WW - Earnings call transcript Q1 2019 | WW International, Inc.

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Operator

Good afternoon, and welcome to the WW First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Corey Kinger, Investor Relations. Please go ahead.

Corey Kinger

thank first everyone quarter and today joining Andrea, WW's for XXXX you, you for to us Thank conference call. or X about X At p.m. first we release Eastern a quarter our today, XXXX Time results. issued reporting press details a this of as provide some financial is The on regarding to the purpose company's provide call the as update investors to with further general well progress. results company's the is release website corporate press company's available on at The corporate.ww.com. located presentation the and available also on company’s Investor are section materials in under investor and Supplement events. corporate the website non-GAAP also of this press call part Reconciliations disclosed measures conference GAAP the to on comparable directly financial the release. of available most measures are as

Before to forward-looking Please required we undertakes new All forward-looking a or and the information, statements. such these Exchange discussion law, today. as as risks to today These company that from in could be that obligation should of uncertainties aware here call begin, or that update to explained by forward-looking detail publicly any statements, of and the whether those in of the more statements cause of except and detailed are any discussed with actual no Commission. risks Securities and will uncertainties refer revise results filings are everyone result differ otherwise. various this contain forward-looking materially made statements for a risk filings forward-looking as events to Investors and me let are the statements. statements company's factors remind subject future

I turn call today's Nick Emerging North CEO; and Hotchkin, now and call CFO, the President Markets. Officer, are Mindy. America and to Joining Operating President, over Grossman, Mindy will

Mindy Grossman

to X% This pleased in say above taking XXXX from levels, afternoon, member action trends attending prior expectations that to today. with improved we March, improve Good you quarter speaking Corey. effectiveness. below resulted subscribers, up million the and and be you, our quarter have still of optimize marketing XXXX. stabilized everyone. business and year-over-year by X.X recruitment I'm to February in but the both first first our glad Thank quick the I'm

trends we As QX recruitment ahead improved a result results of strong our these of delivered expectation. cost and management,

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year. app its there members, our evolution ecosystem, is current and our the tremendous of and our the features galvanize former a particularly of opportunity all Beyond past awareness to great over

that all International honor. members. our experience and app it delivers recognized This in value the award, reason is for the by a of Internet Digital Sciences Our is unique WW industry's a Arts app with Academy is immense recently the Webby highest

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digital studio-plus-digital app members. engagement both grow, among member Importantly, and to our with continues

approximately add members we the two-thirds quarter more members features, have engage. ways more tools, even our to our using engage with Connect. As our content first of and In app,

XXXX. In than feature app, more comments food XX% app. device thinking million More are media more March up significantly track fitness in to made XX up million X.X members the XX and X.X WW million attracting throughout have a social tracking from created members average unique Our their posts, app QX, from connectivity by XXXX. within members seen In in about these million million And likes. to the utilization activity. device, X.X an of members automatically

members loyalty are tracking activity, and introduction food this at SmartPoints, are XXXX early We consistent program, which in of our in by is believe app joined workshop who early Looking versus on among for with tracking and food, and the tracking rewards members engaging larger rewards percentage attendance. XXXX, studio weight increases these digital ever digital wins both activity and and an members. year-over-year by the and WellnessWins, driven the

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this as our organization, Studio structure workshops regularly our have markets in spending and business, with of future right business, talent call, global our attending leadership key the in and the global last WW one to element have every of I'm I'm right we first across on such our personally to meeting on was realigned we revitalize ensuring a In focus elevate clear order ensure globally. the and to quarter, our drive the growth. increase to we our As I focused our mentioned our visiting in experience. the Studio time agile The Studio's, realignment resources

to for North his responsibility as Nick assume I've In asked addition market. operating American to role CFO, the

then the now I'll Hotchkin our XXXX to call priorities. and performance Nick to over outlook, financial discuss back I'll the discuss come to hand So,

Nick Hotchkin

Thanks, Mindy.

like outlook, Before I to to results leading first how I'm our and be say, North efforts. thrilled our discuss I'd America

driving the product Studio as the business, channels. through particular, weaker joined at currency. ahead by down with of and a took million down incoming all in the business. of in aspects slightly other start to year-over-year rate Digital well we it recruitment teams quarter and in two the our working $XXX these the constant-currency have XX% really being the revenues sales QX, and results. time I'll in-app X% Despite enjoying Our year. basis, such XXX QX significantly as higher our expectation strong members. of showing that, global and the entered in the as are up In in on a pull-through Invite X.X member revenue level a Gross was revenue first actions revenues. primarily in our purchase year-over-year currency with and was in quarter basis spending We our a approximately turn from around coaches. attracting as on to the primarily was Recruitment during due from stabilize constant already subscription channel first well our points nearly of for improving geographic XX% margin major quarter Total Studio year-over-year driven and QX, talented us, up year-over-year recruits that, helped business, are constant time effective increased galvanized of other year-over-year subscribers, trends. across XX%, subscribers the Friend year-over-year. is financial million, the And hearing across with declines I'm X% field on markets, performance

taken deleveraged of we XXXX revenues QX of than better margin million Also, million the in inventory taken from quarter. $XX would XXXX, was expected flat down due been the in QX operating Operating related period. lessons operating actions marketing income a by in year-over-year, primarily gross to on expense quarter restructuring. the reserves driven impact $X.X versus income QX was higher roughly million, of and $XX the expenses cost-reduction prior XXXX, little in lower organizational to Excluding have impacting

across launched a $X.XX a million. our was in generation expected related and per a revenue cost-savings share $X.XX, in discussed profitability which initiative of negative levels, included EBITDAS a call, EPS $XX impact $X.XX to included EPS all in loss aligned GAAP of comprehensive to $X.XX was tax organizational the QX expense benefits. changes. we with the QX lines. share better which This As XXXX, per February of QX compares GAAP cash

our Now outlook. turning to

is subscriber XXXX seasonality. point. Our our subscriber consistent trend is be Like, over of our course with QX the our expected level the end peak year-end of to and is normal low period

be and to sequentially. slightly, of subscribers down We period expect both QX year-over-year end

XX% while cost year, have soft we recovery course of the structure of actions to start business. and over our about it reminder, positive a the of our annual expect given And therefore, As recruits difficult a QX. impact to in recover the join business us is have the seasonality from the

for We reflecting in to both be be to recruitment global the a Digital whole are in finding On nine for average the expect member year a value Studio. basis, negative Digital retention Studio, over for WW. well as members and months continues our and both

We are further WellnessWins and the to focused through on retention member efforts our expanding experience. other enhance

to $XX assumes of expect an of continue million. to XX% subscription revenue full year revenue we a we this to -- expect And modest digital spring we improvement $X.X continued we in in low be the on trends foreign a campaign be approximately mid the towards In We year easier about revenues to a as This negative shift full year now in improvement subscriptions and also revenue to comparisons. total on our Overall, the single-digits in XXXX prior basis. Europe, our exchange back America North of assumes anticipate and be recruitment the constant-currency continue single and UK, Continental expect some representing down year. constant-currency revenue impact versus guidance some our This full digit basis, be year estimated lap mixed guidance. guidance billion. to revenue further a relevant year-over-year in expect improvements down half in

revenue guidance $X.XX trend slightly strong full XX range the $X.XX million shares This to increased reflecting Our to management. cost improved year. full assumes year and outstanding for guidance EPS GAAP has

in We'll basis. For the in range points rate an gross going to year. reflecting through which expense results now investing in in spring to an market. in approach, that lower This our EPS and G&A saving my the addition We is advertising always our XXXX to guidance, partially expected globally in speak expense initiatives by approach margin basis social behind and remainder I'm largest of assume approximately of XXX a QX. from constant-currency approximately $XXX expect million, Marketing full XX%. be absolute reflecting the interest line, expected XXXX, about approximately full to million. is run our on of $XXX continue by primarily XXXX produce United decrease to on marketing rate prior in year through our lower Below to dollars to tax comments, year be offset improvement year be midpoint expense year-over-year mid-June. agile initiatives year is spending digital States, be we TV a and cost prior full volume QX versus will million $XXX and about our

about range in primarily we is software million year, capitalized studio spend, and some to the $XX expect the improvement CapEx For by driven to be network million. and tech DNA be expected $XX

minutes Now I structure a talking like generation. capital few about cash our spend and to would our

million undrawn revolver. balance $XXX end, had is we and cash position QX liquidity Our At strong. an

demonstrating of continued generation, We cash debt and excess the in generation cash million for year, short-term is strong EBITDAS approximately of full our $XXX our well obligations. this expect

cash So with repayments, end any than absent end higher we to debt XXXX balance of expect would XXXX. the a

In to back to first focus operate net used flexibility from drive have management providing in improvement trend sustainable X.XX create in on covenant-light on basis only would our the time. ended We our by loan the program that a growth. are our lien are incremental path we in resources With best-in-class I with of debt-to-EBITDA first-lien also invest Notes to addition a in ratio turn highly holistic connecting encouraged leverage wellness with And actions. that the continue prepay not like we to remain flexibility and model, ratio right cost strategy have X.X are business and with to leverage the end QX consolidated the as times. structure resulting it business, was to our cash-generative to at initiatives that, leverage our very agreement debt-to-EBITDA and Mindy. the solutions a that but as summary, debt calculations QX long-term growth. times. any to net term our will is to We credit confident We

Mindy Grossman

Nick. Thanks,

we five is aligned with our elevating all As the we priority XXXX retention WW of have objectives previously, that areas outlined brand. key have for and recruitment, key

First, execution our marketing strategy.

Our approach member to up the marketing comprehensive is to across to to motivation journey on-boarding sign to contemplation engagement success. to

it members which our only recognize well from Our understands, focused cross-functional experience, on come so WW. team rewards is creating and

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prospective We influencer members also our WW and engaged current members with alike in marketing.

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So activation. big given have our group the this And and, value grow members thereby community the is provides overall told opportunity to then a us global increase metric engagement.

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while maintaining was the by necessary, at of we where correct the our long-term our and not ability the pivot recruitment with team's expectations, start quickly to are focus on vision. year course While encouraged

on motivation, and support mindset, confident to leaders with the audiences, wellness life, weight highly path long-term it’s well healthy, as want Management. to to diverse be sustainable the best-in-class We People partner our markets. healthy by executing a wellness broader real developing activity, and of loss community we wellness personalized Wealth right are support become attractive that purpose to and as for happy inspire nutrition, work encompasses your growth. the everywhere more with ecosystem appeal life Weight are and habits loss that

for And So now the to operator call for us call we joining today. will Q&A. you with the that, turn on the thank

Operator

begin We of question answer go Nagel Oppenheimer. [Operator our will will Brian Please session. And come now ahead. first Instructions] from question the and

Brian Nagel

afternoon. good Hi

Mindy Grossman

Brian. Hi

Brian Nagel

questions. taking for my you Thank

first the my your and all appreciate subscriber question comments to So and with I color regard growth.

with is in QX, more guys a we internal now external function could more as in a you emerged. about missteps factors So weakness back say new talk like the think some do recruitment, look about think Can wins. have we be the now that with may you versus How of do split? clear of

Mindy Grossman

I and the can in for think over healthy to as about can is what So in what control reason a now lead help lives the we been control XX have better in weight leader we and wellness. we is we why what loss ability we people also do because lead years

is on absolutely disappointed specifically control what to talking in customer and very the what way seeing So our is improvement. that responded, is and best. more engage we're controlling could that's immediately we didn't we what new done about I'm ways diagnose Nobody we results we is can what that can perform, a but we have why diagnose, than we focus we and immediately us we what do created do assets, in new the more effective the of

Brian Nagel

couldn’t make if growth, but that's subscribers less in brand. you phase true coming to we year. we type assumption, the follow-up -- that Watchers the we Weight -- subscriber is, mentioned if arguably growth a Okay. similar that likely the expect and subscriber in through follow then back in this ways subscriber this, XXXX Could there question. recurring some is think not weaker the customer would probably that will the And in then if be through think prior if think of maybe and was about said a fade we’re I I QX you can trajectory have of we financial how I commentary trajectory years, your Nick, you expect question but have

potentially end You have now of stick base your -- QX? at base right the

Nick Hotchkin

point. the assumes in over I low the Brian, that trends end QX the like peak same our guidance year as the seasonal said as

course, WellnessWins stay that longer within have seasonal with and continuing only to but recruitment the with people also. not expected WW Now, driving trend trajectory, our for both retention of normal improve other we're on focused activities,

Brian Nagel

Okay. Thank you.

Operator

of Camma Frank Sidoti. question go comes Please next from ahead. Our

Frank Camma

Hey, thanks the taking question. for

did is just clarification. million $X that you was related restructuring? Nick, SG&A question there say in First to a

Nick Hotchkin

Yeah. so, million majority SG&A, about spend million The share. or total a Frank, There per vast restructuring is $X.X the $X of in that OpEx. or hit is $X.XX rest

Frank Camma

Okay.

So Is if out saying that for… you're take could what your numbers, we normalize we wanted to $X.XX.

Nick Hotchkin

Yeah. $X.XX reported that restructuring had we The number, that $X.XX that loss yes. within

Frank Camma

you said. Okay. year, for makes given the you more reasonable XXX what That

Okay.

Why The year-over-year other been not on would product my sort some only was but thing, working you've given variance line. be the products obviously of, your question is revenue those really initiatives so of that revenue big sharply on? just, big down the that

Nick Hotchkin

studio I Frank WW fact Look, so unique members to January and -- tend that first during new on products in quarter, primarily Yeah. we our the when in workshops. spend meetings they're our weak to more the was therefore, attendance in business set that think particularly some

fact assumes new expect our wonderful and go certainly other the product year that just comes through ramping we through that we're to we the line The that's factor guidance they was globally year-over-year that's why the that dip. and as improve products really and up sales trends

Mindy Grossman

dedicated within our to and our of food to And they've that first in add in workshop, saw developed particularly and more the that. as Amazon continue and year also our store think and platform see the been doing we and you launched products I space on e-commerce we're you our on formulated course we will other more the categories over introductions, in continued addition focus the new sales product

Nick Hotchkin

Bear in our ramped last end the ramping up we in were off we products it tail old down as thought product tail lines. this new mind of of year, the

year comps or easier in got the we've back half the So of so.

Frank Camma

Okay.

year. you put correct? as those well Just from Is remind that's that royalties historical where down well, but are right, me

Nick Hotchkin

Yeah. relatively year-over-year. Royalties licensing business, flat

Mindy Grossman

The formulated, products out market who as our what are all we know, assessment, brand, with we space. we've is way the done you product are sell we and is about have that every the across first be full Certainly, think back a a product said as there our we all consistent it in the out have. why was to back, which opportunities to within priority

where you've seen efforts. globally, in of of particularly and -- areas brought also our We are focused in new Product we and kitchen looking Licensing healthy Head

to of you'll around So those expansion, expect areas business. see particularly product

Frank Camma

you. Thank helpful. That’s Okay.

Operator

Sachs. Our comes ahead. of Jason from Goldman next question Please go English

Jason English

folks. Thank me Hey, squeezing for good in. evening you

Mindy Grossman

Jason. evening. Hi, Good

Jason English

America, trying early to and given I want meaning larger we you it initiative it on it's that also like into Any than to on. an North because a the little dig satisfaction, deeper what or your subscribers bit focused are in; was drill of sounds mean certainly rates on leave one guys little North expected in area that is highest, it relatively And the consumers a assume back drove two of satisfaction then are the subscribers? cohort new up later? fair to generally come they where come step America with and indications sequential they is a year this in

Mindy Grossman

normally back. the point, early to first come in year, to last members, So your particularly

news to If a of you think a year those things. huge drive were lapping about it, members innovation, so new we combination which even more, also tends lapsed a of

right. So you're

for we looking as the members studio certainly So new a even that we both like new partnerships members. attract at But targeted business. new on look view lapsed also know marketing new of and format, to things from definitely then point working

that with studio have we're square-foot we X,XXX in a Kohl, other and our So partnership building Chicago for and a efforts. example, announced flagship

So our members of not within how former can our also recruit, just where diversification looking expanding you'll existing we recruit new opportunities we're to but environments, see members.

Jason English

on you over tracking high of terms just mentioned still then, -- that in And recruitment Okay. nine retention let's a months. broader

point Is you And points you're give you that some recruitment? us you that soft data would talked mentioned here. seen there you've us in into Do from great But quantification, about? to improvement recruitment any engagement, to points grasp quarter? data which can contextualize translate gave any the think the in terms hopefully improvements should you sequential doing You the is of enough intuitively retention. little clearly

Nick Hotchkin

looks it and that's and improvement during so the Yes, frankly reflected launch sequential our in the quarter of guidance. also campaign our spring into continuing

but QX wouldn't I doesn't expect positive our QX, guidance expect year-over-year So cross in that would later has hurdle sometime assume the recruitment, to we year. that

Jason English

you. Thank Okay.

Operator

Sinisi Stanley. Vincent Please ahead. from Our of next go comes Morgan question

Vincent Sinisi

Good Thanks the taking here. evening guys. much very question for

Mindy Grossman

Hi.

Vincent Sinisi

of you some and things more back of the on ad said little of Hey. a give sense that especially all you're of Can impact whether sense maybe seeing? some data saw you you few you're And for some kind a kind most? just mitigation bit of to with on what of that from at, ask have like those the looking things of a do ago the you the the Wanted also about reversed analytics missteps you the mentioned kind us months and of campaign. -- new on

Mindy Grossman

Yes.

bucket analytics. working of we those informing asked as data on back of based member really made going enhanced strategic terms was science, Nick organizational our to a data. how teams marketing We've or into a marketing, some have in things. in And our question are about, restructuring together the I'm through talent few So organization and

a efforts. was accelerated certainly that work those in process, we So but

at The really looked marketing is the second overall. mix we

have assets see use of spots, more areas will still being a you we're see number have that the then lot assets we created the you digital, direct that make of although any example a ECRM television we measuring today have through of so and asset, goes response structured out that, doing that of SEO. social, the also I process in to against new the there particularly sure cetera. ones are the us that So, our and very most et efficacy

you we would look you I for say, -- much now, actually So there. if sophistication have more if year-on-year,

what against taking we're we're So informed we measures feel creating very positive and we're what assets. being and about the those

Vincent Sinisi

gun into your through how at particularly the mission the majority holiday kind strategy kind as just as season. things you is then thing we things in essentially a Okay. fall. of looking comment we kind -- improvement to kind a year, it level? here. just level go have later get course, forward that we Is it But with think season next just in the fair a year, then XXXX next you'll as just say high for Kind that to should more this of plan. of quarter. helpful. first to come your of in some that come blazing of stable continue this the now of toward and had high That's And innovation said as go to Is to out question try the you But out about the holiday of of keep it now a at right

Mindy Grossman

sequential we think XXXX think definitively think on help help be to around have year, the amplify I whether all throughout organization because I are to build way the you'll Well, to improvement us is innovation. efforts, that about an see, efforts, efforts, high-level that going they'd efforts, influencer the focused marketing partnership the to studio efforts we have

been this long we've working a mentioned, I time. on for As

that to a to have in XXXX are help are get We sure to to improve things we those the throughout when efforts make very to both deep way. us do that that going processes also the performance, we there year, certainly effective we're going to most deliver innovation. but But amplify

Vincent Sinisi

much, Okay. luck. All right. Great. and guys of Thanks best very

Mindy Grossman

you. Thank

Nick Hotchkin

you. Thank

Operator

Group. next Our comes question Mark Craig-Hallum from of go Rosenkranz ahead. Capital Please

Mindy Grossman

Hi, Mark.

Mark Rosenkranz

Hi. Good evening for taking thanks my and questions.

or benefit was mentioned tracking on subscriber activity with activity how with new they're and demographic recruits? retention, seen logging You type interesting can recruitment recruitment, the of reach these that food they're increased wondering class learnings type shift of or activity this some you've market tracking. what you perhaps I what any if new

Mindy Grossman

Yes.

the we we're a we find if foods. So at Freestyle, do. what food, component is people recipe -- any shared, since you that really seeing in of with ZeroPoint what tracking out ever what core of at look And came embracing least the we is food

where relative egg, food We've their activity ZeroPoint. a can't it lot in they that is well a activity, I increase in tracked. the diverse is Relative syncing seen that across you as seeing pretty tracked to are that's program health journey. population. is It's of mentioned, an of to So an coming we're is devices. being the and interesting, it really it that from as diverse if number tell I itself the really population of what's one

relative that's really far to to highest running, but the not what energetic the surprisingly, devices, as tend they So walking, goes. as be that

our of our movement to pleased gender marketing audience, mean, I terms that, definitely and more diversity diversity the to see we starting of a influencer In But overall starting movement we lot to efforts, there, with targeted and a diversity do feel of we're are are on ambassador predominantly in our see result expansion starting base. we're as We're –adds has female. also themselves. that see of to side, and the

you'll see it continued And that. relates efforts so, to as

Mark Rosenkranz

just quick follow-up. That’s helpful. And Great. Okay. then

the that XXXX seems enter you into, as recruitment now. part more to you program Or of to? you're mentioned of offering right a pretty give that looking you XXXX Connect like You users X% can build big are that It opportunity Does is groups in retention. opportunity, expand of XXXX? potentially and

Mindy Grossman

the I have people new. groups think, are The it's on relatively mean, whole I engagement getting Connect. formed.

a themselves. it's I those made a of have And who with the has I want people them groups. belong and for matter engage to joining to recognizing just groups. say, like think, And of a people the it difference to I number really really

thing of in is the still people groups. stay in engaged connect, The as well that lot other interesting broader their as a

engagement. So actually additional getting we're

that. monitor So we'll to continue

help elements other engagement. have want the We these to foster that we routes to into connect add

the So we're pleased initial with very response.

Mark Rosenkranz

and my questions here. on of Thanks and Okay. best taking luck summer great. for That’s spring the

Mindy Grossman

you. Thank

Nick Hotchkin

you. Thank

Operator

Badishkanian next ahead. of comes Greg Our Citi. question from Please go

Mindy Grossman

Chris. Hi,

Nick Hotchkin

Chris. Hi,

Spencer Hanus

Greg. This Hanus Spencer guys. actually on is Hi, for

Mindy Grossman

Hi, Spencer.

Spencer Hanus

a Hi. question. You Yes. just had

out you Invite in called XX% purchases. or the -- from recruits in-app Friend just had and a -- XQ just had came you You of

to So company? just the compare curious how of demographics the overall those recruits

Nick Hotchkin

two that why I'm -- in a of Yes. very new a and has Like, attracting recruitment the first the like as channels. Invite bringing channels channels, new you users very highly more time are so tools, with and great to for both is in-app Friend younger men audience. terms mix these success brand, very pleased those of incremental, these of purchase a particularly into terrific been rich brand

Spencer Hanus

still XX achievable Okay, to this to then in you And get terms an we past that X how of you XXXX. you've think there great. think, months talked above do get currently? I And about In trying from, retention. Do member the target in said, year?

Nick Hotchkin

the ramp digital curve heard, of over well the know Connect this milestones great say, WellnessWins, on now, and including X in rewards in you Look, that Yes. we importance as and the usage have same to up we retention mentioned as saw we which working expect call. sort drivers, of

as possible. So get XX months to absolutely, certainly we're shooting to over soon as

Spencer Hanus

Thank Okay. you. Great.

Operator

Our go next Please of ahead. KeyBanc. Edward question comes Yruma from

Edward Yruma

for question. Thanks guys. Hey, taking the

some the branding? the and asses know think guess I the re-branding has of to you how you of I issues the transitioned call to sit of you discussed kind January. least and gone of it kind at and modernize initially the as re-branding. in I first was helping on that now, succeeded it action

Mindy Grossman

the So absolutely. the side, relevancy, the on answer modernization perception, brand

that are in specifically. If it's our the message marketplace, absolutely that you globally, very, and out that the -- measure at very look we products of whether has our consistency the branding

what I talk and so of and people. retention why points about the relevancy proof we're that's offering brand And

needed a little Now was certain more bit people for former and or having our bridge that, said members was whether newer members. really we to whether of it a understand it

I'm metrics, very that done pleased already we very big recognizability, brand have the seeing monitor around what of to of we perception was the and that about the we’re needed brand, continue that, but relevancy. to but So part WW, will understanding do we a improvement because the of

Edward Yruma

emphasized curious you a to improved are if loss component talked work January, you notice maybe when but the in February, trends survey kind of paleo A failed weight from March, may. Watchers. of your in of I maybe joined you Weight those that just Obviously, did attempted consumers, or follow-up, Great. healthy and kind constantly

be people that other think overtime? Thanks. positive you downsides paleo that could time a that some of to do help you the over realized So as for

Mindy Grossman

and Yes. anecdotal why and we because been We particularly that there fact they are come you know if say not they’ve it's go you and for us with before is back and us, are that people just built that know a science it's where that our and what sustainable, because have it back that is our on. work, to will everything program come I our if here learn brand entire I to

efforts to that, we're out matter that why people, And their no communication our very So we you’ll in what the commentary one were. on us And at it is that's to to former campaigns now works. hear continue that. of focused you our before want look you are right if sustainability. about things that And continue support my around speak

Edward Yruma

Great. much so guys. Thanks

Nick Hotchkin

Thank you.

Operator

comes from next of UBS. question Michael go ahead. Our Please Lasser

Mindy Grossman

Hi, Michael.

Michael Lasser

seen Thanks for question. that one, and continue the evening. April? into Hi, my have taking you Mindy. Two; mentioned you in February March improvement Good

Nick Hotchkin

Yes.

Michael Lasser

trends have And that your studio you North there there? such have America X.X%. business two, not -- and business give X.X% digital us studio per was business in seen between in is subscriber fee was divergence your the business and Can up we such we wide digital seen your divergence down reason and a the a why

Nick Hotchkin

Yes.

the the waiting are Given start did studio weakness citing. right in our time been of while to we in pixels you that successful. which of period reflected were and and business, get have year, a place more that We metrics the particularly at promotional that the for get in we’ve was described the

now. realization a better track on are right price We

Michael Lasser

the promotional declining metric had quarters? last on the been less you that pressure five under or were digital that And business, because

Nick Hotchkin

absolutely The was Yes. price versus figure. the side, on realization digital better little a

Michael Lasser

much. Okay. very Thank you

Mindy Grossman

Thank you.

Operator

question-and-answer This concludes Mindy any to I over like CEO, would for remarks. turn closing Grossman conference back session. the our

Mindy Grossman

progress. on Thanks, we everyone. look update our And to continue you forward to

Operator

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

may You disconnect. now

WW International (WW) 2 May 192019 Q1 Earnings call transcript