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Shares of WW International Inc. plunged after the weight loss service provider said it lost subscribers in the three months through June as user trends unexpectedly returned to their pre-norms. the pandemic.
Shares of New York-based WW, formerly known as Weight Watchers, fell 29% after the company reported 4.9 million subscribers at the end of the second quarter, up from 5 million at the end of the first quarter which reached the record level reached in the first quarter of 2020.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| WW | WW INTERNATIONAL | 23.12 | -9.17 | -28.40% |
“We ended the quarter with 4.9 million subscribers, including 4.1 million digital subscribers – an all-time high in the second quarter and up 6% year-on-year, but below our expectations,” said WW CEO Mindy Grossman said in a statement. .
The decline in end-of-period workshops and digital subscribers is responsible for the drop in the number of users. The decline in subscribers drove subscription revenue down 6.9% to $ 272.9 million, from $ 293 million last year. Total revenue was $ 311.4 million, below Refinitiv’s consensus of $ 337 million.
WW earned $ 8.9 million, an adjusted 48 cents per share, lower than analysts expected 66 cents.
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The company is forecasting lower than expected profits and revenues for the full year.
WW shares are up 32% this year through Tuesday compared to the S&P 500’s 18% gain.
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