WW International announced its third quarter fiscal 2024 results on November 6, 2024, reporting revenues of $192.9 million, a 10.2% decrease year-over-year. End-of-period subscribers declined 8.8% to 3.7 million, driven by recruitment challenges in the Digital and Workshops + Digital businesses.
Despite overall declines, the Clinical segment demonstrated strong growth, with end-of-period clinical subscribers increasing 71.5% year-over-year to 78 thousand. Clinical Subscription Revenues surged 90.7% to $19.1 million, indicating momentum in the company's pivot towards clinical weight management solutions. However, the company reported a net loss of $46.2 million, or $0.58 diluted net loss per share, compared to net income in the prior year period.
The company also recorded a non-cash intangible impairment charge of $57.0 million for franchise rights acquired, primarily due to an increase in its weighted average cost of capital. Furthermore, WW International disclosed that its net debt to adjusted EBITDA slivered ratio was 10.4x at the end of Q3 2024, and it was not in compliance with its Consolidated First Lien Leverage Ratio covenant as of September 28, 2024, limiting access to its revolving credit facility. Management reiterated full-year fiscal 2024 guidance, including at least $770.0 million in revenue and at least $150.0 million in Adjusted EBITDAS, but updated its operating loss guidance to not exceed $240.4 million.
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