WW Earnings Prediction
The chart below shows how WW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WW sees a +5.73% change in stock price 10 days leading up to the earnings, and a -6.29% change 10 days following the report. On the earnings day itself, the stock moves by -3.46%. This data can give you a slight idea of what to expect for the next quarter's release.
WW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
192.89M
-10.23%
-4.55%
Gross Margin
69.12%
4.44%
1.81%
Operating Margin
18.64%
8.88%
-0.48%
Net Margin
-23.95%
-217.69%
-307.90%
EPS
-0.58
-207.41%
-300.00%
No Data Available
WW Earnings Analysis
WW International, Inc. Common Stock Corporation (WW.O) Earnings Conference Call
Positive
Strong Revenue Performance: Revenue totaled $193 million, reflecting a strong performance despite a 9% year-over-year decline in subscribers.
Clinical Subscribers Surge: Clinical subscribers grew by 71% year-over-year, contributing to a $9 million increase in subscription revenue.
Record High Adjusted Gross Margin: Adjusted gross margin reached a record high of 69.1%, up from 66.2% in the prior year, indicating improved operational efficiency.
Cost Savings Target: The company is on track to achieve $100 million in cost savings by the end of 2025, enhancing profitability and liquidity.
Cash Generation Improvement: Cash at the end of Q3 was approximately $57 million, up from $43 million at the end of Q2, indicating strong cash generation capabilities.
Negative
Subscriber Decline Analysis: We ended Q3 with 3.7 million subscribers, a decline of 9% year-over-year reflecting year-to-date recruitment declines as consumer acquisition costs increased substantially compared to last year.
Subscription Revenue Decline: Subscription revenues were $191 million down 6% year-over-year with declines in our digital and workshop subscription revenues.
Operating Income Improvement: Adjusted operating income in the third quarter was $36 million reflecting an operating margin of 18.5%, a year-on-year increase of almost 150 basis points.
Marketing Spend Adjustment: We experienced a roughly 30% year-on-year increase in cost to acquire, which resulted in a decision to pull back marketing dollars to preserve spend for the fourth quarter aligned with the timing of program news and creative execution.
Franchise Rights Impairment Charges: During Q3 2024, we recorded non-cash impairment charges of franchise rights acquired totaling $57 million.
WW FAQs
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WW Earning Call Sentiment
WW International, Inc. (WW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WW.O
1.2%Positive
The earnings call reveals declining subscriber numbers and revenue, despite a slight improvement in gross margins. The Q&A indicates high acquisition costs and unclear management responses on cost savings reinvestment. While there is optimism in clinical growth, the overall financial picture is concerning, with increased interest expenses and a high net debt ratio. The lack of a clear shareholder return plan and competitive pressures further dampen sentiment, leading to a negative outlook for the stock price over the next two weeks.
