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MindBody (MB) Posts Strong Earnings, Subscription Revenues Up 34%

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MindBody Inc. just released its fourth quarter fiscal 2017 financial results, posting earnings of three cents per share and revenues of $49.7 million. The stock is up about 1% to $33.70 per share shortly after the report was released.

Currently, MB is a #3 (Hold) on the Zacks Rank, and while our consensus estimate trend has remained stable for the next few periods, MindBody’s year-over-year earnings growth is estimated to surge.


Beat earnings estimates. The cloud-based business platform reported non-GAAP earnings of three cents per share, topping the Zacks Consensus Estimate of a penny per share. Net income came in at $1.7 million for the quarter.

Beat revenue estimates. The company saw revenues of $49.7 million, also surpassing our consensus estimate of $48.92 million and increasing 30% year-over-year.

Subscription and services revenue grew 34% to $29.9 million, while payments revenue surged 25% from the prior year period.

Average revenue per subscriber grew 31% year-over-year in Q4.

For Q1 2018, MindBody expects revenues in the range of $53 million to $54.5 million, which represents 26% to 29% growth. Revenue for full year 2018 is now slated to be between $230 and $236 million.

“This was the most successful year in MINDBODY history,” said Rick Stollmeyer, co-founder and chief executive officer of MINDBODY. “Throughout 2017, our platform delivered strong growth in total sessions booked, payments volume, and direct consumer engagement. We also saw rapid expansion of promoted introductory offer purchases and impressive early adoption of dynamic pricing in Q4. These results all point to the growing momentum of our transaction-enabled marketplace, which focuses on adding the right customers to our platform and promoting their offerings to an ever larger consumer audience.

Here’s a graph that looks at MindBody’s price, consensus, and EPS surprise:

MINDBODY, Inc. Price, Consensus and EPS Surprise

MINDBODY, Inc. Price, Consensus and EPS Surprise | MINDBODY, Inc. Quote

MindBody develops cloud-based business management software and payments platform for the wellness services industry. Its platform enables businesses to manage class and appointment schedules, staff members, client information, online bookings, inventory, payroll and retail sales for yoga, Pilates, barre, indoor cycling, personal training, martial arts and dance exercise, as well as spas, salons, music instruction studios, dance studios, children’s activity centers, and integrative health centers. MindBody is headquartered in San Luis Obispo, California.

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