WW International, Inc.

are 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 your 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 Kinger, Investor Relations. Please go ahead.

Thank you everyone for joining us today for WW International's first quarter 2024 conference call. At about 4 p.m. Eastern time today, we issued a press release reporting our first quarter 2024 results. The purpose of this call is to provide investors with some further details regarding the company's financial results, as well as 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 investor 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 certainties 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 Seema Sastani, CEO, and Heather Stark, CFO. I will now turn the call over to Seema.

Thanks, Corey. Good afternoon, everyone, and thank you for joining us today. I'm proud to announce that Weight Watchers is off to a strong start. First, we delivered on our Q1 commitments with both top and bottom line results consistently. Second, we are succeeding in our expansion into clinical services as reflected by clinical subscribers of 91,000 at the end of the first quarter, ahead of our prior guidance of 85,000 subscribers. Our clinical business has undergone tremendous growth over the past year, now having nearly four times the subscribers since we announced the acquisition of Sequence in March, 2023. And we have grown this business in an environment of supply constraints for very in demand GLP-1 medications. Third, the improvements made to our core programs are yielding a tangible improvement in engagement and retention. For example, our activation rate, a metric defined by a member's food and weight tracking engagement and weight loss progress during their first 30 days on the program, continues to trend positively with Q1 up approximately 6% year over year and hitting its highest level since 2020. As a reminder, activation rate matters because activated members' attrition rate is roughly half of a non-activated member, and they are more successful on Weight Watchers over the long term. We are seeing improved user retention, particularly among newer cohorts, with the average subscriber now on the plan for slightly higher than 11 months. And fourth, our focus on cost discipline is paying off. we delivered another record-adjusted gross margin quarter, an impressive 68%. So in short, we are executing on our plan by focusing on returning the company to profitable growth while transforming our business model for the future. And we remain confident in the full-year guidance. While recent sign-up performance has been soft, much of this is due to an intentional shift in spend for an upcoming marketing campaign introducing our weight health approach. The coaching, accountability, and community found in Weight Watchers is key to our longevity and member satisfaction and success. But at the same time, we must evolve for the future, building out and enabling new offerings and features to serve a broader population with more solutions. The future is in members having our foundational behavior change offering as a basis and the ability to add on and move between membership types depending on the level of support needed. And when it comes to support, we have a distinct advantage with our 4 million members Weight Watcher community. As discussed in our last earnings call in February, we are focused on expanding care, expanding access, and expanding payment options. Together, the initiatives and project expansion will give us critical opportunities to further catalyze our growth, make our offerings more accessible, to more people, transform our business model, and deliver on our mission as the global leader in weight health. Turning to the three pillars of project expansion. First, expanding care. We are focused on expanding and enhancing the care options that members can access based on their specific weight health needs. Our trusted behavioral program is the foundation And we have a number of digital product improvements rolling out in 2024 to enhance the experience to members, including new features to simplify food decisions, greater in-app gamification, and new community spaces. Second, expanding access. As we think about the future and growing recognition of the critical importance of weight health and our leadership in it, we plan on making Weight Watchers a covered benefit. both for our core behavioral program and our clinic offering. Over time, this will take us from a D to C model to increasingly a B to B to C business. Recent business wins and substantially increased volume of new business conversations make us confident in our strategy. Our brand, our science, our consumer-centric experience, and full spectrum approach are all key differentiators that resonate with payers and employers alike. We are in active discussions with large national carriers and we are also in talks with large existing customers. While this motion has a long lead time, the expansion it represents for access to Weight Watchers is huge and we believe this channel to be a critical driver of growth and momentum in the years ahead. And third, expanding payment options. Our goal is to allow our members to use their insurance whenever possible taking the cost burden off the consumer. This provides greater opportunity for a larger pool of members to access incremental services and thereby drive greater ARPU. Over the next few months, we will be making insurance-covered registered dietitians consultations available to eligible Weight Watchers members in the U.S. We believe the capability to directly process insurance claims for Weight Watchers services will also have a positive impact to signups and retention over time. In short, we are enthusiastic about project expansion and its potential to transform the Weight Watchers business model and make our offerings more accessible to more people. There is a lot to look forward to in 2024. In addition to returning our business to adjusted operating income growth, I am confident our actions are making the company stronger and better positioned to capture the opportunities ahead. I will now turn the call over to Heather to discuss our financial results and 2024 outlook.