![]() Requiring users to pay for a subscription will likely cause some churn however, even if 100 million users (50% user churn) pay a $5 annual subscription fee or drive revenues totally $5 per user, annual recurring revenues would total $500 million. The platform includes a blog that is updated daily with topics covering everything from healthy recipes to personal hygiene.Īlthough plans for the acquisition were not disclosed by FP, the playbook presumably includes: reducing operating expenses that have likely increased as a percentage of revenues under the broader umbrella of the previous public-company ownership upgrading the existing software, which users say has not been updated in at least 5-years and transitioning the “free-mium” service to a purely subscription-based recurring revenue model. ![]() Users can choose from a of variety apps (i.e., step trackers, calorie counters), leverage third-party plugins (i.e., Garmin, Fitbit), and connect with others through the MyFitnessPal Community to support individualized fitness plans. Headquartered in San Francisco, California, MyFitnessPal is a health tracking app that boasts the largest nutrition database in the world, with more than 5 million foods, and it currently supports more than 200 million registered users navigate their health and wellness journeys. After failing to integrate the digital platform into the broader business and without a coherent strategy for the online application, Under Armour is choosing to divest of the entity at a $130 million loss or a 28% discount to its original purchase price the loss is particularly staggering given the premiums being paid for most software companies at the moment, in one of the hottest M&A markets since 2017. ![]() Only 5-years ago, Under Armour, a global leader in sports apparel and equipment, purchased the diet and exercise tracking app for $475 million. Technology-focused private equity firm Francisco Partners (“FP”) announced their acquisition of MyFitnessPal from Under Armour (NYSE: UA), in a transaction valued at $345 million.
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