WW International stock slammed as subscribers flee
Subscription revenue fell 6.9% from a year ago
WW International Inc. shares plunged after the weight-loss service provider said it lost subscribers during the three months through June as user trends unexpectedly returned to their pre-pandemic norm.
Shares of the New York-based WW, formerly known as Weight Watchers, tumbled by as much as 29% after the company reported 4.9 million subscribers at the end of the second quarter, down from the 5 million at the end of the first quarter which matched the record high achieved in the first quarter of 2020.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WW | WW INTERNATIONAL INC. | 0.96 | +0.01 | +1.11% |
"We ended the quarter with 4.9 million subscribers, including 4.1 million Digital subscribers -- an all-time second quarter-end high and up 6% year-over-year, but below our expectations," said WW CEO Mindy Grossman in a statement.
Declines in End of Period Workshops and digital subscribers were behind the drop in users. Fewer subscribers resulted in subscription revenue falling 6.9% to $272.9 million from $293 million last year. Total revenue was $311.4 million, below the Refinitiv consensus of $337 million.
WW earned $8.9 million, or an adjusted 48 cents per share, below the 66 cents that analysts were expecting.
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The company forecast full-year earnings and revenue below expectations.
WW shares were up 32% this year through Tuesday compared with the S&P 500’s 18% gain.