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WW International Reports Q3 Earnings: Showcases Subscription Growth and Strategic Pivot Success

WW Hits 4 Million Subscribers, Record Gross Margins, and Profitability Trajectory

WW Announces Global Launch of New PersonalPoints ProgramWW International, Inc. (NASDAQ: WW), also known as Weight Watchers, announced its third-quarter results for the fiscal year 2023 showcasing a successful pivot towards higher-margin subscriptions with a 6% year-over-year subscriber growth, reaching 4.0 million subscribers,  $214.9 million in revenue, and a record gross margin of 66.2%.

Subscriptions and Revenue Analysis

WW International reported a robust subscriber growth of 6% year-over-year, reaching 4 million subscribers by the end of Q3 2023. This growth was largely fueled by the digital business and included 45,000 Clinical Subscribers. While end-of-period Workshops + Digital Subscribers saw a slight decrease, Digital Subscribers witnessed a substantial 7.8% increase.

Net Revenues for Q3 2023 stood at $214.9 million, with subscription revenues accounting for $203.5 million or 94.65% of total net revenue. The $214.9 million in net revenue represents a decrease of 14% compared to $249.7 million in the same period last year. The decrease in revenues was influenced by the company’s strategic shift, focusing on long-term commitment plans and the phase-out of low-margin consumer products.

Even so, WW International achieved a record gross margin of 66.0% and an adjusted gross margin of 66.2%. This increase was primarily attributed to cost reduction strategies within the Workshops + Digital business and a shift towards higher-margin digital subscriptions.

“Our record-breaking gross margin reflects the success of our strategic shifts towards higher-margin digital subscriptions and cost-effective operations.” – Heather Stark, CFO, WW International

Operating income for Q3 2023 totaled $30.6 million, showing a significant improvement from the prior year’s operating loss of $254.5 million. Adjusted operating income, excluding restructuring charges, was $36.6 million, showcasing the company’s efforts toward profitable growth.

Strategic Initiatives and Future Outlook

CEO Sima Sistani highlighted four key priorities guiding the company’s strategy:

  1. Reinvigorating Core Business: Emphasizing product innovation and modern marketing strategies, leading to improved activation rates and member engagement.
  1. Clinical Expansion: Driving growth in the Clinical space, offering a portfolio of solutions to cater to diverse member needs, particularly focusing on GLP-1 medication integration. GLP-1 is a class of medications used to treat Type 2 diabetes that are also approved for weight loss. 
  1. Partnerships with Health Providers: Collaborating with health providers, payers, and employers to offer cost-effective behavioral and Clinical weight management solutions.
  1. Community Building: Enhancing both in-person and digital community experiences to broaden reach and increase member engagement and satisfaction.

The company has successfully stabilized and grown its core business, demonstrated by positive activation and engagement rates. Moreover, the Clinical subscriber base has seen significant growth despite GLP-1 medication supply constraints. WW International plans to introduce tailored programs for members on GLP-1 medication, addressing specific health needs.

Additionally, WW International’s focus on building Weight Watchers for Business aims to offer employers a cost-effective and clinically significant weight management solution, projecting substantial health outcomes and cost savings.

Financial Guidance and Future Prospects

Despite the revenue adjustment and restructuring charges, WW International remains optimistic about its fiscal year 2023 outlook. The company expects revenues at the lower end of the previously guided range of $890 million to $910 million.

Adjusted operating income guidance has been revised from $31 million to $43 million due to increased anticipated restructuring charges. However, excluding these charges and acquisition transaction costs, adjusted operating income is expected to be at the higher end of the previously provided range of $80 million to $85 million.


WW International’s Q3 earnings reflect a strategic shift towards long-term commitment plans, higher-margin subscriptions, and a strong emphasis on Clinical offerings. The company remains steadfast in its mission to drive sustainable growth through innovative solutions and strategic partnerships within the weight management industry. Smart.

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