Beachbody's Public Market Debut Was 22 Years in the Making

The Beachbody Company, a provider of at-home fitness products and services, is not yet a household name—but that could change following its June 28 debut on the public markets. That's because a three-way merger with special purpose acquisition company (SPAC) Forest Road and connected fitness provider Myx Fitness—the latter a Peloton competitor—gives the business visibility it has not had since its journey began in 1998. Beachbody's listing on the New York Stock Exchange is an opportunity for people to understand the umbrella brand, founder and CEO Carl Daikeler told Adweek. It's quite a feat for Beachbody, which began life as a company that produced workouts for VHS tapes back when Friends, not Schitt's Creek, was the television comedy on everyone's lips. "I think Beachbody is the best-kept secret in fitness and nutrition," Daikeler said. Being a relative unknown, however, hasn't affected the fitness company's ability to grow over time: It's on track to achieve sales approaching $1 billion this year, based on its first-quarter results. Credit Daikeler, who's always believed the future is in home fitness. That vision has paid off during a pandemic limiting consumers to their homes: Daikeler now confidently calls his company "the Netflix of fitness." Growing numbers Proof of the company's success is in the numbers. During the first quarter (which ended March 31), revenue for Beachbody increased 43% from the prior year to about $243 million. Sales were generated within a mix of categories, including nutritional supplements, digital content and connected fitness, all of which are growing by at least double-digit percentages. The company also increased double digits last year as well, on top of more than two decades of steady growth. "We have built a truly differentiated subscription health and wellness company, predominantly funded by the cash flow," Daikeler said in statement. "Today, we have 3.2 million total digital and nutritional subscriptions, a deep content library and a 22-year track record of growth." A focus on community What differentiates Beachbody from competitors is it focuses on the quality of the training and how to eat right, rather than asking its members to mimic what a fitness instructor is doing on a screen, Daikeler said. The other important aspect for Beachbody is its community, he added, which helped users overcome feelings of isolation during the pandemic and provided an important support group holding members accountable to their fitness goals. "The inspiration of seeing friends and neighbors succeed is the thing that convinces people it's time for them to change," Daikeler explained. The inspiration of seeing friends and neighbors succeed is the thing that convinces people it's time for them to change.Carl Deikeler, founder and CEO, The Beachbody Company While the company's model includes a multilevel marketing approach, it doesn't ask members to buy inventory, but merely to recommend products. In fact, Beachbody considers itself a direct-to-consumer business. "What’s beautiful about this model is it’s social commerce," Daikeler said, noting members receiving a commission when a reference or recommendation leads to the sale of a product. "To get me to be consistent with diet and exercise, I need other people." Members are merely given the opportunity to monetize their choice to live a healthier lifestyle through this business model, Daikeler claimed. From VHS to digital Beachbody believes the trend towards at-home fitness will continue post-pandemic, with consumers preferring the convenience of working out at home. Daikeler said it doesn't really make sense to spend as much or even more time getting to and from a workout than the length of the workout itself. But whatever direction fitness heads in the future, Beachbody plans to be a leader, which is a fair goal for a company that evolved from VHS and infomercials to DVDs to digital and connected fitness. To bolster its future prospects, Beachbody now is looking toward connected fitness provider Myx, which offers a bike that has been characterized as on par with Peloton, but at half the cost. "Innovation is never static, so we’re not really looking for a new normal," Daikeler said. To advise it, the company added Kevin Mayer, who was previously the CEO of TikTok and chief strategy officer for Disney, to its board of directors. "With a subscription base that is the largest in connected fitness, supported by a founder-led management team that has proven its ability to innovate, I could not be more thrilled to join the board and help guide this company in its next chapter of growth," Mayer said in a statement. Peloton’s Stylish Post-Lockdown Ad Asserts the Value of Exercising at Home

Health and Wellness

Beachbody's Public Market Debut Was 22 Years in the Making

The at-home fitness provider began in VHS exercise tapes, but deems itself 'the Netflix of fitness' today

Richard Collings

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Richard Collings