Business

MindBody’s second-quarter revenue up 36 percent

Mindbody is headquartered on Tank Farm Road in San Luis Obispo.
Mindbody is headquartered on Tank Farm Road in San Luis Obispo. dmiddlecamp@thetribunenews.com

San Luis Obispo-based MindBody Inc., which sells business management software for clients in the health and wellness industry, on Wednesday reported second-quarter revenue of $33.6 million, up 36 percent from the previous year, and a net loss attributable to common stockholders of $6.6 million. It reported a net loss of $13.3 million attributable to common stockholders in the second quarter of last year.

“The second quarter produced excellent results, highlighted by consistently strong revenue growth and substantial improvement on the bottom line,” co-founder and CEO Rick Stollmeyer said in a news release.

“In particular, we are pleased with our traction among higher-value subscribers,” he said. Stollmeyer noted that these businesses range from independent practitioners to multilocation enterprise businesses.

MindBody has more than 55,000 business subscribers in more than 130 countries and territories, providing wellness services to about 31 million active consumers.

Chief Financial Officer Brett White, who recently took on the additional role of chief operating officer, noted that the company has experienced robust growth in both brick-and-mortar subscribers and payments volume.

“We had a successful second quarter,” White said in the news release, adding that the results demonstrate the ongoing strength of the wellness services market.

Rick Stollmeyer, co-founder and CEO of Mindbody, leads a tour of the San Luis Obispo-based software company's headquarters on Tank Farm Road in April 2015.

Other business highlights the company noted:

▪  The number of end-of-period subscribers grew 22 percent year over year to 55,771.

▪  Average monthly revenue per subscriber grew 9 percent year over year to about $202.

▪  Payments volume increased 29 percent year over year to about $1.6 billion.

▪  MindBody and sports apparel and accessories manufacturer Under Armour have entered into a strategic partnership.

MindBody said it expects third-quarter revenue this year in the range of $34.5 million to $35.5 million, representing growth of 32 to 36 percent over the year-earlier quarter.

For the full year, MindBody expects to report revenue in the range of $137 million to $139 million, up 35 percent to 37 percent over 2015.

It expects a net loss ranging from $4 million to $5 million in the third quarter, and a net loss between $16.3 million and $18.3 million for the full year.

Shares of MindBody, traded under the symbol MB on Nasdaq, closed Tuesday at $17.26 per share, up 0.47 percent.

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