WW International, Inc.

Good day and welcome to the WW International Fourth Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Corey Kinjer, Investor Relations. Please go ahead.

Thank you, everyone, for joining us today for WW International's fourth quarter and full year 2021 conference call. At about 4 p.m. Eastern time today, we issued a press release reporting our fourth quarter and full year 2021 results. The purpose of this call is to provide investors with some further details regarding the company's financial results as well as to provide a general update on the company's progress. The press release is available on the company's corporate website located at corporate.ww.com. Supplemental investor materials are also available on the company's corporate website in the Investors section under Presentations and Events. Reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the press release. Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today and, except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Joining today's call are Mindy Grossman, President and CEO, Nick Hodgkin, COO, and Amy O'Keefe, CFO. I'll now turn the call over to Mindy. Thank you, Corey, and good afternoon, everyone.

I would like to start by speaking to last week's announcement that Seema Sistani will be joining WW as our new CEO as of March 21st. Seema has a strong background at the intersection of media and technology and has a track record of building powerful digital communities. She was the founder and CEO of Houseparty, a face-to-face synchronous social network and community focused on bringing support and empathy to online communication. Under her leadership, it grew into a community of over 150 million users, and in 2019, she led the sale of the brand to Epic Games, where she served as the senior executive leading social gameplay and feature development for their gaming products, including Fortnite. She also held leadership positions, at both Yahoo Mobile and Tumblr. I've known Seema for over two years and feel she is the right individual to lead WW. She is a visionary, an entrepreneur, and inspired leader. Her proven track record in building and scaling businesses, her ability to innovate, her depth of experience in product, technology, digital community building, and her passion, drive, and focus on purpose so aligns with the WW mission and business. She is also a health and wellness enthusiast and proud WW member. I know that she's excited to be leading the team through the next phase of growth for the brand and the business. We're now turning to our 2021 results and personal points launch. Looking back, in many ways, 2021 was an unusual year with consumers undergoing several shifts in sentiment and behavior. Through these changes, we maintained rigorous prioritization as we accelerated our digital transformation by developing and launching our newest food program innovation, Personal Points, creating an entirely new coaching and content experience in Digital 360, enhancing our e-commerce experience and product portfolio, and investing for the future in healthcare and diabetes. At the start of 2021, MyWW+, our first non-food innovation, delivering a more interactive and personalized app experience than ever before, accelerated our digital performance last winter. This strong performance at the beginning of the year was difficult to sustain as consumer sentiment shifted during the next phase of the COVID-19 environment as evidenced by industry-wide declines in traffic and search trends for digital weight loss programs beginning in Q2. At the same time, we were actively managing the COVID-related impact on our workshops business, with subscriber levels being reduced to approximately half of pre-COVID levels. This created a significant subscriber and revenue headwind throughout 2021. We ended 2021 with 4.2 million subscribers. End of period digital subscribers were 3.4 million, down 7% year over year. And end of period workshops subscribers were 727,000, up 1% versus 2020, but down 42% versus year-end 2019. Throughout the entire year, our cross-functional teams were relentlessly focused on the development of Personal Points and its successful launch in November. Personal Points is an important step in our multi-year personalization journey. I again would like to thank our dedicated employees for bringing this innovation to life in a seamless, synchronous launch to more than 4 million members across 12 different countries and in seven languages. Our Winter 2022 marketing campaign amplified personal points with a broad suite of assets to drive connection, interest, and action, including motivational and entertaining ads featuring Oprah Winfrey and James Corden, as well as the utilization of over 500 unique visual assets. It was also gratifying to see WW recognized for program effectiveness and digital innovation leadership. In January, WW's weight loss leadership was recognized once again by U.S. News and World Report's health experts in their 2022 Best Diets rankings. WW retained the number one spot for both Best Diet for Weight Loss and Best Diet Program for the 12th consecutive year. We also received high marks in the categories of Best Diet Overall, Easiest Diet to Follow, Best Diet for Healthy Eating, and Best Diet for Fast Weight Loss. In addition, Digital 360 was recently selected as a Good Housekeeping 2022 Fitness Awards winner, being named Good Housekeeping's App Choice Best for Building Habits. These accolades further build on the evidence that WW works. delivering solutions that fit members' lives and provide a livable path to sustainable weight management and healthy living. The need for proven, sustainable, and accessible weight loss and wellness solutions is more important today than ever before. And in a world where digital has accelerated and technology has been an enabler, we are all still craving physical interaction and human connections. That's why WW has such an important, valuable role as people are looking for science-backed community and coaching from a brand they trust. I am confident that the company under the leadership of SEMA will continue to innovate, be obsessed with data, and focus on the critical priorities that will advance the business, support our members, and expand WW's impact around the world. I will now turn the call over to Nick. to discuss our current performance and our go-forward strategy in more detail.