WW International posts first-quarter loss as revenue falls 10%
Updated
Updated · The Wall Street Journal · May 7
WW International posts first-quarter loss as revenue falls 10%
2 articles · Updated · The Wall Street Journal · May 7
The Weight Watchers owner reported a $52.0 million loss on $168.3 million in revenue, beating FactSet's $158.5 million revenue estimate and improving from a $72.6 million loss a year earlier.
Clinical subscription revenue rose 32%, but behavioral subscription sales fell 18%, pulling overall subscription revenue down 9.6% as the core membership tier faced headwinds despite some customers shifting to premium plans.
The company, which has added weight-loss drugs to its platform, reaffirmed full-year sales guidance of $620 million to $635 million, broadly in line with analysts' $630.7 million forecast.
With telehealth giants entering the market, can a legacy brand like Weight Watchers truly compete in the booming GLP-1 industry?
As users face health risks upon stopping GLP-1s, is WW's new model creating a lifelong dependency on expensive drugs?