--- title: "Inside the Earnings Call: Planet Fitness Continues To Add Members, Nears 'Full Recovery' From Pandemic" url: https://burnaze.com/article/b1a3dfdb-a182-40b6-872a-e90bb0085b87 source: "Athletech News" original_url: https://athletechnews.com/planet-fitness-continues-to-add-members-nears-full-recovery-from-pandemic/ author: "Courtney Rehfeldt" category: "Gym & HVLP" industry: "Fitness" segment: "Gym & HVLP" topics: ["Finance & M&A"] published: 2023-05-04T23:58:28.000Z modified: 2026-10-31T18:08:24.310Z image: https://athletechnews.com/wp-content/uploads/2023/05/Planet-Fitness.webp --- # Inside the Earnings Call: Planet Fitness Continues To Add Members, Nears 'Full Recovery' From Pandemic **TL;DR:** Planet Fitness reported a 19.0% revenue growth to $222.23 million in Q1, with a net income increase to $22.7 million, and a membership growth of 1.1 million to 18.1 million members. The company is eyeing international growth, particularly in Asia, and has announced the return of its High School Summer Pass program. *By Courtney Rehfeldt, originally published in Athletech News on 2023-05-04. [Read the original](https://athletechnews.com/planet-fitness-continues-to-add-members-nears-full-recovery-from-pandemic/).* ## Key facts - Planet Fitness has 18.1 million members - Membership grew by 1.1 million in Q1 - 40% of all age generations surpassed pre-pandemic levels ## Story Shares of Planet Fitness took a 16% dive after first-quarter earnings and revenue missed Wall Street’s expectations, but the fitness operator saw continued membership growth and other positive signs. Planet Fitness reported its net income increased to $22.7 million from $16.5 million, and revenue grew 19.0% to $222.23 million, below an expected $238.3 million. Last month, Planet Fitness earned an average rating of “moderate buy” by fourteen brokerages after the fitness operator announced that it can double its membership numbers. Despite its stock taking a stumble, Planet Fitness is eyeing international growth and has announced the return of its successful High School Summer Pass program. ## Membership growth trends Planet Fitness saw its membership grow in Q1, with a reported membership of over 18.1 million and a net increase of over 1.1 million members. “This Q1 was the first time in four years that an all-important first quarter of membership growth was not interrupted by COVID,” said Chris Rondeau, Planet Fitness CEO, on the recent earnings call. He added that member growth continues to be the primary driver of the 9.9% systemwide same-store sales growth in the quarter. As costs are rising daily for consumers, Rondeau sees the value in the Planet Fitness experience, which he points out is high-quality and affordable. He reported that all age generations surpassed pre-pandemic population levels during the quarter, with 40% of new joins as first-time gym members. Rejoins were also positive at 30% compared to 20% in 2019, and the cancel rate indexed below last year’s rate in Q1. “This marked the seventh straight quarter of year-over-year cancel rate improvement,” Rondeau said. Members’ commitment to fitness is also higher than in pre-pandemic times, with increased overall visits per member. “We continue to see consistent momentum toward full recovery the longer our stores have been opened since the temporary COVID closures,” Rondeau said. “At the end of Q1, more than 50% of our U.S. stores that opened before 2019 are back to or above pre-pandemic membership levels. Additionally, almost 60% are at or above their pre-COVID revenue per store.” ## Marketing and partnerships As for marketing, Planet Fitness invested heavily last year to go after the 80% of Americans who don’t belong to a gym. The fitness operator also reports success with major brands such as Shell, Verizon, Sam’s Club, Chewy.com and Puma on purchase discounts and will continue to partner with brands to offer more discounts for members. ## Targeting younger generations “We want to be the fitness brand people think of first when they are ready to start their wellness journey, regardless of their age,” Rondeau said, adding that generational trends also fuel confidence about the future of the fitness operator. Gen Z and Millennial fitness consumers continue to lead memberships, with over 9% of each group now a member of Planet Fitness. “We will continue to have Gen Z’s age into our prospects member pool with Gen Alphas only a few years behind,” Rondeau said. “To further strengthen our brand’s appeal with Gen Zs, earlier this week, we announced the return of our high school summer pass program.” The program has proved successful in the past. Planet Fitness assures it will do the right thing by consumers who were affected by the news of Amazon shuttering its Halo division. The fitness operator had teamed up with Amazon to offer free fitness trackers as an incentive to customers who signed up for a Planet Fitness Black Card. Rondeau said Amazon’s decision to close its Halo division was “unfortunate,” but he noted that the March sale didn’t perform as well as November. He added that Planet Fitness would waive the commitment for those members so that come July, if they’re not content, they won’t be tethered to a 12-month contract. “It’s the right thing to do for the customer, and that’s the direction we’re taking there,” Rondeau said. However, Planet Fitness isn’t looking to replace the Halo with another product at the moment. ## International expansion plans While Planet Fitness has a presence in Canada, Australia and Mexico and announced an agreement to expand into New Zealand, the fitness operator is building a designated team to concentrate on growth outside the U.S. The company is considering Asia in particular. ## Entities - Fitness (sector) - Athletech News (publication) - international expansion (topic) - Courtney Rehfeldt (person) - canada (location) - Amazon (company) - revenue growth (topic) - Planet Fitness (company) - Australia (location) - Mexico (location) - Verizon (company) - New Zealand (location) --- Originally reported by Courtney Rehfeldt, Athletech News (https://athletechnews.com/planet-fitness-continues-to-add-members-nears-full-recovery-from-pandemic/). Summarized by Burnaze (https://burnaze.com/article/b1a3dfdb-a182-40b6-872a-e90bb0085b87).