean you're going to have to repeat your second question, Nathan. We didn't quite catch it.

我的意思是你將不得不重複你的第二個問題，Nathan。我們沒聽清楚。

Can you just talk to any early trends with Sequence since the acquisition? It certainly seemed to get a lot of attention in the media, but just wondering if that translated to kind of initial sign-ups and interest?

自收購以來，您能談談 Sequence 的任何早期趨勢嗎？它似乎在媒體上引起了很多關注，但只是想知道這是否轉化為某種初始註冊和興趣？

Definitely. So we're not speaking specifically to sign-ups or to Sequence in isolation at this point. But we did see a huge step-up in interest in Sequence rate at the point of announcing the acquisition and an actual step change in their subscriber volume from the point of that announcement. So yes, definitely increased interest and increased subscriber interest and activation.

確實。因此，此時我們並不是專門針對註冊或孤立的 Sequence。但我們確實看到，在宣布收購時，人們對 Sequence Rate 的興趣有了巨大的提升，並且從該公告發布之日起，他們的訂戶數量發生了實際的階躍變化。所以是的，肯定會增加興趣並增加訂閱者的興趣和激活。

I just want to add on the marketing point real quick. Is that -- and I think it's worth noting is that it's really less about the creative that we're deploying, and it's more about the ways in which we are buying and valuing media, going back to building a data-informed culture and that we were able to then couple that with 3 key brand moments, which are driving immediate response and really putting us back into the consideration set for so many. So -- and I would also add that the initial attention on the acquisition and WeightWatchers recognizing the chronic conditions around living with overweight and obesity has been positively viewed by the market. So not only is it impacting Sequence sign-ups, but also our core business as well. So that's nice to see.

我只想快速添加營銷點。是嗎 - 我認為值得注意的是，這實際上與我們正在部署的創意無關，而更多地與我們購買和評估媒體的方式有關，回到建立以數據為依據的文化以及然後，我們能夠將其與 3 個關鍵的品牌時刻結合起來，這些時刻正在推動即時響應，並真正讓我們重新回到這麼多人的考慮範圍內。所以——我還要補充一點，市場對收購的最初關注和 WeightWatchers 對超重和肥胖的慢性病的認識得到了積極的評價。因此，它不僅會影響 Sequence 註冊，還會影響我們的核心業務。所以很高興看到。

And also important, while we continue to help really drive the conversation around weight health, the Sequence is still a very nascent brand, and it did provide this boost to brand awareness, but the association to WeightWatchers, a brand with 60 years of heritage and trust is helping to drive trust for the clinical pathway as well.

同樣重要的是，雖然我們繼續幫助真正推動圍繞體重健康的對話，但 Sequence 仍然是一個非常新生的品牌，它確實提升了品牌知名度，但與 WeightWatchers 的關聯，這個品牌擁有 60 年的傳統和信任也有助於推動對臨床路徑的信任。

Our last question comes from Alex Fuhrman from Craig-Hallum.

我們的最後一個問題來自 Craig-Hallum 的 Alex Fuhrman。

Congratulations on closing the Sequence acquisition. I wanted to ask about advertising and customer acquisition in the telehealth space. I think WeightWatchers, of course, has a great reputation in the category. You have a lot of competitors in the telehealth space there that are advertising GLP-1 very aggressively in a way that I imagine how WeightWatchers never really would. So can you talk a little bit about how you're able to kind of get through to customers? Is it mostly about marketing the people in your kind of own ecosystem in terms of members and former members? I'm curious what you're seeing. I know it's early days, but in terms of customer acquisition costs on the Sequence side of the business.

祝賀您完成序列採集。我想問一下遠程醫療領域的廣告和客戶獲取情況。我認為 WeightWatchers 在該類別中當然享有很高的聲譽。你在遠程醫療領域有很多競爭對手，他們以一種我想像的 WeightWatchers 永遠不會真正做的方式非常積極地宣傳 GLP-1。那麼你能談談你是如何與客戶打交道的嗎？它主要是關於根據成員和前成員來營銷你自己的生態系統中的人嗎？我很好奇你看到了什麼。我知道現在還為時過早，但就業務序列方面的客戶獲取成本而言。

Thanks, Alex. So this is where in 60 years of brand equity comes to play. We're talking about our LTV/CAC and the efficiencies that we can drive by locking in on a brand that people know and trust and recognize. And so yes, you're right, but we think we could do this more efficiently. And I think that there are also synergies and our ability to retarget across our database as well as former members. And that ultimately the same thing that I said before about our core business applies to the telehealth business, which is that the product needs to market itself. And this product has incredibly high NPS, both for consumers and the clinicians because remember, both the supply and demand side here are important for a best-in-class experience.

謝謝，亞歷克斯。所以這就是 60 年來品牌資產發揮作用的地方。我們正在談論我們的 LTV/CAC 以及我們可以通過鎖定人們了解、信任和認可的品牌來提高效率。所以是的，你是對的，但我們認為我們可以更有效地做到這一點。而且我認為還存在協同作用，我們有能力在我們的數據庫和前成員中重新定位。最終，我之前對我們的核心業務所說的同樣的話也適用於遠程醫療業務，即產品需要推銷自己。而且該產品具有令人難以置信的高 NPS，對於消費者和臨床醫生來說都是如此，因為請記住，這裡的供需雙方對於一流的體驗都很重要。

And what we are seeing is that people are telling other people that Sequence is a great product that it makes insurance process easy that it's like a care team in your pocket and on top of that, when we combine with the behavior change program that we anticipate bringing to market, we're going to have a real differentiated offering. And I'm very bullish on what that means for our ability to drive the top of funnel.

我們看到的是，人們告訴其他人 Sequence 是一個很棒的產品，它使保險流程變得簡單，就像您口袋裡的護理團隊，最重要的是，當我們與我們預期的行為改變計劃相結合時推向市場，我們將提供真正差異化的產品。我非常看好這對我們推動漏斗頂部的能力意味著什麼。

This concludes our question-and-answer session. I would like to turn the conference back over to Sima Sistani for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Sima Sistani 作閉幕詞。

Thanks, Paul. I am so confident that we are approaching an inflection point in our business and we will return the company to a growth trajectory in 2023. As I said earlier, our key initiatives and decisive actions are shaping the future of our product experience, operating model, our financial trajectory, and the lives we positively impact. Thank you for joining us today. I'm looking forward to speaking with many of you at upcoming conferences, including BofA Healthcare Conference and the Goldman Sachs Consumer Staples Conference. And keeping you updated on the initiatives we have underway. We made a fourth view with you.

謝謝，保羅。我非常有信心，我們正在接近我們業務的拐點，我們將在 2023 年讓公司重回增長軌道。正如我之前所說，我們的關鍵舉措和果斷行動正在塑造我們產品體驗、運營模式、我們的財務軌跡，以及我們積極影響的生活。感謝您今天加入我們。我期待著在即將舉行的會議上與你們中的許多人交談，包括美國銀行醫療保健會議和高盛消費必需品會議。並讓您了解我們正在進行的舉措的最新情況。我們和你做了第四個觀點。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。