Post by Kitty on Aug 5, 2020 5:23:08 GMT
Just a few notes on the earnings call. This isn't a summary just some things that I wanted to mention.
seekingalpha.com/article/4364494-ww-internationals-ww-ceo-mindy-grossman-on-q2-2020-results-earnings-call-transcript?part=single
1. Mindy Grossman refers to the "digital-first strategy"
2. Ended Q2 with 5 million subscribers, which is a record level for end of Q2. Digital subscribers are up 23% year over Year. 80% of members are digital only. Seeing demographic change. 51% of Q2 new members are under 45. Digital revenues up but studio fees and sales are down (due to COVID). So revenues were overall down.
3. Says that later this year will come a new membership tier for virtual coach-led communities. (my comment: that is obviously the tier more expensive than digital but less than studio. What I wonder is if there will be any way for studio members to attend virtual coach led meetings. I suspect you will only be able to get and maintain lifetime membership through going to a studio but I do like the idea of doing virtual meetings. Will there be a way for studio members to do that or do you have to pick one or the other?)
4. Face to face experience will always be a part of WW, but repositioning studio business to have smaller real estate footprint with fewer locations. (My comment: the wording is interesting. "Face to face experience" is not quite the same thing as studio workshops. I could envision something where there were small spaces -- perhaps in existing stores -- where you could buy product and perhaps weigh in to maintain lifetime status but there were no face to face meetings. They could even offer lifetime membership to virtual members if the members weighed in once a month).
5. Says that that this will continue to operate virtual studios to support members. She doesn't say how long.
6. The CFO of WW, Nick Hotchkin, has been named as Chief Operating Officer. Named a new CFO.
7. WW had 800 leases for US studios at start of year. Have permanently closed 100 and have about 650 now. At start of year had 2300 third party locations on month to month leases. Those have been closed since March due to COVID and "will be reopened only on a very selective basis). Mentions have more leases coming up for renewal next year so have a lot of flexibility. Virtual workshops are well received and many want to continue them post-COVID. Plan to continue offering workshops virtually.
8, They are "focused on our 2021 winter launch and delivering a new and compelling programmatic innovation as we anniversary my WW." (Hmmm...what does that mean?) Will further efforts around personalization, motivation and weight loss success.
9. The new coach led premium experience is "specifically designed for a millenial audience." On track to launch this in December. Will involve live and on demand experience.
10. Later in 2021, relaunching 1 on 1 personal coaching offering.
11. She was asked if the premium experience targeting millenials was similar to or aligned with the virtual coaching model. She said it is separate. That they will be continuing some virtual workshops for workshop members that this offering a completely different with a new cohort of coaches. Pricing will be between digital and workshop. Will attract a new audience and to sell up from digital. (My comment: This looks like it is really targeted at younger people and will be totally separate from workshops. I don't think having a monthly pass will cover this. It looks like if you want this you would have to pay for it plus the workshop or just not do workshops. Also - they may want to target millenials with this but I could see some older people liking the idea of virtual meetings. So not sure that will really work out that way).
My comment - It was unclear to me whether the programmatic chance that is upcoming is just this new tier of service or whether it is something changing in the program itsel.
seekingalpha.com/article/4364494-ww-internationals-ww-ceo-mindy-grossman-on-q2-2020-results-earnings-call-transcript?part=single
1. Mindy Grossman refers to the "digital-first strategy"
2. Ended Q2 with 5 million subscribers, which is a record level for end of Q2. Digital subscribers are up 23% year over Year. 80% of members are digital only. Seeing demographic change. 51% of Q2 new members are under 45. Digital revenues up but studio fees and sales are down (due to COVID). So revenues were overall down.
3. Says that later this year will come a new membership tier for virtual coach-led communities. (my comment: that is obviously the tier more expensive than digital but less than studio. What I wonder is if there will be any way for studio members to attend virtual coach led meetings. I suspect you will only be able to get and maintain lifetime membership through going to a studio but I do like the idea of doing virtual meetings. Will there be a way for studio members to do that or do you have to pick one or the other?)
4. Face to face experience will always be a part of WW, but repositioning studio business to have smaller real estate footprint with fewer locations. (My comment: the wording is interesting. "Face to face experience" is not quite the same thing as studio workshops. I could envision something where there were small spaces -- perhaps in existing stores -- where you could buy product and perhaps weigh in to maintain lifetime status but there were no face to face meetings. They could even offer lifetime membership to virtual members if the members weighed in once a month).
5. Says that that this will continue to operate virtual studios to support members. She doesn't say how long.
6. The CFO of WW, Nick Hotchkin, has been named as Chief Operating Officer. Named a new CFO.
7. WW had 800 leases for US studios at start of year. Have permanently closed 100 and have about 650 now. At start of year had 2300 third party locations on month to month leases. Those have been closed since March due to COVID and "will be reopened only on a very selective basis). Mentions have more leases coming up for renewal next year so have a lot of flexibility. Virtual workshops are well received and many want to continue them post-COVID. Plan to continue offering workshops virtually.
8, They are "focused on our 2021 winter launch and delivering a new and compelling programmatic innovation as we anniversary my WW." (Hmmm...what does that mean?) Will further efforts around personalization, motivation and weight loss success.
9. The new coach led premium experience is "specifically designed for a millenial audience." On track to launch this in December. Will involve live and on demand experience.
10. Later in 2021, relaunching 1 on 1 personal coaching offering.
11. She was asked if the premium experience targeting millenials was similar to or aligned with the virtual coaching model. She said it is separate. That they will be continuing some virtual workshops for workshop members that this offering a completely different with a new cohort of coaches. Pricing will be between digital and workshop. Will attract a new audience and to sell up from digital. (My comment: This looks like it is really targeted at younger people and will be totally separate from workshops. I don't think having a monthly pass will cover this. It looks like if you want this you would have to pay for it plus the workshop or just not do workshops. Also - they may want to target millenials with this but I could see some older people liking the idea of virtual meetings. So not sure that will really work out that way).
My comment - It was unclear to me whether the programmatic chance that is upcoming is just this new tier of service or whether it is something changing in the program itsel.
