SLO-based MindBody Inc. is optimistic about its future and profitability in the competitive world of wellness and fitness technology, despite a steep drop in the company’s stock price following its initial public offering.
The global company, which sells web scheduling and marketing software to health- and fitness-based businesses, held a conference call Aug. 4 to report and review its performance in the second quarter of 2015 with analysts, shareholders, and other interested parties. During that call, MindBody CEO Rick Stollmeyer and Chief Financial Officer Brett White remained positive about the company’s financials and future prospects, noting that revenues increased to $24.7 million this year, up 16 percent from $16.5 million the previous year.
- FILE PHOTO BY JESSICA PEÑA
- MONEY MATTERS: MindBody is confident that the company will be profitable, despite a drop in its stock price in the second quarter of 2015.
“Our second quarter produced excellent results,” Stollmeyer said.
With more than 45,000 subscriber locations, and a growing foothold in Europe, Australia, and New Zealand, Stollmeyer said the company would continue to grow in part by getting smaller, boutique fitness and wellness businesses to use their products.
“You find them in nearly every small shopping center and downtown core in the world,” he said. “They are the reason MindBody exists.”
While it touted the company’s growing revenue, expansion and plans for growth, MindBody still reported a net loss of about $13.3 million for the second quarter of 2015, compared to an $8.8 million net loss in the second quarter of 2014. The company has a history of such losses. Documents showed MindBody’s net losses included $5.52 million in 2012, $16.25 million in 2013, and $24.61 million for 2014.
Responding to questions about concerns over the company’s cash burn, Stollmeyer indicated that much of it could be attributed to the company laying the groundwork for future expansion and growth.
“We have built something that is designed to scale to a significantly larger size than other vertical software companies would achieve, and so that’s contributed to the larger burn rates you’ve seen in the near term,” he said.
The Aug. 4 earnings call was the first since MindBody’s initial public stock offering in June. The stock opened at $16.22 per share, but has since dropped. At the close of trading Aug. 4, the NASDAQ showed the price of the stock sitting at $9.24 per share. Still, White predicted that the company would reach profitability ahead of its 2018 estimate, and Stollmeyer urged those at the meeting to stay confident in the company’s future.
“We’ve been doing this for 10 years,” Stollmeyer said. “We truly do know what we’re doing, and you’re going to see some great results from us in the future.”