YogaWorks teachers taught more than 180,000 classes and the company had more than 225,000 students in 2016. In addition to its studio locations, YogaWorks offers online instruction through its MyYogaWorks web platform, which provides subscribers with a highly curated catalog of over 1,000 yoga and meditation classes.
It is one of the largest and fastest-growing providers of yoga instruction in the U.S. which has almost 3 million student visits in 2016. The company operates 66 company-owned studios as well as their Internet-based digital media service, MyYogaWorks.com.
They have highly trained, passionate teachers who make yoga accessible to everyone and offer a practice that can be applied on and off the mat. YogaWorks strives to make yoga accessible to everybody and offers a wide range of class styles for people of all ages and abilities.
Since 1990, YogaWorks has offered a teacher training program, which has over 11,000 graduates. They also primarily offer yoga classes, workshops, teacher training programs, and yoga-related retail merchandise across their studios. With world-class yoga studios in Atlanta, Baltimore, Boston, Houston, Los Angeles, New York, Orange County, San Francisco Bay area, and Washington D.C., they are planning studio openings in other cities soon.
History of YogaWorks
The journey of the YogaWorks started in 1987, when Maty Ezraty, Chuck Miller and Alan Finger opened their first studio on Montana Avenue in Santa Monica, they gathered many styles of yoga under one roof, which attracted the best teachers in Southern California. The founders were all serious and highly accomplished yoga practitioners who wanted to share the gifts they learned from their wise teachers.
In 2007, YogaWorks had 14 locations in the states of California and New York and by 2008 the company had expanded to 21 yoga studios. In 2014, the company and its 29 yoga studios were purchased by Great Hill Partners for $45 million.
Rosanna McCollough joined YogaWorks in February 2015 as President and Chief Operating Officer, initially managing studio operations, marketing, teacher training, MyYogaWorks.com, human resources and IT, before being promoted to President and Chief Executive Officer in June 2016. As of 2017 the company had 66 yoga studios across the country.
The company was formerly known as YWX Holdings, Inc. and we changed our name to YogaWorks, Inc. on April 10, 2017. They operate under the brand names YogaWorks, Yoga Tree and certain other local brands for a while following the acquisition of studios.
Timeline of YogaWorks’ IPO
On August 11, 2017, YogaWorks, Inc. held its initial public offering, becoming the first yoga “chain” to be publicly traded. The pricing of its initial public offering of 7,300,000 shares of its common stock at a price to the public of $5.50 per share.
The shares began trading on The NASDAQ Global Market on August 11, 2017, under the symbol “YOGA”. The underwriters were granted a 30-day option to purchase an additional 1,095,000 shares of common stock from the Company.
The closing of the offering occurred on August 16, 2017, subject to the satisfaction of customary closing conditions. They received proceeds from our IPO of $37.6 million after deducting underwriters’ discounts and commissions of $2.5 million, but before deducting offering costs of $2.1 million.
Certain IPO-related costs on September 30, 2017, of $2.6 million were recorded as a reduction to additional paid-in capital. The principal purposes of this offering were to increase their capitalization and financial flexibility, create a public market for their common stock and thereby enable access to the public equity markets for them and their stockholders.
Great Hill Equity Partners V, L.P., Great Hill Investors, LLC, and their affiliated companies, which we refer to collectively as “Great Hill Partners,” or controlling stockholder, indicated an interest in purchasing up to $10.0 million in shares of our common stock in this offering, which is referred as the “Great Hill Shares”, at the initial public offering price.
However, as indications of interest were not binding agreements to purchase, the underwriters elected to sell more, less or no shares in this offering to Great Hill Partners, and Great Hill Partners elected to purchase more, less or no shares in this offering.
YogaWorks, headquartered in Culver City, Calif., said in a July 10 Form S-1 filed with the Securities and Exchange Commission that Boston private equity firm Great Hill Equity Partners V LP, which had a 99.9% controlling stake in the company, had an interest in purchasing up to $10 million in shares.
After the IPO, Great Hill’s stake was about to be cut to 64%, unless it bought the $10 million worth of shares, at which point, it was to be increased to 70.3%. Great Hill acquired YogaWorks for $45.6 million in cash on July 18, 2014, according to the S-1 form. The terms of the deal were not disclosed at the time.
For the second quarter ending June 30, YogaWorks expected net revenues between $12.3 million and $12.6 million, a decline from the $13.3 million it generated in the year-ago period. The company said it estimates second-quarter visits of 700,000 to 720,000, compared to the 754,567 visits it gained in the same period a year ago.
For the three months ended March 31, YogaWorks reported revenue of $13.9 million, lower than the $15.1 million it generated in the year-ago period.
On May 14, 2019, Rosanna McCollough, President and Chief Executive Officer of YogaWorks, stated,
“We started fiscal 2019 on a strong note and are extremely pleased to have delivered financial results at the high end of our expectations as we remain focused on growing our base business and delivering improved EBITDA performance.
We are particularly pleased with our revenue performance given our decision not to anniversary the discounted class packages which were offered throughout the first quarter of last year.
Our heightened focus on memberships, where we achieve greater lifetime value of a customer, have been paying dividends with membership sales growth of 11% sequentially and 14% versus the first quarter of last year, on a same store sales basis.
In addition, we continued to create innovative programming and further diversified our class offerings, drove increased demand through enhanced marketing initiatives, and took steps to further optimize our studio base.
Overall, we are excited to see many of our initiatives are beginning to bear fruit and look forward to updating you on our continued progress. Importantly, the work we are doing today will set us up nicely for long term scalable growth and we still have tremendous opportunity ahead.”
Yogaworks Inc (OTCMKTS:YOGA)’s stock price was up 15.9% during mid-day trading on Jan 1st, 2020. The stock traded as high as $0.17 and last traded at $0.17, approximately 17,653 shares changed hands during trading. The stock had previously closed at $0.14. The company has a fifty day simple moving average of $0.19 and a 200 day simple moving average of $0.26.
Yogaworks (OTCMKTS:YOGA) last posted its quarterly earnings results on Thursday, November 14th, 2019. The company reported ($0.28) earnings per share (EPS) for the quarter. The company had revenue of $16.53 million during the quarter, compared to analysts’ expectations of $15.45 million. Yogaworks had a negative return on equity of 160.56% and a negative net margin of 38.23%.
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