Medifast, the mother or father firm of direct promoting group OPTAVIA, introduced a return to historic norms for buyer retention charges, leading to third quarter income of $390.4 million, with income per energetic incomes coach averaging $5,897, down from $6,773 throughout the identical quarter final yr. OPTAVIA Coaches now quantity greater than 66,000, an 8.5% improve from the third quarter of 2021.
Internet earnings for the corporate was $36.2 million with gross revenue reducing 7.9% to $282.8 million, down from $307.1 million throughout the third quarter of 2021. The corporate pointed to a discount within the variety of prospects supported by every OPTAVIA Coach, plus inflationary pressures. As a share of income, gross revenue was 72.5%, in comparison with 74.3% in the identical quarter of 2021.
“We’ve seen quicker than anticipated enchancment in buyer retention charges again to quarterly historic norms, as we give attention to delivering a high-quality expertise for all prospects,” stated Dan Chard, Medifast Chairman and Chief Govt Officer. “On the similar time, the world is in a interval of financial disruption proper now, and that’s impacting spending ranges and buyer acquisition at consumer-facing corporations. We’re going to see the residual impact of that on coach productiveness and high line income as we transfer by means of the fourth quarter. Nevertheless, our extremely variable value construction allows us to keep up stable earnings and money movement, strengthen our resiliency, and spend money on necessary development initiatives for the long run. We proceed to foster a deep connection between prospects, OPTAVIA Coaches and the broader OPTAVIA Group, and that’s mirrored in Euromonitor naming OPTAVIA because the main weight reduction program by income within the U.S. for 2021. We’re excited by the chance that lies forward, and we stay assured in our capability to drive constant development for a few years to return.”
The corporate’s money and money equivalents totaled $69.7 million with no interest-bearing debt. Full-year 2022 income is now anticipated to be within the vary of $1.51 billion-$1.59 billion, a lower from the initially introduced vary of $1.58 billion-$1.66 billion. Full-year 2022 diluted EPS is anticipated within the vary of $11.61-$13.05, down from $12.70-$14.10.
