WW International Provides Update on Strong Momentum in Digital Trends, Studio Reopening Plans, and Amended Revolving Credit Facility

Subscribers as of June 6, 2020 totaled 4.9 million, up 7% from June 8, 2019, consisting of 3.8 million Digital Subscribers and 1.1 million Studio + Digital Subscribers

Digital member signup trends accelerating since mid-April on a year-over-year weekly basis, driving Digital subscribers to an all-time high

Phased reopening of certain Studio locations now underway; anticipate approximately 400 Studios in the U.S. will be open by June 30

Increased revolving credit facility commitments to $175 million, adding financial flexibility

As WW International, Inc. (NASDAQ: WW) continues to advance its digital transformation, the Company today provided an update on recent membership trends and its Studio reopening plans, and announced added financial flexibility pursuant to an amendment to its revolving credit facility.

“We believe now more than ever, people need a trusted partner in health and wellness. WW is positioned to be that partner on a global scale. Our scientifically-backed approach continues to resonate with consumers around the world and we are seeing renewed momentum in member signups for our Digital offering – bringing Digital membership to an all-time high,” said Mindy Grossman, the Company’s President and CEO. “We are accelerating our digital transformation, focusing our strategy and resources to enhance the member experience and engagement by delivering a connected, digital, and deeply-human experience. Our recently concluded Oprah's Your Life in Focus: A Vision Forward – Live Virtual Experience has led to over 3 million views, elevating our brand around the world for our members and consumers.”

Grossman continued, “In mid-March to ensure the health and safety of our Studio members and our Coaches, we proactively pivoted from in-person workshops to an entirely virtual experience. These Virtual Workshops have been well-received by our Studio members and have a 97% satisfaction rate. We will continue to offer Virtual Workshops in the current environment as many members embrace that experience to stay connected to their WW Coach and fellow members. In addition, we are on-track to launch Virtual Group Coaching later this year. This new offering will be digitally-enabled, community-focused and Coach-led, and an entirely new way to experience WW. Virtual Group Coaching will not only reflect the learnings from running Virtual Workshops at scale and our ongoing test pilots of the new offering, but also our 57 years of experience in creating community.”

“We are focused on the right priorities to maximize our current offerings while also innovating to drive future growth. Our Digital business has strong global momentum. We have started a phased reopening of Studio locations with health and safety being our top priority, and we expect to ramp up and have approximately 400 U.S. locations open by the end of June. While early feedback from Studio reopenings is encouraging, with our Studios having been closed since mid-March, we expect Studio member signups, fees and product sales to be pressured in the second quarter and well-below prior year levels,” said Nick Hotchkin, the Company’s CFO, Operating Officer, North America and President, Emerging Markets. “We believe our strong cash balance, our ability to generate cash, and full access to our undrawn revolving credit facility together provide significant flexibility to drive our priorities forward, regardless of the market environment.”

Q2 2020 Quarter-to-Date Trends

The Company had 4.9 million subscribers as of June 6, 2020, up 7% from June 8, 2019, consisting of 3.8 million Digital Subscribers and 1.1 million Studio + Digital Subscribers.

These subscriber levels reflect the following trends quarter-to-date in Q2 2020:

Starting in the middle of April 2020, Digital recruitment trends returned to growth on a weekly basis, compared to the prior year period. This weekly growth trend has accelerated since then and is now trending ahead of the weekly recruitment growth rates in the first quarter of fiscal 2019 prior to the escalation of COVID-19 in mid-March.

Driven by this increase in Digital recruitments, total global recruitments returned to growth on a weekly basis, beginning in the middle of May 2020, as compared to the prior year period.

The recruitment mix shift reflects the strength of the Company’s Digital business, with approximately 90% of recruits since mid-March coming from the Company’s Digital business.

The Studio + Digital business continues to experience significant declines in recruitment on a weekly basis as compared to the prior year period.

Member retention currently remains above ten months.

Due to these member trends, the Company anticipates Digital Subscription Revenues to increase as a percentage of the revenue mix in the second quarter as compared to the prior year period. Revenues from Studio subscriptions and in-Studio product sales continue to be pressured in the second quarter of 2020 due to the pause in in-person workshops; the decline in Studio-related revenues has been partially offset by strength in Digital subscriptions and eCommerce product sales.

The Company is confident in its strategy and actions to enhance the value of WW to members and non-members alike, and to best-position WW in both the immediate-term and for longer term growth opportunities with its award-winning digital platform. At the same time, the Company is focused on maintaining cost discipline and financial flexibility in order to respond to evolving business and consumer conditions, while ensuring its ability to continue to invest in building a digitally-enabled wellness ecosystem.

Amended Revolving Credit Facility

The Company has amended its revolving credit facility, increasing the commitments to $175 million from $150 million and raising the consolidated first lien net debt leverage ratio required by the financial maintenance covenant, together providing for significantly more flexible access to liquidity.

On June 5, 2020, WW fully repaid the loans outstanding on its revolver, which it previously drew down as a precautionary measure in light of the COVID-19 outbreak. Following this repayment, the Company had a strong cash balance of $127 million, as of June 5, 2020.

About WW International, Inc.

WW – Weight Watchers reimagined – is a global wellness company powered by the world’s leading commercial weight management program. We inspire millions of people to adopt healthy habits for real life. Through our engaging tech-enabled experience and face-to-face group workshops, members follow our livable and sustainable program of healthy eating, physical activity, and a helpful mindset. Leveraging more than five decades of experience in building inspired communities and our deep expertise in behavioral science, we aim to democratize wellness and to deliver wellness for all. To learn more about the WW approach to healthy living, please visit ww.com. For more information about our global business, visit our corporate website at corporate.ww.com.    

For more information, contact:

Investors:

Corey Kinger                                                                                                                                              
VP Investor Relations
212.601.7569
corey.kinger@ww.com

Media:

Joe Quenqua
Chief Communications Officer
212.601.7519
joe.quenqua@ww.com