WW International (NYSE:WW) shares jumped Tuesday.
\The firm, which is also known as WeightWatchers, said it’s acquiring Sequence, a subscription telehealth platform with a focus on chronic weight management, for a net purchase price of $106 million. The deal is expected to close during the second quarter of 2023.
Separately, WW International announced its fourth-quarter and full-year results.
Revenue of $223.9 million (-18.9% Y/Y) misses by $0.7 million. End of Period Subscribers of 3.5 million
Operating Loss of $50.8 million primarily due to $57.6 million in non-cash intangible impairment charges for Franchise Rights Acquired and Goodwill; Adjusted operating income of $24.2 million excluding the impact of such impairment charges and the net impact of restructuring charges. In terms of guidance, eevenues are expected to be approximately $235.0 million. Operating Loss, which includes approximately $20.0 million in restructuring charges, is expected to be in the range of ($30.0) million to ($35.0) million.
Obesity is a complex, chronic condition, and, for some, prescription medications can be helpful in addressing the biological components of obesity. Medical experts recommend pairing these medications with a science-backed lifestyle modification program for long-term weight management and overall health. 1-5
Since its launch in late 2021, Sequence has quickly grown into an approximately $25 million annual revenue run-rate business serving approximately 24,000 members across the U.S. as of February 2023. Sequence has a highly efficient operating model and recently turned cash flow positive, while continuing to drive strong growth primarily through word of mouth.
WW shares popped $1.23, or 31.8%, to $5.10.
