
The Beachbody Company, Inc. (NYSE: BODI), a prominent fitness and nutrition firm, has announced a strategic evolution of its core business model, adopting an omnichannel sales approach to streamline operations and position the company for profitable growth. This shift will reduce costs, expand distribution channels, and lower the company’s revenue break-even point.
New Business Model
BODi will transition from its existing Multi-Level Marketing (MLM) model to a single-level Affiliate Program, launching on November 1, 2024. Participants in the Team BODi Partner Network in the U.S. and Canada will move to this new program, which aims to be more productive and rewarding for a broader base of sellers. The MLM structure will be fully phased out by January 1, 2025.
Mark Goldston, Executive Chairman of BODi, explained that the company has successfully reduced its revenue break-even point by over $400 million, lowered net losses, and generated positive Adjusted EBITDA over the last three quarters. The next phase involves optimizing distribution by replacing the MLM system with a single-level affiliate model, expanding direct-to-consumer channels, Amazon sales, and partnerships to diversify revenue streams.
Goldston added that the MLM model is outdated and unsustainable, and the affiliate program offers a simpler and more efficient approach to customer acquisition, rewarding sellers directly for their efforts. This change, he believes, will benefit all stakeholders.
CEO Carl Daikeler emphasized BODi’s adaptability over its 26-year history, highlighting that the transition to the Affiliate Model will empower partners to focus on their health and fitness goals while sharing their success with others, without the complexity of managing a team.
Corporate Restructuring
The Board-approved restructuring plan, known as the “Pivot,” will centralize operations around one eCommerce platform at BODi.com, eliminate MLM support functions, and reduce the workforce by about 33%. These actions are expected to save $54 million annually and lower the company’s revenue break-even point from less than $430 million to under $225 million.
Daikeler acknowledged the difficulty of workforce reductions but stressed the importance of these changes for the company’s long-term success and its ability to help more people.
Third Quarter Guidance
BODi reaffirmed its financial guidance for the third quarter ending September 30, 2024, projecting revenue between $97 million and $107 million, a net loss of $9 million to $13 million, and Adjusted EBITDA between $2 million and $6 million. Restructuring-related charges of approximately $9 million to $11 million and potential goodwill impairment are also being evaluated.
About BODi
Founded in 1999 as Beachbody, BODi has delivered home fitness and nutrition programs like P90X, INSANITY, and 21 Day Fix to over 30 million customers. The company continues to innovate, helping millions achieve healthy weight loss, strength, and well-being.
For more information, visit TheBeachbodyCompany.com.
Safe Harbor Statement
This release contains forward-looking statements subject to risks and uncertainties, including market conditions, competition, and restructuring outcomes. More details are available in the company’s SEC filings, including the Form 10-K and subsequent reports.