Nautilus (NLS) Q2 2022 Earnings Call Transcript

As a price of gross sales, promoting will improve by 9 to 11%. Lastly, we are going to proceed to spend money on our infrastructure and in our group. We doubled our gear enterprise, however most of our elevated prices have been focused towards JRNY. We’re upgrading our instruments and including new capabilities to the gear facet to optimize and scale for the longer term.

We consider these investments will speed up membership acquisition and can finally consequence within the JRNY enterprise unit being accretive a number of quarters sooner than initially deliberate. We may have chosen to tug again on spend within the second half, put our future on maintain and ship working revenue within the low single digits, however as we instructed you throughout Investor Day, we are going to at all times lean extra towards defending the long-term prosperity of the corporate versus attaining near-term income. Subsequently, for the second half of the 12 months, we anticipate working loss margins within the mid-teens and adjusted EBITDA margins within the low teenagers. We proceed to anticipate capex to be between 12 and 14 million for the complete 12 months, with the bulk earmarked for JRNY.

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