Nautilus (NLS) Q2 2022 Earnings Call Transcript

This gross sales steering displays our plan to proceed bundling 12 months or any trials with cardio gear gross sales. We might be deferring the JRNY portion of the bundled sale income and amortizing it month-to-month for the following 12 months. Our anticipated deferred revenues of six to $7 million will cut back gross sales and negatively influence gross margins within the second half by two to a few factors. We anticipate the identical macro provide chain headwinds to proceed within the second half, negatively impacting gross margins by 12 factors.

We proceed to extend our funding in JRNY within the second half. Second half JRNY price, which incorporates depreciation, content material, buyer assist, and per subscriber variable prices, might be between six and $8 million this 12 months. Second half opex JRNY, which incorporates R&D, IT product administration and the amortization of stock-based compensation, and earnout related to our VAY acquisition, might be between 18 and 20 million this 12 months. We plan on investing extra in promoting this 12 months to stay aggressive in share of voice and to spotlight the enhancements in our related health expertise.

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