Business

MindBody revenues up, losses down after a ‘great year’ in 2016

MindBody CEO Rick Stollmeyer stands outside the company headquarters in San Luis Obispo. The company provides business management software for spas, salons, yoga and fitness studios.
MindBody CEO Rick Stollmeyer stands outside the company headquarters in San Luis Obispo. The company provides business management software for spas, salons, yoga and fitness studios. dmiddlecamp@thetribunenews.com

MindBody Inc., a San Luis Obispo company that sells business management software for the health and wellness industry worldwide, on Thursday reported total revenue of $139 million in 2016, a 37 percent increase over revenue in 2015. Net loss for the year was $23 million, down 48 percent from 2015.

Revenue in the fourth quarter was $38.2 million, up 35 percent, and net loss attributable to common stockholders was $3.9 million, down 60.2 percent from the same period a year ago. In the fourth quarter of 2015, revenue was about $28.3 million, and net loss was $9.8 million.

The company ended the year with 60,385 subscribers — a 17 percent increase over 2015, according to a company news release.

“2016 was a great year for MindBody, with strong growth in high-value subscribers, particularly in our fitness and salon/spa markets, impressive expansion of the MindBody Network marketing platform and an 82 percent increase in MindBody app registered users,” CEO and co-founder Rick Stollmeyer said in the news release. “These successes combined with increasingly powerful partnerships and improving margins give us a great deal of confidence and excitement for the year ahead.”

Brett White, chief operating officer and chief financial officer, noted, “We exited 2016 with significant business momentum, accelerating payments revenue and volume growth, and record ARPS and gross margin. We are very pleased to have achieved adjusted EBITDA (earnings before interest, tax, depreciation and amortization) profitability in the fourth quarter, one quarter ahead of our guidance.”

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Other highlights for the year, according to the company:

▪  Subscription and services revenue was $82.9 million, up 35 percent year over year.

▪  Payment revenue was $53.8 million, up 44 percent.

▪  Average monthly revenue per subscriber grew 15 percent year over year, to about $212.

▪  MindBody partnered with Google to enable their users to easily book fitness classes directly through Google Search and Maps.

▪  The company released a new custom-branded web solution, developed from the recently acquired HealCode products, which provides MindBody subscribers with the ability to fully brand their customers’ online experience, from web to social to mobile.

▪  MindBody was named to Deloitte’s 2016 Technology Fast 500, ranking 338 on the list of the 500 fastest-growing technology, media, telecommunications, life sciences and energy tech companies in North America. It is the fifth time MindBody has appeared on the list.

▪  Adam Miller, founder and CEO of Cornerstone OnDemand, was appointed to the Board of Directors.

Going forward, the company expects revenue for the first quarter of 2017 to be between $41.6 million and $42.6 million, and revenues for the entire year to hit between $179 million and $182 million.

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