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Segment Information
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information

Note 23. Segment Information

The Company applies ASC 280, Segment Reporting, in determining reportable segments for financial statement disclosure. Segment information is presented based on the financial information the Company uses to manage the business which is organized around our digital platforms. The Company has two operating segments, Beachbody and Other, and one reportable segment, Beachbody. The Beachbody segment primarily derives revenue from Beachbody On Demand digital subscriptions, nutritional products, connected fitness equipment (bikes and accessories), and other fitness-related products. Other derives revenue primarily from Openfit digital subscriptions and nutritional products and from connected fitness equipment content. The Company uses contribution as a measure of profit or loss, defined as revenue less directly attributable cost of revenue and certain selling and marketing expenses including media, Coach and social influencer compensation, royalties, and third-party sales commissions. Contribution does not include allocated costs as described below as the CODM does not include these costs in assessing performance. There are no inter-segment transactions. The Company manages its assets on a consolidated basis, and, as such, does not report asset information by segment.

Summary information by segment is as follows (in thousands):

 

 

 

Segment

 

 

 

Beachbody

 

 

Other

 

 

Consolidated

 

Year Ended December 31, 2021

 

 

 

 

 

 

 

 

 

Revenue

 

$

835,407

 

 

$

38,238

 

 

$

873,645

 

Contribution

 

 

158,799

 

 

 

(26,255

)

 

 

132,544

 

Year Ended December 31, 2020

 

 

 

 

 

 

 

 

 

Revenue

 

$

853,317

 

 

$

10,265

 

 

$

863,582

 

Contribution

 

 

255,800

 

 

 

(15,816

)

 

 

239,984

 

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

 

Revenue

 

$

752,375

 

 

$

3,404

 

 

$

755,779

 

Contribution

 

 

261,322

 

 

 

(10,462

)

 

 

250,860

 

 

Reconciliation of consolidated contribution to income (loss) before income taxes (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Consolidated contribution

 

$

132,544

 

 

$

239,984

 

 

$

250,860

 

Amounts not directly related to segments:

 

 

 

 

 

 

 

 

 

Cost of revenue (1)

 

 

37,411

 

 

 

28,668

 

 

 

28,372

 

Selling and marketing (2)

 

 

98,280

 

 

 

61,441

 

 

 

61,404

 

Enterprise technology and development

 

 

119,915

 

 

 

93,036

 

 

 

84,132

 

General and administrative

 

 

79,682

 

 

 

64,818

 

 

 

56,899

 

Restructuring (gain) loss

 

 

(320

)

 

 

(1,677

)

 

 

1,171

 

Impairment of goodwill and intangible assets

 

 

94,894

 

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

(50,729

)

 

 

 

 

 

 

Interest expense

 

 

536

 

 

 

527

 

 

 

790

 

Other income, net

 

 

(3,204

)

 

 

(666

)

 

 

(813

)

Income (loss) before income taxes

 

$

(243,921

)

 

$

(6,163

)

 

$

18,905

 

 

(1) Cost of revenue not directly related to segments includes certain allocated costs related to management, facilities, and personnel-related expenses associated with quality assurance and supply chain logistics. Depreciation of certain software and production equipment and amortization of formulae and technology-based intangible assets are also included in this line.

(2) Selling and marketing not directly related to segments includes indirect selling and marketing expenses and certain allocated personnel-related expenses for employees and consultants. Depreciation of certain software and amortization of contract-based and customer-related intangible assets are also included in this line.