Weight Watchers International, Inc. (NASDAQ: WW) reported Q1 EPS of ($0.09), $0.14 better than the analyst estimate of ($0.23). Revenue for the quarter came in at $400 million versus the consensus estimate of $399.96 million.

• Q1 2020 End of Period Subscribers up 9% year-over-year to 5.0 million, an all-time Q1-end high
• Q1 2020 Revenues of $400 million, up 10%, or 11% on a constant currency basis, year-over-year
• Launches Virtual Workshops globally, as a response to Studio closures, keeping the WW community connected across all platforms
• Accelerates digital transformation to provide all members globally with the support, encouragement, and community integral to the WW experience

“Our business had a very strong start to the year, driven by the successful launch and marketing of our new myWW program and increased awareness from the WW Presents: Oprah’s 2020 Vision tour,” said Mindy Grossman, the Company’s President and CEO. “As we navigate this rapidly changing and uncertain environment created by COVID-19, our first priority is ensuring the health and safety of our employees and members, as well as providing them with the support, encouragement, and community integral to the WW experience. We took quick global coordinated action and pivoted to move all of our in-person group workshops, which serve about a quarter of our members, to a virtual platform, keeping the WW community connected no matter where they are. We are accelerating our digital transformation, focusing our strategy and resources to enhance the member experience and engagement by delivering a connected, digital, and deeply-human experience. Now more than ever, we have the opportunity to demonstrate WW’s trusted leadership in weight loss and wellness.”

“WW ended the first quarter with 5.0 million subscribers, reflecting a new Q1 quarter-end record and a 9% increase versus the prior year period,” said Nick Hotchkin, the Company’s CFO, Operating Officer, North America and President, Emerging Markets. “Beginning in mid-March, the crisis started to negatively impact our recruitments and resulted in Studio closures. While we have seen some recovery, given the uncertainty around 2020 revenue levels, we are withdrawing our full year 2020 financial guidance. We have strong liquidity and a highly cash generative business model. To further bolster our financial flexibility, we are implementing a $100 million cost-savings initiative. We continue to be excited about our long-term growth opportunities with our digital platform.”

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