Nautilus (NLS) Q2 2022 Earnings Call Transcript

Adjusted G&A bills have been 11 million or 8% of gross sales, up 2 million to LY primarily pushed by elevated investments in JRNY. R&D was 6 million or 4% of gross sales, up $1 million in comparison with LY, once more pushed by elevated prices associated to JRNY. In fiscal Q2, promoting was 12 million, and JRNY opex was 5 million. Adjusted working revenue was 4 million and adjusted working margins have been 3%, consistent with steering of low single digit.

Our presentation features a waterfall chart on Web page 13 that describes the year-over-year change in working margins. The most important driver is decrease gross margins, adopted by elevated promoting and investments in JRNY. Adjusted revenue from persevering with ops was 1 million or $0.03 per diluted share versus final 12 months’s 28 million or $0.87 per diluted share. Adjusted EBITDA from persevering with ops was 7 million or 5%, in comparison with final 12 months’s 38 million or 25%.

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