MindBody reports increased revenue, smaller net loss in 3rd quarter

MindBody Inc., a San Luis Obispo company that sells business management software for the health and wellness industry worldwide, on Wednesday reported total revenue of $35.3 million with a net loss of $5.9 million for the third quarter, which ended Sept. 30.

Total revenue was up by 35 percent, and net loss attributable to common stockholders was down by 38 percent from the same period a year ago — in the third quarter of 2015, total revenue was $26.1 million, and net loss was $9.6 million.

The company added 2,795 subscribers — a 20 percent increase — during the third quarter and now serves 58,500 subscribers worldwide, according to a company news release.

“We are pleased with our execution this quarter, highlighted by 35 percent year-over-year revenue growth and strong subscriber growth while continuing to improve margins,” Brett White, chief operating officer and chief financial officer, said in the release. “We continue to have a huge opportunity in front of us as we expand our leadership position in the wellness services industry.”

CEO and co-founder Rick Stollmeyer noted, “Additionally, we saw excellent growth in adoption and engagement across our platform and completed the acquisition of HealCode, one of our most successful technology partners.”

MindBody primarily offers bill payment, instructor scheduling and customer sign-up software services to fitness and wellness studios. HealCode connects a business customer’s website or Facebook page to its MindBody account, so their clients can sign up for classes or make appointments without leaving the website or Facebook page.

Other business highlights for the third quarter, according to the company:

▪  Subscription and services revenue was $21.2 million, up 33 percent year over year.

▪  Payment revenue was $13.5 million, up 41 percent.

▪  Average monthly revenue per subscriber grew 12 percent year over year, to about $204.

▪  MindBody and Under Armour launched a new integration to the MyFitnessPal app to provide people with direct access to nearby fitness classes nationwide.

▪  MindBody appointed Cipora Herman to its board of directors. Herman is former CFO of the San Francisco 49ers and former vice president of finance at Facebook.

This story was originally published October 27, 2016 at 4:40 AM with the headline "MindBody reports increased revenue, smaller net loss in 3rd quarter."