SLO-based Mindbody reports third-quarter net loss, record revenues

MindBody CEO Rick Stollmeyer celebrates as the San Luis Obispo software company goes public Friday, June 19.
MindBody CEO Rick Stollmeyer celebrates as the San Luis Obispo software company goes public Friday, June 19. SanLuisObispo

MindBody Inc., a global company based in San Luis Obispo, reported a third quarter net loss Wednesday of $9.6 million, compared to a net loss of $7.7 million in the same quarter last year. Total revenue was $26.1 million, up 48 percent from the year-earlier period.

Net loss attributable to common stockholders was $9.6 million in the third quarter, compared to $11.36 million a year ago, when taking into account a one-time accretion of redeemable convertible preferred stock totaling $3.6 million, the company reported.

"Our business continued to deliver excellent results in the third quarter," said MindBody co-founder and CEO Rick Stollmeyer in a news release. He cited record revenues, subscriber growth and improving margins year over year.

The company, which went public in June, sells business management software for clients in the health and wellness industry.

The company also said it anticipates fourth quarter revenue in the range of $27 million to $28 million, representing growth of 34 percent to 39 percent over the year-earlier quarter.

For the full year, MindBody expects to report revenue in the range of $100.1 million to $101.1 million, a 43 percent to 44 percent growth over 2014.

Gross profits rose to nearly $16.5 million in the third quarter of this year from about $9.5 million in the same quarter last year but expenses grew too

“Our SaaS (software as a service) platform attracted several new industry partnerships that will enable us to deliver even more value to our customers moving forward,” Stollmeyer said. “These results represent the growing influence of our platform and the continuing success of our growth strategy."

MindBody partnered with Fitbit, the leader in the connected health and fitness market, enabling users to automatically track results of any workout booked within Mindbody's global wellness network, integrating personal activity data from their Fitbit account with the Mindbody Connect app, according to the news release.

In October, MindBody began rolling out its global integration with Xero, a global company specializing in cloud accounting software for small businesses. This allows Mindbody subscribers to sync their sales data with Xero's cloud accounting solution.

Mindbody partnered with Lending Club, a large online marketplace connecting borrowers and investors, providing MindBody subscribers with broader access to affordable small business loans, the press release said.

MindBody partnered with Ayden, a global payments technology firm, to integrate with iDEAL, SOFORT Banking and Giropay, offering additional online payment methods in 13 European countries.

MindBody has more than 48,000 business subscribers in more than 130 countries and territories. Those subscribers offer wellness services to more than 27 million active consumers.

Other third-quarter financial results include:

* Subscription and services revenue of $16 million, a 56 percent year-over-year increase

* Payments revenue of $9.5 million, up 46 percent

* Recurring revenue — the sum of the company's subscription and services revenue and payments revenue — increased 52 percent year over year. It comprises 98 percent of the company's total revenue.

Shares of MindBody, traded under the symbol MB on NASDAQ, closed Wednesday at $15.30 a share, down 3.7 percent.

Danielle Ames: 805-781-7902