Health and wellness platform subscription The Beachbody Company (NYSE 🙂 The stock has fallen steadily after the trilateral business combination on June 25, 2021 S.Special Acquisition Company (SPAC) Forest Acquisition Corp was the vehicle for a reverse merger with The Beachbody on Demand (workout and wellness streaming content and supplements), Openfit (live trainer classes), and Myx Fitness Holdings (connected fitness equipment ). The company was a benefactor during the COVID-19 pandemic as home and connected fitness grew exponentially with gym closings. With the reopening underway and the biggest gym operators gaining market share with mom and dad, and iconic gyms in particular (IE: Gold’s Gym and 24-Hour Fitness) going out of business, investors are wondering whether the home fitness providers are Will experience a return to normal. Beachbody is a home and related fitness content and nutrition game as its subscription-based model and exclusive content is a boon, especially during the winter months when gym goers prefer home workouts and getting their beach bodies ready.
Earnings release for the 2nd quarter of 2021
On August 12, 2021, Beachbody published its second fiscal quarter 2021 for the quarter ending June 2021. The company reported adjusted earnings per share (EPS) of ($ -0.05) as revenue increased 2.1% year over year. Year (year) at $ 223.11 million. Revenue growth over the two years was 21%, subscriptions increased 55%, and total streams increased 75% by 75%. The company ended the quarter with $ 347.2 million in cash with no debt. Beachbody will accelerate growth by 30% with bike unit growth, the launch of BOD and increased media investments in the second half of 2021. The company expects full year 2021 revenue of $ 930 million to $ 960 million and an adjusted EBITDA loss of ($ 110 million) to ($ 100). Million).
Carl Daikeler, CEO of Beachbody commented:
“Over the past two decades, Beachbody has established itself as the world’s leading provider of subscription health and wellness by developing compelling digital fitness content and proprietary nutritional products that deliver results for millions of customers. The completion of our merger, the addition of Connected Fitness to the Beachbody portfolio and the launch of Beachbody in the public market have now created the conditions for a multi-year phase of accelerated growth. The addition of Myx enhances our holistic approach to health and wellness and gives us a great opportunity to bring our customers the improvements they want, especially a high quality connected indoor bike and live content produced with the same innovation since the days of P90X is Beachbody’s trademark. Looking ahead, we believe the company will benefit from multiple drivers including our first advertising campaign for the Beachbody brand, the launch of our new interactive live content subscription BOD Interactive (BODi (BBCZ)) and the sale of the MYX bike to our customer base and a strong network of coaches and influencers. “
The digital revolution in fitness
CEO Daikeler boldly stated:
“The digital disruption of fitness is here, opening up and expanding the entire addressable market. Beachbody is uniquely positioned at the forefront of three megatrends that are driving this change – the advent of digital streaming subscriptions, the popularity of connected fitness, and the increased demand for effective health and wellness solutions. Beachbody has a proven approach with entry points on multiple platforms and our years of experience in successfully attracting, retaining and retaining subscribers. While we remain aware that the short-term COVID variant and macro conditions present heightened uncertainty early in the second half of the year, I remain very optimistic about our long-term prospects and I am confident that we can scale and create the business substantial shareholder value when conditions begin to normalize. “
BODY Opportunistic pullback levels
Using the rifle diagrams in the weekly and daily timeframes provides a precise overview of the landscape for the BODY inventory. The weekly rifle chart split shows an inverse pup and a stochastic mini-inverse pup downtrend, with a falling 5-period moving average (MA) at $ 11.01 Fibonacci (fib) level and weekly lower Bollinger Bands (BBs) at $ 9.25 fib. The weekly Low market structure (MSL) Purchase trigger over $ 10.83. The daily closing chart has an ugly inverse pup split aided by the stochastic low-band mini-inverse pup. The 5-Period Daily MA resistance drops to $ 9.75 with lower daily BBs near the $ 8.73 fib. The charts aren’t pretty to say the least, but they create an opportunity despite the panic selling. Prudent and risk tolerant investors have opportunistic pullback levels at $ 8.73 fib, $ 8.28 fib, $ 7.87 fib, $ 7.51 fib, $ 6.98 fib, and $ 6.44 fib. The upward curves range from $ 12.05 fib to $ 15.03 fib.