Latest news with #Comonte
Yahoo
20-05-2025
- Business
- Yahoo
WW Q4 Earnings Call: Product Integration, Subscriber Challenges, and Strategic Reset
Personal wellness company WeightWatchers (NASDAQ:WW) reported Q4 CY2024 results topping the market's revenue expectations , but sales fell by 10.5% year on year to $184.4 million. Its non-GAAP profit of $0.32 per share was significantly above analysts' consensus estimates. Is now the time to buy WW? Find out in our full research report (it's free). Revenue: $184.4 million vs analyst estimates of $175.7 million (10.5% year-on-year decline, 5% beat) Adjusted EPS: $0.32 vs analyst estimates of $0.07 (significant beat) Adjusted EBITDA: $49.74 million vs analyst estimates of $46.36 million (27% margin, 7.3% beat) Operating Margin: 19.6%, up from -2.9% in the same quarter last year Free Cash Flow Margin: 2.4%, down from 3.6% in the same quarter last year Members: 3.34 million, down 462,000 year on year Market Capitalization: $22.56 million WeightWatchers' Q4 results reflected the ongoing transformation in the weight management industry, as the company navigates both subscriber declines and rapid changes in consumer preferences. Management attributed the quarter's performance to continued headwinds in its traditional behavioral business, partially offset by robust growth in its clinical segment, which benefited from new offerings and improved access to weight loss medications. CEO Tara Comonte noted, 'We're focused on stabilizing and rebuilding for long-term sustainable growth,' highlighting recent product updates and operational changes as leading indicators of future momentum. Looking ahead, management's forward guidance centers on stabilizing the subscriber base, integrating clinical and behavioral programs, and addressing challenges related to medication supply and competitive marketing. The company emphasized the need for disciplined investment given high interest expenses and signaled that 2025 will be a year of resetting expectations. Comonte acknowledged, 'Transformations take time and they take investments,' while CFO Felicia DellaFortuna stated that ongoing cost controls and product enhancements are expected to help position WeightWatchers for gradual recovery. WeightWatchers' leadership focused on the dual challenge of declining traditional subscribers and growing clinical offerings. The company's fourth quarter was shaped by new product features, deeper integration of its clinical business, and ongoing cost restructuring as it adapts to a changing competitive landscape and evolving consumer demand. Clinical segment momentum: Clinical subscriber growth accelerated, driven by improved access to weight loss medication and the addition of generic and compounded options. Management highlighted that clinical members deliver higher lifetime value and retention rates, and that expanding this business remains a top priority. Product innovation deployment: Several new features were launched, including an AI-powered food scanner, a recipe importer, and macro nutrient tracking. Management reported these updates have led to higher member engagement and reactivation, particularly among previously inactive users. Behavioral business pressure: The traditional behavioral business continued to experience recruitment and retention challenges, with management citing ongoing competitive pressures and shifting consumer preferences toward medication-assisted solutions. Cost reduction efforts: The company has actioned the majority of its $100 million run-rate cost savings target, resulting in increased operating margins and a leaner cost structure. Further operational reviews and AI-driven automation are planned to unlock additional efficiencies. Capital structure constraints: High debt levels and annual interest obligations are limiting the ability to invest aggressively in growth initiatives. Management has engaged advisors to explore options for improving financial flexibility and noted that the balance sheet will remain a key constraint in the near term. Management's outlook for 2025 is centered on stabilizing the core business, expanding clinical offerings, and balancing growth investments with ongoing financial constraints amid a highly competitive environment. Integration of clinical and behavioral: Deeper integration of clinical (medication) and behavioral (lifestyle change) programs is expected to improve member outcomes and engagement, which management believes will support a gradual return to growth. Product experience enhancements: Ongoing product innovation—including AI-driven personalization and new digital tools—aims to increase engagement and retention, but immediate impacts on subscriber growth may be limited by market dynamics. Marketing and capital discipline: Continued high customer acquisition costs, combined with heavy debt obligations, require careful allocation of resources. Management plans to shift spending toward higher-impact initiatives while maintaining strict cost controls, but acknowledges this may limit near-term subscriber acquisition. Nathan Feather (Morgan Stanley): Asked about early signs of improved member acquisition and retention following product changes. Management cited higher activation rates but said it is too early to see direct financial impacts. Nathan Feather (Morgan Stanley): Inquired about the role of generic and compounded medications in clinic growth. Donna Boyer, Chief Product Officer, explained that broader access—especially through compounding—drove subscriber gains despite ongoing branded medication shortages. Michael Lasser (UBS): Pressed on how WeightWatchers can avoid a downward spiral of declining subscribers and constrained resources. CEO Tara Comonte emphasized leveraging the brand's legacy, ongoing product innovation, and careful capital allocation. Michael Lasser (UBS): Asked about the sustainability of clinical subscriber growth and the cash needed to service debt. CFO Felicia DellaFortuna stated that a higher mix of clinical subscribers supports stronger margins, but volume challenges remain in the behavioral segment. Alex Fuhrman (Craig-Hallum): Sought clarity on strategies if compounded medication access is lost. Management said it will pivot to branded and alternative medications where possible and closely monitor developments in supply and regulation. In the coming quarters, the StockStory team will watch (1) the pace of clinical subscriber growth and the impact of expanded medication access, (2) execution on integrating clinical and behavioral offerings to boost engagement and retention, and (3) management's ability to further reduce costs and improve capital flexibility. Developments in medication supply, regulatory changes, and the effectiveness of new digital features will also be important to track. WeightWatchers currently trades at a forward EV-to-EBITDA ratio of 0.2×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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New York Post
10-05-2025
- Business
- New York Post
WeightWatchers files for bankruptcy — These GLP-1 firms want to help you meet your goals
New York Post may be compensated and/or receive an affiliate commission if you click or buy through our links. Featured pricing is subject to change. As GLP-1 firms continue to bulk up, WeightWatchers (WW) is stepping off the scale. The points-system-based weight loss program filed for bankruptcy on May 6, with its premarket value plummeting 52% by Wednesday morning. A growing debt burden forced the company to scale back operations, but current members were assured they wouldn't be affected by the filing. A reorganization plan is expected within 40 days, according to a statement released Tuesday. Advertisement 'As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed, and holistic solutions — grounded in community support and lasting results — has never been stronger, or more important,' said Tara Comonte, Chief Executive Officer of WW. Comonte suggested that the filing was supported by lenders, who are committed to helping the company shed its $1.15 billion debt, appeal to new customers, and innovate in the rapidly evolving weight management landscape — a space that is currently swamped with competitive GLP-1 solutions. WeightWatchers has struggled to maintain subscriptions as people turn to popular medications like Ozempic, Mounjaro, and Wegovy. Originally used to treat diabetes, GLP-1s have become an attractive option for those looking to suppress hunger and shed pounds fast. Advertisement The company found some relief after adding GLP-1 obesity treatment offerings in 2023, but still hasn't strayed from the more traditional approach to weight loss, focusing on food intake and behavioral changes. On Tuesday's call, Comonte acknowledged the surge of GLP-1 usage, but added that they are 'a medication, not a miracle.' According to a recent Kaiser Family Foundation poll, roughly 6% of U.S. adults are currently taking GLP-1 for weight loss, and the effects are impressive. A 2022 study found that people who received weekly semaglutide injections lost an average of about 15 pounds after three months. Over the last couple of years, some insurance providers have announced they would no longer offer coverage for weight-loss medications like Ozempic. In response, some have begun turning to telehealth companies like Ro, G-Plans Direct, and Remedy Meds — all of which offer virtual prescriptions for different weight-loss drugs, as well as other health services. It's a tough time to compete with new weight-loss drugs; different payment plans are available, treatments are more accessible for people without insurance, and telehealth companies are offering easier paths towards getting a prescription. Still, the GLP-1 landscape can be difficult to navigate. Advertisement Here's the skinny on the telehealth companies worth considering. Looking for a headline-worthy haul? Keep shopping Post Wanted. This article was written by Miska Salemann, New York Post Commerce Writer/Reporter. As a health-forward member of Gen Z, Miska seeks out experts to weigh in on the benefits, safety and designs of both trending and tried-and-true fitness equipment, workout clothing, dietary supplements and more. Taking matters into her own hands, Miska intrepidly tests wellness products, ranging from Bryan Johnson's Blueprint Longevity Mix to home gym elliptical machines to Jennifer Aniston's favorite workout platform – often with her adorable one-year old daughter by her side. Before joining The Post, Miska covered lifestyle and consumer topics for the U.S. Sun and The Cannon Beach Gazette.
Business Journals
08-05-2025
- Business
- Business Journals
WeightWatchers files for bankruptcy
Story Highlights WW International filed for bankruptcy to eliminate $1.15 billion in debt while continuing operations. The company has pivoted toward clinical weight loss solutions, including GLP-1 drugs. Leadership and strategic shifts have reshaped WW in recent years. WW International (NASDAQ: WW) has declared bankruptcy to eliminate $1.15 billion in debt, a move the company said will position WeightWatchers for long-term growth and success. WeightWatchers said operations will continue with no impact on its more than three million members worldwide. UNLOCK EVERY ARTICLE Get Started For Only $9 GAIN ACCESS TO EVERY LOCAL INSIGHT, LEAD AND MORE! Become A Member The 60-year-old company, developed around a behavior modification and community support model, pivoted in April 2023 to also offer clinical weight loss solutions including GLP-1 drugs, acquiring subscription telehealth platform Sequence (now WeightWatchers Clinic) for $132 million. The global market for GLP-1 drugs like Novo Norodisk's Ozempic and Wegovy and Eli Lilly's Zepbound is estimated to grow from $49.3 billion in 2025 to $157.5 billion by 2035. Sima Sistani, who was CEO of WW during the Sequence acquisition, said at the time that WeightWatchers was at a 'pivotal point' and that offering clinical interventions was 'a natural next step' for the weight loss company. In May 2023, competitor Noom followed suit, announcing that it was launching a program that included access to a suite of telehealth services and weight-loss drugs along with its psychological tools for weight loss. Oprah Winfrey, a long-time WW spokesperson and member of the company's board of directors since 2015, disclosed in 2023 that she was taking a weight-loss medication and resigned down from the WW board in February 2024 to avoid any appearance of conflict of interest. Winfrey had acquired a 10% stake in WeightWatchers in 2015, but sold most of her shares in 2023, later donating the rest to the National Museum of African American History and Culture. Sistani left the company in September 2023 after second-quarter results showed net income down 54.2% to $23.3 million and a 6.1% drop in subscribers. Current CEO Tara Comonte, then a member of the WW board, stepped in the fill the top role on an interim then permanent basis. Comonte was previously CEO of TMRW Life Sciences, a technology company in the reproductive health sector. "The decisive actions we're taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape," Comonte said. There has been an increasing push for employers to offer obesity treatments, including anti-obesity medications, as part of their health plans. The Alliance for Women's Health and Prevention called in an open letter to employers in March for coverage for all types of care, from medications to bariatric surgery and nutritional guidance. But some employers have pushed back, citing the high cost of GLP-1 medications. WeightWatchers has launched a dedicated web page for members to get more information about the court-supervised restructuring process at
Yahoo
07-05-2025
- Business
- Yahoo
WeightWatchers declares bankruptcy as people embrace weight loss drugs
WeightWatchers has filed for bankruptcy as more Americans turn to weight loss drugs to slim down. The 62-year-old weight loss program's parent company, WW International, announced Tuesday that it aims to eliminate $1.1 billion in debt as part of the Chapter 11 filing and to focus on expanding its fledgling telehealth business. Services to WeightWatchers customers will continue uninterrupted, the company said. "Our existing debt has been a significant burden on the business for many years and has resulted in approximately $100 million of annual interest payments in each of the last two years," WeightWatchers CEO Tara Comonte said in a call on Tuesday to discuss the company's restructuring plans. WeightWatchers said it expects to complete the reorganization in 40 days and emerge as a publicly traded company. WeightWatchers has more than 3 million members worldwide. The company also offers prescription weight-loss medication through its "WeightWatchers Clinic" subscription program. "Importantly, WeightWatchers remains fully operational with all of our offerings and services, including our workshops, our app and our telehealth business, continuing to operate with no interruption during this reorganization process and beyond," Comonte said in the call. "To repeat, there will be no impact to our members or the plans they rely on to support their weight management goals or to our teams." WeightWatchers on Tuesday reported revenues of $186.6 million for the first quarter of 2025, down 9.7% compared to the period a year ago. The company had fiscal-year 2024 revenue of $785.9 million, less than half of its revenues in 2018. Sneak peek: The Depraved Heart Murder Why Hegseth is calling for cuts to senior ranks across U.S. military Analyzing Trump's announcement of ceasefire with Houthi rebels in Yemen
Indianapolis Star
07-05-2025
- Business
- Indianapolis Star
WeightWatchers files for Chapter 11 bankruptcy: What to know
WeightWatchers announced Tuesday it has filed for bankruptcy in an effort to "bolster its financial position" and "better serve its millions of members around the world." The company, now called WW International, said on May 6 the bankruptcy will eliminate just over $1 billion in debt from the company's balance sheet and "position WeightWatchers for long-term growth and success." WW International said it expects to emerge from the process in approximately 45 days and intends to remain a publicly traded company. "The decisive actions we're taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape," said Tara Comonte, CEO of WeightWatchers, in a news release. "As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed, and holistic solutions—grounded in community support and lasting results—has never been stronger, or more important," Comonte said. Reuters reported in April 2025 that WeightWatchers' stock, which traded as high as $100 in 2018, lost most of its value last year as the company faced revenue declines, liquidity concerns, and celebrity shareholder Oprah Winfrey's decision to exit its board. According to Reuters, WeightWatchers has struggled to stay relevant as effective weight-loss drugs, such as Opzempic, have soared to popularity. The company acquired subscription-based telehealth platform Sequence in April 2023 in order to expand into obesity drug prescriptions. WW International did not immediately respond to a USA TODAY request for comment. Will there be any impact to WeightWatchers members? The company said in the news release that operations will continue "with no impact to its more than three millions members worldwide." "WeightWatchers remains fully operational during the organization process and there will be no impact to members or the plans they rely on to support their weight management goals," the company said. According to WW International the WeightWatchers model of care, including its weight loss program, telehealth offering, and virtual and in-person workshops will remain available for members.
