Nautilus (NLS) Q2 2022 Earnings Call Transcript

Turning now to our expectations for the remainder of the 12 months. As Jim highlighted, we’re happy with the progress we’re making in North Star and the stable momentum in our JRNY enterprise. We now have 200,000 members. Engagement is rising, churn is declining, and our path to bringing JRNY to scale has change into clear as we achieve new capabilities for our latest acquisition and content material partnerships.

Sure points of our surroundings are difficult. Like practically each different enterprise, we’re experiencing near-term exterior pressures on gross margins, which worsened in Q2 versus Q1. Whereas we’re actually proud that we have been in a position to overcome nearly all of the pressures within the first half, we do not consider that placing our future on maintain for near-term outcomes is one of the simplest ways to ship long-term shareholder worth. Our board, the administration group, and our staff have robust conviction that the trail to sustainable, worthwhile progress is thru having a high-margin subscription enterprise to enhance our enduring gear enterprise.

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