Why Mindbody Inc. Stock Surged Today The double-digit gain today is on top of an already successful last year -- and it looks like this could be just the start.
by Bradley Seth McNew Oct 27, 2016
What happened
Shares of Mindbody Inc. (NASDAQ:MB), were up 16% as of 11:30 a.m. EDT Thursday after the cloud-based health and wellness services company reported Q3 earnings that showed a surge in users and sales. The stock is up 36% year to date.
So what
During the third quarter, Mindbody revenue rose 35% year over year, thanks to a 20% growth in new subscribers to over 58,000, as well as focusing on higher transaction volume and cost. The bulk of the company's sales is made up of subscription revenue and payments revenue, which rose 33% and 41%, respectively.
The company still reported a loss of over $5 million, or $0.15 per share, compared to a loss of $0.25 per share in Q3 2015. Management said this loss was because of the company's aggressive investment in future growth. However, CEO Rick Stollmeyer did say during the earnings call, "With profitability just around the corner, we can now move up the date, once again. Mindbody will be adjusted-EBITDA profitable in the first quarter of 2017 while continuing to invest in growth and innovation for the future."
What happened Shares of Mindbody Inc. (NASDAQ:MB), were up 16% as of 11:30 a.m. EDT Thursday after the cloud-based health and wellness services company reported Q3 earnings that showed a surge in users and sales. The stock is up 36% year to date.
So what
During the third quarter, Mindbody revenue rose 35% year over year, thanks to a 20% growth in new subscribers to over 58,000, as well as focusing on higher transaction volume and cost. The bulk of the company's sales is made up of subscription revenue and payments revenue, which rose 33% and 41%, respectively.
The company still reported a loss of over $5 million, or $0.15 per share, compared to a loss of $0.25 per share in Q3 2015. Management said this loss was because of the company's aggressive investment in future growth. However, CEO Rick Stollmeyer did say during the earnings call, "With profitability just around the corner, we can now move up the date, once again. Mindbody will be adjusted-EBITDA profitable in the first quarter of 2017 while continuing to invest in growth and innovation for the future."
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