Why Beachbody Shares Are Tumbling Today

The Beachbody Co Inc BODY is trading significantly lower Tuesday after the company announced third-quarter revenue was down year-over-year and issued guidance below estimates.

Beachbody reported a quarterly adjusted EBITDA loss of $43.4 million versus adjusted EBITDA of $31.4 million year-over-year. The company reported quarterly revenue of $208.1 million, which was down from $251.5 million year-over-year.

Third-quarter subscriptions were 2.98 million, representing a decrease of 2% year-over-year.

Beachbody expects full-year 2021 revenue to be in a range of $820 million to $830 million versus the estimate of $964 million.

"While we continued to execute on our strategy to drive growth, the third quarter proved more challenging than forecasted. Our results reflect a confluence of external factors, including softer at-home fitness demand as consumers grew tired of social distancing, and a challenging media environment that did not meet our disciplined ROI requirements, coupled with a short delay in product launches from September to October," said Carl Daikeler, co-founder and CEO of Beachbody.

Guggenheim analyst John Heinbockel downgraded Beachbody from Buy to Neutral.

Beachbody is a holding company involved in offering streamed and live fitness, nutrition programs and various products.

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BODY Price Action: Beachbody has traded as high as $13.50 and as low as $4.48 over a 52-week period.

The stock was down 26.80% at $3.38 at time of publication.