WW International, Inc. (NASDAQ:WW) Q3 2023 Earnings Call Transcript

A –Sima Sistani: I’ll just add here, Jason, Hey, it’s Seema; that we’re focused on the total commitment dollars that we are bringing in and your point on the retention is you got to remember that all the work that we’re doing on our product roadmap that has been happening throughout this year and that’s why we continue to report out on our activation rate and our engagement, which as you can see in Q2 and now in Q3, has gone up. So it would, it would follow that we would see that translating into better retention over time and the more the sign ups that we continue to bring in, that starts to stack and build. And so we’re really confident that we’re building towards the long term health of the business and improving engagement and retention.

A – Heather Stark: I would add too, we have every reason to believe that the commitment pricing strategy is revenue and LTV accretive both in the quarter and going forward and then the market that we’re in and with what consumers are choosing to engage on us with.We’re still in our guidance range. So it’s not just to double down on that is that we are within our guidance range and so this is playing out as we would have suspected.

Jason English: Yes. But your point is it’s too early. We’ll see that 10 month go to 12 plus. At which point, we’ll see the positive payback. It’s just it’s too early to see it, wait for it, trust you.That’sis that a fair summation?

A –Sima Sistani: That’s a fair explanation.

Jason English: Cool. I’ve taken too much time already. I’ll let somebody else have a shot.

Operator: Next question comes from Lauren Schenk from Morgan Stanley.

Q –Nathan Feather: Hey, everyone. This is Nathan Feather on for Lauren. Congrats on the results. Can you touch a little bit more on the impact of limited GLP-1, what is the plan on Sequence within the quarter and then understanding, in fact how should we contextualize the top of funnel demand you’re seeing in that Sequence and how that compares, from last quarter and when you acquired the asset?

A –Sima Sistani: Thanks Nathan. Yeah, so the supply story here is still not a positive one. The shortages are continuing, and we’re seeing that pressure, but again, we had anticipated that happening through the back half of this year and so really pleased that we’ve been able to continue to grow the business and we’re up 23%, up 90% since the acquisition, and I think that that growth rate, we believe it exceeds the growth rate of the total number of GLP-1 prescriptions dispensed, then you can attributed that to our ability to manage people through the shortage supply environment, the tech platform helps with insurance approvals and then also the infrastructure is high support, helping people to actually find supply when available and continuing to then move them throughout the wide formulary when it’s not available, And so we’re pleased to see that we’ve been able to continue to keep that flywheel going while we have heard some promising news, this morning, obviously, from Lilly and Novo about what you expect moving forward.

Operator: The next question comes from Linda Bolton Weiser of D.A. Davidson.

Linda Bolton Weiser: Yes. Hi. So just on the Sequence numbers, I guess the subscriber number was quite a bit higher than we expected, but the revenue was actually lower.So is there something going on in terms of the realized subscription revenue per month, per subscriber or something like that. I’m just trying to figure out, like, what’s going on there.

A – Heather Stark: Hi, Linda.I believe our revenue number was right on consensus. So I’m not sure what you’re seeing and I also just before we take the next question, wanted to reiterate, I misstated a number earlier to clarify our revenue guidance is $890 million to $910 million.Just wanted to make sure I clarified my statement.