By David Willey, Benzinga
The Washington Post has highlighted a recent Japanese study on the importance of a buddy for improving fitness results. This study seems to confirm the approach taken by digital fitness company Interactive Strength Inc. (NASDAQ: TRNR), doing business as FORME, which offers a roster of accessible and highly qualified personal trainers as a key component of its fitness solutions.
The study found that those who exercised in groups at least twice a week were less at risk of cognitive impairment compared to those who exercised alone. Social exercisers reduced their risk of cognitive impairment by 34% when compared with those who didnt exercise at all, while those who exercised alone only reduced their risk by 22%.
The findings highlight the particular benefits that social exercise has for older adults, suggesting that regular social exercise can act as a preventive measure against cognitive decline. Inactivity is a risk factor for dementia, while regular exercise with socialization has demonstrated positive effects on cognitive function and in some cases can modify the structure of the brain.
FORMEs 1:1 Virtual Fitness Training Service
FORME built its fitness business model on the belief that 1:1 relationships are essential components of well-being and fitness. That is why it offers a premium digital fitness service that gives each of its members sessions with the best workout buddy of all a certified personal trainer.
FORMEs virtual fitness service is accessible through iOS and Android apps, as well as its smart gym mirrors. The service provides users with personalized fitness plans, progress tracking, and importantly, accountability through the provided training sessions with personal trainers.
FORMEs platform connects users with highly qualified and certified trainers who specialize in various areas such as cardiovascular training, stress management, pre/postnatal training, nutrition coaching and injury prevention. Members get live 1:1 sessions with their trainers and get to build real relationships that provide them with the guidance and accountability necessary to see results.
Additionally, FORME allows users to choose their trainer based on his or her coaching style. This guarantees a tailored experience that aligns with the members individual preferences. So whether a user prefers a technical and analytical approach, a laid-back style, or a fun atmosphere, FORME has a trainer to support them and help them meet their fitness goals.
Following IPO, FORMEs Recurring Revenue Increases
The company has recently released its financial report for Quarter 1, 2023. It had one-off expenses related to its initial public offering (IPO), resulting in a net loss of $16 million, or $2.09 per diluted share, for Q1, compared to a loss of $12.7 million, or $43.81 per diluted share, year-over-year (YoY).
The company seems to have demonstrated control over its expenses by reducing non-Generally Accepted Accounting Principles (GAAP) expenses by 62% YOY to $3.6 million, down from $9.4 million in Q1 2022. Its Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), also a non-GAAP measurement, was a loss of $4.4 million, a YoY improvement of $6.3 million.
FORME reported more than tripling its average annualized recurring revenue per household, and it now generates an annual average of $1,650 per household. It is establishing itself in the luxury fitness market segment, which accounts for only 32% of the total memberships but for more than 70% of the revenue.
According to Trent Ward, co-founder and CEO of FORME, the increase in recurring revenue reflects 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 our future profitability.
The company also secured a senior loan in June for up to $15 million. When 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, said Ward.
Other companies involved in the digital health space include Lululemon Athletica Inc. (NASDAQ: LULU), Peloton Interactive Inc. (NASDAQ: PTON) and Xponential Fitness, Inc. (NASDAQ: XPOF).
To watch a video of FORMEs products in use, CLICK HERE!
FORME is a digital fitness platform that combines premium connected fitness hardware products with live virtual personal training and coaching to deliver an immersive experience and better outcomes for both consumers and trainers. FORME delivers an immersive and dynamic at-home fitness experience through two connective hardware products: 1. The FORME Studio (fitness mirror) and 2. The FORME Studio Lift (fitness mirror and cable-based digital resistance). The Studios uniquely transform to host a variety of workouts and activities, returning to an elegant, full-length mirror when not in use. In addition to the Company's connected fitness hardware products, FORME offers expert personal training and health coaching in different formats and price points through Video On-Demand, Custom Training, and Live 1:1 virtual personal training.
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