WW - Earnings call transcript Q2 2021 | WW International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the WW International Second Quarter 2021 Earnings Conference Call. [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 you to everyone for joining us today for WW International's second quarter 2021 conference call. PM our today, second o'clock press issued X reporting release quarter about Eastern we Time a At XXXX results. this regarding results of some on the provide purpose call provide update to The progress. investors a further general details well the as financial company's company's as to is with the is located corporate at corporate.ww.com. press release company's The available on website & Supplemental the Investors in investor corporate Events. company's website materials are the also under available Presentations on section comparable GAAP of release. to directly Reconciliations measures the as available this disclosed press measures call conference financial part non-GAAP on the also are most of

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

now and Mindy. the to call O'Keefe, today's call Joining Mindy will and Hotchkin, Grossman, are turn Amy Nick President CFO. I CEO; COO; over

Mindy Grossman

outside that and be you our impacting geography, as typical category. would cadence to positively the increasingly we timing vary would lift entire to believed health by seasonal of a wellness Good the we restart inspired of Thank afternoon, the you, creating demand Corey. When May, which spoke and journeys everyone. world consumers their reopened, in

expectations. performance strong we quarter digital slowed However, in revenue results did in QX second income against the year-over-year strong our cycled the XXXX. not our digital growth as Therefore operating meet in momentum and

need and search this at acknowledging to moment shift and Weight for Loss recent pause both people With and loss traffic pressure, re-committing shows appears reconnection. that to asking they're consumer a also social for under While to weight the be across are enjoy our sentiment category. their wellness Wellness research the

and appropriately We're Our reset plan updated Since revenue we and financial back-to-school historically a second to outlook about will comprehensive for assume launch the half Day Labor been which back subscribers' operating during Program our for our that Innovation has XXXX. moment. cannot and our are expectations in this our full-year season, reflects we're revised snap favor planning trajectory sentiment implementing post time optimize a performance. At extremely excited Food income.

while developing We agility flexibility are through with we manage and and launch environment evolving the made for to progress on this upcoming year. innovation preparing the continuing later

We our actions million but year-over-year membership end. a ended for and QX retention quarter markets, X.X of with in in end high improvement year-over-year, highlights shortly, the new I'd our adoption of second ended key discuss will subscribers, of X% digital our subscribers major increasing of each growth. and up Digital million, our QX drive subscriber growth with XXX continued like to with We performance from and the first review We X.X slightly the down quarter. further QX detail record helping

growth down QX. in While strong level overall, from it XX% a is

for notable Digital is of geographic slightly be membership. an weight we this are from the community returning modernizing who at QX. Digital in the content approximately and improvement in to our trends new markets, up both XXX coach were and members the the members WW interactive coaching to end and subscribers in-person approximately how loss demand Now unlock generating from quarter subscribers, QX, available QX, five find in program, with Period WW from By up XXX,XXX a pent-up largest deliver experience this journey. Workshop premium XXX,XXX XXX,XXX essential we excitement who ended industry-first and their as of of End to the upgrading end wellness

business now Our has more flexible Workshops a structure. cost

We managing in to all-time retention can new margins. a way of range months. are that high business as volume gross Overall, XX still delivering member an over accommodate scenarios, while of this continues a strong extend

retention each to the temporary Digital since continued retention, February month XX recovering due has nearly strong Workshop is contraction to sequentially In which addition now months’. from improved COVID.

with it seasonality As of focused would retention in on to one we notable and our having the times, provide Achieving continuing grow discussed year. the model of unlock goal business. our are exceed highly have reduce aim subscription we many that

navigating period, internal consumer Turning as only to pandemic. to the margin which the and includes flexibility model gross and and environment. subscription platform of is is our plan past start our cost while of our performance but over business, incorporate an combination structure. fifth months, and creativity our in delivered e-commerce strong our is channel; a business products This of due ago all innovation, the macro dynamic consecutive higher XX year focus, cycled the sales adjusted of extremely digital transformation global the margin with In drove since months our high year strength prior of we we XX% accelerated enhanced demonstrating at an through approximately successfully growth. the factors and uncertain teams or Total e-commerce and the product our low summary, digital we consumer continued quarter our forward a it against solid XX line a were it and app believe for into we the

Nick have to second to over in program about But first, beyond. performance including turn marketing plan to half our optimize in upcoming our and growth WW more in plans discuss we and the comprehensive XXXX position for a will go-forward I forward, performance plans Moving speak innovation and operating our detail. will I XXXX more it shortly.

Nick Hotchkin

on to markets. color global additional like digital you, the some subscribers Thank million. our of X.X ended performance I'd of We quarter with the Mindy. share

expected. this QX lower the was While ends than high

driving loss consumer anticipated. motivation and typical expanded and content and did sign for the Therefore, hoped. investments In April, in data impact our XXX,XXX campaign to DXXX weight Serving spike in and and behavior launched five dive success. uniquely an optimization continued discussed, not we delivering that loss analytics digital seasonal members advance experience June not adapted more satisfaction U.S. Instead a inform and weight the of global market. interactive Mindy markets, marketing pattern. coaching incremental in to approximately had As capabilities Germany, followed in and Canada and France the we of in-app the had did each trends experience way engagement, our and wellness DXXX TV

subscribers the countries the trend on to pandemic reopened U.S. due sign recovery past tight which While low the recruitment continued have yet was workshop not Workshops a the restrictions. be year-over-year, trends is year, significantly pressure to starting over that positive base down is end-of-period of slower under the result in of or as improving. while been have remain

cost the now year, had. so with ever we we have are moving the Over our physical we structure have flexible realigned most footprint, past

or a small We business as highly well new way virtual apps a third-party workshop experience. augmented footprint locations flexible this studio are scalable managing a as with highly by in

XX% this workshops to and We we aim gross business to to plus return optimize have a in initiatives underway margin XXXX. further

XXXX. XX we about U.S. restructuring restructuring QX XXX in our XXX quarter resulting closed of and plans, part of on closed the studios As the in our closed charge $X QX, the during of in top during million

XXXX, we expect reminder, which flexible network to very end pre-COVID. short of As typically a XXX rental These U.S. have the branded XXX, app WW are term, studios from of hourly studio augmented locations a are down in about at third-party by arrangements. the approximately locations, highly

demand in about availability with XXX to ending location environment majority improve a drive. to we lean WW of within the of XX-minute and over the households to the XX% the anticipate of XX% a the the As workshops our with locations U.S. within drive continues such population about U.S. XX-minute year ensuring

a members having COVID We continue virtual a member experience return engagement tool as to the to for retention. out local and be as of the Our workshops workshops enjoy of at necessity both. be which to were even believe beginning powerful workshops virtual continue created valued will many in-person convenience of their members

Consumer be since an our still to just this confident growth are in positioning success app and $XXX we approximately scratching us all with last over into business; re-launched have Products e-commerce the months Finally, in revenue we in channel and the expect e-commerce XXXX, XX for business this integrated seen business surface. opportunity our are XX% million growth year-over-year, Even accelerated about we XXXX. it the we up the

member purchases, products additional offering marketing, marketplace app the assortment into integration partners. X further include: broadened initiatives orders, for to experience, maximizing without repeat week growth enhancements a of driving inventory carrying Our and

member While below flat traffic a shop to year-over-year to than was lower are basis. to sign-ups were relatively studios due back e-commerce consumer sales our our in coming members shopping largely on in the are that in forecast, pleased Total U.S. in product anticipated global we QX,

the of a out public stock On in products many quarter. our lead the supply number challenges being of are during broader macro global chain times, of side, resulted impacting which

second plan actions to a meet course We half. are are performance overall sales addressing to summary, our expect these in growth we while and QX. expectations, in corrective to return not the performance issues e-commerce maximize have did In our clear taking and

XX% gross our is in the digital margin adjusted fixed model. subscription cost to strength our record-high Our and of reductions the structure to testament

first, healthcare to and it turn our in I review detail on to more diabetes like Before focus performance over our to financial reiterate QX market. the and Amy outlook I'd

the opportunity to correlation solution have a a Type discussed have million American diagnosed with unique to focus. a nearly responsibility X diabetes. According provide We we see needs. As diabetes Diabetes U.S. is population's and and this there high alone, clear XX adults area Association, for a particular been diabetes obesity between is the of in and

diabetes, will performance our proven effective it And outlook. financial by plan a turn with Mindy better introducing tailored discuss science-based food our people to with in population now, shortly, serve for we XXXX, and Amy for aim I'll and this program. over to As discuss

Amy O'Keefe

million. our Nick. line. the QX decline anticipated prior nearly We outlook, revenue $XX a for you, challenging workshops Compared the in top was Thank to of quarter year-over-year

plan However, not consumer we sales. our and digital subscription for on deliver product did revenue

XX% revenue subscription down total with subscribers, subscription end subscription subscription million revenue, now with $XX Digital subscribers, QX. in the in or in which of QX X.X by offset million digital double at in nearly the be our XX% basis approximately basis subscribers. result performance workshop QX proved year XX% growth on digital this margin revenue the While of subscribers. up In subscribers currency members is of constant in as XXXX, a XXX partially XX% X% the At prior constant ended $XXX digital declines in currency of expected shift was QX a were increase offset was a X%, end, year-over-year revenue up the year-over-year. environment. digital to on down a strong of QX and from total basis XX% mix we the revenues. subscriber Period currency. outpace a points but XX%, Adjusted base. difficult in We This was decline to of of be prior to digital X% The of million largely End gross constant digital year-over-year increased larger a workshop in to digits year up

planned real the reduction cost in restructuring charge the $X workshop reduction The base timely footprint fixed million the of further taken cost QX actions to deleverage. our to Workshop continued right-size in in quarter. resulting a estate business mitigated Additionally,

In costs, restructuring million. of of $XX the and extinguishment a closed $X.XX. debt $X.XX Incorporating impact extinguishment transaction QX within one-time in resulting refinancing addition, GAAP was EPS our charge debt QX negative

Innovation of decline and we Digital plan line the our with year our is mix of consistent of for Gross up member which of outlook Turning expect with trends, in we in is to our be patterns, expand workshop digital are now by year the approximately more full-year Food into points than year-over-year light revenue. more seasonal we to subscribers Program the prior the from are sign-up year-end, from year of in Consistent expected to to be full current second End the launch QX with full we margin more than XX% QX. current year, practice year half of reinstating for in our in despite continued support planning providing are year. subscribers approach from is At improvement modeling full conservatively the Period half trends expect prior full to revenue and last trends year, up Incorporating billion. expected historical the retention to XXX basis be estimate. guidance. workshop the and offsetting expected outlook, $X.X our approximately XXXX revenue prior

management with that we mentioned, investment and be same fixed initiatives approach maximize cost continue The engagement to Mindy the that digital is investments workshop growth half drive As disciplined and structure every to on revenue revised took cost we back to member technology retention. focused outlook. prioritizing financial in decision evaluating performance applied product to our

charges, now restructuring we full million prior compared million. $XX expense outlook. our expense approximately Excluding to G&A XXXX expect This G&A than million reflects $XXX to year $XXX more to reduction a be of a

our efficiently recruitment we marketing maximize while our addition, will fall investment flexible impact. winter balance In member investing remaining strategies to behind and to continue campaigns to execute with

$XXX consumer $X.XX GAAP reported modeling nearly in adjusted of quarter, down of in interest digits, half. first share under relatively million, the is workshop in $X.XX, G&A is expected an year impact as negative savings XX% offset Marketing which the to last year-over-year is improvement Growth which the the QX, ago operating other expense to low revenue cost up range with year. lower from expected we EPS, of declines a year-over-year revenue $XX lapped $XXX workshop-driven this products of assist one-time is from which per to is the and million. million be digital the is $XX in $XX above the $X.XX refinancing. the to and approximately million expense year be $X.XX we To about and approximately be full initiatives items your reflects to year-over-year single to our business. Note, be We expected expense expect in is range expected a revenues debt an from incorporates benefit decline temporary million in the in from expected the to income flat quarter.

in the $X incur million $X to to savings expect costs cost million one-time initiatives. our We related to restructuring range of G&A

$XX QX rates approximately the our capital is and a ratio priorities; at to net-debt-to-EBITDA $XXX our end million. $XXX Turning we full year revolver. times. We our be of structure undrawn Reflecting million an ended cash quarter now X.X leverage cash the interest interest and expense to on million with in had debt, new expected

which XXXX. year be to is rate. our expect Excluding statutory our P&L, to $XX capitalized driven related of assumes the the closures. restructuring accelerated is $XX million the million changes on expected no to impact Capex, studio depreciation charges primarily current we expected in full by to range rate tax approximately be D&A XX%, including in software to be

X year-end We net by be closer year-end. times ratio expected leverage to to debt our

environment. are and current demand remaining the In addition technology continue the the of will of which the we to growth digital in investments the product continued to resources, impact summary, to we business, mitigate acquire territories. In evaluate actions fuel taking to potential future decisive franchise

that back I expectations turn advancing are beyond. will performance now to are we We with the in opportunities XXXX growth near-term call and confident effectively Mindy. balancing

Mindy Grossman

Amy. Thanks,

our As and greater on key been we on focused retention. elevating clearly which is last member One, priorities four experience, for have we discussed creating driving the XXXX. engagement call,

Second, building content, our base and expand diversify XXX to our by and coaching Digital community. member elevating

a healthcare into Innovation new drive Third, to outcomes. impact preparing Food greater Program and And growth. our audiences fourth, for health and of success science the reach to expanding leveraging leadership XXXX on diabetes have

maximize we in the plan a have the back comprehensive addition, of year. half In developed to performance

initiatives. Our key marketing focus is on executing

and the mindset are consumers a campaign continues our the in the plan program to our who of shows start we marketing resonate weight that to livability research As loss with WW to reinforcing efficacy your while and intend wellness to focusing sustainability goals life enjoy achieve able now allows superior loss We you WW being journey. messaging. to and continue fully our fall weight

creative advertising their sharing will celebrating WW Our fall stories success. member real feature and

all see messages and across You'll across these points owned touch earned paid, channels.

recommit prioritizing most Program and motivate we has with our wellness. been deeply comprehensive thrilled is the Innovation Oprah new we to As and launch as that their Food to the campaign in they about our to excited winter people are health potential prepare involved history

Now, ever, be that partner best help healthiest feels more live to people than WW can that their she live.

maximize across science into Second, systems past re-architected a instill costs further efficacy, Amy efficiency discipline insights data provide only advancing areas our investing discussed, organization analytics member of out over the data and our strong cost will processes finally, in year, and to the enhance to and the across and data we And every capability; member the insights we marketing our growth. that applying engagement behaviors driven culture personalize experience, many and and of as to greater managing taking lifetime are have area operations expand G&A costs engagement tightly; teams our business. our value. We're aspect every applying of of from key drive

to close with Food XXXX our Program Now, I'd like Innovation an on plans. update

are. that as efficacious experience flexible, plan are loss XXXX we Program member create program incorporating created our personalized. as with preferences that previewed we that Program program even and As a combination my and In to and make you you, work will wellness make uniquely weight matches specifically personal our Innovation Where design program next holistic the for by simple, an your confident with program for first sustainable. you that even new onboarding more a that much earlier is more our plan WW enhanced engaging our will customizable unique livable, the Food will and Food will

why competitive credibility and is and key is members WW. science-based wellness Our leadership advantage trust and and a weight our loss

weight Program, Food wellbeing. which acceptability, highly study encouraged well our showed months University impressive data three the by from are and consumer in new as improvements We as of Connecticut livability of

WW with offering essential Food is for part XXXX an dedicated diabetes. designed a specifically upcoming people Program of Our launching

overall this Innovation they indicate individualized who of diabetes tailored an Food their will needs. food food have the As launch Program year part plan receive later members for

a and with currently food clinical new satisfied testing underway. our In people diabetes diabetes. We testing consumer program with our and our program been trial are also highly well to conducting tailoring pilot, participants its is have

Importantly, the a XXXX Food program. offering Innovation diabetes just comprehensive a Program is of phase WW first

We have in support XXXX well-executed Across in a believe for XXXX. of of XX% statistics taking stone actions features a could about on driver adults A a business the significant effort the comprehensive the weight who will this half UK, more. encompassing the that shortage the this gained to XX the In improve will broader specific found nearly are to consumer pandemic. since pound our X,XXX need. sheltered a trajectory no remain express England year. average and the mean weighed a that letter American research plus Public product putting XXXX in in in multi-year XX% said functional every Clearly, days, was XXXX on XX Journal more be found critical half survey pounds or Americans second in is that behind have There launch of in during a I the on place and we and putting XXXX Innovation gain March content weight robust member that on a they've stone most Health and and roadmap March innovation which beyond. priorities seen. a half than Medicine published We profitable growth we and Food recruitment executing Program near-term of focused drive of stories

is everyone's WW than clear of it and personal next individual's needs more vary by greatly timing highly ever. the they is world normal and the While that situation market

journey. begin loss one to there program and and motivation number guidance, recommended support we they the weight As weight will providing doctor their loss wellness whenever ready are be

recruitment are earlier seasonal So following member in trends the I more anticipated highlight we want points: following pattern this year. Overall a than closing, typical to

from We benefit subscription-based flexible margins. continue strong gross digital to our model with

of we amongst We members. are workshops the high see at Retention as demonstrating engagement increase in an seeing our interest offering. as strong the relevance workshop economy reopens, is all-time our

of our underway year Program are excited diabetes this We Food our in our of preparations are launch particularly well and second Innovation expand managing we for and vision questions. Thanks are the offering. cost half for structure, and happy developing take about XXXX we today Overall, and global are we impact creation now are on our to we growth. and joining our your value confident will deliver for us the

Operator

question ahead. go is Wissink [Operator Instructions] Please Jefferies. from first The Steph of

StephWissink

come seeing just not to with Thank regarding it's the I remarks back afternoon, your us a might wellness WW, the issue other you're opening of that attention overall that you. into broad maybe of Good but signal macro or everyone. comment fatigue more Mindy, overall a to points data wellness? to level just just level some and related on wanted give that

Mindy Grossman

context were into the me last wellness and about continuing I'll we to want of significant Sure, QX. QX, of give did and comping you particularly answer kind feeling a on bullish we in growth significant saw that why up momentum world from degree some what the further as across QX. was which we but growth, people saw we expected, conversation more the happened that, we were their go had very The that weight was trend opening let time to and going to incentivize we not journey. with that digital would That double-digit

their starting did know, to did earlier point wanted done than that weight on and that, people the our in largest again program, in As work. we qualitative across particularly focus sentiment my America significant a January immediately quarter in quantitative is that and countries. market months. in What going We markets, we first enjoyment with to many do learn People you more out. North had into in and from particularly consumer summer we that coming loss multiple U.S.

And points. suppression in loss have the have growth other the overall we Additionally, seen category. everything weight following of points trends, from we data been data

a enable for our original the that So achieve combination those expectations did of quarter. not things to it's us

Nick Hotchkin

it prevalence as sure join only be exactly drive but Yes the you can't given the it's to to thing, - starts the campaign is fall September like be back, does so I’d thing weight add there Mindy, X We with program. of to pandemic, balance our feel heard dislocation. in interest the only when our ready we'll that remarks, in look gain temporary a like going our

StephWissink

helpful. And fall that's year? marketing about are the or maybe you forward the Do carrying Okay, contemplated exiting effectiveness what's for that just quarter? to and second Amy, guidance half the campaign a the that, current as you you follow-up that run second think then in the of rate saw the

Amy O'Keefe

Yes, if approach. we look performance a to in of it Clearly, more the was we current you back particularly the at guidance, spread doing felt everything take growth we're conservative and digital our appropriate half. - can our to maximize

As We September November strongly in we've as innovation campaign our about marketing coming of launches a speak you it about heard mentioned our X. big starting after with our launch feel out as campaigns well Christmas. our lot me

combination things the but be accelerate given trying we what growth, feel in obviously, we potential we those current So to the have three in of guidance appropriate. QX the to experienced we're

Mindy Grossman

period historic follows more trend. our our that guidance a curve subscriber And of end then seasonal reflects specifically

as more I so you'll a back conservative we're base cost half and to approach the at find changes And making our think looking accordingly it's appropriate. that and

Operator

is UBS. next of Michael go Lasser The from ahead. question Please

Michael Lasser

lot question. a my taking Thanks for

They're So have stuck been out. based, home that's at it the people is, to excited are like they happening dynamic seems get home.

are in long U.S. are to dynamic? point think of the world short going on through and wellness. are around provide for - And those their X, are encouragement say, be some the as or you actually or thing wave so think and that Y, excited How a - markets type could will evidence hey, they're confidence this last that last? the to go a you level focus differences to that's trend whether going which So you with that Z to us as seeing any do regional not

Mindy Grossman

maximizing a a of Yes, going fall after up expect. our winter. before, about But trying be let normally curve the market to you fall all bit clearly can seasonality, in resurge we're you more into that the a the efforts guidance, season give the Labor just perspective, season. we're seasonal Nick on would the we appropriate differentiation. I Day into putting and talk typically to normal going but little kind mentioned I That's as strategic into see

Nick Hotchkin

terms a positive different. Yes, in the say are until the in of workshops, a early international June. than lot The effectively trends being similar on main the lockdown around you'd trends countries with digital expect particularly difference more in United of differentiation, market - our has States trends world as our in been

As we sure great Michael, We will forward Back-to-school back. to look definitely a that you whether company. moment question, has exactly can't do strong we've got season has the with Innovation coming been moment members Plan Food and to this bounce workshop boats bring all historically and Innovation. digital has Plan the know be a that typically lifted and been a for a to it lapsed good Food back brand

Michael Lasser

the being going further we new the focused wellness. as I XXXX, you're you're to more point out, food consumer look reopening bit and the have maybe to into on innovation it's but going little that a towards early, know And out at have

your see will that expect higher getting with than lead be time way some can obstacles we Are that any more year challenges longer-lasting have have that performance nicely there you're that is your you XXXX under You'll belt? strategies of face? a your going will these XXXX? to in to to Is

Mindy Grossman

strength. Michael we entered expectation our that with tremendous having XXXX launched if and you myWW would be recall,

digital QX time on business, focused at our spend look amount general. QX workshop subscription our in business, challenges XXXX of to then and performance the everything significant COVID even particularly challenges was continue on technology, a to that and really we from year-on-year rightsizing XXXX, the If QX Obviously, just you focus strong in some et cetera. very there; of few the last with weeks QX shutdown for in

opportunity feel we XXXX that is achieve. we to So certainly the feel business trajectory the has back to the an opportunity, get in to that

Amy O'Keefe

the some put mentioned Michael, more in the to that Innovation QX Food to Mindy QX lift even And on color launch.

back over go subscribers period of a XX%, of lifted Freestyle subscribers you end If to XXXX, end by example, XX%. by lifted for little period almost SmartPoints

Program Innovation Food excited and really of we're the so about XXXX And growth. the impact

Operator

Markets. The Yruma next of go ahead. Capital from is KeyBanc Edward question Please

Edward Yruma

for the you afternoon consumer first, - to the taking and program. thanks the I digitally on a the kind studios? that Are are health lot know question know questions. in in bigger any And look people the I seeing you and positivity. have the which aesthetics. for changes in seen of a And back guess picture or think I there's body changing you reasons maybe lot then bigger particular, seeing frequency are - re-entering on as every Good a maybe years of that they're you only we've interest trends coming Thanks. different comes whether by in loss? any of many of - consumers that any interval? the years couple there return in are lose a changes picture terms at over or weight you physical that they're of Do of discussion weight

Mindy Grossman

Sure. to both. I'll talk them

member because we're studio of In we that community. of studios members profile, want members see they terms that is mix to what didn't - huge digital. going our that want this coming What they studio now of back is seeing returning influx coach,

are in year particular we're things seeing strong also influx What So in back, coming Innovation very see, Food note lapsed. that's tend the to we and the more where trend a of obviously open. I think studios to of a important Program in is markets

in in in studio new. both quarter, the digital - XXXX did we had we in have So, subscription the and if lapsed not growth well growth only strong you as recall strong

is a digital of there. and member the higher opportunity which vertical, we more third in upgrading that see base the members the launch I'd obviously are fulsome we thing of say seeing well DXXX diversification price as at point. as to So our coming with

benefit it's us. So a to

body the is And that people what think, ecosystem the like message side. say clear to the We what side, wellness the holistic weigh. health really that be your incorporating realize what that's would we're to us biggest movement. wanted I approach it but marketplace. our loss, So healthy move member people and very very people they probably to on a of determine positivity to able full out point, to I should definitely say, build from significant tell carried be. And proponents to was is don't you? mean positivity don't because does our they what is, a body certainly We to in for of weight to in

Operator

of Please Lauren Schenk go is Morgan question next ahead. Stanley. The from

Unidentified Analyst

for on Carter] Lauren. [Nathan is This

ones Just me. two quick from

rate that part, Solutions able On extent give recruitment kind what to to higher business? the about the second are that back cyclically Health marketing And half potential I had talked a potentially you then first of expecting the you half? you boost on update headwind of a you. was still previously Thank And to to environment being within Are subscribers. the in a know any counter quarter? kind

Mindy Grossman

Can you one more time? question marketing repeat the

Unidentified Analyst

from from potential Yes, see marketing, quarter? an perspective in any headwinds efficiency higher the so did on just you the rates

Mindy Grossman

years of amount and platform a have there over of some certain So we in done spend marketing marketing pressures. channels across the on in Clearly, We've work diversified channels. are the efficacy our tremendous past working really spend. also our

see marketing you'll particular, campaign in And platforms. Nick on. focused to Health across I'll really we that what fall in our talk Solutions. that's focus let So

Nick Hotchkin

opportunities Adam look, long-term and on that and growth very the delivering focused very and growth. our Kaufman diabetes are Yes, team bullish on healthcare we're

health for plan particularly the Plan forward has our needs market. entry potential aggregator able as sales diabetes people is there for the you identify with physician Food very serving Innovation tandem with diabetes their into a about considering such us a partnerships And being with our suits In our referral, segment. get that et step a wonderful in and cetera. tailored heard as individual themselves we to important food CVS, that excited On solutions side, growth this are huge

Operator

The question English Goldman ahead. is Please from next go of Sachs. Jason

Jason English

talked SlimFast banner questions, is the year I which like with and quick - past, similar. now last in foods at consistently is the A the sales Mindy and know from addressable if it by biggest looked and this sales competition of The me implies right good in you've I Thanks XXXX? is first, look team, DIY nature source couple up evening. we we've above having a competition. And is slotting consumer, Atkins about biggest opportunity for handedly at biggest is your time said looked your packaged - market

on it and view loss in it that because a is suggests consumer versus the doesn't of weight just view view. a a consumer right they've that a I loss the with So myopic of bit with able taken basis. what now? perspective on you're there of have be engaged maybe a movement - disengaged weight Love to sounds data may more perhaps in instead movement or like is you saying the a that be on hear seeing weigh suggest Would lack you've broader market? DIY love we're holistic to weight loss what towards DIY you hear how side put of to

Mindy Grossman

say, would Well, I combination. it's a

lose We right? don't changing, that's of healthy that have trying biggest themselves. get competition think consumers always been the company it, our we to see history weight the I is and That whenever said We've weight we the competition, world is always talked in said had. - DIY the experience paid the someone and in directly about competition. digital is competition that competition less competition particularly category is

to being is addition some definitely weight of we're the lockdown. immediate of we out all for kind COVID macro we around saw loss That's pressures true, of So saying desire that, what saw. coming that specifically what kind in

Jason English

weight? focused does the weight. It's consumers losing focused it challenge to on like service paying a getting bigger look on subscription-based getting them not lose for is But

Mindy Grossman

No, I combination. a think it's

Jason English

maybe, Maybe, be. it might

of the what, XX% think I is and consumer DIY it's the pay. that X%

compared it bring if those. lot not this putting but So this you expected product to I think which maybe program pretty it know really SmartPoints So it Freestyle, underestimating and product upgrade Amy could a were same is either on to that sweeping energy be, you're the big program I'm actually playing way, I field as and of changes? mentioned

color support give you're some two like we what the saw us program big give going changes? you us those the energy more can context to So that's is magnitude, and kind branding, around what the from of

Mindy Grossman

going a add was I'm significant. as myWW to and third, actually Yes,

scientific our circumstance, that innovation this One we our in constantly iterating and do is around personalized. definitively and one more more on more of livable, that is work of greatest the things assets efficacious the program to definitely it make

that person a than before we've We're strong So having we're that's ahead in very clinical powerful, years think I message. with further been our personalized pleased of their program, mentioned very WW trials. that's very every past.

tell able our to the launch messaging, here strategies couldn’t myWW. craft of and - my enthusiasm, our Freestyle being So for I launch was and

is a this plan that launch So we on amplifying significantly.

Operator

Please The next Lane of is from Research. question Doug go ahead. Lane

Doug Lane

drill far How it? expectations? a have more you heading on do quarters into couple you performing horizon I see learned what into little Can on then to And bit a the Digital relative that is so of What XXX down the changes XXXX? for effort?

Mindy Grossman

very we're enthused about so DXXX. opportunity Yes, the

younger that and of If you recall, and to very go the content coaching this specifically this specifically vertical after what to seeing. audience idea focus are we on reason community created very we new is on-demand

a launched obviously with that vertical of entirely very new coaches example coaches an been new cohort Now, traditional that's very that's in in every our different field. external more for what much facing market the

that see we're everything elevating So teams so to after engagement, But really which are very seeing the the keep vertical and positive. to-date to very to we teams we relative is aggressively content audience. the ready go product to new the honing working keep more have be market continuing with been can really to experience, closely

Nick Hotchkin

first-time members I'd So, are DXXX Millennials. of XX% say just about

So it's really attracting a broader audience.

Doug Lane

sorry. it expectations? I’m is but there stepped Nick, up on you Okay to living I

Nick Hotchkin

join Yes, in be - have XXX,XXX you said thrilled yes, have if December, subscribers. or as XX% in would and us, terms Millennials attracting younger of it to first-time would I DXXX

Operator

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

Mindy Grossman

everyone. you Thank

As in we today, performance have very are And positioning addition, in for the you've ourselves half second year. to ensure in comprehensive we of the a that heard plan optimize XXXX. growth

take of the to X be area. that in what amplified is campaign in September we will fall engagement launched Our across seasonal know advantage all platforms

are updated on their But joining coaching to flexible momentum Program members in I'd community Innovation and confident important Allowing away. has new is seeing gross launch more expand. in Studio us which growth for to accelerating we look provide in our to our and Food We're our new our year. work, excited position their you the performance our business throughout you with year-over-year margins. more a digital a again flexible those even to XX progress teams recruitment past their essential Retention subscription-based delivering certainly like cost to the member today ways agility, world transformation I to improved now take strong structure. and model focus, over also to thank around the things the digital which us forward think will the us certainly value continues certainly we're been delivering and And are significantly has so, DXXX for and thank keeping months. for November, drive XXXX. We successful in

Operator

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

You may now disconnect.

WW International (WW) 11 Aug 212021 Q2 Earnings call transcript