WW - Earnings call transcript Q1 2024 | WW International, Inc.

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Operator

Good day, and welcome to the WeightWatchers International's First Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Corey Kinger, Investor Relations. Please go ahead.

Corey Kinger

Thank you, everyone, for joining us today for WW International's First Quarter 2024 Conference Call. p.m. X:XX about At we results. press today, first reporting quarter XXXX issued Time release a our Eastern of call results, purpose the details to The this a company's regarding some investors provide the further progress. with company's update financial general as as is well on to provide The release corporate.www.com. on corporate website the press company's available at is section also Events. and are materials company's investor Presentations on the corporate under website Supplemental available in the Investors available financial as call non-GAAP of to this the measures measures are comparable directly of release. also Reconciliations press conference GAAP part the disclosed most on

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

and Stark, Sima. I CFO. Heather CEO; will the Sistani, Sima to are call turn call over today's Joining now

Sima Sistani

to to strong everyone, and that start. Good afternoon, for off us I'm Thanks, you a announce Corey. joining today. WeightWatchers is thank proud

commitments results. with First, both we top QX delivered bottom-line on our and

XX,XXX quarter, of subscribers. of reflected in services succeeding our prior of the our first clinical are ahead as Second, end by of clinical subscribers the into at guidance XX,XXX we expansion

have growth medications. demand since announced we Our has nearly March this the environment undergone for of acquisition Xx now tremendous varying business GLP-X subscribers constraints supply having XXXX, an the of and we in grown in over the Sequence clinical year, past business

improvements improvement the yielding retention. made a tangible Third, programs core and are engagement in to our

a For its member's since during example, our the hitting by engagement tracking weight up their defined and weight level with program progress days continues positively and and food year-over-year, X% XX highest approximately on first XXXX. activation rate, a to trend QX metric loss

activated reminder, activation a is are attrition rate rate a over As successful matters the nonactivated because long half on members and of term. roughly WeightWatchers more they member,

is delivered improved And XX plan We retention, the than quarter, particularly with another newer average higher focus for are XX%. user among fourth, adjusted cohorts months. the subscriber gross impressive record We now paying slightly off. cost discipline margin our seeing on on an

company on transforming So, the future, in guidance. by profitable in on our short, the and we confident while full are returning focusing year business the model to plan remain executing for our we growth

to to needed. our offerings members million on must evolve to soft, been with new basis, our depending comes is intentional our the health spend has performance coaching shift the and this And having types and broader between same for time, population WeightWatchers members, is features sign-up to with to approach. in membership behavior recent change of The distinct offering community. But a we advantage member the more satisfaction support, as due serve future and is campaign, when foundational introducing an longevity WeightWatchers and solutions. future. have in success. for a it ability While level X out an accountability weight of we move in and support community at enabling our much found and building upcoming key on a the and The add marketing

further mission will February, our on and the growth, on the initiatives expansion opportunities offerings our expanding give options. more payment in care, model, catalyze last access, in we to expanding our transform in and deliver people, earnings make discussed more accessible as project to health. are focused leader As business weight global us our our Together, expanding critical call in

Turning pillars the project expansion. X to of

care. expanding First,

and can weight health on the access care expanding We their are specific on members that options based enhancing needs. focused

and in-app Our the a trusted behavioral to number XXXX program community new in rolling including new simplify members, product is food and to improvements the digital to we decisions, foundation, have out enhance spaces. of experience features greater gamification,

expanding access. Second,

DXC our we leadership on future WeightWatchers increased benefit, recognition from volume confident for strategy. BXBXC of increasingly both we time, importance wins plan Over new of Recent health a offering. weight the this take and clinic the growing a business business about making in will a in core program our As business. think to our covered conversations us model critical substantially of us and and it, our make behavioral and

our and brand, Our experience, payers with employers our and all science, spectrum resonate approach are that key consumer-centric full differentiators alike.

with We existing large large are active carriers, in discussions and also national customers. talks are we in with

it momentum payment time, motion expansion for years ahead. is to huge, long this options. the we driver represents critical third, in WeightWatchers growth this has the of to And a and While a and lead channel believe access be expanding

ARPU. larger our goal whenever access use incremental consumer. pool and their of insurance Our thereby allow the off members possible, provides opportunity This cost burden drive greater to for services members to taking greater is the a to

registered have more There capability in dietitians, few to forward short, retention model our and to members will insurance about also to a WeightWatchers are more a is in look potential covered expansion time. be offering WeightWatchers sign-ups, make impact to process people. We business WeightWatchers services U.S. directly consultations for over lot Over we to claims and the the to the insurance its eligible XXXX. believe available to months, enthusiastic next positive making In we will the accessible project and transform

income stronger to opportunities discuss addition Heather are actions company to better now our growth, In the our will to turn financial the over XXXX call operating I and ahead. positioned confident returning capture to outlook. am adjusted to making business and our the I results

Heather Stark

Sima. Thanks,

Subscription XXXX included and growth subscribers, on all comparisons QX that our we financial are in workshops declined shift ended continue Note year-over-year the to mix to by million. versus constant offerings clinical first prior year-over-year, first million $XXX results. digital a lower-priced sign-ups mix higher Revenue encouraged business. basis. initial year be by XX,XXX currency Turning to from of X% subscribers. totaled We commitment WeightWatchers X a with periods, subscribers quarter This of driven behavioral subscriptions revenues $XXX million our within and for lower the quarter.

XX.X% and level trend up to gross from Adjusted core XX.X% the and reflecting another record high our sign-up in million the XXXX. offset our $XX driven of the versus With revenue. year. fixed in Primarily mix to by QX spend the cost of partially subscriber program This clinical was dedicated prior base actions lower shift. by was margin reduce

was GAAP totaling rights believe company's the million, tax Income to items effective Adjusted a $X net noncash reflecting of spend. franchise net was prior acquired inclusion to an higher to increase up In related negative incorporates period, up charges. which start $XX factors. impacting of the negative nonworking due were $X an charges for impact margin business. for was are reflecting in recorded prior versus We the million average operating impairments market year, XXXX. including and in X% quarter year-over-year, valuation clinical plans. expenses the driven by loss noncash small partially that million the right year prior fiscal EPS bundles. our advertising clinical high loss year cost quarter charges million. impairment annual $XX $XXX which the negatively not spend, driven balances capital, primarily approximately loss subscription for X% and XXXX expenses expense $X.XX, was restructuring totaled tax impacted reflected company's of allowance full These spend primarily by track of product on Restructuring the offset Shifting million. weighted including lower of by reflected comparability, were by addition, new the valuation impact our the We we million the and rate, the was and to year impairment gross in outlook. charges consumer ago Adjusted Marketing online year pre-tax our in in of promotional G&A allowance, advertising quarter of was offering $XX TV unusually guidance. of the

encouraging plans for and marketing As map LTV Sima more the the and efficiently perspective. we're data, seeing mentioned, are product At rest and road retention the from cost of year. we're enthusiastic our operating about a time, same

We're expansion revenue. stable leverage offerings total and We product retention with we year-over-year improvements, see order to anticipate longer-term and beginning LTV continue to XXXX. in subscription to to in LTV continue maximize commitment recent

care to in digits flat million. essential seen over expect improve new subscribers to down guidance, in To XXXX end XXX,XXX of total doubling least we total as the expect with WeightWatchers While our time, decline year subscriber the the the per in strategic green revenue Sima expand with with range behavioral We're at to including million measured end the nearly QX quarters. to LTV shoots of execute starting behavioral the the despite we the year paid the XXX,XXX, is in on than of services. versus still in subscribers. end are We've so expanding XXXX. the from steep mid-single workshop prior a more subscribers Clinical addition premium end through XX% week to XXXX. Within to $X.X in year $X initiatives expectation be maintaining add-on our to behavioral expected subscriber X of to ARPU subscribers it highlighted, range ARPU

expect which million year continue our a from be to continue and margin $XXX revenue, clinical high-margin and expect XXXX. margin we revenue licensing million. Adjusted subscriber We is XX% in between actions. the $XXX $XXX of full cost approximately gross full increase Other million be reflects gross $XX in expected fixed this, shift This million. expected Within total contribute XX% to million reflecting primarily $XXX to year, read-through be XXXX, year-over-year. is a revenue adjusted modest to mix revenue WeightWatchers up to up continued is to business in for of to to

flat and expect business. million and to reflecting is restructuring lower and to $XXX adjusted discipline, between slightly million cost We XXXX our BXB continue efforts due be $XXX and strategic expand and expense be to year, G&A offering full marketing which spend roughly for XXXX year investment clinical to to the our with our than

of to expect $XXX quarter and we additional million between be includes $XXX million, compared operating to and adjusted Therefore, between one XXXX. million adjusted be and expenses clinical $XXX income million. XXXX to $XXX Additionally, EBITDA

year, impairment up earlier. million, allowance full valuation be mentioned we income and to the the tax impacted For by expense expect to $X

to Excluding of the income of to impairments, we an up continue $XX million. benefit tax impact and valuation expect the allowance

We expect the year. million and for cash taxes million $XX $XX to be between

the expected small full reminder, loss tax year company's tax a XXXX impacts As significant quarterly any or the to income the pretax in given result in in reflected pretax updates can fiscal guidance, expense income results. loss

cash million Turning to approximately ended capital of We revolver. plus structure our cash $XX flows. an undrawn and with QX

of As and a balance cash with in-year the modestly needs, through including to sufficient year position With year-over-year. related in plus revolving to then cash our we needs acquisition restructuring second increase we our higher of our half our liquidity reminder, believe the expected have to operations capital are the and increased first our is debt. Cash cash to facility, the cash servicing for anniversary from our expected outlays payment than actions credit XXXX working sequence marketing, year. compensation timing, due the much build

restructuring, restructuring to year restructuring plan. for As million payments XXXX at approximately expense of XXXX expiration expected expect of with the million cash we by our QX, start the associated approximately a reminder, Full largely interest XXXX XXXX. and the included include increase payments $XX to $XXX of $XXX $XX million between the and million with year-over-year be hedge driven is million of $XXX

further primarily we software, at capitalized current new million the months Depreciation due this $XX lower XX be to adjusted we million is quarters year-end still be before EBITDA EBITDA ratio to is in to With range. CapEx, ratio and showing in outlook, the debt due our in Given expected to which market X.Xx. At $XX decided XXXX coming at the range. to $XX to conditions, add not amortization increase is to expect have time. our XXXX. our QX, levels was year-over-year to leverage improvement net trailing hedges leverage million expected

on comfortable with until time attractive profile, we our which debt we reminder, XXXX deliver gives no a As are and liquidity us strategy. maturities and very terms XXXX, with our ample transformation to have

for our We will the opportunistically In We strategically future. to reduce to WeightWatchers continue summary, are efficiently our and are on believe terms ratio operating returning on leverage I'll believe evaluate initiatives, and beneficial. to back executing positioning we we revenue more the options strategically we with call to of turn now Sima. expansion clinic XXXX scaling income growth year will operating the business. by and drive momentum another in are

Sima Sistani

are is of critical the key sequence and Thanks, We've Heather. with product and XXXX integration progress and importance. lot execution season years on opportunities. a significant brand winter learned XXXX and of made during paramount the

been same to and moving rapidly learnings marketing time, uniquely we is incorporate dominate road in payer space. map WeightWatchers At the the plans. our have We positioned product those BXB into to and believe

expect area will perspective financial this business meaningfully a XXXX We and the more contribute of in beyond. from

employers are health in need unlock in start winning to the We to market weight have conviction long-term, share the that and for payers and today. this medium we

Teladoc recently, at Donna product product Fix like Health, to to organization. she multiproduct Donna the Teladoc, portfolio and Boyer, up, from Chief positions led a at Officer Stitch our Product strategic Most the to where Chief Product new held Prior welcome we Officer WeightWatchers. shift was Donna a single to Airbnb. Before would leadership wrap I

can as BXB be execution one proposition team Our IRL, Thanks membership core, joining strong clinic. and product a and only Donna for I is right ensure us. confident value the am to cohesive executing leader that a across as

We are to take happy now your questions.

Operator

the question-and-answer now will begin We [Operator session. Instructions].

Our Jack comes with question Wallace first Guggenheim. from

Jack Wallace

start really on nice a to year. the Congrats

advertising bit particularly in just ask quarter, some pricing, competitive appear Just really enter market a you the inventory with aggressive expensive was with about be how quarter little well terms particularly advertising first into the you're seeing and to as in light conditions behavior. wanted competitive we would behavior, as as in to what of second

Sima Sistani

so -- we you. why have those Yes, the of funnel we're movements. marketing align in of media that's business concerned thank had cost and make of we the in can And general, That up. we our a great efficient. not Jack, improve in in softness seen an more that of think And to dollars milestones, into some accounts overly that. the that performance have general, out but going spent April have types function intentional which I seen base shift for May April, about was in money obviously we and more marketing the

year we're outlook, clinical of it's really full So, confident in also, and our course, how scaling. excited business subscription our and about

Jack Wallace

the in this got be clinical business. Excellent. increased your That's helpful. remarks And that you later promoting there'll Oprah then focus prepared point, to with on that mentioned special the an we've the last Obviously, there any the you'd Are emphasis disclose towards other terms percentage of clinical points around like to and month. in maybe of clinical dedicated being today of your marketing strategy? strategy budget the

Sima Sistani

Right.

brand conversion the what is That and can are overall business I And a to seeing within the do tested from to we been clinic. one years. program, we we membership doctor-recommended health had clinically is make core marketing XX noted to WeightWatchers, around the able weight are most more #X benefit acquisition. that, by program as strategy of is Also, think efficient strategy. previously, we that marketing our and So, has uniquely that's a that a speaking for

when behooves and we us to towards terms our core more not go it approach database And aggressive able So, in a a continue utilize strategy our is see that the of seeing lot strategy. our of overall we're providing to business. performance take between mention market, to we're our efficiency this lapse in that opportunities how to we strategy to nonpaid acquisition

Operator

next with Stanley. Nathan The Morgan comes from question Feather

Nathaniel Feather

timing, impact the you you're of it kind in marketing expected confidence marketing detail give year. does that So, some costs, that? marketing Because more Is launching? And the then through primarily the imply that end sub on on campaign, stuff. can campaign behavioral of year that acceleration guide the you

Sima Sistani

we the But can membership. not with that Yes. a I a were we're at announced as learned different different about a event Oprah. next share in market one week we winter mean, point. from the lot there's ways ready general, of the the to all And of our lot between coming obviously, that we season -- confusing solutions. that we've market lot it's to this But with

membership forward, moving it's all about so, to WeightWatchers. And one come

Our various people increase based throughout personalization the and of we're its program that's level their life stages. care can and for support on needed, in there

Nathaniel Feather

Great. we XQ, the guide helpful. year sub That's then the should lead clinical year? the come be key beat guess, think to rate that the the about guide. and for you of or puts full high if And how maintained end I at the could that takes in

Sima Sistani

Yes.

mentioned, really if our that revenue follow even and end we're and of guidance, we at So, in subscriber as adjusted the the confident you OI. bottom

we intentional made within shifts as market what weight strategy. maximize seeing campaign to were had we that some as health the on marketing based well So, in

see throughout So yes, we some the acceleration do year. expect to moving

Operator

And ahead. the comes next question D.A. Bolton with Please go Davidson. Linda from

Linda Bolton-Weiser

Yes.

marketing to strategy last this talked the referred which about you of So, you spend, intentional shifting on call.

weaker shift Given growth that would even or just expectations? the is it of marketing had that -- kind member than expected, was what you line? the your planned new you is how Given to in to strategy it relative have

Heather Stark

So, thanks for question. the

comments see Looking lower that to referencing. made, the we new the is we're related in did and subscribers growth in marketing we this at April, shift

that up and our better the next shifted on, to we event we're with activities the specifically So, then with week starting Sima into that further executing is the marketing spend campaign referencing. marketing line

Linda Bolton-Weiser

plan? is expected that have given in with So, would the line what marketing you

Heather Stark

shifted May we different spoke it So, when last based what timing execution. no, we February, the a in it's that on our and timing event than -- is we expected of

Linda Bolton-Weiser

the second saw here. being shoots in I mid-single the for said quarter? of green you saw You year, ARPU in then of you And green you digit terms said the Okay. guess, down improvement, shoots

to the to each at up the the down you it will there point saying year? be be inflect year-over-year? will point in year, actually which flat a Or during ARPU So, are is through

Heather Stark

So, subscriber ARPU the referenced, yes, so the that's base. that total we've

if an about easier subscriber to one talk I to So, it's at example, digital speak a just time. as a

mix I in was we with proportionately long-term that's commitments. think about as in reference is And business, of And shoots stabilizing. in 'XX's to subscribers commitment fact, to do even 'XX. the versus more the green membership. this QX stable QX see ARPU We recur-bill the core and

exiting So, long-term had QX. members exiting long-term XX% whereas of we commitment in commitment XX% and about QX,

we execute made Sima members comments add So, and we expect further expanding the for to expand plans the on specific see we to ARPU clinical call, services time, as over to expect that the on it X U.S. in do all

Linda Bolton-Weiser

on clinical Okay. together, And you promotions originally having subscribers? the to planned? just to line those subscribers? are those side, promotions with you Or what clinical are doing promotion And you more do are get in

Heather Stark

plans I think operate long-term look But being commitment And talk we on to we of you for for about membership. promotions, all promotional marketing execution subscribers. plans started have across they're line in long-term focused Sima activity how commitment our our say the when spoke clinical doing already at with one membership. our I would subscribers. And we

Linda Bolton-Weiser

you were would EBITDA Like access revolver? revolver? then that about drop to to if can would your And lose conditions trigger certain your having what not Okay. access talk just level? Or under you to a what to

Heather Stark

trigger there's revolver. to leaving the on no No, further

to the $XX So, million have we revolver. access of

Operator

Lasser Michael from comes question next with The UBS.

Henry Carr

for Henry Michael Lasser. is This Carr

is the closure meeting out a and address so sub it sent does how of this? recently metric segment's noting WeightWatchers is frustration WeightWatchers its why locations, this the understands plan with former pressure? the to physical of the members letter So, many much And under members that to

Sima Sistani

question. the for Henry, Thanks,

move imagine. a that's some So, flexible transitioned several more And the years close as to been had members, you impacted out pressure the and now we and as at can yes, workshop businesses have model, to locations. to of business for under has

community we person believe really a best is be IRL. are in so, to And that committed I still the way to still being together.

giving them group that to connected they for than to workshop a the the would have that like virtual in new for business, is up that new opportunity a And location to location allow chats them open to us used some a ways further things they we of be. let stay groups Creating specific location letter to know workshop suggest we meetings, that case in drive their were committed to if their instance, ad were and us outlined coach original opening that the affinity-based space. through

we're still that's something of we're committed And excited those those sentiment about so, communications. from members seeing doing, and extremely to receiving the that some

Henry Carr

I as to follow-up, to continues a competitive ask as wanted the get more intense. And landscape more just and

a to to think large members going this recently play And access competitive I GLP-X into is offer marketplace to change how landscape how attract to your intensifying when does promotional strategy? WeightWatchers warehouse just a memberships retailer announced is off I with going operative move ability guess, promotional new the memberships. and this strategy? of -- how the to we

Sima Sistani

Right.

a our say would about about posture business supply the really you've focus constraints, the part clinic acquisition, right that us that still which now I cautious business. seeing. of retention is, with seen our not So, more given probably we're it's it's certainly still take And on

of marketing us as really to a support supply coming constraints. so, And we the and includes to People significant important plan, comprehensive those is as subscription to insurance medications. get a portion to only that which it's dedicated And subscription, ability that care are because their effort for for powerful of motion a us. haven't

the to this we're on thoughtfully business And us. medications and time. if going not reflects so, are And poorly that that over there, grow means

out I'm with what's coming about for and member still insured. some XX% the regard to market, believe, happy see insured to get I'm there the is, landscape help on are we to which We're And we population. a best about that better on seeing to And worried our rather competitive our pre-ops, back sure XX% rate the members so, ability than supply that the experience. doing honestly, not making than the of really

Operator

from with Alex Group. Fuhrman Craig-Hallum next The Capital comes question

Alex Fuhrman

the covered talked WeightWatchers on about a conference a little you bit call making benefit. Sima,

substantial. anything insurance strike really might I we the trying kind makes Can you things tell and when think of see some what time of partnerships expect that about into different your never too and this over talked to progress us turned years, on some front? to just BXB that predecessors had

Sima Sistani

question, Alex. the for Thanks

and the seeing over I is understanding think with that And these disease. a weight thing with and way around it in believe life-saving and our are has were changed health. weight happen medications health considerably main I to And mental health. of the we're the same and that recognition health, is different cardiovascular we then you time change that weight same a see saw with being the going thing

have so, in WeightWatchers, And we this -- this new here our in but changes within category. yes, is in a shift complete paradigm and space the

outside And that's main so, changed that. thing the has that of

the more this with that now rolling is claims billing of with then few on lift, months. clinic we do the do that I to started come but having think as that, covered with that Again, we're insurance we the my an conversations in to And our operational we'll registered business, terms we're it's dietitians' a you benefit. ability starts the going in And we're are lot time, the is our private right which of of to just mentioned of really time to out a and business over the making rolling employees with and spending future start within and out. conversations, time their the honestly. companies. progress that of this, call. to start encouraged very it's insurance a the matter and going already by policy, sector Obviously, will mind. are in next start consultations, public We and move for payers support It's asking

Alex Fuhrman

That's helpful. Okay. really

Operator

with comes Stephanie question Barclays. Next from Davis

Stephanie Davis

around and it also sales I BXB, insurance companies rebuilds make Sima, sell that there's pivot the applaud health acknowledge structure And from want sense. lot headcount accept and payers. shift, to that's force a do costs costs. when a lot I to of to back-end lot a means But makes a necessary of think DXC BXB investment and I of employers that digital do

great shifts of So, with forward that put you make spend you the these think as these guys folks, look about? you are conversations? your talking can a And and through have scrutiny they being how should to go the have as through investment vendor how sign-up new I walk of just on some us lie, some you've payers employers and we know given talked but you in health about to these mind, brand, leverage

Sima Sistani

decades. the for been here two for We've news. question, Stephanie. Good Thanks this I'm report. in business like to

the so, motion move perks to here exciting mentioned, the build-out, infrastructure and is lot covered really And would is in different we a surprised, now. yes, infrastructure simmering, that but is our of as business bit as terms to G&A. it's and there. of been to work from now And get already in sales the a that And put say, already benefit, have we of you I would that be is I most it, a

solution. brand and of to is So, worth a for this trusted they're And for right have level metabolic mitigation, the enrollment makes it. drive is the looking really finding cost looking that payers, lot we're the lasting of excitement for engagement we outcomes. just about for engaging the They a want conditions, in ROI unified ROI they're a strategic conversations. what and And

Heather Stark

to on that, Sima's on to want add just Stephanie, comment G&A. I to

of includes to We $XXX is from which million have expecting million down investment G&A the guided XXXX. $XXX the in to clinical million, And in but $XXX business, net also obviously, that BXB. new

done the investments says it's including Sima when G&A with there, year-over-year we're making. in but flat holding it's there, that with our it's So, included below

Stephanie Davis

insurance a the lot follow-up like an seem but quick BXB I employers in app. you've back-end requires A that except like boost, before on I that. in sold guess programming Understood.

that? done that actual touched as all something you've follow-up that but be think about headwind we And and count? accessibility So, was kind factored it distributors the is you've my brought a this, some by head in for up drug hired about that on year. that G&A? the a Is that build-out of How should of then like you headwinds, already could

how access you And is steer to to alternatives are a are managing willingness there compound to So, as demand? treatment? the you having

Sima Sistani

you're yes, what the I'll about leverage. is the follow claims up. And But talking think billing. Heather I Exactly. there handle let on I'll obviously, is so -- -- follow-up, that Okay. more is what

was getting -- first clinicians, doing well So, yes, partnerships, we'll both in contracting with into that strategies, the mentioned, work RDs carriers to as insurance phases, are out as billing is provisioning services. for but the requisite as the that we for be of and all doing this that in-house Currently, labs contract to we're and and as on allow rolling well which required. be expect the pursuing to we we

that's a absolutely, shift, So, lift and it's and happening.

Heather Stark

your system other included the around people those are G&A. investments. And then and in of was yes, question part And our

Some it of of depending is, in are gross the it our but margin, type that these in. factored system is

Operator

comes The Jefferies. question with Karru next Martinson from

Karru Martinson

I what caller of supply, this you for year? terms in referenced headwind you last terms medication clinical think the seeing that growing a of there? but guys are And in is the this,

Sima Sistani

we're yes, mean, mentioned. I cautious I in a as posture

there. programmatic clinic have seeing sharing the way doing Novo But of that the is of out Lilly are out. we reporting some business, can we we with are and pharmacies that, there the that entry out what which are we're opportunity between within have has what And We report supply. the more seeing been only what a

the the that ability But meantime. But pharmacies, have It's data, do. with get environment. when information proprietary we a supply-constrained we're their to has same location that through about a really yes, our through to we that is work can our this them to feature public retention. you we the And certain have location, a feel member nearest we good our And all proprietary and sort helped members been basically that supply then so, in this to alongside unable great been point the help from information using supply. the of getting has

Karru Martinson

me quarter look Okay. million And kind then liquidity, the when cash of need again, had first year. remind you at can accrued for $XX make? if went the are out we restructuring for remaining of then you to that the that And what payments cash about restructuring you last

Heather Stark

Yes.

then our in the use cash approximately cash out the cash marketing was quarter, of with high So, year a the as we had coverage items the sequence million interest then that million like also XX%. that compensation $XX quarter obviously acquisition. for of with associated we is estimate. second full our XXXX bonus, first and is entering QX And certain referenced quarter obviously, $XX in first use, terms cash well. going restructuring And

Karru Martinson

April believe? on made XX, was acquisition I sequence That

Sima Sistani

right. That's

Heather Stark

to So, expect of the build as in year. increase we we from operations And the second half we shared, year-over-year. expect cash do through modest a cash

Operator

next question Guggenheim. Jack from with Wallace The comes

Jack Wallace

to wanted about BXB and how the month partnership your just this earlier ask that's accelerating you announced Personify Health strategy? I

Sima Sistani

Jack. back, Sure. Welcome

We are really about excited this channel.

we prospects their either come asking with but to few a that are have We carrier virgin that through requested us have large or pulse. work

employers. jumbo they our landing Cigna for deals and critical, overall the Health are platform wellness large these and really with thousands Personify those works with strategy to So, employers, employers. and some of larger preferred yes, And of are

So, to to turning through customers we're on the hoping start of that by the year. end midyear

Jack Wallace

And should front? we start-up of think one-off opposed a as to a as the strategy the about partnership on BXB this

Sima Sistani

not of certainly is the volume doing in we're on This front happening terms ongoing work BXB is BXB lot now. There's our a a conversations one-off. right of the that

Operator

comes with And the Stanley. next Morgan Nathan from question Feather

Nathaniel Feather

improvements. look some product to the at wanted just of I Okay.

primarily impacted quarter? things potential and So, driving the a interesting and and about there's any for how Just have and it's to improvements up the go peer-to-peer major product Eat on put in interesting a the have back maybe product of and I the that think an messaging those you of some are what activation deck, maybe may and impact think be you of 'XX do the that the retrospective help bit experience, XXXX, rate in scheduled out

Sima Sistani

Right. Well, activation since our about talked the rate been that it's XXXX. we how sure best you is noticed so that I'm

of over is improvement seeing lot well. the on core A as months. happening clinic side now retention product We also XX are

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success, activated, are NPS. our these a just members that answer more ongoing to more follow-up? help And helping Nathan, or increases do so, builds question, you the have have Does be

Nathaniel Feather

Yes, Thank that's you. helpful.

Operator

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

Sima Sistani

seeing results recap, our far with in So to think new making in the way in so business improving to looking week, I'm clinical a next momentum the by virtual shift BXB. forward building our core to retention proud about WeightWatchers just our really our we weight Oprah we encouraged are are and Winfrey. XXXX, event of program, progress live in growing

conversation p.m. the medical available viewing. influential diverse will Joining remain on-demand leading be for it's X:XX going The live and Event and be at YouTube on start streamed will experts. in to voices Main Eastern,

culture, thank I cultural commitment. highly shifting weight you all. that's And from to a And the this I to will changing dedicated really are the visible amplify to that believe weight be conversation loss us health. help We moment going

Operator

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

You disconnect. may now

WW International (WW) 2 May 242024 Q1 Earnings call transcript