{"id":762386,"date":"2023-06-08T07:05:12","date_gmt":"2023-06-08T11:05:12","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/interactive-strength-inc-d-b-a-forme-reports-first-quarter-2023-results\/"},"modified":"2023-06-08T07:05:12","modified_gmt":"2023-06-08T11:05:12","slug":"interactive-strength-inc-d-b-a-forme-reports-first-quarter-2023-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/interactive-strength-inc-d-b-a-forme-reports-first-quarter-2023-results\/","title":{"rendered":"Interactive Strength Inc. d\/b\/a FORME Reports First Quarter 2023 Results"},"content":{"rendered":"
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\n Adjusted EBITDA was a $4.4 million loss, a $6.3 million improvement versus first quarter of 2022<\/em>
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\n Average Annualized Recurring Revenue per Household at $1,650, more than three times greater versus first quarter of 2022<\/em>
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\n New Note Purchase Agreement to issue up to $15.0 million in senior secured notes<\/em>
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AUSTIN, TX, June 08, 2023 (GLOBE NEWSWIRE) — via NewMediaWire<\/a> —\u00a0Interactive Strength Inc. d\/b\/a FORME (the “Company”, or \u201cFORME\u201d) (NASDAQ: TRNR), today announced its financial results for the first quarter of 2023.<\/p>\n

The Company incurred a net loss of $16.0 million for the first quarter of 2023, or a loss of $2.09 per diluted share, as compared with a net loss of $12.7 million, or a loss of $43.81 per diluted share for the same period in 2022, due primarily to expenses incurred in connection with the Company\u2019s IPO.<\/p>\n

Adjusted EBITDA, a non-GAAP financial measure, was a $4.4 million loss for the quarter. Adjusted EBITDA for the first quarter reflects $14.6 million of non-cash stock-based compensation. For more information regarding the non-GAAP financial measures discussed in this press release, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.<\/p>\n

\n CEO Comments<\/strong>
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Trent Ward, co-founder and CEO of FORME, said, \u201cWe are excited to be presenting our first quarter results as a public company, and to announce additional funding on attractive terms that underscore the potential of FORME\u2019s combination of premium smart home gyms and virtual personal training.<\/p>\n

\u201cThere was a lower level of hardware products installed in the quarter as we were managing working capital closely leading up to the IPO at the end of April. As a result, we ended the quarter with a backlog of sold but not yet installed hardware products. We did announce a few key partnership opportunities recently with Signa Sports United, a specialist sports e-commerce company with more than 80 online sites serving over 6 million customers worldwide, and Aethos hotels.<\/p>\n

\u201cThe average annualized recurring revenue per household more than tripled to $1,650, reflecting the impact of our strategy to introduce higher revenue training services to our premium smart home gyms. We believe this focus on generating significantly higher recurring revenue per customer than our peers will be the biggest driver toward\u00a0our future profitability.<\/p>\n

\u201cImportantly, we were also able to demonstrate strong control of operating expenses. Although our total operating expenses on a GAAP basis was $19.6 million in the first quarter of 2023 as compared to $10.1 million for the same period in 2022, we reduced non-GAAP total operating expenses, which excludes depreciation and amortization, stock-based compensation expense and IPO readiness costs and expenses, for the first quarter of 2023 to $3.6 million from $9.4 million for the same period in the prior year, a 62% reduction. We expect to generally maintain consistent operating expense levels during the rest of 2023 and plan to continue to manage costs appropriately to allow for the operational leverage inherent in our technology platform.<\/p>\n

\u201cWhen combined with the proceeds from the IPO, we believe the proceeds from the senior loan we signed this week should fund the Company well into 2024 and are a testament to the exciting business we are building.\u201d<\/p>\n

\n Note Purchase Agreement<\/strong>\n <\/p>\n

On June 6, 2023, the Company signed a note purchase agreement to issue senior secured notes (the “Notes”) with gross proceeds to the Company of up to $15.0 million. The lead investor has committed to purchase at least $7.5 million of the Notes and the Notes have a two-year maturity, at 10.0% interest per annum, and with a 5.0% original issuance discount, representing a total cost of debt of 12.5% over the term of the Notes.<\/p>\n

\n About Interactive Strength Inc.<\/strong>\n <\/p>\n

Interactive Strength Inc. (NASDAQ: TRNR) d\/b\/a Forme is a digital fitness platform that combines premium connected fitness hardware products with personal training and coaching (from real humans) to deliver an immersive experience and better outcomes for both consumers and trainers. We believe we are the pioneer brand in the emerging sector of virtual personal training and health coaching and that our products and services are accelerating a powerful shift towards outcome-driven fitness solutions. The company is headquarters in Austin, Texas, USA. Visit formelife.com\u00a0for more information, and connect with Forme on Facebook<\/a>,<\/u> and Instagram<\/a>.<\/u><\/p>\n

\n Channels for Disclosure of Information<\/strong>\n <\/p>\n

In compliance with disclosure obligations under Regulation FD, we announce material information to the public through a variety of means, including filings with the Securities and Exchange Commission (\u201cSEC\u201d), press releases, company blog posts, public conference calls, and webcasts, as well as via our investor relations website. Any updates to the list of disclosure channels through which we may announce information will be posted on the investor relations page on our website. The inclusion of our website address or the address of any third-party sites in this press release are intended as inactive textual references only.<\/p>\n

\n Non-GAAP Financial Measures<\/strong>\n <\/p>\n

In addition to our results determined in accordance with accounting principles generally accepted in the United States, or GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance.<\/p>\n

The Company’s non-GAAP financial measure in this press release consist of Adjusted EBITDA, which we define as net (loss) income, adjusted to exclude: other expense (income), net; income tax expense (benefit); depreciation and amortization expense; stock-based compensation expense; vendor settlements; and IPO readiness costs and expenses.<\/p>\n

The Company believes the above adjusted financial measures help facilitate analysis of operating performance and the operating leverage in our business. We believe that these non-GAAP financial measures are useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:<\/p>\n