Mindbody reports revenue of $42.2 million for first quarter of 2017

MindBody CEO Rick Stollmeyer rings the bell at the Nasdaq exchange on the first day of trading for his company’s stock in 2015.
MindBody CEO Rick Stollmeyer rings the bell at the Nasdaq exchange on the first day of trading for his company’s stock in 2015.

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 $42.2 million for the first quarter of 2017, up 32 percent from the same period a year ago. Net loss for the quarter ending March 31 was $3.9 million, compared with a net loss of $6.6 million in the year-earlier period.

The company also added 12 percent more subscribers in the first quarter than it had in the first quarter of 2016, according to a company news release.

“We had a strong start to the year, with positive early returns from our high value subscriber growth strategy, the nationwide rollout of our Google integration, and the timely acquisition of Lymber (Wellness),” CEO and co-founder Rick Stollmeyer said in the news release. “These developments reflect our focus on accelerating business and consumer engagement across our platform, fueling the growth of wellness businesses worldwide and helping millions more people live healthier, happier lives.”

Brett White, chief operating officer and chief financial officer, noted, “We are pleased with our financial performance in the first quarter delivering strong revenue growth and improving margins, while achieving record ARPS (average monthly revenue per subscriber) and positive cash flow from operations.”

Other highlights for the quarter, according to the company:

▪  Subscription and services revenue was $25 million, up 30 percent year over year.

▪  Payment revenue was $16.8 million, up 38 percent.

▪  Average monthly revenue per subscriber grew 15 percent year over year, to about $230.

▪  The company expanded its Google integration to enable users nationwide to easily book fitness classes, buy intro offers, class packages and memberships directly through Google search and maps.

▪  It acquired API partner Lymber Wellness, an early-stage tech company specializing in yield management solutions for class- and appointment-based businesses.

▪  The company partnered with Weebly to provide subscribers with an easy-to-use website building and eCommerce tool that incorporates Mindbody’s branded web technology.

▪  It won the 2017 Global Mobile Award for the Best Mobile App for the Connected Lifestyle.

▪  It won the 2017 Big Innovation Award from the Business Intelligence Group for its branded mobile app solution, which allows businesses to pair their Mindbody software with the look and feel of their own brand.

Going forward, the company expects revenue for the second quarter to be between $43.6 million and $44.6 million, up 30 to 33 percent, and revenue for the entire year to be between $179 million and $182 million, up 29 to 31 percent.

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