November 20, 2023
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MindBody creeps closer toward profitability


MindBody’s revenues continued its double-digit growth, and net losses fell by almost half to $3.6 million for the quarter ended Sept. 30.

The San Luis Obispo-based software provider for the wellness and fitness industry saw a trickle of operating profits during the quarter. Excluding stock-based compensation and amortization of certain assets, the company posted a net income of $700,000, presaging its potential shift into profitability.

An 8 percent increase in high-value subscribers brought the company up to $46.6 million in revenue, compared to $35.3 million in the previous third quarter. Net loss per share according to generally accepted accounting principles was 8 cents, down from 15 cents for the same period the prior year.

“We had a great third quarter highlighted by the early success of our refined subscriber growth strategy,” CEO and co-founder Rick Stollmeyer said in a news release Oct. 26. “Our focus on adding the right customers that contribute significant wellness inventory to our platform is driving accelerated adoption of our consumer apps and the MindBody network.”

Total operating expenses also increased by around 25 percent to $37.3 million, primarily in sales and marketing costs. Non-GAAP fourth quarter net income could reach $1 million, the company said in an earnings outlook, as revenues continue to grow 27-30 percent.

MindBody had $225 million in cash and cash equivalents, with $7.4 million in current liabilities. Shares for the company fell 5 cents on Oct. 26 to $28.35.

— Contact Marissa Nall at