Strong First Quarter Revenue Growth, Record
Engagement Levels
Poised to Accelerate Growth Upon Completion of
Proposed Three-Way Merger
Forest Road Acquisition Corp. (NYSE: FRX) (“FRX” or “Forest
Road”) and The Beachbody Company Group, LLC (“Beachbody”) today
announced combined financial results for Beachbody and Myx Fitness
Holdings, LLC (“Myx”) for the first quarter 2021. Results reflect
continued strong revenue momentum and record levels of customer
engagement and retention at Beachbody and Myx.
“The results for Beachbody and Myx this quarter reflect the
continued strong customer response to our dynamic and compelling
content and holistic fitness and nutrition offerings. This
performance demonstrates the relentless commitment to innovation in
digital fitness and nutrition that we have honed for the past 22
years,” said Carl Daikeler, Beachbody’s Co-founder, Chairman and
Chief Executive Officer. “We have built a truly differentiated
subscription health and wellness company, predominantly funded by
the cash flow from the business historically. Upon the completion
of the merger with Forest Road and Myx, we are poised to accelerate
growth as we invest the proceeds of the transaction to further
unlock value from our unrivaled fitness content library, our large
and growing community of subscribers, and synergies through the
combination with Myx. Today, we have 3.2 million total digital and
nutritional subscriptions, a deep content library and a 22-year
track record of growth. As we embark on this next chapter, I have
never been more excited about the future of our company and the
opportunity for us to bring our differentiated health and wellness
offering to millions of people worldwide.”
First Quarter 2021 Combined1
Revenue Highlights
Combined results for Beachbody and Myx for the three months
ended March 31, 2021 as compared to the three months ended March
31, 2020 were as follows:
- Total revenue was $243.3 million, a 43% increase
- Nutritional and other revenue was $131.1 million, a 23%
increase
- Digital revenue was $97.5 million, a 56% increase
- Connected fitness revenue was $14.7 million, an increase of
more than 20 times
_____________________________ 1 Combined information below
presents the pro forma combined revenue as if Myx had been combined
with Beachbody as of January 1, 2021. The unaudited pro forma
financial information is presented for informational purposes only.
Actual results are presented below under “Key Operational and
Business Metrics.”
First Quarter 2021 Key Performance
Indicator (KPI) Highlights
For the three months ended March 31, 2021 as compared to the
three months ended March 31, 2020, key metrics were as follows:
- 3.2 million total subscriptions at Beachbody, a 39% increase
and a record high for total subscriptions
- 95.8% month over month digital retention at Beachbody, a record
quarter result and a 100-basis point increase
- 56.9 million total streams, a record for first quarter streams
result and a 71% increase
- 35.1% DAU/MAU2 for Beachbody, an increase of 510 basis points,
reflecting the highest digital engagement in Beachbody’s
history
- 11.3 thousand connected fitness equipment bikes sold by Myx
versus 1.1 thousand bikes sold in the first quarter of 2020
Strategic Updates
- Beachbody continues to capitalize on innovative distribution
opportunities, including its recently announced relationship with
Fitness International, providing LA Fitness, Esporta Fitness and
City Sports members the ability to add Openfit subscriptions to
their existing gym membership
- Beachbody is elevating its live and on-demand digital fitness
experience through an agreement with Feed.fm’s B2B music licensing
subscription service. As part of its recently announced interactive
premium tier for Beachbody on Demand, users will be able to follow
the trainer’s curated soundtrack for the workout, or choose from
multiple genres so they can work out to music of their choosing
while staying on beat with the rest of the class
- Beachbody’s most recent launch, Let’s Get Up! reached one
million streamed views in one month, second only to #MBF, which
reached one million streamed views in 25 days in the third quarter
of 2020
Three-Way Merger with Forest Road and Myx
Beachbody expects the three-way merger among Beachbody, Forest
Road and Myx to close in the second quarter of 2021. The combined
company will be named The Beachbody Company and will be listed on
the NYSE under a new ticker symbol, “BODY”.
_____________________________ 2Daily Active Users to Monthly
Active Users (DAU/MAU). Beachbody uses the ratio of daily
active users to monthly active users to understand how frequently
digital customers are utilizing its service in a given month.
Beachbody defines a daily active user as a unique user streaming
content on its platform in a given day. Beachbody defines monthly
active user in this ratio as a unique user streaming content on its
platform in that same month.
Key Operational and Business
Metrics
Beachbody As of March
31,
2021
2020
Change
Digital Subscriptions (in millions)
2.7
1.9
42%
Nutritional Subscriptions (in millions)
0.4
0.4
-
Total Subscriptions
3.2
2.3
39%
Three Months Ended March 31,
2021
2020
Average Digital Retention
95.8%
94.8%
100bps
Total Streams (in millions)
56.0
33.2
69%
DAU/MAU
35.1%
30.0%
510bps
Digital Revenue
$ 95.2
$ 62.5
52%
Nutritional & Other Revenue
$ 131.1
$ 106.8
23%
Revenue (millions)
$ 226.2
$ 169.3
34%
Myx Fitness As
of March 31,
2021
2020
Change
Connected Fitness Units Sold (in thousands)
11.3
1.1
927%
Digital Subscriptions (in thousands)
32.6
1.2
2617%
Three Months Ended March 31,
2021
2020
Average Digital Retention
98.1%
92.2%
590bps
Total Streams (in millions)
0.9
0.0
NM
DAU/MAU
28.6%
23.4%
520bps
Connected Fitness Revenue
$ 14.7
$ 0.6
2350%
Digital Revenue
$ 2.3
$ 0.0
NM
Revenue (millions)
$ 17.0
$ 0.6
2733%
About The Beachbody Company Group, LLC
Headquartered in Santa Monica, Beachbody is a worldwide leader
in health and fitness, with a 22-year track record of creating
innovative content and powerful brands. With 2.7 million paid
digital fitness subscribers across two platforms, a nationwide
peer-support system of over 400,000 influencers and coaches as of
March 31, 2021, plus a premium portfolio of branded nutrition
products, Beachbody is a leading holistic health and wellness
company with over $1 billion in revenue projected in 2021.
Beachbody, the parent company to the Beachbody On Demand platform
and the fast-growing DTC platform Openfit, recently entered into a
pending three-way merger agreement with Forest Road Acquisition
Corp. (“FRX”), a publicly traded special purpose acquisition
company, and Myx, an at-home connected fitness platform, that will
make it a public company. For more information, please visit
TheBeachbodyCompany.com.
About Myx Fitness Holdings, LLC
Myx delivers a revolutionary and personalized solution for its
members to make connected fitness part of their daily lives. The
brand's cornerstone products, The MYX and The MYX Plus, offer
professional-quality equipment at an affordable price, hundreds of
on-demand classes, combined with expert coaching on a digital
platform, designed to improve endurance, strength, mobility and
flexibility. Using science-backed methods, Myx utilizes proprietary
heart rate technology and cross-training, brought to life through
positive coaching, to deliver lasting results. Myx is available
starting at $1,299 with delivery nationwide in approximately one to
three weeks depending on location and scheduling availability.
About Forest Road Acquisition Corp.
Forest Road Acquisition Corp., a blank check company formed for
the purpose of effecting a merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or similar business
combination with one or more businesses, raised $300 million in
November 2020 and its securities are listed on the NYSE under the
tickers “FRX,” “FRX.U” and “FRX WS.” The Forest Road team includes
three former Disney senior executives — Tom Staggs, director and
Chairperson of the Strategic Advisory Committee, Kevin Mayer,
strategic advisor and Salil Mehta, Chief Financial Officer — and is
strengthened by the strategic connectivity and deal-making
expertise of directors, officers and strategic advisors like
Shaquille O'Neal, Peter Schlessel, Keith Horn, Sheila Stamps,
Teresa Miles Walsh and Martin Luther King III. For more
information, please visit https://www.spacroadone.com/.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws with respect to
the proposed transaction between Beachbody, Myx and FRX, including
statements regarding the anticipated benefits of the transaction,
the anticipated timing of the transaction, future financial
condition and performance of The Beachbody Company and expected
financial impacts of the transaction (including future revenue, pro
forma equity value and cash balance), the satisfaction of closing
conditions to the transaction and the concurrent PIPE transaction,
the level of redemptions by FRX’s public stockholders and the
products and markets and expected future performance and market
opportunities of The Beachbody Company. These forward-looking
statements generally are identified by the words "believe,"
"project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should,"
"will," "would," "will be," "will continue," "will likely result"
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) the risk that the transaction may not be completed
in a timely manner or at all, which may adversely affect the price
of FRX’s securities, (ii) the risk that the transaction may not be
completed by FRX’s business combination deadline and the potential
failure to obtain an extension of the business combination deadline
if sought by FRX, (iii) the failure to satisfy the conditions to
the consummation of the transaction, including the approval of the
merger agreement by the stockholders of FRX, the satisfaction of
the minimum trust account amount following any redemptions by FRX’s
public stockholders and the receipt of certain governmental and
regulatory approvals, (iv) the lack of a third party valuation in
determining whether or not to pursue the proposed transaction, (v)
the inability to complete the PIPE transaction, (vi) the occurrence
of any event, change or other circumstance that could give rise to
the termination of the merger agreement, (vii) the effect of the
announcement or pendency of the transaction on Beachbody’s business
relationships, operating results, and business generally, (viii)
risks that the proposed transaction disrupts current plans and
operations of Beachbody, (ix) the outcome of any legal proceedings
that may be instituted against Beachbody or against FRX related to
the merger agreement or the proposed transaction, (x) the ability
to maintain the listing of FRX’s securities on a national
securities exchange, (xi) changes in the competitive and regulated
industries in which Beachbody and Myx operate, variations in
operating performance across competitors, changes in laws and
regulations affecting the business of Beachbody and Myx and changes
in the combined capital structure, (xii) the ability to implement
business plans, forecasts, and other expectations after the
completion of the proposed transaction, and identify and realize
additional opportunities, (xiii) the risk of downturns and a
changing regulatory landscape in the highly competitive residential
real estate industry, and (ix) costs related to the transaction and
the failure to realize anticipated benefits of the transaction or
to realize estimated pro forma results and underlying assumptions,
including with respect to estimated shareholder redemptions. The
foregoing list of factors is not exhaustive. You should carefully
consider the foregoing factors and the other risks and
uncertainties described in the "Risk Factors" section of the
registration statement on Form S-4 discussed below and other
documents filed by FRX from time to time with the SEC. These
filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Beachbody and FRX assume no obligation and do not
intend to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise.
None of Beachbody, Myx or FRX gives any assurance that Beachbody,
Myx or FRX, or the combined company, will achieve its
expectations.
Important Information and Where to Find It
This press release relates to a proposed transaction among
Beachbody, FRX, and Myx. This press release does not constitute an
offer to sell or exchange, or the solicitation of an offer to buy
or exchange, any securities, nor shall there be any sale of
securities in any jurisdiction in which such offer, sale or
exchange would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. FRX has filed a
registration statement on Form S-4 with the SEC, which includes a
document that serves as a prospectus and proxy statement of FRX,
referred to as a proxy statement/prospectus. A proxy
statement/prospectus will be sent to all FRX shareholders. FRX also
will file other documents regarding the proposed transaction with
the SEC. Before making any voting decision, investors and security
holders of FRX are urged to read the registration statement, the
proxy statement/prospectus and all other relevant documents filed
or that will be filed with the SEC in connection with the proposed
transaction as they become available because they will contain
important information about the proposed transaction.
Investors and security holders will be able to obtain free
copies of the registration statement, the proxy
statement/prospectus and all other relevant documents filed or that
will be filed with the SEC by FRX through the website maintained by
the SEC at www.sec.gov.
Participants in the Solicitation
FRX and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from FRX’s shareholders
in connection with the proposed transaction. A list of the names of
such directors and executive officers and information regarding
their interests in the business combination will be contained in
the proxy statement/prospectus when available. You may obtain free
copies of these documents as described in the preceding
paragraph.
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version on businesswire.com: https://www.businesswire.com/news/home/20210519005547/en/
Investor Relations
For Beachbody: ICR - Beachbody@icrinc.com
For Forest Road: ir@forestroadco.com
Media
For Beachbody: ICR - BeachbodyPR@icrinc.com
For Forest Road: media@forestroadco.com
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