WW (WW) Tops Q3 EPS by 15c, Revenues Miss
WW (NASDAQ: WW) reported Q3 EPS of $0.78, $0.15 better than the analyst estimate of $0.63. Revenue for the quarter came in at $320.7 million versus the consensus estimate of $325.58 million.
- Q3 2020 End of Period Subscribers up 5% year-over-year to 4.7 million, an all-time Q3-end high
- Q3 2020 End of Period Digital Subscribers up 23% year-over-year, an all-time Q3-end high
- Q3 2020 Revenues of $321 million, down 8%, or 9% on a constant currency basis, year-over-year due to anticipated declines in the Studio + Digital business
- Q3 2020 Gross Margin of 59.3%; excluding one-time charges, Q3 2020 adjusted gross margin increased year-over-year to 59.6% driven primarily by a mix shift to higher margin Digital business
- Q3 2020 Operating Income of $93 million; excluding one-time charges, Q3 2020 adjusted operating income of $95 million matched Q3 2019 operating income
“The world has profoundly changed and WW, being a human-focused technology company, is needed now more than ever,” said Mindy Grossman, the Company’s President and CEO. “We ended the quarter with 4.7 million subscribers, marking a new record for a third quarter close. We accelerated initiatives that were already underway to create a truly differentiated, tech-enabled, member experience. Building on the massive success of the myWW food program, we are thrilled for the upcoming launch of our newest innovation myWW+ which offers even deeper personalized insights and new app features to deliver an enriching and fully interactive member experience.”
Amy O’Keefe, the Company’s CFO, said, “The power of our high-margin digital subscription business is demonstrated in our Q3 results as year-over-year we grew total subscribers, matched operating income levels, and grew EPS, despite the negative impact of COVID-19 on our Studio business. We remain focused on maximizing member recruitment opportunities, while maintaining cost discipline and increasing the flexibility of our operating structure. We are confident we have the right initiatives in place to fuel profitability and growth.”
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