Company: WW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029511
Chunk: 154

Company: WW INTERNATIONAL, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 154
---
 at the end of fiscal 2023. The decrease in Subscription Revenues for fiscal 2024 versus the prior year was driven primarily by a higher mix of Digital subscribers within their initial, lower-priced commitment periods and Behavioral recruitment declines. Additionally, Subscription Revenues were negatively impacted by the continued mix shift from our Workshops + Digital business to our Digital business. Subscription Revenues included $78.0 million of Clinical Subscription Revenues for fiscal 2024 versus $30.5 million of Clinical Subscription Revenues for fiscal 2023 as a result of our acquisition of Sequence closing during the second quarter of fiscal 2023. See “—Operating Results” for additional details on revenues.

Cost of Revenues

Cost of revenues for fiscal 2024 decreased $107.4 million, or 29.8%, versus fiscal 2023. Excluding the impact of foreign currency, which increased cost of revenues in fiscal 2024 by $0.1 million, cost of revenues for fiscal 2024 would have decreased 29.8% versus the prior year. Excluding the net impact of the $5.0 million of restructuring charges in fiscal 2024 and the net impact of the $21.2 million of restructuring charges in fiscal 2023, cost of revenues for fiscal 2024 would have decreased by 26.9%, both as adjusted and as adjusted on a constant currency basis, versus the prior year as a result of the closure of the consumer products business and cost actions taken to reduce the fixed cost base of the Workshops + Digital business.

Gross Profit

Gross profit for fiscal 2024 increased $3.8 million, or 0.7%, versus fiscal 2023. Excluding the impact of foreign currency, which positively impacted gross profit in fiscal 2024 by $0.6 million, gross profit for fiscal 2024 would have increased 0.6% versus the prior year. Excluding the net impact of the $5.0 million of restructuring charges in fiscal 2024 and the net impact of the $21.2 million of restructuring charges in fiscal 2023, gross profit for fiscal 2024 would have decreased by 2.2%, or 2.3% on a constant currency basis, versus the prior year. Gross margin for fiscal 2024 increased to 67.8%, both as reported and on a constant currency basis, versus 59.5% for fiscal 2023. Excluding the net impact of restructuring charges in