MindBody revenue soars but net loss continues
San Luis Obispo-based MindBody reported $42.2 million in first quarter revenue, a 32 percent increase from a year ago during the same period, but the company still reported a net loss.
The GAAP net loss in the first quarter of 2017 was $3.9 million, down from $6.6 million during the first quarter of 2016.
The wellness center management software company also reported subscription and services revenue of $25 million, a 30 percent increase year over year.
“We had a strong start to the year, with positive early returns from our high value subscriber growth strategy, the nationwide rollout of our Google integration, and the timely acquisition of Lymber,” said Rick Stollmeyer, co-founder and CEO of MindBody. “These developments reflect our focus on accelerating business and consumer engagement across our platform, fueling the growth of wellness businesses worldwide and helping millions more people live healthier, happier lives.”
Subscribers increased 12 percent year over year to 59,919; the average monthly revenue per subscriber grew 15 percent year over year to approximately $230.
“We are pleased with our financial performance in the first quarter delivering strong revenue growth and improving margins, while achieving record ARPS and positive cash flow from operations,” said Brett White, chief operating officer and chief financial officer.
Earlier in 2017, MindBody announced a partnership with Google. The Reserve with Google feature in Los Angeles, New York and the Bay Area allows customers to book fitness classes directly from a search.
MindBody also purchased Lymber Wellness for an undisclosed sum. It uses MindBody’s platform to enable wellness-based businesses to incorporate adjustable pricing strategies.
Shares for MindBody on May 4 closed down a dime to $28.50.
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