Latest news with #TaraComonte
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.
Sky News
08-05-2025
- Business
- Sky News
WeightWatchers files for bankruptcy - what went wrong?
WeightWatchers has filed for bankruptcy. The diet brand, which was founded more than 60 years ago, said on Tuesday that it was filing to write off $1.15bn of debt and to focus on transitioning into a remote telehealth services provider. Founded in 1963 by American businesswoman Jean Nidetch, the company aims to help members monitor their diets by using a points system, with the goal to try and avoid foods with higher points. At its peak in 2018, WeightWatchers had 4.5 million subscribers, and its stock traded as high as $100 (£75). But it has since lost value and rebranded to become WW International. So what is behind the slimming down of WeightWatchers? Its overall revenue for the 2024 financial year was $786m (£592m), down 11.7% on the previous year. The report said the decline was "primarily driven" by recruitment challenges and the closure of the consumer products business. While the company also sells a range of ready meals, snacks and low-calorie wines, it has been primarily focused on subscribers. Big names leaving the brand In September, WW International CEO Sima Sistani resigned, and Tara Comonte was named interim chief executive. In a statement on Tuesday, she said: "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." In another blow to the company, Oprah Winfrey, a long-time ambassador, quit the WeightWatchers board last year. In March 2024 the television personality announced she had quit ahead of the airing of a special programme titled An Oprah Special: Shame, Blame And The Weight Loss Revolution, saying she did not want a "perceived conflict of interest," as she wanted to publicly discuss her use of weight-loss medication. She said she had donated all of her shares in the company to the Smithsonian Museum Of African American History And Culture. Targeting the younger generation The company has also struggled to attract younger customers. In an attempt to do so in 2018, WeightWatchers bought the app Kurbo. A year later, it launched the platform to the public, aimed at helping children aged between eight and 17 create healthy habits. The app followed a paediatric weight control programme made by Stanford University and offered 15-minute personal training sessions as a way to log food intake and recipes. However, it was met with criticism by celebrities, including actress and activist Jameela Jamil, nutritionists and members of the public, who raised concerns it would make children obsessed with weight and counting calories. 1:22 The influence of weight loss injections WeightWatchers has also been struggling to keep up as a key player in the industry due to the introduction of effective weight loss drugs, including Wegovy, created by Danish pharmaceutical company Novo Nordisk. The drug soared in popularity by offering a quicker fix to obesity, which is a growing health concern around the globe. Some people also take Ozempic to lose weight. The medication, also used to treat Type 2 diabetes, slows down how quickly food is digested and can reduce appetite, making people eat less. Both Ozempic and Wegovy are different brand names for the same injectable drug, semaglutide. The drug works by making you feel fuller for longer. To try and compete with the booming industry, WeightWatchers bought subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions. In its latest earnings report on Tuesday, WeightWatchers' first-quarter revenue declined 10% while its loss on an adjusted basis totalled 47 cents per share. However, it clinical subscription revenue - or weight-loss medications - jumped 57% year over year to $29.5m. WW International has said it expects to emerge from bankruptcy within 45 days, if not sooner.
IOL News
08-05-2025
- Business
- IOL News
WeightWatchers files for bankruptcy: What it means for South Africa
Understanding WeightWatchers' bankruptcy and its implications for South Africa Image: WeightWatchers Long a household name in dietary aids, 62-year-old WeightWatchers has filed for what US law essentially calls reorganisation bankruptcy – similar to South Africa's business rescue process. However, the process the self-styled 'global leader in science-backed weight management' company is putting itself through is hardly likely to affect any South Africans, given that there is no longer any mention of workshop locations in the country. In addition, IOL's research found that a Facebook group post from February 2024 showed that that WeightWatchers ceased operations in here around that time. There is no information as to why it ended its presence in South Africa, where it launched in 1990. At one stage, the weight-loss programme had a partnership with Discovery Health through its Vitality wellness programme, which provided Discovery Vitality members with benefits, such as discounts on membership. However, this specific benefit with Discovery Vitality ended towards the end of 2017. CEO Tara Comonte said in a statement that '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'. The company faces competition from several areas, including commercial weight-loss programmes, digital health and wellness platforms, as well as medicine such as those developed by Novo Nordisk and Eli Lilly & Company – which recently took the market by storm. WeightWatchers International – officially WW as of 2019 – 'remains fully operational during the reorganisation process and there will be no impact to members or the plans they rely on to support their weight management goals,' it said. The company also stated that its holistic model of care, including being recommended by doctors, its telehealth offering with access to obesity-trained clinicians and prescription weight-loss medications, and virtual and in-person workshops, remain available. South Africans can still access the Weight Watchers program through the international website according to WeightWatchers. Headquartered in New York, the company this week explained that the bankruptcy would enable it to 'bolster its financial position, increase investment flexibility in its strategic growth initiatives, and better serve its millions of members around the world'. WeightWatchers said in a statement this week that the bankruptcy filing will eliminate $1.15 billion (about R21bn) in debt from its balance sheet and position it for 'long-term growth and success'. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
Yahoo
08-05-2025
- Business
- Yahoo
WeightWatchers files for bankruptcy protection to eliminate over $1 billion in debt
WeightWatchers said Tuesday it is filing for Chapter 11 bankruptcy protection to eliminate $1.15 billion in debt and focus on its transition into a telehealth services provider. Parent WW International Inc. said it has the support of nearly three-quarters of its debt holders. It expects to emerge from bankruptcy within 45 days, if not sooner. WeightWatchers, which was founded more than 60 years ago, has struggled recently. In 2023, the company moved into the prescription drug weight loss business — particularly with the $106 million acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps users get prescriptions for drugs like Ozempic, Wegovy and Trulicity. Its latest earnings report Tuesday showed that first-quarter revenue declined 10% while its loss on an adjusted basis totaled 47 cents per share. However, clinical subscription revenue — or weight-loss medications — jumped 57% year over year to $29.5 million. In September, WW International CEO Sima Sistani resigned, and the New York company named Tara Comonte, a WeightWatchers board member and former Shake Shack executive, interim chief executive. Comonte, now CEO, said in a statement Tuesday that, '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.' Shares of the company have traded at under $1 since early February. In after-hours trading, the stock plunged by half to 39 cents. The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware. More national news Read the original article on MassLive.
