Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Beachbody Bounces in Trading Debut on At-Home Wellness Boom

Stock MarketsJun 28, 2021 02:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Christiana Sciaudone

Investing.com -- Beachbody (NYSE:BODY) jumped more than 7% in its trading debut today, proving that at-home fitness isn’t stuck in the days of the pandemic.

The fitness and nutrition company went public through a reverse merger with special purpose acquisition company Forest Road Acquisition Corp., and Myx Fitness Holdings, a Peloton (NASDAQ:PTON) rival. Like the popular maker of stationary bikes and streaming exercise videos, Beachbody is aiming to grow its own at-home audience of wellness enthusiasts even though people are free to return to gyms.

"Once you get a taste of that convenience, you don't go back," founder and CEO Carl Daikeler said in a phone interview today. "This is the same company today that we started 22 years ago, it's just on a bigger stage but the objective has literally been to use content and pull no punches in terms of what it takes to get results to help people get healthy and fit at home."

Daikeler added: "What 2020 did was provide a catalyst for the premise all along."

Forest's trust account totaled about $300 million, and institutional investors including Fidelity Management & Research and Fertitta Capital committed to a private placement of $225 million to purchase Class A shares of the combined company. Beachbody is expected to have over $420 million of unrestricted cash on the balance sheet, and the transaction implies a pro forma enterprise value of approximately $2.9 billion, or two times 2022 estimated revenue, according to a February statement.

"Because we've never had access to this kind of capital, we get to take our marketing to a new level," Daikeler said. Beachbody will also use the funds to expand internationally -- they are already in France and the U.K. -- initially looking at Western Europe. While it won't be a costly expansion, it will likely be complex in coming up with nutrition plans that cater to the tastes of each market, among other challenges. 

Mergers and acquisitions are also on the menu, though the focus at the moment is on offering MYX bikes to the 3.2 million total digital and nutritional subscriptions already out there. 

"That's a business that we've got to maximize, then we can look at the other options," Daimler said. 

In the meantime, the company's focused on its newest offering, Beachbody on demand interactive, a live stream workout that will stream from six to eight hours a day that will allow up to 100 subscribers to be in the background with the instructor who can provide live feedback. 

For the three months ended in March, revenue for Beachbody's nutrition program outstripped that from digital subscriptions, with $131 million coming in versus $95 million, though digital revenue soared 52% while nutrition revenue rose 23% from a year earlier, according to a company filing. MYX, meanwhile, sold more than 27,000 bikes in its first year of operation. Its price point of $1,299 is far below the cheapest Peloton bike, valued at $1,895.    

Speaking of which, Daikeler's not afraid of the competition. 

"We're not fighting over the last few people who haven't made a choice. It's far more white space," he said. That said, while Peloton's prices limit its audience, "Beachbody has made its business by serving the mass market."    

 

Beachbody Bounces in Trading Debut on At-Home Wellness Boom
 

Related Articles

Is AMC Entertainment Setting Up for a Big Move?
Is AMC Entertainment Setting Up for a Big Move? By StockNews - Nov 29, 2021

A symmetrical triangle has formed in the chart of AMC Entertainment Holdings Inc. (NYSE:AMC). This forms when a down trending resistance line is combined with an up-trending...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Adam Anderson
Adam Anderson Jun 28, 2021 4:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
short this whole area...people are going back to Gyms...I didn't think they would but they want to be in a social environment not just online....huge mass of individuals actually want to engage in actual reality not just virtual..
Aaron Goh
Aaron Goh Jun 28, 2021 3:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
been with their program almost 10 years now....finally move up next step..im so happy for Carl
Green Mango
Green Mango Jun 28, 2021 3:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Online workouts valued at $3B.  If this isn't a sign of market froth, what is?
knight Rider
knight Rider Jun 28, 2021 3:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They have annual Real Revenues of 800Million$ , basis its peers its very undervalued
Khairdeen Baloch
Khairdeen Baloch Jun 28, 2021 2:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email