Planet Fitness, Inc. Q4 FY2024 earnings call

• Leadership changes: Added Jay Stasz as CFO, Chip Ohlsson as Chief Development Officer, and Brian Povinelli as Chief Marketing Officer. - 2024 performance: System-wide same club sales grew 5.5%, revenue up 19.4%, adjusted EBITDA up 14.4%. Added 150 clubs, membership grew to 19.7 million. - Brand redefinition: Launched new brand promise 'grow stronger together' and campaign 'We’re All Strong on This Planet'. - Member experience: Shifted to more strength equipment, optimized formats, and improved unit economics. - Organizational realignment: Shifted to a fit-for-strategy operating model for enhanced agility.

For the fourth quarter, franchise segment revenue increased 11%, with adjusted EBITDA of $74.7 million and a margin of 68.6%. Corporate-owned club segment revenue increased 8.5%, with adjusted EBITDA of $46.4 million and a margin of 36.7%. Equipment segment revenue increased 49.2%, with cost of revenue at $80.5 million.

2025 outlook: Expect 160-170 new clubs, system-wide same club sales growth 5%-6%, revenue growth ~10%, adjusted EBITDA growth ~10%, adjusted net income up 8%-9%, adjusted net income per diluted share up 11%-12%. Capex up ~25%, D&A flat. Also, expects '25 net interest expense of approx $86 million.

• Potential short-term impact of click to cancel roll-out on churn rates. - Dependence on franchisee response to new growth model and pricing changes. - International expansion risks if markets don't scale as expected.

Q: Any way to help us think about how much the price hike is embedded into your full year comp and revenue guidance versus expected member progression over the year, and then maybe Colleen or Jay, what are you seeing in terms of--you mention the churn, I think is improving. What are you seeing here post the price hike?

A: Jay Stasz answers about price hike impact and churn trends Q: Your first question comers from Simeon Siegel from BMO Capital Markets. Any way to help us think about how much the price hike is embedded into your full year comp and revenue guidance...

A: Jay Stasz responds on price hike impact and churn Q: Randal Konik from Jefferies asks about international expansion and franchisee build cycle A: Colleen Keating answers on international plans and franchisee build progress Q: Sharon Zackfia from William Blair asks about black card pricing test and marketing response A: Jay Stasz and Colleen Keating answer on black card trends and marketing response Q: Joe Altobello from Raymond James asks about 2025 new openings and franchisee track A: Jay Stasz and Colleen Keating answer on new openings and franchisee status Q: Rahul Krotthapalli from JP Morgan asks about brand refresh campaign and churn A: Colleen Keating answers on campaign performance and churn strategies Q: John Heinbockel from Guggenheim Partners asks about strategic imperatives and marketing cadence A: Colleen Keating and Jay Stasz answer on strategic priorities and marketing plans Q: Max Rakhlenko from TD Cowen asks about comps cadence and click to cancel A: Jay Stasz answers on comp trends and click to cancel impact Q: Jonathan Komp from Baird asks about comps behavior and earnings leverage A: Jay Stasz answers on comp behavior and earnings leverage plans Q: Megan Clapp from Morgan Stanley asks about development pace and strategy A: Colleen Keating answers on development strategy and team focus Q: Korinne Wolfmeyer from Piper Sandler asks about marketing spend cadence and unit development A: Colleen Keating answers on marketing spend and unit development progress Q: Alex Perry from Bank of America asks about black card penetration and format optimization A: Jay Stasz and Colleen Keating answer on black card trends and format decisions Q: Unknown Analyst from BNP Paribas asks about January performance and pricing response A: Jay Stasz answers on Q1 commentary and growth cadence