Q2 2024 Planet Fitness Inc Earnings Call Transcript
Key Points
- Planet Fitness Inc (PLNT) surpassed the 2,600 store mark and grew same-store sales by 4.2%.
- The company delivered a 5.1% revenue growth and increased adjusted EBITDA by 7.2%.
- The franchise model is strong, with a solid base of about 100 franchisees and more than 19 million members.
- International expansion is underway, with the first European club opened in Barcelona, Spain.
- The company has a significant marketing budget, spending over $300 million in 2023, which dwarfs competitors.
- The cost to build a new location increased by more than 30% in 2023 compared to 2019.
- Equipment segment revenue decreased by 8.4%, driven by lower revenue from equipment sales to new and existing franchisee-owned stores.
- Store operation expenses increased to $70.2 million from $58.9 million due to higher operating expenses in existing stores.
- The company opened only 18 new stores in Q2 2024 compared to 26 in the same period last year.
- Net member growth was below expectations, partly due to a softer early January and an incident in March impacting joins and cancels.
Hello, and thank you for standing by. This time, I would like to welcome you to the Planet Fitness Q2 earnings call. (Operator Instructions)
I would now like to turn the conference over to Stacey Caravella. Please go ahead.
Thank you, operator, and good morning, everyone. Speaking on today's call will be Planet Fitness Chief Executive Officer, Colleen Keating; and Chief Financial Officer, Tom Fitzgerald. Both will be available for questions during the O&A session following the prepared remarks.
Today's call is being webcast live and recorded for replay. Before I turn the call over to Colleen, I'd like to remind everyone that the language on forward-looking statements included in our earnings release also applies to our comments made during the call. Our release can be found on our investor website along with any reconciliation of non-GAAP financial measures mentioned on the call with their corresponding GAAP measures.
Now I will turn the call over to Colleen.
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