Its merger with Myx Fitness allows Daikeler to hedge his bets by repositioning Beachbody as an integrated home fitness company competing with the likes of Peloton and iFIT, the parent company of NordicTrack and ProForm. While Beachbody’s $864 million in sales last year were an improvement on the $756 million in 2019, they represent a steep drop from the $1 billion that Beachbody told Forbes it had in 2017 revenues. Still, the company is investing further in the nutrition market with a celebrity-backed health food play: In December 2020, it acquired LeBron James and Arnold Schwarzenegger's sports nutrition company Ladder for $28 million. The shake business, though, drew legal scrutiny a few years ago: In 2017, following an investigation by the city attorney of Santa Monica, the company reached an agreement to pay a $3.6 million settlement and agreed to stop making certain health claims about its shakes. Live fitness also presents an opportunity for Beachbody to diversify beyond health foods, supplements and its Shakeology drinks, which brought in two thirds of overall revenue in 2019. (Congdon’s roughly 6% stake in Beachbody is worth about $220 million as of 9:45 am ET). In early 2019, Congdon started Openfit, another live fitness class service priced at $19 a month and owned by Beachbody, which also took off in 2020 and helped grow the company’s paid digital subscriptions by 53% to 2.6 million, compared to Peloton’s 3 million. While painful in the short-term-the number of coaches shrank from 450,000 in 2016 to 340,000 in 2018-that strategy paid off in 2020, when the pandemic shut gyms across the country and people turned to live-streamed workouts and home fitness. In 2015, Daikeler took a risky bet by launching Beachbody on Demand, a Netflix-like service offering the company's entire library of workout videos (worth $7,000 if you purchased them all) for $99 a year. Daikeler and Congdon built the company into a multilevel marketing giant with more than 400,000 “coaches” selling workout videos, weight-loss shakes and other supplements on social media. “What I learned was that solving my own problem-that I don't like to work out and I eat like a second-grader-was a scalable opportunity," he told Forbes in 2018, when his stake in the company was valued at an estimated $660 million.īeachbody’s first runaway success was P90X, a three-month boot camp that's since been extolled by the likes of Michelle Obama and former U.S.
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