MindBody, the newly public wellness software service company based in San Luis Obispo, said Nov. 4 that revenue jumped 48 percent to $26.1 million for the third quarter as its loss narrowed compared to a year earlier.
The company, which sells products and merchant processing to yoga and fitness centers worldwide, reported a loss of $9.6 million 25 cents per share, slightly below analyst expectations of a 27-cent loss.
The loss was sharply lower than the $11.4 million, or $1.03 per share loss, reported a year ago. MindBody went public in July raising $101 million after stocks priced at $14 per share. On Nov. 3, shares closed at $15.89 and traded down 59 cents to $15.30 on Nov.4 before the announcement.
The company raised guidance for all of 2015 saying it expects revenue of $100.1 million to $101.1 million and a loss of $28.6 million to $29.6 million for the year. That loss does not reflect GAAP accounting rules.
“Our business continued to deliver excellent results in the third quarter, with record revenues, subscriber growth and improving margins year over year,” said Rick Stollmeyer, co-founder and chief executive officer. “We are ready to step on the gas” and increase overseas marketing, he said.
This was the company’s first full quarter of reporting as a public company and MindBody said it would continue to reduce administrative costs in future quarters.
The company, which has roughly $100 million in cash and no debt, said it used $4.4 million in operating activities and more than $1 million in capital expenditures. The company said it added a record number of new subscribers in the quarter and renegotiated a payments deal to get more favorable terms.
“We delivered another quarter of strong revenue growth and improving operating leverage year over year,” said CFO Brett White.
Stollmeyer said the company’s business was somewhat seasonal with more consumer utilization of fitness studios in the fourth quarter. During the quarter, MindBody processed roughly $1.28 billion in payments up 25 percent from the 2014 quarter.
It also developed partnerships with Fitbit as well as cloud services providers for accounting and payments and Lending Club to allow fitness club owners to get small business loans. The company works with some 48,000 clients worldwide.
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