Mindbody reports improved financial results for third quarter

Mindbody Inc., a San Luis Obispo-based company that sells business management software for the health and wellness industry worldwide, on Thursday reported increased revenue and a smaller net loss for the third quarter ended Sept. 30.

Total revenue was $46.6 million, up 32 percent from the same period a year ago. Net loss for the quarter was $3.6 million, compared with a net loss of $5.9 million in the year-earlier period.

CEO and co-founder Rick Stollmeyer noted the company’s financial discipline in announcing what the company called strong financial results.

“We had a great third quarter highlighted by the early success of our refined subscriber growth strategy,” Stollmeyer added. “Additionally, due to the improving unit economics of our subscriber base and our continued financial discipline, we generated positive non-GAAP net income for the first time.”

Non-GAAP is an alternative method used to measure the earnings of a company, rather than generally accepted accounting principles (GAAP) reporting that standardizes how companies report their finances. Non-GAAP figures could exclude irregular or noncash expenses, such as those related to acquisitions, restructuring or one-time balance sheet adjustments.

According to the release, using non-GAAP numbers, the company reported a net income of $0.7 million, compared with a non-GAAP net loss of $3.5 million in the third quarter 2016.

Other highlights for the quarter, according to Mindbody:

▪ Subscription and services revenue was $28.3 million, up 34 percent year over year.

▪ Payments revenue was $17.8 million, up 32 percent.

▪ Average monthly revenue per subscriber grew 27 percent year over year, to about $259.

▪ Its BOLD 2017 conference last month in San Diego brought together more than 1,300 business owners, practitioners and experts from across the wellness services industry to see new products and the latest software improvements, network and share best business practices.

▪ It launched dynamic pricing technology in the Mindbody app, under “Last Minute Offers,” giving customers the opportunity to fill more spots in their classes and optimize their revenue by adjusting prices based on consumer demand.

Looking ahead, the company expects revenue for the fourth quarter to be between $48.5 million and $49.5 million, up 27 to 30 percent, and revenue for the entire year to be between $181.4 million and $182.4 million, up 31 percent. The company expects the net loss for the year to be $1 million or less. It reported a net loss of $23 million in 2016.

Mindbody’s stock closed Thursday at $28.35 per share, down .18 percent.

This story was originally published October 26, 2017 at 4:12 PM with the headline "Mindbody reports improved financial results for third quarter."