WW International Profile
WW International, Inc. operates as a technology company at the forefront of weight health, grounded in nutritional and behavior change science. The company is powered by its weight loss and weight management programs, its award-winning app and its commitment to tailoring solutions for its members to improve their weight health, including providing medical weight management treatment via access to clinician-prescribed weight management medications and related support through the WeightWatchers Clinic affiliated practices. The company’s portfolio of solutions empowers people to adopt healthy habits to help achieve lasting weight health. With six decades of weight management experience, expertise and know-how, the company is one of the most recognized and trusted brand names among weight-conscious consumers. The company educates its members and provide them with guidance, digital tools, and inspiring communities – via its exclusive social network, Connect, and its workshops -- to enable them on their personal weight health journeys. The company also offers its science-backed behavior change GLP-1 Program. The company’s business has gone through a significant shift to a digital subscription model over the past several years and its primary sources of revenue are subscriptions for its digital, workshop, and clinical offerings.
The company’s Digital business refers to providing subscriptions to its digital product offerings. The company’s Workshops + Digital business refers to providing unlimited access to its workshops combined with its digital subscription product offerings. The company’s Clinical business refers to providing subscriptions to its clinical product offerings provided by WeightWatchers Clinic.
The company’s brands enjoy high awareness and credibility among all types of consumers. The company’s global presence and brand awareness uniquely position it to impact the weight health market. The company has built its business by helping millions of people around the world lose weight and build healthy habits through a sensible, sustainable and livable approach to weight loss and weight management. As of the end of fiscal 2023, the company had a total of approximately 3.8 million subscribers, of which approximately 3.1 million were Digital subscribers, approximately 0.7 million were Workshops + Digital subscribers, and approximately 67 thousand were Clinical subscribers. The company’s strong brands, together with the effectiveness of its programs, loyal customer base, digital innovations, community, and ongoing evolution alongside scientific and medical advancements, enable it to attract new and returning customers.
Segments
The company operates through two segments, North America and International.
North America refers to the company’s North American Company-owned operations and franchise revenues.
International refers to the company’s Continental Europe Company-owned operations, United Kingdom Company-owned operations, and Australia, New Zealand and emerging markets operations. These reportable segments continued to provide similar services and products.
Offerings
Programs and App
The company’s weight loss and weight management programs are rooted in nutritional and behavior change science. They consists of a range of science-based nutritional, activity, behavioral and lifestyle tools and approaches that can be tailored for individual weight goals and, if needed, support the unique needs of people taking GLP-1 medications or living with diabetes. The company’s Points Program continues to be grounded in its scientific Points system, which uses a proprietary nutritional algorithm to assign each food a value based on its calorie, saturated fat, unsaturated fat, added sugar, protein and fiber content. After a proprietary, personal assessment takes into account a member’s metabolic rate, members receive a tailored daily and weekly Points Budget to guide them towards healthy foods and appropriate portion sizes, forming the foundation of a healthy eating pattern. Members can also take advantage of over 200 ZeroPoint foods (nutritious foods which do not need to be weighed, measured, or tracked). The company’s Diabetes Program also takes into account the dietary needs of those living with diabetes by tracking blood sugar levels and tailoring their plans towards those foods that are less likely to impact such levels. The company’s new GLP-1 Program, which launched in the U.S., U.K. and Germany in December 2023, is its first-ever nutrition and activity program to complement a weight loss journey for those who are taking GLP-1 medications, whether provided through WeightWatchers Clinic or prescribed by their medical provider. This program supports these members by helping them to prioritize nutritious foods while appetite is significantly reduced by the medication and to maintain muscle mass while losing weight on the medication by focusing on protein dense food and promoting activity.
The company’s app supplements its programs by providing tools to help its members on their weight health journey. These include trackers for food, water, activity and weight (and, for members on the company’s diabetes-tailored plan, a tracker for blood sugar), as well as progress against personal weight health goals and content regarding behavioral techniques for building healthy habits. WW’s Connect platform, a members-only social network accessed through the company’s app, fosters meaningful relationships by helping people find communities based on shared interests, including food preferences, identity cohorts, wellness journey, activity, mindset, hobbies, locations, events and workshops.
WeightWatchers Clinic
WeightWatchers Clinic is the company’s new clinical offering in the United States which provides members who medically qualify access to clinicians who can prescribe weight management medications when clinically appropriate. This can include a prescription for the latest U.S. Food and Drug Administration (FDA)-approved GLP-1 medications for chronic weight management. WeightWatchers Clinic is the complete product integration of the company’s recently acquired Sequence subscription telehealth platform offering and any of its behavior change programs, including its new GLP-1 Program, which was scientifically designed to help support the unique behavioral and nutritional needs of individuals taking GLP-1 medications.
Licensing and Consumer Product Sales
The company continues to license its trademarks and other intellectual property in certain categories of food, beverages and other weight health-relevant consumer products and services. Additionally, the company co-brands with or endorse carefully selected branded consumer products and services. By partnering with carefully selected companies in categories relevant and helpful to weight- and health-conscious consumers, it has a high margin licensing business that gives it access to these consumers and also increases the awareness of its brands. In connection with the company’s acquisition from The Kraft Heinz Company (successor to H.J. Heinz Company), or Heinz, in 1999, Heinz received a perpetual royalty-free license to continue using its brand in certain food categories.
The company’s WW-branded products included bars, snacks, cookbooks and kitchen tools. The company primarily sold consumer products online through its e-commerce platforms, at its studios, and through its trusted partners. In 2023, sales of consumer products represented approximately 6.2% of the company’s total revenues.
Subscription Businesses
The payment structure for the company’s weight health and weight management programs and WeightWatchers Clinic is through subscription plans and in some cases, includes a one-time initiation fee. Pursuant to these plans, a member typically selects the program which best meets them on their personal weight health journey, commits to a minimum term and is then automatically charged on a monthly basis until the member elects to cancel. With any subscription, members are granted access to one of the company’s programs and its app with its functionality and tools. Members may then elect to supplement their membership with access to its group workshops. WeightWatchers Clinic members receive the benefits of the company’s behavior change programs and virtual workshops along with its app as part of their subscription. Within the three channels of membership subscription described below, members can find services and tools that best meet their preferences and needs.
Digital Business
In its Digital business, the company offers a digital subscription product based on the WW approach to weight loss and weight management. The company’s app provides interactive and personalized resources that allow subscribers to follow one of its three weight health and weight management programs. These resources also help subscribers adopt a healthier and more active lifestyle, a helpful mindset, and healthy habits, with a view toward long-term behavior modification — a key aspect of the WW approach toward achieving lasting weight health. The company’s app provides subscribers with content, functionality, and nutrition and wellness resources. The company’s personalized and interactive Digital subscription product gives subscribers an engaging experience. The company’s Connect online community, which can be accessed via its app, gives its subscribers a way to stay virtually connected and support and inspire each other. The company continually innovates its Digital offerings to maximize the design, usability, features and capabilities of its app to support its weight loss and weight management programs and community. As of the end of fiscal 2023, the company had approximately 3.1 million Digital subscribers.
Workshops + Digital Business
In its Workshops + Digital business, the company offers a subscription for unlimited access to its workshops in addition to its digital subscription product. As part of this offering, the company presents its program in workshops of 30 to 45 minutes in duration, conveniently scheduled throughout the day, offered virtually and, where available, in person. The company’s interactive communities remain the cornerstone of its workshops. Coaches facilitate interactive workshops that encourage learning and inspire members to make positive changes towards their individual goals. Members provide each other inspiration and support by sharing their experiences with, and by providing encouragement and empathy to, other people on weight health journeys. As of the end of fiscal 2023, the company had approximately 0.7 million Workshops + Digital subscribers.
The company has franchisees in a limited number of territories. In fiscal 2023, revenues from the company’s franchisees were immaterial. Pursuant to long-standing agreements, the company and its franchisees typically pay each other royalties and other fees.
Clinical Business
In its Clinical business, which the company launched in 2023 following the acquisition of Sequence, it offers a subscription for medically-qualified members to access a clinician who can prescribe weight management medications when clinically appropriate, as well as access to any of its behavior change programs, including its GLP-1 Program, via its digital subscription product. As part of this offering, each Clinical member has a care team to assist them in their weight health journey. As of the end of fiscal 2023, the company had approximately 67 thousand Clinical subscribers.
WeightWatchers for Business Offering
Via the company’s WeightWatchers for Business offering, it is leveraging organizational capability to serve employers, payers and health plans with the offerings of its Digital, Workshops + Digital and Clinical businesses.
Clinical Efficacy and Reputation in the Marketplace
Throughout the years the company’s science-backed programs have evolved alongside nutritional and behavior change science, resulting in WW being one of the most clinically-studied commercial weight management programs. For example, in 2022, a randomized controlled trial conducted by research teams at the University of North Carolina - Chapel Hill, University of British Columbia, and University of Leeds and funded by the company was published in JAMA Network Open and found that study participants assigned to WW for 12 months had over two times more weight loss compared to participants who were assigned to a do-it-yourself weight loss approach. In addition, those assigned to WW were more likely to achieve clinically significant weight loss of five percent at three and twelve months.
In 2021, a six-month clinical trial conducted by the University of Connecticut and funded by the company found that participants on WW experienced clinically significant benefits, including weight loss. Study participants reported a 40% increase in their healthy habits as well as a 13% decrease in hunger.
WW also has demonstrated efficacy among individuals with diabetes. In 2023, results from a multisite, single arm trial of the WW Diabetes Program in people with type II diabetes conducted at Pennington Biomedical Research Center, University of Florida and Virginia Commonwealth University and funded by the company showed statistically significant improvements in weight loss, blood sugar, and diabetes distress at six months. The efficacy and the value of the company’s offerings are also well-acknowledged in the marketplace.
Marketing and Promotion
The company’s communications with consumers and other promotional efforts enhance its brand image and awareness, and motivate both former and potential new customers to join WW. The company utilizes a data-driven approach to its media placements, promotional offers, and website and app store presence to enhance marketing efficiency, drive conversion, and maximize subscription value. The company’s advertising campaigns are supported across multiple platforms (e.g., television, YouTube, social media, programmatic, audio, search, affiliate, branded content, electronic customer relationship marketing (eCRM), direct mail, and public relations). The company develops and maintains a high level of engagement with current and potential customers on various social media platforms, including Facebook, Instagram and TikTok. Also, at times, the company utilizes brand ambassadors, spokespersons and social media influencers, including celebrities, as part of its advertising and marketing.
In addition to the advertising channels, the company takes advantage of other channels for which it is uniquely positioned given its long history and network of WW coaches and members.
In October 2015, the company entered into a Strategic Collaboration Agreement with Oprah Winfrey, pursuant to which, among other things, Ms. Winfrey and the company collaborate with each other towards the mutual objective of advancing and promoting the WW programs and the Company.
Seasonality
The company’s business is seasonal due to the importance of the winter season to its overall member recruitment environment. Historically, the company experiences its highest level of recruitment during the first quarter of the year, which is supported with the highest concentration of advertising spending. Therefore, the company’s number of End of Period Subscribers in the first quarter of the year has been typically higher than the number in other quarters of the year, historically reflecting a decline over the course of the year (year ended December 30, 2023).
Trademarks
The company’s trademarks are Connect, Digital 360, Points, Weight Watchers, ZeroPoint, Weekend Health and the WW logo.
Regulation
A number of laws and regulations govern its advertising and marketing, services, products, operations and PCs and Affiliated Professionals and relations with consumers, licensees, franchisees, strategic and other contractual partners, coaches, guides, employees and government authorities in the countries in which the company operates. Certain federal, state and foreign agencies, such as the U.S. Federal Trade Commission (the FTC) and the FDA regulate and enforce such laws and regulations relating to advertising and marketing, promotions, packaging, labeling, privacy, consumer pricing and billing arrangements and other consumer protection matters. The company is subject to many distinct employment, labor, commercial, benefits and tax laws and regulations in each country in which it operates, including regulations affecting its employment and wage and hour practices and its relations with its, guides and employees. Laws and regulations directly applicable to data protection and communications, operations or commerce over the Internet, such as those governing consumer protection, intellectual property, privacy and taxation, continue to evolve. The company’s operations are subject to these laws and regulations and it continues to monitor their development and its compliance. In addition, the company, its PCs, and Affiliated Professionals are subject to other laws and regulations in the United States and internationally, as applicable.
History
The company was founded in 1961. It was incorporated as a Virginia corporation in 1974. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in 2019.
