February 7, 2023
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Reality sets in for San Luis Obispo’s MindBody


For San Luis Obispo’s MindBody, reality has set in.

The party is over.

After early excitement about its initial public offering Friday, reality set in when shares plummeted about 17.4 percent by the end of the day. MindBody shares were rebounding slightly Monday morning.

MindBody raised $101 million by selling 7.2 million shares at $14 per share late Thursday. 

Shares opened trading at $16.22 Friday morning, before quickly slipping to $13.41 by 10 a.m. and $12.73 by noon.

By the time trading ended at 1 p.m. Friday, MindBody’s price per share had slipped to $11.56. The stock rebounded slightly in after hours trading, moving up 1.2 percent to $11.70 per share.

As of 9:52 a.m. Monday morning, MindBody shares were up about 7 percent on the day to $12.44 per share.

As MindBody’s IPO neared, analysts remained lukewarm on the stock. MindBody has a long history of losing money. 

The company lost $16.2 million and $24.6 million in 2013 and 2014 respectively. This year, MindBody lost $7.9 million in the first quarter alone.

Investment research firm Zacks said before the IPO that the company is facing dwindling cash reserves and desperately needs an influx of cash to grow.

While the market for management software solutions for wellness business is slated to grow 17 percent between this year and 2018, it is unclear if Mindbody will be able to take advantage,” Zacks said.