MindBody exceeded analysts’ revenue estimates and hit analysts’ net-loss-per-share estimates when it reported first quarter earnings May 3.
MindBody, a San Luis Obispo-based developer of yoga and fitness merchant processing software, posted first quarter revenues of $32 million, exceeding analyst estimates of $30.28 million, up from $22.26 million in 2015, according to S&P Capital IQ. The company reported a net loss of 17 cents per share, which hit analysts’ estimates on the nose. That was much better than the company’s net loss of $1.03 per share in 2015.
For years, MindBody has been building global infrastructure to support its vast network of yoga studios and fitness centers that use MindBody software to process payments. The company’s software is now available in 134 countries worldwide. As MindBody has built out this infrastructure, its net loss and operational costs have also increased.
The company’s losses may have hit a plateau, though. While operating expenses increased again from $9.7 million in 2015 to $13.2 million in 2016, net losses decreased from $11.57 million to $6.59 million.
MindBody CEO Rick Stollmeyer said the company could be profitable using the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) metric by July of next year. Subscribers also grew 26 percent during the quarter to 53,603.
“We can now confidently predict that we will be adjusted EBITDA positive in the second quarter of 2016,” Stollmeyer said on a May 3 earnings call.
• Contact Philip Joens at [email protected]